Infibeam Avenues Ltd (INFIBEAM) Q3 FY23 Earnings Concall Transcript

Infibeam Avenues Ltd (NSE: INFIBEAM) Q3 FY23 Earnings Concall dated Feb. 06, 2023

Corporate Participants:

Vishal Mehta — Managing Director

Vishwas Patel — Executive Director

Sunil Bhagat — Chief Financial Officer

Analysts:

Rahul Vakharia — Lucky Investment Managers — Analyst

Akshay Doshi — — Analyst

Prakshal Jain — Lucky Investment Managers — Analyst

Dipesh Sancheti — Manya Finance — Analyst

Ayushi Shah — Individual Investor — Analyst

Rahul Jain — Dolat Capital — Analyst

Anil Nahada — Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Infibeam Avenues Limited Q3 FY ’23 three Earnings Conference Call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors. Thank you and over to you sir. Yeah, thank you, Lisan. Good afternoon, everyone, and welcome to Infibeam Avenues Limited Earnings Call to discuss the Q3 and Nine Months FY ’23 results. We have on the call with us today Mr. Vishal Mehta, Managing Director; Mr. Vishwas Patel, Executive Director; Mr. Sunil Bhagat, Chief Financial Officer; And Mr. Purvesh Parekh, Head of Investor Relations. Also joining us on the call today is Mr. V. Ravi who is advising Infibeam on corporate and financial strategy as an independent consultant. We must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. I now request our MD, Mr. Vishal Mehta to take us through the company’s business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you sir.

Vishal Mehta — Managing Director

Good evening and welcome everyone. On behalf of the entire Infibeam family, I wish you all a very happy and prosperous 2023. To start with, I’m very confident that 2023 will be a great year for our country. And more importantly, this decade will see India reaching new heights. Whereas the GDP is expected to cross by 5 trillion dollars putting us at number three spot globally. One of the studies that have been done across so many nations, on use of electronic payments — what has been coming out of this study is that nearly one trillion dollars have been added to GDP of various countries and it has been able to raise consumption. So digital payments is expected to be a very important role in terms of our country achieving certain GDP breakup expectations. Digital payments in India grew more than 70% in FY ’22 and it is estimated to grow by 45% to 50% in FY ’23 to approximately INR54 trillion rupees or $635 billion.

Between 2021 and 2026, industry is expected to grow in the range of 30% to 40% annually. The government and the regulator are also very supportive given the vision to make India, digital and also turn India into a cashless economy. To capture the massive growth we have charted very clear strategies and we are working on certain initiatives like our omnichannel payment solution that will deploy across more than one billion devices by end of FY ’24. The next is industry-specific vertical solutions for deep industry penetrations, like what we offer to the hospitality industry, the hotel industry to maintain the [Phonetic] avenues. Bill payments for utility and recurring payments through Bharat Bill Pay. We have certifications for processing airline transactions covering more than 20 plus airlines, solutions for auto insurance, payment infrastructure, as well as B2B payments and payments for banks. We are constantly solving industry problems through payment solutions that really matter to the consumer and merchants.

And now, we have achieved another milestone of being the industry-first to process digital Rupee transaction for online retail payments. We are ready to go-live with any bank that offers or that wants to offer digital Rupee. We are in discussion with several banks and we are also getting inbound requests from many banks to partner with us. And government and RBI, looks to curtail cash of INR32 lakh crores, which is almost $400 billion dollars. Also, the addressable market — we believe they are promoting the use of digital rupee to avoid certain cash costs like printing, avoiding currency manipulation ability to track the currency, etc.

RBI has requested banks to quickly make the technology infrastructure and onboard new merchants to proliferate India’s own digital currency across the country. We are currently among the only few to be able to new merchants. This will enable us to build a very strong pipeline for future to upsell and cross-sell, while also giving us a lead position in processing digital rupee transactions. We believe just like UPI commuted a revolution in digital payments, in the same, the Rupee will create the next evolution for India. As it is in true sense a real-time money transfer with instant settlement to merchants. One of the reasons why we believe so is because it is exactly the same as cash, but in a digital format. Even UPI today is not instantly settled in. It follows the same process, like any other payment options of T-plus [Phonetic] in a number of days settlement. The use-case for digital Rupee can be many-many and this will create new opportunities in the digital payment space.

With that said, last quarter was very strong for us. We onboarded more than 0.5 million merchants including three alone [Phonetic] in the payment gateway business alone, which is we have a history of more than 20 plus years and we’ve overall added a record 1.1 million merchants in a single quarter across all our offerings, reaching 8.4 million merchants, an increase of 72% Year-over-Year. And our daily merchant addition averaged 11,500 for last — 11,700 for last quarter, which is hovering around 7,000 to 8,000 in the last few quarters. Number of merchants in the payment gateway business in Q3 grew by 385% Year-over-Year. As the digital payment industry looks right for growth in India, with strong entry barriers and strict compliance, we plan to take the most advantage of being able to onboard new merchants.

As mentioned, in our call last quarter about international launches in the second-half of FY ’23 payments in Saudi Arabia is now live. We are literally one of the top two providers for payment, payment gateway in UAE and Saudi Arabia being live we’ve onboarded covenant merchants and will subsequently provide updates to other geographies in coming quarters. If you look at going into FY ’24, we will expand these geographies and talk about other launches as we build more tie-ups and onboard more partners. January continues to remain strong. January, achieved a processing volume of one lakh crore of order value in November and just eight months of FY ’23 versus achieving the same number in 12 months of FY ’22. As per January announcements, January is expected in targeting to touch order values of INR200,000 crores by FY ’23 which is twice that of FY ’22.

By end of January 2023 order volume and value on January has already crossed INR150,000 lakh crores by doing INR50,000 crores in just two months of December and January. Apart from January, we continued to explore more opportunities in our software platforms business to widen our offerings and expand partnerships. We will keep you updated on the developments.

To sum-up, I’m extremely confident and happy with the progress that we’ve made in the business, including improvements in the net take rates in our payments business, which we intend to take to double-digits by FY ’25. We see very strong tailwinds for digital payments industry and believe that the game is still not over. There is so much innovations and opportunities to constantly raise and we feel that with prudent policies, compliances, safeguarding the consumers and merchants and all these profitable business models, we’ll be able to pay-off in the long-term. I will now hand over the call to Vishwas will give you an update for our payments business, Vishwas, over to you.

Vishwas Patel — Executive Director

Thank you, Vishal, and good afternoon, everyone. Q3 is a strong quarter for Infibeam Avenues for payments business, being [Indecipherable] travel-related quarter. We experienced a strong merchant pipeline during the quarter. In Q3, we focus on quality rather than quantity to build a long-term sustainable business whereby we were able to increase our take rates and hence profitability in the business. Change in payment makes towards non-credit payment options, led to a lower gross take rate and hence moderated gross revenue, but the net take rates increased as non-credit payment options, net banking, debit card contribution increase, which are more profitable for the company, leading to better profitability.

Merchants seems to have chosen more debit offset in this quarter to save on the MDR costs. This resulted in higher earning for us as we provide 60 plus net banking options to direct integration with the banks core banking solutions, highest globally and over 100 plus debit card options. Contribution from 0 MDR payment options in the quarter have gone up from nearly 6% to 7% to roughly 10%. The subsidy incentives that are announced by the government on 0 MDR, on non-chargeable payment options like UPI and RuPay debit card in the current fiscal. The government has increased it by two times INR2 for [Indecipherable] from the previous 1,400 outgrowths in the previous. We hope to receive a said in Q4 or Q1 of next year or next financial year.

The industry demand, however, remains at INR8,000 crores from the government. To date, Pentax and PG’s, you have not received anything from the government, what the government has said with the banks, inclusive of previous years.

Now let me give you quick update on our investments in Go Payments that is instant global capex [Phonetic]. Infibeam Avenues has invested INR16 crores in Go Payments increasing its stakes to 54.80% from the current 52.3%. Go Payments has an offline business model targeting the unbanked and under-bank. The business has significantly impacted during the two years of COVID in it’s four years of operational history. However, the company has managed to quickly turnaround and scale the business, last calendar year and turned EBITDA-positive in December 2022. We are extremely proud of the management, we have turned into profitability in such a short spend during the challenging environment, both in terms of the pandemic and the competition by focusing on our core philosophy to generate profitable revenue and offer quality services. Our investment in Go will help go to scale further and achieve profitability while scaling the business. This will help Infibeam achieve higher return on investment and benefit all the shareholders of Infibeam Avenues.

As far as the international operations are concerned, UAE is still going very strong. We have commercially started operations in Saudi Arabia, and we will scale this from next financial year. We are also in the process of roll-out [Phonetic] our CCAvenue all-in-one app that [Indecipherable] soon as it is a ready market for tab-based buildings. According to Visa study, contactless payments are among the highest in the GCC region as out of total digital payments 94% are contactless in Saudi Arabia, and 92% in UAE. Finally, a comprehensive set of payments and software payment solutions — platform solution supports all the digital payment acceptance requirements of the merchant be it in-store, online or omnichannel payments, along with the tools for the non-merchants to enable e-commerce.

With this, I now hand over the call to Sunil Bhagat, our Group Chief Financial Officer. Over to you Sunil.

Sunil Bhagat — Chief Financial Officer

Thank you, Vishwas. Good evening everyone. We are extremely pleased with our performance in Q3 as we work towards improving the quality of our earnings. We were severally impacted during COVID from lower business volumes, low-margin businesses like utility, education, insurance, etc with severe pricing competition. However, Infibeam focused on profitable revenue growth by ensuring quality customer onboarding, strengthening ties with ecosystem partners expanding high-margin bill payment businesses, growing the infrastructure services, strengthening international markets etc.

If you look at our standalone performance for five years from FY ’18 to FY ’23 from comprising Infibeam India payments and software payment businesses, including the GEM portal [Phonetic]. The growth in profit-after-tax is approximately 10x. The company will continue to focus on its core business philosophy of profitable revenue growth and strive to bring the same in the next 10x in this decade from various strategic initiatives and we are — we will undertake that. Q3 this seasonably strong quarter for Infibeam.

The payments business net take rate grew by 63% Year-over-Year to 8.9 bps. The Company is taking steps towards growing its net take rate across payments vertical and reach double-digit take rates in FY ’25. Improvement in net take rate led to higher net revenue-generating better operating and profitability margins during the quarter. On a like-to-like basis, consolidated PAT for the quarter was, INR27 crores, up 11% Year-over-Year and highest among the three quarters reported PAT. And like-to-like standalone PAT for Q3 was INR. 24 crores, up 28% Year-over-Year. Overall, we are on-track to process transactions worth INR7.5 lakh crore for FY ’25.

With this, I will now hand over the call to the operator for starting Q&A. Thank you.

Questions and Answers:

Sunil Bhagat — Chief Financial Officer

Thank you. Ladies and gentlemen we will now begin with the question-and-answer session. [Operator Instructions] Ladies and gentlemen we will wait for a moment while the question queue assembles. The first question is from the line of Rahul Vakharia from Lucky Investment Managers. Please go ahead.

Rahul Vakharia — Lucky Investment Managers — Analyst

Thank you for taking my question, sir, congratulations on a very good set of numbers. Sir, you have mentioned in the previous call also, and just a while back you mentioned that you intend to take your net take rate to double-digit by FY ’25. Now given that Gem [Phonetic] will be a big driver of PPV and that is unlikely to be anywhere close to double-digits, how do you kind of…

Operator

Sorry, Mr. Rahul, your audio is sounding very muffled. Can you please move closer to the mic.

Rahul Vakharia — Lucky Investment Managers — Analyst

Hello, Am I audible now.

Operator

Yes, much better. Sir, thank you.

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay. Given that, you know, Gem [Phonetic] will be one of the bigger driving factors in the TPV growth of the company and there the take rates are of the order of, let’s say, seven base, how do you kind of how does the math work-out, or where will the double-digit kind of number come from.

Sunil Bhagat — Chief Financial Officer

Sure, Rahul, they are three things that we’re focused on. Internationally, our decrease are 15 basis points compared to India. So if you look at our projections for the next — we expect that today a single-digit percentage of our revenues come from international. We expect that to go into double-digits. So based on what we believe we should get to 20% to 30% of our revenues in the next two years to come from international growth as well. And international take rates are far better today compared to our take rates in India. That’s one part.

The second thing is that we expect to actually introduce offline payments that is tough there. We want to add — so we believe that if we are at 8.1 merchants, we should get to 10 million merchants. And over there since the card is present, we expect that the take rate should be better in offline setup compared to the online setup where the card is not doesn’t. We have also filed certain patents around those areas and we expect that with certain kinds of if SDK that we open up where you literally don’t have to do anything, you just plug-in the SDK into the existing payment setup of yours and it starts processing payments. So our expectation is that going to a million, that is more than 10% of merchant base, you will see perhaps some improvements in that area as well.

And the third thing that Sunil just highlighted, which is we are focused on profitable sectors. So we have taken-up sectors where we believe the value is pretty strong. Today the overall growth in payments is expected to increase significantly. So a combination of those factors, we believe that we will be able to get to a better take rate.

Today we are at 8.9, we are not calling up saying that, we can do it next quarter. What we believe is that, let’s make sure that we have built out the first strong around pieces, how we can get to double-digit, which is what we’re focused on today.

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay, okay. Thank you.

Vishal Mehta — Managing Director

Just to add, the double-digit, that we are talking about is for the payment business. Jim [Phonetic] is a single customer where the take rates are already contracted. So we are not including Jim [Phonetic] as part of the double-digit. It’s only the payment business where we are talking about double digits.

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay, so then — then on, on let’s say on a weighted-average basis we might still be around the 8 or 9 bps number only, right.

Vishal Mehta — Managing Director

Perhaps that is depended upon what is the vintage of our TPV coming from payments and coming from the Gem [Phonetic].

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay, okay thanks for that clarification. That was important. And just a question on the Gem [Phonetic] portal relevant thing. When does the process start and by when will we know the end result?

Vishal Mehta — Managing Director

Basically, the RFP has been out and the current positioning is that by end of this month that they will be taking the bids. So very likely in the next few weeks, we will know. And so that you know, it is 18 months until you actually build-out the new framework. So, this contract will continue into 2024. Sorry, I didn’t get the last part, sorry 18 months bit, I didn’t get that. The new RFPs states that you need to build-out the framework in the next 18 months, before existing opportunities will move on to the new framework. So the existing contract, which we have will go on until 2024.

Rahul Vakharia — Lucky Investment Managers — Analyst

So does that mean that when you shift to a new framework, whatever work you have done in the last five years does that mean it’s a build-up on that or it’s a separate thing altogether, how does that work?

Vishal Mehta — Managing Director

Yes, it is a separate thing. So in other words, there may be some base that can potentially be common. I think a lot of systems, processes, integration, so on and so forth are in place. But there are certain requirements that government have, which is additional functionality, on-top of whatever we have provided so-far. Also, I think there is a — if you go to the RFP, you will see that there is a payment of INR135 odd crores towards buildup up of the new framework.

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay.

Vishal Mehta — Managing Director

Then there is a fixed and a variable that goes on every quarter.

Rahul Vakharia — Lucky Investment Managers — Analyst

Okay. And should we expect your consortium to bid as it was in the previous tenure?

Vishal Mehta — Managing Director

We still have three weeks left, so there may be a few changes, but yeah, we expect that definitely we are bidding.

Rahul Vakharia — Lucky Investment Managers — Analyst

Got it. And sir, just one final question if I may squeeze in. We don’t have a non-transaction revenue recorded in this quarter, has that been clubbed with the transaction-based revenue or just trying to get a understanding their?

Vishwas Patel — Executive Director

There is a platform revenue in Gem [Phonetic]revenue and the non-transaction part [Phonetic]. So the entire platform, revenue has part one part coming from Gem [Phonetic], which is a transaction revenue the other part is non-transaction.

Rahul Vakharia — Lucky Investment Managers — Analyst

So I think you have a net take rate of INR85 crores this quarter that we have declared. A part of that will also be non-transaction revenue, that’s how it is?

Sunil Bhagat — Chief Financial Officer

For INR85 crores, I didn’t get?

Rahul Vakharia — Lucky Investment Managers — Analyst

INR85 crores is the transaction-based revenue, right. The net take rate.

Sunil Bhagat — Chief Financial Officer

INR85 crores, can I take this offline with you, because I think you have…

Rahul Vakharia — Lucky Investment Managers — Analyst

Yeah, I’ll take this offline. Thank you so much for answering these questions. Thank you.

Operator

Thank you. The next question is from the line of Akshay Doshi from [Indecipherable]. Please go ahead.

Akshay Doshi — — Analyst

Yeah, hi sir, thanks for the opportunity and congratulation on the good set of numbers. Sir, I had around three questions. So first question is that you have guided for TPV of INR400,000 lakh crore for the year-end FY ’23. In nine months, we were able to achieve around INR2.75 lakh crore. So sir going ahead, how confident we are to achieve the balance INR1.25 lakh crores. And also, if possible you can share the January numbers of TPV.

Sunil Bhagat — Chief Financial Officer

Sure, so if you look at our numbers for the last quarter, on a consolidated basis we do about INR95,000 odd crores in transaction processing volume. So the question is that can you — are you able to gap the INR95,000 lakh crores to INR1.25 lakh crores [Phonetic]. Generally, we see Q4 being in certain verticals and Gem [Phonetic] being one of them, because a lot of buying — government buying happens in the last quarter. So we’re tracking it up. If you look at just the normal transactions of applying Q3 to Q4, we expect that even Q4, so far has been very strong for us. So while we don’t talk specifically about months, what we know is that today we are tracking to the number closer to INR400,000 crores. And then, as we made of course — like I said, the last three months for Gem typically are very strong months. So what you will see is that government spends a significant amount of capital towards, in the last three months of the year. So we expect that, yes, you will see numbers closer to INR400,000 crores. Today, we believe that we are tracking to that number.

Akshay Doshi — — Analyst

Okay, okay, sir. Understood. And sir, my second question was like, what is the update on Tap Pay, like how many merchants have we on-boarded? How is the progress is going on there and what is your target for the next financial year?

Sunil Bhagat — Chief Financial Officer

Yes, so I’ll start and Vishwas can add in. What we had communicated last time was that we would like to reach 100,000 odd merchants by year end this year end, which is March 23. And next year we’d like to get to a million merchants. Which is 10 lakh merchants by end of ’24. So we’ve laid out our strategy in terms of how to achieve it. We have — we believe that 100,000 we will be on track to achieve by end of this year, which is FY ’23. You will start seeing hopefully, next year offline QR codes and many others, which is CCAvenue QR codes in offline payments. Because once we reach a critical mass of one million merchants then that is where wherever you see certain QR codes which are more UPI related, you will start seeing CCAvenue Tap Pay QR codes as well for merchants. So I believe that this year will definitely reach 100,000 merchants, and next year we should be tracking for one million merchants.

Vishwas Patel — Executive Director

I think it’s a combination of both. CCAvenue Tap Pay as well as allowing our SDK. I don’t know whether you are aware but even if we give out our SDK, which is the software development kit for someone to integrate into their existing payments, it requires a set of approvals from card networks. Because one needs to actually ensure that security has been taken care of, which is the utmost importance. And we know anyone and everyone who actually uses an existing payment provider can actually allows people and consumers to tap and pay. So we are happy to announce that we have been approved by card networks for our SDK to be integrated into existing payments network, which means that the million looks very doable for us for next year.

Akshay Doshi — — Analyst

Okay, great sir. Understood. And sir my last question was on your gross revenue, so if I look at the quarterly numbers from Q2 to Q3 it has been reduced from INR477 crores to INR415 crores. So any reasons around that?

Vishal Mehta — Managing Director

[Speech Overlap] Yeah Vishwas, go ahead.

Vishwas Patel — Executive Director

Okay, so essentially we have like 100 plus Indian [Technical Issues] various credit cards, debit cards, net banking and others. So credit cards, typically the usage — since the MDR is high, they say merchants are more-and-more pushing towards net banking, and Master, Visa debit cards and other options, right. Our earnings on credit card is less than what we earn on net banking and other options. So merchants have started pushing — even if you see on many checkout pages of websites, they are pushing up the debit options more so that their cost goes down, — MDR cost is down, right. For us it’s better a bit more towards net banking and debit cards and other things. So hence you will see that though the gross revenue has come down marginally to INR415 crores, but has take rate and profitability has increased considerably this quarter. So even the take rate now has gone from 7.2 to 8.9 with the [Technical Issues], just correct me.

Sunil Bhagat — Chief Financial Officer

From 7.5 to 8.9.

Vishwas Patel — Executive Director

Yeah, so from 7.5 to 8.9, so our take rate and profitability has improved.

Akshay Doshi — — Analyst

Okay, okay. Thank you, sir. That was very helpful and all the best.

Vishwas Patel — Executive Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Vir Taj [Phonetic] from the [Indecipherable]. Please go ahead.

Unidentified Participant — — Analyst

Hi, thanks for the opportunity. So first question is in terms of the TPV guidance. So sir, what percentage of TPV do you expect coming from GEM portal in the guidance of INR7 to INR7.5 lakh crore for FY ’25?

Vishal Mehta — Managing Director

So we believe that today, if you look into it approximately close to INR6 to INR7 lakh crores comes from payments. And that is expected to continuously increase, in fact, we expect that payments will significantly be larger in the coming few quarters. But if you look at the perspective forecast that we have developed, we think if it is INR2 lakh crores for this year, we will be conservative for the next two years and we expect that maybe that too will be INR3.5 crores. So payments will get to about INR400,000 lakh crores.

Unidentified Participant — — Analyst

Okay, okay. And at the time of renewal of this contract, are we expecting any reduction in the take rate from 7 bps to, let’s say 5 or 6 bps, considering the strong increase in volume of GEM?

Vishal Mehta — Managing Director

Yeah, absolutely. What — if you look at how the — [Indecipherable] structure that is fixed and variable, the same around. If you remember, last time when we bid for the contract, it was all variable. So in other words, there is a fixed component that comes every quarter post-deployment. So there is an amount that comes pre-deployment which is the onetime amount which is about close to INR135 odd crores and then there is post deployment amount that comes every quarter and then there is a variable component on-top of it.

So if you look at the blending of that and depending upon the number of transactions that kind of transactions, one can make assumptions and come up with certain take rates. But yeah, we would expect that based on the volumes as the volumes increase, we have taken a very conservative approach. I’m sure that there could be aggressive approaches as well, but we plan for a conservative set-up and we think that there may be marginal impact to the take rates that we get from Gem today versus what we will achieve given that the volumes will be higher.

But it’s slightly calculus formula, because it is based on number of transactions, the value of transactions, and a few other parameters.

Unidentified Participant — — Analyst

Okay, okay, okay and the third question. Sir, can you please explain our revenue model in processing, the digital rupee transaction?

Vishwas Patel — Executive Director

So Vishwas here. So as of now, there is more revenue model in the digital Rupee. It is just coming out. So just like the test, pilot period is going on and there will typically be option is available across and the volume comes in, so that kind of [Indecipherable] it’s up to the Reserve Bank of India to put mechanisms where there is some money to be made by the services providers who are going to activate this across the country.

So, right now, is just the best pilot. So it’s like it’s INR32,000 lakh crores [Phonetic] of cash in the market. So this is — this is the UPI movement to disrupt cash. Right, so in a digital format it comes like in a notes currency it transfers. And in real-time a check-out mechanism in online, where we have a [Technical Issues], how does the state pay cash to the initial Rupee. So all those mechanisms it is all quite innovative and let me tell you it is the first in the world right now. So going on to the MDR and this mechanism on revenue, it’s too a little early, maybe the next one or two quarters, there’ll be more clarity on all the pricing, mechanism and given impact processes of charge-back, is another thing that will come in place.

Unidentified Participant — — Analyst

Okay, thanks, sir. Thanks and thanks for the answering questions. All the best.

Operator

Thank you. [Operator Instructions] The next question is from the line of Prakshal Jain from Lucky Investment Managers. Please go ahead.

Prakshal Jain — Lucky Investment Managers — Analyst

So thank you for the opportunity. I wanted to ask that this change in transaction mix from credit base payment options to non-credit base based payment options, which has led to lower gross revenues for us this quarter. So was there some special trigger this quarter because we are seeing, I mean, we have recorded lower gross revenues Q-on-Q for the first time this quarter. So was there some special trigger this quarter?

Sunil Bhagat — Chief Financial Officer

So thanks, yes, there was one figure, which is lot of competitors, they started giving portfolio rates, two clients, portfolio rates, meaning — meaning a single rate across different payment options. And so whether your mix is X or Y that you get a single rate and there are several clients where the shot [Phonetic] can add to it more, but the point was that — that there are certain take rates for credit is different than debit and other payment options. And so what we have ended-up happening is that wherever the payment options of credit were lower for a merchant base to try and sense but it makes sense for them to start sending transactions there. Whereas — and then we were perfectly fine with that approach, because obviously the rest of the volume came to us. Because we were better than those. So there is a slight impact there. The second one as Vishwas said the merchants started pushing non-credit options because in credit, they would lose a lot more compared to other payment options so they are non-credit payment options. So for the merchant also, it made sense to start pushing the non-credit options because it’s more lucrative for them compared to credit. And so combination of those two triggered the gross revenue of credit.

Prakshal Jain — Lucky Investment Managers — Analyst

Okay, so just for clarification sir, on the first factor that you mentioned, you said that the volume came to us because we offered better rates to the clients and as compared to our competitors. Is that right?

Sunil Bhagat — Chief Financial Officer

I know when you — when you offer a single, single window across payment options, so for the sake of argument based on the mix, you would want to if somebody approaches, let’s say, three years, the single take rate merchants are smart enough, they will start sending the options where they are getting benefits and of course for non-credit these options even if we keep and maintain our same rates obviously they will prefer us.

Prakshal Jain — Lucky Investment Managers — Analyst

Okay.

Sunil Bhagat — Chief Financial Officer

So I think, it was not about getting better rates, it is just a better option for the merchants to send volumes to us. That is one. And second is that merchants also have started pushing a lot of non-traded options to us, given that it is more lucrative for them to process towards for customers compared to credit-based options.

Vishwas Patel — Executive Director

This is Vishwas, Prakash. Yeah, just to simplify it. So typically, some of the competitors are offering a merchant rate of say 1.8 across all options the credit card, debit card, net banking and all those things, right. So 1.8% across merchants. Now, we typically use to give credits at 1.92% and net banking at 1.25% at the rates that we have, right. Our earnings on-net banking are anyway higher than what we used to earn on credit card. So what merchants started that to do, some of the bigger ones that we had, they want credit card to add 1.85% to them, but all the net banking, which is to go earlier with the same, since we are at 1.25% and the take rate carries at 1.8% for them, they started pushing all their debit options of net banking and others on [Indecipherable]. Hence, you see a spike in the volumes, you see a spike in the take rate, and this thing, but yes, gross revenue will come down a little bit. Because of the payment mix change.

Prakshal Jain — Lucky Investment Managers — Analyst

Okay, sir. Okay, all right, thank you for the elaborate clarification, thank you.

Operator

Thank you. The next question is from the line of Dipesh Sancheti from Manya Finance. Please go-ahead.

Dipesh Sancheti — Manya Finance — Analyst

Hello. Sir, am I audible?

Vishal Mehta — Managing Director

Yes.

Dipesh Sancheti — Manya Finance — Analyst

Yes, how much [Technical Issues] percentage of credit and non-credit volumes are coming?

Sunil Bhagat — Chief Financial Officer

Credit is about 1/3 and 33% to 35% percent and non-credit will be [Technical Issues] debit card, net banking, etc.

Dipesh Sancheti — Manya Finance — Analyst

And going forward, do we see these volumes of non-credit going — I mean increasing?

Vishal Mehta — Managing Director

So primarily, if you look, look India is a diverse society like unlike the people in the West who live off on credit, right India, China, and other Asian regions are more debit societies, where if you have money, only then you spend. You will not go overboard on credit and other things, right. So that’s why the credit card offtake has been stagnant. If you see the overall credit card numbers also for every month it’s always segment between INR90,000 crores a month to INR100,000 crores a month. So last three-four months it’s been stagnant there, right. But the other side, the debit and others is growing massively. Net banking, debit cards, and other usage is growing massively. So that’s the trend that you can look overall even from moving from RBI for rough figures also, right. So that’s where it is there, but for us, it depends, if tomorrow credit comes, it makes a come back and as youngsters and adults, go more in for credit, maybe the credit transactions will also do. From our prospective we are offering all 200 plus options credit, debit, net banking, wallets, SI’s, EMI everything. So it depends on the customers, and merchants. We will track overall from a macro perspective, how the payment option changes, but yes, let’s see.

But it’s something which is on the macroeconomic front, and how the payment of consumers are choosing whether [Technical Issues] payment progresses, where we are just an enablers of this transactions.

Dipesh Sancheti — Manya Finance — Analyst

And right now, what is the market-share?

Vishal Mehta — Managing Director

In what?

Dipesh Sancheti — Manya Finance — Analyst

In this payment processing.

Sunil Bhagat — Chief Financial Officer

There are various ways to look at it, so credit cards for example, I already told you what is the kind of processing, we are doing.You can just compare that with the volumes that RBI gives out. You will rough idea. We don’t give out the entire mix, like how much is debit, how much is credit, how much is net banking, but our credit, like I said, is about 33%, 35% percent for the last quarter. The rest is debit, you can just take a look.

Vishal Mehta — Managing Director

[Speech Overlap] but we think that we are in — I mean, depending upon how you look at it, we only record what is processed — successfully processed transactions. And not necessarily all transactions, which have been attempted. And in that we believe that we will definitely be in the 15% of the margin to consumer to merchant side, we should be at least [Technical Issues] almost there.

Sunil Bhagat — Chief Financial Officer

Plus we only count, the e-commerce volume. We don’t count the payout. So I think some of the companies also count the payouts as their processing volume. So that makes it a bit difficult to compare [Technical Issues].

Dipesh Sancheti — Manya Finance — Analyst

Okay, and are we also planning to bill platforms just like we did for Jio Mart? Are we planning for PVR or Jio, which is part of Jio Mart or Tata Neu or make [Indecipherable] where these kind of places have — there is maximum credit card transactions, especially in the travel business?

Vishal Mehta — Managing Director

Yes, we are like, if you seen our [Indecipherable] more than I think 2,500 authors are already using that platform. And with the new challenges of tokenization of cards non-storage of the credit cards in the property management systems [Phonetic] and other. So a lot of innovation and new technology is being built in partnership with some of the biggest hotel chains in the country. That’s the hospitality platform. We also built a platform on the B2B web perspective. Today, Hindustan Unilever, Bisleri, a lot of guys are using this entire vendor management along with their credit payments and other things, where there is card issuance and [Technical Issues] acceptance so card issuance platform it’s something to our subsidiary Go Payments we are building. A lot of COD, debit or credits have gone out for their systems.

So lot of as you said, if you see the whole overall our company this thing — solutions its Payments and Platforms. So it’s like a horse and a cart. Both go together and pull each other. It gives us enhanced margin. This gives us stickiness with the merchant where new competitors cannot just give a one part of the solution and trying to take because of this tightly integrated together between our platforms and payments.

Dipesh Sancheti — Manya Finance — Analyst

Okay sir, thank you. Thank you so much.

Vishal Mehta — Managing Director

And for this, that could be in the hospitality solution that more than one million room nights [Phonetic] in a year, bookings for our hospitality partners.

Sunil Bhagat — Chief Financial Officer

1.4 this quarter.

Vishal Mehta — Managing Director

Oh wow, 1.4 million room nights, 14 lakh room nights is what we have booked for our business for our hospitality partners including some of the biggest names.

Dipesh Sancheti — Manya Finance — Analyst

That is in this quarter?

Vishal Mehta — Managing Director

No, for the full year.

Dipesh Sancheti — Manya Finance — Analyst

Full-year, okay. Yeah, thank you sir. All the very best.

Vishal Mehta — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Ayushi, an Individual Analyst. Please go ahead.

Ayushi Shah — Individual Investor — Analyst

Hi, sir, congratulations on great set of numbers. Sir, I wanted to understand the breakup of other income. And because we didn’t see that on a consolidated basis, like other income has reduced from INR32.76 crores to INR13.3 crores. So sir, what is the reason behind this decrease and what other sources of other income?

Vishal Mehta — Managing Director

Sure, so. Basically, last quarter we have talked about this. It was a one-time income last quarter. That was recorded, because of the mark-to-market on certain investments that the company has made. And that is primarily reason why you saw that it can grow last quarter. This quarter it is interest income that we accrue. As well as the — slight M2M gain that we recorded this quarter as well on our investment.

Ayushi Shah — Individual Investor — Analyst

Okay, okay, sir. And another side guidance of INR110 to INR125 crores for FY ’23 infused [Phonetic], that’s considered as other income or is it excluding the effects of other income?

Vishal Mehta — Managing Director

Basically, we had given the guidance with the objective that we will attempt to actually achieve the targets without the other income. We think that we see visibility on numbers within the 10% range. But again, like I said, Q1 is typically a very strong quarter for us. So we are tracking it and we think all across the board, the guidance that we’ve given for revenues are definitely on the higher-end for EBITDA will be in the higher-end of the range. And for PAT we will see how the performance is in Q4 and come back to you on this.

Ayushi Shah — Individual Investor — Analyst

All right and sir, the final question, how many POS like the cash pays have we installed so far? And sir, in the management commentary in the beginning, you said that are among the only few to process [Indecipherable] transacting. So who else are in the market and what kind of competition are you seeing there?

Vishal Mehta — Managing Director

Okay, let me get the first question. Can you repeat the first question?

Ayushi Shah — Individual Investor — Analyst

Sir, how many POS or like Tap Pay terminals or the LTE have been distributed? Sir have you — tied-up with any major merchants and what is the second update over there?

Vishal Mehta — Managing Director

Right now, Tap Pay is mostly focused on the smaller merchants. So we have in this quarter, we already announced around there are 50,000 to 100,000 installations of Tap we have done across the market and it’s growing fast. And as I said it’s revolutionary because it takes away the clunky point-of-sale terminal, which costs around 10,000 to 12,000. Here any kirana shop even in the deepest village of Manipur or Assam, Odisha can just go to the Playstore and download the app and start extracting [Speech Overlap] the card card, debit card payments on the customer basis scenario. So all those things perspective it is growing very fast and it just needs a little bit more push and training and other things that we are focusing on. And as we mentioned earlier, we aim to take it up to one million [Technical Issues] merchants shortly.

But even the bigger merchants a lot of things where we are working with hospitality, they were forward-looking can’t say, but lot of high-end, good technology is being coded to make the use cases within the hospitality where they can live in room, check-in, check-out instead of going to the counter and checking out to lot of delivery boys can have their individual, Tap Pay thing where they can collect payments, when they deliver the goods instantly to credit, debit and other things. A lot of other things has been quoted and being built. So it’s evolving technology.

As far as CBDC is concerned, we have build a lot of high-end technology to enable [Indecipherable] to make the CBDC, the Central Bank Digital Currency, the e-Rupee available right now. We’ve done a proof-of-concept with five or eight merchants where we did the first online CBDC transaction for retail payments in the country. So we are the first to do it. A lot of coding effort and lot of, since it is totally new in the sense that. Many aspects of this kind of currency option has not been given by the Central Bank. So it’s a continuously evolution process and I think once all those processes and everything — other things comes in place, it will really take-off. But right now, it is just in a pilot phase, and we’re still working out on lot of modalities and lot of use cases and lot of enabling to make it as strong and as innovative as UPI first for mainly debit this kind of system that can disrupt cash. So it will take some time and effort, but we have been the first and we are still working and building a lot of new technology and use cases for this also. It will evolve in the coming quarters and when we will see the growth, we will report it as well as also the press [Phonetic] is also very keenly following it.

Ayushi Shah — Individual Investor — Analyst

Okay, okay sir, and just to confirm, [Indecipherable] like the CCAvenue the app downloads today, there are like 100,000 downloads. So all those downloads are by small merchants only, right. There are not any big merchants over there?

Vishal Mehta — Managing Director

There is a mix of both, mostly we are focusing on the smaller merchant, when there is any immediate need. And this then definitely there are some middle merchants also. But as you — this thing will give out the client names in the coming quarters. Then you make bigger use cases and this thing, but that pace and get deeper integration to the bigger, bigger games in the market.

Ayushi Shah — Individual Investor — Analyst

Okay sir, sir thank you so much for that comprehensive answer.

Vishal Mehta — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Rahul Jain from Dolat Capital. Please go ahead. Mr. Rahul Jain, there’s a lot of disturbance from your line.

Rahul Jain — Dolat Capital — Analyst

Is this any better?

Operator

This is slightly better. Please proceed.

Rahul Jain — Dolat Capital — Analyst

Yeah, sorry for that. Just wanted to understand the perspective regarding this payment aggregator issue where we are seeing that the competition is not getting the approval, but we have got the license, so any shift in the market-share is something that we might have observed and how you see the competitive landscape shaping up out again.

Vishwas Patel — Executive Director

Vishwas here. So basically, look, we’ve been a long-term player over two decades growing this entire digital payments system, right. And we have done it step-by-step block-by-block, building compliances, building the next level of security, and even more importantly not being greedy in giving access to the Indian payment systems to the stopless merchants, right. And many, we have seen many we have seen now where because of the flexibility of this compliance issues or giving access to merchants to Indian payment systems there today now, RBI has told them to clean-up their act, right. So today, yes four of our biggest competitors cannot onboard any new merchant, as of now, as of today, and yes, it has impacted them. But it also shows to our shareholders that the value that we delivered on building the next level of security and the compliance that we follow a top-notch, that’s why we are active and we see a lot of — we displayed a record number of new merchants that we on boarded, in this quarter and many of these comes because of the reputation and the goodwill and the strong compliances that we have demonstrated to our RBI as well as all our banking partner and to our merchants, that is now paying off.

So yes, it does affect the market, it does affect many other players where they cannot onboard new merchants. So this our long-term strategy of playing real long-term value-driven game, and it’s paying off now.

Rahul Jain — Dolat Capital — Analyst

Yeah, so of course, I understand the long-term aspect of it, which is very, very relevant. What I was also trying to understand is, any — anything, you know, it’s likely from a near-term advantage perspective also, if we are able to onboard some relevant scalable merchant in the interior [Phonetic] which could have given us the advantage of taking market share in the near term.

Vishwas Patel — Executive Director

If you have seen, we have been constantly doubling our TPV over the years. So we are not dependent on this opportunity, but on a long-term goodwill and other things that is there, right. Merchants do trust us and lot of definitely the current onboarding of any new merchants by the four top other PG’s is definitely helping the case, but we don’t look at it that way as then opportunity in someone’s despair. We standby our team [Phonetic], and I think 22 years is good enough time to develop an application and this thing, where people and merchants do trust us, because this is ultimately money that we are handling and it’s a record of 22 years, that it is every day single-digit thousands of crores are paid out by us, and we have not a single penalty by any car company or RBI or anything. So that value system somewhere there is — there is a premium and there is a credit given by many [Indecipherable]. So that’s paying-off, and we’ll continue to grow that reputation and quality and technology and compliances that we always have been known for.

Rahul Jain — Dolat Capital — Analyst

Right.

Vishal Mehta — Managing Director

And in the short-term, you may see it, this is Vishal, you’ll will see, if you look at the daily merchant addition averages, we used to have in Q2, we were averaging about 70,000 merchants we have gone to 11,700 from there on a daily average business. So the number of merchants who are signing-up for this has significantly increased. That is a small short-term blip that you will see because of this uncertain events and perspectives.

Rahul Jain — Dolat Capital — Analyst

Right, right. Fair enough. Just last one clarification. And sorry if this has been a repeat question regarding the GeM, what we saw is one of your consortium partner has seen a revenue impact, because of the repricing on the volume-led basis, is that already factored in revenues also or it’s yet to add them?

Vishal Mehta — Managing Director

It’s factored in, so absolutely.

Rahul Jain — Dolat Capital — Analyst

Sure, thank you so much. That’s it from my side.

Operator

Thank you. The next question is from the line of Anil Nahada, an Individual Investor. Please go ahead.

Anil Nahada — Individual Investor — Analyst

Thank you for the opportunity. The first question I have is that, Vishal can you give an update on the Trust Avenue initiatives that we had launched some two or three quarters back?

Vishal Mehta — Managing Director

Sure, so the platform was launched for merchants to avail loans from banks and NBFCs. We had two different ideas of actually growing that framework up. Now, basically, the whole idea was a tech platform where as a tech platform, where we own [Phonetic] a tech platform and there is a spread between give-and-take. So it’s similar to what the DSA or a super aggregator DSA looks like from a revenue model perspective for us. And the two opportunities that we were wanting to build upon is our own merchant base and then our marketplace. Significantly, larger market is, because finally, the market this has a lot more data and information about how to utilize the framework, so that we know when products and services are being offered that there could be factoring, there could be certain kinds of loans that can be provided to merchants. So we are actively working on building up the pilot for very large merchants to be able to utilize that revenue.

So while we have launched it, I think the margin needle mover for us would be to be able to give out. Because this is a technology framework. And when you provided tech framework to maybe one of the top-five marketplaces in the country then potentially that will become a very interesting opportunity for us because automatically it gets to scale. And that is the one that we’ve been working on. And we’ll be talking about that maybe in coming quarters.

Anil Nahada — Individual Investor — Analyst

So can you give us some sort of timeframe that you are looking towards the integration and sometimes we can you of course, said that you will talk more in the coming quarters…

Vishal Mehta — Managing Director

Next, it will be in the first-quarter to the second-quarter of next year. So that is the timeframe when you can expect to hear from us about Trust Avenue more.

Anil Nahada — Individual Investor — Analyst

And secondly, about the tie-up with the bank site, the loan disbursal site.

Vishal Mehta — Managing Director

[Technical Issues] there are many aggregations as well. And there’s a lot of value chain that is associated with that. So generally speaking, when the data — when the volume is significantly larger than the economics of that changes significantly as well. And so I think it’s a combination thereof. You must have seen some of the loan disbursals of other fintech companies and how they have worked out. We have taken an appropriately conservative view in terms of how to enable such activities. If you look at factoring of course, the spread is not as large as unsecured loans and I think fintechs and banks and financial institutions, they are somewhat getting acclimatized as well as not being shy about giving such loans based on data. So success rates across-the-board will improve, and I think given that you know a large market base can utilize it, it becomes a very interesting opportunity for us to be able to act as a technology partner in this.

We have made it very clear, we are not putting up the balance sheet on this. And we will continue working like a TSP, which is a technology solution provider.

Anil Nahada — Individual Investor — Analyst

The second question is to Vishwas. In terms of that Tap Pay, while I heard that you are serving some… [Technical Issues]

Operator

I’m sorry to interrupt Mr. Nahada, sir there is lot of disturbance in your line.

Anil Nahada — Individual Investor — Analyst

I am sorry about that. The question to Vishwas is that right, why Tap Pay, in the last quarter I had a question as well. The key question that comes to my mind is, what is the structure inhibiting the rapid scale-up of this? I mean, is it something that it is a technological limitation is a market learning history [Phonetic] or what? I mean, suppose if I want to take Tap Pay tomorrow can I go and take it from a business?

Vishwas Patel — Executive Director

Yes, of course, you can. So we are live in that prospect. So you can download the app and start — even do online registration and start accepting payments. So that is live and I think we have almost 1,000 merchants now who is going back. The thing is any introduction of any new kind of acceptance mechanism, right for that It takes little time to push up. Word-of-mouth has still not started, right. The moment it picks up and moment when they see the convenience, the use cases and other things, then it will take-off like anything. So right now we’re just working on lot of different use cases. Like for example, let’s say, if it is a restaurant and they have 12 delivery boys, so they can’t have 12 point-of-sale terminals in their hands, right. But within one merchant account of the restaurant, can we have used the management’s right with each delivery boys number map, so whenever they collect the payment that the main account gets a notification that this payment has been collected and all that stuff.

So building on that, still it is continuous development, a lot of other things that is there, but rest assured, you all can see the benefits. A INR12,000 rupees clunky point-of-sale terminal with battery issues and supplying printer rolls to say a Tier 4 city or town, deep out in village, deep inside a state like Manipur or Orissa, it is much easier to just download the app and do everything on the phone, of your existing phone, right. So those are all things that there, many used-case, you will see the [Indecipherable]. It’s just a matter of time. World has already recognized that contactless payments the Tap Pay is the future where all these existing terminals will be eliminated in the next two or three years. So we have the right trim [Phonetic]. We are the only ones which are certified with pin-on-glass where transactions, any transaction above INR5,000, you can enter your pin on the phone of the merchant. So that certification exclusively with us for in Asia, actually, and pin-on-glass for higher or bigger amounts more than INR5,000 is only with us right now.

So all those things that there it’s a matter of time, till it fully goes out. We will see a lot of deployments, where we’re having an integrated solution where we put, not only the Tap paper [Phonetic] also, our QR code along with our marketing efforts now. In the coming few quarters, you will see a lot of traction and changes coming there. And as users will be leading the whole effort of this contact-less payment in the market.

Anil Nahada — Individual Investor — Analyst

Okay. So basically we can think about seeing some meaningful revenues coming on to this from quarter two onwards FY ’24?

Vishwas Patel — Executive Director

I think some of the revenues have already started. It’s a merge thing because ultimately at the back-end it is still the CCAvenue Payment Gateway that is just the form factor. The Tap Pay is just a form factor. So you use the CCAvenue Payment Gateway, it’s an Omni-Channel payment gateway. That means that you can use Tap Pay for your offline in the store, customer present scenario, you can use it for your own company app, if you have to collect payments in that, you can send-out WhatsApp Payments Link, other things like that, you can use it on your website, along with the existing shopping cart and all those transactions are reflected into one CCAvenue Payment Gateway. So this is just another form factor that we have added, to specifically cater to this offline and other merchants, whom we were catering all these years because we never believed in the point-of-sale terminal business, because that’s where very expensive difficult, and not revolutionary. This is something which is different and can disrupt the whole thing.

Anil Nahada — Individual Investor — Analyst

Absolutely. I mean, that’s why I think lot of participants have the question on Tap Pay, because this is really a disruptive thing. So I’m sorry if I can just ask you a question that, I know it is all ultimately aggregating into the payment gateway business, what kind of transactions, you are seeing on this and have we crossed a lakh transactions per day, some sort of order of magnitude that will give us an idea of…

Vishwas Patel — Executive Director

As I said, it is a merge transaction I cannot give divulge right now. So overall, on the transaction volume all these transactions are also reported. We are not segregating because as we said through the phone app the CCAvenue app which has Tap Pay you can send the payment link also, and the transaction will commence. And in that app only [Indecipherable] also there. So that with an intricate level of detailed reporting that these transactions for a particular merchant came via tap on phone or on their website or in their app, or through a payment thing or through e-QR [Phonetic] those details I think it’s too — the same detailing to disclose. The overall volumes, it is reflected, [Technical Issues].

Anil Nahada — Individual Investor — Analyst

Okay, thank you for that. And the final question on GeM I heard a previous participant asking a question that there has been some repricing on volume basis. Can we get the sort of idea on what kind of repricing has happened? And since then, this has been applicable?

Vishal Mehta — Managing Director

If you’re referring to GeM repricing, is that your question?

Anil Nahada — Individual Investor — Analyst

Yes, right sir.

Vishal Mehta — Managing Director

Yeah, so. Fundamentally, what it means is that beyond a certain threshold of volume on a particular order that there is a capping. So in other words at a certain threshold of a value that — because if you remember and recollect, we had a variable fee. And so, in other words, if there are multiple orders for a single setup that you have done that it continues, exactly the same way, but you know, for a very large order, there is a capping that government has introduced and that is the E-pricing that we talked about.

And second is the G2G order, government-to-government order. So if there is any government-to-government order, then there is repricing on that. So those are primarily — I think if I had to summarize the two impacts that you would see. There also a slight change in terms of the if you recollect that beyond a certain volume that bps for the consortium goes down. So there has been a marginal change in that. But the two major changes are these. And that has been factored in, in all of our revenues.

Anil Nahada — Individual Investor — Analyst

And this has been applicable since like which quarter?

Vishal Mehta — Managing Director

This has been applicable since the last two quarters.

Anil Nahada — Individual Investor — Analyst

Thank you very much. That answers my question. All the best.

Vishal Mehta — Managing Director

Yeah, thank you.

Operator

Thank you. Ladies and gentlemen due to time constraints that was the last question. I now hand the conference over to the management for their closing comments.

Vishal Mehta — Managing Director

Thank you all for joining the Q3 Investor call and we look forward to keeping in touch with you. So thanks again.

Operator

[Operator Closing Remarks]