Matrimony.Com Ltd (MATRIMONY) Q4 FY22 Earnings Concall Transcript

Matrimony.Com Ltd (NSE: MATRIMONY) Q4 FY22 Earnings Concall dated May. 12, 2022

Corporate Participants:

Saurabh Thadani — Vice President

Murugavel Janakiraman — Chairman and Managing Director

Sushanth Pai — Chief Financial Officer

Analysts:

Prakash Kapadia — Anived Portfolio Managers — Analyst

Nilesh Shah — Envision Capital — Analyst

Unidentified Participant — — Analyst

Sonal Minhas — Prescient Capital — Analyst

Vivekanand Subbaraman — AMBIT Capital — Analyst

Sameer Pardikar — ICICIdirect — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Matrimony.com Q4 FY22 Conference Call hosted by IIFL Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Thadani from IIFL Securities Limited. Thank you, and over to you.

Saurabh Thadani — Vice President

Thank you, Mike. Good evening, ladies and gentlemen. Apologies for the slight delay in starting and thanks for joining us today on the Q4 fiscal ’22 earnings call of Matrimony.com Limited. On behalf of IIFL Securities. I would like to thank the management of Matrimony.com for giving us the opportunity to post this for earnings call. Today we have with us from the management. Mr. Murugavel Janakiraman, Chairman and Managing Director and Mr. Sushanth Pai, Chief Financial Officer. With that, I will hand over the call to Mr. Murugavel sir to take the proceedings forward. Thank you and over to you, sir.

Murugavel Janakiraman — Chairman and Managing Director

Thank you. Saurabh. Good evening, everyone. I hope all of your are continuing to stay safe and healthy. When we started last year, the second year of the pandemic caused a grave situation to people and business. Apart from the people centricity, we had a relentless execution of our strategy through our committed leadership and passionate associates and we are working towards our [Indecipherable] purpose of helping people to find their right life partner. The focus on our purpose [Indecipherable] helps us to minimize our impact and we could achieve the desired outcomes and I would like to state that we achieved a 15% revenue growth in FY22 and the 31.4 percentage in ad growth, which we believe are good outcome in these situations. If you could exclude the losses we made in wedding services of INR9 crores, the profit would have been INR61 crore at the end of first quarter. Our continued performance and so we believe the intrinsic value of Matrimony.com doesn’t reflect the current [Indecipherable] of Matrimony.com. So while we are announced the dividend and we also announced the buyback which Sushanth will be sharing, however, we believe that the growth momentum in FY22 the growth momentum will continue to get better and in FY22 we have done lot of significant contribution in terms of business and offerings to our customers and our stakeholders. Some of the key milestones for the year are as follows.

We launched Jodii, a new offerings for people targeting — our new offering for people who are non-degree holders. Today are offering the service in 10 vernacular languages and at affordable price and at a simple user interface and we launched unique [Indecipherable] features to help 12 members profile to be seen and connected only with the relevant matches, a launch of video profile feature to help customer who wants to go beyond words and picture to express themselves, the launch of Bangladesh operation and the acquisition of ShaadiSaga to scale up our present wedding services which actually integrate into WeddingBazaar. Today WeddingBazaar is India’s largest wedding services marketplace and with the Mandap.com and WeddingBazaar.com we have more than 1 lakh vendors and we expect that growth momentum of WeddingBazaar to further improve. So, the [Indecipherable] initiative what we launched along with MS Dhoni, that is Pehle Padhai Phir Shaadi, we are looking at helping girls in Rajasthan to choose education about marriage. That’s our social initiatives that we launched in FY22. Launch of our new HRM system [Indecipherable] and the migration of AWS towards our services to help us to execute and scale faster. While this [Indecipherable] but however in the long run, which will help us to execute faster also the [Indecipherable] depreciation in the coming years will come down, but not this year but one or two years down the line.

Let me come to the results in Q4. On a consolidated basis, we achieved INR115.1 crores in billing which is 7.9% year-on-year growth. Revenue were INR110.6 crores, which is 9.4% year-on-year growth and and for the full year, we actually the INR434.4 crores billing which is a growth of 12.9 percentage. Revenue for the full year was INR434.5 crores which is good 15% growth. A key highlight for the matchmaking business are as follows.

Quarter 4, the billing was INR113.2 crores, a growth of 6.7 percentage quarter-over-quarter and 6.7 percentage year-on-year. Revenue of INR109.1 crore a growth of 1.8 percentage quarter-over-quarter and 8.4 percentage year-on-year. For the full year, the billing was at INR430 crores, a growth of 12.2% revenue at INR430.4 crores, a growth of 14.5 percentage. We added a coupon [Indecipherable] 34 lakhs paid subscriptions during the quarter, which was a growth of 8.8% quarter-over-quarter and 3.1% year-on-year. We added 8.9 lakhs paid subscriptions during the year which was a growth of 6.8 percentage.

The ATV for the matchmaking business increased 3.3% year-on-year but declined 2% quarter-over-quarter. For the full year, ATV increased by 5 percentage. We continue to track the impact we create for customers. We are happy to state that we have created around 24,000 success stories in quarter 4, making a total of 104,000 success stories for the year FY22.

Now coming to the marriage services business, revenue was INR1.5 crores, a growth of 209.5 percentage year-on-year. The losses for the quarter was 3.1 crores compared to rupees INR2.9 crore in the previous quarter. For the full year revenue was INR4.1 crore a growth of 89.6 percentage. Losses were at similar level of FY21 at INR9.6 crores and the billing revenue outlook for quarter 1 on a consolidated basis, we expect the growth momentum to continue with the billing that we expect to grow double-digit growth on a year-on-year basis. The growth on our wedding services will further increase. We expect the wedding service to grow at attributable basis. However, the losses will be at a similar level.

Before I conclude, I’d like to thank all our customers, employees, investors, stakeholders and partners, regulator for their continued support. Let me pass on to Sushanth to comment on the key profitability highlights. Sushanth, over to you.

Sushanth Pai — Chief Financial Officer

Yeah, thanks, Murugavel. Our EBITDA margin for the matchmaking business in Q4 is at 22.7% as compared to 24.5% in Q3 and 23.4% a year ago. For the full-year EBITDA margins for the matchmaking business was at 26% as compared to 23.9% in FY21. Marketing expenses are at INR42.7 crores as compared to INR41.6 crores in quarter 3. Marketing expenses for the full year was at INR161 crores as compared to INR137 crores in FY21. Excluding marketing expenses, our margins in the Matchmaking business are very robust. It’s at 63% in FY22 as compared to 60% in FY21. This indicates operational efficiencies that has brought in this improvement and also due to increased revenue.

On a consolidated basis, our EBITDA margins in Q4 are at 18.1% compared to 18.6% in quarter 3 and 17.7% a year ago. For the full year, our EBITDA is at INR90 crores, which is 20.6% as compared to INR70.6 crores in FY21 which is 18.6%. This is a good growth of 27.5%. Tax rate is at 25.8% for the quarter and 25.2% for the full year. PAT excluding Astro, which is our associate company is at INR11.9 crores, an increase of 1.9% quarter-on-quarter and 17.3% year-on-year. Share of loss from Astro, which is our associate company is INR16.8 lakhs. PAT for the full year excluding Astro is INR54.4 crores which is 12.4% PAT margin as compared to INR47.3 crores which is 10.9% in FY21, which is again a good growth of 37.5%.

Our free cash generation has been robust at INR17 crores for the quarter and rupees INR60 crores for the year and our cash balance is at INR334 crores. On the outlook for Q1 margins, given the salary increments in the range of 8% to 9% in Q1 and increase in marketing expenses in newer areas, we expect EBITDA and PAT to decrease slightly from the Q4 levels. However this profitability will pick up from Q2 onwards. Other announcements in the quarter are as follows.

The Board of Directors at its meeting held on May 12, 2022 which is today have recommended a final dividend of 100%, which is 5 per equity share of par value of 5 each. This is subject to the approval of the shareholders.

Apart from this, the Board of Directors, again subject to the approval of the shareholders have recommended a buyback of equity shares not exceeding INR75 crores at an indicator maximum buy back price not exceeding rupees INR1150. I would like to end with the customary Safe Harbor statement. Certain statements during this call could be forward-looking statements on our business. These involve a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. We do not undertake to update any such forward-looking statements that may be made from time to time by or on behalf of the company unless required by law.

That ends with our opening — ends our opening remarks, I’d like to pass it on to Saurabh and Mike for opening the Q&A.

Questions and Answers:

Operator

Thank you, sir. We will now begin the question-and-answer session.[Operator Instructions] We have the first question from the line of Prakash Kapadia from Anived Portfolio Managers. Please go ahead.

Prakash Kapadia — Anived Portfolio Managers — Analyst

Yeah, thanks for the opportunity. Congrats, Murugavel on taking investors feedback so positively and announcing buyback and signaling to the market about our valuations and the belief in the business and the ability to create wealth for shareholders. Congratulations for that. Couple of questions from my end. Are promoters going to participate in the current buyback.

Murugavel Janakiraman — Chairman and Managing Director

Yeah, Prakash, thank you very much and appreciate your suggestions and the feedback and we definitely value all the investors and the feedback and in terms of the participation from the promoter side, no. I’m not participating. In fact pretty much I did buy shares from the open market. So we get a sense that [Indecipherable] truly believe in competence of Matrimony.com

Prakash Kapadia — Anived Portfolio Managers — Analyst

It’s really good to know. You’re giving an opportunity for shareholders other than promoters to benefit even more. That’s actually a very good sign, really really appreciate that. Couple of other questions. This quarter, if I look at the billing rate. It is up 8% on a year-on-year basis and on a sequential basis around 7.2%. So just wondering, am I missing something because we keep on reading about record weddings given unlock this summer season, wedding season is very high. So that context is revenue growth slightly lower than expected or is there some spillover in Q1. If you could give some sense on the revenue side.

Murugavel Janakiraman — Chairman and Managing Director

Prakash, thank you. While we expect a double-digit growth in Q4 we have generated a great percentage. See, the weddings are different than the matchmaking because while the revenues for this business [Indecipherable] wedding business continues to grow at a triple-digit basis because obviously we are on a smaller base at this point of time. On the matchmaking side, people — when the people find their life partner and when the people will be getting married are 2 different things. Normally it takes around 9 months to one year for people to find a life partner, that’s average tenure what we see on our matrimony side. So 2 different things. So the wedding seasonality in a way that is more [Indecipherable] narrow gap and that it will get people to enroll into that and contribute to the number of people coming into the marriage — the matchmaking platform but both are two independent things. So the marriage taking place that’s hard to — kind of corresponding to revenue and other things in the same quarters but then there are more number of marriages definitely know [Indecipherable] much publicity know that they got married through Matrimony, they definitely — more people coming to the platform. But again, so those are 2 independent things. So that’s the point I want to start. In terms of Q1 definitely, we expect this year growth will be better than the growth what we had in last year where last year growth on the matrimony [Indecipherable]. We do expect this year the growth will be better than the previous year. So we [Indecipherable] a new opportunity and we definitely see the momentum in the business. So we believe that the growth will better.

Prakash Kapadia — Anived Portfolio Managers — Analyst

Understood. And lastly from my side, ad spend seems slightly higher. Is it due to the slightly lower revenue growth we’ve seen? Or is it competitive intensity, which is where it was or maybe some increase? How do we look at that headline number?

Murugavel Janakiraman — Chairman and Managing Director

Marketing-wise, we continue to invest on the marketing. In terms of our operational costs, I’d say we move to AWS but AWS kind of has pushed our operational cost because earlier we [Indecipherable] kind of service provider where we used to buy servers, so that is more on the capex side. On moving to AWS, the benefits of moving to AWS, this in the longer run we know to buy servers so we’ll get this our cost going down on the depreciation over [Indecipherable] since we moved to AWS there will be some increase in the operational cost. And so, yes, there is an increase in operational costs. However, the benefits are that we could be able to execute faster, able to move and drive things faster because rather than waiting for buying servers and putting a recurring [Phonetic] software. While in my view that we could have done this earlier, 1 or 2 years before. We are little late. However, we are finally moved to the cloud platform. It will give the flexibility in terms of how you can able to execute things and so that way it is definitely useful for us. But yes, in the short — from now on there will be some increase in the cost, which already started seeing from Q4. But however, I should say that in a couple of years down the line, the benefits of that will be [Indecipherable].

Prakash Kapadia — Anived Portfolio Managers — Analyst

Understood. Thanks I will join back in the queue if I have more questions and congrats once again on taking these initiatives. I will join back in the queue.

Operator

We have the next from the line of Nilesh Shah from Envision Capital.

Nilesh Shah — Envision Capital — Analyst

Hi, thank you for the opportunity and thank you so much for announcing the buyback, taking of feedback. I think it just reflects your confidence in being able to grow this business in the most capital-efficient manner. And if I’ve heard you correctly, that the promoters are not going to be participating in this buyback, which again reflects your respect for minority shareholders. So I’m taking this opportunity to convey my thanks for the wonderful decision taken and best wishes for the future as well. In terms of the business, can you just kind of give, Murugavel, some more light in terms of the Wedding Services business? I mean I think now the acquisition and the integration is probably more than now almost a year or probably a bit more than a year. Can you give some more light in terms of how is that business shaping up in terms of some more qualitative detail? Any milestones achieved or that we are likely to cross in the near future? And how is that business shaping up, please?

Murugavel Janakiraman — Chairman and Managing Director

Yes, Nilesh, good evening. Thank you very much. Appreciate your views. And in terms of Wedding Services, we bought the company some time in September. The integration just got over. So it has happened in the month of April. We successfully integrated ShaadiSaga into WeddingBazaar. So today WeddingBazaar has become the India’s largest wedding for the marketplace. So we definitely see the good momentum in this business because definitely ShaadiSagas has brought in a lot of capabilities in terms of product, value delivery and some of the interesting not only the product side as well as on the service side. So with this, that we are now all set for Wedding Services business to grow to achieve our goal to become a INR100 crore company in 3 years which means that growth momentum has been picking up. We see that the business is growing on a quarter-on-quarter basis, year-on-year basis. Year-on-year basis definitely growth at a triple-digit basis. In Q4 then, closer to to INR2 crore and the business continues and is going to to grow. In terms of the integration just got over. Put together listing-wise we have more than 100,000 listing. That makes us India’s largest wedding services marketplace. And yes, just integration has got over, the business was bought only in the month of September. It took 6 months for us to integrate things to become a single entity. So ShaadiSaga speaks to itself. Now it’s become — we integrated both the business. We are now going to operate only one name on Wedding Services which is going to be weddingbazaar.com. So — but then you have mandap.com, so [Indecipherable].

Nilesh Shah — Envision Capital — Analyst

Just a follow-on on that, that we’ve been kind of incurring a net loss of about INR3crores every quarter on this business. Do you think that’s still a number which will kind of hold for a few more quarters? Or you think that’s like kind of peaked and is probably likely to now trending downwards?

Murugavel Janakiraman — Chairman and Managing Director

Yes. I think we’ll continue to operate at this level for the next couple of quarters. However, when the business grows and I believe it’s going to grow, and as I told you, the plan is to be a INR100 crore company in next 3 years. And we see that the growth is happening. Yes, in the next couple of quarters the loss will be single level. But as the business improves, the loss will also come down. So probably hopefully maybe around a couple of years, a year down the line probably we see the hope [Indecipherable] but again, I don’t want to be sure of that one. But we see that the traction and growth. So yes, in the short term, yes, loss will be at a single loss.

Nilesh Shah — Envision Capital — Analyst

I’m sure your hands are full now with both the Matchmaking and the Wedding Services business, but any other adjacencies that we are beginning to explore or evaluate or that we have any plans in the near term? Or are we kind of — currently, we are occupied with both these 2 segments for now?

Murugavel Janakiraman — Chairman and Managing Director

We’ll continue to explore opportunities in the core matchmaking and the big services area. So as an organization you need to keep evaluating opportunities, keep exploring new avenues to drive growth. They continue to happen.

Nilesh Shah — Envision Capital — Analyst

Thank you so much and good luck for the year ahead. Thank you, sir.

Murugavel Janakiraman — Chairman and Managing Director

Yeah, thank you, Nilesh.

Operator

We have the next from the line of [Indecipherable] from Edelweiss.

Unidentified Participant — — Analyst

Hello, yeah, thanks for the opportunity. I have a couple of questions. Firstly, can you comment a bit about how should we see the cost going forward, specifically the employee cost and advertising cost. So the employee cost for most of the Internet companies have seen a fair bit of escalation. For matrimony, the escalation is much lesser. So should we see a bigger increase in employee cost in FY ’23? And also on advertising cost, how do you see FY ’23 advertisement panning out considering current competitive intensity? And any comment on the competitive intensity?

Murugavel Janakiraman — Chairman and Managing Director

Yes. In terms of employee costs, probably maybe grow by 8% to 9%. So we run a very efficient organization and that way we [Indecipherable] appraisal and some additions. We feel that we could be able to manage this kind of cost. In terms of the marketing costs, marketing costs continue to increase but because industry has new opportunities and new avenues to drive growth. However, probably now last year has been INR160 crores, yes, definitely increase in marketing. But we do expect that we are invited to begin the growth. And as I said, the growth will this year be better. And so that’s [Indecipherable] talk about the marketing going to increase. And in terms of competitive intensity, if that reduces, definitely our marketing costs also reduce. In fact, if not for that increased competitor marketing spend, our profit would have been probably maybe INR100 crores last year because last year we spent INR160 crore on marketing. Probably we could have even managed with INR100 crore on marketing. However, yes, we expect this to continue. But however, we are kind of — as an organization, we have continued to grow, continue to widen the gap between us and the competitors. And maybe in the future that the competition to reduce probably those benefits come into our EBITDA. So we continue to reinvest and run our efficient operations and it’s good, better. So yes. So that’s outlook we have view our–

Unidentified Participant — — Analyst

Sir, I mean, if I have to summarize, you are saying that the competitive intensity has been largely stable and INR160-odd crore what you spend on marketing will grow in line with the revenue, assuming the competitive intensity remains. Is that a fair assessment?

Murugavel Janakiraman — Chairman and Managing Director

That is an increase in marketing. It depends on how the overall scenario, how we see the outlook for some of our initiatives, how the competitors are going to conduct themselves. It depends on various things. But we do see increase in marketing. However, we do see that our growth will be better than the previous year.

Unidentified Participant — — Analyst

Can you comment a bit on the growth? I mean, is it the market expansion or realization improvement or market share gains, which of the levers you think is going to drive growth for this year?

Murugavel Janakiraman — Chairman and Managing Director

It’s a combination. We’ll continue to do very well and continue to gain market share and continue to expand and working on new avenues to drive growth so — and with global expansion and our growth in our [Indecipherable] service, online services. So the combination of various factors are driving the growth. We expect that all the things continue to kind of get better, and we see that in our outlook. So yes, we’re definitely gaining share from our competitors, and we are growing and — yes.

Unidentified Participant — — Analyst

Can you highlight any — is the growth higher in certain geographies or, let’s say, north market or west market or anything like that?

Murugavel Janakiraman — Chairman and Managing Director

No, South and East are very dominant markets of Matrimony.com. However, we are actually a leading player or #1 player in west. And North is the only market where we are fighting with other players. There also we’re seeing that the growth in one term. So growth is across the market and not limited to any particular geography. And however, we see the north is where we face intense competition. Again, North is one part of our business. So we continue with our strong dominance in the regions where we have strong reach and strong dominance, that’s continuing. And we’re definitely gaining share in other areas as well. And so yes, the growth is not limited to any particular region. It’s across the regions.

Operator

We have the next from the line of Sonal Minhas from Prescient Capital.

Sonal Minhas — Prescient Capital — Analyst

This is Sonal. Sir, just reconciling from the last few analyst calls we’ve been participating in. And we’ve been basically trying to inch towards like a quarterly revenue run rate of close to INR120 crores to INR125-odd crores, which basically means like a revenue top line of INR500 crores on a run rate basis. And currently we are at 110, as we speak, in this particular quarter. So I just wanted to understand, like, is there a time line we have in our mind for that? And are we in our own expectations at par with that time line? Or there are some challenges in the market which make us maybe a step behind our own internal benchmark on that particular number? And if you could highlight the challenges if there are any, that will be great to understand.

Murugavel Janakiraman — Chairman and Managing Director

Thank you. So in terms of the billing, we look at the billing, billing for the quarter was INR115 crores. So just another INR10 crores we get you into INR500 crores run rate. We definitely sometime this quarter — sorry, sometime this year, probably maybe a second quarter or possibly in — possibly, I don’t know, may get into that kind of run rate. So if not quarter 2, maybe quarter 3, but we are almost there. It’s a matter of time we’ll be getting into INR500 crore run rate. Post that the goal is to be, one we got INR500 crore run rate we know that the next big milestone for us to become a INR1,000 crore company. So hopefully, we’ve been able to get there probably in 3 to 4 years.

Sonal Minhas — Prescient Capital — Analyst

Understand. And sir, from a competitive intensity perspective, like I just want to understand given how the liquidity is getting out of the market, are you seeing like signs of marketing tapering by our competition in the last 2 months? Or anything subjective around there that makes you believe that the marketing intensities should taper or should stagnate at these levels?

Murugavel Janakiraman — Chairman and Managing Director

We are not seeing any significant reduction in the marketing because the info is on other players. They are the [Indecipherable] they can invest as much as long as they want. And the other players they also continue to invest. So we are this point of time, we are not seeing any slowdown, but we have to wait and see whether there are any, if at all anything. However, we are well-placed. And so if the competition intensity reduces, that means we can delay some spending on marketing. So we’ll not be spending the similar on marketing. However, as I said, we have the growth ideas, growth initiatives, and we continue [Indecipherable] within this initiative. We expect the growth, to increase sales and revenue increases, which is our EBITDA margin also continue going to increase. The company [Indecipherable] the EBITDA margins are going down. I don’t know whether it’s going happen this year or next year, but that’s something very difficult to see at this point of time.

Sonal Minhas — Prescient Capital — Analyst

Understand. Sir, if I may sneak another, which is related — can I?

Murugavel Janakiraman — Chairman and Managing Director

Yes, please go ahead. Sonal, you can.

Sonal Minhas — Prescient Capital — Analyst

Sure. Sir, on the top line growth, I just want to understand if you could give a ballpark of, or split the numbers between your new geographies and your existing geographies with the South Indian market where you’re dominant, like what are the growth rates you’re seeing in new geographies versus the South Indian market. If you could just maybe highlight some subjective or numerical data on that, that will help understand the split, how are you doing in the existing and the new geographies.

Murugavel Janakiraman — Chairman and Managing Director

South and East we are dominant players and we are #1 player in the West, the only market where you are sort of fighting the other players in that market. So for competitive reasons, we are not going to break up. However, as I said, we have been growing across the markets, not limited to any particular geography. So if you can understand, we don’t want to give the breakup of region-wise growth and all that.

Sonal Minhas — Prescient Capital — Analyst

Okay. But you are happy with the growth in your existing markets where you’re dominant player? That’s more what I wanted.

Murugavel Janakiraman — Chairman and Managing Director

Yes, yes, definitely. We are kind of — that’s a very, very strong market for us and a strong network of a strong reach, so.

Operator

We have the next from the line of Vivekanand Subbaraman from AMBIT Capital. Please go ahead.

Vivekanand Subbaraman — AMBIT Capital — Analyst

I have a couple of questions. So one is on the billing growth in the matchmaking services business, we have seen that through the year there has been a moderation of growth of billing and we have managed to deliver a good billing growth for the full fiscal year, around 12.2%. But as we close the year, this billing growth was lower. So Muruga, how should we think about the growth for billing? And why is the industry billing not growing despite, as you yourself admitted, the INR160 crores of advertising could have very well delivered this growth with INR100 crores of advertising. You’re spending INR60 crores more, right, for — as an investment for growth. So why is the segment on the whole not growing as fast as some of the other tech business? That’s one. The second is on Jodii, which is the across Indian languages you have launched this app. How is the sign up rate here and the experience? And by when do you think this will start contributing meaningfully to your overall revenue or at least in terms of the paid transaction. And Sushanth, just to understand the transaction, paid transactions better, does this also include contribution from Jodii in the matchmaking segment? Those are my questions.

Murugavel Janakiraman — Chairman and Managing Director

Thank you, Vivekanand. So in terms of the growth, I said, we expect outlook for matchmaking this year, definitely the growth of matchmaking this year is better than before, the FY ’22, okay. So we continue to take steps like expansion, new initiates or advertise the core matchmaking business, growing at a better rate. So we definitely see that this year the growth will be better. In terms of the Jodii, yes, Jodii is our new, it’s a very new, just 6 months. We’re definitely seeing kind of some traction. Again, it’s very, very early stages. So we cannot comment or give any breakup of Jodii, as I said, it’s only 6 months old, it’s still in the early stages. And so you see some traction. But again, still early to comment on Jodii. So, everything volume everything includes the Jodii because as I said, Jodii is a very new initiative that even other language just launched recent. It was coming for almost 4, 5 months. We rolled out other languages in the last couple of months. So we also thought of [Indecipherable]. Again, it’s too early to kind of give any details on Jodii.

Vivekanand Subbaraman — AMBIT Capital — Analyst

Okay. If we delve a little bit deeper into the outlook that you mentioned, are you suggesting that the outlook for growth should be better than the full year fiscal ’22? Or are you suggesting that the billing growth should be better than what we saw in Q1? I’m not very clear on this. Sorry to–

Murugavel Janakiraman — Chairman and Managing Director

No, no. Basically, what I meant was, the growth for FY ’23, what you see on Matchmaking will be better than the FY ’22 growth, which is FY ’22 growth on matchmaking was 12% on billing. We expect the growth for this year Matchmaking be better than the FY ’22 for the full year. So that’s–

Vivekanand Subbaraman — AMBIT Capital — Analyst

Okay. So the that I have here is that considering that the last few quarters we have been growing Matchmaking billing at 6.1% and 6.7% now. What gives you the confidence that this billing growth can accelerate beyond 12%, which is the number that you aspire to achieve?

Murugavel Janakiraman — Chairman and Managing Director

The thing is that — one thing that we almost like we just included the migration to AWS in the month of April. So we are sort of last 1 year we are kind of pretty much a technology or focused on the actual migration. So we are in a way that we are constrained by our ability to execute some on the technology product side. After this migration happens, we could be able to execute some of the initiatives. We already started doing it. We see some traction there. But also the steps you are taking in terms of geography expansion, business expansion, other steps you have taken, some of the things what we have done in the last year. All those things started yielding the internal customers [Indecipherable] traction. So the combination of the steps what we have taken and the steps what we are taking. And all the things give that confidence out what are, again, I’m just [Indecipherable] mid-May and the growth what you are seeing up to today, which is kind of we are on a normative growth. So all the things will see that is clearly that the growth will be better at all. It’s a combination of things what we have taken. And as I told you [Indecipherable] mentioned in terms of [Indecipherable] better in terms of consumer [Indecipherable] platform, so new business and other things.

Vivekanand Subbaraman — AMBIT Capital — Analyst

Okay. The last from my side is on the cash balance that we want to be comfortable with because what — we have announced a very large buyback and till last year we were not returning as much cash as we are planning to do with this buyback. So I’m just trying to understand, is this something that you have done purely because you believe that the business is very, very undervalued? Or is this a buyback that you would want to do practically every year as a discipline to return a certain amount of cash to investors.

Murugavel Janakiraman — Chairman and Managing Director

So thank you, Vivekanand [Indecipherable] very much undervalued, okay? So even at the price what is offering, I do believe it’s very much undervalued because as a leader in this space with a 60% market share, it’s a very cash-efficient business and the cash [Indecipherable] business and other stability and growing consistently no matter all the underlying economy or the — no matter whatever the situation of the — I mean, situation, [Indecipherable] it has been a very stable entity to grow. However, the growth would have been better, but however we are taking steps, and we expect the growth momentum to get better and [Indecipherable] pickup from here onwards. So definitely is very much undervalued. So that’s one thing. In terms of whether it’s going to be on an annual basis, kind of — that the board will be a time to time. Again I don’t think it only basis. I’m sorry, if you want to comment on that.

Vivekanand Subbaraman — AMBIT Capital — Analyst

Understood.

Sushanth Pai — Chief Financial Officer

So, Vivek, just to add on this. As you know, we are a cash-generating company, right? We bringing in most of EBITDA into cash. And if you see last year or even this quarter, we have generated INR17 crores of cash, and last year about INR60 crores. So much of it will come back within the year itself. And so therefore, obviously, one which Muruga said is signaling. Second, we are also comfortable with what we have declared. It’s not that we were under any pressure to declare any sort of buyback or anything like that. We believe it’s a comfortable thing. It’s a good way to give back to shareholders. And as you know, there are only very few matters to give in terms of the dividend or it could [Indecipherable] we’ve also increased the dividend slightly from 70% to about 100%. And payout ratio is approximately [Indecipherable]. I think a combination of all this. And what we want to do next year obviously depends on how the plan goes, how our performance goes. And accordingly, the Board will decide what is the industry.

Murugavel Janakiraman — Chairman and Managing Director

Also there are multiple ways to deploy shares. We continue to look at the various ways to kind of deploy [Indecipherable] the Board has declared the dividend plus buyback, and maybe we’ll do something else also that depends on the opportunity, it depends on how do you want to deploy the cash? There are multiple ways to deploy the cash. But [Indecipherable] and to increase the shareholder’s value and–

Vivekanand Subbaraman — AMBIT Capital — Analyst

Okay. And Sushanth, just one bookkeeping that I forgot to ask. What is the cash and cash equivalents balance that you have as on 31st March?

Sushanth Pai — Chief Financial Officer

INR334 crores.

Operator

We have the next from the line of Sameer Pardikar from ICICIdirect.

Sameer Pardikar — ICICIdirect — Analyst

I think that we have informed you [Indecipherable] about the intention of our selling of our Chennai land. So what is the progress on the sale? And how much value do you expect to realize from this [Indecipherable] what are your plans to use this proceeds for?

Murugavel Janakiraman — Chairman and Managing Director

Yes. So what is the first you had?

Sameer Pardikar — ICICIdirect — Analyst

What is the progress on the sale of land in Chennai [Indecipherable].

Murugavel Janakiraman — Chairman and Managing Director

What is the?

Sameer Pardikar — ICICIdirect — Analyst

Progress of the sales of a land in Chennai?

Murugavel Janakiraman — Chairman and Managing Director

Progress on the land. So we just — the shareholders’ special resolution has just been passed. So the Board has taken on record such a resolution. What we intend to do is we want to follow a very professional process for this whole thing. So few things we will do. One, the Board will form a small committee to overlook this whole process. One second, we will also do a fair value of the land by an independent registered valuer. The Board has also decided that it will not sell the land below the cost price, whatever the cost price is. So it will be basically higher of the cost price or the fair value, whichever is higher is what the Board will decide to do.

Sameer Pardikar — ICICIdirect — Analyst

And what are the clients [Indecipherable].

Murugavel Janakiraman — Chairman and Managing Director

Yes. And the fourth thing is that we will sell to parties who are not related parties in nature.

Sameer Pardikar — ICICIdirect — Analyst

Okay. And what are we planning to utilize these proceeds for? Marketing expense [Indecipherable].

Operator

Mr. Pardikar, this is the operator here, would request to kindly come a little closer to the mic as your voice is not very clear.

Murugavel Janakiraman — Chairman and Managing Director

Yes. Do you want me to repeat it?

Sameer Pardikar — ICICIdirect — Analyst

I said what are our plans to utilize this proceeds for once we realize the value from the land?

Murugavel Janakiraman — Chairman and Managing Director

Yes. So whatever value we will get it from the land will be used for advertising expenses.

Operator

We have the next from the line of Nagesh Rajan [Phonetic] from NR Family Office.

Unidentified Participant — — Analyst

Yes, and thanks for the opportunity. And I have been a staunch believer of your business for a very, very long time, and I’m very happy the way the business has been progressing consistently. I have a couple of requests before I ask a question. To begin with, I have a request that if you could also start sharing a quarterly presentation with the business updates and also the future outlook, I think that should help investors like me and probably more — that’s a suggestion and a request. Coming back to my, I think there’s been a lot of discussion around the growth. And I clearly see the concern amongst everyone. And it’s true for me as well. So is there a way you could actually share a slightly broader picture for the next 3 to 5 years in terms of what’s your vision? Okay, what are the kind of strategic initiatives, whether your growth drivers, which one has been exploring. Is it possible for you to share a broader larger picture of the business?

Murugavel Janakiraman — Chairman and Managing Director

On the presentation, we do a quarterly presentation on the highlights of the results and what we think about the business as long as the — also, along with the background of the company and everything, it is uploaded on our website after every quarter. So you can also refer to that as well. Is that what you are meaning?

Unidentified Participant — — Analyst

Well, I don’t see the same on the BSE or on any other sites, so probably I’ve been missing it out.

Murugavel Janakiraman — Chairman and Managing Director

Sure. We’ll check about that. In terms of growth on the matchmaking, so Matchmaking has the 3 levers, so I think it’s all very fundamental to the net of the business. One is that getting more number to sign up. That is the top of the finance. And converting some number of free members into paid numbers at what is the transaction value. We continue to figure out [Indecipherable] working on ways to drive all the 3 things, so increasing the number to sign up on the services and continue to work on the conversion percentage and continue to drive the average transaction value for the right customer at the right price. That has been a broad strategy for us. And again, there’s a broad set, there’s been a broad strategy, and there are so many underlying strategies around these broad strategies. So what are the steps that we are taking to get more numbers to sign up, and so it has been one of the things. And again, in terms of conversion, it’s a combination of product and the sales and various other strategies that’s happened on a regular basis to get more number to go from pre to paid membership. And it would average and on the combination of people taking on in [Indecipherable] partner services and all — so — and get the number to pay the right product — to the right product at the right services. So in terms of I want to thank kind of you being a strong believer of matrimony service. Definitely we are thankful of that. Definitely good business, one of the business [Indecipherable] very limited cash and there’s immense potential. So we continue to work on our various strategies and on our ways to get all the 3 areas to get better. So whether it be geographic expansion, whether it be [Indecipherable] Bangladesh, whether the new business, whether it be Jodii [Indecipherable] some of the initiatives like new offerings also launched. So continue to look at various ways to expand our offerings and various ways to drive the conversion. So again, there’s a big and broad strategy, there are subsubstrategies. We don’t want to get into detail on those things. But this probably sort of kind of sums it up in terms of how we are looking at the growth and what are the levers to tell the growth.

Unidentified Participant — — Analyst

Yes. I appreciate that. Somewhere you also mentioned about INR1,000 crore ambition. Is there a kind of a vision statement, I mean, when do you see ourselves striking that INR1,000 crore plus kind of a revenue? Is there a kind of a road map for the business?

Murugavel Janakiraman — Chairman and Managing Director

Yes, yes, definitely. We definitely this year will cross INR500 crore billing. And we hope to reach that run rate probably sometime maybe in the coming quarters. But definitely this year the company will cross INR500-plus crores in billing. And in terms of INR1,000 crores, yes, probably, you know, maybe next — maybe around 4 years or so, possibly 4 to 5 years possibly. So maybe depends on how when you’re able to drive things, good things. So yes, the INR1,000 crore plan is pretty much one of the things that we are striving. And out of that, we expect the Wedding Service to contribute on the growth. So at the enterprise level, you want to be a INR1,000 crore company. And Matchmaking contributing INR900 crore and Wedding Services contributing INR100 crores. [Indecipherable] today, Matchmaking is INR430 crore. So hopefully next 4 years something like that, we expect matchmaking to probably become a sort of INR900 crore [Indecipherable] we have ambitious [Indecipherable] maybe 4 years or 5 years. But definitely, once you touch INR500 crores, next big milestone is how to become a INR1,000 crore company, yes.

Unidentified Participant — — Analyst

Yes. I think the current business model in itself should take us to close to INR750 crores by FY ’25 organically, even if one has to look at a CAGR of 15% plus. And if you have plans of bringing in another inorganic around INR200 crores to INR250 crores, that should be good to take us to INR1,000 crore plus.

Murugavel Janakiraman — Chairman and Managing Director

[Indecipherable] we are looking at organically driving the growth, okay? We are not [Indecipherable] organically, so not even talking any inorganic growth, yes. Basically, we want to drive it aggressively that. We want to accelerate our growth momentum. But I think — we believe that we are getting that.

Sameer Pardikar — ICICIdirect — Analyst

Yes, please do. I think we are a new-age company, and I think it’s very important for us to be at least 2x to 3x of GDP growth year-on-year.

Murugavel Janakiraman — Chairman and Managing Director

Yes, I agree with you. Yes, yes.

Operator

[Operator Instructions]

Murugavel Janakiraman — Chairman and Managing Director

There are no more questions, maybe we can close, Mike.

Operator

Operator (Operator)

Yes, sir, we don’t have any further s. I would now like to hand it over to the management for closing comments.

Murugavel Janakiraman — Chairman and Managing Director

So thank you very much, and appreciate your interest in Matrimony.com, and thank you for your continued support. And we look forward to stay in touch. If you have any specific s or anything, we’ll be happy to take it [Indecipherable] individually. Thanks so much.

Sushanth Pai — Chief Financial Officer

Yes. Thank you, everyone. We look forward to speaking with you in the coming days. If you have any questions, please feel free to write to us. And thank you, Sourav as well.

Murugavel Janakiraman — Chairman and Managing Director

Yes. Thank you.

Operator

[Operator Closing Remarks]