Network People Services Technologies Limited (NPST) Q4 FY23 Earnings Concall Transcript

Network People Services Technologies Limited (NSE:NPST) Q4 FY23 Earnings Concall dated May. 04, 2023.

Corporate Participants:

Deepak Thakur — Co-founder and Chief Managing Director

Unidentified Speaker —

Ashish Aggarwal — Co-founder and Jt. Managing Director

Analysts:

Priya Madhi — Kirin Advisors — Analyst

Nilesh Karani — Magnum Equity — Analyst

Keshav Prasad — BFG Fincap Private Limited — Analyst

Kaushal Kedia — Wallfort BMS — Analyst

Adithya — Individual Investor — Analyst

Deepak Poddar — Sapphire Capital — Analyst

Hemant — Suraj enterprises — Analyst

Nirav — BASFIH — Analyst

Deepika Gorda — Cogent Research — Analyst

Parag Rocky — Individual Investor — Analyst

HR Prasad — BFJ Fincap Private Limited — Analyst

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Lalit Agarwal — Krishna Agencies — Analyst

Presentation:

Operator

Ladies and gentlemen, Good day and welcome to Q4 FY ’23 Results Conference Call of Network People Services Technologies Limited hosted by Kirin Advisors. [Operator Instructions]

I now hand the conference over to Ms. Priya Madhi [Phonetic] from Kirin Advisors. Thank you and over to you, ma’am.

Priya Madhi — Kirin Advisors — Analyst

Thank you. I welcome you all on behalf of Kirin Advisors and Network People Services Technologies Limited, [Indecipherable]. From the management side, we have Mr. Deepak Thakur, Chairman and Managing Director, we have Mr. Ashish Aggarwal, Joint Managing Director. Now, I hand over the call to Mr. Deepak Thakur for the opening remarks. Over to you, sir.

Deepak Thakur — Co-founder and Chief Managing Director

Yeah, thanks. So, first of all, thank you so much for attending this call. You know, a very warm welcome to everyone. Welcome back, this is [Indecipherable]. My name is Deepak, I represent [Indecipherable], who was from there, you know, everything around what [Indecipherable] who FY ’23, the result is up and [Indecipherable]. Boy, I’m really happy to give you the result on which you have invested- your time, efforts and your belief and your trust. Thank you so much everyone for the support [Indecipherable]. Before I share the results, I will very quickly connect you to the input of why this particular reserve in Boston [Indecipherable]. And this is not just an overnight journey, but there is indeed an effort for last nine years in making this particular product and the overall take margins back on which we ride.

If you look at your organization’s vision, we always wanted to provide digital technology, every size of the organization who transacts about [Indecipherable]. With this particular division, we started building Technology Solutions, the payment, so we are still into payment, okay, so we started building payment solutions for smaller entities. And ultimately building larger products for a bank. Over the last 7-8 years, we have continuously evolved our connection. So, today, we have we have technology role to play in the India payment story, which is UPI, iPaaS, the Super app, the mobile applications around payments. So we are one of the clear-we are one of the technology partners to such entities. At the same time, we have also ensured that erosion never stops and we have continuously invested in building solutions and building new use cases and in creating new business model around the solution in payments.

So, that’s what has been our story we did make. We actually wanted to ensure that when we started about hybrids, we obviously- that’s about building digital platform for payments, and later on, how we evolve around that. So, there is always a value chain in the industry, your NPSP began with the hope of building a payment technology. And from there, how do we bridge the gap between Banking and Fintech ecosystem. So, of course we build the technology for banks where they can operate anything-solutions, such as mobile banking, iPaaS, UPI, [Indecipherable], wallet-everything. And later on, the solution, we took it the next step, little upward in value chain and started building an easier path. And through that, we were able to cater to larger market around Fintech, those who needed payment and solutions.

So, one of the biggest changes has happened in FY ’23 is our investment in FY 2021. And that investment has been around building the solution for the Fintech industry. So, in FY 23, it started pouring result and let’s see what happened in Q3 and Q4- it is the effort which we have put for last two years. So, today, also maybe last year that just one segment, one particular for us, one particular in that industry- giving us revenue. Today we have two and it will only multiply [Indecipherable]. Banking [Indecipherable], it will remain strong and, it should be you know, an innovative landscape. But at the same time for the present, what we’ve built, that will continue to add more use cases, business model and ultimately resulting in higher probability at high chances of revenue and margin.

What transpired in FY ’21, was, our efficiency [Indecipherable] IPO, we raised five. You did very well to position right in the industry and focus on only those solutions and new technology, [Indecipherable] we go very strong. And that’s what happened. ’23, again, like I said, we got the results around it. So, today, we are technology partners and at the same time, we are also a bridge between Bank and Fintech. So, these are two very strong pillars for the organization’s growth story. So, one, we call it as [Indecipherable], that is the first business and second depositors book, so Evoke [Phonetic] is our product, which is adding value to the organization. We have ensured that we keep patience and we keep consistent, you know, improvement around the product. Our focus last year was product extensions and how do we get, of course, more advanced [Indecipherable] of what we have been building.

For FY ’24, we continue our journey and in banking, we will ensure that our expansion in banking for the existing, as well as new customers. We hope that we are able to do that. And all the funnel that we have-we have created until last of FY ’23, we are able to execute well in FY ’24. So, that’s a very sound, you know, strategy around the overall technology partner relations that we have our own banking system and obviously we got to leverage everything that comes from RBI that comes from a [Indecipherable], that comes from the government of all the digital payment landscape. India slowly is there, we are going to focus and where we are going to stay put. At the very same time, for the new business that we added in Evoke, we want to ensure that we have already gotten that [Indecipherable] purchases fee. When we say horizontal, we are probably sitting [Indecipherable] products, and we want to add much more at by further, maybe around 75-80 products.

So, our service sales will multiply seven times. And at the same time, we want to ensure that our planned net multiply by at least 10 times. So that’s [Indecipherable] when it comes to the business, what we started in FY ’23 continues in FY ’24. And, in order to-absorb this, to get better share in-market to deliver as per plan, there are four areas, where the organization is going to focus. And that is, first, R&D in new technology, where we want to ensure that that is very abreast for the next 5-10 years. You know, quite a year, and we absorbed every new requirement. Second is investment in future solutions, which will start at the opportunity for FY ’25, FY ’26, we have to start growing it right away. Third, is investing in branding and marketing because only those who are associated know our story. We want to ensure that there are lots of people who know about that and that they are associated with the strong India story that we are living. At the is with me, we are willing to invest into the organization culture moving towards start the next level.

I’ll share of next-generation where we are able to attract better talent, strong mind in the organization and obviously higher the. So this is what we have done in FY’23, that this is what. In FY 24. So, so. With this. I would like to share some numbers with you, your has you know. So on the tremendous result in. FY 23 as on today, probably we are at a market cap of INR420 plus crore. When you look at the results. And you compare half yearly FY22 with half Yearly FY 23. There is 173 % growth in revenue from INR11.59 crore to INR31.79 crores. At the same time, our EBITDA has grown from nearly 2.35 crores to INR10.06 crores, which is 328% rise. Net profit has gone up from just about INR86 Lakh, to INR5.65 crores which is again five times growth, 556%. And we see the overall reserve from comparing from FY 22 to FY 23. I’m happy to I’m really-really happy to share that your revenue has gone up from INR19.45 crores to INR41.13 crores, that is what gets loans March with ongoing.

Your EBITDA has gone from 3.80 crores to about 12.38 crores, which is 225% jump, so please understand that the software. This is an invite that. That way we grow in revenue is also increases the share in margin that means your margin will also rise in percentage, not just in number. You can see that in net profit which has gone up from INR1.49 crores in FY22 to about 6.52 crores dibbleible. So this result should also give you an idea that our earning per share, which was about 2.5 rupees. Last year is now 10.09 rupees. I hope this gives you a fair idea about how our is moving up the value chain, how we are trying to focus on product extension and build-out that very [Indecipherable]. So with this. I would like to. We have to take it forward. I hope these results. Give shares to all my shareholders.

And really-really happy for trusting us and Keith. Looking-forward, we are organizers. Yeah, over to you.

Questions and Answers:

Operator

Thank you. [Operator Instructions] The first question is from the line of Nilesh Karani from Magnum Equity. Please go ahead.

Nilesh Karani — Magnum Equity — Analyst

Yeah. Hello, good afternoon. Am I audible?

Deepak Thakur — Co-founder and Chief Managing Director

Yeah, Nilesh, good afternoon. How are you?

Nilesh Karani — Magnum Equity — Analyst

All good. Yeah, so I just wanted to understand this. Basically, we did a transaction of around 6,000 crores. Yeah. Got it, so make out-of-the 6,000 crores if we if we then know transaction value, what is the revenue we are getting out of that basically have what is the percentage. I looked to same better. What would be that percentage. We are getting out of those. You won’t go elections-

Deepak Thakur — Co-founder and Chief Managing Director

So, for the entire year we would have contributed around 40 to 50% it at all.

Nilesh Karani — Magnum Equity — Analyst

What he was the steepest in. Okay, and this is from your DSP connecting area,, so basically your DSP ambitions are around 17 crores that is what I understand it, not

Deepak Thakur — Co-founder and Chief Managing Director

The CHC business should be looked at it as software be worried. What happens is the. The volume of transition should it actually talk about the utility of organizations who have filled. That said, no large without. So-so you cannot relate that number to. I mean, we don’t do not have that relation with with the P&L directly, but that number should relate to the technology spend that rewards.

Nilesh Karani — Magnum Equity — Analyst

Okay, got it, got it, got it. Well, so. So if I ask we forward basically. This move. Clearly, we’ll probably grow more faster and it would provide us more benefits. Is it that way or how is it

Deepak Thakur — Co-founder and Chief Managing Director

That’s the plan actually. So let me tell you the importance of PSP. That is when you get. We need to evolve. So the major. On the organization is the property engine. Okay, we are today, but being about almost about 8% of countries, we have one. So this was something ILUVIEN is actually a business. I would say. It is something that makes a decision around the debit as it relates to do it. Okay. When we build this engine for back. That is where taken in the back, right on the what was the Indian entity provide UPS solution ICA’s mobile package their customers.

There’ll be players technology partners. Now what we have done is we also have as capability to this particular engine and start building a certain solution, which is now. Absorbed by FinTech, where we and platform. So we are not at all merchant business, whereas we don’t acquire but we become we use that solution and we use our expertise and experience to partner with fintech, those who are acquiring merchants. So, so. Having that is our biggest. And that is what we hope is much larger corporate in coming years to be on.

Nilesh Karani — Magnum Equity — Analyst

So basically know now coming to the balance sheet. Mitigating this. This was a phenomenal transition and phenomenon just time and. So to speak and try ask to, but then the Board. And we do not renew, same run-rate or how we should be.

Deepak Thakur — Co-founder and Chief Managing Director

So. We are doing phenomenal because the industry has been phenomenal about this. So the means that will be that we start vaccines are growing. I’ll talk about NPA. You can compare the numbers which were there. Yes, because our out public in FY 21′ 22 23, what type of growth, it has growth pattern. Okay, and at the same terms and also see the number of products that we are adding to the second now Credit carried out the nineth what it is down the line is down the line, everything is coming to you that that. So for sure our numbers, let’s say, if the industry grows with. We intend to maybe 2.5 x for. So for sure, growth will continue to happen for the next four to five years, but obviously there is a and we are at growth.

Nilesh Karani — Magnum Equity — Analyst

Thank you, so much. I’ll come in the queue if. I have questions and to thank you so much.

Operator

Thank you. The next question is from the line of Keshav Prasad from BFG Fincap Private Limited. Please go ahead.

Keshav Prasad — BFG Fincap Private Limited — Analyst

Good evening, sir. First of all, congrats for good results. Well I would want. Well I would want to basically from finance background, but. I would want to move bit of knowledge regarding the technical or technological which you are providing to your to mean or revenue drivers, basically you have spoken a bit on bit about it, but. I wanted to know that they need when we speak of UPI, so what you actually a part of developing that UPI platform itself. I mean as a in terms of technology provider for the RBI US Government of India.

Priya Madhi — Kirin Advisors — Analyst

Thanks, Keshay. UPI is complete, the nuclear entire central processing engine is MCCI, okay, they are the orders, [Indecipherable], they are the IVR. We have increased, Now, UPI an interoperable system, that means one bank to other bank, is it that without even download it that back division that is the of interoperability, in order to do that every single bank should be able to connect to LPTA central things. We’ve laid out from, we made a bridge between bank and, whereas our inside the bank at its top to LTL one-side and it starts to bank for banking system on. So, we are Mollin service provider, or a technology partner combined providing this, particularly let’s say you are the [Indecipherable] here. Google Play application will Friend off on gas division you are debiting you and are you’re spending it to her ICA.

So, if my engineers in Bank, let’s say assumption, I would say, Cameron. Right, okay, because that’s the credit is in your request from Google Play going to SBI from the NCCI from NCC, when it got that. It actually thoughts to like, ad my system will then therefore backing, that this is the customer value, you have to credit there and there are thousands of rooms to go. The security uses the business tools. The financial non-financial rules, the IFRS rules is proud everything and after that information. Then my $0.02 telling for that two credit this amount for battery credits that amount and are implemented. Yes, this above average, when you said then got the message in Google Pay that this amount. I think realistically. So, we play that role in the industry. So, we have four domestic partners and by at our system focuses that for.

Keshav Prasad — BFG Fincap Private Limited — Analyst

Thank you for this answer, and basically with EVOQUE you are trying to create certain maybe app sitting on-top of this UPFI basis that is what my understanding is right.

Priya Madhi — Kirin Advisors — Analyst

So, what we have done whatever we have that as a technology partner. We have identified that in the industry, there is a need for multiple solutions are [Indecipherable] because the entire payments ecosystem, it’s license and owned by banks. And I regulated. We are not the regulatory. Okay, so what we have done we have a complete understanding of our LNG, and we have an understanding, what could basis, so we worked with Bank, rebuild API and on this Asian. We will be solution book prepaid. So earlier we were to be now we are sitting between bank debt. And we are providing solutions. I’ll explain this with an example, let’s say you are betting on, you want to purchase 1,000 rupees gallons, how many the Garland now venue of purchase on how the rupees, you have an option to pay your credit card and debit card, all the transactions.

When you play for UPI, you’re actually on a payment we issue a platform, let’s say, the payment, we as reason. This business station and that 1,000 rupees request to the banks with which they are working the bridge between that we be and that is where we come, and we are trying to bridge that gap to be more-and-more baskets will be much as people think. Today, there are let bank. So, the more we have such kind of bread, the more we have these traffics routed across multiple and that will reduce the lower on few banks and it will be more activity, more of comments would be there. Okay, so that what be estimate, yeah. The transactions if you listen to statement, it will be 3,000 crore transactions in a month that the volume mix, so we see that as a good opportunity.

Keshav Prasad — BFG Fincap Private Limited — Analyst

Okay, sir what challenges do you see as I can understand that your clients, predominantly on the bank and fintech companies. What the challenges do you see in this particular sector in this particular line-of-business for you?

Priya Madhi — Kirin Advisors — Analyst

Yeah, we see the challenge all every month, that is a bigger and because we have been able to establish ourselves amongst the opinion aggregators and we have been able to establish ourselves among the banking sectors. Alex this is what we are introducing. What is important is how well we let HD panel and the brand that we have. That’s why I said, this year we have to focus on building a strong brand, we have focused on building very strong delivery. of the organization. So, these are the challenges, delivery, strength and at the same time, we have to be ahead of the curve. Everything that has to they are launching we have yes tomorrow Siemens down the line. Someone else may come in, and if so, I should already be on EPS. So, we have to continuously evolve our product. And the very same time, the market is really huge, that all we need is a very small market-share. And if that is so we are really multiple times.

Keshav Prasad — BFG Fincap Private Limited — Analyst

Okay. Thank you so much.

Priya Madhi — Kirin Advisors — Analyst

Thank you.

Operator

Thank you. The next question is from the line of Kaushal Kedia from Wallfort BMS. Please go-ahead.

Kaushal Kedia — Wallfort BMS — Analyst

Yeah, hi, congratulations on good set of numbers. I just want to understand the business machines. Hello? Yeah. I want to understand the entire ecosystem. Actually, you’ve explained the business very beautifully, so well, they service not pleasant before your there are people villages that your software is better.

Priya Madhi — Kirin Advisors — Analyst

Let’s say Delhi revenues all technology. I mean it was lots of where it is like now, in 7-8 years, there is for every even BPH except and two are big thing, and-or maybe know you enter Mumbai. But there is a lot happening beyond this, I mean there are several product stacks to getting added which are common people will only realize more a period of time. The ongoing issues will happen on debit card. There are people who are not able to get on with it, because we do have debit cards team of Vicat NBC on moving back to our [Indecipherable]. There are people who are really, they want to process of credit card. Credit card was not just a big, so we are adding credit card. So very fast thing you, I mean years-old that’s why there is a lot of innovation and a lot of new ideas and product which is getting added every quarter or every year.

So, there is a huge scope for players like us who have been in UBS in big mix, we were part ILEC technology partners. So, it has allowed us continuously to evolve back. So, there may be new players who might be coming end-market technology, SAP, maybe just two years or maybe one year-old, but our has evolved over the last seven years, and it just talking about. 2.5 to 3 crores in a single day for a particular bank. Now, that is the ability for businesses, so there are obviously certain USP which okay. Secondly, for the side of this is something that we have as a, I don’t know if there is anyone else. But yes, one of the first-in the industry, two things about this gap at something about it. This is entirely, because we have been listening segment for last seven years, and we realize that, and we move a little bit different approach rather than building new products, there was, there are multiple such products coming in.

So, we realize that rather than being a tech partner around multiple products, latest only on and move-up the value chain. This is the decision we took two years, and that has paid the results today. So, we want to ensure that we keep moving up, so what has transpired for here. Earlier we were only bank for our customers today even to be an aggregator that cases are so that means a big. So that is good amount of funding in that segment, where the ability to pay more, the ability to innovate and more so that helps.

Kaushal Kedia — Wallfort BMS — Analyst

Okay. So, if one of the pioneers, you should have any one customer, one major national. I don’t have more bank your customers,

Priya Madhi — Kirin Advisors — Analyst

Since you’re also mentioned your processing engine is so strong, since all banks will eventually require.

Unidentified Speaker —

Sir it’s a huge system. We don’t have like customer we have six customers as of today, so banking on that into the momentum in almost the 90-bank abandoned, these are all. Secondly just naturally going to see

Priya Madhi — Kirin Advisors — Analyst

Say Swedish so Abhiram dividends and of the industry. So not doubting you will just some understanding. HDFC was with for example.

Unidentified Speaker —

Hello.

Priya Madhi — Kirin Advisors — Analyst

Yeah. I could migrate.

Unidentified Speaker —

Mind. Yeah, they work with.

Priya Madhi — Kirin Advisors — Analyst

So they are there is how. So there are dependent.

Unidentified Speaker —

Our technologies are mainly.

Priya Madhi — Kirin Advisors — Analyst

So let me take that once you have the Brazilian back it. It is therefore, a very good number of is not smaller.

Unidentified Speaker —

Understood.

Priya Madhi — Kirin Advisors — Analyst

Condition in a year or 2-K, because it when certification process, it goes to some security on the end the process to simply just about implementing that’s the certification process can go to as long as six-seven months. Only three particularly. The customization process came in much larger margins larger the cockpit. So for sure, it’s a big Pfizer’s severance opportunistic evening. So we already have a very strong and like I said that we have two titles required in the same field as looking at different opportunities around. This was our cautious division and we have them.

Unidentified Speaker —

No, that’s great. So basically, that’s the main challenge is not to get more customers, the big customers. I understand you’re already sticky with some service provider or the other. The challenge or the opportunity rather nowadays, then the customer that you’ve got the. So how to cross-sell them other products. Am I right?

Priya Madhi — Kirin Advisors — Analyst

Absolutely. So last year we launched super app for. We are not okay. So that was a big, big packs and where we invested some money from. So today it has become bike a huge marketplace for bank departments. Every single department wants their service to be part of that. The new product launches happening every month-on that platform, it is going to several. We started with what we see, we are getting we are, there are services and maybe we’ll be reaching 500 on is only going to add revenue to the.

Unidentified Speaker —

Okay, and so just hopefully as new how many banks and their number of not, not having this product right now. This was if we leave it right now. They’re not there on the ETF platform right now.

Priya Madhi — Kirin Advisors — Analyst

To be honest, there about seem 300 banks on. Larger by different models as smaller. We don’t have the tech small bank model, which is now the model so we happen. We haven’t been able to explore that at. Those are probably smaller bank, they haven’t been able to hold back and one. So, B2C right now pieces number and. Again, you did is Germany RBA and NPK approval. So unless and until you’re not true with NPK approval very your license to operate online banking, is the banking, mobile banking, you cannot have UPI as a solution in the bank. there, a lot of. We don’t know.

Unidentified Speaker —

Which are applied for it as and when they get an approval with come into approximately. Where it is.

Priya Madhi — Kirin Advisors — Analyst

All right okay, minimum talking to Deepak.

Unidentified Speaker —

Ashish, and sorry I joined the call late, Deepak. Okay, thanks a lot. Regarding things very useful. Thank you. Thank you very much better much.

Operator

Thank you. A reminder to the participants, anyone wishing to ask a question may please press star and one. The next question is from the line of Adithya, an Individual Investor. Please go-ahead.

Adithya — Individual Investor — Analyst

Hi sir, good afternoon sir.

Priya Madhi — Kirin Advisors — Analyst

Good afternoon.

Adithya — Individual Investor — Analyst

Sir, I want your commentary on the margin profile going-forward. So both numbers amazing set of numbers are moving set of margin and many congratulations on your numbers, but going-forward, how do you see your margin, because now we will get more bulk business. So will there be any pressure on our margin. When we get a bulk, the mobile business.

Priya Madhi — Kirin Advisors — Analyst

I would say that as per the industry standards, the business that we are into, as and when we progress ahead and as and when the volume your margin includes. It does not. The thing is, if the volume increases, you don’t make the margin. But for sure the margins also improved or not. So maybe if you’re at. We are organized to be less debt to decrease margin. For sure it increases. Let’s say GDV increases by. Then rather than the best it will go from 21 is to basically depending on several decisions we take around business. What we also want to take some very strong business on adding what kind of businesses, what kind of segment which are out of our reach.

Right now, so we want to innovate business, this is on, for example, NBFCs are companies in that count and NCI is doing a great job with Beijing Auto Pay. Nash will be part of yet assume that. When that happens, why not give an ability to NBFC or that really society to create the one-year EMI probably be on the app itself. Why don’t you do that? Well, they have been quite active in that when that happens. Initially, we have been in business fault rates on the product we stabilize from. So, the volume, maybe, but maybe six months, one year down the line, our margin will improve much better compared to what we have within that you not fully exited. So, such kind of decisions will happen. The business will obviously grow. Our vision is we keep adding new segments, new use cases on the fact that we have.

Adithya — Individual Investor — Analyst

Okay, okay and can you give me give you a number for this quarter?

Priya Madhi — Kirin Advisors — Analyst

What we doing with them on 31st March? Okay. When it might have where they. So it wasn’t that is opening.

Adithya — Individual Investor — Analyst

Any update on UPS? We play begin.

Priya Madhi — Kirin Advisors — Analyst

Yeah, we are working on it. I mean, if this is what. I mean, that we took in.

Adithya — Individual Investor — Analyst

Okay, okay, great, Greg and sir one position from my side, if you want I can paid or maybe you are. I mean, you have to take these. Okay, so sir, I still feel the people are trying with I’m to. People are not understanding the business correctly so. And then is there. Could be or any other accordingly, which is the next people to. Make people understand that investors and analysts understand your business more accurately. So this is my hygienic.

Priya Madhi — Kirin Advisors — Analyst

Absolutely well taken. Realistic. And like I said, I hope you join from the beginning this year there are very-very specific areas that you are there is going,. Unfortunately, branding and marketing is one of that one-off that, no. Yeah, because it’s not just from the customer perspective, but we also believe that our shareholders, our future employees and all the new areas that we target, new geographies. That is the target this particular Mr. Limbach. so. I we are pocketing Brandon. These are focus areas this year.

Adithya — Individual Investor — Analyst

Okay, great, thank you. So that’s it from my side. Thank you, just kind of one or moving towards.

Operator

Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go-ahead.

Deepak Poddar — Sapphire Capital — Analyst

Hello.

Priya Madhi — Kirin Advisors — Analyst

Yeah, hi Deepak.

Deepak Poddar — Sapphire Capital — Analyst

Thank you very much sir for the opportunity, sir. Just one question in terms of your margins. I mean. If you see, first-half versus second-half. We have seen tremendous growth in our margins. I think that’s largely driven by better volume, right. I mean. 2000 crores I mean going transaction first-half versus 4,000 that you mentioned in terms of GTV I me also if you have to. I mean build-in terms of sustainability, what sort of margins we see as a sustainable margin even if we don’t see a more. I mean, growth in transactions. This is a minimum margin that we can do given the fixed-cost rate. So any sort of range. In terms of sustainability, would be helpful.

Deepak Thakur — Co-founder and Chief Managing Director

What you’re seeing right now what we have achieved in half yearly. So okay, just to correct you, the JV volume entirely for. At hardware there was no GTV volume in. First-half, what we had we we’re still experimenting. So we actually launched this product sales. November 2021 and from then onwards. The company continues to invest in building a strong operations operation capability, strong business, understanding more price promotions. There are so many effort with per year. And only in September we probably 22, we were able to commercialize. For a good one year we kept on investing into what share would. For allowing us to do so. Now coming back to your margin question, what we’re see right now extensive sustainable number. But if your question is no technical, I can ask Ashish, take it, but I see that whatever we have right now is something that allows us to invest into new R&D new technology, new use cases. In our branding and. Ashish, do you want to add anything here.

Ashish Aggarwal — Co-founder and Jt. Managing Director

The variety of you have already covered all the points people can do you have any other questions relating to the margin, the problematic. You have that. Only UMH our Swiss. But we are only what was said that this 33% margin in the second-half. Current. That’s looks sustainable. Great. Yeah, if you’re talking about EBITDA, EBITDA. Yeah, okay.

Deepak Poddar — Sapphire Capital — Analyst

And so yeah. I have a second query on your appears. I mean. Companies like. I mean, fellow payment or companies like New York and on. So these are our peers or where do fit-in in this entire value chain. Or do they complement.

Ashish Aggarwal — Co-founder and Jt. Managing Director

So some understanding on that. So they are they can be our potential customers. But I’ll give you a very good understanding of the value chain. Regulated entities are managing payments in this. RBI allows only there but back or let’s say key license holders or no. I want to get deeper into it now. When they they had the liquid bank focus is. Loans. Deposit. Payment is just an all new Chairman, who started big customers. Okay, it is not making field from them. It’s revenue is green. The FinTech, the means that we have, okay. New banking payment that we made. For them. Do we have a strong technology between and even. All we just have a plain-vanilla whereas the these women aggregators and they have been investing into. Creating that technology.

What we did was we a balance between bank and came in by the users and we took the ownership of building this entire technology stack. So in the Sports segment. When I see. We have technology partners bags. In the. I sit on-bank. You know. and we looked at FinTech as. So in the entire value chain. We are sitting behind the bank. And just before FinTech. So you will see both banks and FinTech as our. New barrels payment payment with they are business as merchant patents. So they acquire merchants won’t be one. We neither acquire merchants, we’ll not acquire users. We just empower them to do.

Deepak Poddar — Sapphire Capital — Analyst

Okay, and the. So basically the business correspondent kind of activities. I mean. Going to kirana tools and…

Ashish Aggarwal — Co-founder and Jt. Managing Director

And they are helping the transaction market that we are not into. Fair enough. Yeah, that’s it from my side, all the way to. Thank you..

Operator

Thank you. The next question is from the line of Hemant [Phonetic] from Suraj enterprises. Please go-ahead.

Hemant — Suraj enterprises — Analyst

Hi, and now audible. Yes, yes. Congratulations for your amazing numbers. That’s the point. That’s perfect. My question is, what is the Super app you have developed?

Ashish Aggarwal — Co-founder and Jt. Managing Director

Okay, so. So the index, the so what is mobile banking volume, so. So let’s say part. And this is always 21. If we talk about our mobile app, let’s say we had about 500 services to be delivered to their customers. But all the services where they are in you don’t. EPS to the customers will be available on our mobile app, okay., you still have to go to the Asia pattern, obviously that rupee brands. Now that might have seen something. How do we evolve, technology, processes and solution Flex that the entire mid these services is now available on mobile app. So that’s the team that will affect the reading. So what we’re trying to do is we’re trying to create on application where every single department, bank let’s

Forex departments that is loan department in loan that is vehicle loan may start. Home loans or let’s say, that is R&D and fiber or the government, we coming from back every single department, are you able to place that product on one so earlier more mobile banking was restricted to services. March, we opened a beautiful department everything that one second, if the application has attraction. I won’t give you an example. If you hold the salary in ICICI Bank. You okay. And you are using Google Pay as a payment that let’s say, this is the behavior of users, right.

We will pay does not work with local content, if one does not lovely overtaking. But if you really want we are reasonably managed you will still go to ICICI Bank, we have got. So, that being what is of the banking application. Now, if this is a user behavior. Then why not give them more invite feedback on and platform and get the transaction done for users this will generate revenue for bank as well as those contracts. That’s what we Call-IT as a super app, which has an ability to provide all the band services and at the same time, it is a platform to collaborate with and bring those services to their.

Hemant — Suraj enterprises — Analyst

Okay. Okay and for how many banks, we have developed this,.

Ashish Aggarwal — Co-founder and Jt. Managing Director

Well, now it is just one. It was launched just about and also do not all of 20.

Hemant — Suraj enterprises — Analyst

Okay. Do you get any combination on the transaction done through the app?

Ashish Aggarwal — Co-founder and Jt. Managing Director

No. So perhaps is part of our technology. So this more business wherein we get paid-for every development.

Unidentified Speaker —

Okay, okay and for you said if we have developed for one bank, right. So which bank.

Ashish Aggarwal — Co-founder and Jt. Managing Director

Yeah. I got that. Okay, one is built by us.

Unidentified Speaker —

Okay and. After development, are we doing any kind of support for Super for Canara Bank

Ashish Aggarwal — Co-founder and Jt. Managing Director

Absolutely we are doing development every day-in and out. In fact, the requirement is so huge that we had to open up with one more hub in Bangalore. So until 20 one’ 22, we had one single delivery have Noida. Now that is a second one, which from Bangalore. So we will have believe have. So that is the requirement. Secondly, we have. The entire team but could be getting by. And whatever that the new opportunities, the business that we see in the application that will all come.

Unidentified Speaker —

Thank you. And what is the payment terms for that. my what is the payment terms for the Boardwalk.

Hemant — Suraj enterprises — Analyst

And what is the payment terms for that?

Deepak Thakur — Co-founder and Chief Managing Director

Sorry?

Hemant — Suraj enterprises — Analyst

What is the payment terms for the Boardwalk?

Deepak Thakur — Co-founder and Chief Managing Director

So we get paid every mandate and we get paid every magnum, depending on the nature of you know, contracts that work-in the requirement.

Hemant — Suraj enterprises — Analyst

Okay and my last question, are we trying with any other banks?

Deepak Thakur — Co-founder and Chief Managing Director

Yes, we have a funnel. Like I said earlier, FY 20 has been a lot of COVID, a lot of hunting and we have good funnel build-up. I see some results coming in next few months.

Hemant — Suraj enterprises — Analyst

Okay. Okay. Thank you so much.

Deepak Thakur — Co-founder and Chief Managing Director

Go ahead

Operator

Thank you. The next question is from the line of Nirav from BASFIH. Please go ahead.

Nirav — BASFIH — Analyst

Hi, Mr. Deepak.

Deepak Thakur — Co-founder and Chief Managing Director

Hi, Nirav [Indecipherable]

Nirav — BASFIH — Analyst

First of all, congratulations on your achievements. I’m very happy and glad. I wanted to know from your end, next one year, where do you see yourself? If you’re complete on next level, so in terms of profitability and in terms of growth?

Deepak Thakur — Co-founder and Chief Managing Director

We have a very strong you know, plan on building the organization rom this level. And that’s majorly because these bigger focus on building a newer segment in the balance sheet and being able to crack that at FY ’22. It is completely new. Okay, so the call is where there is a peak gross upward. So we already shown that this growth continues for next few years. And at the same time keep building the horizontal around it. So the plan is very strong. From level metastatic 75 services. Let us take our customer-base and aggregation of about 2025 will about 100, 150 odd.

So there is and we have to keep at least 0.5 x more than the industry growth. Simple benchmark [Indecipherable]. So if the industry grew by 200%, we have to book anymore at least 250%, so I’m just giving you an answer. It is not the actual number. I’m just giving you an idea how we think about it. At the same time, the Bangalore segment, because we have built the product, it’s all about delegates. So today, we have one last thing, it needs to do for large bank by the time we end the year and at the same time, we want to enter into medium and small bank segment as well by taking it cloud solutions, yes.

Nirav — BASFIH — Analyst

That’s right. And one more question, I wanted to ask you is, what do you think because of the financial times growing and happening in our year. All the more every day in reference to the EML and the regulations and compliances and everything?

Deepak Thakur — Co-founder and Chief Managing Director

So we have a very [Indecipherable] stick to the, you know, the roadmap this regulator at down. If you see very carefully, RBI is only promoting the digital payment at around that whatever challenges are there, it is holding it right, so that it does not affect our immediate growth story and it does not companies make-up. So, so every single decision coming from RBI [Indecipherable] on the government, we look at that as we look at it as an opportunity. So if at all there is a solution to be made around risks and impact solution is for payment we are into it. My R&D lab will ensure that we will start looking at the solutions very seriously. If there is a digital currency coming in, if CBD might have thought about already, we are certainly on. Absolutely. So it’s already in our roadmap. So what we have here, we have second product. We will ensure that we enter that segment as well. So these are all opportunities that we should be looking at.

Nirav — BASFIH — Analyst

Okay. I mean thank you so much for your explanation and your answer and. I appreciate your patience and time.

Deepak Thakur — Co-founder and Chief Managing Director

You’re welcome, Nirav. Thank you so much.

Operator

Thank you. The next question is from the line of Deepika Gorda from Cogent Research. Please go ahead.

Deepika Gorda — Cogent Research — Analyst

Hello, good evening, sir.

Deepak Thakur — Co-founder and Chief Managing Director

Good evening, Deepika. How are you?

Deepika Gorda — Cogent Research — Analyst

Well, I’m going to first of all, congratulations on good set of numbers.

Deepak Thakur — Co-founder and Chief Managing Director

Thank you.

Deepika Gorda — Cogent Research — Analyst

I wanted to ask what is our average employee cost.

Deepak Thakur — Co-founder and Chief Managing Director

Ashish, we can take that up.

Ashish Aggarwal — Co-founder and Jt. Managing Director

Yes, we are about 60 days per month. So 78 lakhs still now.

Deepika Gorda — Cogent Research — Analyst

So sales, sir, we are a service company. While we have inventories of almost 3 crores in the books for last two years.

Ashish Aggarwal — Co-founder and Jt. Managing Director

We have good amount of it’s actually a work-in progress. It’s not a physical inventory. But that this is a kind of work that we have already done, but yet to be able to our clients, being NPST.

Deepika Gorda — Cogent Research — Analyst

Okay, okay. Okay, thank you, sir.

Ashish Aggarwal — Co-founder and Jt. Managing Director

Yeah.

Operator

Thank you. The next question is from the line of Parag Rocky, an Individual Investor. Please go.

Parag Rocky — Individual Investor — Analyst

Hello.

Deepak Thakur — Co-founder and Chief Managing Director

Yes, Parag.

Parag Rocky — Individual Investor — Analyst

Hello sir, good afternoon. Congratulations on the great set of numbers.

Deepak Thakur — Co-founder and Chief Managing Director

Thank you.

Parag Rocky — Individual Investor — Analyst

Sir, my question is, how do you see UPI involving over the next few year?

Deepak Thakur — Co-founder and Chief Managing Director

UPI, let’s go. you know by the simple, you know, discussions going on regularly in the backseat. Just looking at the numbers that we have is the funding number every year, every month, okay. And listen to statements with the new RBI statement. They UPI right now, we are probably sitting at 850 odd crore of transactions every month. The status is day to day. That was 3,000 crores. It is up to organization like us to dream and think what share can be acquired. So just to get aligned with it. Secondly, when that happens, what is the scale and technology required to achieve that.

So is it going to be an impact on the technology stack. Is it going to building product solutions required to manage it? Is it going to be an investment around the security pieces, because that’s where he’s talking about there? So the investment is obviously going to be assigned for security pieces as well for the performance. All of these opened floodgates for stock is like us and keep thinking where exactly we can do that the opportunity. So that what UPI is for us. This is purely on the existing growth trend.

Now looking at the future, if you look at the growth, the entire evolution has happened on account of some foundation. We are yet to see credit card coming in and doing the wonder. The NPST is coming and doing the wonder. The NPST Ob is also coming in and doing the wonders. I don’t see the growth will be going down for inaudible] I don’t see the curve getting flattened for at least another three to four years. The innovation is going to happen. And at the Indian should be very proud, that the innovation is driven by the regulators and those who are following the regulators, and we are just a part of it, thinking how do I take my share. That’s what UPI is for.

Parag Rocky — Individual Investor — Analyst

Okay. So my next question is, sir, how UPI is going global and how it will impact us?

Deepak Thakur — Co-founder and Chief Managing Director

As an Indian, you will be very proud traveling abroad, using the same, same amount, not going to ForEx converting your currency, but next year, traveling to Singapore, you will open your NPST application, which is a Google, Facebook Pay PTSD whatever you’re using right now, you will find that you get fewer somewhere at the merchant shop in Singapore. Or the parties now QR, which is a partner QR. You just open the app, you scan and make a payment from your –Through Singapore merchant. How about that just imagine how big opportunity it opens up for Indian FinTech company. At the same time I’m taking about [Indecipherable], just imagine you want to classify from your account to open account anywhere.

We able to support cross bold actions, it will be easy doing is sitting at-home or the mobile application and sending funds to either device. Now, all this [Indecipherable] because in that division it has already been said UPI is one of the– we hope most of the products and G20 getting [Indecipherable] right now. UPI is something there, you will find UPI RuPay going with Indian government to every country that this app, that’s the price at stage. So I believe in the international market UPI is going to not just solve the problem of transaction, but it is also going to take the country ahead and in through our transaction capability with the other countries. And in return it opens the opportunity.

Parag Rocky — Individual Investor — Analyst

And sir, how to prevent money laundering in global transaction.

Deepak Thakur — Co-founder and Chief Managing Director

Again, very designed in terms of the kind of regulations required. We follow everything that comes from the regulator. So how do we prevent fraud, where to fold, you know certain transaction. Blacklisting, you know blockade, unlocking. All of that are very well-defined routines. Beyond that, we also look-forward to, you know, the circular that solution coming to us from or the regulators. We keep taking decisions. Beyond this, there are different set of FinTech, we work on the air pollution, anti-money laundering, there are solution providers for product management EFI assistance. So they are the once taking care of such side not [Indecipherable].

Parag Rocky — Individual Investor — Analyst

And, sir, one last question is, so what kind of capex will be needed for funding or future growth?

Deepak Thakur — Co-founder and Chief Managing Director

We want share that because we are very– so we have closed the EOP for FY ’24. And we have few targeted product, this is always will be. But mainly by Q2 we realize that, you know the kind of changes happening in the industry. We may have to [Indecipherable]. So for now quite difficult to share that particular [Indecipherable]. But yes, we do have like I said R&D lab and investment in new use cases is the of this year.

Parag Rocky — Individual Investor — Analyst

Okay. Yeah. Thank you sir.

Deepak Thakur — Co-founder and Chief Managing Director

You’re welcome.

Operator

Thank you. The next question is from the line of HR Prasad from BFJ Fincap Private Limited. Please go-ahead.

HR Prasad — BFJ Fincap Private Limited — Analyst

Yeah, hello sir. I just wanted to ask one more question. Sir, as I understand that going-forward UPI transactions will be increasing. But as I understand that for banks as such having these transactions, it’s mainly as a cost, it’s not providing them as a source of revenue as such for the banks. As a result, have you seen in your business you any issues in the order value is getting converted into cash or any working capital problem in terms of banks providing you the funding, or I mean, paying you for the quarter services which you are providing.

Deepak Thakur — Co-founder and Chief Managing Director

Thanks, HR. That’s a very good question. Thank you so much for bring this up for everyone. So let us understand that the entire payment ecosystem work for MBR, okay. Now there is nil India, and that is very [Indecipherable] and we have spoken to through the ministry. Also quoting there because obviously everyone are burden gas so. I will now turn the question [Indecipherable]. So what has happened there is, government has had and might be if you open your– you’ll realize that IT has already led supported by for this particular product. So there is always upfront associated with UPS from might be supportive bank on the volume of transactions [Indecipherable], one is that. We are a technology partner.

So we cater to bank. UPI is not a choice but a magnitude requirement of bank as survival. If you are not able to go wide [Indecipherable] on the any application, it’s impact does not exist. For sure, you’re going to lose all your customers. So this becomes what for back for UPI. So the second point there where UPI becomes a critical for a bank. For larger business acquisition. So whereas in business acquisition for banks that the stickiness of the customers, the savings account, the current account. So if we are not able to collect money in your current account from UPI you will not be able to use it those Q1 not be your back more people to support that you are then then that much more accounts from your bank is another matter.

If all use support there is restart [Indecipherable] will support back in their business growth. So we have to look at the other way for bank that point is important. Unless we don’t have the balance. The bank have not able to generate [Indecipherable]. So 3rd point is bearing how do you solution around reducing the cash burn-off the bank and leasing that positive on UPI. And trust me, this is where about and you will see point as a platform which we expect. So today way is up March and platform that we will find on our website and this is very interesting for fact right now where we are selling that way your look at the solution.

Now we are giving one more solutions or bad writing on this [Indecipherable]. Wherein these you’ll have a little bit create digital right at the branch level. They will be able to give recent [Indecipherable], they will be able to give budget application, QR solution, will be able to give resolution entirely on this particular platform. So this is how we suppose in banks and there are ideas and solutions, which obviously can take care of the challenges. We saw this opportunity within the product and now we are seeing customers coming in.

HR Prasad — BFJ Fincap Private Limited — Analyst

Okay. Thank you so much. Thank you.

Operator

Thank you. The next question is from the line of Dikshit Doshi from Whitestone Financial Advisors. Please go-ahead.

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Okay. Yeah. Good evening, sir. And sir, you mentioned on your press release that we had processed. H79 lakh transactions and transaction value of 6,100 crore on our API platform just for FY ’23, if you can provide those numbers just for the month of March or April the volume and the value.

Deepak Thakur — Co-founder and Chief Managing Director

We have good actually EBITDA. Yeah. March proposals billable 300 to 600 crores value, the number of around two crores [Indecipherable].

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Sorry, how much?

Deepak Thakur — Co-founder and Chief Managing Director

2 crore, 200 lakh number.

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Okay. Okay.

Deepak Thakur — Co-founder and Chief Managing Director

Number [Indecipherable], yeah.

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Okay. And one more question, sir. There was news in media, ones that certain transaction of UPI is now chargeable. But as banks are also losing, as you saying that burning money in UPI transaction and absorbing that numbers now, how do you see if in future UPI transactions also start getting charged? What is your sense? How will we be impacted? Do you think the volumes will get impacted drastically?

Deepak Thakur — Co-founder and Chief Managing Director

[Indecipherable] will be, you know, very good point for everyone to understand. Let us see the entire volume, that is B2B and B2C volume. One of the biggest reason why UPI was able to have this traction is giving that freedom to march and transact and not thinking about vacancies. Now, there are certain quarters where in the revenue, it could be much higher for [Indecipherable]. Since there is no charge in the [Indecipherable], if they understand that, there is no charge, even today. What has been released is for particular products. It all of those, but I think if you read it where it is very specific to the wallet based-and, as when the business will evolve, there is a possibility for interchanging. That’s taking up a lot of [Indecipherable]. If at all there is an offer for [Indecipherable], business will definitely evolve around BMI, the collection.

That is not going to impact the small merchant which are currently sitting on the floor, they’re not been very impacted. Even today, the value almost about 60% of is less than INR100 rupees. So those businesses are completely out of this business. I’ll come back [Indecipherable]. And the advantages are different. There will definitely be interoperable charges, but that will obviously be the [Indecipherable]. Let’s say, credit card, know that if you’re not paying for credit card, you are going to pay from [Indecipherable]. We are definitely certain to it. Certainly that the software. So, I think the answer is there, we’re in this type of — they should not get affected and it them for now. In the same, the government is supported. It is only the product coming inside the back-end where the decisions will keep coming in. We’ll still see how it moves to back-out in.

Dikshit Doshi — Whitestone Financial Advisors — Analyst

Okay, okay. Thank you.

Operator

Thank you. The next question is from the line of Lalit Agarwal from Krishna Agencies. Please go ahead.

Lalit Agarwal — Krishna Agencies — Analyst

Sir, is there any listed company, in a market, in the same business model?

Deepak Thakur — Co-founder and Chief Managing Director

Even when we were finding IP, we did not find any. I don’t see right now.

Lalit Agarwal — Krishna Agencies — Analyst

They are not into this business?

Deepak Thakur — Co-founder and Chief Managing Director

No. They are into- so I remember- ’16, ’17, when we were bidding [Indecipherable] and on, we used to think but ’til to date, I have not seen [Indecipherable]. And in focus for sure, it is much larger. Into banking fees, where we focus our core banking [Indecipherable], and secondly for us. We also play a role of system integrator. So let’s say if they submit a bid from where for system integrators from digital payments, they will partner with NTT like that, wherein we play the role of a UPI OEM and they will play the role of [Indecipherable].

Lalit Agarwal — Krishna Agencies — Analyst

Sir, one more question. I was there in the con-call with Fino [Phonetic] yesterday. They said that they have developed the UPI platform of their own. So don’t you think this is a threat for us? The [Indecipherable] is a larger company — the platform, [Indecipherable].

Deepak Thakur — Co-founder and Chief Managing Director

Exactly. The market is really huge. If you understand what is the goal for ours first, the moment you [Indecipherable], that means I think your strategy is way too different, that means, you want to [Indecipherable] business, only on EPS, I can continue with the banking business. For sure [Indecipherable] that a huge platform, which is-which is-which requires a dedicated organization to [Indecipherable]. So building a platform is fine, but maintaining that platform, the agility required, the solution required, the challenges that come in every second hour. For that, we need that focus. So if it’s making a payment has taken that decision, for sure there may be a very strong strategy. I can’t comment on that, but the market definitely continues to exist for people like it. There is a very important- it’s not a small application on indices, it is a processing requirement. It is a financial salvage when getting problems.

Lalit Agarwal — Krishna Agencies — Analyst

Sir, one more question. So attached, which company, [Indecipherable] item, sir. So what is your dividend policy, sir?

Deepak Thakur — Co-founder and Chief Managing Director

Let me be very honest. This is our first full-year results after a year. And we are still, you know, growing [Indecipherable]. We still need a huge growth strategy for the next three to four years to build a very-very strong organization. I mean, we can’t we happy with, with one [Indecipherable] sustained effort. So for us every single day is an investment for all the new features in product development, new technology, building a [Indecipherable] And we have a capability to manage that and [Indecipherable]. So the investment in culture [Phonetic], the investment in in creating that environment is also very-very critical to medicines. So for now, we have decided that we will focus on generating operating margin. And in that, for the-you know, for sending in the organized vision and work. So that’s why we are still not taken that decision on dividend. However, anything beyond access as well will add audio [Phonetic].

Ashish Aggarwal — Co-founder and Jt. Managing Director

Well, I think we already covered, we can plan in next year, but not right now. It’s a growing stage, I suggest one full-year pre-IPO and we are-there is. So I mean, the growth in this sector. They are planned for better [Indecipherable] money, for the growth of the company.

Lalit Agarwal — Krishna Agencies — Analyst

Okay, fine. Thank you, sir. Thanks a lot.

Operator

Thank you. [Operator Instructions] As there are no further questions, I now hand the conference over to Ms. Priya Madhi [Phonetic] for the closing comments.

Priya Madhi — Kirin Advisors — Analyst

Yeah, thank you. Thank you management and all the participants. Thank you and good day.

Deepak Thakur — Co-founder and Chief Managing Director

Thanks. Thanks everyone.

Ashish Aggarwal — Co-founder and Jt. Managing Director

Thanks everyone.

Operator

[Operator Closing Remarks]