Radiant Cash Management Services (NSE:RADIANTCMS) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Radiant Cash Management Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Parnaval from Antique Stock Broking. Thank you, and over to you, Mr. Parnaval. Thank you. Good morning, and welcome, to Q1 FY 'twenty seven Earnings Conference Call of Radiant Cash Management. Today, we have with us the management team of Radiant Cash Management represented by Mr.

0:50 Alexander David, full time director Mr. Venkataraman, CFO and Mr. Mukhuraman, Head Strategy and IR. With this, I hand over the call to Alexander for his opening remarks, post which we will start the Q and A session. Thank you, and over to you, sir. Thank you, Raju. Good morning everyone. Unfortunately, CMD is today little unwell, so I would be representing him today on today's call. Thank you for joining us today for Radiant's investor call. The standalone revenues for the quarter grew by 7% over the same quarter the previous year. This growth was driven by commencement of our recent large mandate with IDBI Bank. We also had healthy growth in revenues from cash van operations.

1:38 The revenue decline in e com logistics segment has been arrested and the segment reported positive growth in the current quarter. We handled cash volume of INR0.43 trillion during the quarter, a growth of about 2.3% over the same period last year. We had one of the least amount of gross cash losses in this quarter at about INR 2,000,000. We continue to have the lowest cash losses in the industry by a wide margin because of our robust risk management systems. Our standalone EBITDA margins for the quarter Q1 FY twenty twenty seven dropped to 13.5% from 15.9% in the same quarter last year.

2:24 The drop is on account of increase in our manpower costs, specifically the cost of gunmen in certain regions and increase in minimum wages in few states affected our margins for this quarter. The company has sought significant price revision with all its customers and expects the same to materialize in the current quarter. The improvement in profitability of core business hinges on three critical aspects business growth, price revision and cost optimization. We have added experienced resources from the industry to drive our business growth both from banks as well as direct clients. The recent initiatives taken at our industry level is expected to help in price revisions as well as abating the intensity of competition.

3:13 Cost optimization is an ongoing exercise. We are increasingly using technology for cost reductions and expect to see the impact in the coming quarters. Radiant valuable logistics has shown very good traction with revenues reaching Rs. 22,000,000 for the quarter. Induction of senior resources from the valuable logistics industry and signing up of a new marquee national chains has helped improve revenues at a brisk pace and the management is confident of reaching breakeven in the current quarter. Coming to our consolidated financial performance. The overall consolidated PAT has dropped to INR52 million in Q1 FY twenty twenty seven from INR57 million in the same quarter last year as the fintech subsidiary reduced its losses in this quarter.

4:05 The subsidiary is currently scaling up its sound box and QR code deployments with several rural and urban banks and improving its transaction revenues on installed based on POS machines. The team is confident of turning EBITDA positive in the current quarter and contribute meaningfully to the overall profitability of the company in the full year. Mr. Muthuraman will provide more details on Acemoney performance and future plans. We remain committed to provide transparent updates on our progress and answering any questions you may have. I would now request Mr. Muthrahan to speak about the performance of Ace Money followed by Mr. Venkatraman to speak about the financial performance and KPIs.

4:52 Thanks, Alex. Good morning, everyone. Thanks for joining this earnings call. I'll be presenting the update on Radiant Cash Money, our fintech subsidiary. As we had mentioned in our last analyst call, PIDF subsidy was discontinued in December 2025, after which the focus of Radiant S20 has been to improve its transaction revenues from the installed base of point of sale machines and business correspondence from among this network. Radiant Cash Money has also increased its thrust on deployment of sound box and QR codes for rural and urban banks, which has gained significant traction. Radiant Cash Money currently provides sound box both on outright and rental models and has target to deploy over 50,000 Soundboxes in the current financial year.

5:39 Besides transaction revenue and Soundbox deployment, Radiant Ace Money has diversified its revenue base to include establishing corporate BC network for banks, providing white label UPA solutions and extending its fintech software solutions for smaller banks and MBS. Initial traction has already been achieved for each of these businesses in Q1 FY 'twenty seven, and the management is confident of scaling them up in the current financial year. Currently, we have a network of over 20,000 BCs, cumulatively deployed over 58,000 sound boxes so far and facilitated a transaction volume of INR170 crores in Q1 FY 'twenty seven. We'll continue to provide regular updates on the progress of ACE Money to our investors as we scale greater heights in the coming months.

6:27 I would now request our CFO, Mr. Venkatraun, to present our financial performance. Thank you, Muthraun. Good morning, everyone. Thanks for joining us on this investor call today. I'll present the company's key performance indicators and financial performance for the quarter ended 06/30/2026. The retail cash management business grew at 5.5% during this quarter over same period last year, with the growth coming mainly from the IDPA mandate that commenced in this quarter. In terms of sectors, BFSI and organized retail grew at a healthy space, while railways, petroleum and e commerce segment witnessed sluggish growth in this quarter. In this quarter, we handled INR 430,000,000,000 of cash, a growth of about 2.2% over same period last year. Direct clients accounted for 18.4% of our revenues for this quarter, up from 14.3% in the same period last year.

7:19 Our gross cash losses for this quarter stood at INR 2,060,000 or 0.0005% of the total cash handled during the year. This is one of our lowest cash losses in a quarter since we went public in 2023 and also the best performance in the industry, a reflection of a strong focus on risk management and ex servicemen culture in our company. Radiant Valuable Logistics reported revenues of INR 22,100,000, reporting sequential growth of 24% in Q1 FY 'twenty seven over Q4 FY 'twenty six and is well on its way to achieve positive EBITDA in the current financial year. Coming to the financial provision, financial performance. Consolidated revenues for the quarter were INR 1,080,000,000, representing 5.8% growth over same period last year. Stand alone revenue growth of 7.05%.

8:14 The stand alone EBITDA margin for the quarter was 13.5% as against 15% in the previous quarter despite reduced losses in Radiant Valuable Logistics. Key reasons for this margin reduction was sharp increase in manpower related costs, namely employee costs, driver and government costs and service charge expenses towards cash activities. Sharp increase in minimum wages in a few states and shortage of licensed gunmen in several Southern states were driving for the higher manpower costs. The company has taken up with all its customers for price revision and expect the same to materialize in the current quarter. The consolidated EBITDA margin for the quarter improved marginally to 11.01% from 10.7% in the previous quarter due to narrowing down of losses in Radiant Cash Management. The working capital management continued to remain excellent with debtors reducing to sixty five days revenue in June 'twenty six, down from seventy days revenue in March 2026.

9:10 Cash balance continues to be healthy at INR 100,000,000 as on June thirty six, of which free cash flow is INR $644,000,000. For the remaining quarter of FY 'twenty seven, the management expects A Square and Radiant Valuable Logistics to turn profitable, improving EBITDA margins on the back of price provisions from customers and higher growth revenue of the core business. The management is actively working towards meeting each of these milestones and confident that the same will reflect the financial performance in the coming quarters. Now I hand over the floor for question and answers. Thank you. We will now begin the question and answer session. Begin We the question session.

10:12 The first question comes from the line of Ankit Kanodia with Zen. Nivesh, please go ahead. Thank you for taking my question. Sir, my first question is related to the payment. Sorry, Ankit, we lost you. Mr. Ramesh, please go ahead. Sorry, is there a question coming up, operator? Yes. Mr. Ramesh, please go ahead with your question.

11:00 Since there is no reply from the line of Mr. Ramesh, we'll come out to the next. That is Vinit Sahu, a regional investor. Please go ahead. Yes. Can you hear me? Yes, please. Yes. Rajinder, So you talked about three drivers growth and profitability. And two of them, which is business growth and cost reduction you have been talking for last six quarters without any real betterment. The third is price hike, which I think is the new one that you talked about.

11:46 So my question to you is price hike, the inflation has been there for five months, right, from March onwards. And you are dealing with a bunch of private companies. So what is taking price hikes so long? And what exactly you mean by business growth because your core business itself has grown at 1% or 2% And so can you just elaborate on this shift reverse and when, how this is going to get achieved? Yes. Thanks, Samus. This Sahu, right? Yes. The see, our contracts are typically long term contracts with the banks with no specific identified prices automatic prices escalation on an annual basis.

12:46 That's how the industry operates. In the past, there has been a steady growth in number of points that they give to us, which will accommodate the cost increases, which happens inflationary cost increases. Now in recent times, because of lack of fresh points that banks allocate to us, either because of competitive pressures or because of their change in focus. The number of points from the banks are not increasing. So that is why our focus is on improving the direct clients. So that is the reason and correspondingly in the same period, obviously, the manpower costs have increased, both regulatory as well as market driven. Regulatory in terms of minimum wages in certain states, particularly Northern states and Karnataka and market driven, particularly for the government costs. Because of that, the industry, the Cash Management Association as an industry made an appeal to Indian Bank Association and advanced levels of discussions have happened and IBA has formed a committee for looking into the price revision and promised to revert within a very short period of time. And we are expecting these negotiations to get completed in Q2 and the price revision should come through.

14:07 Regarding your so the cost reduction is an ongoing measure. If you can see that in a sense despite the well, volume of cash efficiency over a longer period of time, the volume of cash handle remains same. The number of points have increased, which means the cost of servicing those points are higher. But we have been able to contain our costs, particularly bank charges and cash executive expenses. But own employee costs because of inflation in nature has increased at about 8%, 9% every year, whereas our revenue growth has not been. So cost is fairly in our control, and we have management has taken conscious measures. Price solution, I addressed. The revenue top line growth is where we do face challenges.

14:54 Management is conscious. We have hired certain senior resources from the industry now and also increased our focus on direct clients. So today, is about 18%, up from 14%. And we believe our future growth could come largely from improvement in increasing trust in the direct clients business. So as an organization, we are infusing the sales DNA across the hierarchy, and it is definitely taking longer than what we had anticipated in the past. And so we are taking measures to address that. And we expect that the current year revenue growth should IDPA mandate has helped in this quarter's growth.

15:40 But beyond that, we have lined up a few large names and direct clients and we hope that the revenue growth will cross double digits in the current year. So you picked up a large deal last year, which should have added on INR4 crores from quarter one onwards per quarter. So if I take that INR4 crores out, our core growth is zero. So are you saying that when you grow by say double digit, let's say 1214%, it will be outside this large deal from the brand that you picked up last year? No, including this IBEI bank, we will have a double digit growth is what our expectation is for the current year.

16:27 So, if I look at our valuable growth, valuable logistics and the core, that means the core business is still growing at non IDPI and non valuable business, it's still growing at 3.4%, which is less than inflation, isn't it? That's true. So the challenge has been that the revenue from some of the banks have been declining. In some instances, the banks have stopped offering this as a service to their customers. And in other instances, alternate for smaller value points, alternate mechanisms, which are not entirely legally approved, routes are being adopted by the industry.

17:12 So we do face the long tail of smaller points moving out of the entire industry of retail cash management and moving to payments bank. So that has eroded our revenue. Like for example, we had highlighted that particular phenomenon in e com logistics segment. There are other few other segments that impact is not very large. So yes, because of this, it was a negative growth, which we are compensating through addition of direct lines. But yes, the addition of direct lines has not been at a sufficient pace to make up for this loss and still provide for a double digit growth. We have hired more senior resources from the industry and adjacent industries to help us grow this business. And we expect that the current quarter the remaining quarters of this year will help us reach this target of double digit growth in the current year.

18:14 RVL is too small to make an impact. It is still to 22,000,000 in a quarter. It is too small to make an impact. Yes, I understand. But RVL has gone from zero to say 8 crores in a year over last two years. So that's like if I take that also out, then the core business is actually negative despite inflation itself? Not negative. No, no, not negative. INR 8 crores on INR $4.30 crores is smaller than it's 2%, it's than 2%. Sure. Okay. Sir, the next question is regarding Ace Money. So they hardly had any revenue, I think, very minor one.

19:03 And the cost is, again, coming to around $8.10 crores per year. So one is, of course, you are taking breakeven, which is fine. But what exactly is the big picture here? I mean it looks too insignificant. It is a drag on our profitability. It is not really looking strategic to me if you look at the outside Radiant. Inside Radiant maybe it is, but you look at the big picture. Can you just explain a bit on Acemoney, what exactly is the big deal? Yes. Okay. So the original intent with which we did the acquisition got distracted because of the opportunity of the PIDF subsidy, which came through till December 25.

19:59 The management has gone back to the core business of expanding its network of business correspondence. So if today, we have 20,000 business correspondence. But the location where they are and the scale of economies, we are not yet able to fully leverage that network on the of our core business. We have cumulatively probably lost about INR 30 crores of annual revenue to payments bank or slightly more than that. Our expectation is that with the establishment of a BC network by Radiant Cash Money, they can provide the same services, which we lost to payments bank business. That is one part of the story.

20:46 The other part is on its own, the QR code deployment and Soundbox deployment has huge potential, and we are able to sign up with several banks and the order pipeline for the current quarter and the next quarter are fairly healthy. So that is giving us the confidence that the business will achieve breakeven in the near term. So longer term objective is that AS Money should be able to provide half of its time to fulfilling the requirements of Radiant Cash Management and the balance half will be to expand its own network of bringing providing digital banking solutions to those who have come into the banking system, but not yet into the digital banking system. So this is through smaller banks, urban and rural banks, etcetera, where bank accounts are open, but none of them have digital banking facilities.

21:47 So that is these are the two twin objectives over the long term for Ace Money. Just to add to Mr. Muthraumen, what Mr. Muthraumen said, Alex here, is the whole strategy behind Ace Money was we want to our biggest today asset as a company today is we have a network. Today, we have spread over 15,000 pin codes. That is a very difficult thing to achieve and which we have achieved over twenty one years. And today as everybody knows digitization has having a small impact on us especially in Tier one locations. So when we acquired Ace Money, the whole strategy was to use this network to enable them and to kind of show ourselves as a digital company. We can use our network, use the fintech services to provide digital banking to also then combat these BC operators, their payment banks to use the fintech to help us also get into that segment as well through and to arrest where we've been losing the business, let's say, in e com logistics. You might have seen that has now got arrested and that's steadily growing.

22:56 So that was the whole strategy behind Acemoney. It's still quite nascent, but we truly believe it is a sunrise industry and over time we will be able to see a lot of benefit from it. Thank you. Thank you. Next question comes from the line of Ankit Kanodia with ZenNivesh. Please go ahead. Am I audible? Yes, Ankit. Hi. Yes. Hi, sir. Thank you so much for taking my question. Sir, my first question is related to the payment aggregator license, which we have been trying for some time now. Any updates or any clarity on how it is progressing and by when we can expect that to start kicking in?

23:46 This is Venkat here. The payment application, we filed, albeit ask for certain clarifications and queries on this about two months back. We'll be once we'll be resubmitting the application maybe by the end of this month or in the first week of September. Once that is submitted, we expect the application we expect to get the application in hand by early next year, later by January or February 27. And we should be once it comes, we shall get for to start the our plan is to start the business at least in the next financial year because application take about four to five months' time from RBA. That was very helpful, sir. Sir, related to this only, given our synergy with this payment aggregator license and our Eight Money subsidiary, do we expect any benefit from MDR to help us sometime in the future when we start kicking in this payment aggregator work?

24:53 See, across the board, if there is an MDR on UPA, it will definitely help both Radiant as well as RCMS itself because the unit economics for cash management improves correspondingly. And also the cash volume today, INR170 crores of transactions that we have done, our yield on that will definitely improve. But still, it is a debatable point at what point of time the government will, if at all, introduce MDR on repair transactions. So, we'll know the once we know when it is being implemented and the quantum, I'll be able to tell you the exact impact. But overall, if it gets introduced, it is definitely positive for both ASWARE as well as for Radiant Cash Management.

25:45 Got it. Got it. So, the way the government is talking about it, it would be implemented only in the top 6% of the GPI transaction, which is more than INR 2,000 and where the merchant is having, think, around INR 1.5 crores revenue in a year. So do you think in that mode, we'll have good leverage here? Yes. Yes, definitely. As in the sense, this is once UPA MDR comes in, this will be seen like more another bulk, particularly the part, another mode of bulk transaction like in any FDR, ICGS, etcetera.

26:32 And because of our strong network of so today, we have about as an instance, and one fifty thousand POS machines, 20,000 BCs. So in through this network, any UTA transaction happens above 2,000, that will definitely add to bottom revenue top line. Sir, one last question, if I may. And in fact, it is not a question, it is more of a request and suggestion. Sir, we did a good declared a good dividend in Q4 FY 'twenty six. In fact, what I can see from an investor's angle, don't you think it would have been better or even now it would be better if we announce a buyback because our cash flow situation is still healthy.

27:22 And by doing a buyback, we give a signal to the market that promoters and management is finding value at this price. So any color on that or any comment on that? We will give a serious thought, Ankit. As in we have received a similar feedback from the other market participants as well. We'll give it a serious thought and bring it up for discussion at the Board in the coming Board meeting. Thank you so much, sir. All the best. Thank you. Next question comes from the line of Ramesh with SG Investments. Please go ahead. Ahead.

28:10 The person you are speaking with has The line of Mr. Ramesh has gone on hold. I'll promote the next. The next question comes from the line of Krish Shah with Fuguok Commercial. Please go ahead. Hi. Am I audible? Yes. So my question is related to the polymer side where there has been a news around that there is a new rollout of polymer sheets for the 10 or INR 20. I just want to understand as you are in the gas logistics business for years and what's your view that when will be the inflection point of the polymer nodes would be there in the market?

29:02 Because if I assume that after the demonization, there has been a lot of cash in the market. By this new polymer sheet, how it will just affect our business positive, negative, if you can share your views of this polymer sheet? Yes. See, in the retail cash management business, we are largely in the reverse cash logistics, where we pick up cash from the retail outlets to bring it. Whether it is a point or polymer notes or paper notes, it doesn't make any difference to our process or to our costs. On the CIT, that is cash flow and operations business, there could be an opportunity like when we had at the time of demonetization to replace the paper notes with polymer notes, we will definitely get more opportunity.

30:00 So that could be probably a onetime business bump because of this transition. Happens when it happens. At this point of time, we do not know clarity on when the government plans to introduce the polymer nodes. But the core business is indifferent to the nature of that currency. Got it. Understood. Understood. Just a ballpark of the this new that has been accumulating that any line that you would also know that around maybe three years, two years or incoming five years, this customer shift could be changed? No. Sorry, Alan, we don't have visibility on when the government plans to introduce.

30:48 We also read from newspapers just like you do. Thank you so much, sir. Thank you. Thank you. Next question comes from the line of Chandramoli Jagannathan, an individual investor. Please go ahead. What is the price increase that you are expecting from the bank? Mr. Jayanathan, sorry for interrupting. Cannot hear you. Can speak please? Can you speak a little louder? What is the price increase that you are expecting from the bank from the current? So okay, this it is a basically, our ask is a cumulative price increase for because this I think last price revision has happened at this level probably in 'twenty one when the new RBA norms were introduced and banks agreed on a price revision. So last four, five years, there has not been a price revision at the card rate levels.

31:51 So we do expect it to be substantial, but it will be very precluding on our part to tell that in a public forum what we are negotiating individually with banks and with the association. But it will be I think expect it to be substantial. When is it expected likely to be expected? In Q2, we expect to complete the negotiation. Effective from April, right? Effecting from July or affecting from September, October. And what is the net cash cushion at June 26? So June 26, we have free FDs of about INR 64 crores. Okay. This is the net cash portion apart from your date and date? Yes, yes. The total gross cash portion is about INR $3.18 crores.

32:49 Which INR 196 crores is cash used in cash management operations. Some of it is fixed deposits, it's landmarked as towards bank guarantee and INR 65 crores approximately of the free cash flows. Free cash. Okay. And you are talking about the breakeven in next few quarters. But if I really look at it, the top line is only about R70 dollars which has been added in the quarter one, maybe in terms of the transaction revenue. What is the breakeven level? Because I could see the implied cost itself roughly about, I don't know, 7 crores to INR 8 crores per annum. And maybe that could be other cost also. No, no. Yes, after PADF was suspended, we have taken a sharp this thing clean up and reduce the manpower cost as well And so currently, the manpower is required only to the extent where we are actually deploying the Soundbox and QR codes and for UPI white label solutions. And Fintech software solutions, anyway we have a technology team, which is doing that.

34:03 So the fixed costs have substantially come down. And so that is why in fact between Q4 and Q1, there is a narrowing down of losses. And we expect it to narrow down further take even in the month of September and for the full quarter will be in Q3. So you said that you have done a transaction value of about INR170 crores Q1. How is it shaping up, sir? How is it shaping up? At what value and maybe what is the plan over there for years to come? Yes. So the immediate next two, three quarters, a big part of our revenues will come from sound box deployment.

34:48 So we're planning 50,000 sound boxes to be deployed in the current year. So the economics is the same. We have a network presence where we can do this deployment at economical cost. So we have already lined up probably, I think, 60%, 70% of this is already currently in our order book. So we don't see a challenge in doing that. So that should cover a substantial portion of our fixed costs. And the transaction revenues will take longer to grow steadily. And our team also it is our team has to visit these merchant outlets and encourage them to do more transactions on our business, etcetera. So it will take slightly longer time to build.

35:39 And this Soundbox and QR code deployment and fintech software solutions for smaller banks and NBFCs will be the revenue driver for the remainder of this year. Transaction revenues will be more meaningful in the next financial year is what we think. So you mean to say even out of the $70,000,000 major portion comes from the Soundbox deployment. That's right. Yes. Soundbox deployment and white label UPI solutions. We also have a tie up with Hitachi for deployment of their ATM, white label ATM solutions. So those are the ones which without these are without much incremental development incremental costs.

36:28 So these will help in reducing our losses. Okay. What about the Radiant, I mean, the stand alone EBITDA that you are expecting this year, right? Because you are talking about 10% to 12% growth, including the IDBA one. What is the EBITDA that you are talking about? Of course, this will depend on the price increase also, I believe. Yes. With factoring in price increases coming in, we are expecting the full year to end at 17%, 18% EBITDA margin for the stand alone business. Including the price increase? Sorry, sorry. Yes, after factoring the price increase. The top line growth is also that is inclusive of the price increase that you are talking about?

37:22 Can you repeat? Yes. Of See, yes, we have not taken the full impact of price revision because we don't know the quantum and we don't know the other thing. Our expectation of double digit growth is largely from the core business growth points, growth and revenue growth organic. Next question comes from the line of Dia Jain with Saphyr Capital. Please go ahead. Hi, sir. Thank you for the opportunity. Please go, how do we look at FY twenty eight in terms of growth and margin?

38:11 Now that A20 revenues will start peaking in? Yes. So, the top line growth should be in the mid teens, twelve thirteen percent growth, and we are hoping to reach at a consolidated level EBITDA margins of about 19% to 20%. And do you expect the shortage of armed guards in your state to normalize on the coming quarters? No. The shortage in the sense because the prices have gone up. So with the price revision, if the banks agree to those price assumptions that we see, we should be able to meet demands.

39:08 And yes, we are working on other alternate options also competitive in nature, I cannot put this in public domain. But it's not going to be a challenge to find manpower. It is only the cost and the cost will be hopefully taken care of with the price. You saw all the best. Thanks, sir. Sorry. Next question comes from the line of Puneet Sahoo, an individual investor. Please go ahead. Yes. Can you hear me? Yes, Puneet.

39:54 Yes. So my question is that the whole industry looks like it is under severe pressure for multiple points. So can you talk a little bit about how competition I mean, one of the different participants is also under as much stress as you are. So how is the competition behaving? What kind of pricing you are seeing for last five months under negotiations and etcetera? As Alex mentioned in his initial speech, we have as an association, we have come together and appeal to the banks for price revision.

40:48 And as an association, we understand that industry as a whole is going through the pressure. So we do expect the competition to abate in the coming quarters. But irrespective of that, as in we are working towards targeting direct clients where there is no limit to who we can approach. India has this has been our thesis, two crore outlets, retail outlets are there, 50 lakh outlets could avail this service. What we are playing actually is in a very, very narrow niche and this service can be used by a much, much, much wider variety of retail outlets. So there, there is no competition who reaches first and who is able to convince them to part with their hard earned cash to us for a deposition is the challenge there.

41:39 And so longer term, that will be our focus. And in the immediate term, as I said, as an association, we have made a pitch to the banks and the feedback from the bank is also fairly positive. So we expect that competition should abate and margin should improve across the book. Yes, I understand. I was not keen on knowing in the last five months whether that you went for new tenders or re tenders, what has been the behavior of competitors? I'm not too worried about the customer giving you more money, which is perfectly fine. But how the competitor, are they kind of aggressively picking up orders or are they still working out of some deals?

42:28 Nothing noticeable change between last year and this year, Mr. Rahul. I mean, of competition is there. Actually, the industry is a little skewed. We service 42 banks, but practically only three or four players who can service PAN India. So the balance of this thing should be in favor of the industry rather than favor of the banks. But yes, as in essence, each player is acts in its own self interest and we have not seen too much we have not lost any large mandate because of pricing in the recent months. Sure. Coming to valuable logistics, any I know you had a couple of ideas when we met last time in February in January.

43:18 So how is the implementation of those initiatives? Is that number INR8 crores to INR10 crores, going to look substantially next two, three years? Yes, Mr. Sahoo. It is doing well. We have really restructured ourselves and now we have a good team also in place. Unfortunately, a little bit of volatility had happened because of the war and even the Prime had kind of told that to avoid buying gold. So that has had a major impact today in the industry. The customers have become extremely conservative in movements. But we are seeing that that is slowly changing and our teams are in the market every day. And as and when the market stabilizes, we should see a lot of positive development in the sector.

44:14 You. Next question comes from the line of Gaurav Katyal, an individual investor. I am audible. Hello. Yes. You are. Sir, I have just a single question because I I was not able to understand the. As Mister, I'm sorry for interrupting. We cannot hear you. There's a lot of disturbance in the background. Can we move to a quieter place? Okay. Is it is it audible now? Better than before. Please go ahead. I have a simple question that as compared to the data of last three years of FY 'twenty three, now we have reduced our EBITDA margins or operating margins more than 50%, which is around 10%, 11% only, was more than 52%.

45:11 So in how much time we can expect the recovery again more than 20%. So according to a different environment of business and different subsidiary and like working with banks and everything else. So how the management can expect the recovery back to 40% plus margins for operating margins? Can you give some picture on this? Yes. So the overall margins have dropped because of four counts. One is the AS money loss, which we expected to reduce and turn positive. RVL losses, which we expect to reduce and turn positive.

45:59 The manpower increases the manpower cost increases for which we have filed for we have sought price revisions. And the most important is the stagnant as in much lower top line growth. We are taking serious measures to get industry experienced persons for driving our business growth. And we are expecting that will help move to double digit top line growth. So with these four, we that's why based on these, we have given a guidance that we will we should be able to get to about 19% to 20% EBITDA margin in the next financial year. Okay. So sir, our main business our main core business is regarding cash management.

46:52 More than 85% business is our cash management only. So like you are saying that this is very stagnant growth. So is there any you see any kind of big scope there because of digital money in place and everything, digital payments are going on. So how the management expect to be having very good growth in the coming period? Or there will be any decline in this in the coming years? What is your take on this? Sir, definitely digital transactions have grown. Simultaneously, cash volumes have also grown. Currently in circulation today is at 42 lakh crores. What our thesis is that we are operating in a very, very narrow niche segments where banks offer this as a service to their customers only to their select set of customers as a premium value added service and in turn, outsources that business to us.

47:51 It need not be a premium value added service. In fact, our pricing is very competitive and in fact, extremely low compared to for a merchant compared to a credit card transaction, where they may be incurring 150 basis points or 200 basis points as charges, this will be 10, 15, 20 basis points. It's oneten of what they incur for their credit card transactions. So it is fairly the unit economics is compelling at the retail level. Just that banks are independent on banks to offer this to more and more clients is not giving us the kind of growth aspirations that we have. So we are focusing on improving our direct customers and that should help us give this growth projection that we have addressed.

48:45 Okay. Okay. And one last question regarding the RBA license, any update on that? Just now, Mr. Venkat briefed, there is a set of queries that RBA has asked, which we have engaged reputed consulting firm to help us draft the response. And we'll be giving the response by next month. And hopefully, by early 'twenty seven, we'll have the license and commence the business there. Okay. Thank you. Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of the question and answer session. I now hand the conference over to the management for closing comments.

49:39 Thank you. The performance of this quarter is muted despite some growth in revenues because of sharp increase in manpower costs for which rate revisions are under negotiation with banks. The new initiatives, RVL and Ace Money are steadily improving and will start contributing positively to the bottom line in the second half of this year. I want to express my gratitude for your continued support of Radiant. We are confident that our continuous efforts will yield promising results for all stakeholders. Thank you for your time and your interest in our company. Thank you. On behalf of Antique Stock Protein, that concludes this conference. Thank you for joining us. You may now disconnect your lines.