Computer Age Management Services Ltd

NSE:CAMS

Earnings Call Analysis

CAMS Q1 Financial Performance Surges

In Q1 FY '25, CAMS reported a robust 27% revenue growth, driven by a 35% increase in underlying asset values, reaching INR 40 trillion. This growth was bolstered by a 31% rise in non-MF revenue and a 6.3% increase in MF revenue. The company's EBITDA climbed by 36.6%, while PAT surged nearly 42%, despite absorbing annual cost increments. Strategic initiatives, like the Google Cloud partnership, are expected to enhance efficiency and business expansion. CAMS reaffirmed its commitment to achieving 20% non-MF revenue share within 3.5 years, targeting an annual growth of about 2% .

A Solid Start to FY '25

The earnings call for Computer Age Management Services Limited (CAMS) revealed a promising start to FY '25, reflecting a robust growth trajectory for the company. During the first quarter, CAMS reported an overall revenue growth of 26.8% year-on-year. This growth was led by a notable increase in assets under management (AUM), which crossed the INR 40 trillion mark, marking a staggering 35% growth compared to the previous year. Mutual fund (MF) revenue also increased by 6.3%, in line with an overall industry uptick due to rising underlying assets.

Diverse Revenue Streams

A promising aspect of CAMS' performance was its success in expanding revenues from non-mutual fund (non-MF) sources, achieving an impressive growth rate of 31%. This shift is particularly significant as it demonstrates the company's strategy to diversify its revenue streams. The increase was bolstered by strong performance in areas such as transaction revenue, which represents 40% of non-MF earnings, and applications revenue, both growing at more than 20% year-over-year.

Profitability Metrics Showcase Strength

CAMS also displayed impressive profitability metrics. The EBITDA for the quarter exceeded INR 150 crores, reflecting a growth rate of 36.6%. The EBITDA margin stood at a healthy 45.4%, only slightly down from 46.1% in the previous quarter. Net profit after tax (PAT) surged 42% year-on-year, showcasing the company's ability to manage costs effectively despite anticipated annual salary increases.

Continuation of Strategic Goals

Management reaffirmed its commitment to achieving a target of at least 20% growth in market share over the next three to four years. This target is particularly significant given the competitive landscape within the asset management industry. Future growth is expected to be driven by sustained investments in technology, including a major partnership with Google Cloud aimed at completely rebuilding the company's risk data management platform to enhance efficiency and accuracy.

Market Position and Investor Engagement

CAMS maintained a strong market position, capturing approximately 71% of the net sales in the mutual fund segment with new fund offerings achieving a collection rate of 82%. Their unique investor base expanded significantly, with a 28% year-over-year growth in unique investors, an essential metric indicating increased customer engagement. Notably, Systematic Investment Plans (SIPs) registrations nearly doubled within a year, highlighting the growing relevance of CAMS' offerings.

Challenges and Forward Guidance

Despite the impressive results, management acknowledged ongoing challenges, particularly in the insurance sector, where growth has been slower than anticipated. However, they expressed optimism about significant growth potential in non-MF services, including future contributions from the recently launched Bima Central platform, aimed at enhancing the insurance experience. The guidance for non-MF revenue growth remains robust, with expectations for continued increases above 30%.

Focus on Technology and Future Growth

CAMS' strategic investment in technology and operational capacity is indicative of its forward-looking approach to maintain competitiveness. The company plans to continue leveraging analytics and technology to enhance service offerings while focusing on expanding its footprint across diverse financial service segments. This positions CAMS well not only to sustain its current growth but also to capitalize on emerging opportunities within the industry.

Earnings Call Transcript 2025-Q1

[Operator]

Ladies and gentlemen, good day, and welcome to the Q1 FY '25 Earnings Conference Call of Computer Age Management Services Limited hosted by Orient Capital. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Ms. Shiwani Karwat from Orient Capital. Thank you, and over to you, Ms. Karwat.

[Shiwani Karwat, analyst]

Hi. Good morning, everyone. Welcome to the Q1 FY '25 Earnings Conference Call for Computer Age Management Services Limited. As mentioned today, from the management we have with us: Mr. Amit Kumar, Managing Director; Mr. Ram Sesharaman, CFO; and Mr. Anish Sawlani, Head of Investor Relations.

Before we proceed to start the call, I would like to give a small disclaimer that this conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

A detailed disclaimer has also been published in the investor presentation, which was released to the Stock Exchange. I hope everybody had a chance to go through the presentation.

I will now hand over the call to Mr. Anuj Kumar, Managing Director. Thanks, everyone, and over to you, sir.

[Anuj Kumar, executive]

Thank you, Shiwani, and good morning, everyone. I'm pleased to welcome all of you to this earnings call of CAMS. We will discuss the financial results of the first quarter. As has been the usual factors, I will take you through a structured presentation, dealing upon the highlights of the business, and then we'll hand over to Ram Sesharaman, our CFO, to talk about the financials. All of this will take about 25 to 30 minutes, leaving us with about 30 minutes to go through Q&A.

So I was the presentation on Chart #6. I trust all of you have had the opportunity to download this for yourselves. Very pleased to share with all of you another quarter of what I would call strong sustained performance from the company. Overall, revenues grew just short of 27%. You see a number of 26.8. While MF was expected to grow because all of us know that the underlying assets have risen handsomely in the past 1 year. So MF revenue grew by 6.3%. But I think the item takes the non-MF revenue, which is now firing across calenders and that grew a short of 31% at 20.7%.

As we maintain our focus on expanding the non-MF franchise, not for just the efforts made in a single business line, but across businesses, you've seen those results. And despite the fact that MF itself grew 56%, a year-on-year basis, expanded share to 13.3%. We still reaffirm our commitment to grow the scale this to at least 20% in the next 3, 3.5 years.

I believe we are on track. We'd like to grow this by about 2% at year. So about half percent every quarter. It also depends upon how far MF growth, but that's notwithstanding. I think very pleased to share the growth. All of this was done extremely efficiently. So EBITDA absolute numbers grew upwards of 36%. So revenue growth of 27%. EBITDA growth of 36.6%. EBITDA percentage at 45.4%. Now do keep in mind that this was the first quarter. Our expansion and employee cost and some other leases, et cetera, they get reset on 1st of April. So this was also the quarter traditionally where we eat a lot of that cost.

We will do that, and we still have 320 basis points up directionally in terms of EBITDA percentage year-on-year. And then PAT grew just short of 42%. So revenue up 27%, absolute EBITDA, 46.6%, PAT almost 42%. Despite eating the annual inflationary cost that happened in the first quarter, all these results have been achieved. And again, in line with an EBITDA growth almost 300 points, basis points plus growth in PAT at 330 basis points.

So all of this is just a compelling story of what's happened in the company in the quarter, and that this has taken some time and a lot of effort in the making, but very pleased to kind of share the compressed support with you.

And flip on the next to Chart #7. You know that we crossed the INR 40 trillion or INR 40 lakh crore milestone. This is an absolute AUM if I just take quarter-to-quarter, that's about a 35% growth. It's also a staggering 55%-plus growth in equity AUM. You know that traditionally, these numbers are in the 18% to 20% range, a very good year could be 25%. So we are talking about significant scale on top of the base.

Our market share in equity assets, I think, is very heartening. And again, like I keep saying, if there's 1 foundation take the market, you want to see, this is the metric, reached 66% in the quarter, ahead of what it was about a year back, 65%. So that's a significant leg up in terms of that number. We'll be over liquidity market share.

Equity net inflows, if you see cross INR 90,000 crore in the quarter, this was 70% of industry equity inflows. And of the INR 1,000 lakh crores, this was INR 90,000 crores, so a strong number. Within this new fund offerings, we were at a staggering 82% collection. So this is a number upwards of INR 5,000 crores, upwards of 82% collection and just vindicates the overall direction in terms of the market share and market growth.

On SIPs, which are, again, a foundational metric, we've grown to almost 90 lakh plus SIPs registered during the quarter. You know that this number was in the 40 to 50 lakh range, later grew to 60. But 1 year back, it was about half the number. So we've grown almost 100% in SIP.

Like we've said in the past, it still does not include any momentum, which could be built out by micro SIPs of these follow-ons, which may get some broad blessing at the regulatory and industry level in the coming days.

You would have seen that we also announced a strategic partnership with Google Cloud. This is to rebuild our RDM platform ground up. We've seen perhaps some of the PR or exchange releases, to on Linden, et cetera, and our upside. And we are planning to completely build a brand new system.

It will be very, very accretive from an efficiency perspective, accuracy, freedom from risk, all of that. But it also creates a very interesting possibility of business expansion. The current platform, as you know, some beta sold. So we build this, of course, it will take time, but I'm very excited personally and very close to the project just to drive this what could perhaps be working the things I would have done in the past.

If you see beyond mutual funds, CAMS, I think, is a compelling story, a compelling story. Have posted over 100% revenue growth, never easy to do that in any set of circumstances. And I think 2 engines start of propelling this. One is just natively MS. Natively MS have almost doubled the account of new investors coming in.

And as that happens, the care is CMO business. And the other thing is like we've said in the last 1.5 years that we've started getting into servicing brokerages, depository participants, at least those 2 segments. That's perhaps still between 10% to 15% of our revenue contribution. So hasn't really been the prime mover, is one of the 2 prime movers, but as we scale outside of the MF capability and franchise in the, I think, I believe there's still a steam to grow like this for some more time than we patents this year.

On the -- so that's a very heartening story. On the alternative side, we reported a total of 36 wells. We got our first overseas fund, largely bond. People who would like to work with CAMS will figure out. So this is one of those where iportal are flat to a contract, which has now got signed.

On CAMS space, we posted a 44% revenue growth, again, led by the expanding count of SIPs, but also led by all the other stuff that CAMS space has done. I think a very, very happy 44% growth. We've emerged as one of the top players in the country in BFSI for UPI Autopay.

Now that again position happened because we were the first to craft an offering for MS and us to scale it. And then we continue to take it to other places inside the boat segment. Very pleased to share that with you.

On RAP, we had a great quarter. I still would not say that you should read a lot of revenue or profit contribution from insurance coming in yet. I think that all the market-led activities or things start with Malibu. For the first time ever, we opened 1 million electronic accounts for insurance, added 1 million policies.

Our traditional under your to be about 0.5 million a year back. About a Quarter 2 back, we scaled this to about 7.8 lakhs for the quarter, but hitting over $1 million, seeking to do the same hitting. This quarter, BemaCentral has gone live. 4,000-plus downloads, almost 150,000 unique active users coming with various requests to be performed both on the insurance account actually along the insurance account because from an insurer perspective, we have a small number integrated.

As we scale this from now on to issue us to about 7 to 8 by the end of the year. I think Bima Central should see significant scale up and acceptance. Some of these transactions, et cetera, will be revenue accretive the policies are. So it's insurance is still slower than what I would have thought. But again, at the base level, very good work happening debt.

The count aggregator, I think another great emerging story what gives me a lot of happiness to share with you that we've expanded from 2 years ago, I reported a 2% to 3% market share. Last quarter, we would have spoken about the 13%, 15% market share. Customers get a ecosystem continues to scale across offerings, including in the analytics led Amaze offering, which is largely the personal finance management and then any use cases.

Revenue is still in the range of INR 1 crores to INR 2 crores a quarter, so not a very significant number. But I think from a percentage growth perspective, does please me that's on the right track and doing well. So as you can see, as I said, look at this as multiple cylinders firing. Core MS grew at about 26% revenue. KRA at 100%, in excess of 40%. Account aggregator, we're not reporting percentage revenue percentage growth will be upwards 100% of a small base.

And this still then leaves insurance to kind of add to the city. Right now, there's not a lot of lift in the insurance business act. It will happen, let's say within this year. So very, very positive on the non-MF portfolio. We've said earlier that we'd like to scale MF 15, nonoral, 31%. And I think for a quarter or 2, we could expect mid- to high 20s, maybe up to 30% growth from nonaero.

So those data is seen I'm not going to spend a lot of time on this. I think one thing I'd certainly like to call is there are significant high win transaction volumes, which is, obviously, from an allowance perspective, very good for us.

From a readiness perspective, both staff, offices, PCP, data centers, processing capacity. We've made the investments. We continue to make the investments. You're seeing almost a 50% growth in transaction volumes year-on-year, which talks about by itself talks about retailization because it's grown faster than assets have grown.

Core other numbers I've spoken about, I think team like to call is that from a unique investor growth perspective. I call it a foundational market metric because more unique investors, you get in, more of the chance register the first as happy the next and the next. Money, we did very well, 28% growth versus 20% of the industry overall.

I think a part of that net sales, the fact that we're holding share at 71%, NFO, we were at 82%. Overall, ecute we expanded share, all of those are just good metrics to have an offer over the next. And I think it's the stuff you just schedule this. I'll talk about the indomitable business. All alternatives on the back of healthy filings, both GAM, alternatives and filter.

New client acquisition, almost 36 new clients. This is a mix of people who want to do AI or thus Otis, the onboarding platform, which is well served and wealth truck, essentially more of those offerings. Have all skilled I spoke about the first overseas funded ministration contract in gift.

Fintuple's platform is doing well. It is already active with 1 of the large banks. The other banks are now. So the card sector banks are explicit impressed to broaden this out and to adopt the same offering. So very hopeful of signing a couple of new contracts with Fintuple.

They've also built an offering for pension fund managers and POP, largely from an onboarding perspective. And again, we're expecting to sign the first order shortly. Just keep your eyes close to this detail. But again, very pleased with the way the team scale of that business.

Over the next. On KRA, I think I've spoken 100% revenue growth finally can happen in subsequent quarters or Q-on-Q. Continue to sell. I think one of the things, which is good and which will add have over a period of time that the fins are coming in large numbers to do business with us.

Just broadly, I would say, it's not just a CAMS. It's accounts are, payment, account aggregator at least those 3. And then we've now blended the onboarding journey, powering it through things quickly. So I think that's become a compelling solution. 18 million plus about INR 1.8 crores just short of INR 2 crores unique tonnes. We're expecting to cross that sometime in the calendar year.

On RAP, I did share with you that we crossed for the first time ever in our history, 1 million electronic accounts, 1 million new policies. We still haven't done a lot of marketing from a Bima Central perspective or an E&A perspective. So this has gone well. We are reporting a market share. This is kind of over between 35% to 40% as you know.

Our traditional base was getting 0.5 million new policies. That's up to 1 million. We've done about short-rate last policies in the last quarter, expecting to -- that we'll be able to hold this method. Also what was very heartly was that one of the leading life insurers just migrated the entire in-force policy book to cancel. These are those insurers who instead of going to their customers one by one by one and inducing them to open EIA. We just shake hands at and say, why don't you open an AIF for everyone, and then they move the entire policy base.

So obviously, those kind of deals we like to do. This one was unique that the entire in-force policy base has come to us. So it does impact market share and the healthy attractiveness of the product. Several other contracts were added. And I think Bima Central is now active, which means it has like I said, 40,000 app downloads, almost 7,000 people coming to do transactions.

Although the number of integrations, it's still small as we expand integration, it will still take place in the October, November, December time frame. It takes some time to do the integration. So we are expecting a significant leg up in terms of number of connections that we do now. Move to the next.

On payments, like I said, it's the product offerings are fortified quite well. We spoke about payment aggregation being a core business, adding paper to gave way to that. And like we've said, in a niche manner, trying to open the education segment as another addition to in BFC. Of course, we will await confined to scale and profitable niche in the payments business.

The revenue up 44% annually. Very heartening at 21% quarter-on-quarter. I think digital payments and UPI in particular, scaled very well. UPI is also becoming -- the AutoPay, popular instrument for payments of SIPs and regular insurance event payment. So that part is done by. I think across the board, we continue to add clients, like I said, fintechs, non-fintech, housing France companies, all of that.

And you will remember in Feb-March, we had announced the deal with IC for authentication services. This is something that we are on doing, and this has gone live and will continue to scale over the times to come. So payment, I think, just got the act right in terms of basic work. And while our stated position is to grow not have upward of 20%, I think there is a possibility to continue growing at least for the rest of both and in the rate that we have reported and they could continue to fuel anonymous growth in the year.

Next. On sensor, again, very pleased to share with you that we continue to add FIU users. We, of course, on the F&O segment for the first to start the use case. But across people wanting to do the personal finance management use case, both RIAs and now you will see mutual funds.

So our first couple of deals are actually signed with large mutual funds. You will see active participation from them in showing your portfolios on the website, so in some aged product comparison. Post 16% market share of customers have successfully linked to the ecosystem. And then the data deliveries across now 500,000 lakh per day is almost 1.5 lakh.

And on the bank statement analyzer platform, we continue to scale up with new signings, largely NBFCs right now people in the lending case. Revenue growth looks at a spirit on a very small base. We would like to have similar numbers as we scale. So we will talk about revenues, I think starting next quarter in a more meaningful way, but very happy with them.

NPS, I think, has been a slower portfolio for us. We got our first corporate client, by the way. So we got the first corporate client and got several thousand corporate subscribers at that added to the numbers. We're also now becoming -- just given the style of offering and the automation becoming more popular with the BOPs, supplied against the noncorporate business, the retail business from the POPs.

And of course, onboarding fintech. So we reported -- continued port position in NPS at just under 7% market share. So that part is looking okay. Slower than what we thought, but happy with the progress.

360 has -- as you see, we penetrated LIC through payments. Now think has been enabled as a fintech enabler. We launched a protocol 360, which is the data analytics, the market-led data electric platform for mutual funds. We won the first mandate. We continue to scale the PSPs plus part of account aggregators was in sole banking.

So the GST analyzer, the bank segment analysis and the person as far as on all these 3 use cases are built by them. And then quick continues to expand. You know that we are operational with some of the largest space bank. So we continue to expand both planting and PFC client in Quick ID is now becoming the standard kind of front-end module for all the ICs that we do across the group. Next.

So I will pause here and again, just reiterate that M&C satisfying for me and for us as management team to bring forth these kind of results. Like I said, this is segment after segment after segment, which has performed. Of course, it's taken us more than 3 years to get here. We made the investments and things like account aggregator and things like Bima Central and started building the payment gateway platform, emcentral, those kind of things and NPS.

We started in all honestness back in '20, '21, '22 over time when we were scaling cost and scaling investments. But today, we have sales teams very, very comparable and sometimes better products. A lot of the better products than fintech competition, which means there's Glaser, the journeys are smarter. The buyer just prefers us over others, not just in the traditional MI or flat segment, but in several of the newer segments.

And we also believe that riding on tech product superiority, all of the controls posture, any technological for us of the group that we can continue sharing similar numbers with you, of course, MF did support throughout the very large -- both the revenue growth and the AUM growth, but very satisfying for us as the barite team to share these results with you.

I'll pause here and kind of have this over to Ram Sesharaman. He'll speak to you about the financials.

[Sesha Ramcharan, executive]

Thank you, Anuj. Let's just take 5 minutes to go through the broad numbers. So most of it will be a reiteration of what and said in the earlier slides in terms of growth and profitability.

Our revenue grew 27% year-on-year, almost. It was on the back of the growth of the assets. That is, as you would have seen, has hit the INR 40 trillion for the first INR 40 crores. So on the back of growth -- that is almost 35% year-on-year, we grew the revenue of 27%. On a quarter-on-quarter basis, the revenue growth was 6.7%. The assets actually grew in tandem with that.

So it's almost a INR 70 crore revenue increase on a comparable year-on-year basis. And most of it is coming from the asset growth, which is the mutual fund revenue. And on a quarter-on-quarter basis, we grew by 7%, which is almost INR 21 crore increase in revenue.

The asset-based revenue again, mostly in tandem with the growth in assets that you saw, grew 27% year-on-year. INR 242 crores is the number and 7.7% quarter-on-quarter. Again, the quarter-on-quarter number is almost in line with the growth in assets, and we see that the yields, which is -- which we have guided earlier, would stabilize over a period of the last few quarters.

You've seen that play out actually, and the leads have been largely stable with the quarter-on-quarter depletion being less than 1%, right? 0.7% deflation yields. And we also had said that there's not going to be a disproportionate reduction in price or price discounts. And kind of the last few quarters have been in line with what we have guided.

And of course, the equity mix is helping us in terms of the yields not repeating and being stable because the equity mix currently is a case of 53%, which is kind of helping us in overall mix perspective.

The non-asset-based revenue grew by 24%, almost year-on-year, which is largely driven by increase in transaction revenue. Transaction revenue is almost 40% of the non-MPS revenue. Both transaction revenue and our application revenue and our content revenue, all of it grew more than 20%. In fact, the transaction revenue grew more than 30% and constant grew more than 30%.

So all that is contributing to a healthy growth of 23.4% on a non-asset-based revenue. The non-MF revenue, Anuj is mentioning that the heartening part of the entire which is non-MS revenue growth is outpacing that of the mutual funds for the second consecutive quarter. So the art revenue grew by 31% year-on-year, driven largely by a very impressive growth that we are seeing in both pay as well as in KRA.

The AF and revenue growth is a little muted, but you've heard the plans that we have for both, especially with the rest with the Bima going live only in April and more and more integration is happening. We expect that the revenue growth will be more substantial going forward.

Our overall as a non-MF bucket, we grew impressively to almost 31% year-on-year, which is higher than what we grew from a mutual fund perspective. So from a revenue perspective, order growth we are seeing, very satisfactory quarter, excellent quarter in terms of growth of numbers in both MF and non-MF segment.

If you come to the profitability, excellent quarter in terms of profitability. We had -- we have completed the quarter with a INR 150-plus crores EBITDA for the first time, which is a 45.4% quarter. You will also understand that April is the time when most of the company goes through its annual salary agreement.

Traditionally, the impact of the increment has been upwards of 2 percentage of revenue. So even eating that cost, we are able to kind of come to an operating EBITDA of 45.4 percentage, which come back with the 46.1% in the last quarter. So what generally is a 200 basis point drop is that only 0.7 percentage drop in operating EBITDA. It's kind of highlighting the cost competency as well as operating in that we can enjoy in the business.

So overall, a very good performance from an operating EBITDA perspective. In line with that, the PBT is at INR 134 crores, 41% year-on-year and PAT has gone almost 42% year-on-year with a healthy rate of 32 percentage in terms of margins.

So overall, internal network is again continues to be very impressive at 44.4 percentage, and we ended the quarter with a cash and cash equivalent of INR 718 crores. The INR 718 crores is before the disposal of the final dividend, which is INR 81 crores we done in the last month, very healthy cash and cash equivalent closing or [indiscernible]. And the Board was pleased to declare an interim dividend of 11 per share in its last meeting.

So from a profitability perspective, would -- in fact, on an incremental basis, the EBITDA grew almost 58% of incremental revenue as an incremental cost. So we had a tight leash on the cost, too, given that this salary increment is almost more than 2% of the revenue, we have managed to retain the cost reasonable levels and the margins at a very nice level for the current quarter.

The remaining comparative trends are given in the presentation for you to have a look. We've all seen an increase in the trend in terms of profitability, in terms of growth, in terms of PBT and PAT. All responding to a good year coming forward given that, that is continuing to go.

With this, I kind of conclude this financial part of the presentation and hand it back to the moderator and open it up for any questions.

[Operator]

[Operator Instructions] The first question is from the line of Prayesh Jain from Motilal Oswal.

[Prayesh Jain, analyst]

Congrats on the numbers. Sir, firstly, on this, the cloud thing that you are implementing, what are the kind of costs that will be involved? What will be the time line period and -- so this is basically the entire RTA platform that you are moving to cloud. So what -- so are the customers on board with this?

[Sesha Ramcharan, executive]

So Prayesh, the growth is a multiyear project. It's a reengineering of the entire platform to make it future ready. It's the architecture of the platform. It's expected to be a longer project. The entire project would get completed in 4 to 5 years. However, there's a module-based approach that we are taking, which means that we've not wait for the entire 5 years to go live with the entire platform. It will be a staggard phase-wise implementation that we are doing, which will also give us enough time for us to test it out.

Yes, the customers have been communicated and they are largely on board. We have communicated to all the stakeholders. However, this is something that will take some time to be implemented. Even the first model will go like probably only a year from now, and the entire thing would take 4 to 5 years. As you know, there's a very complex architecture project. And we are very cognizant of the fact that it needs to be future ready.

From a cost perspective, we have done the numbers and we do not expect the significant on a net basis post the reductions that we get from the existing resources that they are deploying from an IT perspective. We do not expect, at any point of time, the impact on margin to be more than 0.5%.

It could be higher in the initial 1 or 2 years closer to 0.5%. But going forward, because of the rationalization that is going to happen on the various resources that we are using for this platform, we expect that from the fourth of this year, this will become, in fact, very positive to us from an overall margin perspective.

And even in the interim, I know it is not going to be a significant impact at most in a given year, you could have a 0.5% impact on profitability. Those are the numbers that we have worked on. We are confident of kind of leading up to those numbers.

[Prayesh Jain, analyst]

Got that. Secondly, on just a very basic question. With the markets correcting the way they are today, possibly NFC further correction, it is moved back, right? The telescopic structure, the levels, you get a higher reset, right?

[Anuj Kumar, executive]

That's correct, Prayesh. Although it gives us no joy that the fee is going up. But yes, on lower assets, we charge higher just like our high assets, which are slightly lower.

[Prayesh Jain, analyst]

Okay, okay. And from an expense perspective, how do we see this year panning out the employee cost that has come -- should we maintain that kind of run rate? And also on the OpEx, if I look, the run rate has gone up significantly from -- as compared to last 3 or 4 quarters, been moving higher. How should we look at it? And where is the bulk of it going the incremental OpEx where is it going?

[Sesha Ramcharan, executive]

So I'll just break it up into 2, which is the employee cost and then the operating expenses and other expenses. From an employee cost perspective, as we mentioned in the earlier part of the presentation that this is the quarter in which you see the employee cost going up to cost price.

Overall, year-on-year, it's gone up by almost INR 18 crores, if I'm not mistaken, out of which most of it is -- how much INR 8 crores of it is because of the increment that came. And part of it is because of hiring that we have done. We have mentioned a lot on talent. There's a fuel program where we've invested by getting in people from IM, IT almost 45 people out there.

They're new gen leaders who are going to take this company to the next level. So we continue to invest in talent. However, from a run rate perspective, if you were to kind of model it in, I would say the current base cost will hold good. That could be an increment of probably a couple of crores coming in the current quarter because of some part of the management gets this increment effective from July.

But apart from that, we expect that the employee cost would not go up significantly for the rest of the year. It will be the base that you could go up. If at all, there is an increase that happens, it will be largely driven by some investment in talent, which I think we have got on board in the early part of the year.

So any a couple of crores increase because of the usual increase in manpower over the next quarter, I don't think there can be significant increase towards the base cost, what we are seeing in the first quarter.

The other part of it, yes, there have been -- you would see that almost like all put INR 10, INR 11 crores of increase of expenses. I think INR 12 crores of increase in expenses year-on-year happened on operating and other expenses. See part of it is driven by the variable part of the cost.

For example, you see the CAMS space growing 40%. And most of the variable costs are incurred, which is what we paid to the sponsor bank for charges, et cetera, that will go on economy. Similarly, there is this data entry cost, which goes up because there is a higher cost from an info and forms perspective.

And we have all our businesses barring MF is on the cloud. So this is an entirely cloud-based model, OpEx space model we have for our pay business, for our rep business, for our account aggregator, ESP, CRA, everything is unproven. So there will be some proportional increase that happened.

The only comfort I will give you is that generally, our variable cost is operating expense including the OP. And if you see out of the INR 8.5 crores increase, almost INR 3 crores in OP expense, it's not a corresponding revenue line item.

Keeping that aside, our growth in operating expenses is generally tactic on -- generally correlates with their revenue very even. It's around 7% to 8% of revenue is my operating expense. And that relationship has been that in this quarter too. So we don't see any proposal increase that.

The absolute number, yes, you will see it going up because of the yearly increase on these particular verticals that I spoke about, which is the cloud-based verticals as well as the FFO as well as the expenses that pertain to CAMSPay.

Apart from that, it's largely in line with the overall trend that we are seeing. The fixed expenses, yes, this time, there was a few crores -- I think more than INR 3 crores of increase on a quarter-on-quarter basis -- sorry, on a year-on-year basis. Mainly, this was also the year in which month in which we kind of do some leases renewal. We do increase the insurance claim, insurance facility for our employees, and some such travel, et cetera, or CSR expenses. So that's seen this increase.

Broadly, I do not expect this base to be altered drastically in the coming months. The 12%, including OP and 7% to 8% other than OP correlation with the revenue will exist for the operating expenses. And the fixed excess barring some 5% increase here and there, I don't think the basis point to change cash.

[Anuj Kumar, executive]

Sorry, the only thing I would add to this is that just remember that we are also in a very competitive talent market. In that competitive talent market, this year, we chose to give rightsized increment to what we've done because it's a workforce, which has several options.

And like Ram Sesharaman said, we are now in our quest to modernize and transform the company. We're getting top-tier talent from the -- from the IMs, we are now for the rearticture program, we've hired doctors, people who applied for patents to those set of profiles coming from an initiative science and.

All of that is foundational because when you get people of that kind, you can -- I mean the 1 man will do 5 people work, but you have to pay them the money. So the expansion in labor cost, I think, was well anticipated. It was in preparation for the future. The good thing is that all of that has happened in the first quarter. A lot of it has happened in the first quarter. I wouldn't say all, but maybe about 70%, 75% of that expansion is already in the books.

So you're seeing the results post that. The productivity from this workforce, the failings in the market and the wins, et cetera, will follow. But I think it's just fanatically the right thing for us to do because what we've done.

[Operator]

The next question is from the line of Abhijeet Sakhare from Kotak Securities.

[Abhijeet Sakhare, analyst]

And you mentioned about your excitement around the new business opportunities. This new platform can create. So if you can elaborate on that, please? And a related question is that, generally, we view the RT business as a business model, which has fairly stable fixed cost but with Google coming onboard, does it significantly variabalize your cost? And how does that -- what does that mean in terms of you charge to your clients and how clients also look at your profit margins? That's the first question.

[Anuj Kumar, executive]

So on the first part, I think of very interesting possibilities emerging from the platform rebuild because, like I said, the current platform is a few decades old. Our ability to bring in components of taxation, charges, currency, data management, acquiring the data, insights and the portal will become significantly superior.

Why would have it become significantly superior because today for everything, I have to create a server bank in-house. And then on these things, I may have the pod for a day or 2 or 3 every month, but I still have to build it, and it still cannot match the finesse and the scale of what you can do on the cloud.

So one is just the heft offered by the cloud from a computing scalability perspective. And if we need temporary capability, that can be easily bought for a few days or weeks or a month. But the second is given the fact that we are rebuilding and reimagining everything from ground up, I think a lot of components that we had bolted on from outside.

So think of what's our communication, for example, you got to board it from outside. But if you're natively building a platform, all of this can be just part of the base, which is how we are thinking of it at the margin. So that's point number one.

Point number two, at the levels of scale that we are seeing, so 8 years back, when I joined the company, we used to register 3 lakh sites. In a month, we registered 30 lakh cities, and I don't know whether this will scale 3 or 5 times. So some time, just given the volumes and the retailization, you've seen that the transactions are growing ahead of assets.

That is 1 metric of utilization. We want the capacity model, which can scale up as we need. And beyond the point, building your own data sciences and scaling your own data centers is a job that most people have stopped doing globally, right? It's a specialized job, you either go into a full-load data center built by a global major or you just think of cloud computing.

We've been at the colo centers for the last 5 years. We've decided to now go into the cloud stance like Ram Sesharaman said, we have a business, although you can argue this all, and none of them is even 5% the size of the mutual fund business. But uniformly across payments, insurance, CRA, account aggregator, MF Central, all of them are on the cloud. So we have a bit of experience in the group.

Does this change anything as far as the charging model is concerned? The answer is no. Because the charging models are either predicated on our operating model nor on the model of the cost. So from a slightly CapEx-heavy model, this will mark into a more OpEx kind of model.

Over the coming years, but I think as far as the marketplace is concerned, their belief and agreement is that we will be significantly more efficient, faster, more contemporary and modern and our capability to both ingest technology and deliver outcomes consistent with that.

So like I said, when you bring a set of IT graduates, postgraduates and doctors who have applied for patents. It's our desire that we will deepen that effort, right? So to assure in that era into our operations, obviously, we had to something different, which is what we are doing.

I don't think from a marketplace perspective, this is going to materially alter the charging capability on the start.

[Sesha Ramcharan, executive]

Just to add, Abhijeet, infinity we spent a lot of time on the drying word with this strategy. If anything, I think it gives us some flexibility on cost management, right, in terms of making this cost variable. So I think we have what it takes to kind of monitor that on a continuous basis. Obviously, cloud is a different animal altogether.

So I think from a cost perspective, we do have -- we will at least get flexibility on managing the cost as we go forward.

[Abhijeet Sakhare, analyst]

The second one is on the alternatives. Just wanted to get some sense how is that market evolving in terms of pricing? If you could with some examples around the large deals that you've done, whether these are the projects, level of pricing or license type of deals or there are some AUM-linked pricing, if you could explain that will be very helpful.

[Sesha Ramcharan, executive]

So the pricing, see if you do have a close-ended fund and given the number of investors is not going to be more than 1,000 at any point of time. The preference for the market, and I know you're hearing a different thing from the competition, but the preference for the market very clearly has been to do this pricing based on a number of investors, right?

Barring open-ended funds or Cap III funds. So where there could be upside in the terms of assets under management. We see a marked preference, in fact, a condition that the pricing would be determined by the number of customers. So that these that are being closed, are slab-based but the slab is not determined by the assets under management, but driven by the number of customers onboarded.

Let's, for example, 0 to 100 could have a INR 8,000, INR 10,000 or 1 lakh per fund. So it is always per fund customer-based generally, our customer base kind of pricing that we are seeing in the market. And that's been the trend in the last few quarters, in fact, more than a year, for sure. And we don't see the fund managers being open to some other pricing module for such kind of funds. That's the experience that we have had in this sector.

[Operator]

The next question is from the line of Devesh Agarwal from IIFL Securities.

[Devesh Agarwal, analyst]

Congratulations on a great set of numbers. I just wanted to dwell a little bit more on the non-MF business and continuing with the alternate question. So as you also acknowledged that this quarter, the growth was slightly subdued. So just wanted to understand, are there any onetime implementation fees that we generally have and that can lead to quarter-on-quarter volatility? That is one.

Second is basis your revenue model where you said it will be on the number of investors. Do you get any benefit if additional capital is drawn from the existing set of clients? And lastly, what is the expected growth for this particular segment that you think you can achieve?

[Sesha Ramcharan, executive]

So Devesh, I'll try and answer your question, if I do please to alert me. See, on the yes, obviously we -- from a growth perspective, it's a decent growth year-on-year. We didn't get to 12% to 13% growth, but probably we would have liked it to be a few percentage points more than that.

The nature of the industry, and we have been saying this. This is a still kind of an industry, right, which is that the funds unlike a mutual fund will have a life and the life will end and the fund will shut right and then we'll have to be replenished. We'll have to replenished and we'll have to grow 20% more than that.

So the dynamics are a little different when compared to MF in this particular industry. And so there will be some period in between where you will see our funds shutting down in terms of their life being not shutting down in their life being over and liquidated and the new funds coming in, that is the lag between the two.

So this will play out for some time. And we do not see this drastically reversing in the next few quarters, too. So that's the outlook. The outlook is that we will try and kind of optimize the growth, but I don't think we will see a 25% growth in for the next couple of quarters for sure, we will kind of maximize it and get it as close to 15% to 20% as we can. So that's the end over internally at least.

From a billing perspective, we do not barring the few funds and less than 20% of our funds are priced based on AUM, barring the few funds that create additional capital, I think the initial cost is built on. The way you look at it is why we don't see the yields as the basis of billing.

The effective yields actually remain stable, which is that whether you build it based on the number of investors, in a particular fund or based on the AUM, the effect 2 bps or yield always stays between this 1.25 to 1.5 kind of a thing at the RTA business.

I think that remains stable throughout and the way we price and variable may be different, but the yields remains kind of stable on this business with respect to how we believe. That's been RSP.

[Anuj Kumar, executive]

The only one thing I will add, Devesh, to this is that as a group, we don't like to overengineer price them. And that means that we are used to long-term annuity. We are happy with long-term annuity. If there is an opportunity to break altered now, we don't do that because that just creates all kinds of lumpier and trouble for you to understand and for me to explain.

So we never do that. I mean, you've been working on our results for the last 4 years. For the next 10 years, you will see that we do not, as a principle, create any lumpiness ever, even if it is a market.

[Sesha Ramcharan, executive]

Sorry, I missed that question, sorry, which is that no, it is not skewed because of onetime implementation fee. Our model does not ask for a discount higher implementation, just to add to what Anuj said.

[Devesh Agarwal, analyst]

Perfect, sir. That's very clear. Secondly, sir, on account aggregator. All those were happening to see on a sequential basis, we are gaining market share. But in terms of volumes and revenues, your expectation, say, for the year FY '26, some sense if you can give us on that?

[Anuj Kumar, executive]

So Devesh, what has happened there is, frankly, things are ahead of where I expected them to be. That's the first statement I would make. It's a great market where users are using this for several purposes. That's -- so it's a market where the user uses things and he is willing to pay.

Where is he using? He would ask for a bank statement, which I would give from my e-mail et cetera and an in the password. He is using account aggregator for that. Like we said, the asset managers will not start showing you your portfolio live on their website. They're going to pay for that.

And there are multiple use cases including what think is building, which is producing a credit promo, which sell for INR 20, which a bank will take a week to make. So that's a fantastic thing, which has happened.

Quarterly revenue, like I said, is still in the INR crores to INR 1.5 crore range. So we will be lucky to close the year at about INR 7 crores to INR 8 crores. That's the first time. We are telling you the numbers because they were less than meaningful earlier.

In FY '26, we will certainly target to be double digit. I mean I'll be happy if I can get to INR 15 crore, it will be tough. But the INR 11 crores, INR 12 crore number looks entirely possible from account aggregator as a family. At that level, we will be at a breakeven. We may make some margin on the overall product.

We've kept up the market share, which is a great thing. So the only thing we don't like about the market is that pricing is significantly lower just competitive price. It is not that the buyer is asking for it, the buyer is getting a lot of value. But the sellers are scraping the price at some time that has to end.

What started as a INR 10 per piece product sell to and at times we sell for less than INR 1. If it stabilizes INR 12, I think it's a great business to make if it stabilizes to INR 20, then it's not a great business. So pricing will perhaps reover where this goes. But broadly, apart from pricing on every other aspect, I'm very, very pleased with what the people do.

[Devesh Agarwal, analyst]

Very helpful, sir. Sir, one last question. On the non-X side, you said this will be like a 20% of your top line by FY '27. So just wanted to know, given the strong growth that we are seeing on the domestic MF side, one, is there any rethink on this number? And secondly, how important would be the inorganic opportunity to achieve this number? That will be the last one from my side.

[Anuj Kumar, executive]

No. So there is -- I mean, you've seen the company closely. It's our endeavor that every year, we should have a 2% size. Non-MF it is 13.5%, should go to 15.5% this time next year, which means I should be able to take 0.5% of growth and move it to non-MF as his contribution to revenue. Now that model, when we thought of we were confident of growing non-MF say, 21%, 22%. We expect to grow 13%, 14%, 15%. It looks possible in paper to do that. When MF grows 26%, then non-MF has to grow 35% to 40%. Never easy. This quarter, we were at 31%. Like Ram said, second successive quarter, we may repeat this in the current Quarter 2.

So we will hold on to our prediction. We will hold on to 20% 3 years from now. While this is not the objective why we would do an acquisition, the acquisition will lead this to as an end result, we will not do it just to claim diversification.

I think like we've said, there are interesting opportunities like we've always said that while insurance as a part of our portfolio, isn't yet doing what it should do, but it does not mean it cannot do. So that's one area where you could see us make a move. Payments is another area. And of course, alternatives remains the third.

So you will see us do something. Will that scale up our ambition? I think it has the ambition to get to 20% in about 3 years time. That is the way I would look at it.

[Operator]

[Operator Instructions] The next question is from the line of Supratim Datta from AMBIT.

[Supratim Dutta, analyst]

My first question was on this transition to cloud. Just wanted to understand what could happen to the data center that you currently operate? So is there a thought process that these data centers will be done away and hence, there will be some capital that will be speeded up. And what would happen with that capital in that piece? So that's the first question.

And the second question would be on the EIA side. Now I understand the growth when we then look at the AUM growth quarter-over-quarter tax has also been weak. So just wanted to understand from a competition perspective, given this is a multicar market, are you seeing anything different from competitors that it comes to pricing or when it comes to all. Just wanted to understand that. Those are the 2 questions.

[Anuj Kumar, executive]

Sure. Thanks, Supratim. So on the first one, think of it this way that gradually, like in any other cloud implementation, we will slow down our investments in data conference. And over a period of time, we will migrate the payloads to cloud.

Can I migrate a payload today? The answer is no. What can I migrate a year from now? I think a lot of our, for example, analytics, reporting, all of that can move in a year. Even after we migrate to the cloud, statute will require me to have a copy of the data on-prem. So I cannot get rid of all the data centers.

We have 3 instances. We are setting up an ad up one, which is a fourth. So of the 4, you will still see 1 continuing. For our core MF business, we will need to have a copy of the applications. I mean it too and our database on-prem itself. But broadly, think of it this way to like any other implementation over a period of time, success -- successively every year. You will see our investments come down. You will see us migrate pay load to the cloud still we are fully done, let's say, in a 5-year time frame. So that's the first thing to expect.

From an efficiency perspective, like I said, it creates scalability much better. You know that there are months beginning and month-end payloads in our MF business for which we create 2x capacity. Where do we create it? I create it in 3 data centers. So my baseline would be 80 units. My spike maybe 100. I create 200 units of capacity in 3 different instances across the board.

That scaling and the optimization of that scaling will become a lot -- I mean it will become easier in the cloud format because once I can predict that I will have greater payload between the 1st to 5th of every month and between the 20th and 30th theoretically, I'll be able to manage capacity let cost better, then I would do at 2x level in 3 data centers because once I buy a server or storage or a switch, I just have it and I pay for it fully. I can't do part use of it. So that's how the entire thing will play out.

On DF, like Ram said, our expectation in line with the nonimportfolio is to scale that business over 20%. This quarter was more like the mid-teens. Not that we could not scale revenue. I think the gross scaling was all in place because we have the oldest portfolio in the country, and this is a closed-ended business, which means no fund will remain for less more than tariff.

So any fund which started, let's say, in 2014, '15, '16, '17, one of those will come to an end in 2024. When it come to an end, of course, we provide would have launched another fund at some time, but we'll take the money and pay them. That impact of falloff was a little more in this quarter. In the first quarter we may also be a little more in the next quarter. Otherwise, I mean, so that perhaps explains that the 20% minus to 15% growth, 5% is on account of that.

Are we seeing any other dynamics from a competitive ones perspective? Nothing special but really specifically in the market, which has already seen some price down. we're expecting prices will stay here, but will further price down happen, not expecting that to happen.

[Sesha Ramcharan, executive]

And our meeting is that we have not -- from a domestic perspective, we've not lost market share. So very difficult to make out some published numbers of competition on what that is the net of a share in the domestic as such. But based on our market insistence and our computation, I don't think from a domestic RT perspective, we have lost share as.

[Supratim Dutta, analyst]

Got it. And sir, one follow-up to your commentary on the data center that was I just wanted to understand, currently, you 3 of the data centers, right? And so when you slow down the investments and at 1.5 years down the line, you will be migrating all the data to cloud, then these 3 data centers will become redundant. So would there be a scope that we will be selling off the data centers and we say 4 or 3 years out?

[Anuj Kumar, executive]

So I don't think I got your question completely. If you think there will be some salvage value of the stuff in the data center, some small stuff will be there. But I mean don't count it on any projections that's not the money. Was that the question? Or was the question on asked?

[Supratim Dutta, analyst]

Yes. I'm just trying to understand that what happens with doing data centers when you might -- once you migrate to cloud completely.

[Anuj Kumar, executive]

So 2 of them are sitting inside our premises in our talents. Obviously, the space will be used for something else. One is in colo centers, which obviously is bound by a contract. We will decide which one to retain. One, like I said, we will have to retain. Given the significant salvage value of the hardware, the answers don't even count it. I mean there may be something, but we don't want to bring any focus to that number saying that's the P&L and answer for us.

[Sesha Ramcharan, executive]

Just to add to what Anuj already mentioned is relevant for this question, which is the investments going forward in hardware will be moderated depending on our progress in the ER, right? So that could be an impact that will play out as we go forward.

[Operator]

The next question is from the line of Sanketh Godha of Avendus Spark Equities Private Limited.

[Sanketh Godha, analyst]

I have a few questions. So first question is that if I look at our KRA business, the number of KYC records seems to have not grown in last week quarter it's been stagnating at INR 1.8 crore accounts. So I just wanted to understand, do you see this number going up or you continue to mine these number of records to deliver the revenue growth going ahead?

And the second question was with respect to non-net-asset based revenue. It seems to have grown a little lower compared to the overall asset growth, which is around INR 45-odd crores if I do the math. I just wanted to understand that how do you see the trajectory of this number to play out going ahead. And the next one is on TN360. This has declined both on quarter-on-quarter and year-on-year. Anything to read there? How do you see these numbers to play out?

[Sesha Ramcharan, executive]

Yes. So Sanketh, so I will take the second question, which is the non-asset-based revenue, and Amit will probably give you details on the remaining on asset base revenue, as you know, consists of transaction fee cancers of the call center revenue consist of our application fee that we charge for our software tools like instead Chapek, et cetera.

And the -- so it generally does not move in tandem with and that's why we have a separate trend with us in Phase 2. What we have seen in this bucket is, and obviously, this is not a single kind of driver for all these things. But what we have seen in this bucket is transaction fee, which is almost like 40% of the non-asset based revenue has grown more than 30%, which is again a reflection of what's happening in the market in terms of transaction growth as well as NPO that are coming.

And an application fee, which is the software license fee that we charge for a dairy duties that the customers use has also grown by more than 21%. And the cost has grown by more than 33%. What we kind of bring it down will be the OP. And obviously, OP cannot be linked as acto the asset rate. That will be fourth quarter in which generally the OP expenses are much more -- you do the regulatory guidance that there some emails are much more there is a score meter that need to be sent in bulk, if there is some nomination in the change.

So a lot of drivers are there for OP, it's very difficult to kind of tie it up to 1 metric. But the overall from a transaction growth perspective, we are seeing in the same antenathe assets growth, which is more than 30%. And the call several is also growing well, given that people are adding agents from inmation perspective. So I do not think that you can map it to the asset-based revenue but given the transaction is 40% of the overall bucket, healthy growth in transactions, as you see, would translate into a higher onsets revenue, but it cannot be map on revenue.

[Sanketh Godha, analyst]

Sir, if you can break down that INR 35-odd crores into OP and the core revenue kind of I think that would be useful.

[Sesha Ramcharan, executive]

Yes, yes. So from the INR 45 crore, recoverable it's more than INR 112 crores on INR 11 crores, and your transaction revenue was almost INR 80 crores [indiscernible] 8.5.

[Sanketh Godha, analyst]

Perfect. Okay. Got it. And [indiscernible]

[Anuj Kumar, executive]

So your first question was on the KRA what had happened was there was a onetime sale that happened across the industry. As you know, among the participating KRAs, one, industrial cancer-only in 1 place over the years, over the last 13 years of the KRA of the car. They discovered that there were some individual reports, which were in more than monthly. Once that payment happen, you see the current number, but you've noticed it right. That is the way it had happened.

Now we have a constant base, and you should be able to see a growth on top of it. On...

[Sanketh Godha, analyst]

You expect this INR 1.8 crore account to grow only because of MF or sir, basically, I just wanted to understand, you've got onetime jump from INR 1 crores to INR 1.8 crores. So this INR 1.8 crores to go further up, what would lead to it in that sense? Basically, it will be enough story only or you will go beyond MS2 to drive the KYC business?

[Anuj Kumar, executive]

Like we've said that we are now actively engaged with the rest of the market, brokerages and depository participants to sell KYC services and the KRA services to them. That is perhaps a 10% revenue contributor right now. It isn't that large, but it has helped. We still haven't got one of the top 4 or 5 brokerages. We actually have one but not the other.

We are actively pursuing the larger accounts should be able to report something in the rest of the year, and you will find that even if we get a fraction of those volumes, that could be a large contributor number. However, what has contributed right now is also a 2x lift in new plants coming into other.

TAM service funds used to see 3 to 4 lakh new and the fund is an individual not known to cap service funds due to 4 lakh a month. That number is almost doubled. So when you see that number from 4 lakh is almost between 7 and 8 lakhs, a large part of the fill-up has come from CAMS. Service funds, we started actively selling to non-CAM service funds, the care services about 2 years back. Part of the growth is from them, but that's all that will not what 10% revenue contribution would have come from us selling to brokerages and positive participants.

So that's how you can add up the 100% growth. And most of the strength capable.

[Sanketh Godha, analyst]

And on 360?

[Anuj Kumar, executive]

On TQ, you're right. The scale up hasn't been a openers year. One of the large reasons is that loss, which was a precursor to account aggregator. We were expecting that for some time, there will be a market for both the products, both for Algo and the account aggregator.

Now we are seeing that the account aggregator market is definitely showing the preference for any kind of offering not so much for the algo offering. So we continue to engage in the market themselves. At some time, that question had to come on whether we keep selling the core or we start selling the value-added services under the brand Ames.

I think we've seen some of that impact. Also, one of the large -- although it's not a major contributor, but one of the large U.S.-based analytics contract hasn't seen the scale up it needed. We are now not actively selling in the U.S. We are largely focusing on the Indian market for has come from the U.S., we will service them, but we're not actively selling yet. So that explains what's happened at tech.

[Sanketh Godha, analyst]

Got it. And maybe just one thing. You said the non-MS business, it is around 13, will go to 15 by same quarter next year. So is it fair to assume that the heavy lifting has to be largely done by 2 businesses, which is Taspana and CAMS. That's a fair assumption to make because because AI probably will grow more partly in line with the end of business, given it is limited to a number of investors rather than AUM based.

[Anuj Kumar, executive]

So again, no, you're getting it right. I would say from a percentage contribution basis, although I don't take the AA percentage revenue contribution is the highest. It is even more than KRA. So from a percentage contribution driving the 13.3 to 15.3 or whatever number we get to, I think it's clear to me that in the next year, next 4 quarters, between KRA payments and account aggregator, all 3 of them should content and should continue ahead of the market.

In the case of alternatives, we have said that we are aiming for a 20% plus growth, but some time, maybe a quarter from now, we should come back to that. So that's really the some total of what will contribute to November. If there is any opportunity of this is on top of this. But right now, it's within the [indiscernible]

[Operator]

Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr.[indiscernible], for closing comments.

[Unknown Executive]

Thank you, Deepika, and thank you for all the participation for your continued interest and participation in this call. If you have any further questions, please feel free to contact Anish Sawlani or Orin Kepler IR, and we'll be happy to get in touch with you and clarify your doubts.

[Operator]

Thank you once again. On behalf of Computer age Management Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.