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Central Depository Services (India) Ltd
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Ladies and gentlemen, good day, and welcome to the Q2 FY '19 conference call of Central Depository Services hosted by Axis Capital. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Bagul from Axis Capital. Thank you. And over to you, sir.
Thank you. Good evening, ladies and gentlemen. On behalf of Axis Capital, a warm welcome to the CDSL Q2 FY '19 Conference Call. We have from the management Mr. P.S. Reddy, Managing Director and CEO; Mr. Bharat Sheth, Chief Financial Officer; Mr. Gaurang Shah, Vice President; and Mr. Nilesh Kittur, Assistant Vice President. I shall hand over the call to Mr. Reddy for his opening comments, post which, we will open the floor for Q&A. Over to you, sir.
Thank you. Good evening, everybody. Welcome to the Q2 call, analyst call. Pardon me for being hoarse in my voice because of the sore throat. And part of the talking will be done by Bharat Sheth. As regards to business, we have been doing -- continuously doing well in the areas that we have taken up for business, and our incremental market share continues to be above 64%, even in the current quarter as well. And the aggregate market share of Demat accounts is almost 47.57%.Well, that being what it is, and we on the unlisted companies are getting listed financial business. The time line is not described, but a lot of inquiries are coming and almost all of our 200 applications are in the pipeline. And the companies, it is mandatory for them only if they are issuing [ additional ] capital or if there are any transfers of [indiscernible]. The government has not fixed any time line for it. But we expect it's only a matter of time, so by the time our systems -- both the depository systems are ready and interfaced with the MCA website for automatic download of filings that the companies have done from the MCA side, this one will become -- will pick up, that's what our view.The other front, actually, is -- quite similarly is doing as usual, exceedingly well. And we have the numbers which Bharat will speak. And the new business is National Academic Depository, it is where we have almost a 500, 460-plus universities and that's also we are ahead of others.When it comes to the Commodity Depository, that is work in progress and become MCX settlement for Brent oil was done in the month of October, the 3rd October if I'm not mistaken. For the Brent oil settlement using the CCR platform, the -- we will be doing next month also the other products. And when it comes -- it is work in progress, as I said. We are expecting the nonmetal, non-agri commodities also to be notified to be handled in the commodity depositories. So once that is done, we'll be able to handle still much more business in this year.And we have also launched the what we call VDR, virtual data room, where the institutions like -- I mean, whenever a company goes public, there is an activity of consultation among the solicitors, the RTAs, the legal advisers and merchant bankers, et cetera. So we have provided a virtual data room, and that is being used by more consultancy professionals as well as by the merchant bankers. Of course, the number of issues are less, that's why it's not [ competitive ] project. We expect it to be -- to provide a good competition in the domestic market to the current players who are mostly foreigners, okay, foreign products are in the offering.We are also doing well in the space of e-Voting, and of course, new entrants are -- a new entrant has come in the form of Link Intime, but we retail -- continue to retail our market share and grow without any hit on our revenues or our network of companies that we're servicing at this point in time. It is too early probably, but that's the way it is.And I will now hand over to Bharat to speak something more on these issues.
Good evening, ladies and gentlemen. First now, I am give you the consolidated results for quarter ended September '18 versus quarter ended June '18, that is quarter-on-quarter. The consolidated total income is up by 25%, that is INR 63 crores in September '18 as compared to INR 51 crores in June '18, mainly on account of overall improvement in operational income and around 89% increase in other income from INR 5 crore to INR 10 crore, 974 lakhs on the current quarter.Further, profit after tax is up by about 37%, that is from INR 22 crores to INR 30 crores, which was due to controlling the expenditure. The expenditure was marginally up by 2% on quarter-on-quarter basis, that is INR 22 crores to INR 22.51 crores. Now quarter ended September '18 to quarter ended September '17, that is year-on-year basis, consolidated basis. Although the consolidated total income increased by 11%, that is INR 63 crores in September '18 as compared to INR 56.4 crores in September '17, the operational income increased by 12% from INR 47 crores to INR 53 crores, mainly due to increasing annual issuer charges and online data charges that is KYC income.Other income has increased by 7% from INR 9 crores to INR 9.74 crores in current quarter. Further update, profit after tax is up by about 12%, that is INR from 26.8 crores to INR 30.15 crores. The expenditure was higher by 20% on a year-on-year basis, that is INR 18.7 crores to INR 22.5 crores. The effective tax rate has reduced from 29% to 25%.Now on a standalone results. Quarter ended September '18 to quarter ended June '18, quarter-on-quarter basis, standalone total income is up by 19%, that is INR 48.2 crores in September '18 as compared to INR 40.4 crores in June '18, mainly on account of overall improvement in operational income and around 81% increase in other income from INR 4 crores to INR 7 crores in current quarter.The increase in profit after tax by 35%, that is from INR 16.3 crores to INR 22.10 crore, mainly on account of controlling expenditure, increasing operational income. The expenditure is slightly up by 1% on quarter-on-quarter basis, that is INR 18.5 crore for June '18 increase to INR 18.6 crore for September '18. That is for quarter ended September '18 to quarter ended September '17, that is year-on-year basis, the total income up by 7%, that is INR 48.2 crores in September '18 as compared to INR 45.10 crores in September '17. The operational income increased by 6% from INR 38.8 crore to INR 41.03 crores. Other income increased by 14% to INR 7 crores to INR 6 point -- from INR 6.3 crore. The increase in debt is 8%, that is from INR 20.5 crores to INR 22.09 crores. The expenditure was higher by 18% on year-on-year basis, that is INR 15.8 crores to INR 18.6 crores. The effective tax rate is reduced from 32%, 25%. So overall, on quarter-on-quarter basis, we do think we improved very much as such. And I now open forum for question and answers.
[Operator Instructions] We have the first question from the line of Prakash Kapadia from Anived Portfolio Management Services.
I have 2 questions. If I look at the employee cost for the consolidated result, they are up 20% at INR 16.5 crores. How much of this would you attribute to newer businesses and how much would be due to existing business? And what will be the number of employees as on date?
Yes. The number of employees increased from 226 to 238, and mainly in the new business, that is commodity business; that has increased. And about raising salary: one, number of employee increased; second thing that performance-linked bonus what we have declared in March '19 -- March '18, that has got impact. And otherwise, general increments are there overall.
Performance based was paid in last quarter as well as this quarter, or was it this quarter, sir?
No. That is every quarter and this is on a monthly basis we are paying performance-linked bonus, prorated 12 months. But declared in March '18. Whereas in last year [ for us many year ] March' 17 whatever we have declared, we will pay. So there is a difference.
Understood, understood. And sir, if I look at the CVL business, we've seen a strong growth after some of the challenges which were mentioned in Q1 for the CVL business, is the revenues have grown from INR 9.6 crores to INR 13.8 crores. So now is that business back on track? What has changed during the quarter? If you could give us some sense on the CVL business, that will be helpful.
Yes. Prakash, growth essentially is driven by -- running the online account opening and using the Aadhaar. And the mutual fund investments, we are [ not ] increasing the mutual fund invested. Now the problem now Aadhaar is [ banked ] using this e-facility... KYC. They are first to use that QR code. So we have already advanced the pace of development. Maybe very shortly -- very shortly means really, really shortly, we are going to deploy and replace the -- and replace it with QR code-based online verification. Once that is done, a client will be seamlessly onboarded as if there is the other Aadhaar-based verification and safety. So that will happen shortly, as I said. So we don't feel any challenges at this time. But yes, there is an additional cost associated with this because of the [ development ] mentioned [indiscernible]. But yes, it is a dampener in that -- to that extent.
Right. Last quarter -- sir, what I was trying to understand is last quarter, there were some mutual fund and some specific challenges. So are some of those challenges, where obviously revenue growth here, as you've mentioned, is a function of online KYC or mutual funds that are drivers to the business, but some of the challenges which you are facing, those seem to be sorted out, right, is what I want to know?
Yes, they are already sorted out. Yes.
And sir, lastly, you mentioned in your opening remarks about unlisted companies. But if we look at the government circular, it says December is the actual deadline. So if you could give us some sense on is there -- see, if I look at [indiscernible] data, there are around I think [ 70,000 ] public unlisted companies, so what could be the overall revenue pool? Is pricing clear in terms of annual fee, onetime fee? Because circular also mentions about they're maintaining a 2-year security deposit with us. So if...
There is no deadline of the 1st December. What we're essentially seeing is transfers cannot happen; maybe that is the way that you are looking at it. Okay. But any new capital that will still come in, it has to come in demat. So look at the company which is not raising any more resources. Then it is not required to immediately come into the demat. Similarly, they also said you need to give a 2 years issuer fee as a deposit. The second thing is, we have come out with a new tariff structure, new tariff structure in the sense of up to INR 5 crores. The current tariff is INR 9,000. Right now, up to 2,005 -- sorry INR 2.5 crores. INR 5,000 is the tariff that is prescribed by the agencies concerned. So now you have one more strategy introduced so that the smaller companies are benefited and they won't resist it. Beyond that, there is no change in the tariff. So we are expecting more and more companies to do that. And we have also introduced -- I'm sorry, there's one more change in the tariff. The processing fee will be INR 15,000 instead of INR 20 crores -- INR 20,000. That's another one.
All right. That is helpful. Are pricing -- or you feel that is...
Pardon, Mr. Kapadia, I'm very sorry to interrupt, but we have participants waiting in queue, sir. So you will have to come back with your questions. We have the next question from the line of Dharmik Patel from ActiveAlpha.
I have a couple of questions. First one is, what is the status on R. Gandhi report? And secondly, why the current -- the current liabilities have increased from 18 -- from approximately INR 18 crores in March to INR 50 crores in September quarter?
Okay. With regards to R. Gandhi recommendation, maybe to emphasize, you are talking about the term of the [ MB ] et cetera, okay? And as per the new regulation, R. Gandhi committee also has not recommended, but we thought it is appropriate to have proper governance structure in place. So the MB of the depository are market infrastructure institution, not just depository. The exchange clearing corporation or a depository cannot sell more than 2 terms of maximum 5 years each. So I have completed my 2 terms, and the SEBI, when I -- and we went for a 5-year, my board given a extension of 5 years when we present to SEBI, SEBI gave only 1 year extension, pending these recommendations to be converted into regulations. Now on 3rd or 2nd October, the regulations have come. Now the regulation say that only 2 terms that item, 2 terms of 5 years each. But they are taking 2 terms or 5 years, whichever is -- get hit. So probably, I'm not sure at this point in time. We need to revise the policy and then send it to SEBI. But I understand, as it stands today, I may not continue beyond 31st March 2019. That's how it is.
How about SEBI was planning to open depository services to corporate? So what is going on in this direction?
Come again? I didn't understand the question.
SEBI -- a couple of months ago, SEBI was planning to open depository services to corporates or private entities, so they will be able to enter in depository services.
Yes, those explanations are already amended with this 3rd October. The sponsor concept has gone. The holding of sponsors, now they can easily divest it in whichever way they want it and banks are free to sell off their stake, what they have it. So substantial amount of floating stock will be available. Now by this, corporates can only maximum take 15%, not more than that. And that is...
No, I wanted to know as in, can any other corporates enter in this depository services business?
They can enter, subject to a maximum of 15% that SEBI approves them as eligible fit and proper person for holding.
And who can enter in this business? Are there specific banks or any other financial institution? Or apart from them, any other?
There is no restriction. Anybody who is willing to put that money and then promote the company and then bring INR 100 crores, but only maximum 15% they can hold. They can start a deposit.
And the final question about the current liabilities.
Yes. About the current liability, whatever issuer income is what we are -- and we leave you a charge, no? So pro rata basis, so it grows the current liabilities. Whatever annual income what we are getting, we have prorated it. So for 6 months, it shows as an advance received from customer. Okay?
Is that clear? We sure will, and we sure will in the month of April. But that is -- we collect it, so that is a portion over the 4 quarters... prorated.
We have the next question from the line of Pavan Kumar from [indiscernible] Capital.
Can I have the breakup between the transaction charges, IPO corporate action charges and annual issuer charges?
For the quarter, you wanted?
Yes.
For the quarter, no? One minute, right?
Yes, sir. For all the accounts.
See, for Q2, annual issuer charges is INR 16 crore; transaction charges, INR 10.26 crore; And IPO corporate action charges, INR 6.16 crore. And online data charges, INR 10.17 crore.
Okay, okay. Sir, last year, we had a significant amount of income from this IPO corporate action charges, but this year it seems to be much more drier. So what are your thoughts on overall? Is there any possibility of any growth on this? Or we have to cover up by revenues from the other streams?
No, no. It depends on the market as such. So if market has got more number of IPOs then definitely, it will increase. So it depends on the market.
Okay, okay. And then so we are almost flat on a transaction charges basis, right?
Correct.
We have the next question from the line of [ Agam Shah ] from [ Raj Trading ].
Can you tell me what was [indiscernible] -- what do we include in the data storage [ and all ]?
Data storage. See, online data charges is there and data storage is there. Previously, it's physical copy at the initial stage for mutual fund investment, all KYC physical documents we were taking... we are maintaining -- at present also, we are maintaining for those who have 45 lakh in their accounts. So all those physical documents, on behalf of mutual funds we are maintaining. So -- but and then we are charging on that basis, so there is a document storage charge.
So in that data entry and storage, this is the one component you're seeing, right? This is the only component? Or any other components there?
That is a document storage charge. Online data charges, those are KYC charges.
KYC charges, okay. So these are the 2 components in data entry and storage, right?
Correct, correct.
Okay, okay. Also, the growth that you have seen on the quarter-on-quarter, is due mainly to KYC and the mutual fund incremental and all, giving that improvement there in that time, right?
Yes.
Okay. And another, dematerialization about the private companies part, so any tender or anything? What is happening out there?
Tendering?
Dematerialization of the private company.
As of now, MCA has not mandated it, so it is voluntary for them to do it. The regulation came in only for public limited companies, okay? So while -- we look at the progress of this with respect to other private limited companies as well as for corporates.
So but do you expect in the near term to be [ minimal ] or to...
I do not like to -- these are all regulatory issues. So no, we should not adjudicate.
Okay. And I think you're sufficiently shedding cash at bank balance with -- of INR 42 crores. So any plans to acquire something or -- as such or to make any investments as such or no?
On a -- surplus cash, we are investing in mutual fund, FMPs, bonds, all we are doing. CapEx requirement, whatever on an average, INR 5 crores to INR 6 crores, that on an average we are required. So otherwise, everything, we are investing in.
We have the next question from the line of Harit Shah from Reliance Securities.
Sir, you gave the breakup of issuer charges, transaction charges. Do you have the year ago figure, please?
Yes, you want on quarter basis, no, quarter '17?
Yes, that's right 2Q FY '17 -- FY '18, sorry.
That is September '17, that is Q2 '18, what you want me to say?
That's right.
INR 13.65 crores for Q2 '17, we are having INR 16 crores for annual issuer charges.
Correct.
Whereas transaction charges of like INR 10 crores, INR 10 crores, as such.
Right.
E-voting charges from INR 2.69 crores to INR 3.21 crores. Whereas IPO corporate action charges INR 8.43 crores for Q2 '17, it went down to INR 6.16 crore for Q2 '18. Online data charges from INR 6.82 crores to INR 10.17 crores.
INR 6.82 crore?
INR 6.82 crore, online data charges, it went up to INR 10.17 crores.
Okay. Secondly, do you have the figure of the total number of demat accounts as of end of this quarter? Well, about I think 1.53 crore last quarter.
So it is.
1.65 crores.
1.60 crores for September. [ Alone ], 1 crore 60 lakhs.
Got it. Got it, sir. And just one last question. The breakup of the other income, if you have that.
That is mostly investment income.
Okay. Now so -- but there are pretty substantial increase in the -- from the first quarter to this quarter. So that would be, what, related to MTM?
Yes, MTM.
We have the next question from the line of Abhishek Jain from Vallum Capital.
Sir, I just wanted to understand [ this was ] told in the like initial statement of yours that this virtual data this -- that is [indiscernible] insolvency and market bank card. So how will be the markets -- like what will be the market size for the same? And can you just throw some more light upon the same?
See when IPOs come, we -- CDSL IPO, we've almost all paid about INR 10 lakhs to INR 15 lakhs, followed with [ data room ], okay? That is a kind of...
Come again, your voice is breaking, yes.
Yes, we have paid almost all INR 10 lakhs to INR 15 lakhs for one IPO, our CDSL IPO, and that happened to be some Australian company. So for each of the IPOs, people are taking with -- various vendors are there, most of them are foreign companies, hardly an Indian company is there. So we work with a network of merchant bankers whose merchant bankers work with us also, there is a synergy out there. So using the merchant bankers, we are propagating uses of our VDR. Our cost of investment is hardly anything. It's internally developed and it's housed, in-house and -- so hardly a cost for us. That's the way.
Hello? Hello, you got it?
Yes, yes.
Hello. You got it?
Actually voice was break -- hello, hello?
Actually this is a software. Hello? This is a platform we are providing to the issuers, those who are coming with IPO thing. So there are various, what we call, solicitors and merchant bankers, auditor. Everything has to be -- come together. And whatever data they have, they have to store in that software only. So for that matter only, we are charging to the company. At present, nobody in India is doing such type of business.
And how we are charging, like, what the charges for the same? And how you see the markets [ based ] off the same?
No, that depends on number of months, how many months. It has just started, but it depends on number of bulk license you require to operate this account.
The space required.
And space required.
Like can you just give me a sense of idea at how our revenue will be [ shaping there ]?
No, no. See, these are [nascent stage] as such. So once all the companies are going or merchant bankers are going to utilize it, then we'll come to it. At present, hardly any income is there, around INR 3 lakh to INR 4 lakh is there. But -- so once it is popular, then definitely, we'll place it, and more number of IPOs should come. Then only it will show [indiscernible].
And do we get any [indiscernible]?
No, no. Your voice is breaking.
Hello?
Hello.
Sir...
Mr. Jain, I'm sorry to interrupt, but the audio is breaking from your line. Could you give us a call back from another instrument? Sir, we'll move to the next question. We've lost the audio for this participant. The next question is from the line of Amit Chandra from HDFC Securities.
So sir, as you've mentioned that around like 200 private companies are in pipeline and in this quarter you have seen -- like you've seen private companies coming from.
This is public unlisted company.
Yes, so the public unlisted, but the growth we're seeing in the annual issuer charges is just like on quarter-on-quarter which is just 2.1%.
No, no. It was applicable from October, no? October onwards. So next quarter, you will get something.
Okay, okay. So in this quarter when is it like...
Nothing, nothing is there.
Okay, okay. And sir, in -- like, you mentioned the revenue for annual issuer charges, transaction charges, IPO and online data charges. So expect that, the others, we are seeing a very steep growth. So others basically consist of eCAS, e-Voting and all the other more sources of revenue. So what is the reason for huge jump in the others, which is INR 10.5 crore, I think?
No. Others means -- see, all 5 I told you, annual issuer charges, transaction charges, e-voting charges, online data charges. These are the major -- out of INR 53 crores, these are the major components of it: INR 16 crores plus INR 10 crores, INR 26 crores plus INR 10 crores, INR 36 crores. And INR 40 crores belongs to that. And INR 6 crore of -- the -- so it comes to INR 42 crores, INR 45 crores. These are the main components as such.
Right, right. That's what I'm saying, apart from that, so the total revenue is INR 53 crores. So apart from that also we are seeing huge jump in the others components so -- as compared to the last quarter so. Anything particular...
No, no, that others component -- yes, yes, that is INR 1 crore is there instead of INR 31 crore, INR 31 lakhs to INR 1 crores because of this, it includes that is foreign investment participation that -- those charges are there.
FPI monitoring is what we are seeing as really doing it. Foreign portfolio investor monitoring has been given to both depositories and then almost all 1,800 to 2,000 companies have chosen CDSL, where we are charging INR 25,000 per annum for the BSE 500, NSE 500 companies. And for all the rest of the companies, it's INR 10,000. So that is the maybe companies which have contributed for it.
Okay, sir. And sir, we have seen a huge jump in the online data charges. So your comments on the stability of this huge jump. So we expect this run rate to continue or just an onetime thing that we are seeing? Or there's a change in the way the mutual funds do the KYC or how the competition is acting to it?
Competition is not a worry itself because we have almost all 1.7-plus crores KYC records with us, okay? If all KYC is there, then that particular intermediary has to necessarily come to me, not to go anywhere else. That is the kind of business rule, regulatory rule that is set up. So the only thing is eKYC, which we were doing well earlier, now that has been stopped for some time. Hopefully, this QR code business will be able to relaunch that. We are opening -- OLA -- our product called OLA, online account opening, where seamlessly investors come to the broker site, he opens demat account, and he opens trading account, he does KYC also. So that KYC after doing it, it gets settled in -- resides in CVL. That's how we -- this product was made. Now that we are restructuring that, so probably except for the gap that we have experienced for the last one month -- 15 days to 1 month, this will again pick it up. That's what I -- of course, it all depends on the markets. Unless the investors come to the markets to buy and sell or do some investment in the market, we will not get this kind of [ call ].
So can we attribute like platforms like Paytm and Zerodha who have started selling mutual funds online, that is also a major contributor to this?
Zerodha is doing exclusively with us. So -- their KYC is only with us. So that doesn't matter.
And sir, in terms of like technology expenses also, there has been a steep increase, 44% quarter-on-quarter of INR 2.4 crores, INR 3.4 crores. So any kind of investments we are doing in terms of upgrading our technology?
We have [ proven ] new Oracle licenses we bought because of the increase in the work because based on the CPU, their licensing work. So when we are hitting about 70%, 80% capacity utilization, we have added some more CPUs. So we had to take additional licenses. That is the reason why you...
And then in -- regarding the other income, so we're seeing some volatility in the last 2, 3 quarters. From here on we can expect stability in the other income? Or still, we have some -- we have a portfolio which is very much prone to be volatility in the markets.
I thought you'd like stable growth. You want quarter-on-quarter how much percentage is growth.
So we are stability there, yes.
Yes, that's right. The revenue streams are safe, but, yes, there will be a fluctuation in the amount of income that each one of them contribute depending in the market.
Depends on the interest, too, interest nature of bonds and because of that, mark-to-market.
We have the next question from the line of Nitin Agarwal from JM Financial.
Sir, I just wanted to ask that in this quarter, the annual issuer charges have increased 17% year-on-year. So traditionally what we thought was that the annual issuer charges moved off low growth, 6% to 10% kind of business stream. So can you tell what has been driving this 17% growth year-on-year in the annual issuer charges? Is it that the number of companies which have been dematerialized have increased in this period because the fee has not been revised upwards.
See, annual issuer charges, we are charging on 2 basis: One, either on a flat basis or on a full year basis, whichever is higher. So last year, because of more number of IPOs and because of go-to-market conditions, more number of IPOs there, so number of folios increased. So that has got effect in this. As on 31st March 2018, whatever number of folios are there, on that basis, we are billing the company. So because of that only.
Okay. So previous 31st March number of folios you are billing in this year?
Yes, correct, average.
Average billing.
Okay, okay. And sir, my second question is for the unlisted public companies. So we have 200 applications till now, that is what in pipeline which you have said.
Correct.
So from the MCA website what we come to understand is that there are 64,000 odd companies, okay? So when it is a listed company, they have to mandatory dematerialize with both NSDL and CDSL. But in case of these companies, they can choose between one of the depositories.
Right, right.
So what advantage do we have that we can attract maximum companies to our side vis-à-vis the competitors? And also like such a small amount of companies have been registered till now, only 200 out of 64,000. So what is [Foreign Language] your thought about it? What is the time line which you think that more and more companies will come by this year and next year, do you have any sense [indiscernible].
See, the tariff being the same with both depositories, what breaks the company is the service. Some of them are coming directly, especially as groups they are coming. If it is a big industrial group, they are bringing all their issuers to us and seeking some discount in the processing fee. We are not giving it in their annual issuer charges. So that is the way they are looking at it. But the RTAs are the ones which are maximum supporting us. So we hope once the online application processing is released, which is -- which is -- [ realizing it ] also gets created online, so admission will happen online, that's the way we are working. Where the companies are not required to enter the data themselves, it will download from MCA site. It will take by the end of November, we are expected that portal to be up and running at both ends, both the depositories have to do that. So once that is done, probably the -- actually the -- it will pick up, the growth will pick up. That's what our view.
Okay. But do we have any specific advantage over our competitor that we'll be able to other than the discounts on onetime fee which are the -- that even the competitor might be able to offer.
Yes. But our marketing teams are on the street all the time, okay? As I said, relationship works with the business, and our business development teams are constantly pursuing the companies, especially those who are using e-Voting services, those who are using FPI monitoring services as well as the IEPF accounts they've opened. Good number of companies have chosen CDSL over the competition. So I think that will help us. That's the way I can at this point in time say.
[Operator Instructions] We have the next question from the line of Giriraj Daga from KM Visaria Family Trust.
Just a follow-up on the online data prices. When you mentioned that now we are moving to QR codes, how the competitors are taking up this matter? So mostly all everyone is moving from Aadhaar based to QR code or is there a different mechanism there?
Even QR code is also online available. Essentially what it will happen is, investor will go to Aadhaar site. He will download the QR code, digitally signed one there from -- seamlessly, and then that QR code is dragged by the depository or the service provider and then end up with that data into the application. So even -- everybody else has no choice but to do it. There's no other way.
Okay. So there's no -- more or less everybody are on the same page in terms of competition also, right?
That's right.
Okay, just as a last sort of small accounting, why the debtors have moved up 50% like and that trade receivables compared to September quarter?
Trade receivables because of this annual issuer surcharges, no, around 70% to 80% pays in first quarter, second quarter, and balance always. So as on 31st March, if you compare, debtors are more during this period.
And they are 50%, from INR 18 crore to INR 27 crore.
Because of that.
We have the next question from the line of [ Pawan Kumar ] from [ Resnasha Capital ].
Sir, about the tax rate, what I want is the sustainable tax rate that we can assume this quarter, it has been 25%, whereas last year, it was 29% around.
So it depends on the mark-to-market investment where other incomes are more my tax rate would be accordingly adjusted as such. And capital gain benefits and capital losses are there that I can adjust it, indexes and benefits.
Can you give any breakup on how much was the capital gain and how much is the normal proportion in the other income?
Capital gain would be around -- exact figure, I don't have right away, but I can give you later on.
Okay. But for the full year, would it be fair to assume a 30% tax rate?
Effective tax rate comes to 25%. Otherwise, 29.12% is the normal tax applicable to us.
Okay. Since we are under INR 250 crores revenue, it doesn't -- our tax rate is not 25%?
No, it is 25% only, no? 25% plus 12% surcharge and 4% education so it comes to 29.12%.
We have the next question from the line of [ Mansi Shah ] from [ Capital Capital ].
Sir, could you please repeat the market share data?
Market share data?
Market share -- see, we are having 1 crore 60 lakhs account and other competitor has 1 crores 77 lakhs accounts. So we are having a 47.57% market share.
Okay, okay. And sir, incremental market share?
Incremental market share comes to 64% for this quarter.
Okay. And sir, in terms of the KYC business, what is the market share?
We have -- our numbers -- informally, we know what the competition, 4 of them are there, what they are holding. Our market share works up to be about 60%.
[Operator Instructions] We have the next question from the line of Aditya Bagul.
I just have one question. We have about INR 620 crores to INR 650-odd crores of cash and investments in our books. Is there a plan to increase our dividend payouts? I think our dividend payout was about 37% last year.
Dividend payout ratio on consolidated basis 42% was there, last year. And on a stand-alone basis, 57%. And dividend yield of 1.5% is there, which is quite good.
Right, sir. But is there a plan to increase? Because I don't think we have immediate use for such high levels of free cash on our balance sheet.
Yes, yes. We definitely consider your suggestion.
The next question is from the line of Dharmik Patel from ActiveAlpha.
I just wanted to confirm, the incremental market share you mentioned is 64%, right?
Yes, yes, for second quarter.
Same, I think was 71% in first quarter FY '19?
Yes. Correct, correct. You are right.
So that's coming down, right?
Yes. Quarter-to-quarter, yes.
Ladies and gentlemen, as we have no further questions, I would like to hand the floor back to the management for closing comments.
Thank you, everyone, for participating. And I wish all of you a Happy Diwali and a prosperous new year. And maybe you look forward to increasing the floating capital of the company, maybe some of the sponsors may be divesting -- you could divest in this. So with that, I thank one and all.
Thank you very much, all of you.
Thank you, gentlemen. Ladies and gentlemen, on behalf of Axis Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.