Radiant Cash Management Services Limited (RADIANTCMS) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Radiant Cash Management Q1-F527 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Barnawal from Antic Stock Program. Thank you. And over to you, Mr. Barnawal.

Thank you. Good morning and welcome, everyone, to QNF427 earnings conference call of Radiant Cash Management. Today, we have with us the management team of Radiant Cash Management, represented by Mr. Alexander Deby, whole-time director, Mr. Venkataraman, CFO, and Mr. Mutharaman, head strategy and IR. With this, I hand over the call to Alexander for his opening remarks, with post which we will start the Q&A session. Thank you, and over to you, sir.

Thank you, Raju. Good morning, everyone. Unfortunately, our CMD is today a little unwell, so I would be representing him today on today's call. Thank you for joining us today for Radiance Investor Call. The standalone revenues for the quarter grew by 7% over the same quarter the previous year. This growth was driven by commencement of a recent large mandate with IDBI Bank. We also had healthy growth in revenues from cash fund operations. The revenue decline in e-com logistics segment has been arrested, and the segment reported positive growth in the current quarter. We handled cash volume of Rs. 0.43 trillion during this quarter, a growth of about 2.3% over the same period last year. We had one of the least amount of gross cash losses in this quarter at about Rs. 2 million. We continue to have... to lowest cash losses in the industry by a wide margin because of our robust risk management systems. Our standalone EBITDA margins for the quarter, Q1-FI27, dropped to 13.5% from 15.9% in the same quarter last year. The drop is on account of increase in our manpower costs. Specifically, the cost of gunmen in certain regions and increase in minimum wages in few states affected our margins for this quarter. The company has sought significant price revision with all its customers and expects the same to materialize in the current quarter. The improvement in profitability of co-business hinges on three critical aspects, business growth, price revision, and cost optimization. We have added experienced resources from the industry to drive our business growth, both from banks as well as direct clients. The recent initiatives taken at our industry level is expected to help in price revisions as well as abating the intensity of competition. Cost optimization is an ongoing exercise. We are increasingly using technology for cost reductions and expect to see the impact in the coming quarters. Valuable Logistics has shown very good traction, with revenues reaching Rs.22 million for the quarter. Induction of senior resources from the valuable logistics industry and signing up of a new marquee national chains has helped improve revenues at a brisk pace, and the management is confident of reaching break-even in the current quarter. Coming to our consolidated financial performance. The overall consolidated path has dropped to Rs.52 million in Q1 FY27 from Rs.57 million in the same quarter last year, as the fintech subsidiary reduced its losses in this quarter. The subsidiary is currently scaling up its soundbox and QR code deployments with several rural and urban banks and improving its transaction revenues on install based on POS machines. The team is confident of turning EBITDA positive in the current quarter and contribute meaningfully to the overall profitability of the company in the full year. Mr. Mutharaman will provide more details on Ace Money performance and future plans. We remain committed to provide transparent updates on our progress and answering any questions you may have. I would now request Mr. Mutran to speak about the performance of Ace Money, followed by Mr. Venkat Raman to speak about the financial performance and KPIs.

Thanks, Alex. Good morning, everyone. Thanks for joining this earnings call. I'll be presenting the update on Radiant Ace Money, our FinTech subsidiary. As I had mentioned in our last analyst call, PIDF subsidy was discontinued in December 2025. After which, the focus of Radiant S-Money has been to improve its transaction revenues from the installed base of point-of-sale machines and business correspondents from among this network. Radiant S-Money has also increased its thrust on deployment of soundbox and QR codes for rural and urban banks, which has gained significant traction. Radiant S-Money currently provides soundbox both on outright and rental models and has targeted to deploy over 50,000 soundboxes in the current financial year. Besides transaction revenue and soundbox deployment, Radiant Ace Money has diversified its revenue base to include establishing corporate VC network for banks, providing white-label UPA solutions, and extending its fintech software solutions for smaller banks and NBSDs. Initial traction has already been achieved for each of these businesses in Q1 and FI27, and the management is confident of scaling them up in the current financial year. Currently, we have a network of Over 20,000 BCs, cumulatively deployed over 58,000 sound boxes so far, and facilitated a transaction volume of 170 crores in Q1 FI 27. We will continue to provide regular updates on the progress of ACE money to our investors as we scale greater heights in the coming months. I would now request our CFO, Mr. Venkatraman, to present our financial performance.

Thank you, Mutharaman. Good morning, everyone. Thanks for joining us on this investor call today. I will present the company's key performance indicators and financial performance for the quarter ended 30 June 2026. The retail cash management business grew at 5.5% during this quarter over the same period last year, with the growth coming mainly from the IDBA mandate that commenced in this quarter. In terms of sectors, BFSI and organized retail grew at a healthy pace, while railways, petroleum, and e-commerce segments witnessed sluggish growth in this quarter. In this quarter, we handled Rs.043 trillion of cash, a growth of about 2.2% over the same period last year. Direct clients accounted for 18.4% of our revenues for this quarter, up from 14.3% in the same period last year. Our gross cash losses for this quarter stood at Rs 2.06 million, or 0.0005% of the total cash handled during the year. This is one of our lowest cash losses in a quarter since we went public in 2023, and also the best performance in the industry, a reflection of our strong focus on risk. on risk management and ex-serviceman culture in our company. Radiant Valuable Logistics reported revenues of Rs.22.1 million, reporting sequential growth of 24% in QYFY27 over Q4-FY26 and is well on its way to achieve positive EBITDA in the current financial year. Coming to the financial provision. Financial performance, consolidated revenues for the quarter were Rs. 1.08 billion, representing 5.8% growth over the same period last year. Standalone revenue growth was 7.05%. The standalone EBITDA margin for the quarter was 13.5%, as against 15% in the previous quarter, despite reduced losses in radiant valuable logistics. Key reasons for this margin reduction were sharp increase in manpower-related costs, namely employee costs, driver and gunman costs, and service charge expenses towards cash activities. Sharp increase in minimum wages in a few states and shortage of licensed gunmen in several southern states were driving for the higher manpower costs. The company has taken up with all its customers for price revision and expect the same to materialize in the current quarter. Thank you. Marginally to 11.01% from 10.7% the previous quarter due to narrowing down-off losses in radiant elsewhere. The working capital management continued to remain excellent, with debtors reducing to 65-days revenue in June 26, down from 70-days revenue in March 2026. Cash balance continues to be healthy at at least $2.1 billion as on 30 June 26, of which free cash flow is $644 million. For the remaining quarters of FY27, the management expects AceWare and Radiant Valuable Logistics to turn profitable, improving EBITDA margins on the back of price revisions from customers and higher growth revenue of the core business. The management is actively working towards meeting each of these milestones and confident that the same will reflect the financial performance in the coming quarters. Now I hand over the floor for questions and answers.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes on the line of Ankit Kanodia with Zen Nivesh. Please go back.

Thank you for taking my question. My first question is related to the payment.

Sorry, Ankit, we lost you.

Mr. Bensh, please go ahead. Yes, Mr. Ramesh, please go ahead with your question. Since there is no reply from the line, Mr. Ramesh will come out to the next. That is Vinit Sahu and Brazil. Please go ahead.

Can you hear me? Yes, please. So, Alexander, you talked about three... Yeah, you are. Growth and profitability. And two of them, which is business growth and cost reduction, you have been talking for the last six quarters without any real, you know, really. Price hike, which I think is the new one that we talked about. So my question to you is, you know, price hike. Five months, right, from March onwards, and you are dealing with a bunch of private companies. So what is taking price like so long? And what exactly do you mean by business growth? Because your core business itself has grown at 1% or 2%. Uh, and, uh... So can you just elaborate on this tip? We're going to get achieved.

Yeah, thanks, Mr. Sahur, right? Contracts are typically long-term contracts with the banks with no specific identified price, automatic price escalation on an annual basis. That's how the industry operates. In the past, there has been a steady growth in number of points that they give to us, which will accommodate the cost increases, which happens, inflationary cost increases. Now, in recent times, because of lack of fresh points that banks allocate to us, either because of competitive pressures or because of their change in focus, the number of points from the banks are not increasing. So that is why our focus is on improving the direct lines. So that is the reason. And correspondingly, in the same period, obviously, the manpower costs have increased. Both regulatory as well as market-driven. Regulatory in terms of minimum wages in certain states, particularly northern states and Karnataka, and market-driven, particularly for the government costs. Because of that, the industry, the Cash Logistics Association as an industry made an appeal to Indian Bank Association, and advanced levels of discussions have happened, and IBA has formed a committee for looking into the price revision. And the promise to revert within a very short period of time, and we are expecting these negotiations to get completed in Q2, and the price revision should come through. So, the cost reduction is an ongoing measure. You can see that, in a sense, despite the... The volume of cash, if you see over a longer period of time, the volume of cash handled remains same. The number of points have increased, which means the cost of servicing those points are higher. But we have been able to contain our costs, particularly bank charges and cash executive expenses. But own employee costs, because of inflation in the nature, has increased at about 8-9% every year, whereas our revenue growth has not been. So cost is fairly in our control, and management has taken conscious measures. Price revision I addressed. The revenue top-line growth is where we do face challenges. Management is conscious. We have hired certain senior resources from the industry now and also increased our focus on direct clients. So today it is about 18% up from 14%. And we believe our future growth could come largely from improvement in increasing trust in the direct clients business. So, as an organization, we are infusing the sales DNA across the hierarchy, and it is definitely taking longer than what we had anticipated in the past, and so we are taking measures to address that, and we expect that the current year revenue growth should, as in. So, IDBA mandate has helped in this quarter's growth, but beyond that, we have lined up a few large names and direct clients. And we hope that the revenue growth will cross double digits in the current year.

We took a large deal last year, which would have rather than four cross from quarter one onwards per quarter. So if I take that four cross out, our core growth is zero.

In this IBA bank, we will have double-digit growth is what our expectation is.

Valuable growth, valuable logistics and Yeah, you're non-value.

It has been that the revenue from some of the banks have been declining. In some instances, the banks have stopped offering this as a service to their customers, and in other instances, for smaller value points, alternate mechanisms, which are not entirely legally approved, routes are being adopted by the industry. We do face the long tail of smaller points moving out of the entire industry of retail cash management and moving to payments bank. So that has eroded our revenue. Like, for example, we had highlighted that particular phenomenon in e-com logistic segment. There are other segments that, in fact, is not very large. So, yes, because of this, it was a negative growth which we are compensating through addition of direct lines, but yes, the addition of direct lines has not been at the sufficient pace to make up for this loss and still provide for a double-digit growth. We have hired more senior resources from the industry and adjacent industries to help us grow this business. And we expect that the remaining quarters of this year will help us reach this target of double-digit growth in the current year. RVN is too small to make an impact.

But RDL has gone from 0 to, say, 8 crores in a year over the last two years. So that's like, if I take that also out, then the core business is actually negative, despite inflation. Not negative.

No, no, not negative. 8 crores on 430 crores is smaller than 2%.

Sure.

Okay.

The next question is regarding ace money. So, you know, they hardly had any revenue. I think a very minor one. And the cost is, again, coming to around 8-10 pros per year. So, one is, of course, you are saying they will make even. Exactly is the big picture here. I mean, it looks... Profitability. It is not really looking strategic to me if you look at the outside radian. Inside radian maybe it is, but if you look at the big picture, Can you just explain a bit on HMoney? What exactly is the big deal?

Yeah. Okay. So, the original intent with which we did the acquisition got distracted because of the opportunity of the PIDF subsidy, which came through till December 25. The management has gone back to the core business of expanding its network of business correspondents. Today, we have 20,000 business correspondents, but the location where they are and the scale of economies, we are not yet able to fully leverage that network of our core business. We have cumulatively probably lost about 30 crores of annual revenue to payments bank, or slightly more than that. Our expectation is that with the establishment of a BC network by Radiant Ace Money, we can provide the same services which we lost to payments bank business. That is one part of the story. The other part is, on its own, the QR code deployment and soundbox deployment. It has huge potential, and we are able to sign up with several banks, and the order pipeline for the current quarter and the next quarter are fairly healthy. So that is giving us the confidence that the business will achieve break-even in the near term. So longer-term objective is that Ace Money should be able to provide half of its time to fulfilling the requirements of radiant cash management, and the balance half will be to expand its own network. of bringing, providing digital banking solutions to those who have come into the banking system but not yet into the digital banking system. So this is through smaller banks, urban and rural banks, etc., where bank accounts are open but none of them have digital banking facilities. So these are the two twin objectives over the long term for Ace Money.

Just to add to Mr. Mudraman, what Mr. Mudraman said, Alex here, is the whole strategy behind Ace Money was, we want to, our biggest today asset as a company today is, we have a network. Today we have spread over 15,000 pin codes. That is a very difficult thing to achieve, and which we have achieved over 21 years. And today, as everybody knows, digitization has having a small impact on us, especially in tier one locations. So, when we acquired Ace Money, the whole strategy was to use this network to enable them and to kind of show ourselves as a digital company. You know, we can use our network, use the fintech services to provide digital banking, to also then combat these BC operators, their payment banks, to use the fintech. Let's also get into that segment as well, and to arrest where we've been losing the business, let's say in e-com logistics, you might have seen that has now got arrested, and that's steadily growing. So, that was the whole strategy behind Ace Money. It's still quite nascent, but we truly believe it is a sunrise industry, and over time, we will be able to see a lot of benefit from it.

Okay, thank you.

Thank you. Next question comes from the line of Ankit Kanodia with Zen Nivesh. Please go ahead.

Am I audible?

Yes, Ankit. Hi.

Hi, sir. Thank you so much for taking my question. Sir, my first question is related to the payment aggregator license which we have been trying for some time now. Any updates or any clarity on how it is going to be?

Venkat, yes. See, the payment application, aggregated application, what we file, RBI has asked for certain clarifications and queries on this about two months back. We will be resubmitting the application maybe by the end of this month or in the first week of September. Once it is submitted, we expect to get the application in hand by early next year, maybe by January or February 27th. Once it comes, we are geared to start the business, at least in the next financial year. Because the application takes about four to five months' time from RBI.

That was very helpful, sir. Sir, related to this only, given our technology with... Thank you.

Definitely help. Because the unit economics for cash management improves correspondingly. And also, the cash volume today, 170 crores of transactions we have done, our yield on that will definitely improve. But still, it is a debatable point at what point of time the government will, if at all, introduce MDR on EPA transactions. When it is going implemented and the quantum, I will be able to tell you the exact impact. But overall, if it gets introduced, it is definitely positive for both ASWire as well as for latent cache matter.

We'll have good living here.

When the MDR comes in, this will be seen like more another bulk, particularly about the retail part, another mode of bulk transaction like an EFT or RTGS, etc. And because of our strong network of, so today we have about, as in instance, 1,50,000 POS machines, 20,000 BCs. Through this network, any UPA transaction happens above 2,000. That will definitely add to our revenue.

In fact, it is not a question, it is more of a request and suggestion. Sir, we declared a good dividend in Q4 FY26. In fact, what I can see from an investor's angle, don't you think it would have been better or even now it would be better if we announce a buyback because our cash flow situation is still healthy? By doing a buyback, we give a signal to the market that promoters and management is finding value at this price.

We have received similar feedback from the other market participants as well. We will give it a serious thought and bring it up for discussion at the board in the coming.

Next question comes from the line of Ramesh with S.J. Investments. Please go. The line of Mr. Ramesh has gone on hold. I'll promote the next. The next question comes from the line of Khush Shah with Vivoke Commercial. Please come back.

Yeah, hi. Am I really? Yes, Mr. Shah.

So, my question is related to the polymer side where there has been news around that there is a new rollout of polymer sheets for the 10 or 20 rupees note. So, I just want to understand, as you are in the KS Logistics listeners for the years, and what's your view, when will be the inflection point of the Polymer nodes would be there in the market, because if I assume that after the demonization, there has been a lot of cash in the market, so by this, the new Polymer sheet, How it will just affect our business, positive, negative, if you can share your views of this polymer sheet?

Yeah. See, in the retail cash management business, we are largely in the reverse cash logistics, where we pick up cash from the retail office to bring it. Whether it is the coins or polymer notes or paper notes, it doesn't make any difference to our process or to our costs. At the CIT, that is cash-on operations business, there could be an opportunity, like when we had at the time of demonetization, to replace the paper nodes with polymer nodes. We will definitely get more opportunity. So that could be probably a one-time business bump because of this transition, as and when it happens. At this point of time, we do not know clarity on when the government plans to introduce the polymer nodes. But the core business is indifferent to the nature of that.

Got it. Understood. Understood. So, just a ballpark of the news that has been accumulating, any timeline that you would also know that around maybe three years, two years, or in coming five years, this entrepreneurship could be changed?

No, sorry, as in we don't have visibility on when the government plans.

What is the price increase that you are expecting from the bank, from the current?

So, okay, it is a, basically our ask is a cumulative price increase for, I think, last price revision has happened at this level probably in 21, when the new RBA norms were introduced and banks agreed on a price revision. So, last four or five years, there has not been a price revision at the card rate levels. So, we do expect it to be substantial, but it will be very precluding on our part to tell that in a public forum what we are negotiating individually with banks and with the association. But it will be as in we expect it to be substantial.

When does it expect likely to be expected?

In Q2, we expect to complete the negotiation.

Effective from April, right? And what is the NIPCAS to SHIM as of June 24th?

As of June 26th, we have free FDs of about 64 crores.

Okay. This is the next cash position, apart from your date and detail.

Yes, yes. The total gross cash position is about 318 crores.

Okay.

Of which 196 crores is cash used in cash management operations. Some of it is fixed up as it's landmarked as towards bank guarantee, and 65 crores approximately is the free cash flows. Free cash.

And yes, when you are talking about the breakeven in the next few quarters, but if I really look at it, the top line is only about 70 lakhs, which has been added in the quarter one, maybe in terms of the transaction revenue. So what is the breakeven level? Because I could see the employee cost itself roughly about, I don't know, 7 to 8 crores per annum, and maybe there could be other cost also.

Yeah, after PIDF was suspended, we have taken a sharp cleanup and reduced the manpower cost as well there, and so currently the manpower is required only to the extent where we are actually deploying the soundbox and QR codes, and for the UPA white-label solutions, and FinTech software solutions, anyway, we have a technology team which is doing that. So, the fixed costs have substantially come down, and so that is why, in fact, between Q4 and Q1, there is a narrowing down of losses.

So, you said that you have done a transaction value of about 170 crores, Q1. So, how is it shaping up, sir? How is it shaping up? At what value, maybe, what is the plan over there for years to come?

Yeah. So the immediate next two, three quarters, a big part of our revenues will come from soundbox deployment. So we're planning 50,000 soundboxes to be deployed in the current year. So the economics is the thing. We have a network presence where we can do this deployment at economical cost. So, we have already lined up probably, I think, 60-70% of this is already currently in our order book. So, we don't see a challenge in doing that. So, that should cover a substantial portion of our fixed costs. And the transaction revenues will take longer to grow steadily. And our team also, it is, our team has to visit these merchant outlets and encourage them to do more transactions on our business, etc. So it will take slightly longer time to build, and this Soundbox and QR code deployment and fintech software solutions for smaller banks and NBFCs will be the revenue driver for the remainder of this year. Transaction revenues will be more meaningful in the next financial year, is what we think. Soundbox deployment, that's right. Yes, soundbox deployment and white-label UPI solutions. We also have a tie-up with Hitachi for deployment of their white-label ATM solutions. So those are the ones which without, these are without much incremental development, incremental costs. So these will help in reducing our losses.

What about the radiant, I mean, the standalone EBITDA that you are expecting this year? Because you are talking about 10-12% growth, including the IDBA 1. What is the EBITDA that you are talking about? Of course, this depends on the price increase also, I believe. Yeah.

So, with factoring in price increases coming in, we are expecting the full year to end at 17-18% EBITDA margin for the standalone business.

Including the price increase. Sorry, if I am right.

Yes, after factoring the price increase.

I mean, I mean, the top line... The top line growth is also inclusive of the price increase that you are talking about?

Can I repeat? No, the top line growth of... See, yeah, we have not taken the full impact of price revision because we don't know the quantum and we don't know the existing. Our expectation of double digit growth is largely from the core business growth, points growth and revenue growth.

Thank you. A reminder to all the participants that you may press star and want to ask a question. Next question comes on the line of D.I.J.N. with Sapphire Capital. Please comment.

Hi, sir. Thank you for the opportunity. So, how do we look at FY28 in terms of growth and margins? Now that ACE money revenues will start taking in.

Yeah, so the top-line growth should be in mid-teens, 12-13% growth, and we are hoping to reach at a consolidated level EBITDA margins of about 90-20%.

And do you expect the shortage of guards in few states to normalize them in the coming quarters?

No, the shortage in the sense, because the prices have gone up, so with the price revision, if the banks agree to those price revisions that we see, And, yeah, we are working on other alternate options also, competitive in nature, I cannot put this in public domain, but it's not going to be a challenge to find manpower, it is only the cost, and the cost will be hopefully taken care of with the price revisions.

Thank you for all of us.

Thank you. A reminder to all the participants that you may press star and want to ask a question. Next question comes from the line of Phineet Sahu, an individual investor. Please come back.

Yeah, can you hear me? Yes, sir. So, my question is, you know, the whole industry looks like it is under severe. And one of them did say that. I'm going to...

Alex mentioned in his initial speech, we have, as an association, we have come together and appealed to the banks for price revision. And as an association, we understand that industry as a whole is going through the pressure. So we do expect the competition to abate in the coming quarters. But irrespective of that, we are working towards targeting direct We have clients where there is no limit to. We can approach. This has been our thesis. Two crore outlets, retail outlets are there. Fifty lakh outlets could avail this service. What we are playing actually is in a very, very narrow niche, and this service can be used by a much, much, much wider variety of retail outlets. So there, there is no competition who reaches first and who is able to convince them to part with their hard-earned cash to us for a deposition. is the challenge there. And so, longer term, that will be our focus. And in the immediate term, as I said, as an association, we have made a pitch to the banks, and the feedback on the banks is also fairly positive. So, we expect that competition should abate and margin should improve across the board.

Yeah, I understand. I was more keen on knowing in the last five months whether you went for new tenders or e-tenders. What has been the behavior of competitors? You know, I'm not too worried about the customer giving you more money, which is okay, fine. But how do the competitors, are they kind of going aggressively picking up orders or are they working out of some deals?

Nothing noticeable change between last year and this year, Mr. Sahu. I mean, since your competition is there, actually, the industry is a little skewed. There are four players who can serve this Pan-India. So the balance of this thing should be in favor of the industry rather than in favor of the banks. But yes, as in the sense... We have not seen too much, we have not lost any large mandate because of pricing in the recent months.

Coming to valuable logistics, I mean, you had a couple of ideas when, you know, we met last The invitation of those initiatives is just that number A to 10 cross.

Thanks, Mr. Saho. It is doing well. We have really, you know, restructured ourselves, and now we have a good team also in place. Unfortunately, a little bit of volatility had happened because of the war, and even the Prime Minister had kind of told that, you know, to avoid buying gold. So that has had a major impact today in the industry. The customers have become extremely conservative in movements, but we are seeing that that is slowly changing. And our teams are in the market every day, and as in when the market stabilizes, we should see a lot of positive development in the sector.

Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Gaurav Katyal, an individual master. Please go ahead.

Sir, I am Odigam.

Hello. Yes, you are. Yes, you can hear Mr. Baurav.

Sir, I have just a single question because I was not able to understand the returns from the international school today.

Mr. Katyal, sorry for interrupting. We cannot hear you. There's a lot of disturbances in the background. Can you move to a quieter place?

Is it audible now?

Yes, better than before. Please go ahead.

I have a simple question that I have compared to the data of last three years from F.23. Now we have reduced our EBITDA margins, our operating margins, more than 50%. It is around 10-11% only, which was more than 22% back. So, in how much time we can expect the recovery at the end, more than 20%. So, according to a different environment of business and different our subsidiary and renewable logistics and our strategy and our... The management in respect to the recovery, bare 40% plus margin.

First of all, margins have dropped because of four counts. One is the AS money loss, which we expected to reduce and turn positive. RVL losses, which we expect to reduce and turn positive. The manpower increases, the manpower cost increases, for which we have filed, we have sought price revisions. And the most important is the stagnant, as in much lower top-line We are taking serious measures to get And we are expecting that will help move to double-digit top-line growth. So, with these four, that's why based on these, we have given a guidance that we should be able to get to about 90-20% EBITDA margin in the next financial year.

Okay. So, sir, our main business, our main core business is regarding cash money, cash money. More than 85% of businesses come from cash management only. So, like you were saying, there is very stagnant growth. So, is there any, you see any kind of big scope there because of digital money in place and everything, digital payments are going on. So, how the management expects to be running with very big growth in the coming period? Or there will be any decline in this field in the coming years? What is your take on this?

Sir, definitely digital transactions have grown. Simultaneously, cash volumes have also grown. Currently, in circulation today is at 42 lakh crores. What our thesis is that we are operating in a very, very narrow niche segment where banks offer this as a service to their customers, only to their select set of customers as a premium value-added service and in turn outsources that business to us. It need not be a premium value added service. In fact, our pricing is very competitive and, in fact, extremely low compared to, for a merchant, compared to a credit card transaction, where they may be incurring 150 basis points or 200 basis points as charges. This will be 10, 15, 20 basis points. It's one-tenth of what they incur for their credit card transactions. So, it is fairly, the unit economics is compelling at the retail level. Just that banks, as in dependent on banks to offer this to more and more clients, is not giving us the kind of growth aspirations that we have. So we are focusing on improving our direct customers, and that should help us give these growth projections that we have suggested.

Okay, okay, thank you. And one last question regarding the RBA license, any update on that?

Just now, Mr. Venkat briefed, there is a set of queries that RBI has asked, which we have engaged a reputed consulting firm to help us draft a response, and we will be giving the response by next month, and hopefully by early 27, we will have the license and commence the business set.

Okay, thank you.

Thank you. A reminder to all the participants that you map a star and want to ask a question. Ladies and gentlemen, due to time constraints, we have reached the end of the question and answer session. I now hand the conference over to the management for closing comments.

Thank you. The performance of this quarter is muted despite some growth in revenues because of sharp increase in manpower costs for which rate revisions are under negotiation with banks. The new initiatives... RBL and Ace Money are steadily improving and will start contributing positively to the bottom line in the second half of this year. I want to express my gratitude for your continued support of Radiant. We are confident that our continuous effort will yield promising results for all stakeholders. Thank you for your time and your interest in our company.

Thank you. On behalf of Antic Stock Program, that concludes this conference. Thank you for joining us. You may now disconnect your lines.