UTIAMC — earnings call
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Prepared remarks
Moderator · Conference Operator
Ladies and gentlemen, good day and welcome to the UTI Asset Management Company Limited Q2 and H1 FY21 Earnings Conference Call.
From the management we have with us, Mr. Imtaiyazur Rahman, CEO & Whole-time Director; Mr. Surojit Saha, Chief Financial Officer; Mr. Vinay Lakhotia Head Operations, and Mr. Sandeep Samsi, Head Investor Relations & Corporate Communications.
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, please signal an operator by pressing star and then zero on your touchtone telephone.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Imtaiyazur Rahman for opening remarks.
Over to you sir.
Imtaiyazur Rahman
Thank you very much Inba for introducing us on this occasion.
Good afternoon to all those present on this call.
I welcome you to our Quarter
Questions and answers
Moderator · Conference Operator
Thank you very much sir.
Ladies and gentlemen, we will now begin the question and answer session.
Our first question is from the line of Madhukar Ladha from HDFC Securities.
Please go ahead.
Madhukar Ladha
I have a few of them.
First, can you give a split of the QAAUM in different categories like debt, liquid and others?
Imtaiyazur Rahman
May I request my colleague Vinay Lakhotia to take this question
Vinay Lakhotia
For the September quarter, we had an AUM of around INR 45,051 crore for the liquid fund, INR 39,291 crore for the pure equity fund, INR 30,679 crore for the ETF and Index fund, INR 20,474 crore for the hybrid category of fund and INR 19,695 crore for the income category.
So, total QAAUM for September quarter was 1,55,190 crores.
Madhukar Ladha
Can you help me with the closing AUM in different categories?
Vinay Lakhotia
Yes, as on 30th September our closing AUM was INR 1,51,439 crore.
The breakup of that is liquid INR 39,719 crore, equity INR 40,138 crore, ETF and index fund INR 31,248 crore, hybrid INR 20,494 crore and income fund INR 19,840 crore.
Madhukar Ladha
Got it.
Just the total number 1,51,000 you said right?
Vinay Lakhotia
INR 151,439 crore that’s the closing number.
Madhukar Ladha
Yes, got it.
Vinay Lakhotia
Average is INR 1,55,190 crore.
Madhukar Ladha
Sir, on the expenses side, the employee expenses are pretty high.
Also our expense ratios are quite high.
So, first thing what is the ESOP expenses in this quarter’s number and second, can you give us some guidance, I know that there is sort of a voluntary retirement or some plan to cut the number of employees over the coming few years.
So, can you give us some guidance as to how much that cut can be and by what level these expenses can be cut down to and what will be the timeline, what should we expect?
Imtaiyazur Rahman
So far as the ESOP expenses are concerned during this half year, we have made a provision of INR 17.66 crore which was not there in the previous financial year.
This is a long-term incentive plan and it is a very, very important investment.
This is also not a cash expense as you are aware.
So far as the other line of expenses are concerned in employee costs, first of all, as you know at the beginning of the year, you need to do the valuations of your gratuity liability and other pension funds.
However, it evens out over the period of time.
Secondly, we are going to manage cost aggressively going forward; and as we had presented earlier a large number of employees will be retiring over a period of time that will help us to save substantial cost.
At this particular point of time, I can only tell you that UTI will be immensely benefited as we had inherited these employees.
Also, we are working with our NRC.
We had a NRC meeting few days back and we will have a plan as to how do we increase the productivity of employees that will help us to reduce the employee cost.
Madhukar Ladha
Sir, can you put some numbers around what sort of reduction can there be in employee cost over the next two, three years.
In terms of number of employees how many will retire?
Imtaiyazur Rahman
Vinay in three years how many people are retiring?
Vinay Lakhotia
Over the four year period it will be around 250 people.
Imtaiyazur Rahman
Over the four and a half to five years period around 250 plus people will be retiring.
Madhukar Ladha
Will we not be replacing them?
Imtaiyazur Rahman
Most of them will not be replaced.
We have a large number of non- managerial staff and this non-managerial staff is not required to be replaced.
Number two, the senior relationship managers that we have, we may have to replace them, but those employees will be replaced with low cost employees as we had mentioned in our presentation earlier.
Last year, we appointed 150 management trainees and this year we have already appointed 50 management trainees at a low cost.
So, these recruitments will help us to offset costs and we are not required to substitute all 250 employees.
Vinay you want to add, please go ahead.
Vinay Lakhotia
Madhukar as we highlighted during our road shows these 250 employees even after the replacement cost which will be mostly in form of a management graduate, we see a cumulative saving of roughly around INR 65 - 70 crore over a period of four years.
And thereafter the annualized saving after a period of four years would be anywhere in the range of around 10% to 15% of our employee cost.
Madhukar Ladha
Okay.
Got it, understood.
Sir you’ve given some SIP numbers and those are gross flows.
Now by gross flows are these like before the check bounce or is it before any redemption of SIP AUM what is that exactly?
Vinay Lakhotia
These are net realization, Madhukar.
Madhukar Ladha
Net realizations okay.
And lastly, sir on your overseas investments the offshore fund investment and venture funds, these are our own funds right?
Just wanted to clarify on that.
Imtaiyazur Rahman
Come again, can you rephrase your question?
Madhukar Ladha
Sir we have about INR 283 crores invested in offshore funds and we have about INR 287 crores invested in venture funds, these are our own funds right?
Imtaiyazur Rahman
No, these investments are by our subsidiary company - UTI international.
This company has made an investment in funds – IDEF and UTI India Balanced Fund.
So, far as venture fund is concerned these are the investment in our funds - Ascent capital fund and other funds.
These are our own funds, we have not given any third party to manage the fund.
Madhukar Ladha
And these will be primarily equity?
Imtaiyazur Rahman
Equity and the Structured Debt Opportunity Fund (SDOF), Surojit please give the break up.
Surojit Saha
Yes, out of these INR 282 crores which you said Madhukar, IDEF that is India Dynamic Equity Fund we have INR 262 crore and in Balanced fund which is a debt fund, we have INR 20 crore and then in the venture fund, as Mr. Rahman said, in SDOF, which is invested in India, we have INR 128 crore and Ascent fund we have around INR 96 crore, IIDF, we have INR 71 crore, these are all venture fund.
Imtaiyazur Rahman
Madhukar it is our own fund.
It is not third party.
Moderator · Conference Operator
Thank you.
We’ll take our next question from the line of Amaresh Mishra from HSBC.
Please go ahead.
Amaresh Mishra
So, just two questions from my side.
Thanks for clarifying on the dividend policy and good performance in this quarter.
I just wanted to check with you, you said at least 50% or 50% why I am asking this is in the context of your two other listed peers which are there two larger AMCs, their dividend payout has been significantly high and we are not a cash guzzling business, we throw up a lot of cash and we already have INR 2500 to 2600 crores of cash on the books.
So, in that context sir this 50% do you think it is at least or do you think you should be, increasing this number, if you can comment on that?
Imtaiyazur Rahman
No, the policy is very clear - minimum 50%.
It is minimum, it is not maximum.
We have also said it in the RHP it is minimum 50%.
Hope it clarifies.
Amaresh Mishra
That’s very good.
It will be good if you can just give a press release or something like that on that.
And the other thing is on your employee expenses to the previous question, if we look at we are running roughly at about INR 95 crores per quarter kind of run rate right now, if you were to look at the half yearly where you clarified in terms of INR 17 crore being the first half, ESOP expenses.
From a full year perspective if I look at your employee expense, it looks about INR 380 odd crores little shy of INR 200 odd crores.
So we are running at something like 25 basis point kind of employee cost on our mutual fund AUMs the number which you gave INR 1,51,000 crore, so in that context, I know that in the long term we have this plan of reducing INR 70 crores but our peers are running at 15, 18 bps. Is there any other plan apart from this retirement wherein this can match up to our peers, anything else you would like to comment on that, that’s all from my side, thank you very much.
Imtaiyazur Rahman
We have a two-pronged strategy, if we increase our AUM and that is our plan, then this cost will be reduced, on that particular basis.
Also, we have a plan to rationalize our manpower.
I can only give you this directionally.
I just want to let you know, we are going to rationalize and right size our manpower requirement.
Our strategy is not only to right size but also to increase our high yielding AUM, equity, hybrid and high yield fixed income component.
We are following both these strategies concurrently.
Amaresh Mishra
Yes, sir that is fine sir.
So in that context just one thing, I was just observing like although in liquid, we are kind of gained back market share, if you see from the month of March ’20 onwards, but in the debt side our market share is still struggling, we are at 4.3% we were roughly at about 7%.
In equity we are maintaining market share.
So what is the issue now, given that all the cleanup, et cetera has happened, why is the market share there not catching up.
That’s my last question sir.
Imtaiyazur Rahman
Very good question, Vinay can you just add and inform
Vinay Lakhotia
Amaresh, we had closed three of our flagship funds; UTI Ultra Short Term fund, UTI Treasury Advantage fund and UTI Short Term fund for subscription over the last two years.
Mainly because of credit crisis issues and also we didn’t want the existing investor to suffer.
Post settling of the credit crisis issue, we have opened these schemes for subscription in the month of June.
The Q2 numbers of the sales of these funds have been quite encouraging from the three funds itself, we have mobilized close to around INR 1640 crores of fresh sales and the debt sales number has also been positive.
For the income fund, we mobilized around INR 500 crore for Q2. So going forward, we believe that with the opening of sales under these schemes and also on the backdrop of improved performance in most of our flagship funds on a one year and a two year basis we will be able to increase our traction under the fixed income fund and increase our market share especially under the high yielding fixed income product.
Imtaiyazur Rahman
So, Amaresh, I just want to add here, we had not closed down, but we decided to increase the exit load and make the commission zero.
In the month of June, we removed this exit load and came out with the market linked incentive plan for those funds.
The performance is very good.
We have seen a significant improvement in the performance.
Amaresh Mishra
The performance is good sir, the only thing is that we have a good name UTI.
And if you see the other PSU kind of names which are there, they are gaining a lot in terms of market share.
So, our name it is not that we lack in terms of anything.
So, I was just curious that we have lost market share this year, there is no gain in market share that was where I was coming from.
Imtaiyazur Rahman
We have been losing market till June, but if you see the September quarter, in this segment also we have added.
I also would like to clarify that we have never been a PSU, the PSU shareholders had investment here.
Amaresh Mishra
T Rowe is the biggest investor.
Imtaiyazur Rahman
Yes.
We have never been a PSU, though PSU shareholders have invested in our company as a shareholder.
I would like to submit very humbly that performance is on the right side and the market share between June and September quarter has increased and we will continue to work hard.
Amaresh Mishra
Thank you.
And please give a press release in terms of your formal dividend policy.
Imtaiyazur Rahman
Press release is given.
Sandeep just take care about that.
Amaresh Mishra
And minimum dividend payout which you said
Imtaiyazur Rahman
Yes, it is important to be very clear about this dividend policy.
I am very clear as a CEO because as you know Amaresh, I transitioned from CFO to CEO, so I am clear about the importance of the dividend.
Moderator · Conference Operator
Thank you.
Our next question is from the line of Nidhesh Jain from Investec Capital.
Please go ahead.
Nidhesh Jain
First, can you share the distribution mix of equity oriented AUM in terms of bank assurance, IFA, national distributor and direct?
Imtaiyazur Rahman
Vinay?
Vinay Lakhotia
For equity and hybrid fund, IFAs constitute roughly around 60% of our overall AUM.
The bank and national distributors are just around 10% and direct is 30% of our overall AUM for equity and hybrid fund.
Nidhesh Jain
And sir what is the plan to increase the share of banks in our distribution mix and how is the traction there?
Imtaiyazur Rahman
I will take this question.
Most of our schemes were not on the platforms of the key banks.
I’m happy to share with you that our schemes are now on the platform of all the banks which distributes our product.
So, on the equity side with the performance which we have, as you know, we are witnessing traction from the investors and the distributor community.
Similarly, our fixed income fund performance has also considerably improved and it is witnessing traction.
We are revisiting our business development associate and partnership with the banks like Bank of Baroda, Citi Bank, Punjab National Bank, HDFC, Axis and others.
With performance on our side along with good pricing advantage, very good servicing standard, brand UTI and reach, we will be definitely improving our market share and traction in the high yielding equity and fixed income products.
Nidhesh Jain
Thank you sir and secondly on the operating expenses, we have seen significant reduction on a Y-o-Y basis so what part of this operating expenses reduction is structured and what is because of lockdown and COVID related transient sort of operating expenses reduction?
Surojit Saha
We as an institution have taken initiatives in all the line items of the cost.
In fact, we invested in training and development related practices.
We are looking at our operating model and now have moved to a paperless document management system which is helping us significantly to reduce our costs, on printing, stationery and even in the courier costs.
With virtual meetings becoming a new normal scenario, we have been saving on our travel cost as well and we expect this trend to continue going forward too.
We have also negotiated rates with the landlords of our branch premises and we have been able to save around INR 1.5 to 2 crores in this half.
And another thing is, for many of our new initiatives we are analyzing them on a zero based budgeting like for opening new offices and other cost expenditure.
So, this has overall helped us to reduce the cost.
Imtaiyazur Rahman
We have been aggressively managing the administrative cost.
If you see our data of last 10 years, you will find that we have always outperformed the inflation index.
The employee cost is different, which we have explained to you, but administrative cost has always been well under control.
So, one thing that you can relate to is that due to the pandemic, the travel cost is less, but vendor cost negotiation is something that we have started before the pandemic and that is giving us a lot of savings.
Nidhesh Jain
This quarterly run rate of INR 37 crore is a sustainable number or you expect it to increase?
Imtaiyazur Rahman
It is a sustainable number.
Moderator · Conference Operator
Thank you.
Our next question is from the line of Ajox Henry from B&K Securities.
Please go ahead.
Ajox Henry
Sir, my question is a bit more fundamental.
We have a very good share among B30 and given that we are allowed to charge higher commissions.
So, shouldn’t our operating yields be higher compared to competition or are we passing the difference completely to the distributor.
How should I be seeing that?
Imtaiyazur Rahman
Vinay?
Vinay Lakhotia
In terms of B30 we are allowed to charge additional 30 basis point.
Revenue sharing with the IFA especially for a B30 center is in the ratio of around 50:50 or 60:40.
So, we are gaining some AMC fees as far as B30 AUM numbers are concerned, the yield you can say is slightly lower because we have a higher proposition of ETF and index funds.
So, our ETF and index fund of our overall composition is 20% as compared to the industry average, which slightly drags down our overall margin number of around 47 basis points.
Ajox Henry
Okay, so that is the reason why our yield has declined despite mix getting better like year-on-year?
Vinay Lakhotia
No, year-on-year if we compare with the last six month the dip has been only by one basis point, but that’s primarily because we started the year on a low equity base because of the market depreciation in the month of March.
But we are confident of maintaining the last year yield margin number of around 46 basis points for the full financial year.
Ajox Henry
Got it.
And sir on the IFA base, since we are pretty much dependent on IFAs, what are we doing to make sure that they remain committed to us?
Imtaiyazur Rahman
Mr. Sandeep Samsi, our Head of strategy.
Sandeep Samsi
As you are aware that IFAs are the bulwark of our whole distribution network, we enjoy very good relations with our IFAs and have been doing that over the years.
One of the important pillars is the strong relation that we have developed over the years with the IFAs especially through our branches as well as through our business development associates.
So, going forward also, we feel that this relation will continue and help gain AUM.
For UTI, very importantly, one part which is there is that, in the past when there was a reduction in the exit load pricing of 5 basis point, at that time UTI was one of the few AMCs which did not pass on the cut to the distribution community.
So that has also helped us to strengthen our relations with the IFAs.
Moderator · Conference Operator
Thank you.
Our next question is from the line of Vinod Rajamani from HSBC.
Please go ahead.
Vinod Rajamani
So on slide #18, you have presented net sales for the company on a quarterly basis.
Can you give those details for the industry as well?
Imtaiyazur Rahman
Vinay?
Vinay Lakhotia
Which number?
Vinod Rajamani
The quarterly net sales which you have presented on slide #18.
Vinay Lakhotia
We have an AUM number and net sales number for the industry but right now it is not available with us.
Vinod Rajamani
Okay, that’s fine.
But if I get the industry numbers and take your numbers I should be able to get the any market share gains and flows and all from this, right?
Vinay Lakhotia
I can give you the half year numbers, I don’t have quarterly numbers will half year numbers do?
Vinod Rajamani
That is also fine.
Vinay Lakhotia
Okay.
So for the half year, our net sales for the all categories put together was at INR 12,364 crore as compared to an industry number of INR 1,47,247 crore.
So we are virtually at 8% of the industry number.
I will give you equity and hybrid breakup.
In Equity, our net sales are INR 333 crore as compared to an industry reference number of INR 2,496 crore and for hybrid our net sales were INR 189 crore as compared to industry, a negative net sales of around INR 2,658 crore.
Vinod Rajamani
That’s very helpful thanks so much.
The second question I had was, will PNB also be reducing your stake below 10%, and is there any timeline for that to happen?
Imtaiyazur Rahman
I am unable to answer this question.
First of all, there is a lockup period of one year.
Also, that would be the prerogative for PNB to decide, we have nothing to do.
We are completely board governed, professionally managed independent company where these four shareholders have less than 51% and we are like a private company.
Vinod Rajamani
Okay.
And also on employee cost this, 10% to 15% kind of reduction in employee cost, is that number is right?
That is the number you have kind of put on record?
Imtaiyazur Rahman
Vinay please explain properly.
Vinay Lakhotia
What we have guided is that over a period of next four years, at least 250 employees are retiring.
So even after considering the replacement costs, we see a cumulative saving of roughly around INR 65 – 70 crore in our employee cost over a period of next four years.
So next four years the saving is INR 65 – 70 crore on a cumulative basis.
And after a period of four years, the saving will be in the range of around 10% to 15% of our annual wage bill.
Vinod Rajamani
Understood, thanks so much.
Those were my questions, thanks a lot.
Imtaiyazur Rahman
One more point which is important for me to share, in case of any appropriate sizing of manpower we have in reserve some money with us to use for the right sizing of the team, which will not get be charged to the profit and loss account to some extent.
Moderator · Conference Operator
Thank you.
Our next question is from line off Ravin Kurwa from ICICI Securities.
Please go ahead.
Ravin Kurwa
I just wanted a breakup of revenue for subsidiary company and if it’s possible can I have the revenue, expenditure and operating margins as a percentage of AUM numbers?
Surojit Saha
In respect of the total income, I can inform you it’s INR 450 crore in respect of UTI AMC, RSL it is around INR 8 crores, UTI Capital Private Limited it’s around INR 5 crores, UTI Venture, it’s very small it’s around INR 8 lakhs because there are no schemes and we are merging it with UTI Capital.
UTI International it’s around INR 98 crore.
Ravin Kurwa
Okay, thank you.
And in terms of the revenue and expenses and operating margin as a percentage of AUM.
Can you just give us those number?
Vinay Lakhotia
The revenue margin number for September quarter is roughly around 47 basis points and PAT margin number is around 23 basis point.
Moderator · Conference Operator
Thank you.
Our next question is from the line of Viraj Kacharia from Securities Investment Management.
Please go ahead.
Viraj Kacharia
I just had a couple of questions.
You said that we would now be on all the bank distributors.
So, in terms of the distribution we are there, at least now there across all platforms.
Do we see any avenues in terms of, either growth through IFA or for the additions of national distributors?
Will that be a growth area for us or we are now pretty much adequately covered and focus is more on better utilization of the distribution?
Imtaiyazur Rahman
We are utilizing all channels, national distributors like NJ and others, they are our partners.
One year back we didn’t have engagements with them.
They have started distributing our product.
Banks have started distributing our products and we are on their platform.
So, whether it is IFAs, bank channel, national distributors, or the regional distributors, we are using all channels to distribute our products, including FinTechs.
Plus, to serve the institutional clients, we have our own dedicated channel.
But for the retail and HNIs, we are using the bank channel, the national distributors and IFAs to distribute our products.
Viraj Kacharia
Sure sir.
So, what is typically your approach with these distributors, are we going with sale or a slightly higher commission than the market and trying to get more funds?
What is the larger focus area when you are talking about raising funds through these channels?
Imtaiyazur Rahman
Regarding the pricing, Vinay will share with you but so far as our strategy is concerned, UTI brand is a household name and the oldest brand in the country.
And most important thing to place is our performance, our processes and our team.
I would like to make a long term, successful and winning organization.
And for that, the brand and performance matters, our processes matters.
And indeed, the pricing also plays some role, Vinay can you share some of your thoughts on the pricing please?
Vinay Lakhotia
Sir, pricing is almost a standardized pricing formula ranging from around 50% to 70% to 75% of the total expense ratio that is being shared by the manufacturer to the distributor.
50% is the lower end to the IFA category, and 70% to 75% to a bank and a national distributor.
On the pricing part, just one point to highlight, we do have a slightly competitive advantage as compared to some of the other bigger players, because we have only just one scheme, which falls above the INR 10,000 crore AUM category, rest all schemes are slightly below the INR 10,000 crore AUM category.
So we do have flexibility of charging a slightly higher expense ratio and sharing the same with our distributor.
If I compare my AUM vis-à-vis the other schemes which are at INR 20- 25,000 crore, I do have a pricing advantage of around 5 to 10 basis points.
Viraj Kacharia
Okay and this 50 to 75% sharing which we talked about with IFA, how does that compare with the industry norms?
Vinay Lakhotia
It’s a very standardized pricing formula across all the players.
Viraj Kacharia
Okay, just two more questions.
On the pricing part, somewhere in the early part of the conversation you talked about when the TER cut in equity happened, we kind of absorbed bulk of the impact.
So, if you look at our overall revenue either way, we are at the lower end compared to other players in the industry.
This kind of sets very different set of expectations among IFAs other distributors, especially on the next TER cut if it happens.
So, what is the broader thought process about why we kind of absorb a larger part of that?
Vinay Lakhotia
Let me kindly correct it, absorption happened only at the time when there was a reduction in the exit load pricing of 5 basis point.
At that time, UTI AMC absorbed but when the TER cut happened in the month of October 2018, the entire cut of around 8 to 9 basis points was passed on to our distributors in form of a reduced commission, both on the stock region as well as fresh inflows going forward.
So, we did pass on a TER cut of total amount of roughly around INR 60 to 65 crore to our distributors in October 2018.
Viraj Kacharia
Okay, this last question was on the other expenses.
So, you talked about us taking a couple of initiatives, one initiative we have been talking quite a lot about is the digitization part so what kind of investments we’ve been making in terms of P&L and what kind of savings we are going to see over a period of time for these investments?
Vinay Lakhotia
Sorry, could you repeat your question we could not get that.
Viraj Kacharia
So, we have been talking a lot on the digitization initiatives which we have been taking in last one, one and a half year and we made a couple of investments towards the same.
So, if you can just quantify what kind of investments in terms of P&L we have been making towards these digital initiatives, and what kind of savings do you expect over couple of years?
Vinay Lakhotia
The investment has already been made in these digital assets over the last two to three years.
Just to give one example, right now we have become a completely paperless office and as a part of our go green initiative, we have ensured that no paper is being printed and the entire document is in electronic format.
So, we do see a savings of roughly around 20% to 25% on these administrative line item expenses and as Surojit already mentioned the bulk of the other expense saving has come from a rental reduction, which could be anywhere in the range of around 10% to 15% of our total rental expenses for the last year.
Viraj Kacharia
Okay, can I squeeze in just one more question if I may.
We have been making couple of investments in different product schemes and different categories, so going forward, what is broadly our approach do we need more investment to support these products?
What will our approach be going forward into surplus cash?
Imtaiyazur Rahman
On the capital allocation, there are two pieces, one is if any growth opportunity comes in inorganic growth we will capitalize on the particular growth opportunity, but we have to expand our business and increase our AUM in our international business.
We have launched our Structured Debt Opportunities Fund II and we have given some commitment for the fund.
Also, we have got a very rich experience in managing the AIF equity side.
We have a very small fund now, which is also on the verge of closure, so we may develop the competencies and launch an AIF fund at an appropriate time.
Viraj Kacharia
Would these require significant investments going forward?
Imtaiyazur Rahman
It may not require very significant investment.
But, significant investment may be required if there is a growth opportunity that comes in an inorganic way.
Moderator · Conference Operator
Thank you.
Our next question is from the line of Madhu Gupta from Quantum Asset Management.
Please go ahead.
Madhu Gupta
I just have one question.
Your other income in the September quarter has declined by 19% and even for the half year it is down by 10%.
What is the reason for the same?
Surojit Saha
See this is not a decline as such, if you see from 220 to 200 basically it’s the foreign exchange income which was there in the Quarter two of 2019.
In the next quarter that is 2020, it has come under the expenses.
So it is basically because of the foreign exchange item, otherwise there is no reduction as such.
Moderator · Conference Operator
Thank you.
As there are no further questions from the participants, I now hand the floor back to Mr. Imtaiyazur Rahman for closing comments.
Over to you sir.
Imtaiyazur Rahman
Thank you so much for participating.
In case you have got any further questions, you can get in touch with us.
Thank you Inba for organizing.
Thank you.
Moderator · Conference Operator
Thank you members of the management.
Ladies and gentlemen on behalf of UTI Asset Management Company Limited, that concludes this conference.
Thank you for joining us and you may now disconnect your lines.