Aditya Birla Capital Ltd — Q4 FY26

Aditya Birla Capital Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=vBfjUtuJgkg Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call of Adita Berla Capital 0:08 8 seconds Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and 0:24 24 seconds then zero on your touchstone phone. I now hand the conference over to Miss Vishaka Mier, MD and CEO Adita Bila 0:32 32 seconds Capital Limited. Thank you and over to you ma'am. 0:37 37 seconds Thank you and good evening everyone and welcome to the earning call of Adista Bila Capital for Q4 of FYI 2026. 0:47 47 seconds Joining me today are senior members of my team Bala, Rakkesh, Pankach, Kamlesh, Mayang, Pingji, Vijay and he. I will 0:55 55 seconds cover our strategy financial and business performance followed by a discussion on performance of our key businesses by our business. 1:04 1 minute, 4 seconds Indian economy continues to demonstrate resilience amid heightened uh global uncertainty and supply chain disruption 1:11 1 minute, 11 seconds arising from the war. Underlying growth momentum in India's remains strong anchored on domestic demand and 1:18 1 minute, 18 seconds investment activities. While external volatility and energy prices pressures warrant close monitoring, inflation 1:26 1 minute, 26 seconds remains broadly manageable and policy contentions are stable. 1:32 1 minute, 32 seconds At Adita Capital, we continue to focus on driving quality and profitable growth by leveraging data, digital and 1:39 1 minute, 39 seconds technology. I'm delighted to share that in April we concluded our equity fund raise of 2750 1:47 1 minute, 47 seconds cr rupees in Adita housing finance from Advent International for the receipt of all requisite approvals. Now coming to 1:55 1 minute, 55 seconds the financial and business performance our consolidated profit after tax excluding the one-off items increased by 2:02 2 minutes, 2 seconds 30% yearon-year to 1,124 cr rupees in Q4 of FI26. 2:10 2 minutes, 10 seconds For the full year of FI26, including the one-off item, our consolidated profit increased by 21%. Our total consolidated 2:19 2 minutes, 19 seconds revenue grew by 12% year on year and uh 14% year on sorry uh 12% yearonear in Q4 2:28 2 minutes, 28 seconds of FI26 and 14% year on year in FI26. Moving to growth across businesses. 2:36 2 minutes, 36 seconds During the quarter, we built on our strong growth registry across our businesses seen in the previous quarters and strength further strengthen our 2:45 2 minutes, 45 seconds market position. Dispersement in NBSC business grew by 28% yearonear to rupees 24,950 2:53 2 minutes, 53 seconds cr rupees and in HSC business by 37% yearonear to 7,980 3:00 3 minutes cr rupees. In Q4 of FY26, our NBFC portfolio grew by 27% yearonear to 3:09 3 minutes, 9 seconds around 1.6 lakh cr rupees driven by growth in secured and unsecured businesses and personal and consumer 3:16 3 minutes, 16 seconds loans. SSA portfolio grew by 53% yearonear to about 47,450 3:24 3 minutes, 24 seconds cr rupees. In insurance businesses, we remain among the fastest growing companies. In FY26, the individual first 3:32 3 minutes, 32 seconds year premium for our life insurance business grew by 15% year-onear and gross return premium for our health 3:39 3 minutes, 39 seconds insurance business grew by 49% year on year. In our AMC business, the quarterly average uh mutual fund AUM grew by 14% yearonear to about 4.35 trillion rupees. 3:53 3 minutes, 53 seconds Moving to profitability, the strong growth across businesses was accompanied by increase in profitability 4:01 4 minutes, 1 second in NBSC business. The profit after tax increased by 27% yearonear to 825 cr 4:08 4 minutes, 8 seconds rupees in Q4 of FI26. The ROA increased by six basis point year and sequentially to 2.31%. 4:18 4 minutes, 18 seconds In HSC business, the profit after stat tax doubled year on year to 2200 cr 4:25 4 minutes, 25 seconds rupees in Q4 of FI26 and 647 cr rupees in FI26. 4:32 4 minutes, 32 seconds The ROA increased by 63 basis point year and 11 basis points sequentially to 2.07%. 4:41 4 minutes, 41 seconds Despite the changes in GST, there was an improvement in the profitability of our insurance businesses. In life insurance 4:49 4 minutes, 49 seconds business, our BND margin expanded by 260 basis point year on year to 20.6%. 4:57 4 minutes, 57 seconds And as in the health insurance business, our combined ratio improved from 105% in FY25 to 103% in FY26. 5:07 5 minutes, 7 seconds [clears throat] 5:08 5 minutes, 8 seconds Moving to quality of portfolio across our businesses. At AIDLA Capital, we follow prudent risk management practices 5:17 5 minutes, 17 seconds with a strong emphasis of return of capital. We we saw a strong quality trend across our businesses despite 5:25 5 minutes, 25 seconds volatile market conditions and uncertainties in the operating environment. The GS2 and GS3 loans in 5:32 5 minutes, 32 seconds NBSC businesses declined by 38 basis points sequentially to 2.4 42% and HSC 5:40 5 minutes, 40 seconds business decline by 19 basis points sequentially to 0.76%. 5:46 5 minutes, 46 seconds We have seen no material impact from geopolitical tensions in West Asia on our portfolio. However, we continue to 5:54 5 minutes, 54 seconds be watchful and will calibrate our strategy by closely monitoring the ongoing development. In our AMC 6:01 6 minutes, 1 second business, the per fund performance remains strong with over 75% of equity AUM in top two quartiles for one-year 6:10 6 minutes, 10 seconds returns. Moving to digital and technology, we continue to leverage data and technology as a grow as a core 6:18 6 minutes, 18 seconds growth enabler. AIX is now becoming a core operating layer for us and we are scaling up its users across various 6:26 6 minutes, 26 seconds areas such as underwriting, sales, voice calling, audit and compliance, customer service and operation. This will 6:34 6 minutes, 34 seconds significantly enhance customer experience, reduce turnaround times and improve productivity. Our business CEOs will take you through the select use 6:43 6 minutes, 43 seconds cases in more in detail. At AIAL Capital, we remain excited about the long and medium-term opportunities in 6:51 6 minutes, 51 seconds the Indian economy despite the near-term uncertainties and volatilities. 6:56 6 minutes, 56 seconds Our strategy, disciplined execution and building blocks that we have put in place give us a confidence to sustain 7:03 7 minutes, 3 seconds growth, gain market share and improve profitability while maintaining strong uh portfolio quality across our 7:11 7 minutes, 11 seconds businesses. We will continue to closely monitor the ongoing developments in the macroeconomic environment and take 7:19 7 minutes, 19 seconds appropriate interventions to recalibrate our strategy if necessary. Now I request Rakkesh to take us through um the 7:27 7 minutes, 27 seconds performance of NBFC businesses. Over to you Raish. 7:32 7 minutes, 32 seconds Thank you Vishaka and good evening everyone. I'm pleased to report a very strong close closing of the financial 7:38 7 minutes, 38 seconds year 2026. In quarter 4 FY26, our AUM reached to rupees 1 lak 59,916 7:47 7 minutes, 47 seconds crores reflecting a 8% quarteron quarter and 27% year-on-year growth. At this growth rate, we would be amongst the 7:55 7 minutes, 55 seconds fastest growing diversified NDFCs operating at this scale. Bottom line delivery remained robust with profit 8:02 8 minutes, 2 seconds after tax for the quarter growing 7% sequentially and 27% compared to the same period last year. We nearly doubled 8:11 8 minutes, 11 seconds our AUM in profits in the last three years demonstrating a track record of building a franchise that delivers industry-leading growth with strong commitment to scale profitably. 8:23 8 minutes, 23 seconds This year has been a remarkable journey for us and I would like to share a few milestones achieved. First, our AUM 8:31 8 minutes, 31 seconds crossed 1.5 lakh cr in SE with our focus segments retail and MSN AUM surpassing 8:38 8 minutes, 38 seconds one lakh cr. We delivered highest ever quarterly dispersement of rupees 25,000 8:44 8 minutes, 44 seconds crores up 16% quarteron quarter from an AUM growth standpoint in quarter 4 8:52 8 minutes, 52 seconds nearly 85% of the growth came from retail and MSME segments plus our proprietor B2B platform nearly 9:01 9 minutes, 1 second doubled in scale this year with its AUM crossing 5,000 crores from asset quality point of view our 9:09 9 minutes, 9 seconds credit cost was at 1.04% in quarter 4 is our lowest ever. Now coming to quarter 9:16 9 minutes, 16 seconds performance and starting with the new business sourcing. Our dispersement for the year was up 25% driven by strong 9:24 9 minutes, 24 seconds traction in retail and MSME our focus segments for growth. Together these segments accounted for 68% of the total dispersement and grew 33% yearonear. 9:37 9 minutes, 37 seconds This performance reflects sustained improvement in employee and branch productivity enabled by our deliberate 9:45 9 minutes, 45 seconds re-engineering of customer journeys end to end. Since the start of the year, turnaround time across retail and MSME 9:52 9 minutes, 52 seconds product journeys have reduced by over 30%. These games have been powered by deeper integration with digital public 9:59 9 minutes, 59 seconds infrastructure, efficient file processing, and upgrades to our underwriting platforms with best-in-class rule engines and refresh scorecards. 10:10 10 minutes, 10 seconds Collectively, this has improved the speed and precision with which we calibrate risk cohorts throughout the year, eliminating the need for manual 10:18 10 minutes, 18 seconds rework. This year we also expanded our MSME proposition with new product launches which has seen a very 10:26 10 minutes, 26 seconds encouraging response. In our personal and consumer business we see steady momentum returning with dispersement 10:34 10 minutes, 34 seconds growing by 60% for the full year to rupees 18,738 crores. As a result the AUM grew 8% 10:43 10 minutes, 43 seconds sequentially and 38% yearonear to rupees 21,432 cr. The mix in the total area improved by 106 basis point to 13.4%. 10:55 10 minutes, 55 seconds This portfolio has seen continued cohort corrections throughout the year. Also, initiatives such as use of AI calling BS 11:03 11 minutes, 3 seconds and behavioral analytics have led to higher front-end efficiency and nearly half the flow rates compared to last 11:10 11 minutes, 10 seconds year, resulting in superior asset quality outcomes. The gross stage two and three for the personal and consumer 11:18 11 minutes, 18 seconds loans portfolio reduced by 50 basis points sequentially and 260 basis point year only. Now stage three for the 11:27 11 minutes, 27 seconds segment stands at 1.3% as of March 2023. 11:33 11 minutes, 33 seconds In quarter 4 dis we dispersed rupees 12,023 crores to NSME registering at 21% 11:40 11 minutes, 40 seconds sequential growth. As a result, our MSNe book grew by 31% yearonear to rupees 91,451 11:48 11 minutes, 48 seconds cr comprising 57% share in the overall annual. Out of this 81% is secured and 11:57 11 minutes, 57 seconds 19% is unsecured. We continue to be a category leader in secured MSME segment in terms of growth and asset quality. 12:06 12 minutes, 6 seconds Our secured MSM AUM grew at 28 27% yearonear which is faster than the industry growth. 12:15 12 minutes, 15 seconds The asset quality for this segment continues to be healthy and bestin-class on the back of strong cash flows and the collateral. 12:24 12 minutes, 24 seconds The gross stage three for this segment stands at 1% around 20 basis points sequentially and 50 basis points year on 12:32 12 minutes, 32 seconds year. In our unsecured business loan segment, we saw the dispersement grow at a healthy 28% year on year in quarter 4. 12:42 12 minutes, 42 seconds This growth comes on the back of consistent risk cohort calibration and sourcing undertaken throughout the year. 12:50 12 minutes, 50 seconds Ruth in this segment benefited from new product launches which now comprise nearly 20% of fully year dispersement 12:58 12 minutes, 58 seconds with a proposition for professionals doing exceedingly well [clears throat] plus our proprietary MSN platform now 13:06 13 minutes, 6 seconds supports a full suite of trade credit solutions powered digitally and is recognized amongst the top non-bank finance on credit exchange. 13:17 13 minutes, 17 seconds This growth is also supported by strong improvement in asset quality with GS2 and GS3 down 90 basis points frequently. 13:27 13 minutes, 27 seconds Gross stage three for unsecured business loans stands at 1.4%. 13:33 13 minutes, 33 seconds 40% of the gross stage three book is covered under the government guarantee scheme excluding which the gross stage is at.9%. 13:43 13 minutes, 43 seconds Our corporate segment grew 3% quarteron quarter and 15% year on year. This segment now comprises 29% of our overall 13:52 13 minutes, 52 seconds portfolio in line with our strategy to focus on retail and MSN business. Asset quality in our wholesale business also 14:02 14 minutes, 2 seconds continues to improve their GS2 plus GS3 reduced by 60 basis point year on year. 14:08 14 minutes, 8 seconds Coming to portfolio quality at our entity level, our gross stage two and gross stage three stands at 2.4% 14:15 14 minutes, 15 seconds improving by 38 basis points sequentially and 136 basis points year on year. At these levels stage two and 14:25 14 minutes, 25 seconds stage three would be our lowest ever in the last five years. I further wish to highlight that about 72% of our book is 14:34 14 minutes, 34 seconds secured. Our overall stage three book is well provided with a PCR of almost 48%. 14:41 14 minutes, 41 seconds Which has improved by 358 basis point over last quarter. 14:46 14 minutes, 46 seconds The impact of improving asset quality is clearly visible on credit cost as well. 14:52 14 minutes, 52 seconds Our credit cost for the quarter reduced by 19 basis points to 1.04. 14:57 14 minutes, 57 seconds The full year credit cost reduced by 13 basis points to 1.18%. 15:03 15 minutes, 3 seconds In fact, our credit cost has been one of the lowest among diversified MDFC and lowest we have seen in the last five 15:11 15 minutes, 11 seconds years. Moving to profitability, our net interest income for the full year has increased by 18% to 8,170 15:20 15 minutes, 20 seconds cr. Net interest margin including fees was at 6.08 for the quarter and opex to 15:27 15 minutes, 27 seconds ratio for the quarter was 2%. In quarter four, we delivered profit after tax of 825 crores, registering a growth of 7% quarteron quarter and 27% year on year. 15:39 15 minutes, 39 seconds The full year profit grew 20% to 3,01 cr. The ROA for the quarter increased by 6 basis point 2.31. 15:48 15 minutes, 48 seconds We continue to invest in AI to transform how do we do business and I am happy to share our progress in realizing 15:56 15 minutes, 56 seconds measurable gains across scale productivity and customer experience across scale and servicing AIdriven 16:04 16 minutes, 4 seconds channel intelligence enables more autonomous interactions across voice 16:09 16 minutes, 9 seconds email and mobile by end FY26 65% of contact center calls and 71% % of 16:18 16 minutes, 18 seconds service emails were straight through past driving a seamless digital experience 16:25 16 minutes, 25 seconds for our customers. Unknown origination journeys are powered by AI to enable fraud detection by analyzing identity 16:33 16 minutes, 33 seconds data, digital footprints and behavioral signals in real time. flagging anomalies and strengthening onboarding and 16:42 16 minutes, 42 seconds underwriting decisions without adding manual friction. In credit and underwriting, AI and ML are embedded 16:50 16 minutes, 50 seconds across decision decisioning workflows, including AI co-pilots for credit assessment memos. This has improved 16:58 16 minutes, 58 seconds trade manager productivity, reduce underwriting turnaround times and strengthen consistency, governance and cohort monitoring. 17:08 17 minutes, 8 seconds In connection, GI powered bots enhance contactability, call quality and selfcure outcome. AILE 17:17 17 minutes, 17 seconds pre- delinquency management optimizes engagement, timing and channels supported by 100% call coverage and automated audits across operations. 17:28 17 minutes, 28 seconds Jenna use cases span revamp handling, agent upskilling, digital contracting, 17:36 17 minutes, 36 seconds automated letters and realtime service NPS operating efficiency and scalability. 17:43 17 minutes, 43 seconds Going to FYI 27 retail and MSME segments will continue to pivot our growth strategy. We will continue to deepen our 17:51 17 minutes, 51 seconds relationship with customers by offering relevant and timely solutions. We will further leverage our sourcing 17:58 17 minutes, 58 seconds capabilities through scaling up the new product variant and leverage our proprietary digital platforms like ABCD app and go plus for direct sourcing. 18:09 18 minutes, 9 seconds Overall, our approach remains consistent, grow responsibly, stay close to our customers and deliver steady long-term value for our stakeholders. 18:19 18 minutes, 19 seconds With that, I will now hand over to Pam Gardil, Indian CEO of the housing command. Thank you, Rakkesh and good evening everyone. Let me begin with the key highlights for FI26. 18:30 18 minutes, 30 seconds We recorded our highest ever dispersments of 25,32 crores, registering a growth of 44% by a while. 18:38 18 minutes, 38 seconds [clears throat] EUM has reached 47,42 crores registering a 53% buy 18:46 18 minutes, 46 seconds contribution of the ABG system stood at 17.4% of retail reimbursement phase 2 and three reduced to 76% 18:55 18 minutes, 55 seconds improving by 63 basis points by YT of rupees 832 crores increasing 98% by Y 19:04 19 minutes, 4 seconds and ROA at 1.88% 8% and ROE at 14.27%. 19:10 19 minutes, 10 seconds For more detailed financials, please refer to slide 31. 19:15 19 minutes, 15 seconds Now covering the strategic highlights and initiative. FI26 has been a pivotal year for the entire housing industry supported by strong structural 19:23 19 minutes, 23 seconds tailwinds, rising urbanization, improving affordability, and an increasing home ownership across income segments. At EPHSL, our guidance at the 19:33 19 minutes, 33 seconds beginning of F26 was to achieve an ROA of 2% to 2.2% over the next six to eight quarters. I'm pleased to share that we 19:42 19 minutes, 42 seconds have accelerated this journey with ROA at 2.07 because quarter of four FI26 supported by strong operating leverage 19:50 19 minutes, 50 seconds and discipline execution. Our digital transformation journey initiated in FI23 has delivered significant outcomes over the last three years. 20:00 20 minutes We have delivered 4x processing scale up in processing capacity 96% improvement in productivity and improvement from 21 20:08 20 minutes, 8 seconds days to 12 days and stage 2 plus three has improved from 4.9% in fi 23 to 76% 20:16 20 minutes, 16 seconds in fi 26 these outcomes strengthen our confidence and position us well to scale sustainably 20:24 20 minutes, 24 seconds now covering our outlook even the industry outlook and our performance so far they remain focused on consistent growth leadership with best-in-class 20:32 20 minutes, 32 seconds portfolio equality while remaining mindful of the micro environment. On distribution, we have undertaken a comprehensive assessment of our branch 20:41 20 minutes, 41 seconds footprint and identified high potential geographies to enhance both coverage and conversion. Accordingly, we plan to open 20:49 20 minutes, 49 seconds 100 plus branches in FI27 with expansion in tier two tier three markets to increase distribution width 20:56 20 minutes, 56 seconds and deepening penetration in metro and tan cities. 21:01 21 minutes, 1 second This expansion will support us to achieve a 1 lakh cr aum in the next 24 21:08 21 minutes, 8 seconds to 30 months. Tech, digital, and AI. As mentioned earlier by Vishaka, tech, digital, and AI continue to be core 21:16 21 minutes, 16 seconds pillars of our strategy. We're embedding AI across customer and operational journeys supported by structured capability building through global best 21:25 21 minutes, 25 seconds practices and internal immersion programs. Let me now briefly highlight a few use cases that are being implemented 21:32 21 minutes, 32 seconds across ADHF. thin wise for sales manager productivity using AI enabled doc assist to ensure the right documents are 21:40 21 minutes, 40 seconds collected up front for first time right login enhancing our industry first AI coparate finise for contextual objection handling 21:49 21 minutes, 49 seconds and predictability for our teams finite plus is being launched for enabling channel partners with instant knowledge 21:57 21 minutes, 57 seconds access resulting in higher counter share second fin engage This is for top of the funnel 22:05 22 minutes, 5 seconds engagement. This enables query handling from login to dispersement enhancing sales manager facet time and higher productivity. Third, fintelect. 22:15 22 minutes, 15 seconds This focuses on back office automation and faster credit decisions. Automated sufficiency and completeness checks. 22:22 22 minutes, 22 seconds Example bank statement period valation, cross document consistency check such as DO. AI generated insight and decision 22:30 22 minutes, 30 seconds and memos to support faster underating decisions. Fourth, fins assist enhancing customer experience. This enables 22:39 22 minutes, 39 seconds contextual customer interactions driving of 40% reduction in repeat calls and a measurable uplift in net promoter 22:46 22 minutes, 46 seconds scores. In summary, in FI27, we expect NI and trade cost to be rangebound. 22:54 22 minutes, 54 seconds Growth led by capacity and productivity will continue to drive operating leverage leading to an ROA of 2.1 to 2.2%. 23:02 23 minutes, 2 seconds Thank you for the attention and with this I now hand over the call to Bala MD and CEO of our asset management company. 23:10 23 minutes, 10 seconds Thank you Pankage and thank you and good evening to everyone. uh at the ABSC our assets and management including 23:17 23 minutes, 17 seconds alternative assets stands at 4.14 crores 4.7% yearon year our mutual fun 23:25 23 minutes, 25 seconds quarterly average assets at 4 lakh that is 36,000 crores for the next 14% yearon year increase within this our equity 23:33 23 minutes, 33 seconds mutual fund quarterly average at approximately 1.1 lakh 97 crores 30% yearon-year growth contribution for 23:41 23 minutes, 41 seconds March 26 improved 2,2004 crores growing by 11% quarteron quarter supported by 40 lakh 23:48 23 minutes, 48 seconds contribution coming from SAB account investor portfolio for March 2026 stood at 1.1 crores the new SAP registration 23:56 23 minutes, 56 seconds for the quarter at approximately 6 lakh going by 16% on a quarter quarter basis over the last year we have made 24:04 24 minutes, 4 seconds meaningful progress in further strengthening our investment team and sharpening our portfol construction process resulting in sustain improvement investment performance and stronger 24:12 24 minutes, 12 seconds investor confidence and consistent flows into our flagship fund. Moving to our alternate business, the PMS and AF category has maintained a strong 24:21 24 minutes, 21 seconds momentum complemented by comprehensive suit of credit offering. Our PMS and AF assets grew significantly from 300 24:29 24 minutes, 29 seconds crores in Q4 F25 to 3,570 crores in Q4 F26 over the previous year. ESIC mandate 24:38 24 minutes, 38 seconds account for approximately 2,400 as of March 26 PM including excluding ASIC 24:46 24 minutes, 46 seconds registered year growth of 14% reflecting healthy underlying momentum on the EPF mandate. We have signed all the agreements and are operationally ready 24:53 24 minutes, 53 seconds to receive the fund flows which will come up very very soon on the real estate am by 740 crores reaching 15% 25:03 25 minutes, 3 seconds year growth. We currently have fundraising underway for the real estate credit opportunities from series 2 foc 25:12 25 minutes, 12 seconds approval brownfield real estate project across cities. Our passive business is witnessing significant momentum between 25:20 25 minutes, 20 seconds average at 41 reflecting 25% yearon year growth and quart average 25:28 25 minutes, 28 seconds 16% on year significant outpacing the industry growth and an expanded base of 16.9 lakh folios supported by 25:35 25 minutes, 35 seconds diversified 54 product suit and we have invested in line with ABC businesses in strengthening our 25:42 25 minutes, 42 seconds technology and digital ecosystem with the launch of our new app and enhanced partner partner app. These platform 25:49 25 minutes, 49 seconds reflect our commitment to simplifying how our customers interact with us by making them more intuitive and transparent. And beyond infrastructure, 25:57 25 minutes, 57 seconds we built an AI foundation across our customer journeys through voice AI, WhatsApp integration and intelligent 26:04 26 minutes, 4 seconds chat bots that engage customers in ways that resonate with their preferences. 26:08 26 minutes, 8 seconds We're also happy to announce that we have incorporated our own facility international limited at G City and have 26:16 26 minutes, 16 seconds success obtained all the retail license to further strengthen our presence. 26:20 26 minutes, 20 seconds Moving to financials 23 revenue from operations are 485 crores as compared to 49 crores Q425. Q5 26:29 26 minutes, 29 seconds F23 operating profit is 22 crores as compared to 273 crores in Q4 25 and Q5 26:36 26 minutes, 36 seconds 23 profit after tax is 1987 crores as compared to 238 crores in Q4 25 for the full year the revenue from operation is 26:45 26 minutes, 45 seconds 1,84 crores as compared to crores operating profit was,51 crores as 26:53 26 minutes, 53 seconds compared 94 cr and profit after tax 975 crores as compared to 930 employ MD and CEO at life insurance company. 27:06 27 minutes, 6 seconds Uh thank you Bala and good evening to all of you. Quick highlights of the life insurance business at ABSI. Uh the overall industry registered a growth of 27:15 27 minutes, 15 seconds 10% in financial year 26 and the private life insurance industry growing at 12%. 27:20 27 minutes, 20 seconds During the same period EBSI lost a premium growth rate of 15% in the individual life insurance segment. The components of this growth for 27:28 27 minutes, 28 seconds proprietary business growing at 3% and the partnership business growing at 22%. 27:33 27 minutes, 33 seconds In the agency business, we focused on getting the retail part of our business better. And in our direct business, we continued our growth back on productivity. In our proprietary 27:42 27 minutes, 42 seconds business, the product mix is favorable for further growth. And in order to scale further, we are added 26 more branches. And with this, we now have a 27:49 27 minutes, 49 seconds distribution network of 450 plus branches across the country. 27:54 27 minutes, 54 seconds The partnership uh business grew at 23% came across all our existing 12 partner banks in the bank space. We now have a 28:02 28 minutes, 2 seconds healthy mix of private as well as as well as public sector banks and have banks that have both large national presence as well as ones that dominate 28:10 28 minutes, 10 seconds the retail space. Mind share in the large banks have grown and a large part of the smaller private sector as well as the public sector banks. We continue to 28:19 28 minutes, 19 seconds have a dominant mind share of their total business. At Access Bank, we started with being present in 25% of the 28:26 28 minutes, 26 seconds total business. And by the end of Q3 last year, we got access to more zones backed by our good performance in the bank. We will for this year have access 28:34 28 minutes, 34 seconds to more than 50% of the business of the bank. The partnership business has a balanced product mix with margins going 28:41 28 minutes, 41 seconds up through the year for all banks. We now have 12 bankups and we will continue to expand our bank presence further going forward. 28:51 28 minutes, 51 seconds The product mix of the individual business traditional business including protection increased to 67% and unit came down to 33% helping expand margins 29:00 29 minutes for the year and you're seeing a healthy growth in the IoT segment with 10% of our ETL business coming from this 29:07 29 minutes, 7 seconds segment. Now in the group life insurance segment the private industry grew by 24% and overall industry grew by 19%. Like 29:15 29 minutes, 15 seconds we have mentioned in previous quarters too, we have had a calibrated approach to interest rate sensitive business this year which saw us drow in the first half 29:23 29 minutes, 23 seconds of the year. We are happy to share that for the full year we have grown by 31% enabling us to get back to rank four in 29:30 29 minutes, 30 seconds the group life insurance business. A large part of this business for group has come from the profitable unit business. We continue to be at rank two 29:39 29 minutes, 39 seconds in the UIP AM in the industry with an AM size of 16,000 plus crores in the group business. Credit live business delivered 29:47 29 minutes, 47 seconds strong growth of 40% during financial year 26 supported by all partners and with 33% now of our business coming from 29:55 29 minutes, 55 seconds the captive channels of our own NDFC as well as how we finance in the group termized insurance business we continue 30:03 30 minutes, 3 seconds doing uh business at 18 to 20% roe and with a very healthy renewal book group now contributes 26% of the overall a 30:12 30 minutes, 12 seconds 29,000 cr total preview for financial year 26 stand at 24,779 30:19 30 minutes, 19 seconds crores up by 20% from last year. The 13-mon persistency for us uh grew in the last quarter reaching a healthy 86.1% 30:28 30 minutes, 28 seconds for the full year. Annual premium grew by 17% with growth across individual as well as the group life insurance segment. Our digital collections now account for 83% of our annual premium. 30:39 30 minutes, 39 seconds We continue to work on customer lifetime value which is reflected in our upsell ratio of 32%. 30:45 30 minutes, 45 seconds On quality parameters, our overall customer NPS now stands at 66 compared to 59 last year. Our opex to premium 30:52 30 minutes, 52 seconds ratio stands at 21.2% including the GST and the labor law impact for the year. 30:58 30 minutes, 58 seconds Total AM now stands at 1 lakh 10,5 cr with the Y growth of 11%. 22% of this AM 31:06 31 minutes, 6 seconds is in equity and the balance 78% in debt. On daily basis, more than 82% of our funds continue to outperform as compared to the respective benchmarks. 31:16 31 minutes, 16 seconds Our digital adoption across various areas is demonstrated with the invested in slide 48. 100% of the new business customers are onboarded digitally. 83% 31:26 31 minutes, 26 seconds of all our services are now available digitally. 67% services are STP and our customer self-service ratio now stands at 94%. 31:35 31 minutes, 35 seconds In addition insurance, we are bringing our AI initiatives together under a focus program we call surus.ai 31:43 31 minutes, 43 seconds designed to improve how we operate across policy issuance, underwriting and servicing. Through SURS.AI, we are reducing manual effort, enabling faster 31:51 31 minutes, 51 seconds underwriting decisions and making policy issuance and servicing more responsive especially through AI handling of 31:59 31 minutes, 59 seconds conversations across email, calls and WhatsApp. We are also equipping our advisers with better insights and tools to improve productivity and customer 32:07 32 minutes, 7 seconds engagement. The focus is clear. Use AI to enhance human judgment not just replace it and drive greater speed, 32:16 32 minutes, 16 seconds consistency and quality in everything that we do. 32:20 32 minutes, 20 seconds on value uh uh performance parameters or solveny stands at 1.78 or 178%. 32:28 32 minutes, 28 seconds Mitted value is now at 15,447 crores which grew at 12% with an ROV of 13.2% for the year. Our net margins like 32:37 32 minutes, 37 seconds Vishaka mentioned are now at 20.6% 160 basis points higher than last year at 18%. We observed margin expansion due 32:46 32 minutes, 46 seconds to a controlled ulip mix and increase in protection and annuity mix. Apart from heavy rider attachments, the traditional 32:54 32 minutes, 54 seconds business did see an uptake in margins on account of favorable interest rate and the steepness of the yield curve to the second half of the year. This partially 33:02 33 minutes, 2 seconds helped margins and partially helped us offset the GST impact for the year. Our guidance continues to grow the individual FIP at a c of 20% plus for 33:10 33 minutes, 10 seconds the next three years. As far as achieving this growth, we intend maintaining our current BNB margins in the 18 to 20% range and in absolute 33:19 33 minutes, 19 seconds numbers double the value of our net BNB in the next three years time. With this, I hand over to Mike DO for health insurance. 33:28 33 minutes, 28 seconds Thanks. And let me now share an overview of the performance of our health insurance business. It was a very interesting year for the insurance sector. reduction in GS8 and then new 33:37 33 minutes, 37 seconds insurance acts being brought towards transition to RF supporting from FI27. 33:44 33 minutes, 44 seconds Our view is that all change is supportive for sector's long-term growth but with some issues to address in the short term. Presenting our performance, 33:51 33 minutes, 51 seconds we continue to build on growth momentum in maintaining our position as a fast and growing Sah player during the entire year. For FI26, as per the old 34:00 34 minutes accounting regulation, we achieved the growth minimum of 7292 crores representing a strong 39% YI growth. 34:07 34 minutes, 7 seconds Even on a 1 byN basis, our gross min55 crores, reflecting similar 39% growth. 34:15 34 minutes, 15 seconds Our market share thus entities have moved from 12.6% 6% to 13.7% in Y increase of 110 basis points. 34:25 34 minutes, 25 seconds We grew strongly across both retail and group businesses. The retail franchise experienced a large 43% Y growth and it continues to be diversified across 34:33 34 minutes, 33 seconds retail distribution channels. The proprietary channel with an agent base of over 1.86 lakh registered a 36% 34:40 34 minutes, 40 seconds growth. All our major bank and distin alliance partnerships also experience good growth. Our corporate business 34:47 34 minutes, 47 seconds delivered a growth of 35% in the last year driven by our focus and disciplined strategy to create a sustainable 34:54 34 minutes, 54 seconds franchise in the segment. As we shared earlier, we have now taken a differentiated health first model to profit also and we are seeing very 35:01 35 minutes, 1 second positive response from them. On the documentary front, our net profit for FI26 to that 39 crores as per the new 35:08 35 minutes, 8 seconds accounting regulation profit includes an impact of new labor code and net GST impact of close to 40 35:15 35 minutes, 15 seconds plus cringing regulations without 1 by the net profit for FI26 was at 85 crores. A combined 35:23 35 minutes, 23 seconds ratio for FI26 under the old accounting regulations was at 102%. 35:29 35 minutes, 29 seconds And the new accounting framework under the 1 byN the ratio was 103% versus the 35:35 35 minutes, 35 seconds 105% on a comparable basis. These improvements underscore our continued focus on new economics and thus overall 35:42 35 minutes, 42 seconds profitability ahead of industry. We believe our robber growth and superior economics didn't enable by our digitally enabled and health first model. We 35:51 35 minutes, 51 seconds continue to help us grow ahead of the market. 35:54 35 minutes, 54 seconds Our health first model is resonating with our consumers with nearly 40 to 45% of our consumers, retail consumers engaging with us for their health where 36:03 36 minutes, 3 seconds we use an AIdriven consumer engagement engine. 11.25% of our eligible consumers earned good health based incentives 36:11 36 minutes, 11 seconds which we call health return up from 9% last year reflecting a very deep engagement with our wellness ecosystem. 36:18 36 minutes, 18 seconds These consumers continue to exhibit 8% lower loss ratio and 11% better persistency on an absolute basis and these are shown in slice 59 and 16. 36:29 36 minutes, 29 seconds Similarly, investments in managing customers with high health risk to interventions with more than more than 270,000 lives have led to improvement in their loss ratios of more than 7 to 8%. 36:41 36 minutes, 41 seconds Overall, this has helped keep our loss ratio well under control. 36:46 36 minutes, 46 seconds We believe this business model which now other competitors are also trying to look at seriously but needs a large investment commitment and consistent 36:53 36 minutes, 53 seconds efforts over many years to mature gives us a large competitive advantage that we scale further including the corporate 37:00 37 minutes side of our business. We have progress for insurance focuses on claims experience where we have made investments in the state of 37:07 37 minutes, 7 seconds our AIML driven claims aggregation engine which continues to enhance both customer satisfaction and also eliminate 37:15 37 minutes, 15 seconds leakages and wastages. We now process more than 25% of our pre requests straight through with no human intervention. 37:23 37 minutes, 23 seconds Similarly, we are investing consistently in data analytics capabilities to create efficiencies across the business life cycle. 37:31 37 minutes, 31 seconds for some for example apart from claims as I shared earlier usage of geni helped bring in 35 to 40% productivity 37:39 37 minutes, 39 seconds improvement in underwriting alone use agentic AI extensively in renewals management leading to significant cost reduction but also better customer 37:47 37 minutes, 47 seconds confidence leading to very good traction in the renewals investment capabilities across consumer health and insurance life cycle has helped us to use our 37:56 37 minutes, 56 seconds consumer app active health to create very high consumer engagement it has led to for AMU crossing six lakhs consumers. 38:03 38 minutes, 3 seconds We continue to remain very optimistic for our business and FI2 27 marks a significant milestone for APHI as we 38:11 38 minutes, 11 seconds enter our 10th year of operations. We will continue to invest more in our proprietary distribution franchise work towards 100% core and scale our 38:20 38 minutes, 20 seconds differential health first approach and also even more deeply embedding AI in emerging tech in our business. We believe we are well positioned to 38:28 38 minutes, 28 seconds outform the market and deliver sustainable value. Thank you and I'll now hand it back to Vishaka for a closing remark. 38:35 38 minutes, 35 seconds Thank you May. And this concludes our remarks on Q4 FI26 performance and we'll be very happy to take if there are any questions. 38:45 38 minutes, 45 seconds Thank you very much. 38:48 38 minutes, 48 seconds We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchstone phone. 38:56 38 minutes, 56 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking your question. 39:07 39 minutes, 7 seconds Ladies and gentlemen, we will wait for a moment while the question ends. 39:14 39 minutes, 14 seconds Your first question comes from the line of China from ICICI securities. Please go ahead. 39:21 39 minutes, 21 seconds Uh yeah. uh thank you for the opportunity and congratulations on the quarter. Uh so this uh first question uh 39:29 39 minutes, 29 seconds on the uh margin uh so margin on the NBS business uh the margins have actually compressed 39:38 39 minutes, 38 seconds like almost four bits uh and uh this is despite like uh strong growth seen in the unsecured business as well and this unsecured growth has been kind of 39:47 39 minutes, 47 seconds continuing since the last two quarters now. So uh where do we see when do we see the margins improving? Uh so also 39:56 39 minutes, 56 seconds can you give the delta between secured and unsecured fees? Yeah that's the first question. 40:04 40 minutes, 4 seconds So uh Chintan if you look at uh [clears throat] the margins have been more or less stable over the previous 40:11 40 minutes, 11 seconds quarter you would see from quarter one the quarter one uh of last financial year the margin was 5.97 which which is 40:20 40 minutes, 20 seconds around 6.08 08 as you rightly mentioned likely four basis point down because there were some MPN losses and all which 40:29 40 minutes, 29 seconds were there as we grow our unsecured business you're right that last couple of quarters the unsecured business is 40:37 40 minutes, 37 seconds growing uh our unsecured person and consumer is still 13.4% of our overall uh product mix um which used to be 19%. 40:49 40 minutes, 49 seconds uh our unsecured business which is also higher yield compared to the overall portfolio that is at 11%. So combined 40:58 40 minutes, 58 seconds together unsecured business and personal and consumer is around 23.4%. 41:06 41 minutes, 6 seconds But if we improve both these segments even by two 200 basis point in the next uh two three quarters we will see 41:14 41 minutes, 14 seconds expansion of margins by almost um 25 30 basis point. So that's how we are really 41:21 41 minutes, 21 seconds looking at in terms of improving uh and we did this calculation in terms of uh if the growth uh sustains at the current 41:29 41 minutes, 29 seconds level then what uh what is the kind of margin we can look at. 41:38 41 minutes, 38 seconds Uh sure uh but correspondingly with the rise in margins also I think credit cost seems to be at almost historical low. So 41:47 41 minutes, 47 seconds there could be also some normalization expected here plus uh growing in the unsecured piece would also entail a higher credit cost requirement. So 41:55 41 minutes, 55 seconds probably mean I'm just trying to understand in terms of ROA expansion. So as you already mentioned 2530 on the 42:03 42 minutes, 3 seconds margin front and somewhat probably normalization on the credit cost front. 42:07 42 minutes, 7 seconds So what could be the RO which would be we could be looking at in uh 27. 42:13 42 minutes, 13 seconds So we are looking at by end of this year we are looking at uh 2.5% ROA this is what we are looking at and as I said the 42:22 42 minutes, 22 seconds margin expansion uh is is the one way in terms of achieving that and your point on credit cost yes the credit cost of 42:31 42 minutes, 31 seconds 1.04% 04% is the lowest for us and as we grow our unsecured business so we expect 42:38 42 minutes, 38 seconds this to we have always guided that it will be in around 1.2 1 point so I think 42:45 42 minutes, 45 seconds 1.1 to 1.2 do kind of a range it will remain in the similar range is what uh we even even secure business grow. 42:58 42 minutes, 58 seconds Okay. Sure. And lastly on the AI front uh I think we have we talked a lot about AI and we probably seems to be making a 43:07 43 minutes, 7 seconds favorable investment. So ultimately means what is the probably result kind of expected from this. So I think a 43:14 43 minutes, 14 seconds margin of the credit cost is already at historical low. So probably won't delta won't come much from that front also 43:22 43 minutes, 22 seconds names we expecting it to improve that is largely due to change in the mix. So OPEX is likely to further model due to AI or is it the customer quality which 43:30 43 minutes, 30 seconds is likely to improve. So yeah some thoughts on that with you. Thank 43:40 43 minutes, 40 seconds in terms of if you look at underwriting uh I think stages can come down in terms of earlier if there were multiple stages 43:48 43 minutes, 48 seconds that can come down and that has improved that turnar around time which I spoke about in my opening remarks. 43:55 43 minutes, 55 seconds So clearly the customer experience uh these things will improve uh significantly and which is improving we are seeing our net promoter score both on on boarding and service going up. 44:06 44 minutes, 6 seconds Selfcure on collections uh has uh has significantly improved uh in terms of because of the 44:15 44 minutes, 15 seconds usage of AI and bots. So across we should see um branch productivity and 44:23 44 minutes, 23 seconds employee productivity improving customer experience improving in terms of your uh 44:29 44 minutes, 29 seconds opex um it's it's if you see for the full year it's 1.93 44:36 44 minutes, 36 seconds for the quarter it's 2%. So it's it's one of the better cost income ratios in the industry. we will see that what 44:45 44 minutes, 45 seconds efficiency we can draw uh on this line as well. 44:51 44 minutes, 51 seconds Uh so this is really helpful. I'll get back in with you for further questions. 44:55 44 minutes, 55 seconds Thank you and all the very Thanks. Thank you. 45:02 45 minutes, 2 seconds The next question comes from the line of Juan Ga with Sean Field. Please go ahead. 45:13 45 minutes, 13 seconds for the opportunity. 45:20 45 minutes, 20 seconds Your line is quite I request you to use. 45:30 45 minutes, 30 seconds Sorry, it is still not so your line is muffled. 45:38 45 minutes, 38 seconds No, this is slightly better. Management, are you able to hear the participant clearly? 45:47 45 minutes, 47 seconds Not with absolute clarity. Uh uh Mr. 45:55 45 minutes, 55 seconds Okay, please go ahead. 46:00 46 minutes Yeah. On the margin, uh just want to follow up on that. uh so you know what 46:07 46 minutes, 7 seconds market can define our uh unsecure class and cost mix have run 46:14 46 minutes, 14 seconds up to percentage point year uh but the margin of you know 46:21 46 minutes, 21 seconds year I just want to understand why hasn't the increase in the open 46:29 46 minutes, 29 seconds result in the margin secured and personal. 46:35 46 minutes, 35 seconds Yeah. So I think uh if I understood your question right, you are talking about that unsecured has grown and our margins 46:44 46 minutes, 44 seconds uh in terms of reflection on the margins u what I mentioned for my earlier 46:52 46 minutes, 52 seconds question response also is that the overall product mix if we look at that is still at 13.4% 4% personal and 47:01 47 minutes, 1 second consumer was at 13 13% and still at 13.4%. So all other segments have also 47:08 47 minutes, 8 seconds grown quite well. So still product mix is uh it's earlier we used to have 19% 47:15 47 minutes, 15 seconds our personal and consumer used to be 19% of our overall portfolio which two years back we had calibrated we are coming 47:22 47 minutes, 22 seconds back with the growth. in the next two three quarters we as it keeps growing as I mentioned by every 200 basis point 47:30 47 minutes, 30 seconds improvement there will be a margin expansion the way we see it in this business so I think uh if it continues 47:38 47 minutes, 38 seconds to grow at the the current rate if you see last quarter we have grown by 8% quarter on quarter and if that continues 47:45 47 minutes, 45 seconds in the next uh two three quarters we will see the margins expanding Got it. Thank you very much. 47:56 47 minutes, 56 seconds Thank you. Thank you. 48:01 48 minutes, 1 second The next question comes from the line of Ain Singh from MK Global. Please go ahead. 48:08 48 minutes, 8 seconds Yeah. Hi. Uh good evening. Uh thanks for the opportunity. A couple of question. 48:12 48 minutes, 12 seconds The first one is on your credit cost. uh I mean performance uh FY2600 very great 48:19 48 minutes, 19 seconds and you are guiding again despite increasing unsecured keeping it 1.1 to 1.2%. 48:27 48 minutes, 27 seconds Uh can you just help us I mean what is your kind of a base case assumption behind this 1.1 to 1.2% guidance in 48:34 48 minutes, 34 seconds terms of the current conflict because this current conflict is of course on current scenario and that sort of a is dragging on. So based on your kind of 48:43 48 minutes, 43 seconds assessment what in your basic assessment were you are guiding for this 1.1 to 1.2%. And the first question is on if 48:50 48 minutes, 50 seconds you were to look I mean at the margins uh the kind of a diversified business you have the of course I mean uh you are 48:58 48 minutes, 58 seconds the leaders in opex and create cost is really impressive and that's why of course you allow me to operate a slightly lower margin but when you are talking of margin expensive large is my 49:08 49 minutes, 8 seconds product mix. So based on the uh market dynamics and competitive analysis says uh can you sort of indicate where are 49:16 49 minutes, 16 seconds you versus competition in terms of you know e you know e is it I mean uh that 49:22 49 minutes, 22 seconds you are pricing it lower or it is kind of a parity to some of the you know midside bank or the large NDFC that 49:31 49 minutes, 31 seconds operates. So I mean how are you placed versus competitive uh dynamics in this segment in terms of each you are offering because the kind 49:40 49 minutes, 40 seconds of you know uh one of the best co you have but the margins are kind of slightly uh it looks like they have 49:46 49 minutes, 46 seconds moderated. Thanks a uh your first question was how are we giving uh what is the base case in terms 49:55 49 minutes, 55 seconds of the trade cost uh which we are giving a guidance for. The reasons for that is almost 72 73% of our loan book is 50:04 50 minutes, 4 seconds secured and when I say secured is secured by a collateral which is not depreciating in nature which is 50:10 50 minutes, 10 seconds appreciating in nature majority backed by real estate collateral primarily theme ownersho 50:18 50 minutes, 18 seconds occupied uh residences offices so that's how uh and in terms of pricing uh if you look at and you 50:26 50 minutes, 26 seconds mentioned we compare quite well with the other NBFC in this segment um our yield 50:32 50 minutes, 32 seconds in this segment is almost 12.2 12 uh 12.2 odd%. So uh I think quite well priced. 50:44 50 minutes, 44 seconds What was the other question? 50:48 50 minutes, 48 seconds So this is what I'm in the secured if you look at is I think our pricing is quite well priced compared to the 50:56 50 minutes, 56 seconds industry and uh in terms of how the margins yes we have one of the best costs of borrowing best 51:05 51 minutes, 5 seconds uh uh best uh credit cost I think from here on as we still our personal and 51:12 51 minutes, 12 seconds consumer is pretty small in the overall product mix and uh so as I have been 51:19 51 minutes, 19 seconds saying 13% is our is our uh is our personal and consumer 51:27 51 minutes, 27 seconds which is a high E product for us and that is still 13% the moment it impro 51:34 51 minutes, 34 seconds improves every 200 300 basis point you will see a margin expansion in this uh 51:40 51 minutes, 40 seconds for for us and credit cost because still even 200 300 basis this point we go up 51:47 51 minutes, 47 seconds till 70% close to 70% of our loan book will be secured. So that's the reason we are quite confident on the credit cost 51:55 51 minutes, 55 seconds and with that change in the product mix expansion of margin. 52:03 52 minutes, 3 seconds Okay. Thank you. Thank you. 52:09 52 minutes, 9 seconds The next question comes from the line of Arun and from GM Financial. Please go ahead. 52:15 52 minutes, 15 seconds Hi uh hi for the location just a couple of questions. So one and I see look at the numbers for this quarter the OPEX 52:24 52 minutes, 24 seconds growth is has sharply outper growth and this is for the last three quarters as well and if you could give some light on 52:31 52 minutes, 31 seconds why this OPEX growth has been increasing and specifically for this quarter. Uh and another question would be despite 52:39 52 minutes, 39 seconds increasing the PNC exposure the AU numbers have been increasing but dispersement figures have been broadly flat for the PNC as well as the 52:46 52 minutes, 46 seconds unsecured space. So why is this also happening? So these are my two questions. 52:54 52 minutes, 54 seconds So, OpEx has been um we have been seeing u our investment in our retail uh retail 53:01 53 minutes, 1 second businesses and MSN business which we have been doing uh over the over the last uh few years and few quarters as 53:10 53 minutes, 10 seconds well. So that's that's the only reason which on the opex side we can we will as 53:17 53 minutes, 17 seconds I mentioned there will be some normalization which which will happen uh 53:23 53 minutes, 23 seconds so that's the reason on the opex uh but is there any specific reason for a sharp price in this quarter? 53:34 53 minutes, 34 seconds No there's no specific reason for that. Okay. Okay. Okay. 53:44 53 minutes, 44 seconds Thank you. I can also disperse please. 53:47 53 minutes, 47 seconds Yeah. So disbursement piece I'll tell you on the uh on the personal and consumer as we have been saying we are quite 53:55 53 minutes, 55 seconds calibrated in terms of how much uh we will disperse. So the dispersement is flattish. Yes. Um and we are looking at 54:04 54 minutes, 4 seconds a very very calibrated growth in the current environment on the unsecured business side. business last quarter 54:10 54 minutes, 10 seconds also I had mentioned that uh the there is a uh supply chain business and line of credit which we don't 54:19 54 minutes, 19 seconds include in our dispersement numbers um because that those are churning portfolios and that's the reason you 54:26 54 minutes, 26 seconds don't see that kind of a um numbers in terms of uh dispersment but 54:33 54 minutes, 33 seconds that adds to the AU Okay. Okay. 54:39 54 minutes, 39 seconds Some segment and some products which we don't count in our dispers. Okay. Okay. Excellent. 54:48 54 minutes, 48 seconds Thank you. Thank you. 54:54 54 minutes, 54 seconds The next question comes from the line of Midesh Jane from Invest. Please go ahead. 55:00 55 minutes Uh thanks for the opportunity. In housing plans also we have seen margin compression uh on a Q basis. So what is 55:07 55 minutes, 7 seconds the reason for that and what is the outlook for margins and ROA in the housing finance business for 27? 55:15 55 minutes, 15 seconds Yeah. So here so if you see the NI for Q3 Q3 NI was 5.22 perhaps and Q4 NI is 55:22 55 minutes, 22 seconds 5.03 observation in the 19th has gone down. If you build down it you know a bit deeper you see that uh the NIM 55:32 55 minutes, 32 seconds actually is 4.13 for quarter 3 and it is 4.0 zero sales for quarter four. So there's a six bit point difference 55:40 55 minutes, 40 seconds largely I would say the seasonality and also the competitive pressures and that side which has actually led to a bit you know decrease in quarter 4. You look at 55:49 55 minutes, 49 seconds the other income you know element there is 1.09% 9% that we got in Q3 and Q4 you got 0.97. Other income typically is a function of three important parameters. 55:58 55 minutes, 58 seconds One is of course the direct assignment that you do. Second is uh the insurance attachments that you make and uh you 56:05 56 minutes, 5 seconds know third is any repricing that you have to do you know for any BT outs that happen. So I'm happy to share that BTO outs are very consistent for us. So Q3 56:14 56 minutes, 14 seconds and CO there's no broad difference then DA is the slightly lesser because D typically you do for capital conservation typically and also for 56:22 56 minutes, 22 seconds sometimes mean you know ensuring that the your PBC mix is up to scale both these funds you're comfortable so D was slightly lower as compared to Q3 so that 56:31 56 minutes, 31 seconds was you know therefore there was you know some kind of a kind of a gap the insurance you know business attachment so the reason of the income being down 56:39 56 minutes, 39 seconds is essentially because the D has been low and last but not the least mark to market in Q4 was also there because you know some maturities are held to 56:47 56 minutes, 47 seconds maturity and the others are also linked to market. So all of us know how the G6 actually moved and there was you know some loss that we also mark to market. 56:56 56 minutes, 56 seconds So that is basically the reason why we see uh you know the overall NI 5.03 versus 5.22 as I mentioned earlier you 57:06 57 minutes, 6 seconds know in my uh opening you know remarks we are estimating the NI to be NI to be range bound in this year. So they should be in the range of about 5.10 to 5.13. 57:17 57 minutes, 17 seconds Uh there will definitely be some compression in spreads but as you would know the capital you know has come in so there'll be some support that we'll have on the cop side of it. So that should 57:25 57 minutes, 25 seconds help us you know in maintaining the NI at the current levels that we are you know talking uh we are demonstrating operating efficiencies you as you would 57:34 57 minutes, 34 seconds have noticed versus uh last full financial year against 2.94 we've closed the year office to average 2.4% so it is 57:43 57 minutes, 43 seconds about a 50 points you know decrease so this year also we anticipate uh that number to be closer to about 2.10 10 and 57:51 57 minutes, 51 seconds uh you know this is coming at the back of the 100 plus branches that they're opening. So actually we are building an operating efficiency the net of you know 57:58 57 minutes, 58 seconds increase in the branches we expect the opex travel loan book to be in the range of about 2.13. So that leaves us with 58:05 58 minutes, 5 seconds 5.13 less you know 23 that is 3% and with the cost being at 28 basis points we should have preax of 58:14 58 minutes, 14 seconds 2.72 which should translate to an RO between 2.10 0 to 2.1 time that is you know what we're targeting you know right now and on credit cost you're finding 58:23 58 minutes, 23 seconds you know confident because you would look at the trajectory of the great cost uh both in absolute and in percentages we have come down so stage two plus 58:32 58 minutes, 32 seconds stage three for us is among the top two in the industry it is currently trending at 76 bas 58:39 58 minutes, 39 seconds and 32 bas stage two so having a very strong stage two performance gives a lot of confidence that the credit cost you know will be normalized and And 58:47 58 minutes, 47 seconds therefore you know our confidence of being in that RO trajectory of between 2.1 and 2.15 I think is you know where we are along with a very very robust you 58:55 58 minutes, 55 seconds know growth and that's why I spoke about the one lakh cr of the next 24 to 30 months. It's a very focus on asset quality and also growth. 59:05 59 minutes, 5 seconds Sure. Sure. And from a medium-term perspective, how do you see RO for housing and business? 59:11 59 minutes, 11 seconds Yeah. So, RO mentioned 527 RO will be in that range of 2.10 2.15 because currently the capital is you know has 59:19 59 minutes, 19 seconds come in. You would have noticed 2015 was you know coming in already. So naturally the RO will be lesser than the last financial year. It will be in that range 59:26 59 minutes, 26 seconds of about 11 12%. Currently we have 1427 at the end of the financial year. 59:32 59 minutes, 32 seconds The DB is becoming better and it continues to it will continue to rise because as you would have seen we have always been in the DY of about 6.5 6.4 59:41 59 minutes, 41 seconds 6.5. So as the years will progress in the next you know 24 months you'll see the RO is crossing 15%. That is you know our trajectory. 59:54 59 minutes, 54 seconds Sure. uh now in on life insurance there is a negative operating variance and assumption change variance. So what are the reasons for that? 1:00:03 1 hour, 3 seconds So uh in the bridge that you see uh that are uh we are on the verge of shifting from 1:00:10 1 hour, 10 seconds the IGA regime to the uh FRS regime. Uh and typically in an IFRS regime the conservatism that you have in your 1:00:19 1 hour, 19 seconds valuation interest rate actually does not uh unwind for you. So what we've done is we've revisited some of our 1:00:25 1 hour, 25 seconds assumptions uh as we build it uh for uh moving into the IFRS regime in the next one one and a half years. It's supposed 1:00:33 1 hour, 33 seconds to be uh 26 or 27. Of course we uh asked for a forbearance to say we will go to 1:00:39 1 hour, 39 seconds IFRS in year 27. Uh we had some uh changing assumptions on the reduced rate 1:00:47 1 hour, 47 seconds of benefits on some of our products. So that has got uh built in as we speak. So uh we are showing operating variance negative on account of uh these factors. 1:00:56 1 hour, 56 seconds But like I said the large part of the reason is on account of uh change of the assumption which we think when we move 1:01:03 1 hour, 1 minute, 3 seconds into from a I guess world to an IFRS world. Uh it may be a prudent step to do at this point in time. 1:01:13 1 hour, 1 minute, 13 seconds Sure. And uh these these assumptions are on which parameter consistency or 1:01:19 1 hour, 1 minute, 19 seconds largely or on parameters related to uh basically your portfolio getting a little better. So for the lapses that 1:01:27 1 hour, 1 minute, 27 seconds you assumed if they are lesser some of it because it is lesser than what you planned for you obviously need to bring in better reserving. Uh uh so some of 1:01:35 1 hour, 1 minute, 35 seconds the assumptions that you make if the experience does not turn out to be the same but in a way on a long-term basis it is good for the portfolio because you're seeing less latches. Obviously 1:01:43 1 hour, 1 minute, 43 seconds it'll contribute to the embedded value growth in in future times to come. Uh so you do this on an annual basis and we did this in the month of January. We do this every year. 1:01:53 1 hour, 1 minute, 53 seconds Sure. And in life insurance we have also been growing pretty well versus industry growth. How do you see growth uh next year FI27? 1:02:03 1 hour, 2 minutes, 3 seconds So like I said uh uh we've said maintain that we will definitely want to grow uh at 20% plus look at the kagger of the 1:02:11 1 hour, 2 minutes, 11 seconds lux insurance business the last two years in individual we've been at about 23 24 been our kagger for the last two years and in group we've been at about 1:02:19 1 hour, 2 minutes, 19 seconds 26 27. uh like I said as you get new banka infrastructure like I said access present in only about 20 25% of their 1:02:27 1 hour, 2 minutes, 27 seconds business for the whole of last year it will be close to about 50%. Uh so all of this will help us maintain that kagger uh for sure in the next uh two three years to come. 1:02:40 1 hour, 2 minutes, 40 seconds Sure. Sure. And last question is on NVFC. So uh have we seen a spread compression on a line of business basis because of overall margins have uh 1:02:48 1 hour, 2 minutes, 48 seconds there's a marginal decline in margin this quarter? Last quarter also I think margin there was slight dip. Uh there has been a mixed shift towards higher 1:02:55 1 hour, 2 minutes, 55 seconds ending portfolio but uh that is not uh uh visible probably the numbers have been marginally shifted but on a line of 1:03:03 1 hour, 3 minutes, 3 seconds business basis have we seen seen a spread compression basically in in secure business are we seeing a spread compression? 1:03:10 1 hour, 3 minutes, 10 seconds No nish we haven't seen any um competition. It's primarily the outcome of the product mix is what it is. Uh and 1:03:20 1 hour, 3 minutes, 20 seconds if you see from uh in quarter three the it has not compressed quarter 2 was 6.06 1:03:26 1 hour, 3 minutes, 26 seconds it improved to 62 it's uh 6.08 08 in this quarter and the 1:03:33 1 hour, 3 minutes, 33 seconds reason I mentioned one is uh yes quarter 4 is slightly more competitive and everything else but uh there was a MTM 1:03:42 1 hour, 3 minutes, 42 seconds loss because of the GTEC on the which had gone up that has impacted our margins uh by 34 basis points so because 1:03:52 1 hour, 3 minutes, 52 seconds we we believe it's quite stable and we should be able to improve from here. 1:03:58 1 hour, 3 minutes, 58 seconds Sure. Thank you. Thank you. That's it for my side. 1:04:02 1 hour, 4 minutes, 2 seconds Thank you ladies and gentlemen. Due to time constraints we will take this as our last question. I now hand the conference over to Miss Vishakam for closing comments. 1:04:13 1 hour, 4 minutes, 13 seconds So thank you again for joining us today evening and we look forward to keep in touch if there are any more questions. 1:04:19 1 hour, 4 minutes, 19 seconds Feel free to get in touch with any of us. Thank you. 1:04:24 1 hour, 4 minutes, 24 seconds Thank you on behalf of Aditya Berla Capital Limited. That concludes this conference. Thank you for joining us and you may now disconnect.