Aptus Value Housing Finance India Ltd — Q4 FY26

Aptus Value Housing Finance India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=16gQuJTE_lE Published: 5 days ago

0:00 Good morning ladies and gentlemen. I am Mikra moderator for this conference. 0:06 6 seconds Welcome to the earnings conference call of Aptress Value Housing Finance India Limited to discuss it results for the quarter and year ended March 31st 2026. 0:16 16 seconds This conference call may contain forward-looking statements based on the company's beliefs, assumptions and expectations as of today. These 0:25 25 seconds statements are subject to risks and uncertainties and actual results may differ materially. At this moment all participants are in the listen only 0:33 33 seconds mode. Later we will conduct a question and answer session. At the time if you have a question please press star followed by one on your telephone 0:42 42 seconds keyboard. Please note that this conference is being recorded. We have with us today Mr. M. Anand executive 0:50 50 seconds chairman Mr. P. Balaji managing director. Mr. CT Manuharan, Executive Director and Chief Business Officer and 0:57 57 seconds Mr. Sanjay Mitt, Chief Financial Officer. I would now like to hand the call to Mr. Anand for his opening remarks. Thank you and over to you sir. 1:07 1 minute, 7 seconds Thank you. Good morning ladies and gentlemen. I am Anand, executive chairman of Actor Value Housing Finance 1:15 1 minute, 15 seconds India Limited. I warmly welcome you all to the earnings call. 1:22 1 minute, 22 seconds We are very happy to present that our in that overall we have demonstrated 1:30 1 minute, 30 seconds resilience and robust business growth for Q4 as 1:37 1 minute, 37 seconds well as for FI26 and you know on Q426 as we saw strengthening of our growth momentum. 1:52 1 minute, 52 seconds aided by ongoing process improvements and technology enhancements 1:58 1 minute, 58 seconds alongside continued focus on credit quality credit quality. During the quarter we 2:06 2 minutes, 6 seconds delivered highest quarterly reimbursements of 1,242 crores. This has come despite not 2:15 2 minutes, 15 seconds sourcing any loans of less than seven lakhs of less than seven lakhs. Looking 2:22 2 minutes, 22 seconds ahead, we expect further uh improvement in this growth trajectory 2:30 2 minutes, 30 seconds given by expansion uh uh in New York states, entry into New York states, 2:36 2 minutes, 36 seconds Maharashtra and Wisa and deeper penetration in existing markets at channel augmentation, 2:45 2 minutes, 45 seconds higher average ticket size, calibrated lending rates on incremental loans. 2:52 2 minutes, 52 seconds and improved productivity. 2:57 2 minutes, 57 seconds Going further, we are very confident of maintaining a consistent growth of over 3:07 3 minutes, 7 seconds 20 plus percentage and best-in-class roe of 20% 3:14 3 minutes, 14 seconds plus with this and I'm Mr. 3:21 3 minutes, 21 seconds to take you through the business focus and key operating and financial parameters. Thank you. 3:29 3 minutes, 29 seconds Thank you sir. Good morning to all. To begin with I am happy to convey that we have delivered on our guidance across 3:38 3 minutes, 38 seconds key levers be it growth spreads costs and credit quality and will sustain this 3:45 3 minutes, 45 seconds trajectory in the coming years. During the year, in line with our intent to onboard higher quality customers, we 3:54 3 minutes, 54 seconds discontinued sanctions below seven lakhs. While this decision led to temporary moderation and dispersements 4:00 4 minutes in Q1 and Q2, we rebounded strongly in Q4. We witnessed this growth momentum continuing in April 2026 as well. This 4:10 4 minutes, 10 seconds has helped set a strong foundation for sustained business momentum and reinforced alignment of field execution 4:18 4 minutes, 18 seconds with our policies. Overall, the year reinforces our belief that affordable housing segment we operate in remains 4:27 4 minutes, 27 seconds structurally robust and has strong potential for growth. Growth remains our key focus area. To accelerate growth 4:34 4 minutes, 34 seconds momentum, we are executing a set of targeted high impact initiatives. The first one being geographical expansion. 4:43 4 minutes, 43 seconds We expanded our presence in the newer states of Maharashtra and Vadera in FI26 and sentenced our presence in existing 4:50 4 minutes, 50 seconds states as well leading to a branch network of 339. 4:54 4 minutes, 54 seconds On account of increasing indications from our new geographies and continued business momentum in our existing geographies, we are planning to open around 60 branches in FI27. 5:05 5 minutes, 5 seconds Increasing the next one being increasing the average ticket size partly driven by inclusion. Increasing our ATS is helping us onboard higher quality customers. 5:16 5 minutes, 16 seconds Optimizing the next one being optimizing lending rates across segments in line with our strategy to onboard higher 5:23 5 minutes, 23 seconds quality customers and aid growth further. We have optimized interest rates on certain loan ticket size 5:30 5 minutes, 30 seconds leveraging the benefits from lower borrowing costs and improvement in productivity. As the rate reduction is only for the incremental customers the 5:39 5 minutes, 39 seconds impact on the spreads or the ns is not very material. Fourth one is the connector channel. In addition to our 5:47 5 minutes, 47 seconds digital channels, we have expanded our connector partnership across branches. 5:52 5 minutes, 52 seconds While this is still at a nent stage, we expect this channel to evolve into a meaning meaningful growth driver over 5:59 5 minutes, 59 seconds time. Looking ahead, we expect to deliver sustainable ADM growth of 22 to 24% driven by these initiatives. Our 6:09 6 minutes, 9 seconds growth is anchored on four strategic pillars. First one is diversified mix. 6:14 6 minutes, 14 seconds The focus on self-employed customers across housing and business loans with strong presence in tier three and tire four towns. Then the next one is the 6:23 6 minutes, 23 seconds geographical expansion scaling beyond south into Maharashtra and Vita while deepening the core markets. Productivity 6:31 6 minutes, 31 seconds driving higher output through data systemdriven process. 6:36 6 minutes, 36 seconds Then the digital excellence leveraging technology across sourcing, credit and collections to improve speed, control 6:44 6 minutes, 44 seconds and efficiency. Now moving on to performance major performance highlights are as 6:51 6 minutes, 51 seconds follows. First when we first relating to business growth and scale, AM grew by 21% year on year to 13,17 crores. 7:00 7 minutes Disbburments in Q4 FI26 grew 17% yearonear and 21% quarteron quarter 7:06 7 minutes, 6 seconds to,242 crores. Disbbursement in FI26 grew 11% to 4,9 crores. Branch network 7:14 7 minutes, 14 seconds stood at 339 branches as of 31st March adding 39 branches in FI26. Now coming to the asset quality, the collection 7:22 7 minutes, 22 seconds efficiency stood at 100.5% versus 99.1% in the previous quarter. The improvement 7:29 7 minutes, 29 seconds in collection efficiency led to a dip in our 30 plus to 6.21% which was 6.48% in 7:35 7 minutes, 35 seconds the last quarter. We closed FI26 with a G&PA of 1.52% as against 1.19% in FI25. 7:43 7 minutes, 43 seconds The increase is primarily due to marginal increase in the NPA of NDFC. 7:48 7 minutes, 48 seconds Net NPA was 1.15% as against 89% in FI25. The credit cost for FI26 remained 7:56 7 minutes, 56 seconds at 50 basis points within our guided range. Now coming to the profitability during the quarter net income margin 8:03 8 minutes, 3 seconds grew by 24% yearonear to 434 crores. Our spread improved to 9% driven by decline 8:10 8 minutes, 10 seconds in cost of funds to 8.1%. Our opex as a percentage of remained at 2.8%. Profit 8:17 8 minutes, 17 seconds grew 26% yearonear to 261 crores translating into an ROA and ROE of 8.2% and 21.2% 8:26 8 minutes, 26 seconds among the highest in the industry. The profit for FI26 rose to 26 rows by 26% 8:32 8 minutes, 32 seconds to 943 crores. During the year we have declared a dividend of rupees four 4 rupees 50 pesa uh including the dividend 8:41 8 minutes, 41 seconds uh of 2 rupees 50 pesa that was declar declared in the board meeting held on 6th May 2026. 8:47 8 minutes, 47 seconds Now coming to the funding during Q4 we raised approximately 980 crores on a consolidated basis primarily through a mix of NCDS term loans and securization. 8:59 8 minutes, 59 seconds Our liability profile continues to remain well diversified with 58% from bank NDS at 15% securization including 9:08 9 minutes, 8 seconds CDs and VA at 19% and the balance through NHB which is at around 9%. 9:14 9 minutes, 14 seconds We continue to maintain strong liquidity position with total liquidity of 257 crores as of March 26 including,55 9:22 9 minutes, 22 seconds crores of ungrown bank sanction providing us ample headroom to support growth. Now with these remarks I open the floor for the question and answer session. Thank you. 9:35 9 minutes, 35 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please 9:42 9 minutes, 42 seconds press star N1 on your telephone keyboard and wait for attend to ask the question. 9:49 9 minutes, 49 seconds If you would like to withdraw your request, you may do so by pressing star N2. 9:55 9 minutes, 55 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 10:08 10 minutes, 8 seconds First question comes from the line of Sajir Mata from Yes Security. Please go ahead. 10:15 10 minutes, 15 seconds Yeah. Hi, good morning. Uh many congratulations on very strong numbers. 10:19 10 minutes, 19 seconds Uh sir, my first question is on uh you know your Tamil state growth. there is a good revival and I think we've been speaking about it that you are trying to 10:27 10 minutes, 27 seconds you know drive a revival there. So did anything change in terms of macro factor in terms of demand competition and 10:34 10 minutes, 34 seconds internally uh you know uh what what changed in terms of team stability team productivity which drove uh you know 10:41 10 minutes, 41 seconds good comeback growth in uh Tamil Nadu in this quarter. 10:46 10 minutes, 46 seconds Now if you look at Tamil Nadu uh the yearon-year uh loan book growth is around 14%. Uh but we of course we have 10:55 10 minutes, 55 seconds made structural changes in in terms of employing correct people and then retaining people in the in Tamil Nadalu 11:02 11 minutes, 2 seconds but still in Tamil is slightly high but still uh we are able to retain people which who are able to contribute the uh 11:10 11 minutes, 10 seconds business. Uh having said that in Tamil Nadu the competition is slightly higher and uh since we are there in Tamil Nadu 11:17 11 minutes, 17 seconds for last for 15 16 years uh if anybody wants to open up open a branch in uh Tamil Nadu the first thing they do is to 11:26 11 minutes, 26 seconds take people from us. uh so but still because of various incentive schemes which we have launched and uh based and 11:34 11 minutes, 34 seconds productivity based improvements and monitoring systems we are able to achieve this performance and uh going forward we are confident of getting this in place. 11:44 11 minutes, 44 seconds So now that 15 or 10 sequential traction that we saw which was very solid uh the momentum is now structural in nature 11:51 11 minutes, 51 seconds right that's what you're trying to indicate. 11:54 11 minutes, 54 seconds Yeah. Yeah. And sir, what is the incremental ticket sizes in home loans and LA quasi home loans uh that we are 12:03 12 minutes, 3 seconds now onboarding and what is the incremental lending rate? Uh and in the future how do you see the ticket size you know progress uh you know for us uh 12:12 12 minutes, 12 seconds which will help us in you know delivering better growth over the volume on the average ticket size whether it is the housing loan or quasi home loan or 12:21 12 minutes, 21 seconds small business loan that every year we want to increase this by one lakh. This is partly driven by inflation and also 12:29 12 minutes, 29 seconds uh it helps us onboard higher quality customers. So this is broadly the plan and we'll be able to hopefully we'll be 12:36 12 minutes, 36 seconds able to achieve this because uh the field executives and the branch managers are also aligned to this. So that is what that is what we'll be implementing. 12:47 12 minutes, 47 seconds Got it. Uh can I just ask one last question? Yeah. 12:52 12 minutes, 52 seconds Yeah. In terms of channel augmentation uh I mean when you say channel augmentation uh engagement with the connectors and all one is connecting more branches with the local connectors. 13:01 13 minutes, 1 second So where are we in you know in in terms of that you know setting the connection of you know branches in terms of number how many branches will then have 13:09 13 minutes, 9 seconds connectors network to go to for sourcing and uh how do we better engage with the connectors so that we get better volume uh in the local market. 13:18 13 minutes, 18 seconds In relation to channel augmentation, there are two things which we are pursuing other than the organic leads that is being generated by the sales 13:26 13 minutes, 26 seconds officers. So what is happening? One is the digital channel basically the referral app uh the customer referrals, the conception ecosystem referrals and 13:35 13 minutes, 35 seconds also the uh digital digital social media that is one thing which we are doing. 13:42 13 minutes, 42 seconds Over and above that uh what is uh we are also pursuing this connected channel. 13:47 13 minutes, 47 seconds this connected channel will be an additional channel over and above this uh organic leads that is getting generated by the sales officer. So every 13:55 13 minutes, 55 seconds branch manager has been assigned the responsibility to recruit connectors and they will get and they will be driving 14:02 14 minutes, 2 seconds the connector channel. So the leads that uh that are coming from the connectors will be passed on to credit and for other uh for further processing from the 14:11 14 minutes, 11 seconds branch manager uh point of view and that will be pursued. So that's the plan we have and we launched this sometime in 14:18 14 minutes, 18 seconds January and the traction is very good and hopefully this will get uh converted into a good uh channel augmentation uh process uh in the coming year. 14:30 14 minutes, 30 seconds Thank you so much. Best of luck. Thank you. 14:35 14 minutes, 35 seconds Thank you. Next question is from the line of Konal Sha from City Group. Please go ahead. 14:44 14 minutes, 44 seconds Uh Mr. Sha, your line is unmuted. Please proceed. 14:48 14 minutes, 48 seconds Yeah, thanks for taking the question. Uh so a couple of uh uh questions. One is on the collection efficiency side. 14:55 14 minutes, 55 seconds Generally like Q4 we see a strong buildup. Uh we have crossed 100 uh but still lower than past couple of years uh 15:04 15 minutes, 4 seconds in Q4. So is it like there is still maybe obviously we have put in a lot of efforts on the collection but um in any 15:11 15 minutes, 11 seconds of the regions or profile are we seeing a relatively slower uh uh recoveries that's the first question and secondly 15:20 15 minutes, 20 seconds on the offbalance sheet item uh so uh we have seen the offbalance sheet proportion going up. Uh so to uh that 15:28 15 minutes, 28 seconds extent uh when we uh so to that extent when we uh look at it on the offbalance sheet side uh what what is the kind of 15:35 15 minutes, 35 seconds scale up like last time you indicated to get to 6 to8 we have already crossed that so will we take the offbalance 15:42 15 minutes, 42 seconds sheet proportion further up rather than pure on bookum. Yeah, thanks. 15:48 15 minutes, 48 seconds The first thing on the collection efficiency, uh this is this 100.5% as you rightly said this quarter saw good 15:56 15 minutes, 56 seconds collections and this actually worked well. But if you look at the uh area wide uh thing 16:04 16 minutes, 4 seconds there are there are small issues in in the sense that uh uh so there are issues in collection which we are trying to 16:12 16 minutes, 12 seconds sort out uh through through building through strengthening the collection system there like recruiting more people and recruiting more monitoring people 16:21 16 minutes, 21 seconds and that kind of a thing. So uh other than that we are not finding any other uh place for it. You know just to add uh 16:29 16 minutes, 29 seconds on the collection there are on a product wise basis if you look at it you know around 23 our portfolio is in the HL and 16:39 16 minutes, 39 seconds about onethird in the NBFC beginners in the NBFC business the the colors are 16:45 16 minutes, 45 seconds slightly you know uh uh it's slightly lower in fact even in the NPA grass NPA 16:53 16 minutes, 53 seconds and NPA the NBFC related uh prisoners the you know the while the the total 17:02 17 minutes, 2 seconds average is 1.5 or 1.52 gross NPA the NP 17:09 17 minutes, 9 seconds and NBS related non-home related it is slightly higher about 20 30 basis points 17:15 17 minutes, 15 seconds higher and the HL related portfolio it is lower uh and not only in the uh brass 17:25 17 minutes, 25 seconds LPA at NPA uh that uh um in terms of even the collection uh you know field 17:31 17 minutes, 31 seconds collections also slightly lower in the um in the uh NB accelerated business that we have recognized and we have 17:40 17 minutes, 40 seconds strengthened because because of the growth potential and the margins uh in the NBFC business 17:50 17 minutes, 50 seconds u you know given the uh you know the current cost also been fully faced in um that we are really strengthening our 17:59 17 minutes, 59 seconds collection stock particularly in that product segment. So that is in terms of the product mix wise and geography wise 18:07 18 minutes, 7 seconds yes uh as Mr. Bali said um Karnataka is an area where the collection percentage is slightly lower than the other 18:16 18 minutes, 16 seconds geographies. Um and that we are really very focused uh in fact our um business 18:24 18 minutes, 24 seconds growth also uh we we are in fact number of branches and the business growth and the strengthening of the collection sh 18:32 18 minutes, 32 seconds is really happening in that uh state and we understand you know this is generally the scenario for some of our other 18:39 18 minutes, 39 seconds competitors also the collection in in Karnataka is slightly different uh that we are really focusing 18:49 18 minutes, 49 seconds uh yeah now coming to this off book I think you are meaning the direct assignment 18:56 18 minutes, 56 seconds seement we have got a clear we have got a clear policy on this direct assignment first this is being done for the 19:04 19 minutes, 4 seconds non-housing loan book and we and this is also when you do that uh the principal business criteria on the housing finance 19:12 19 minutes, 12 seconds company improves so and also this we are managing it through asset liquidity management tool. So if you look at the 19:19 19 minutes, 19 seconds direct assignment we did around 170 180 crores in this quarter and this this absolute value of 160 to 180 crores will 19:28 19 minutes, 28 seconds be maintained every quarter and uh and if you as a strategy we might not want to go beyond 10% of the total AM at any 19:37 19 minutes, 37 seconds point in time. Now currently it is at around 5% the DA uh deal done. So uh this is the plan we have on the DA and 19:45 19 minutes, 45 seconds uh going forward also this will be monitored and uh uh taken care of. Yeah just to add uh you know in the uh in the 19:54 19 minutes, 54 seconds current year we have done about 700 kores of giant assignment or balance as you call 20:01 20 minutes, 1 second the total reimbursements of 4,000 crores it is coming about you know 16 17%. 20:08 20 minutes, 8 seconds as a percentage of reimbursements. But if you look at the loan book on 700 crores and the loan book of 13,000 20:14 20 minutes, 14 seconds crores, it comes about 5.6% or so. So going forward as a percentage loan book 20:21 20 minutes, 21 seconds as Mr. mentioned it will be around around 10%. which as you know is much higher than our comparable company much 20:29 20 minutes, 29 seconds lower sorry much lower than other comparable companies you know in you know 20:36 20 minutes, 36 seconds within the in our space. So um so going forward the soft balance sheet or bank 20:43 20 minutes, 43 seconds assembly will be there but within the uh you know guidelines within the within the specific uh you know percentage that been approved by the board. 20:56 20 minutes, 56 seconds Got it. Perfect. And one more question if I can squeeze in. 21:00 21 minutes Yeah. Yeah please. Uh so on spreads we saw 10 basis points uh increase that's particularly the funding cost advantage. 21:08 21 minutes, 8 seconds Do we see uh the funding any any reprising benefit still left or it's largely done? Okay. And obviously our 21:17 21 minutes, 17 seconds portfolio on the fixed side is much higher uh particularly on uh the lending side. So that's also helping them. But 21:24 21 minutes, 24 seconds here on how should we see the traction on uh spreads? 21:29 21 minutes, 29 seconds See if you look at it we are being our incremental cost of funds in the housing finance is around 7.8 and or 7.9%. 21:37 21 minutes, 37 seconds And in the NBFC it is between 8.2 to 8.3%. 21:41 21 minutes, 41 seconds Uh I'm not seeing much improve I'm not seeing any reduction from these rates in the coming quarters and uh there is a 21:49 21 minutes, 49 seconds likelihood that can it can only result in slight increase as well. Uh so uh this is on the cost of borrowings. Of 21:56 21 minutes, 56 seconds course since we have also calibrated uh some uh uh incremental lending rates on some of the housing loan ticket prices 22:05 22 minutes, 5 seconds there can be a slight drop in the yields as well. So I we have already worked it out the impact on the on terms of yield will be around.1%. 22:15 22 minutes, 15 seconds And uh we we are planning to have the same rate of borrowing which is currently at around 8.1% in the coming 22:21 22 minutes, 21 seconds year as well. But even if assuming if uh if my incremental cost of borrowings is going to go up by 20% sorry 2%. Then 22:30 22 minutes, 30 seconds what will happen is the total borrowing cost will increase by 08%. So the the the net impact on the yield will be around8%. 22:40 22 minutes, 40 seconds So this is what has been factored in our business plan as well for the next year. 22:45 22 minutes, 45 seconds So going forward this will be the uh thing which we have projected. Wonderful. 22:52 22 minutes, 52 seconds Perfect. Yeah. Thanks. Thanks and all the best. Yeah. 22:58 22 minutes, 58 seconds Thank you. Next question is from the line of Danish from ICIC Securities Limited. Please go ahead. 23:06 23 minutes, 6 seconds Yeah. Hi sir and congrats on a good set of numbers. Yeah. Hi sir. Uh so just uh two three things. Uh so one on the uh 23:13 23 minutes, 13 seconds displacement deal side right. So uh in FI26 uh you know there has been a couple of changes we have made to our pricing. 23:21 23 minutes, 21 seconds So one of course is the uh discontinuing disustment below 7 ticket size which I'm assuming should be more than 20% 23:28 23 minutes, 28 seconds yielding product for us and also as you already mentioned that uh we have a calibrated rates in some of the ticket 23:34 23 minutes, 34 seconds size. So net uh when we look at uh the book yield which is you know closer to 17 odd percent. Uh how the disment 23:44 23 minutes, 44 seconds yields are trending let's say over two three last two three quarters especially post uh exiting uh below standup ticket sales. 23:52 23 minutes, 52 seconds If you look at since till December we have not changed any rates. Okay in January we have just uh reduced the 24:00 24 minutes interest rates for the housing loan customers alone. and uh this uh uh only for the housing loan customers and 24:08 24 minutes, 8 seconds because of that in the in Q4 the dispersement dropped by around.1%. 24:15 24 minutes, 15 seconds Okay. Now going forward uh in in the month of April also we have slightly calibrated on the interest rates only 24:23 24 minutes, 23 seconds for this housing loan and that on certain ticket prices. So in the in the in the coming year the the likely impact 24:31 24 minutes, 31 seconds on the uh dispersement yield is likely to be at around.15%. 24:36 24 minutes, 36 seconds And on the loan book it is going to be around 06%. So this is broadly the uh uh plan. Uh so this is what we have done as of now. 24:47 24 minutes, 47 seconds So there is no impact of uh you know we exiting below standard group ticket size on the yields yet. 24:55 24 minutes, 55 seconds No. Uh that is not uh actually that is not actually playing out because the yield which you were charging less than 25:03 25 minutes, 3 seconds seven lakhs or greater than seven lakhs were never different earlier. Okay. Okay. Okay. Okay. Got it. Got it. 25:09 25 minutes, 9 seconds Uh and sir uh secondly uh you know on the profitability front right. So uh uh obviously Q4 ROE looks very strong at 21%. 25:20 25 minutes, 20 seconds uh but going ahead uh what kind of a sustainable are we you expect uh you know the way our e mix might evolve over 25:29 25 minutes, 29 seconds next two to three years you know in terms of better quality cycle rate etc. 25:34 25 minutes, 34 seconds So how do you see overall profitability trending over next two to three years 25:41 25 minutes, 41 seconds if the if you recurrenly now and then extrapolated for the the 25:48 25 minutes, 48 seconds reducing lending rate and also the slight increase in the credit card uh I think I told the spread is the impact on 25:56 25 minutes, 56 seconds the spread is likely to be around.15 to 2%. Correct. 26:01 26 minutes, 1 second Correct. So even if that if that is hopefully we'll be able to compensate it by way of productivity and also maybe a 26:10 26 minutes, 10 seconds slight reduction in the opex which can happen or which might not happen even if assuming that opex is likely to be at 2.7 and credit cost even if you are 26:19 26 minutes, 19 seconds taking from.5 to 6%. I mean on a hypothetical side still my roe and roe 26:25 26 minutes, 25 seconds will be uh roa will because of leverage can come down but roe will be much above 20%. So this is uh the we are actually 26:35 26 minutes, 35 seconds planned it this way for the next two years as well. So definitely we are very confident of as Mr. Amazon told 20 plus 26:43 26 minutes, 43 seconds growth uh sustainable 20 plus 20% plus growth and sustainable 20% roe uh that 26:50 26 minutes, 50 seconds is that is what is meant for just to add actually our 26:56 26 minutes, 56 seconds e is uh progressively going up during the last four five years if I recall 27:05 27 minutes, 5 seconds we've sort of improved from about 14% progressively now it is in fact a 27:12 27 minutes, 12 seconds milestone. Uh in the fourth quarter we have really crossed 20%. Actually in fourth quarter if you see is really touched 21%. 27:22 27 minutes, 22 seconds Um, ROE which is which you are aware is the the best class return because we you 27:31 27 minutes, 31 seconds know we very firmly believe um our uh you know economic value add value creation is as important as the growth. 27:42 27 minutes, 42 seconds While we will uh continue to pursue strong business growth at the same time we are very conscious of the uh you know 27:51 27 minutes, 51 seconds the financial matrix particularly the economic value ad and roe as well as very consciously we've been working on 27:59 27 minutes, 59 seconds it last four years and going forward also there is enough uh strengths are 28:06 28 minutes, 6 seconds being built into the company to sustain this rate and in that if not improving the rates out there. 28:16 28 minutes, 16 seconds Got it. Got it. And sir, just uh last question uh on the borrowing mix side. 28:21 28 minutes, 21 seconds Uh you know so uh we saw NHP borrowing you know coming down all the way to 900% versus uh 58% previously. Uh so just 28:31 28 minutes, 31 seconds wanted to know is there any particular reason why there is a lower energy draw down in 26 and in 27 or yeah 28:40 28 minutes, 40 seconds no actually uh I mean for the last year uh we didn't borrow from energy because we were able to get better cost funds as 28:48 28 minutes, 48 seconds compared to energy that's why we went for the other other sources having said that uh we have we have already filed an 28:55 28 minutes, 55 seconds application for a 500 cr refinance facility from energy and uh Hopefully that will come in another two three months the sanctions will come and uh 29:04 29 minutes, 4 seconds which will we'll be drawing that uh so uh the actually the specific reason is we had better uh borrowing sources which 29:12 29 minutes, 12 seconds are which was actually uh the cost of uh that was less than the NHB borrowing and that's why we went for that thing now that NH has also reduced their time 29:21 29 minutes, 21 seconds lending rate and they are able to give us at a better rate we'll be getting into these NHB borrowings as well and uh 29:28 29 minutes, 28 seconds going forward I mean if you look our book also it is almost 82% fixed so NSB borrowing if it comes to us it will be 29:35 29 minutes, 35 seconds on a fixed rate uh basis which will help manage my interest rate with it got it well I was just about to ask you 29:42 29 minutes, 42 seconds that only sir in case let us say in FI27 the NHB borrowing share uh goes up to you know 50 odd% uh then ideally that 29:51 29 minutes, 51 seconds should help us uh you know keeping the borrowing cost even at current level uh even uh let us say the interest rate goes up I Is that a fair assumption? 30:02 30 minutes, 2 seconds It's a fair assumption. Uh but if you're building in the business plan, it's better you build in a point to course. Let us say that should be upside risk. 30:11 30 minutes, 11 seconds Yeah. Yeah. 30:13 30 minutes, 13 seconds Okay. Okay sir. Thank you and best of luck. Thank you. 30:18 30 minutes, 18 seconds Thank you. Next question is from the line of May from Antique Stock Broking Limited. Please go ahead. 30:26 30 minutes, 26 seconds Yeah. Hi sir. Uh thanks for the opportunity and congrats on a good quarter. Uh sir my question is mainly first of all uh on the uh branch 30:35 30 minutes, 35 seconds expansion side. You said you will be expanding 60 branches and uh largely coming in from new geographies. 30:43 30 minutes, 43 seconds uh uh can you quantify sir uh um I'm how much could be from new geographies and secondly also uh now that you are 30:52 30 minutes, 52 seconds comfortable in both of these geographies like Maharash and Orisa in terms of expansion uh are you exploring uh any other 31:00 31 minutes geography sooner maybe within a year or maybe within next couple of years you 31:07 31 minutes, 7 seconds know because uh right now it looks like it it is pretty skewed into fixed trades 31:13 31 minutes, 13 seconds uh I understand that uh you have uh uh have been uh proficient enough in you know going deeper into geographies but 31:22 31 minutes, 22 seconds uh yeah it still uh leads to a concentration. So any any uh comment on that part 31:30 31 minutes, 30 seconds mind uh we are well aware of that and that's why we have selected this new geographies and if you look at it the 31:36 31 minutes, 36 seconds plan of opening 60 branches uh 30 branches will come in Maharashtra and 31:44 31 minutes, 44 seconds the balance will come in and if everything goes well we have also recruited a senior person taking care of 31:52 31 minutes, 52 seconds the Maharashtra who has got experience of handling and building up business in MP and particular as well. If everything 31:59 31 minutes, 59 seconds goes well, maybe we might open one or two uh branches in the other state as well. But uh it will depend on how how 32:07 32 minutes, 7 seconds the whole expansion plan progresses. Uh the thought is there to get into the new state but it will be done at the appropriate time on a particular state. 32:19 32 minutes, 19 seconds Sure sir. And uh on the borrowing snakes aside again uh you know your securitization mix have significantly 32:26 32 minutes, 26 seconds increased in this quarter. So uh uh what what must be the uh you know 32:33 32 minutes, 33 seconds differential uh you must be getting in doing securityization against NCB which have actually gone down this actually uh 32:42 32 minutes, 42 seconds securization we has not gone up it is actually 11%. If you look at in the earlier presentation, we didn't include 32:50 32 minutes, 50 seconds include DA as the source of funding in the uh pie chart. So that's why if you look at it 11 and 8% is the DA and 32:58 32 minutes, 58 seconds that's what has come as uh on the total borrowings. Uh so if the securization is still at 11%, last time also it was around 10 11% only. 33:08 33 minutes, 8 seconds Securization also helps us in terms to raise longer than our debt. So compared to the other that the security is also 33:17 33 minutes, 17 seconds carry slightly longer turn than other sources. 33:22 33 minutes, 22 seconds Okay. So sir uh what would be the uh if you can uh give us a interest rate on 33:28 33 minutes, 28 seconds you are getting on I didn't get your question but most of 33:34 33 minutes, 34 seconds funds of uh NCD from NCD from ND I mean I mean we have done a 33:43 33 minutes, 43 seconds securization deal in the NBFC uh in the in Q4 at 8%. 33:50 33 minutes, 50 seconds uh so that is the growing rate I mean NP slightly 8.1 8.2% 2% duration is longer. Duration is also longer. 33:58 33 minutes, 58 seconds Yeah. Okay sir. Thank you. 34:07 34 minutes, 7 seconds Thank you. Next question is from the line of dish from KC Institutional Equities. Please go ahead. 34:16 34 minutes, 16 seconds Hi uh thanks for taking my question. Uh you know just a small one. uh if you could give some color of uh the 34:23 34 minutes, 23 seconds incremental dispersement that you have done in this quarter you know how would the dispersement growth let's say break up between uh you know salary then 34:32 34 minutes, 32 seconds self-employed and uh I think if I just look at the overall business mix change on a quarteronquarter basis there seems to be 34:41 34 minutes, 41 seconds a fairly sharp swing in favor of self-employed from salaried so if if you could give some color on that uh that 34:49 34 minutes, 49 seconds would be helpful that it's I mean the the self-employed is around 78% and 22% 34:56 34 minutes, 56 seconds is the salary and on a on a overall basis that will still be continued. Uh so that is uh uh that is the philosophy 35:04 35 minutes, 4 seconds we have and uh uh that will continue uh okay sure the presentation actually says 35:11 35 minutes, 11 seconds that self-employed is 80 so maybe that is where I think uh maybe there was this okay okay sure so so and and and the and 35:21 35 minutes, 21 seconds the and the and the mix in in your view sort of you know broadly doesn't change sure and and the stress is probably more 35:30 35 minutes, 30 seconds geography speific rather than se sector specific is what what one is reading. Absolutely. Yes. Yes. Yes. 35:36 35 minutes, 36 seconds Got it. And just one small one is on the operating leverage side right. I mean in terms of terms of cost to aum ratio if I 35:44 35 minutes, 44 seconds look at this number every year for the last three years it's been coming down but uh it's probably inched up a bit in 35:52 35 minutes, 52 seconds FI26 and uh that's kind of you know getting reflected in higher employee payouts. So how should one think about it and how 36:00 36 minutes will this trend up? I mean how will this trend going forward? 36:04 36 minutes, 4 seconds Then if you look at the overall am to across AM it is around 2.7. Last time it was 2.6. See our guidance has always 36:12 36 minutes, 12 seconds been to maintain between 2.6 to 2.8%. Of course the reason why this year there is a slight increase in the cost is first 36:19 36 minutes, 19 seconds of all the dispersment was an all-time high in this quarter. So there was more employee branches right employee payouts and that kind of a thing and new 36:28 36 minutes, 28 seconds branches were also open 39 branches. So to that extent there was an absorption in the cost. The third one is uh we have 36:35 36 minutes, 35 seconds also uh increased the IT spend in terms of the security and also uh the way we do business. The ZA which we launched in 36:43 36 minutes, 43 seconds April 24 has been evolving and it has settled well. But every time when a new thing like account aggregator or when 36:51 36 minutes, 51 seconds you know when we are talking to unified lending interface introduced by RBI we are able to be able to see the digitization of land records in some of the states. So those are some of the 37:00 37 minutes things which we are spending uh that is actually an investment for the future though it is getting absorbed as a cost now but it is going to bring in lots of 37:09 37 minutes, 9 seconds process improvements in the coming years. 37:13 37 minutes, 13 seconds Got it. uh and and just uh one more uh I think on the credit cost side what is the guidance that you have shared 37:20 37 minutes, 20 seconds currently it is around.5% we have we want to have a.5 plus or minus 10%.1% 37:29 37 minutes, 29 seconds got it thank you very much and all the best thank you 37:37 37 minutes, 37 seconds next question is from the line of Prit Patel from Invest please go ahead Yeah. Hi. Uh thanks for the opportunity. 37:45 37 minutes, 45 seconds So I just wanted some clarity on the AUM mix. So if I look at our spreads, uh they've increased 10 bases quarteron 37:52 37 minutes, 52 seconds quarter. So I just want to know have we uh like there's a uptick in the uh self-employed segment and the lap segment. So I just want to know is that 38:01 38 minutes, 1 second contributing to the uh increase in spread or is there a benefit on the cough side? It is basically because of the cost of funds has come down from 8.3 38:10 38 minutes, 10 seconds to 8.1%. So that's the benefit that has flown into the hotel. 38:17 38 minutes, 17 seconds Okay. Okay. It's not because of the AUM mix, right? Not because of mix. 38:24 38 minutes, 24 seconds Okay. Thank you. 38:29 38 minutes, 29 seconds Thank you. Next question is from the line of Sonel from Asian Market Securities. Please go ahead. 38:37 38 minutes, 37 seconds Uh thank you for taking my question. Uh so far in your uh earlier comments I heard that uh you know this year we've seen some issues with NDP and that is 38:45 38 minutes, 45 seconds where uh the credit cost has gone up. Uh now when I compare your consolidated uh you know submissions and standalone 38:54 38 minutes, 54 seconds submissions uh so I see that uh you know Uh okay. 39:05 39 minutes, 5 seconds Is it is it better now? We'll see how how it progresses. 39:12 39 minutes, 12 seconds Uh sure. So when I look at your standalone and consolidated uh you know loan loss provisions um so at least for the quarter that I'm seeing that on a 39:20 39 minutes, 20 seconds consolidated basis you know the credit cost is something to 15 crores and on standalone for 20 uh you know 20 cr and 39:28 39 minutes, 28 seconds uh even if I look at the trends for the full year uh you know it seems that um confirm and the credit cost was higher in the housing portfolio as compared to 39:37 39 minutes, 37 seconds you know uh portfolio. If you could just uh you know I mean uh tell exactly where where is it that I'm missing because uh 39:44 39 minutes, 44 seconds you know in your earlier comments you said that uh you know the issue was more on the side. 39:51 39 minutes, 51 seconds I'm sorry uh you contact me personally I'll tell you because I'm not able to hear you properly. Yeah. 39:59 39 minutes, 59 seconds Oh sure. 40:04 40 minutes, 4 seconds Thank you. Next question is Sheparal Doohi from Aquirius. Please go ahead. 40:11 40 minutes, 11 seconds Hi sir. Uh thank you for giving me the opportunity and congrats on a good quarter. My question was on uh repayment rate uh and the BT out. So what is that 40:20 40 minutes, 20 seconds for us in terms of uh uh this quarter versus last quarter and what strategy do we have in order to uh let's say uh 40:29 40 minutes, 29 seconds retain a customer uh especially when when the rates are so much different versus our peers because our peers have 40:36 40 minutes, 36 seconds seen uh this rate moving up and down vol there has been volatility there but for us it's been much more stickier at 15 40:45 40 minutes, 45 seconds 16% sort of a number on the repayment right on the repayment side. 40:50 40 minutes, 50 seconds No. Uh first of all, if you look at the if you look at the pre-closures, it is around 7 to 8% of the total region. 40:58 40 minutes, 58 seconds Okay. 6 7%. Okay. Of that 7% almost 65% to 70% of our customers when they come 41:06 41 minutes, 6 seconds and close the loan it is out of their own funds. So the balance only 2% gets transferred to the other companies. So 41:14 41 minutes, 14 seconds this is we have been maintaining this we have been observing for the last 10 years. So this has not changed at all. 41:20 41 minutes, 20 seconds So uh basically it is not the interate which is playing a part. It is basically the uh type of customers whom we are serving. When they have come surplus 41:29 41 minutes, 29 seconds funds the first thing we do is to settle the loan uh rather than keeping it alive. So definitely the balance 41:36 41 minutes, 36 seconds transfers is around 2 to 2.5% and that's still continuing. So as of now that's not being uh looked at very as a track. 41:43 41 minutes, 43 seconds Yeah, you know actually we don't see any significant challenge in the BT to other 41:50 41 minutes, 50 seconds financial institutions that is only about onethird of our total pre-closure 23 really money coming from our 41:59 41 minutes, 59 seconds customers themselves out of their savings and they're you know at all they're closing they're closing out of their money the actual loan transfer 42:08 42 minutes, 8 seconds from us to the other financial institutions it is only around two around official which has been there you 42:15 42 minutes, 15 seconds know for quite some time almost 8 10 years so that way our duty uh to the 42:22 42 minutes, 22 seconds other financial institution is uh it's not uh you know is something is is 42:29 42 minutes, 29 seconds normal and uh uh is nothing abnorm they are not observing any absorbment trend in that got it so just a follow up there uh like 42:38 42 minutes, 38 seconds while at book level you are indicating 2 to 2.5% but But if you could give some color spec specifically for H product 42:47 42 minutes, 47 seconds would it be similar or uh it would it would be let's say closer to four 5% sort of a BT out number with respect to 42:54 42 minutes, 54 seconds uh other other players acquiring our customers. 42:58 42 minutes, 58 seconds No actually we have seen this analysis across the product it's the same. We not seeing much that kind of a difference. Yeah. 43:06 43 minutes, 6 seconds Got it sir. Got it. Thank you. Thank you so much for answering my question. 43:13 43 minutes, 13 seconds Thank you. Next question is from Milina Ragha from Amit Capsule. Please go ahead. 43:20 43 minutes, 20 seconds Sir, hi good morning and thanks for the opportunity. Am I audible? Yes. 43:25 43 minutes, 25 seconds Okay. Uh I just have one question uh and on your assignment income maybe the CFO can answer this better. uh see when I look at your assignment gains as 43:34 43 minutes, 34 seconds percentage of the off balance sheet loans or assigned loans that's 28% for this quarter and about 42% for the full year and when I compare this to peers 43:43 43 minutes, 43 seconds the number is more like uh 8 to 10%. Uh and I think you know when the backbook builds up or you know when you increase 43:50 43 minutes, 50 seconds the uh when you scale up this assignment book the uh numbers which are 28% for the quarter and 42% for the year should 43:58 43 minutes, 58 seconds normalize downward for you. Uh so I just wanted to get some sense that for FI 2728 all going ahead if you can give us some uh guidance as to how these 44:07 44 minutes, 7 seconds assignment margins will look because right now they are contributing a lot to your profits uh and as your margin normalizes downward uh that's a risk to 44:16 44 minutes, 16 seconds your ROE guidance or you know generally it would not contribute as much to the RO as it is contributing today. uh so yeah I just wanted to get some sense 44:24 44 minutes, 24 seconds there if you if you look at our DA that is being done we are doing it for the non-housing loan book largely 44:33 44 minutes, 33 seconds non-housing loan book where the yields are around 17 17.5%. 44:38 44 minutes, 38 seconds So but if you are going to do a DA that say 8 or 8.1% the spread is so high and that is what is getting recognized as 44:47 44 minutes, 47 seconds the apparent income. So this is what will this is what it will continue but having said that we have looked I mean 44:54 44 minutes, 54 seconds last year there was not much DA this year there is a DA and next year it will be the same that the same momentum will continue so uh there will not be much 45:03 45 minutes, 3 seconds impact because of this on the roe or ROA um to clarify the range of upfront 45:10 45 minutes, 10 seconds income will be in the in between 25 to 28% what you have actually calculated uh so because of our larger tenure And 45:18 45 minutes, 18 seconds because of the yield yield and spread uh the the the upfront income will be in that range around 25 to 27 28%. 45:27 45 minutes, 27 seconds Yes. 45:28 45 minutes, 28 seconds Understood. But but you know the way that I understand this is that as your uh you largely upfront the future income 45:37 45 minutes, 37 seconds right you discount it to the present value and then you recognize it on the P&L. So next time when you do uh the direct assignment uh the income from the 45:45 45 minutes, 45 seconds backbook will not be available. it will only come on the uh newly assigned loans but in the denominator in the base you will still have the backbook right so 45:53 45 minutes, 53 seconds ideally uh the uh the margin should come down uh shouldn't it play out that way I'm just trying to understand 46:01 46 minutes, 1 second no so we are uh this 25 to 28% what we are saying on the incremental DA what we are doing so that 46:09 46 minutes, 9 seconds remain that guided percentage of 25 to 28% correct so you're saying 25 to 28 it is on the incremental DA that you're doing. 46:18 46 minutes, 18 seconds Uh but going forward as your uh outstanding book builds up this margin should come down I believe. Is that the correct way to think about this? 46:28 46 minutes, 28 seconds So margin will not come down. Anyway, if this if this is a specific question I'll come back to you and we can talk uh I'll talk to you now. I'll call you after the 46:37 46 minutes, 37 seconds call. Maybe we can understand the numbers and then we'll we'll work it out. Okay. Sure. Sure. Uh that was also my question. 46:45 46 minutes, 45 seconds Yeah. 46:48 46 minutes, 48 seconds Thank you. Next question is from the line of Kashan Parik from Morgan Stanley. Please go ahead. 46:57 46 minutes, 57 seconds Sorry. Am I audible now? Uh thank you for taking my questions. Uh I just had one question. uh basically uh in our 47:05 47 minutes, 5 seconds opening remarks we mentioned uh said should be looking for better quality customers and we have optimized rates uh 47:13 47 minutes, 13 seconds as well for these customers and we see some impact on the loan spreads in the next term. uh if you could uh help us uh 47:21 47 minutes, 21 seconds get a more holistic uh picture I mean uh in the sense that uh uh you explained uh how you see the impact on the yield uh 47:29 47 minutes, 29 seconds how should this benefit us uh on the productivity side as well as on the uh credit cost side uh at the same time and 47:38 47 minutes, 38 seconds uh net uh what is the uh uh impact that you see of moving this uh better to this better quality uh customer on our 47:47 47 minutes, 47 seconds overall called profitability. Uh as well as uh if you could give us a uh a a a 47:54 47 minutes, 54 seconds small picture of essentially this uh I mean what is the difference between your current customer and this uh this uh uh 48:03 48 minutes, 3 seconds uh new customer that you're chasing? I mean are they very different kind of cohort or it's the same cohort and we 48:09 48 minutes, 9 seconds should expect similar behaviors from customer as well. Yeah, I I'll try to answer whatever uh I was able to get 48:18 48 minutes, 18 seconds from your question otherwise I can talk to you separately. What first thing is if you look at the if the last year we 48:26 48 minutes, 26 seconds have taken this call to stay away from less than seven lakhs and then less than seven lakhs and then 48:36 48 minutes, 36 seconds less than seven lakhs and that uh that has actually contributed to the uh uh actually contributed to the better 48:44 48 minutes, 44 seconds quality in terms of collection efficiencies and everything. Okay. So now uh in in if you look at uh the the 48:52 48 minutes, 52 seconds displacements that has been done at a higher ticket uh the the the collection efficiencies are very high and the 49:00 49 minutes bounce weights are really low and uh we are a to that extent the collection team's effort all the sales team effort 49:07 49 minutes, 7 seconds of going to the fields and collections is minimized. So that those are all the benefits that are coming because of this higher ticket price uh reimbursement and 49:16 49 minutes, 16 seconds uh going forward that is that's what we will be concentrated upon. 49:23 49 minutes, 23 seconds Uh understood uh uh that was helpful and if you could just help us understand I mean uh from a customer uh profile 49:31 49 minutes, 31 seconds perspective uh between our current customer and this uh new higher ticket customer I mean how much of a step up is it? 49:39 49 minutes, 39 seconds No, the profiles are the same. It's basically uh the the the the house funded will be slightly higher cost and 49:46 49 minutes, 46 seconds uh the and because of this and of course we have gone into this higher ticket because of inflation also right. So it is basically the profiles of the 49:54 49 minutes, 54 seconds customers are the same. The profile one is also you know the the you know the credit bureau data account aggregate 50:03 50 minutes, 3 seconds data will be you know slightly better the you know for the higher ticket uh you know customers then the customers 50:11 50 minutes, 11 seconds with the loan profile of less than seven lakhs because we would want to be very clearly away from the micro finance type 50:18 50 minutes, 18 seconds of customers. So you know the average size of the micro finance is between three to three and a half lakhs would at least want to be at least two weeks away 50:27 50 minutes, 27 seconds from it and uh which means that one is really looking for a better you know profile better background customer that's financial background customers 50:35 50 minutes, 35 seconds and better income earning profile customers and which is evidence particularly credit data now also 50:43 50 minutes, 43 seconds getting strengthened account aggregator data is is available and also this recently introduced 50:51 50 minutes, 51 seconds UI opens up data data kind of thing. We are using this data to improve our 50:58 50 minutes, 58 seconds underwriting standards and through that look for you know a better uh uh customers uh without really not 51:06 51 minutes, 6 seconds increasing much risk because it's the customer going to be from an average 9 lakh to the average 10 lakh while 51:13 51 minutes, 13 seconds percentage ter improvement in 8 years but actually in terms of the you know one lakh more load 51:22 51 minutes, 22 seconds it doesn't really change the inherent risk risk for the customer. So in other words, we would really progressively 51:30 51 minutes, 30 seconds u in fact it is not really you know it's really to cover the inflation cost of the construction itself will be needing 51:37 51 minutes, 37 seconds it. Um so that way uh obviously there will be change there will be improvement and the profile of the customers also correct. 51:50 51 minutes, 50 seconds Uh understood. Uh uh thank you. 51:55 51 minutes, 55 seconds Thank you. Next question is from the line of Pawan Kumar from Wise. Please go ahead. 52:02 52 minutes, 2 seconds Hi uh s thank you for the opportunity and congratulations on really good set of results. Am I audible? Yeah. 52:10 52 minutes, 10 seconds Yeah. So uh two questions. One question is regarding Tamil Nadu. You mentioned Tamil Nadu is seeing very high competition and competitors are poaching your employees. 52:21 52 minutes, 21 seconds Is this because of very high penetration in terms of affordable housing finance or lap uh and the field staff finding it 52:28 52 minutes, 28 seconds tough to meet the targets because you know there are not enough customers who are looking for these and that is leading to high attrition. 52:36 52 minutes, 36 seconds The same thing is visible even in the quarteronquarter amm growth in Tamil Nadu. uh the Tamil Nadu Karnataka numbers are slightly lower than that of 52:43 52 minutes, 43 seconds AP and Telangana when I compare Qreek growth in Q4 FI26 that are same with uh 52:50 52 minutes, 50 seconds Q4 FI25 numbers that's one part of the Tamil Nadu equation second part is like you know the temperatures are much 52:57 52 minutes, 57 seconds higher this year similarly elections are also gone through so do you see higher credit cost impact in Tamil Nadu 53:04 53 minutes, 4 seconds particularly for this this particular quarter Q1 also are there any local issues is in Tamil. That's one question sir. Second question is second question 53:13 53 minutes, 13 seconds first uh actually elections were there uh of course the temperatures are also rising but we're not seeing impact 53:21 53 minutes, 21 seconds because of that the credit quality the collection data experience better in fact 53:30 53 minutes, 30 seconds so that is what is uh the situation uh as far as the uh uh growth is concerned I think this 14% is a decent growth in 53:38 53 minutes, 38 seconds order considering the base and also we We have been we have been successful of course the competition is there and we have been successful in retaining good 53:47 53 minutes, 47 seconds people who are actually contributing to the company. So to that extent uh we are successful and that is why this growth 53:54 53 minutes, 54 seconds is coming in. Uh while the competition intensity is much higher and with people poaching with other companies poaching 54:02 54 minutes, 2 seconds guys from us we are also spooing up our uh retention schemes uh uh insurance coverage schemes and etc. so that people 54:11 54 minutes, 11 seconds are uh more aligned to access and then they are able to contribute towards the growth of the company. So as of now we have not seen that kind of a big problem 54:20 54 minutes, 20 seconds but the competition is intense. Also there are new branches added in no we are adding new branches only in states 54:28 54 minutes, 28 seconds like uh Talangana and Angra and the newer markets like Maharashtra, Orisa 54:36 54 minutes, 36 seconds but the branch new branch addition in Tamilad that we start much whatever that growth is coming is largely out of the existing branch only. 54:46 54 minutes, 46 seconds Yes. So is that because like penetration being very high like Tamil Nadu is much more advanced state compared to AP or Telangana in terms of income or HDI 54:55 54 minutes, 55 seconds whichever parameter that you take. So has it reached a certain level of you know of own housing and then you know 55:02 55 minutes, 2 seconds new customers are hard to come by know the market still a long way to go is see there is the overall terms the demand is 55:12 55 minutes, 12 seconds not the issue it's only the you know because has become known to be you know leader 55:20 55 minutes, 20 seconds in the affordable housing space generally in south south India and more So much more in Tamil Nadu. So any new 55:29 55 minutes, 29 seconds competitor from west or north wanting to open a branch first they would want to look at you know uh our staff uh you 55:37 55 minutes, 37 seconds know because our name and reputation so that you know uh does create an issue on a very short-term basis but that being 55:45 55 minutes, 45 seconds addressed that they address and as Baji said we are progressively you know getting back uh you know we we want to 55:53 55 minutes, 53 seconds increase this 14% what you said growth rate also to further Yeah, got it. So, second question like you 56:02 56 minutes, 2 seconds have guided for 22 to 24% am growth, right? So that's approximately 16,000 cr assuming the same runoff rate which is 56:09 56 minutes, 9 seconds principal repayment plus BT out at same 16% of starting AM you need to do about like 5,000 to 5,100 crores of 56:17 56 minutes, 17 seconds disbburments in FI27 at like an average of 370 branches like 3 340 to 400 that you go average of 370 56:25 56 minutes, 25 seconds branches that comes to monthly disbbursement rate of 1.15 uh so that's about 10% growth but if I 56:32 56 minutes, 32 seconds look at the last 3 years it's been came at 1.06 or 1.05 crores per month displacement per branch. Even if I look 56:40 56 minutes, 40 seconds at the Q4 number, it's like 1.23 crores per month over 1.19 crores last year, same quarter. So, uh you said that you 56:49 56 minutes, 49 seconds know the ticket sizes will increase by one lakh 10%. 56:53 56 minutes, 53 seconds Is that the main growth the ticket size growth but the customer addition is going to remain same as what we have seen so far? 57:01 57 minutes, 1 second Yeah, that's the question. 57:03 57 minutes, 3 seconds There will be customer growth as been given in the presentation also. That is year one year customer growth and uh you 57:12 57 minutes, 12 seconds know the growth will come as as has been explained uh growth will come out of new 57:19 57 minutes, 19 seconds states out of the existing uh new branches of the existing states out of 57:25 57 minutes, 25 seconds channel comprising of the customer appro and uh you know visiting app channel and 57:32 57 minutes, 32 seconds which is augmented further by the uh you know connector channel. So it is just not you know and the data that you know 57:40 57 minutes, 40 seconds looking at what is the cost in terms of um you know disbbursement per branch of the past data but there are a lot of 57:48 57 minutes, 48 seconds actions being initiated in the current year more so in the last two quarters which is reflected in the post fourth 57:56 57 minutes, 56 seconds quarter in terms of substantial growth in reverse. So um with with several actions including the branches new 58:05 58 minutes, 5 seconds states branches um you know new channel and optimizing 58:11 58 minutes, 11 seconds certain you know uh rates so several actions are being taken uh it's not just one and they are tracked they are 58:20 58 minutes, 20 seconds tracked uh we have a strong MS to track what is the growth coming out of each segment and and we believe that the 58:27 58 minutes, 27 seconds basis on which we are indicating the kind of growth that we are consent of achieving. 58:33 58 minutes, 33 seconds Okay. So just to ask this in a different way now that the PMY2 is also kicking in so the BT rates will go down. So how 58:41 58 minutes, 41 seconds confident are you that you will deliver this 22 to 24% growth that you have built for PM2 is for the urban kind of customers 58:49 58 minutes, 49 seconds they are I don't think this PMA has come into the rural scenario. uh so for our kind of customers the PMA coverage will 58:57 58 minutes, 57 seconds be very minimal. So this is not going to impact much for us. If PMA rural comes we need to look at the amount of subsidy 59:04 59 minutes, 4 seconds that is coming into that because PMA one rural subsidy was very very less. So we need to look at that at that point in 59:11 59 minutes, 11 seconds time when it is getting launched. So as of now PMI will not have any impact of our practice. 59:18 59 minutes, 18 seconds Okay sir. But the confidence on the 22 to 24% growth rate is very high. 59:23 59 minutes, 23 seconds uh govern uh I think we have worked out uh various strategies to get to this 5,000 crores and uh that is why we are 59:31 59 minutes, 31 seconds giving this guidance. So hopefully we'll be able to maintain that. 59:35 59 minutes, 35 seconds Thank you so much sir. That's very comprehensive and wish you all the best. 59:41 59 minutes, 41 seconds Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the call over to the management for closing comments. 59:52 59 minutes, 52 seconds Yeah. Thank you. Uh um yeah, thank you everyone for attending the conference call. I would like to pay 1:00:00 1 hour my sincere gratitude to all the analysts and industrial friends who have taken time out to listen to us today. Please feel 1:00:08 1 hour, 8 seconds free to contact us if you if you have any further queries. Thank you. 1:00:16 1 hour, 16 seconds Thank you very much. Thank you all for being a part of the conference call. If you need any further information or 1:00:23 1 hour, 23 seconds clarification, please email investor relations@appisindia.com. 1:00:28 1 hour, 28 seconds Ladies and gentlemen, this concludes your conference for today. Thank you for using Korus Call conferencing services. 1:00:35 1 hour, 35 seconds You may now disconnect your line. Thank you and have a pleasant day. Thank you.