Can Fin Homes Ltd — Q4 FY26

Can Fin Homes Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=DqF09bR4PuE Published: 2 weeks ago

0:02 2 seconds Hi everyone, good day and welcome to camp homes earnings conference call hosted by invest. I hand it over to 0:09 9 seconds Nidesh Jen our lead analyst NBFC and insurance with Invest India. Over to you Nidesh. 0:16 16 seconds Uh thank you Rama. Good afternoon everyone. Welcome to the quarter 4 FI26 earnings conference call of Canin Homes Limited hosted by Investor Capital. As a 0:26 26 seconds reminder, all participants will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation conclude. For 0:33 33 seconds Q&A, please raise your virtual hand and we will unmute you from our side. We will start with the management commentary followed by a Q&A session to 0:40 40 seconds discuss the financial performance of Canin Homes and to to address your queries. We have with us Mr. Shuresh Ayar MD and CEO, Mr. Mr. Saresh Kumar 0:49 49 seconds Singh, Mr. Pkash President, Mr. Otya Kumar, president and CRO. Mr. Abhishek Mishra, CFO of Canfin Homes Limited. 0:59 59 seconds Please note that this call will be recorded. I would now like to hand over the call to Mr. Suresh Ayar for his opening comments. Over to you sir. 1:07 1 minute, 7 seconds Uh thank you Nesh and good afternoon to everyone and welcome to this earnings call for FI 26 1:15 1 minute, 15 seconds results of Canen home. uh I'll just take you through the brief uh highlights of the performance for the year ended March 1:23 1 minute, 23 seconds 31, 2026 and then uh we can have the question mark session. So I'll start with disbbursement. So first of all in terms of disbbursement's performance as 1:31 1 minute, 31 seconds against the the guidance of 10,500 crores of disbbursement that we had given for the entire year. the the company has ended with a disbbursement 1:40 1 minute, 40 seconds marginally in excess of that figure of 10,531 crores and this has been supported by a consistent quarterly 1:48 1 minute, 48 seconds performance wherein in each of the four quarters you know compared to the respective quarter performances it has been a new peak has been achieved in 1:56 1 minute, 56 seconds each of the four quarters with Q4 ending at a all-time high of 3,245 2:04 2 minutes, 4 seconds cr disbursement for in Q4 uh in terms of the two areas which is Karnataka and Telangana where the company was having 2:12 2 minutes, 12 seconds some issues in the beginning of the year both where both the zones started with some negative but over a period with the 2:20 2 minutes, 20 seconds you know situation improving in terms of the ikata performance for Karnataka the state has consistently improved the performance and by the end of the year 2:29 2 minutes, 29 seconds we have ended with the 7% disbbursement growth in Karnataka and now in fact also the position is such that barring the 2:36 2 minutes, 36 seconds rural areas are grandchild approvals where Gil Khhata is getting delayed to some extent but otherwise in most of the 2:43 2 minutes, 43 seconds you know urban centers it's coming quite okay so therefore you know this performance is likely to continue and in this year we are targeting a 15% growth 2:50 2 minutes, 50 seconds in disbbursement in Karnataka uh in terms of the quarterly performance as against us Q2 and Q2 disbbursement of 2:58 2 minutes, 58 seconds average 250 cr per month in Karnataka in Q4 we could achieve about 290 cr average disbbursement per month in Karnataka So 3:07 3 minutes, 7 seconds therefore it is a little positive and um in terms of Telangana we started off with a Q1 negative of 33%. And that 3:14 3 minutes, 14 seconds consistently has been coming down particularly in Q3 and Q4 we've had a very very steady run rate of more than 100 cr disbursement. So therefore we 3:24 3 minutes, 24 seconds could uh you know reduce the gap but uh unlike the expectations that we had originally given of that we might also end up with a positive in Telingana we 3:33 3 minutes, 33 seconds have almost ended flat against 1198 cr disbursement last year we've ended up with 1147 so it's a marginal thing but 3:41 3 minutes, 41 seconds uh in terms of the current year we are looking at a positive from day one because we've already reached a consistency in terms of performance and 3:49 3 minutes, 49 seconds Telangana now is doing about 100 plus per month we have reached that level. Uh 3:55 3 minutes, 55 seconds now in terms of the uh you know uh AUM growth we had originally targeted about 4:01 4 minutes, 1 second 11 to 12% growth. However, you know what we had started off with was that we would be having approximately about you 4:08 4 minutes, 8 seconds know 6,000 cr uh rundown including the part prepayments, full prepayments and everything and that was based on the 4:15 4 minutes, 15 seconds fact that last year we had about 1,500 we had about 5,400 5,300 odd crores of uh rundown in the entire year. So we had 4:24 4 minutes, 24 seconds assumed that there will be a 6,000 cr rundown but you know Q2, Q3 and Q4 we've had a slightly elevated rundown 4:31 4 minutes, 31 seconds situation and therefore we ended up with about you know 600 odd crores extra over and above the 6,000 that we have 4:39 4 minutes, 39 seconds targeted. So that has actually shaved off some of our AUM growth expectations. So we've ended up with about 10.44%. 4:46 4 minutes, 46 seconds uh for the current year we are targeting that you know if this is a present position then we may have a you know uh rundown of about 7,000 for the entire 4:55 4 minutes, 55 seconds year. So based on that with a 13,000 cr disbursement target that we have kept for the year we should be having a net addition of about 6,000 cr to the book 5:03 5 minutes, 3 seconds in FY27 which would result in about a 14% uh you know aum growth. uh in terms of 5:11 5 minutes, 11 seconds the you know prepayment intensity for the year uh in Q4 actually we've not had much of a BD pressure compared to 5:19 5 minutes, 19 seconds compared to Q3 or rather I would say it was very static because as against uh you know rundown totally of uh we had of 5:29 5 minutes, 29 seconds about 370 380 cr in terms of the BT out in Q3 as against that it has been about 5:36 5 minutes, 36 seconds 400 crores in Q4 considering that Q4 normally is a very hectic and a very high pressure kind of a quarter still 5:43 5 minutes, 43 seconds the the increase in BTOS has been very marginal and so therefore it gives us confidence that that the shift that we have made from annual reset to quarterly 5:52 5 minutes, 52 seconds reset will help us and now with almost 85% of the book having shifted to quarterly reset the entire 50 basis points has been passed on to our 6:00 6 minutes customers so that should help us in in in managing our uh you know BT hours other than that in terms of 1691 was the 6:08 6 minutes, 8 seconds total uh rundown including in Q3 including the part prepayments including the amortization BT outs and normal closures as against that it has been 6:17 6 minutes, 17 seconds 1730 which is very much in line. So Q4 pressure also we have been able to somehow has been um you know handled 6:24 6 minutes, 24 seconds well. Next we come to the delinquency performance. Uh for the fifth quarter in a row we've had a reduction in our 6:32 6 minutes, 32 seconds absolute delinquency numbers and that has helped in you know you know ensuring that our credit costs remain low. uh 6:39 6 minutes, 39 seconds overall in Q4 we have seen a you know reduction a reduction in our overall NPA numbers also so that also has brought 6:47 6 minutes, 47 seconds down our GNPA number to below the last year number of 87 so we've ended with 85 6:54 6 minutes, 54 seconds in terms of our NPN numbers going forward also we see that there is you know even in the month of April as well as in the month of March in spite of the 7:02 7 minutes, 2 seconds geopolitical situation we have not seen a major any major stress in terms of delinquency And therefore in terms of 7:10 7 minutes, 10 seconds our uh you know going forward guidance for delinquency we expect that you know our credit cost will remain benign and 7:18 7 minutes, 18 seconds while it has been about 10 basis points for the current year as a whole however you know on a conservative basis we would still like to continue with the 7:26 7 minutes, 26 seconds guidance of 15 basis points although we don't see any stress and it could well be below that by the end of FI27. 7:34 7 minutes, 34 seconds uh as regards spread as I mentioned earlier we had a uh you know higher percentage of u portfolio which was 7:41 7 minutes, 41 seconds under uh u uh you know uh annual reset almost 70% plus of our portfolio was at 7:48 7 minutes, 48 seconds annual reset and that it was 71.14 at the end of last last year and that has 7:55 7 minutes, 55 seconds uh changed drastically because this year we also sent across communication and sought consent from our customers. So in Q4 we've had a major reduction from 48% 8:05 8 minutes, 5 seconds to below 15%. So now almost 85% plus of our customers are at quarterly reset and 8:12 8 minutes, 12 seconds the entire benefit of the quarterly reset that 50 basis points has been passed on at the time of the revision to all of them. So now as on the entire 8:21 8 minutes, 21 seconds portfolio after giving the impact of of this quarterly reset half 50 basis points to all our uh converted customers 8:29 8 minutes, 29 seconds as well as after considering the 15 basis points that we reduced in January also the entire book yield will come 8:37 8 minutes, 37 seconds down to 9.8 and uh that also excluding the you know any reversal in NPA income and all but 8:44 8 minutes, 44 seconds um uh 9.8 8. So that means that we will be able to retain the spread of 2.8% starting from day one in the this 8:52 8 minutes, 52 seconds current financial year also. So this was one major concern which you know every time was coming up that what if the portfolio converts from annual to reset 9:01 9 minutes, 1 second you will have to the spread the spreads will come down but that we have you know taken into consideration and therefore this one additional slide has been 9:09 9 minutes, 9 seconds presented in this uh presentation where we have showed that as on 1st April after giving the entire impact of 9:17 9 minutes, 17 seconds conversion to quarterly as well as after giving the you know benefit of that 15 basis points to customers eligible customers the yield will be opening 9:26 9 minutes, 26 seconds yield will be 9.8 and the spread of 2.8 plus will be maintained. However, as a conservative again as a conservative 9:34 9 minutes, 34 seconds basis, we therefore continue the you know guidance of 2.75% spread and 3.75% on the NIM for the FI27. 9:43 9 minutes, 43 seconds Uh so that is in a nutshell the the entire details of the performance. uh as regards that profitability uh this year 9:51 9 minutes, 51 seconds we have had you know in Q4 two uh one-time specific events one was the impact of DTA wherein earlier in the we 10:01 10 minutes, 1 second were have providing for the DTA on the NPA uh whereas in case of standard assets the DTA was not being provided so 10:09 10 minutes, 9 seconds that has been provided from this quarter onwards that's a one-time impact additional impact of 46 crores uh the normal would have anyway there would 10:17 10 minutes, 17 seconds have been some impact because of the provision DTA on the NPA but this additional for the standard assets that has been provided is additional 46 10:24 10 minutes, 24 seconds crores and there was also the closure of our income tax refund status where 13.5 cr income tax refund was received in was 10:33 10 minutes, 33 seconds received and the matter was closed by the department so that also we have taken into account so excluding these two one-time events also if you look at 10:42 10 minutes, 42 seconds it our profit for the entire year would be as against 1.0 as as against 1085 crores, it will be 10:49 10 minutes, 49 seconds 1027 crores which is also a 20% growth over the last year profit of 857 crores. 10:55 10 minutes, 55 seconds So these are the two one-time events which we have taken into consideration. 11:00 11 minutes So I guess with that that's the in a nutshell going forward um we would have a little impact next in the current 11:08 11 minutes, 8 seconds financial year of about 40 crore which we have been talking about uh in on our cost because of our IT implementation in 11:16 11 minutes, 16 seconds fact 6 cr of that cost in the Q4 has also been has already been booked in this year also so while we were saying 11:22 11 minutes, 22 seconds it will start from uh Q1 of FI27 but 6 cr has come in this year also uh which has been already booked and so 11:31 11 minutes, 31 seconds additional slightly the cost to income ratio next year will be a little elevated which we have been already sharing and uh so overall next year we 11:40 11 minutes, 40 seconds we we hope to be able to maintain our uh ROA of more than 2.3 2.4 in fact more 11:47 11 minutes, 47 seconds than 2.4 four and therefore roe might slightly be impacted because of the cost but still it'll we hope to have an ROE 11:54 11 minutes, 54 seconds of uh of 18 plus. So that's the in a nutshell the highlights of the performance. Um thank you once again for 12:02 12 minutes, 2 seconds joining for this uh uh earnings call and I request now to open it up for the open the floor for questions please. Thank you. 12:11 12 minutes, 11 seconds Uh thank you sir. Uh we will now start the Q&A session. Uh I will request the participant to introduce him or herself stating your name and and the 12:19 12 minutes, 19 seconds organization name. Uh I will unmute the participant and state his or her name. 12:24 12 minutes, 24 seconds Uh and then he can unmute himself uh uh to ask the question. The first question is from Siddhant. Siddhant please uh I'm 12:32 12 minutes, 32 seconds just unmuting you and yes Siddhant you can now unmute yourself and ask your question. Please uh introduce yourself. 12:46 12 minutes, 46 seconds Yeah. Hi. Am I audible? Uh yes Sida, please go ahead. 12:50 12 minutes, 50 seconds Yeah. Hi. So my first question was uh you know how helpful have the IT programs been and has there been any qualitative could you share any 12:58 12 minutes, 58 seconds qualitative insight on how it's helping us right now? 13:03 13 minutes, 3 seconds Sure. Uh see in terms of the IT which we have already implemented we have presented the sh the the slide. So we have already implemented on the 13:10 13 minutes, 10 seconds infrastructure side and also on the security aspect. So both have been completely done and of course that is 13:18 13 minutes, 18 seconds helping us in terms of the speed in terms of the connectivity and all those issues. uh that has come down considerably wherever there were you know this MLS lines that has happened 13:27 13 minutes, 27 seconds considerable reduction has has been witnessed in terms of security of course it is it is just the you know 13:34 13 minutes, 34 seconds it is just the confidence I can talk about but I can't obviously say that you know but we have our MTTR and MTDA that 13:41 13 minutes, 41 seconds is the time to to identify a problem and this we have been very well within our limits and it has been giving us a lot 13:49 13 minutes, 49 seconds of confidence that you know any kind of you know attack on the system we have been able to immediately catch and we have been able to handle it also well. 13:56 13 minutes, 56 seconds So that is well well within our you know prescribed or whatever guid you know benchmarks we have set for ourselves. Uh 14:04 14 minutes, 4 seconds as regards the applications we have already gone ahead with our deposit applications. So that should reduce a lot of our you know time or that would 14:12 14 minutes, 12 seconds be going forward would be there. Other than that in terms of our entire uh HRMS package has gone online. So now there's a lot of saving in that also whatever 14:21 14 minutes, 21 seconds manual calculations and impact that were there that is there but additionally what I can say is that you know the some of the upgrades that we have done we've 14:29 14 minutes, 29 seconds been able to bring in some AI components also have already come in like for example in of our you know digit digital 14:38 14 minutes, 38 seconds uh you know signatures and everything have been implemented uh our entire uh you know DMS has been implemented so search and everything for records has 14:46 14 minutes, 46 seconds improved our uh in terms of our mailing solutions that that has also been completely moved to uh Office 365 14:55 14 minutes, 55 seconds and we also have the benefit of the you know co-pilot and all in terms of legal we have implemented a new solution for you know title search and this um you 15:04 15 minutes, 4 seconds know um legal clearance report and all that has also brought in a lot of efficiencies but of course the main component which is the LOS and LMS which 15:12 15 minutes, 12 seconds is yet to be implemented in Q1 of this year that will also once implemented will give in a lot of advantages and uh we will be able to uh you know so 15:20 15 minutes, 20 seconds therefore you know higher amount of benefit will start coming in at that point in time understood that's great to know the 15:28 15 minutes, 28 seconds second question is you know just after you know I think on April 1st we shifted to uh quarterly reset for most of the 15:35 15 minutes, 35 seconds largest chunk of customers right so after that would you assume that the BT out rate or 15:43 15 minutes, 43 seconds the rundown rate has peaked now are Uh I would probably assume so because you know you know as I as I mentioned you 15:52 15 minutes, 52 seconds know if I look at the data today our you know BT outs in Q4 have marginally increased and that is also probably a 15:58 15 minutes, 58 seconds function of the increased uh you know portfolio otherwise in terms of the percentages it is almost static which 16:06 16 minutes, 6 seconds normally in Q4 is see witnesses a spike because of increased competition and everything but it has almost 380 has 16:14 16 minutes, 14 seconds been just 400 crores for us. So that is not a 370 380s. That's a very marginal increase only. I would therefore assume 16:22 16 minutes, 22 seconds that that would be there because we went across sort the the consent from the customers and we passed on the entire benefit. So now the customers have got 16:30 16 minutes, 30 seconds the benefit they have already we have demonstrated that they will uh not be negatively impacted. So I guess this should be probably the peak. 16:40 16 minutes, 40 seconds Understood. That's why we have also considered only 7,000 cr for FI27 as again 6,600 cr approximately for FI26. 16:49 16 minutes, 49 seconds Understood name. That's great. Just a follow up to this is now if there is a rate hike cycle what lag will we have in our spreads? 16:59 16 minutes, 59 seconds uh see actually you know today almost 85% plus is on quarterly reset and uh in terms of our in terms of our liability 17:08 17 minutes, 8 seconds side about 62% which is the bank related loans is on the is on a uh you know 17:15 17 minutes, 15 seconds linked to reporate. So if there is a repor rate increase on the liability side about 62% of the book will will witness a liability book will witness an 17:23 17 minutes, 23 seconds increase immediately or in the coming month. Whereas on the asset side since 85% is quarterly there will be about maximum maximum one/ird I mean one 17:32 17 minutes, 32 seconds quarter delay might be there. Understood. Perfect. Thank you so much. 17:44 17 minutes, 44 seconds The next question is from Nepur Kena. 17:46 17 minutes, 46 seconds Nepun please unmute yourself. I'm unmuting you here. Hi. Am I audible? 17:54 17 minutes, 54 seconds Yes ma'am please go ahead. 17:56 17 minutes, 56 seconds Yeah sir. Uh how satisfied are you with just under 5% growth in our housing loan book this fiscal? 18:05 18 minutes, 5 seconds uh see actually uh you know it was a conscious effort to have a increase in our uh in our uh you know non-housing 18:13 18 minutes, 13 seconds and and to some extent it was also because we had to focus more on lap particularly in Karnataka where you know in Q1 Q2 and almost Q3 also to some 18:22 18 minutes, 22 seconds extent we had an impact of our ekarta issues where for fresh sanctions there were issues in getting the registration 18:30 18 minutes, 30 seconds or the sale leads and all so there was a compulsory you requirement also where you know in one of the most important markets for us we 18:38 18 minutes, 38 seconds had to focus more on lap uh that is why if you see our lap also has gone up to by almost 2 percentage point in this uh 18:46 18 minutes, 46 seconds financial year but having said that you know going forward I think we will be focusing you know we have almost reached the the limit that we had set for 18:54 18 minutes, 54 seconds ourselves in terms of our housing non-housing so I guess we should probably we will see a higher increase in this current financial year 19:02 19 minutes, 2 seconds okay sir okay okay sir wishing you all the best sir I nothing more to ask. Thank you. Yeah, thank you. 19:20 19 minutes, 20 seconds Yeah, this question is from Pravin Kumar. Pravin, please unmute yourself. I'm unmuting you from here. 19:30 19 minutes, 30 seconds Pravin, you can unmute yourself. Hello. Uh am I audible? 19:41 19 minutes, 41 seconds Yes, please. Yes. Hi. Uh thanks for the opportunity. 19:44 19 minutes, 44 seconds I had a a couple of questions. Uh the first one was on the uh on the disbbursement target and the loan growth 19:51 19 minutes, 51 seconds target. So uh if I do the math correctly then you know excluding Q1 Q2 Q3 Q Q4 20:00 20 minutes you'll need to have around 3,400 cr kind of a dispersement that you need to do right on a run rate. So given that you know you have your branch growth has 20:09 20 minutes, 9 seconds been only to the order of around 7 6 to 7% annualized in the last couple of years uh could you throw some light on how do you plan to you know achieve this 20:18 20 minutes, 18 seconds higher scale of disbburments and a related question is that uh in terms of AUM growth in the in the previous couple 20:25 20 minutes, 25 seconds of quarters for FI27 you were indicating 15%. But I think in your opening commentary you indicated a 14% AM 20:34 20 minutes, 34 seconds growth. So is that a tacet uh recognition that uh the BT out and the prepayments are actually much higher 20:40 20 minutes, 40 seconds than you predicted and that's here to stay? Yeah, that's my first question. Thank you. 20:45 20 minutes, 45 seconds Yeah. Uh yeah, so first I'll handle the disbburment aspect of it. See actually you know the year 23 24 and 2425 also 20:54 20 minutes, 54 seconds from then onwards we've been consistently opening branches. We've opened 54 branches. the first and the second year we had almost uh most of the 21:01 21 minutes, 1 second branches being opened in Q4 or mostly in the month of March. So we couldn't get the benefit of the branch expansion 21:08 21 minutes, 8 seconds whereas last year we entirely opened all the branches the 20 the the the branches 15 branches in the first half itself. So we were able to get the advantage and 21:17 21 minutes, 17 seconds what has happened is in terms of the the disbburment growth we have had two factors which have impacted or supported 21:24 21 minutes, 24 seconds us in our in our growth. one is that the sales team that we had uh opened okay sorry I'll count the branches so as 21:31 21 minutes, 31 seconds against the last year where in FI25 the the new branches which are opened in 23 24 and 2425 contributed only about 21:40 21 minutes, 40 seconds 128 crores the last year because of a change in strategy al and also because you know we could get the full year benefit of the 2425 branches also last 21:49 21 minutes, 49 seconds year the new branches have contributed 863 crores so the new branch strategy that we have done has really helped in the last financial year and going 21:58 21 minutes, 58 seconds forward also this year we are looking at 28 branches to be opened which again we would be opening in the first half of the year. So that also should bring in 22:06 22 minutes, 6 seconds plus this 54 branches that we've opened will also have some more uh efficiency improvements because not all of them have reached their break even points. So 22:14 22 minutes, 14 seconds there also will we are expecting. So this new branch expansion that is there is going to be one key factor pushing or helping us in our growth. The second 22:23 22 minutes, 23 seconds thing is the sales team that we had last year in FI25. We had only about 30 35 people in the sales team and they 22:30 22 minutes, 30 seconds contributed about 183 crores in the full year. Last year post June that is from 1st July we increased the team strength 22:37 22 minutes, 37 seconds and the whole of this FI26 they the team of about 80 to 90 people has contributed around 868 crores. So both these 22:46 22 minutes, 46 seconds parameters that is a sales team as well as a branch expansion is what we are looking at for bringing the growth and sales team this year we are looking at 22:54 22 minutes, 54 seconds increasing it from about 8090 to about 150 people. So which means another 60 odd people we are planning to add to the sales team and as I mentioned 26 23:03 23 minutes, 3 seconds branches 28 branches are also planned to be opened in the first half of this year. So majorly it is these two aspects which will help. The third of course 23:11 23 minutes, 11 seconds aspect is as I had mentioned earlier that Karnataka which had a first half you know slightly negative or whatever 23:18 23 minutes, 18 seconds because of the ekata is now almost kind of getting resolved. So we are looking at a much higher positive coming in from 23:25 23 minutes, 25 seconds both Karnataka as well as Telangana which had some impact of in disbbursement during the current year. 23:31 23 minutes, 31 seconds So basically these are the three parameters why I feel where where it gives us a confidence. The second as you rightly pointed out yes we have to 23:39 23 minutes, 39 seconds acknowledge that we have had a slightly higher prepayments and so therefore we have slightly marginally looked at it but as I said we have taken the step for 23:49 23 minutes, 49 seconds conversion and if therefore we are able to slightly manage our prepayments this could go up but in a nutshell I would 23:56 23 minutes, 56 seconds say the calculation is that 13,000 cr disbursement is what we are planning and uh we have projected for 7,000 cr prep 24:04 24 minutes, 4 seconds payments BT outs and closures if that is reduced obviously the portfolio can even be 15%. But uh you know knowing the 24:11 24 minutes, 11 seconds current situation at least we have factored in 7,000 because you know unlike last year where we had projected less but it slightly was elevated we 24:19 24 minutes, 19 seconds don't want to you know give a higher figure and then fall short of it. 24:23 24 minutes, 23 seconds Understood. Thanks for the response. Uh my second question was again on the road map geographical road map that you have 24:30 24 minutes, 30 seconds uh presented uh this time. uh I noticed that you know the uh proportion of the southern states is marginally increasing in FI28 compared to the FI26 levels. 24:39 24 minutes, 39 seconds Again is that uh does it again imply that Karnataka and Telangan are expected to continue to drive a higher rate of 24:47 24 minutes, 47 seconds growth and hence the south proportion is marginally increasing. 24:51 24 minutes, 51 seconds Uh no two things one of course we had this issues in Telangana and Karnataka which now are getting resolved. So obviously their contribution this 290 cr 25:00 25 minutes or 250 cr which was the run rate will go up in Karnataka. Same way if you look at it our run rate in Telangana will also go up. Therefore the contribution from 25:08 25 minutes, 8 seconds these two states which was actually slightly subdued will will start to show. And the second thing is that you know now that the situation in both 25:16 25 minutes, 16 seconds these states is coming under uh you know has has kind of stabilized. uh in the last 3 years we have not opened a single branch in either Karnataka or in 25:24 25 minutes, 24 seconds Telangana which now slowly we will look at a couple of branches here and there so that is basically the thing I think we are targeting three branches in 25:32 25 minutes, 32 seconds Karnataka and about two branches in Telangana this year out of the 28 so those also we have factored in so maybe it'll be a marginal increase not to 25:40 25 minutes, 40 seconds mention that we are looking at a slowdown in any of the other markets our other markets continue to be to to perform strong uh in fact our north zone 25:49 25 minutes, 49 seconds west zone as uh and you know east including which is mainly Andhra Pradesh have have almost done a 40% plus kind of 25:57 25 minutes, 57 seconds growth in this year in terms of disbbursement and Tamil Nadu which has been already was a well high performing even the two years back continues to 26:05 26 minutes, 5 seconds grow at around close to 30%. So uh it's just that these two states will also start now inching up in terms of the disbbursement. Therefore we have that that is what it is planned. 26:16 26 minutes, 16 seconds Understood. And my last question was on the DSA proportion. See uh in FI26 your DSA proportion of sourcing is somewhat 26:24 26 minutes, 24 seconds similar to the previous year. Uh few decimal points here and there right. 26:28 26 minutes, 28 seconds However, in your P&L when I saw the fees and commission commission expense that's in FI26 seems to have come down drastically compared to FI25 levels. So could you throw some light on that? 26:39 26 minutes, 39 seconds Uh no actually it is only a impact of the amotization and it is impacted both in the income as well as on the expense side. So on the expense side because of the amortization it is reduced. So also 26:48 26 minutes, 48 seconds on the income side because uh it is there. So it is nothing to do with that that the absolute you know outflow or cash outflow of the of the DSC expenses 26:57 26 minutes, 57 seconds has not gone down. It is just the amortization impact which is which is there in this year for which I think there is a note also which we have put in our Q1 because we changed that in our 27:06 27 minutes, 6 seconds Q1 and in Q1 also we have put that note and in Q4 also we have put that note but it is impacting both sides. So on the net net impact in terms of our entire 27:15 27 minutes, 15 seconds P&L there's only a 5 cr difference net of growth but otherwise it's as it's a notization impact not otherwise. 27:24 27 minutes, 24 seconds Thank you. 27:27 27 minutes, 27 seconds The next question is from Subranchu Mishra. Subanchu I'm unmuting yourself. 27:32 27 minutes, 32 seconds You can unmute yourself and ask your question. 27:36 27 minutes, 36 seconds Uh hi Suresh. Good afternoon. Thanks for the opportunity. 27:40 27 minutes, 40 seconds Yeah good afternoon. Uh um so if you can take me through the budgeting per state 27:47 27 minutes, 47 seconds for the dispersements how much are we expecting in these large states that that we have which is Katka, Telangana, 27:54 27 minutes, 54 seconds Tamil Nadu and Andra and also if you can uh talk about north and west as well in 28:02 28 minutes, 2 seconds terms of what we have budgeted for in the in FI27. Uh second is uh how do we 28:09 28 minutes, 9 seconds look at the OPEX growth uh especially the employee and the non-employee if you can split it into two parts and uh the 28:17 28 minutes, 17 seconds third is uh about the credit costs uh uh we have some amount of management 28:24 28 minutes, 24 seconds overlays uh uh so that if you can speak about that and fourth is more macro if 28:30 28 minutes, 30 seconds you can uh you know speak about uh we seeing a lot of disturbances because of West Asia crisis any kind of delinquencies we are seeing in our lap 28:39 28 minutes, 39 seconds book any uh or anything we want to provide for u just as to increase our management overlay or any any kind of 28:48 28 minutes, 48 seconds policy support that we are seeing in CLSS to uh additionally or a demand and supply of an affordable housing it'll be 28:57 28 minutes, 57 seconds uh great thanks sure sure yeah yes yeah uh so I'll first start the dispersalment targeting see I will I will be able to immediate ely 29:06 29 minutes, 6 seconds share with you roughly the run rate that we are doing in in each of the zones or the states growth of next year we are almost 29:14 29 minutes, 14 seconds targeting an almost similar 25% growth across all the zones because uh you know that is what it is so you can have the numbers the exact breakup I think I'm I 29:22 29 minutes, 22 seconds don't have right now but roughly if you look at the current run rate that we are doing we are doing about 275 you can say 29:28 29 minutes, 28 seconds in per month in Karnataka north zone and west zone both are doing about 150 to 29:34 29 minutes, 34 seconds 160 cr Each uh west zone includes you know Rajasthan, Maharashtra, Gujarat and 29:40 29 minutes, 40 seconds MP. North zone covers Punjab, Hana, Delhi, NCR, UP and Himachal, 29:47 29 minutes, 47 seconds Uttarakhand. Uh these two are doing about 150 160 per month. Tamil Nadu does about 180 to 200 cr per month. That is 29:57 29 minutes, 57 seconds the the the contribution and Telangana now is almost doing 110 to 120 cr they are doing per month. and uh east zone 30:05 30 minutes, 5 seconds which is mainly Andhra Pradesh and other states of uh Chhattisgarh, Orisa, Bihar and West Bengal is doing about uh is 30:12 30 minutes, 12 seconds doing about close to 100 cr a month. So that's the current run rate and next year we are projecting almost uniform 25% kind of a growth marginal would be 30:21 30 minutes, 21 seconds some where we are expansion is a little higher it could be going up to some extent that way but this is the present breakup that we are having uh in terms 30:29 30 minutes, 29 seconds of our opex uh I think I'll just give you this work uh in terms of the credit cost uh in fact management overlay I 30:38 30 minutes, 38 seconds don't think we'll be able to we will be adding any more management overlay in terms of uh you in the in the sense of a 30:46 30 minutes, 46 seconds management overlay per se but yes we have slightly you know you would have seen that our PCR has slightly gone up 30:52 30 minutes, 52 seconds from 49% to to 56% this year that is a little more conservative in terms of our valuations and all those things we have 30:59 30 minutes, 59 seconds taken but otherwise in terms of management overlay per se we don't expect uh to we don't we will not be adding anything over that uh but credit 31:08 31 minutes, 8 seconds cost per se as I mentioned we are having a 10 10 basis points cost credit cost in this financial year uh which includes 31:15 31 minutes, 15 seconds the higher uh you know PCR that has been there otherwise next year we don't expect any major increase so while we 31:22 31 minutes, 22 seconds are projecting for 15 basis points I am quite confident it'll be you know well below that only uh as regards our CLSS and P under the PMA the PMA 2.0 there. 31:35 31 minutes, 35 seconds In fact, now you know some traction is slightly happening. In fact, NHB is also making attempts to to tie up with state 31:43 31 minutes, 43 seconds governments to come up with some construction and providing support. Uh so there are some states particularly you know last quarter there was a 31:51 31 minutes, 51 seconds meeting with the UP and then now with Orisa. So there are some each state by state the NHB is also trying to you know 31:58 31 minutes, 58 seconds uh you know tie up and provide that support so that you know there is more supply coming into the CLS or the PMAY 32:06 32 minutes, 6 seconds funding and all so so we are hoping that you know slightly that impact will there but it's not a very major kind of a number that we are talking about in fact 32:14 32 minutes, 14 seconds it's been almost one year and one and a half year or I mean sorry it's almost been a I think sorry 6 months that we 32:21 32 minutes, 21 seconds have done September to now uh in 6 months It's just been about one lakh that the CR that sorry 32:29 32 minutes, 29 seconds I'm sorry only one lakh numbers that have been happened in terms of the PMA numbers across all the HFC's all the 32:36 32 minutes, 36 seconds NVFCs who are claiming and whoever is registered with primary lending institutions hutco and uh NHV so it's 32:45 32 minutes, 45 seconds not a very great number that we have but yes some traction or some improvement is there and hopefully the states other 32:52 32 minutes, 52 seconds than the you know couple states who are doing it can also start chipping in. It might go up a little bit but we are not very very very positive or gung-ho in 33:00 33 minutes that the numbers will jump up in a very drastic manner in terms of our PMA contribution. Uh as regards geopolitical 33:08 33 minutes, 8 seconds impact and all those things currently there is no impact. We are not witnessing anything in our either Natch 33:15 33 minutes, 15 seconds bounce rates or in our delinquency or any customers talking about it so far. 33:20 33 minutes, 20 seconds So it's been just two months but even April we have not witnessed that kind of a pressure. So that's the the situation. 33:28 33 minutes, 28 seconds I hope I covered all question. Yeah one last question if I can squeeze in in terms of prepayments. 33:35 33 minutes, 35 seconds uh if we get 100 applications, how many applications are uh to foreclose or uh do a part payment versus how many are 33:43 33 minutes, 43 seconds actually going out to uh a competition and uh what is this percentage which really goes out to the competition as a 33:52 33 minutes, 52 seconds percentage of if there are 100 applications for prepayment and who are these competitors basically? 34:00 34 minutes Okay, I'll give you my Q4 number. So that should give you some idea. So out of 1730 cr which is the VT out 34:07 34 minutes, 7 seconds prepayment part prepayment amortization and everything you know 400 crores is what has is the BT out okay uh that is 34:15 34 minutes, 15 seconds 400 crores uh there are customers who have closed their loans which either because they have sold the property or they have made other closures because 34:24 34 minutes, 24 seconds it's some some other thing but purely from their own funds uh that is something around 360 crores uh 360 34:31 34 minutes, 31 seconds crores okay and then there are about 970 crores odd which is includes part prepayment and amortization that is the 34:39 34 minutes, 39 seconds principal component of the EMI and part prepayments. So these are the this is the breakup. 400 crores is BT out. 360 34:47 34 minutes, 47 seconds cr is where customers have closed their loans from their own funds or they have sold the property and then taken another loan or moved to another property and 34:55 34 minutes, 55 seconds stuff like that or properties which have got closed because of a surfacey action and third 970 cr approximately spark 35:02 35 minutes, 2 seconds prepayment and amortization. So so that's the kind of number you can say. 35:06 35 minutes, 6 seconds uh so I would say uh you know you know out of 1800 400 so that's that's not that's about 25% of the loans probably 35:14 35 minutes, 14 seconds are uh so so one in four is where it is coming for a BT out the key players who are doing the BT out is is you know LIC 35:24 35 minutes, 24 seconds housing and Bajage these are the two major ones of course uh region specific there are some some u you know local 35:31 35 minutes, 31 seconds banks and stuff also doing it but majority is majority of the branches We'll have LIC as the first competitor and the second would be Baj. 35:42 35 minutes, 42 seconds Understood. This was very helpful. Thank you so much. 35:48 35 minutes, 48 seconds The next question is from Henry Pushutam. Uh please unmute yourself and ask your question. 35:56 35 minutes, 56 seconds Hi, can you hear me? 35:59 35 minutes, 59 seconds Yes. Yeah, please go ahead. Uh first of all congratulations for a very sound set of results and I also wanted to appreciate I've been a shareholder for a 36:07 36 minutes, 7 seconds long period of time. Uh there has been a remarkable degree of consistency in the professionalism and the transparency with which you communicate with us. So 36:15 36 minutes, 15 seconds we really appreciate it. Okay. Um now my question was uh my question was a followup from what previous people had 36:23 36 minutes, 23 seconds asked. you had indicated that in terms of your lap percentage the increase in 2% is now you're now you're quite happy 36:30 36 minutes, 30 seconds with the risk profitability equilibrium so to speak right I'm also assuming that you might be doing the same thing with your target groups means there are some 36:39 36 minutes, 39 seconds which are more profitable but a little riskier and that in a sense uh um you know cup you have already drank from so 36:47 36 minutes, 47 seconds if that is true are there any significant levers for you to improve your profitability in the next uh 12 36:55 36 minutes, 55 seconds months or so. Um given the fact that there going there is an understandable increase in your IT expense to the extent of 40 crores or whatever you have 37:03 37 minutes, 3 seconds mentioned. Um how do you look at improving profitability and how should we look at it? Should we talk think in 37:10 37 minutes, 10 seconds terms of your ability to improve profitability or should we assume that your profitability will be roughly at levels that you currently have? 37:19 37 minutes, 19 seconds Sure. 37:20 37 minutes, 20 seconds Uh okay. So first of all you know uh you know thank you for appreciating our uh you know efforts and our performance. Uh 37:28 37 minutes, 28 seconds so in terms of our you know portfolio mix and our yield and everything uh currently after having passed on entire 37:36 37 minutes, 36 seconds benefit today our entire portfolio yield is around 9.8 actually it's 9.84 maybe there's a there are some portfolio 37:45 37 minutes, 45 seconds which we have not considered for the NPS and all those things. So that's for we have given a conservative 9.80. 80. Our incremental yield is also 9.80 plus 37:54 37 minutes, 54 seconds because you know that's the breakup post our you know change in our mix from uh housing to a little bit of non-housing 38:02 38 minutes, 2 seconds lap increased and all those things and also increased slightly from our self-employed segment which has happened from our salary which has come down from 38:09 38 minutes, 9 seconds about you know 89% has come down to now close to around 84 83%. So that impact we have what we have seen that is 38:18 38 minutes, 18 seconds ensured that the incremental yield is also around 9.8 plus. So therefore you know in terms of our current yield and everything we should be able to maintain 38:26 38 minutes, 26 seconds even if we don't change our mix. But having said that you know as our f our you know road map 2028 shows there is a 38:34 38 minutes, 34 seconds scope for slightly increasing our non-housing as well as our you know SENP category. So which would slightly give 38:41 38 minutes, 41 seconds us a little slightly higher or a little improved yield if we if we work on that a little more. So that is one thing. The second thing is in terms of our cost we 38:50 38 minutes, 50 seconds have given that our present borrowing cost is 6.99 to start with as on 1st of April. uh however on the liability side 38:57 38 minutes, 57 seconds there is some small book which is of NHB where we are yet to get benefit of the rate cut because as and when the 39:05 39 minutes, 5 seconds particular tranch of NHV comes for a rate revision or the annual which is on annual reset at that time they given the PLR impact to us so there is still some 39:13 39 minutes, 13 seconds component of NHV portfolio which not a very large but some portion is there where we are yet to receive that so 39:20 39 minutes, 20 seconds probably our cost will might slightly come down plus the fact that you know Q1 we have already you know got sanctions 39:28 39 minutes, 28 seconds on hand which where the highest cost from banks is at 7%. So we are already getting something uh which will be lower than seven is what we will be raising 39:37 39 minutes, 37 seconds the funds from banks in the coming quarters and you know currently you know the CP rates also compared to Q4 have 39:45 39 minutes, 45 seconds come down. So if there's opportunity we may raise some little bit because already our CP rates CP proportion has almost come down to below 3% which used 39:54 39 minutes, 54 seconds to be at a point in time 6% 8% and so on. So, so therefore we have some scope on the liability side to slightly reduce 40:01 40 minutes, 1 second further and on the asset side to slightly improve if we continue with a little increased SEN and a little more 40:09 40 minutes, 9 seconds in higher percentage of non-housing portfolio. So these are the two things in terms of the the mix. Uh so I guess 40:16 40 minutes, 16 seconds that's that's what it is. uh in terms of the cost as I mentioned yes there is a little extra cost that will come but uh the other area that we have seen is last 40:24 40 minutes, 24 seconds year we have uh you would have noticed that you know our bad debt recovery has also increased slightly uh so there is some scope probably we will we will be 40:32 40 minutes, 32 seconds able to do some recovery and keep the credit costs also lower although we are projected for 15 basis points it'll be definitely below that so that should 40:40 40 minutes, 40 seconds help I'm just wondering whether you have two additional maybe small levers of profitability one is the revenue kick from the increased positivity of 40:49 40 minutes, 49 seconds Telangana and Karnataka and the second is the decreased cost of sourcing through increased digitization. So 40:57 40 minutes, 57 seconds should this would these be significant contributors to some extent or do you think there are marginal contributor? 41:04 41 minutes, 4 seconds No, there will be they will definitely contribute. In fact, as I had mentioned earlier, the LOS LMS once it is introduced, we'll be able to bring in a 41:11 41 minutes, 11 seconds lot of efficiency in terms of our delivery and uh uh and we are also increasing the percentage of our business coming through our direct 41:19 41 minutes, 19 seconds sourcing through our own sales team. So that will obviously help us in a little in in in managing our or reducing our uh 41:26 41 minutes, 26 seconds uh DSA costs. So those are but these will not be adding to much maybe a few basis points definitely. Yes. But maybe that would be what it is. the true 41:34 41 minutes, 34 seconds impact of our IT transformation probably we will be able to you know gauge and come back in FI28 more than in FI27. 41:44 41 minutes, 44 seconds Thank you very much and once again appreciate your team hugely. Thank you. Thank you. Thanks. 41:51 41 minutes, 51 seconds Uh next question is from Pawan Pawan Kumar. Pawan I'm unmuting you. Please unmute yourself and ask your question. 42:05 42 minutes, 5 seconds Please unmute yourself. Can you hear me? Yes. Yes. 42:09 42 minutes, 9 seconds Okay. Uh so I just wanted to understand the cost structure especially in terms of uh two things. One is the employee 42:17 42 minutes, 17 seconds cost which has gone up significantly this particular year. Uh what is our expectations going forward? Uh secondly 42:24 42 minutes, 24 seconds uh on the uh Sur did mention that 40 crores incremental expenses will come in 42:31 42 minutes, 31 seconds uh next year. Uh is it on an uh so for for the year it is 40 crores extra on IT 42:38 42 minutes, 38 seconds infrastructure is it I just wanted to clarify can you just uh 42:46 42 minutes, 46 seconds clarify is it 40 for the entire year? 40 yeah 40 cr is for the entire year because currently you know the entire IT 42:52 42 minutes, 52 seconds project was has a total outlay of 300 crores of which 100 crores was capex 200 cr was was opex spread over 5 years so 43:01 43 minutes, 1 second if the the depreciation and order kick in mainly from this financial year that is fi 27 so the depreciation component 43:08 43 minutes, 8 seconds of the of the of the capex and the opex which will be there the total cost in fi in one financial year will be about 60 43:15 43 minutes, 15 seconds crores whereas currently we are paying about 20 crores total cost for our IT in a financial year. So the net impact will be 40 crores for the full year. Okay. 43:25 43 minutes, 25 seconds And in terms of our uh uh the full year uh opex it's about 311 crores of which 43:32 43 minutes, 32 seconds 177 cr is for the the employee cost and the other cost is about 134 cr. So the employee cost will probably go up by 43:40 43 minutes, 40 seconds about you know 10 12% because we are also adding staff and there will be some increments and all and the other cost which is 134 cr will probably go up to about 175 to 180 crores. 43:53 43 minutes, 53 seconds Okay. Okay. And uh the ID this 40 crores incremental does it also include the 44:02 44 minutes, 2 seconds amotization of 100 crores capex that we have done or yes that is included. So as I said the 100 cr is the is a capex so the 44:11 44 minutes, 11 seconds depreciation will also start. So I said that's what the depreciation of the of the capex plus the opex will be about 60 cr and net 40 cr 44:20 44 minutes, 20 seconds and this 100 crores cap capex has already been done or it will be done in the it will be completed in the next 6 44:29 44 minutes, 29 seconds months how does that work it is part of ci capital work in progress we'll capitalize once the 44:36 44 minutes, 36 seconds but has the entire 100 so almost the entire component has already been taken into Uh yeah. 44:45 44 minutes, 45 seconds Okay. Okay. Thank you. Uh the next question is from Abijit Tar. 44:54 44 minutes, 54 seconds Abijit please unmute yourself. 45:08 45 minutes, 8 seconds Yeah. I think uh we not please unmute yourself and ask a question. Yeah. Am I audible now? Yes. 45:15 45 minutes, 15 seconds Yes. Yes. Yeah. Vij. Hi sir. Thank you for taking question. 45:19 45 minutes, 19 seconds Uh so in the quarter we have seen good 45:24 45 minutes, 24 seconds momentum in terms of discussions for us we have seen. 45:32 45 minutes, 32 seconds Sorry your voice is very muffled. Abijit we are not able to hear you. Just just give me one minute. Try to uh sir is it better now? 45:46 45 minutes, 46 seconds Yeah, this is better. Much better. Please go ahead. 45:51 45 minutes, 51 seconds To understand is this fourth quarter we have seen very good momentum and disbbursements uh for us as well as a 45:58 45 minutes, 58 seconds few other players who might report and ones who already reported. But fourth quarter after maybe a lull in the first 46:07 46 minutes, 7 seconds half uh third quarter we saw things picking up and then fourth quarter uh things really picked up when it comes to housing. So you think this was just 46:15 46 minutes, 15 seconds seasonality le or are there I mean real structural triggers at play which is leading to a good demand because sir 46:24 46 minutes, 24 seconds when we hear analysts who are tracking real estate experts who are tracking real estate they're all talking about 46:31 46 minutes, 31 seconds the the strong upcycle that we saw in real estate and housing kind of seems to be tapering off now. uh I don't know 46:39 46 minutes, 39 seconds whether this is just applicable to higher ticket size loans or the same comment can be applied equally to affordable uh housing as well. So so 46:49 46 minutes, 49 seconds that was the first question that I had that what is the outlook on demand. So one thing is we we guide for a certain 46:56 46 minutes, 56 seconds disbbursement certain sanction number right but underlying that is the demand also very strong which will help us do 47:04 47 minutes, 4 seconds that or do you think that the demand is weakening and if we have to get to maybe the 13,000 cr disbursement number that 47:12 47 minutes, 12 seconds you spoke about earlier that will require market share gains that is the first question I had the second question 47:19 47 minutes, 19 seconds I had sir was around margins u like you mentioned almost 85% of our customers 47:26 47 minutes, 26 seconds are now on quarterly reset effective April 1st. So uh and then I remember you also spoke about a small tranch from NHB 47:35 47 minutes, 35 seconds which is expected to get repriced sometime later this year. So a combination of both these things on one side you have customers getting repriced because they are now on quarterly reset. 47:46 47 minutes, 46 seconds At the same time there are uh I would say small little pockets on the liabilities side which can also get repriced. So to combine together what 47:55 47 minutes, 55 seconds could be the outlook on spreads and margins and lastly sir uh just wanted to understand given that we have a good 48:04 48 minutes, 4 seconds presence in Bangalore which is the IT hub u do we have customers who have got 48:11 48 minutes, 11 seconds impacted by layoffs in the IT sector or are those predominantly customers who are catered to by the banks too. So those three questions. 48:20 48 minutes, 20 seconds Sure. Uh so first thing about the disbbursement yes to some extent there is a seasonality because normally you know across the years we have seen that 48:28 48 minutes, 28 seconds it's a 45% 55% break up H1 H2 so roughly H1 is a little lower than H2 definitely 48:35 48 minutes, 35 seconds and as in Q3 and Q4 once the you know festive season starts the demand picks up and the business also picks up so that is mainly the the seasonality part 48:44 48 minutes, 44 seconds of it and having said that you know we don't see any major impact in our demand side because across our branches. We are 48:51 48 minutes, 51 seconds seeing a good amount of inquiries coming in still even normally know you know you know post March there is a slowdown and 48:59 48 minutes, 59 seconds people generally but that is also we are seeing that you know there is a good amount of demand there good inquiries are coming in and we are not seeing that much of an issue in terms of the at 49:07 49 minutes, 7 seconds least the segment that we cater to probably yes there is a definite slowdown in the affordable segment and that is also reflected in the numbers 49:15 49 minutes, 15 seconds because you know if you look at affordable if you look at mid-segment and you look at prime yes affordable definitely has is now in the in the the 49:23 49 minutes, 23 seconds mids singledigit numbers that growth that we are talking about. So definitely affordable is impacted in terms of demand but um in the segment that we are 49:32 49 minutes, 32 seconds catering to I think we at least are not seeing any major change or slowdown or anything in that in terms of the demand. 49:39 49 minutes, 39 seconds uh as regards the margins see what has happened is this this entire 45 or 48% of the loans that we had uh which were 49:47 49 minutes, 47 seconds at uh you know annual reset we sent across communication to them and we got in touch with them and basically the remaining 15% are those customers who 49:57 49 minutes, 57 seconds either have opted not to shift to quarterly reset or who have right now not uh you know taken a call. So the 50:04 50 minutes, 4 seconds shift now further from here to the you know quarterly reset probably will be a little slow because these are customers who opted for this thing. So only thing 50:12 50 minutes, 12 seconds would be in case of a of a rate going up yes this 15% will will have an impact where you know the the there will be a 50:21 50 minutes, 21 seconds lag effect in terms of the assets getting repriced. But on the liability side I said currently assuming that this 50:29 50 minutes, 29 seconds 15% does not move to quarterly reset and remains same you know we have taken into consideration the entire impact of the 50:38 50 minutes, 38 seconds reset as well as the 15 basis points that we passed on in January. Therefore no further uh you know uh reduction is 50:46 50 minutes, 46 seconds expected on the asset side in terms of the yield. As I said our incremental yield is also a little higher than 9.8. 50:52 50 minutes, 52 seconds Therefore, you know, even that is not going likely to eat into our our overall yield for the on the on the book. 50:59 50 minutes, 59 seconds Therefore, you know, whatever we are expecting a reduction in our NHB refinance rates or whatever we are able to get in terms of our better pricing 51:07 51 minutes, 7 seconds from a bank term loans or repricing of our or or being able to raise CP at a lower rate that will help us actually reducing our cost further which should 51:16 51 minutes, 16 seconds actually help us in improving our our spread. So the only flip side will be if the rates start going up then this 15% is where we will slightly get impacted. 51:26 51 minutes, 26 seconds Okay. So that's as regards margin. So we are confident that the 2.8 which is there is is kind of is there we don't 51:34 51 minutes, 34 seconds have a problem in that and uh but we do conservatively talk about 2.75. 51:40 51 minutes, 40 seconds Okay. As regards IT impact our IT impact has been very very less impact. I don't think our in fact our our delinquency 51:47 51 minutes, 47 seconds ratio in Karnataka is the lowest among all our six zones and we've not seen that impact. In fact our absolute value 51:55 51 minutes, 55 seconds of NPA in Karnataka is in March 206 is lower than our absolute value of NPA in 52:02 52 minutes, 2 seconds Karnataka in March 25. So I think that should give you the confidence that we've not had the impact of the IT job losses and everything in uh in this. So 52:10 52 minutes, 10 seconds I guess that's that's what anyway our IT salary segment coming from IT segment is only about 6% of our book it's not very high. 52:21 52 minutes, 21 seconds Got it sir. And then so just one followup um where you mentioned right that margins can be maintained at 52:29 52 minutes, 29 seconds margins or spreads for that matter where you said spreads can be maintained at 2.8% and you've conservatively guided 52:36 52 minutes, 36 seconds for 2.75. So sir then when we look at the entire uh business model the only 52:42 52 minutes, 42 seconds risk that is left then is basically a a rate up cycle where the rates start 52:49 52 minutes, 49 seconds going up and this 15% who have still not opted for the quarterly reset they are the ones do you think are the only risk 52:57 52 minutes, 57 seconds today I guess in ter for the spread component yes and uh you know therefore uh I I mean we don't see any change in that 53:06 53 minutes, 6 seconds because our current incremental spread also will not eat into our overall spread. 53:12 53 minutes, 12 seconds Got it. And so lastly cost of borrowings while you spoke about NHB but when we are speaking to other uh other NBFCs 53:21 53 minutes, 21 seconds other HFCs all of them were acknowledging and and while we don't borrow too much from the debt markets but debt market borrowings had gone up 53:29 53 minutes, 29 seconds significantly especially in the month of March and they have subsequently pulled off a little bit in the month of April. 53:36 53 minutes, 36 seconds You think that the cost of borrowing bottoming up has now come to an end and from here cost of borrowings either 53:43 53 minutes, 43 seconds remain stable or inch up or do you think there is some more leg some room left 53:50 53 minutes, 50 seconds you know uh except this NHP borrowing that you spoke about where cost could further come down remain sideways or 53:58 53 minutes, 58 seconds inch up from here see uh today if you would see our presentation from 55% which was our bank 54:05 54 minutes, 5 seconds borrowing it has gone up to 62%. So basically you know we have relied more on bank borrowings where we have got 54:11 54 minutes, 11 seconds rates at below 77 and below 7% and raised that that that that funding rather than depend or go to the debt 54:19 54 minutes, 19 seconds market. Okay, that is the one point. U second thing is in Q4 some of them uh I I'm sure the you know the the rates are 54:28 54 minutes, 28 seconds very much there for everybody to see the the debt market rates even CPS actually had gone up considerably post the you 54:35 54 minutes, 35 seconds know the shift in the the geopolitical situation and all those things but we had if you recolct we had indicated that we were sitting on a 1,000 cr of 54:43 54 minutes, 43 seconds unutilized NHB sanction in at the end of Q3 and that was also because we had total 1 1500 we had planned wherein we 54:50 54 minutes, 50 seconds could draw,000 cr in the Q4 when normally the rates because of a tighter liquidity are on the higher side. So we had you know planned our liability side 55:00 55 minutes accordingly and therefore we were obviously benefited which is uh which is there uh going forward other than this NHP I mean the only thing would be that 55:08 55 minutes, 8 seconds we have about today our NCDs are at the highest uh you know cost of uh funds for us which is on a blended outstanding 55:17 55 minutes, 17 seconds portfolio of NCDS is around 7.67 or uh 7.66 6667. So there in fact if we are able to as in when the maturity happens 55:25 55 minutes, 25 seconds we'll be able to replace them with a lower cost in series because today the rates are at a lower uh lower than the 7.67. So that is one thing plus as I 55:33 55 minutes, 33 seconds mentioned CPS CPS in Q4 had gone up 90 days CP had gone up to almost uh almost 55:40 55 minutes, 40 seconds 7% and a little above 7.35 also whereas now today you are we we raised in in the 55:47 55 minutes, 47 seconds month of April we raised CPA fresh CP 6.35 so these are some of the the timing 55:56 55 minutes, 56 seconds differences where you know if we have to we have to be careful and see if we can draw at the right time we will we will use those opportunities 56:04 56 minutes, 4 seconds lord sir this is useful thank you very much and I wish you and your team the very best thank you 56:11 56 minutes, 11 seconds yeah there is a follow-up question from pushotam uh you have a follow-up question if you have please ask a 56:19 56 minutes, 19 seconds question can you hear me uh yes please go ahead uh just you mentioned that your prepayments you are largely losing out 56:27 56 minutes, 27 seconds to LIC housing and to Bajach finance right correct Now, LIC Housing I can understand that they will be basically luring customers 56:36 56 minutes, 36 seconds by virtue of price. I was a little surprised to hear that about Bajage Finance. I thought their their plank would be mostly convenience and ease and 56:45 56 minutes, 45 seconds quickness of for this thing. But since a person has already been sanctioned alone by you that cannot be an advantage for Bajach Finance. So can you just throw 56:54 56 minutes, 54 seconds some light on competitive behavior and um and why do you think they are behaving the fashion that they want? No, you're you're absolutely right LIC 57:02 57 minutes, 2 seconds because they offer a lower rate. In fact, they were also offering 7.15 at a point in time for new business and um 57:10 57 minutes, 10 seconds that is one thing but in case of Bajage what happens is it's normally a takeover plus top up and many times we are not able to match the kind of top up that 57:18 57 minutes, 18 seconds they are able to offer. So that is some area where we lose sometimes to bajads that is one uh aggressive uh you know 57:26 57 minutes, 26 seconds they the I I mean I wouldn't want to you know get into that but yeah sometimes we not able to match the top up so it's usually a you know BT plus top up where 57:34 57 minutes, 34 seconds they are able to offer the same rate on a takeover probably but on the top up they are able to give a much higher amount 57:41 57 minutes, 41 seconds so any uh thinking of on how to counteract that or you saying that we'll just live with that 57:49 57 minutes, 49 seconds uh no I guess you know we we are a little more conservative in our LTV values when it comes to takeover or topup loans and all those things. So I 57:57 57 minutes, 57 seconds guess you know it has helped us in in the in the past and we would like to maintain that conservative approach. So sometimes yes it it hurts but uh I think the conservatis has helped. 58:09 58 minutes, 9 seconds Thank you. Thank you very much. 58:14 58 minutes, 14 seconds Thank you. Uh as there are no further questions from the participant, I now hand over the co over the conference over to Mr. Suresher and the team for 58:23 58 minutes, 23 seconds his closing comment. Sure. Thank you Nesh and thank you to once again to all of you for joining this earnings call of 58:29 58 minutes, 29 seconds camps for Q4 FI26 and I hope we have been able to answer uh all the queries. 58:35 58 minutes, 35 seconds In fact, one of the queries we couldn't answer then but it subsequently came up and I guess we've been able to answer that also. So on the cost breakup. So if 58:43 58 minutes, 43 seconds there are any qu further queries of course you can uh please feel free to get in touch with us and uh once again thank you very much 58:52 58 minutes, 52 seconds on behalf of Canfin Homes Limited we conclude this conference. Thank you for joining us and you may disconnect your lines now. Thank you. 58:59 58 minutes, 59 seconds Thank you.