Capri Global Capital Limited — Q2 FY26

Capri Global Capital Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IqG3buJUDIg Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to Capri Global Capital Limited Q2 and FY26 earning conference call 0:08 8 seconds hosted by Go India Advisers. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask 0:16 16 seconds question after the presentation concludes. Should you need assistance during this conference call, you may press star and then zero on your 0:25 25 seconds touchstone phone. I now hand the conference over to Mr. Hardik Doshi from Kri Global Capital Limited. Thank you and over to you sir. 0:36 36 seconds Good afternoon everyone and welcome to Q2 FI26 earnings call for Capri Global Capital Limited. This is Havik Dooshi 0:44 44 seconds head corporate finance and investor relations. Before we begin, as a brief disclaimer, the discussion on today's call regarding Capri Global Capital 0:53 53 seconds Limited's earning performance can be based on judgments derived from the declared results and information on business opportunities available to the 1:00 1 minute company at this time. The company's performance is subject to risk, uncertainties, and assumptions that could cause results to differ materially 1:08 1 minute, 8 seconds in future. Given this uncertainty and other factors, participants on today's call may observe caution while discussing the results. 1:17 1 minute, 17 seconds The full disclaimer is available on slide 63 of the earnings presentation. 1:21 1 minute, 21 seconds Participants are requested to kindly take note of the same. 1:26 1 minute, 26 seconds Let me now introduce the management team on today's call. With us today on purpose, we have Mr. Rajes Sharma, managing director and promoter of the 1:34 1 minute, 34 seconds company. Mr. Manurra, chief executive officer. Mr. Kishor La, chief financial 1:40 1 minute, 40 seconds officer. Mr. Sjiv Shivatawa Chief Officer Maur director business strategy 1:50 1 minute, 50 seconds Mr. AJ Manguna executive director in market I would now request our managing director Mr. Raj Sharma candidate of 1:58 1 minute, 58 seconds office remark of the result. Over to you sir. 2:06 2 minutes, 6 seconds Good afternoon everyone. I hope you all are doing well and had a joyful Diwali celebrations. 2:13 2 minutes, 13 seconds We announced our audited financial results for the second quarter of FY 2026 on 29th October. I trust you had 2:22 2 minutes, 22 seconds the opportunity to go through our earnings presentation which is also available on our website. 2:30 2 minutes, 30 seconds Before I move on to the financial and operation highlights, I would like to touch upon a key developments during the quarter. 2:39 2 minutes, 39 seconds Please strengthen our leadership team by the appointment of Mr. Monuatra CEO of the company. Mr. Ratra brings over two 2:46 2 minutes, 46 seconds decades of experience in the financial services and mortgage finance and having held leadership roles across leading banking and financial institutions. 2:55 2 minutes, 55 seconds We successfully completed our madame public issuance of secured rated listed redeemable non-convertible dementures 3:02 3 minutes, 2 seconds for rupees 400 cr. The issue received an overwhelming response being oversubscribed across all investor 3:10 3 minutes, 10 seconds categories, institutional, non-institutional, high netw worth individuals and retail investors. The 3:17 3 minutes, 17 seconds strong subscription reflects the trust and confidence investors place in our business model, governance standard and long-term growth outlook. 3:27 3 minutes, 27 seconds This successful issuance not only broadens our investor base but also enhances our access to debt capital market paving the way for larger 3:36 3 minutes, 36 seconds issuance and further diversification of our borrowing profile in the future. 3:41 3 minutes, 41 seconds Coming to our business and earning performance during the quarter. Uh if you talk about business performance, we begin FY26 with a strong momentum across 3:50 3 minutes, 50 seconds all our lending businesses and sustain that trajectory through the second quarter. As of September 30th, 2025, our 3:59 3 minutes, 59 seconds consolidated AUM is true to 27,40 crores reflecting a robust 40% year-on-year growth and 9% quarteronquarter growth. 4:10 4 minutes, 10 seconds This performance was underpinned by broad-based expansion across segments. 4:15 4 minutes, 15 seconds Gold loan grew an impressive 58% yearonear while housing loans rose 37% yearonear. Our co- lending also s 61% 4:25 4 minutes, 25 seconds yearonear to rupees 5,677 cr now accounting for almost 21% of total amum up from 18.9% in Q1 FY26. 4:37 4 minutes, 37 seconds Highlighting our study focus on capital efficient growth. 4:45 4 minutes, 45 seconds Disbustments for the quarter rose 64% yearonear to rupees 8,952 crores. 4:53 4 minutes, 53 seconds Supported by a widening distribution network and growing customer base. Our growth remains granular diversified and 5:00 5 minutes retail l with our customer base now exceeding 5.9 lakhs. We reaffirming the scalability 5:08 5 minutes, 8 seconds and receiving our business model in our gold business. We achieved a significant milestone this quarter with 5:16 5 minutes, 16 seconds the gold aum crossing rups 10,000 cr and over 10 lakh customer service since inception. Gold loan grew by 58% 5:25 5 minutes, 25 seconds yearonear to rupees 10,46 cr reinforcing our strong position in this high yield secured lending segment. 5:35 5 minutes, 35 seconds During the quarter we added 21 new gold on branches further expanding our presence in Madhya Pradesh, Gujarat Uttar Pradesh and marking our new entry into Bihar. 5:46 5 minutes, 46 seconds Branch productivity continued to strengthen during this quarter. Average AUM per branch increased to rupees 12.4 crores 5:55 5 minutes, 55 seconds supported by improved employee productivity with AUM per employee rising from rupees 1.4 4 cr in Q2 FI25 6:02 6 minutes, 2 seconds to rupees 2.1 cr in Q2 FI26 as of September 2025 762 branches are 6:09 6 minutes, 9 seconds operating above the break even threshold of this 5 code even per branch underscoring enhanced operating leverage across the network 6:17 6 minutes, 17 seconds with a fully digitized loan journey offering t of less than 30 minutes AI enabled security systems and stronger customer stickiness evidenced by 55% 6:27 6 minutes, 27 seconds plus repeat borrowers the gold business remains a key growth engine driving profitable and scalable expansion for the company. 6:40 6 minutes, 40 seconds Our MSN grew to rupees 5,6002 cr rupes up by 18% yearonear. During the quarter 6:48 6 minutes, 48 seconds we further expanded our MSN presence in Uttar Pradesh and the addition of 13 new branches. 6:54 6 minutes, 54 seconds We are also broadening our reach through MSME prime a focus offering designed to cater to lowrisk self-employed customers 7:02 7 minutes, 2 seconds in urban markets of Maharashtra NCR. Within MSME our microlled business continues to gain a strong traction with 7:11 7 minutes, 11 seconds EU rising rupees 543 cr. This vertical enable us to serve emerging self-employed borrowers with smaller 7:18 7 minutes, 18 seconds ticket size requirements. The microlab business is now present across 137 locations following 43 net branch 7:27 7 minutes, 27 seconds additions during the quarter expanding our footprint in Andhra Pradesh, Telangana and marking our entry into 7:34 7 minutes, 34 seconds Tamil Nadu and Karnataka. Our immediate focus is on enhancing sales productivity and operational efficiency across these 7:41 7 minutes, 41 seconds new branches before undertaking further expansion. We see significant long-term potential in MSME segment and with the recent network additions, we expect 7:50 7 minutes, 50 seconds growth momentum to accelerate in the coming quarter. 7:56 7 minutes, 56 seconds Housing AUM is stood at rupees 5,972 crores building a yearon growth of 37%. 8:05 8 minutes, 5 seconds We continue to see resilient demand across the affordable housing segment where rising income levels and lower interest rate regime are driving demand 8:14 8 minutes, 14 seconds for housing loans. We also announced our for southern India housing market with the opening of four new branches in 8:21 8 minutes, 21 seconds Telangana to deepen our presence in this high quality affordable housing market. 8:26 8 minutes, 26 seconds This expansion marks an important milestone positioning Capri as a national player in the housing finance space. This strategic expansion will 8:34 8 minutes, 34 seconds further enhance portfolio gradually, strengthen asset quality and support healthy yield expansion over time. Our construction finance is improved 48% 8:43 8 minutes, 43 seconds year rupes 4,969 crores. Now funding over 286 active residential projects with an average 8:52 8 minutes, 52 seconds sanction ticket size of rupees 51 cr and outstanding portfolio ticket size of 17 crores reflecting very granular ticket 9:01 9 minutes, 1 second size in construction finance too. The book remains well diversified by geography and granularity reflecting our 9:08 9 minutes, 8 seconds focus on working with midsize and small developers in metro and tier one cities. 9:13 9 minutes, 13 seconds We continue to emphasize discipline under the writing through rigorous due diligence and escro based cash flow management ensuring a risk first approach. 9:25 9 minutes, 25 seconds Our total branch network expanded to 1,224 locations in Q2 FY26 with a net addition of 26 branches during this quarter. 9:36 9 minutes, 36 seconds While our employee base increased marginally to 12,197 up by 6% quarter on quarter. During the 9:44 9 minutes, 44 seconds quarter we also entered several new geographies further strengthening our ambitions of building a pan India footprint. This expansion not only 9:52 9 minutes, 52 seconds enhances our customer reach and brand visibility across newer territory but also lays the foundation for the next phase of growth as we continue to deepen 10:01 10 minutes, 1 second presence in existing high potential states and selectively enter under penetrating regions. 10:08 10 minutes, 8 seconds Now coming to earning performance let me now provide an update on core earnings. 10:13 10 minutes, 13 seconds Our yield and space on net advances remained healthy in the quarter at 16 and a half% and 6.9% respectively 10:21 10 minutes, 21 seconds reflecting a 50 basis point improvement year on year. The increase in yields was dot based driven by expansion across all 10:29 10 minutes, 29 seconds key retail products that is MSME gold loans and affordable housing loans. Our net interest income for Q2 FY26 is two 10:38 10 minutes, 38 seconds date rupees 480 crores representing a strong 57% increase yearon year and 15% quarteron quarter. This robust 10:47 10 minutes, 47 seconds performance was supported by continued loan book expansion improved pricing and enhanced margin efficiency. 10:55 10 minutes, 55 seconds We continue to strengthen our non-interest income streams in Q2 FI26 reinforcing our strategies of building a 11:03 11 minutes, 3 seconds diversified and resilient earning profile. Non-interest income grew 97% year on year and 22% quarteron quarter 11:10 11 minutes, 10 seconds rupees 203 cr contributing 29.8% of net total income for the quarter. This strong increase was budget driven by 11:19 11 minutes, 19 seconds growth in commission on insurance distribution and co-ending fee income. 11:26 11 minutes, 26 seconds In our insurance distribution business, we generated a net fee income of rup 28 cr during this quarter. We further broaden our product offering with the 11:34 11 minutes, 34 seconds inclusion of products such as capri jewel product, a jewelry insurance product and group personal accident cover for customer groups. With the 11:43 11 minutes, 43 seconds launch of our digital distribution platform, Capri care, we aim to enhance insurance penetration across our growing retail customer base. Over time, we 11:52 11 minutes, 52 seconds expect insurance to evolve into a meaningful contributor to our overall feed. Meanwhile, our co-ending incomes 12:00 12 minutes 281 cringing continuous strength in the segment driven by higher dispersal volume and 12:08 12 minutes, 8 seconds deeper engagement with partner banks. 12:13 12 minutes, 13 seconds Our car loan distribution business maintain a steady momentum with originations of 12:21 12 minutes, 21 seconds which 2,870 growth in Q2 FI26 up 14% yearon year with a growing footprint and deep relationship across 13 partner 12:29 12 minutes, 29 seconds Dennis institution. We built a scalable platform with the pen India network in this segment with the potential to monetize further for distribution of other products. 12:40 12 minutes, 40 seconds On the expense front, our operating expense in increased 29% yearon year and 25% on quarter. The year on year 12:49 12 minutes, 49 seconds increase was primarily driven by increase in our employee base while the sequential rise reflected salary increment bonus and incentive during the 12:58 12 minutes, 58 seconds quarter and the impact of one of benefit of the 15 in the previous quarter. 13:02 13 minutes, 2 seconds Adjusting this for this the quartertoarter increase would have been around 18%. Our continued focus on operation efficiency is clearly visible 13:10 13 minutes, 10 seconds with the cost to income ratio improving significantly to 49% Q2 FI23 compared with 64% FI25. 13:21 13 minutes, 21 seconds This sharp improvement underscores the benefit of the nursing branch network driving rising productivity and strong operating leverage across our business 13:30 13 minutes, 30 seconds as a result of margin expansion improvement in operating efficiency and a strong traction in fee income. Our 13:38 13 minutes, 38 seconds pre-provision operating profit sar to rupees 345 cr during the quarter. 13:44 13 minutes, 44 seconds Further we continued our strong profitability momentum in Q2 FI26 delivering a robust fat of rupees 236 cr 13:53 13 minutes, 53 seconds up 143% yearonear our return ratio considering considerably improved during 13:59 13 minutes, 59 seconds the quarter with ROE of uh 14.4% 4% and uh return on average assets at 4% for 14:06 14 minutes, 6 seconds the quarter. This sharp growth was driven by consistent performance across all business segments. 14:13 14 minutes, 13 seconds As regard asset quality our impairment cost for the practice today rupes 31 crores in Q2 FI26 down from rupees 81 cr 14:21 14 minutes, 21 seconds in Q and FI26 or 46% of the gross loan book and our provisioning coverage ratio on stage three loans improved to 43% 14:30 14 minutes, 30 seconds demonstrating our proven provisioning and consider approach to risk management stage two assess remaining flat quarter 14:37 14 minutes, 37 seconds on quarter stage two provision increase by 8 cr quart quarter on quarter If stage three asset decline 61 cr quart 14:46 14 minutes, 46 seconds quarter and quarter and stage three ECL position decline by 19 cr quarter and quarter this was on account of rupees 79 14:53 14 minutes, 53 seconds cr of MSME portfolio sales to ARP gross stage three asset at 1.3% was down 15:00 15 minutes sequentially by 39 bases while net stage three stood at 7% down 26 sequentially 15:11 15 minutes, 11 seconds as regards Capital liquidity position borrowing following equity capital infusion of 15,000 cr in Q1 FI26 our 15:20 15 minutes, 20 seconds balance sheet is now significantly stronger providing ample headroom to support accelerated growth across 15:26 15 minutes, 26 seconds business segments our standalone capital adequacy ratio of CGC is about 32.9% 15:33 15 minutes, 33 seconds and 26.1% for captivable housing trans limited our leverage ratio remains quite comfortable at 2 and a half 2.5 times 15:42 15 minutes, 42 seconds Liquidity remains comfortable with over rupes 3,200 cr in cash and bank balances investment and undrawn credit line 15:50 15 minutes, 50 seconds across the year and CGFL. Our borrowing increased by 31% yearon year and incremental borrowing financial limits 15:58 15 minutes, 58 seconds year to date. This fiscal was around 3,500. 16:02 16 minutes, 2 seconds We continue to diversify our funding mix by raising funds through other instruments such as MCD and commercial 16:09 16 minutes, 9 seconds paper. As I mentioned earlier, we raise 400 through through MCD that is coupon rate up to 9.7% and tenure up to four 16:18 16 minutes, 18 seconds years. With the softening of interest rate environment and decline in MCLR, we expect further benefit to acrew in our 16:25 16 minutes, 25 seconds cost of borrowing in next couple of quarters. 16:29 16 minutes, 29 seconds As regards technology, our technology investment remains central to our ability to scale securely, efficiently and profitably. During the quarter, we 16:37 16 minutes, 37 seconds invested rupees 29 cr in technology, deploying several artificial intelligence-driven initiatives aimed at strengthening asset quality and 16:45 16 minutes, 45 seconds enhancing recovery. For instance, our newly launched digital auction platform is enabling higher realization by 16:52 16 minutes, 52 seconds attracting a broader pool of biders for respon repurchase properties. 16:58 16 minutes, 58 seconds We are also leveraging artificial intelligence to refine customer and collateral evolution processes. our AI 17:07 17 minutes, 7 seconds based bureau analytics tools and empowers teams with datadriven insights enabling smarter and faster credit 17:14 17 minutes, 14 seconds decisions. On the data analytics front, we are transitioning to realtime analytics capability which will allow 17:21 17 minutes, 21 seconds proactive portfolio monitoring and sharper business decisions across functions. In parallel, our capri communication portal and 17:29 17 minutes, 29 seconds state-of-the-art omni channel platform now ensures seamless, consistent, and faster communication with both customers and employees across multiple touch 17:37 17 minutes, 37 seconds points. Cyber security and compliance upgrades remain core priorities as we expand our digital footprint. I'm 17:46 17 minutes, 46 seconds pleased to share that system reliability has significantly improved with outages now virtually eliminated and our infrastructure is fully equipped to perform at scale. 17:57 17 minutes, 57 seconds Coming to ESG on the ESG front, we achieved a significant improvement in system analytics. ESG risk rating from 31.1 18:05 18 minutes, 5 seconds to 24 uh moving us from high risk to the medium risk category. This seven point improvement reflects our continued 18:13 18 minutes, 13 seconds progress in strengthening EAG management gesture, governance framework and datadriven reporting practices across the organization. We also published our 18:22 18 minutes, 22 seconds annual business impact report and sustainability report highlighting our progress initiative across EG and broader sustainability goals. To 18:30 18 minutes, 30 seconds summarize, you delivered consistent and all round performance in the current quarter, achieving our highest our quarterly profit with a strong capital 18:38 18 minutes, 38 seconds base, a scalable branch network, a diversified portfolio already having invested heavily in the technology. We 18:45 18 minutes, 45 seconds are well placed to deliver 25 to 30% annual AUM growth and sustainable return on average equity of 16 to 18% plus 18:55 18 minutes, 55 seconds return on average assets of 4 to 4 and a half% by FI28. 19:01 19 minutes, 1 second We share now take the question. Thank you. Thank you sir. 19:08 19 minutes, 8 seconds We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to 19:16 19 minutes, 16 seconds remove yourself from the question queue, you may press star N2. Participants are requested to use headset while asking a question. 19:24 19 minutes, 24 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 19:31 19 minutes, 31 seconds Our first question come from the line of Aman Bahhati from Incorrect. Please go ahead. Hi uh thank you for the opportunity sir. 19:40 19 minutes, 40 seconds Uh my first question comes in uh in the context of our branches. So our net 19:46 19 minutes, 46 seconds addition uh for this quarter was 86 branches which was uh quite sharp compared to the earlier quarters and 19:55 19 minutes, 55 seconds most of these are non- gold branches. So uh how should we look at the overall branch expansion strategy is the focus 20:02 20 minutes, 2 seconds now shifting back towards MSME and housing verticals. 20:09 20 minutes, 9 seconds So this quarter we added 86 branches. 20:13 20 minutes, 13 seconds MSM we added about 13. Micro we added about 43 which is a new newly introduced product one and a half year ago. Gold loan we added 21 branches. 20:23 20 minutes, 23 seconds So focus is back to MSME you can say that but at the same time Gold also we 20:30 20 minutes, 30 seconds are going to add more branches by the end of the March 2026. We should have a golden branches in the range about 995. 20:40 20 minutes, 40 seconds So there'll be more branches we'll be opening in the south and microlab we will be adding some more branches in the 20:47 20 minutes, 47 seconds last quarters. So so expansion will continue to remain last quarter we are expected to add another 50 uh plus 20:57 20 minutes, 57 seconds branches and this expansion will uh remain continue. the more branches will open in the gold and but some uh 21:06 21 minutes, 6 seconds expansion already happened in the microlap and microlap also will keep adding in the branches. 21:13 21 minutes, 13 seconds Okay, got it. Uh second question was about coal lending. So now our coal lending forms about 20 21% of the total 21:22 21 minutes, 22 seconds AUM. So how are the unit economics working out uh in terms of the spread uh and the fee income and uh uh uh do you 21:31 21 minutes, 31 seconds see a a meaningful improvement in roe in this space? 21:38 21 minutes, 38 seconds So co- lending is a spread it remains the same. It is just a tool to use your 21:46 21 minutes, 46 seconds treasury in a manner that you need not to provide any capital and credit line. 21:51 21 minutes, 51 seconds The exposure by the bank sits in the books of the bank on the individual borrower rather than the NPFC nor those 21:59 21 minutes, 59 seconds limits count in our borrowing at the same time we get the entire spread so that there's a there's a lower capital 22:06 22 minutes, 6 seconds requirement so while we get the spread on the entire 100% capital is required only for 20%. 22:13 22 minutes, 13 seconds So it is a very capital efficient model without compromising any any margins or the spread and going forward u I think 22:22 22 minutes, 22 seconds our cool landing fees will remain in the range of about 20%. 22:27 22 minutes, 27 seconds uh last quarter there's a change in the landing guidelines and that will not 22:34 22 minutes, 34 seconds impact it such because all the banks will shift from CLM 1 to 21 common new 22:41 22 minutes, 41 seconds guideline and we expect that u all the banks will align and we'll be able to maintain this in longer term we intend 22:50 22 minutes, 50 seconds to keep this co- lending in the range about 20% plus minus to 50% here and there 22:56 22 minutes, 56 seconds Okay. Uh sir uh one last question. So uh you have uh started uh issuing NCDS and 23:04 23 minutes, 4 seconds the share of uh market uh uh borrowings are going up. So over the next year or couple of years what's your target mix 23:13 23 minutes, 13 seconds between NCDS and bank loans and uh uh uh what will be the uh blended cost of funds? 23:22 23 minutes, 22 seconds So cost of fund currently is about 9.6 Six, we expect that reduction of MCL 23:29 23 minutes, 29 seconds rate plus diversification and and some mix of commercial paper and short-term 23:36 23 minutes, 36 seconds borrowing should bring the cost of fund down by another 30 to 40 basis gradually 23:43 23 minutes, 43 seconds in next uh two to three quarters and uh as regard is concerned now the 23:51 23 minutes, 51 seconds more more happening Uh so that list will go up. It will be 23:58 23 minutes, 58 seconds the public missions of the bond. It could be borrowing from the various u 24:05 24 minutes, 5 seconds other sources ECB foreign currency loans as well as the borrowing from the mutual 24:11 24 minutes, 11 seconds fund. So we believe that uh next year which is uh by end of FY27 24:20 24 minutes, 20 seconds you will see significant jump in getting the finances from non-bank uh sources. 24:29 24 minutes, 29 seconds Okay. Okay sir. Thank you so much for answering. 24:34 24 minutes, 34 seconds Thank you sir. Our next question come from the line of Karan Gandhar from choice institutional equities. Please go 24:42 24 minutes, 42 seconds ahead with a good set of numbers. Uh sir the 24:49 24 minutes, 49 seconds MSN provision has decreased. Uh how do we see the stress in this segment going forward? Uh do we see that the stress 24:57 24 minutes, 57 seconds has been on a declining trend and or do we see something happening here? 25:11 25 minutes, 11 seconds I'm sorry uh but there is no voice from the management. 25:14 25 minutes, 14 seconds I'll ask sure to answer this with the CFO. Yeah. Good afternoon. uh 25:21 25 minutes, 21 seconds so I will do this uh uh so if you look at the quarter on quarter then MSME NP numbers have reduced from 4.3% to 3.1% 25:30 25 minutes, 30 seconds on grass and subsequently the net MP has also gone down however there is no significant change in the external 25:36 25 minutes, 36 seconds environment as far as overall MSN book is concerned this reduction is largely on account of the ERC sale which we have 25:44 25 minutes, 44 seconds done so what we have done as a strategy wherever we have lended where property value is below 20 lakhs where we do not 25:52 25 minutes, 52 seconds get the benefits of surface. We have transferred those to an ARC uh which is with value as far as earlier explained 25:59 25 minutes, 59 seconds that it is 79 cr so that we can invoke at ARC level the uh act is available for 26:06 26 minutes, 6 seconds anything any exposure above one lakh so that we can invoke safety and expedite our correction effort. So if we 26:14 26 minutes, 14 seconds take that out then we are almost flattished quarter on quarter as far as overall uh NPA in MSMA book as as credit cost. 26:25 26 minutes, 25 seconds Got it. Got it sir. And uh sir so consequently anything on the construction side also or is construction finance is stable? Uh any 26:34 26 minutes, 34 seconds moment there do you expect on credit quality? 26:37 26 minutes, 37 seconds So construction finance book if you seen over the period of years it has been remain very stable and uh as you 26:45 26 minutes, 45 seconds understand that our construction finance book is also in a very retail way of doing very smaller ticket size 26:52 26 minutes, 52 seconds outstanding base is 17 cr sanction is 51 cr so that reflect that risk is very granular markets are doing well housing 27:01 27 minutes, 1 second market is very very strong so we don't see any risk emanating from that besides our Underwriting is standard are such 27:08 27 minutes, 8 seconds that we give only we do only destination project money is disb linked to the construction only after approval in 27:16 27 minutes, 16 seconds place. So all the all these parameter we don't expect any slippage or surprises in that segment. 27:25 27 minutes, 25 seconds Thanks. One last question if I can squeeze in uh about gold loans. So now that gold price has rocketed like 27:32 27 minutes, 32 seconds everyone knows uh what kind of topup loans are we seeing? What is the consumer behavior regarding this? 27:40 27 minutes, 40 seconds So top up loan uh or repeat loan they are one and the same thing in the gold loan because same customer keep 27:48 27 minutes, 48 seconds repeating coming again and again be it a top top up loan or be it is even after repayment the 100% again he comes back 27:57 27 minutes, 57 seconds or he comes back for the increased value of the topup loan 55% customers are repeat customer and uh topup loans keep 28:05 28 minutes, 5 seconds happening is a regular feature so I think with the increase in the gold loan that helps uh growing book better 28:14 28 minutes, 14 seconds and even though uh if you look at our loan to value despite top up it still remain very very conservative at the level about less than 65%. 28:25 28 minutes, 25 seconds Okay, got it sir. Thank you. Thank you so much. I'll get back in with you. 28:32 28 minutes, 32 seconds Thank you sir. Our next question comes from the line of Saga from SparkPWM. Please go ahead sir. 28:40 28 minutes, 40 seconds Yeah. Uh thank you for the opportunity and first of all uh congratulations to the entire team of uh Capri for uh 28:48 28 minutes, 48 seconds delivering such numbers. Uh sir uh I had some few questions. So my first question was uh related to the previous 28:55 28 minutes, 55 seconds participants uh question actually what kind of as we are growing very fast actually in gold as well as housing and 29:03 29 minutes, 3 seconds now our focus as you said uh that we'll be shifting towards MSNE. So what kind 29:10 29 minutes, 10 seconds of mix are we targeting for next year between these three segments out of a total loan portfolio sir? 29:18 29 minutes, 18 seconds So I think our gold uh will remain in the range of about uh 40% plus minus 2 29:25 29 minutes, 25 seconds 3% here and there and the rest of the segment of affordable housing MSME and 29:32 29 minutes, 32 seconds construction finance will remain in the range of 20 to 22%. 29:39 29 minutes, 39 seconds Okay. So uh uh are we are we going to see any change in the yield on advances or the names due to this uh change in mix sir by in next year? 29:51 29 minutes, 51 seconds So our current portfolio yield in the range of 16 and a half%. And there could 29:58 29 minutes, 58 seconds be a slightly improvement of 25 basis or so on account of gold and on account of 30:06 30 minutes, 6 seconds uh micro lab. However, we are also improving our yield in affordable housing. So overall, you can expect that 30:14 30 minutes, 14 seconds about 25 basis increment in the yield of the advantage will be there. Besides that, we also expect our cost of fund to 30:22 30 minutes, 22 seconds go lower. So that also bring some benefit which can be in the range of anything between 30 to 40 bases. 30:32 30 minutes, 32 seconds Right. My next question was related to the golden. We saw almost 58% growth actually in that segment. So I wanted 30:40 30 minutes, 40 seconds that I wanted to know how much was the tonnage growth actually that we have as collateral in our uh in our total uh in out of that. 30:57 30 minutes, 57 seconds So so growth in the range is about 16.4 four which is increment about 18 18% Y and 3% quarter on quarter. 31:10 31 minutes, 10 seconds Okay. So 18% our tage is around 16.4 four as of second quarter FY26 which implies an 18% 31:19 31 minutes, 19 seconds growth y right sir my next question was related to MSNE the MSN AM growth was uh is 31:28 31 minutes, 28 seconds around 16% but uh our live uh accounts uh under the MSME actually are up by only 35 so 31:37 31 minutes, 37 seconds basically what I wanted to know that uh are we incrementally on the MSME side are we incrementally are we increasing 31:44 31 minutes, 44 seconds our average ticket size. Are we looking to uh tap actually higher a higher turnover NSM clients? Is the 31:53 31 minutes, 53 seconds change in mix is uh is there is it there in MSN 32:17 32 minutes, 17 seconds management is on mute. Thank you. 32:20 32 minutes, 20 seconds Can can you can you repeat the question please? 32:23 32 minutes, 23 seconds Yeah. So MSME AM growth is around uh 16%. 32:29 32 minutes, 29 seconds But the number of live accounts which we uh uh which we are they are actually 32:36 32 minutes, 36 seconds down by YI. So basically uh and uh but they're growing QQ but there's a very marginal number. So what I wanted to 32:45 32 minutes, 45 seconds know that are we incrementally are we increasing our ticket size are we looking for higher ticket clients in MSN. 32:52 32 minutes, 52 seconds So while you are taking the growth you are taking the growth of MSN including microlab while you are taking the number of customer you are taking only of MSN. 33:02 33 minutes, 2 seconds So that is why this this disconnect is happening. On the contrary, microl ticket size is lower than is ticket size 33:09 33 minutes, 9 seconds about five lakh. So overall and microlab is a sub sub segment of the MSME. So 33:16 33 minutes, 16 seconds total number of customer is 45,000. It is not 31,000. 33:22 33 minutes, 22 seconds Sir, I was referring to the slide number nine of yours which states the live accounts 31,100 form business. 33:32 33 minutes, 32 seconds So I was referring to that slide. 33:43 33 minutes, 43 seconds If you have to see then you have to see MSME AUM and then MSME customer and microlab and microlab customer but one 33:52 33 minutes, 52 seconds hand you are seeing the number of MSME on other hand you are seeing the only customer of MSME without microlab. I think that is causing a disconnect. 34:01 34 minutes, 1 second Total number of MSM customers including Microlab are 45,000 and the growth within that is happening at at about 16%. 34:11 34 minutes, 11 seconds Okay. Not 45,000 customers. 34:15 34 minutes, 15 seconds Okay, got your point sir. So my next question was related to housing yield. 34:20 34 minutes, 20 seconds The housing uh yields actually even though we saw almost 100 of rate cards. 34:26 34 minutes, 26 seconds So uh still our housing yields haven't decreased. So is it safe to assume that you will be passing on some sort of benefits to our housing customers in the 34:35 34 minutes, 35 seconds next two quarters? Sir, I think passing on the benefit is taken care of the open market competition. It 34:44 34 minutes, 44 seconds is the ticket size and a conscious decision. How do you play between 34:51 34 minutes, 51 seconds salaried, non- salaried, sales employee and then you focus on the yield. Our focus is that our yield which is currently 13.3 we are targeting the 35:00 35 minutes yield has to improve to 13.7 and for that we are going a smaller ticket size uh smaller uh locations tier three tier 35:09 35 minutes, 9 seconds four and focusing on improving the yield of the uh overall housing business. 35:16 35 minutes, 16 seconds So the housing yields won't decrease even in uh in H26 that you're saying basically 35:23 35 minutes, 23 seconds incremental yield is have already started coming in the range of 13 and a half. Our target is to take it to about 13.7. 35:34 35 minutes, 34 seconds Okay. My last question sir was related to you uh Mr. Sham you please come back to 35:41 35 minutes, 41 seconds the next question. Thank you ladies and gentlemen. In order to ensure that the management will be able to 35:49 35 minutes, 49 seconds address questions from all the participant in the conference, kindly limit the question to two question per participant. Should you have a follow-up 35:57 35 minutes, 57 seconds question, please rejoin the queue. Our next question comes from the line of Warun Dub from Share India Securities. Please go ahead. 36:06 36 minutes, 6 seconds Uh sir thank you for giving time for asking question and congratulations on your strong set of numbers. I just wanted to understand what's your view on 36:13 36 minutes, 13 seconds uh I mean what's driving the overall net interest margin for the company because the net interest margins have gone up by around 60 bits on a quarter quarter 36:20 36 minutes, 20 seconds basis. Uh your cost of war is down by 10 bits and spread is up by around 20 bits. 36:25 36 minutes, 25 seconds So what's actually driving the netish margin and with the 30 to 40 bids uh you know decline in cost of that we are 36:32 36 minutes, 32 seconds expecting next two to three quarters where will this figure so I think uh because this net interest 36:42 36 minutes, 42 seconds margin also improved the capital in capital that is happening because of that and also little margin have 36:49 36 minutes, 49 seconds expanded on account of the higher risk of the gold and the micro 36:59 36 minutes, 59 seconds Okay sir. So but just 30 to 40 bits that you're expecting cost of funds to go down. So where will your margin 37:05 37 minutes, 5 seconds stabilize going ahead? Uh you know uh uh expecting a 30 to 40 bits decline in cost of fund and also when you say 30 to 37:13 37 minutes, 13 seconds 40 bits decline in cost of funds are you factoring the uh you know uh further rate cut? 37:20 37 minutes, 20 seconds No we don't expect the further rate we are. I think what we are saying is because lot of our interest rates loans 37:28 37 minutes, 28 seconds are now happening at the lower rate plus old loans are getting reset and those dates are happening on an annual basis. 37:36 37 minutes, 36 seconds So whenever the annual reset date comes they get aligned with the MCLR of the latest MCR has already gone down between 37:45 37 minutes, 45 seconds 15 to 30 basis plus new loans are happening at a slightly better pricing uh on account of capital infusion and 37:53 37 minutes, 53 seconds and better risk profile. So because of the two things our cost of fund is will come down. It will happen in a gradual 38:02 38 minutes, 2 seconds manner in next two to three quarter you will see that getting reflected in our cost of fund. 38:11 38 minutes, 11 seconds Okay. So just one clarification I wanted uh you said in the starting that you would be ending with 995 gold loan 38:19 38 minutes, 19 seconds branches by end of FI26. Is it 995 or 8.95? Because currently you have 842 branches 995. 38:29 38 minutes, 29 seconds So it's going to be addition of 150 more branches for next two quarters in gold. 38:35 38 minutes, 35 seconds The south we are entering. There could be some uh some rollover in the April 38:42 38 minutes, 42 seconds but we already have uh planned that and uh I think uh the intention is to close the mark by 995 branches gold alone. 38:55 38 minutes, 55 seconds But then what would be the total branch addition? If 150 branches addition would be in gold loan alone. So what would be the total branch addition for next two quarters? 39:17 39 minutes, 17 seconds So we'll add about mix of uh microl housing and gold loan. It will be in the range about 200 branches in the next two quarters. 39:31 39 minutes, 31 seconds Okay. Thank you sir. Thank you. 39:38 39 minutes, 38 seconds Our next question come from the line of Priyanku Jan from Growth X Infinity. Please go ahead. 39:46 39 minutes, 46 seconds Hello. I hope I am audible. Yes sir, you are. You are audible. 39:52 39 minutes, 52 seconds Thank you for the opportunity. First of all, congratulations on good set of numbers. The whole cap team is like doing a phenomenal job over there. Uh I 40:00 40 minutes have a few questions like my most of the questions has been answered already. So um I just want to know like what will be your credit cost going forward because 40:08 40 minutes, 8 seconds like it's been in a range less than 1% as uh as of today. So like 40:15 40 minutes, 15 seconds so while uh credit costs have been lower than one but on a safer side while we to project we will say it will be in the 40:24 40 minutes, 24 seconds range about 80 bits to 90 bits. Sorry, can you repeat like? 40:33 40 minutes, 33 seconds So we while credit cost have always been lower than 80 to 90 but when we to project we always remain conservative 40:42 40 minutes, 42 seconds and we would like to say credit cost uh we have taken in account about 80 basis to 90 basis. 40:50 40 minutes, 50 seconds Okay. And like your uh like target for the upcoming year for ROA and ROE like can we expect around? 41:00 41 minutes So our our ROA we are targeting to uh next year we are 41:09 41 minutes, 9 seconds targeting anything between 4.25 to 4 and a half and RO in the range about 16%. 41:18 41 minutes, 18 seconds Okay. And so like my last question will be on the gold yield. So like as a customer I just want to know okay like who are those people who are paying like 41:26 41 minutes, 26 seconds this 20% yield on gold loan uh like uh so how the process take place. Can you just throw some light on it? 41:34 41 minutes, 34 seconds Yeah. So it's a very good question. So we have to understand key what amount who is borrowing and what purpose. So 41:42 41 minutes, 42 seconds somebody is borrowing a one lakh rupees let's say for the sake of uh convenience you 41:49 41 minutes, 49 seconds assume 20%. So somebody is borrowing 1 lakh rupees for 20%. For 6 month would 41:56 41 minutes, 56 seconds mean that he has to end up paying 10 10,000 rupees of interest cost. Now he's using that money uh for example 42:04 42 minutes, 4 seconds somebody's buying the giving advance to farmer buying some crop getting a 20 30% 42:12 42 minutes, 12 seconds discount or somebody putting the agriculture product in the cold storage when you know the prices are lower at the time of crop and selling it later 42:20 42 minutes, 20 seconds earning a margin 30 40%. So these are the businesses they look at my cost will be 10,000 rupees for this loan whereas 42:28 42 minutes, 28 seconds in 6 month I will generate 40 50 60,000 of margin for example recently concluded the pali 42:36 42 minutes, 36 seconds there are lot of people on a seasonal business they will buy the fire in bulk set up two three stall in the town and 42:45 42 minutes, 45 seconds on a 1 lak rupee inventory they will make 70 80,000 rupees so by paying just 10,000 rupees interest even for 6 42:53 42 minutes, 53 seconds months. Most of the people borrow for 3 to four months. So they do not calculate the rate of interest. It is the availability of money without going 43:01 43 minutes, 1 second through a complex credit sanction requirement within 30 minutes that makes them availability of money. So their 43:09 43 minutes, 9 seconds business essentially runs on return on efforts rather than return on equity. So it is absolute interest in such a low amount for is very practical for them 43:18 43 minutes, 18 seconds rather than just looking at the rate of interest. Thank you sir. That's all from my side. 43:25 43 minutes, 25 seconds All the best for your future. 43:29 43 minutes, 29 seconds Thank you. Our next question come from the line of Adita Senna from Robo Capital. Please go ahead. 43:38 43 minutes, 38 seconds Uh hi thanks for the opportunity. So my first question is about the spread. uh the spread at uh now the spread is of 43:47 43 minutes, 47 seconds 6.5 and can please let us know how it sh 43:55 43 minutes, 55 seconds loudly we are not able to hear clearly now 44:02 44 minutes, 2 seconds please carry on the spread as of now is 6.9% uh going forward can you please let us know uh how will it shape 44:12 44 minutes, 12 seconds our fraction will become slightly better by reduction in cost of fund and operation efficiency. We expect the 44:19 44 minutes, 19 seconds spread quarter on quarter should improve ultimately we we expect this spread should be in the range about 7.2 or so 44:27 44 minutes, 27 seconds 7.2 too. All right. So that was my question. Question has been answered. Thank you. 44:36 44 minutes, 36 seconds Thank you sir. Our next question come from the line of Vikrant Pankasha from Choice Institutional Equities. Please go ahead. 44:45 44 minutes, 45 seconds Hello firstly cong congratulations on good set of number. So where do you see the AUM number and pack at the end of 44:53 44 minutes, 53 seconds FI26 and FI27 45:08 45 minutes, 8 seconds am I audible sorry yeah so amum at the end of FI26 45:15 45 minutes, 15 seconds should be in the range about 32,000 cr profit should be in the range about 850 45:21 45 minutes, 21 seconds cr rupes. At the end of FY 27, EM should 45:27 45 minutes, 27 seconds be in the range about 42,000 cr and profit should be in the range about 1,200 cr. 45:36 45 minutes, 36 seconds Okay. And my second question is as the company increases its focus on the MSN segment. So do you do you do you have 45:44 45 minutes, 44 seconds any plan to further expand uh AUM mix for the segment in the future 45:52 45 minutes, 52 seconds for next three years plan is frozen. We will continue to remain in the segment we operate in. And uh as I said earlier 45:59 45 minutes, 59 seconds the overall mix will be gold 40% MSME affordable housing and construction 46:07 46 minutes, 7 seconds finance in the range of 2%. There could be variance between 2 to 3% here and there in any of the segments. 46:15 46 minutes, 15 seconds Okay. Thank you so much sir. Thank you. 46:20 46 minutes, 20 seconds Thank you sir. Our next question comes from the line of Akaja from AJ wealth. Please go ahead sir. 46:27 46 minutes, 27 seconds Hi sir. Uh so just one question. I think last quarter you had guided for 70 bits of credit cost and uh now we have 46:35 46 minutes, 35 seconds increased it to 80 90s I think. So is it purely out of conservatism or are we seeing something on the ground that led to uh this revisionism? 46:58 46 minutes, 58 seconds No no I think when we have to give guidance we should be little keeping more conservative. So we project that 47:06 47 minutes, 6 seconds trade cost to be 90 basis while historically it has always been in the range about 70 basis but uh you always 47:15 47 minutes, 15 seconds account for slightly increased trade cost when our microlab portfolio is growing in proportion. So being on the 47:24 47 minutes, 24 seconds conservative side we when we project we have to say about 90 basis. 47:29 47 minutes, 29 seconds for that support. Thank you sir. Thank you. 47:36 47 minutes, 36 seconds Thank you sir. A nice question come from the line of Devanch Chandan from Find. Please go ahead. 47:44 47 minutes, 44 seconds Hi. Uh thanks for the opportunity. Uh my question is regarding the cost to income ratio in this quarter it increased from 47:51 47 minutes, 51 seconds uh 46.9 to 49% QQ and as we know that we are going to add branches going ahead. 47:58 47 minutes, 58 seconds So will there be any sectoral cost of information issue? 48:03 48 minutes, 3 seconds So first of all to that first quarter there is a 15 cr oneup item. Last uh 48:10 48 minutes, 10 seconds investor call also we have disclosed that and because of that the cost income was lower actually if you adjust that it 48:18 48 minutes, 18 seconds that amount of 15 cr it would have in the range of 49%. So cost to income ratio more or less have been behaved in 48:26 48 minutes, 26 seconds the same and as you know that despite in putting up the 86 branches the cost to 48:33 48 minutes, 33 seconds income ratio have been fairly in the same range. 48:39 48 minutes, 39 seconds Looking at the expansion it can behave 1 2% here and there but by and large coming year cost income ratio 48:47 48 minutes, 47 seconds will remain in the same range. We expect it to be maybe in around range of 47 to 50%. 48:54 48 minutes, 54 seconds In a 2 years time we expect it to come down by another 4 to 5%. 49:04 49 minutes, 4 seconds Okay. Thank you sir. 49:10 49 minutes, 10 seconds Thank you so much. Ladies and gentlemen, anyone who wishes to ask a question may press star N1 on their touchstone telephone. Our next question come from the line of W Soleni from RPN venture. 49:22 49 minutes, 22 seconds Please go ahead sir. Uh hello audible sir. Yes sir you are. Please go ahead. 49:30 49 minutes, 30 seconds Uh yeah. So you might in the course only that we are going very 49:41 49 minutes, 41 seconds uh is not coming because we have new but when we see about next two to three years there can be a chance that our 49:50 49 minutes, 50 seconds cost and provisions may rise. So uh still we are uh in the 9 days. So of speed or there will increase also. 50:05 50 minutes, 5 seconds Can you repeat the question? Your voice is echoing so it's not very clear. Can you repeat it please? 50:16 50 minutes, 16 seconds Better now? 50:18 50 minutes, 18 seconds Yeah. Yeah. Also my question is that as we have a very new book of microlab and gold loans so our credit cost is in a 50:27 50 minutes, 27 seconds limit uh in 17 bits you have told if it is very natural but in if I see near 50:36 50 minutes, 36 seconds next 2 to 3 years is there a chance that this will go to 1% or more even when our 50:43 50 minutes, 43 seconds book gets old then microl also will increase so there is a chance that our credit code credit will also is right. 50:54 50 minutes, 54 seconds So I do not think that our credit cost will go up more than 1% ever. And uh if 51:01 51 minutes, 1 second you talk about the gold loan uh there's no higher credit cost. Credit cost is coming only from the mortgage business. 51:10 51 minutes, 10 seconds Microlab uh the the way we are building it uh with the help of data analytics and technology we expect to be do better 51:18 51 minutes, 18 seconds than many other players in the segment and so far uh our all metrics of collection efficiency in others are 51:27 51 minutes, 27 seconds giving that indication to us that microlab will also be uh behave in a very predictable fashion to us. 51:39 51 minutes, 39 seconds Okay. And the second question is that you just guided for a financial 27 exit 51:45 51 minutes, 45 seconds a with 42,000 that's very approx 30% yi growth you have mentioned right so will 51:54 51 minutes, 54 seconds this will be achievable because now that grow uh growth is also slowing down when I see the last year we have a growth in 52:03 52 minutes, 3 seconds March 25 of 46% y as of September 25 we are standing at 40% growth. So the 52:12 52 minutes, 12 seconds granularly the growth percentage is coming down when the books is getting the larger in so will the 30% will be 52:22 52 minutes, 22 seconds achievable for the hour in 27 or 28 or so. 52:26 52 minutes, 26 seconds Yeah, we will be able to do that. We will be able to do that because we are putting uh at branch expansion and uh with that it should be uh achievable. 52:39 52 minutes, 39 seconds Okay. Yeah. And the last question from my side that you have mentioned 55% is a repeat customers in your cycle. So 52:48 52 minutes, 48 seconds just what is the trend in the past like there was 70 80% and that is reduced to 55% or it is increasing in the number of 52:56 52 minutes, 56 seconds repeating customers. Can you just uh give in the past history? 53:00 53 minutes So I was talking about gold loan. Gold loan there was earlier 50% now it has gone to 55%. same customer keep coming 53:09 53 minutes, 9 seconds back. So at least the business 55% customer are repeating and uh that is 53:17 53 minutes, 17 seconds very healthy that is a uh I would say that goldon customers are keep borrowing again repaying this is the way goldon 53:25 53 minutes, 25 seconds operates and this is a good number to have that our customers who come experience us keep coming back to us. 53:36 53 minutes, 36 seconds Okay. Uh thank you that's from my side and all the best. 53:42 53 minutes, 42 seconds Thank you sir. Our next question come from the line of Manish Karandu from Olympic. Please go ahead sir. 53:56 53 minutes, 56 seconds Mr. Mendel you can proceeded with the question. Thank you. 54:01 54 minutes, 1 second Sorry uh most of the uh questions that I had has been already answered. So yeah, you can pass on to the next particle. 54:09 54 minutes, 9 seconds Okay, no problem. Thank you. 54:11 54 minutes, 11 seconds Our next question come from the line of Shashangja, an individual investor. Please go ahead. 54:28 54 minutes, 28 seconds You can proceed with the question please. 54:38 54 minutes, 38 seconds Maja if you can hear us please proceeded with the question since there is no response from Mr. 54:49 54 minutes, 49 seconds We'll move forward to the next participant. 54:53 54 minutes, 53 seconds Our next participant, the call from the line of Dwanch Chanden from Fin. Please go ahead. 55:01 55 minutes, 1 second Hi sir. Uh I have one followup question. 55:03 55 minutes, 3 seconds Uh do you have any aspiration uh regarding the T number of the revenue next three to four years? 55:11 55 minutes, 11 seconds T number. 55:13 55 minutes, 13 seconds Yeah. So we we said no this year 850 next year 1200 and by fi 28 uh what number you expect? 55:25 55 minutes, 25 seconds That number we not projecting yet. Okay. 55:34 55 minutes, 34 seconds Thank you. Next question comes from the line of goroit from systematics group. Please go ahead. 55:41 55 minutes, 41 seconds Hi, thank you for this opportunity and congratulations on a great set of numbers. Uh just one question from our side. Uh you just mentioned that uh you 55:51 55 minutes, 51 seconds are planning to grow the AM to 32,000 cr uh this year and 42,000 cr next year. So are you essentially upping the group 55:59 55 minutes, 59 seconds guidance from a 30% figure to a 35% figure? 56:06 56 minutes, 6 seconds Yes, because the first half has gone very well. we already up 40%. So basically these number we have u revised 56:16 56 minutes, 16 seconds our guidance from earlier 1 to 3,000. 56:22 56 minutes, 22 seconds Okay. Okay. Thank you sir. That was my only question. Rest of the sessions. 56:30 56 minutes, 30 seconds Thank you. 56:33 56 minutes, 33 seconds Our next question come from the line of W Soleni from RSP venture. Please go ahead. 56:40 56 minutes, 40 seconds Okay, thank you for uh for uh taking me the question. Uh you just mentioning 27 56:46 56 minutes, 46 seconds 1200 K of P on a 42,000 K it's giving me appro 2.8% ROI so like we have just 56:55 56 minutes, 55 seconds guided that it will be a 4.25% or 4.5% finance 26 and we are guiding 57:02 57 minutes, 2 seconds indirectly in 27 of 2.8% 8% like very a big mismatch as I see 57:10 57 minutes, 10 seconds so I think you have to look at the number of return on uh average asset rather than return on average because uh 57:20 57 minutes, 20 seconds you included the co-ending data also in that so if you look at the ROA then 57:29 57 minutes, 29 seconds you have to there's a 20% co-ending is also there so if you adjust those data 57:36 57 minutes, 36 seconds the RO will be in the range of 4% plus so uh even I if I just and assume that 57:43 57 minutes, 43 seconds the 20% uh book will be the call ending in 80 80% of the AUM will be on book aum 57:50 57 minutes, 50 seconds then also it is coming around 3.5% only like very far from 4.5% what we have guided for 26 57:58 57 minutes, 58 seconds can you can you just for sake of can you explain what how you're calculating 58:03 58 minutes, 3 seconds so like uses uh towards 42,000 uh for uh AUM 58:10 58 minutes, 10 seconds uh then the 80% of total is uh 33,000 appro will be the my on book A1 and 1200 K from 32,000 K will be only 3%. 58:22 58 minutes, 22 seconds That's why uh is any mismatch what I am calculating or what but you have to do 58:30 58 minutes, 30 seconds opening and closing balance is average also no you cannot take only closing see I think the guidance which we just 58:38 58 minutes, 38 seconds gave 4% that is a return on average assets so when you calculate given the numerator is a P&L number uh the 58:45 58 minutes, 45 seconds beginning assets is uh you know somewhere in the range of around uh uh 24 25,000 so And if you do an average you will get to a number of around 4%. 58:56 58 minutes, 56 seconds Okay. So I want to explain if you like this the closing of opening of 27 year will be 32,000 59:04 59 minutes, 4 seconds assume 20% co- lending. So it will you have to reduce 6,400 from that. So it will become about 25,600. 59:14 59 minutes, 14 seconds Then you have to take closing. Closing will be about 40 to 40% coending. add both of them and then if you calculate 59:22 59 minutes, 22 seconds RO 4% it's about 124 rupees the same we can uh we will be able to for maintain for 27 28 also like just I 59:32 59 minutes, 32 seconds want to for a bigger picture in 28 will this be possible for 4% in long-term also 59:38 59 minutes, 38 seconds yeah we we are going to do business in a manner that we are able to deliver 4% RO minimum okay yeah um thank you thank you for my 59:48 59 minutes, 48 seconds all the question answering all the questions. Thank you. 59:54 59 minutes, 54 seconds Thank you sir. Ladies and gentlemen, due to time constraint that was the last question for today. I now hand the conference over to the management for 1:00:01 1 hour, 1 second the closing comments. Thank you and over to you sir. 1:00:07 1 hour, 7 seconds So to conclude, Q2 marked another quarter of a strong broadbased performance driven by geographical expansion, improving margins, enhanced 1:00:15 1 hour, 15 seconds cost efficiencies and ongoing technology transformation. We remain well positioned to achieve 30% plus annual 1:00:22 1 hour, 22 seconds growth while delivering sustainable ROE of 16 to 18% RO of 4 to 4 and a half% over a period of time. Thank you for 1:00:30 1 hour, 30 seconds your continued trust and we look forward to building on this momentum in the quarters ahead. Thank you. 1:00:39 1 hour, 39 seconds Thank you sir. On behalf of K3 Global Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.