Capri Global Capital Limited — Q3 FY26

Capri Global Capital Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=u4-G3yLCT7A Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Capri Global Capital Limited Q3 FI26 earnings conference call hosted 0:08 8 seconds by Go India Advisor. As a reminder, all participants line will be in listenon mode and there will be an opportunity 0:15 15 seconds for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. 0:27 27 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Hardik Dshi from 0:34 34 seconds Capri Global Capital Limited. Thank you and over to you sir. 0:40 40 seconds Thank you. Good afternoon everyone and warm welcome to Q3 FI26 earnings call for Kri Global Capital Limited. This is 0:48 48 seconds Hadid Doshi head corporate finance and investor relation. Before we begin, as a brief disclaimer, the discussion on today's call regarding Capri Global 0:57 57 seconds Capital Limited's earnings performance is based on judgments derived from the declared results and information on business opportunities available to the 1:05 1 minute, 5 seconds company at this time. The company's performance is subject to risk, uncertainties, and assumptions that could cause results to differ materially 1:12 1 minute, 12 seconds in future. In that context, participants on today's call are advised to consider the same while interpreting the results. 1:18 1 minute, 18 seconds The full disclaimer is available on slide 63 of the earnings presentation. 1:23 1 minute, 23 seconds Participants are requested to kindly take note of the same. Format of the today's call would be opening remarks by the management team followed by Q&A. 1:32 1 minute, 32 seconds Let me now introduce the management team for the Capri Global Capital present on the call today. With us today we have 1:40 1 minute, 40 seconds Mr. Rajes Sharma, managing director and promoter. Miss Divy Sutur, executive director strategy. Mr. Kishor Loda, 1:49 1 minute, 49 seconds Chief Financial Officer and Mr. Sanjiv Shivasa, Chief Risk Officer. I would now request our managing director, Mr. Rajes 1:56 1 minute, 56 seconds Sharma to present his opening remarks on the results. Over to you, sir. 2:04 2 minutes, 4 seconds Yeah, thank you. Good afternoon everyone. I hope you all are doing well and had a good new year. We announce our 2:11 2 minutes, 11 seconds amited financial results for the third quarter of FY 2026 on 29th January. I trust you have had the opportunity to go 2:20 2 minutes, 20 seconds through our earnings presentation which is also available on our website. 2:25 2 minutes, 25 seconds Before I move on to the financial and operation highlights, I would like to touch upon the broader operating environment during the quarter. India's 2:34 2 minutes, 34 seconds economy continues to demonstrate resilience amid a mixed and unsettable backdrop. Domestic demand remains 2:41 2 minutes, 41 seconds steady. Financial conditions and government schemes are supportive and budgetly push for infrastructure spending. Indigenous manufacturing and 2:49 2 minutes, 49 seconds service sector will drive the consumption and credit growth. India is expected to be among the fastest growing 2:56 2 minutes, 56 seconds major economies in FI26 underpinned by a stable inflammation trajectory and a strong structural fundamentals. At the 3:04 3 minutes, 4 seconds same time, the macro environment continues to be affected by external headwinds, including geopolitical issues, global market volatility, and 3:13 3 minutes, 13 seconds currency movements. Underscoring the need for disciplined execution and prudent risk management for financial 3:21 3 minutes, 21 seconds institutions. Against this backdrop, I'm pleased to say that Capri Global delivered a strong quarterly performance 3:28 3 minutes, 28 seconds in Q3 FI26, continuing its growth momentum and maintaining asset quality while delivering highest ever quarterly 3:36 3 minutes, 36 seconds profit of rupees 255 crores, a 99% increase year on year. This performance reflects our strong execution capability 3:45 3 minutes, 45 seconds and resilient business model even during the uncertain macro conditions. Now coming to our detailed business and earning performance during the quarter. 3:55 3 minutes, 55 seconds The strong momentum we saw in the first half of FI26 continued through the third quarter across all our lending 4:02 4 minutes, 2 seconds businesses. Age of December 31st 2025 or consolidated AUM stood at rupees 30,46 4:12 4 minutes, 12 seconds crores reflecting a robust 47% year-on-year growth and 12% quarteronquarter growth. This 4:20 4 minutes, 20 seconds performance was underpinned by broad-based expansion across segments. 4:25 4 minutes, 25 seconds Gold loan grew an impressing 80% yearon year while housing loan rose 40% yearonear. Our co- lending AUM surged 4:34 4 minutes, 34 seconds 93% yearonear to rupees 7,138 crores now accounting for almost 23 and a half% of 4:41 4 minutes, 41 seconds total AUM up from 21% in Q2 FI26 highlighting our strategic focus on 4:48 4 minutes, 48 seconds capital efficient growth investments for the quarter rose 87% yearonear to rupees 10,87 4:57 4 minutes, 57 seconds 10,879 cr supported by a wide ing distribution network and growing customer base. Our 5:05 5 minutes, 5 seconds growth remains granular, diversified and retailled with our customer base now exceeding 6.3 lakhs, reaffirming the 5:12 5 minutes, 12 seconds scalability and resilience of our business model. 5:18 5 minutes, 18 seconds For our gold business, we delivered a strong and well balanced performance in line with our strategic objective of growth driven by branch expansion while 5:27 5 minutes, 27 seconds maintaining focus on effective risk management. We successfully met our branch expansion target with the net 5:34 5 minutes, 34 seconds addition of 68 new branches across South India. While last quarter we focused on deepening our presence in existing 5:42 5 minutes, 42 seconds geographies. This quarter we marked our entry in high potential new geographies of Urisa, Andhra Pradesh, Telangana and 5:50 5 minutes, 50 seconds Karnataka to support the next phase of growth. Gold loan assumes s of robust growth increasing from rups 10,170 6:00 6 minutes cr in the end of September to rupes 12,555 cr by December a sequential increase of 6:06 6 minutes, 6 seconds 23% led by healthy customer demand and improving branch productivity in the context of rising gold prices we 6:14 6 minutes, 14 seconds maintain conservity loan to value ratios while ensuring a strong collection practices across the portfolio asset quality remained a key focus our Hold on 6:23 6 minutes, 23 seconds loan growth NPS2 did 39% as of December underscoring our focus on risk 6:30 6 minutes, 30 seconds management and portfolio quality even amid rapid growth overall Q3 mark and all round 6:38 6 minutes, 38 seconds performance for the gold low business combining scale alongside strong credit discipline 6:45 6 minutes, 45 seconds and operational execution with branch productivity increasing to rupees 14.1 cr amum per branch Our 6:55 6 minutes, 55 seconds MSN Asian grew rupes 5,886 cr up by 19% yearonear supported by 7:02 7 minutes, 2 seconds steady execution and network expansion in the MSN business all 15 branches in Uttar Pradesh be opened in 7:11 7 minutes, 11 seconds Q2 FY26 are now fully operational and dece by December end these branches have achieved monthly disjustment under 7:19 7 minutes, 19 seconds rupees 9 and a half cr and we expect this to cost rupees 20 cr per month by March. During the quarter, we also 7:26 7 minutes, 26 seconds commence NSM operation in prime urban markets such as Mumbai, Pune and Delhi, which will help [clears throat] diversify and strengthen our overall customer risk profile. 7:38 7 minutes, 38 seconds Within MSME, our microlab business continues to gain strong traction with AUM rising to 650 cr. This vertical 7:45 7 minutes, 45 seconds enabled us to serve emerging self-employed borrowers with a smaller ticket size requirement. 7:52 7 minutes, 52 seconds In microlab we added 14 branches during Q3 taking the total branch network to 151 branches as of December end. Our 8:00 8 minutes immediate focus now in this segment will be on improving sales productivity and operating efficiency across the expanded 8:09 8 minutes, 9 seconds network before undertaking the next race of branch expansion. 8:14 8 minutes, 14 seconds Housing AU stood at rupes 6,490 cr delivering a yearon-year growth of 40%. 8:21 8 minutes, 21 seconds We continue to see resident demand across the affordable housing segment where rising income level and lower interest rate regime are driving demand 8:30 8 minutes, 30 seconds for housing loans. With net addition of 18 branches, we further expanded our presence in high potential south India 8:37 8 minutes, 37 seconds market by entering state of Andhra Pradesh and Karnataka. This strategic expansion is step towards becoming a 8:44 8 minutes, 44 seconds national player in housing finance increasing portfolio gridity and support yield expansion over time. 8:52 8 minutes, 52 seconds Our construction finance saw steady growth of 37% yearonear to rupees 5,19 8:59 8 minutes, 59 seconds cr now funding over 279 active residential projects with an average ticket size of rups 37 cr sanction wise 9:08 9 minutes, 8 seconds and outstanding portfolio ticket size of rupees 18 cr. The book remains granular and well diversified by geography reflecting our focus on working with 9:17 9 minutes, 17 seconds midsize and small developer in metro and tier one cities. We continue to emphasize discipline underwriting 9:24 9 minutes, 24 seconds through vigorous due diligence and escrobased cash flow management ensuring a risk first approach. 9:32 9 minutes, 32 seconds Our total branch network expanded to 1,331 locations in Q3 FI26 with a new addition 9:40 9 minutes, 40 seconds of 107 branches during the quarter while our employee base increased to rupee increased to 13,66 9:49 9 minutes, 49 seconds up by 7% quarter on quarter. Our entry in new geographies is a step towards our ambition of building a pan India 9:57 9 minutes, 57 seconds footprint, enhance customer reach and increase brand visibility laying the foundation for the next phase of growth. 10:06 10 minutes, 6 seconds Let me now provide an update on our core earnings. Our yields and spread on net advances remain healthy in the quarter 10:13 10 minutes, 13 seconds at the 16.4% 4% and 7% respectively driven by continued loan book expansion decline in cost of fund and enhanced 10:22 10 minutes, 22 seconds margin. Our net interest income for QFI 26 student at rupees 510 cr representing 10:28 10 minutes, 28 seconds a strong 48% increase on year we continue to strengthen our non-interest income stream in Q3 FI26 reinforcing our 10:37 10 minutes, 37 seconds strategy of building a diversified and resilient earning profile. Non-interest income grew 124% year on year and 18% 10:47 10 minutes, 47 seconds quarter on quarter to rupes 240 crores contributing 32% of net total income for the quarter. This strong increase was 10:56 10 minutes, 56 seconds largely driven by growth in commission of insurance distribution and coalending fee income. In our insurance 11:03 11 minutes, 3 seconds distribution business we generated fee income of rupes 34 cr during the quarter. Q3 marked an important strategic milestone with the deployment 11:12 11 minutes, 12 seconds of the upgraded Capri care insurance ecosystem. During the partner, we unveiled a refreshed brand identity and 11:20 11 minutes, 20 seconds fully digital end to end platform that enables instant realtime policy issuance significantly easing insurance adoption across our retail customer base. 11:31 11 minutes, 31 seconds More importantly, we have expanded our product portfolio beyond traditional financial intimidity product to a 11:37 11 minutes, 37 seconds holistic wellness offering by embedding preventive health care solutions such as annual health screening and cashless consultation into the ecosystem. 11:47 11 minutes, 47 seconds Capricare is evolving from a clansdriven product offering into a proactive health and protection partner for our customers. This digital first and 11:56 11 minutes, 56 seconds integrated approach is expected to drive higher insurance penetration, improve customer engagement and meaningfully 12:04 12 minutes, 4 seconds enhance fee income contribution over time. Our coal ending income is 28 rupees 116 cr driven by higher dispersal 12:13 12 minutes, 13 seconds volumes and deeper engagement with partner banks. This capital efficient model continues to enhance RO diversify 12:21 12 minutes, 21 seconds funding sources and scale feedled income without incremental balance sheet strength. Our car loan distribution 12:30 12 minutes, 30 seconds business maintained its steady momentum with origination of rups 3,390 cr in Q3 12:36 12 minutes, 36 seconds FI26 up 15% yearon year with a growing footprint and deep relationship across 14 partner banks and institution they 12:44 12 minutes, 44 seconds built a scalable platform with 10 India network in this segment with potential to monetize further for distribution of other products 12:54 12 minutes, 54 seconds on the expenses front. Operating expenses increased 15% quarter on quarter. This was mainly driven by 13:02 13 minutes, 2 seconds increasing the employee cost on the count of lack addition of 869 employees quarteron quarter and increase employee incentive length with higher 13:09 13 minutes, 9 seconds reservement. Our continued focus on operating efficiency is visible with the cost to income ratio improving 51.6% in 13:18 13 minutes, 18 seconds Q3 FI26 compared with 58.2% in Q3 FI25. This sharp improvement underscored the 13:25 13 minutes, 25 seconds benefit of a maturing branch network, rising productivity and a strong operating leverage across our business 13:34 13 minutes, 34 seconds as a result of margin expansion, improvement in operating efficiency and a strong traction in fe income. Our 13:41 13 minutes, 41 seconds pre-provision operating profit s 92% yearonear to 363 cr for the quarter. 13:48 13 minutes, 48 seconds Further we continued our strong profitability momentum in Q3 FI26 delivering a robust pack rupees 225 255 13:56 13 minutes, 56 seconds crores up 99% year on year our return ratio considerably improved during the 14:03 14 minutes, 3 seconds quarter with ROE of 15 ROE of 15% and ROA of 4% for the quarter 14:14 14 minutes, 14 seconds coming to our asset quality our impairment cost for the quarter is sued at rupees 23 cr in Q3 FI26 down from 31 14:22 14 minutes, 22 seconds cr in Q2 FI26 or 4% of the gross loan book and our provision coverage ratio on stage three loans improved to 43 by6% 14:32 14 minutes, 32 seconds demonstrating our to provisioning and conservative approach to risk management. Our stage 2 asset increase 14:39 14 minutes, 39 seconds by 95 cr quart quarter on quarter and were 4% of gross loans. However, our stage three ratio improved quarter on 14:48 14 minutes, 48 seconds quarter for gold loan, housing loan and construction finance and remain flat for MSM loan. At consolidated level, our 14:56 14 minutes, 56 seconds stage three asset remain flat at rupees 275 cr quarter on quarter resulting in our gross stage three ratio at 1.2% down 15:04 15 minutes, 4 seconds sequentially by 10 basis while net stage three ratio at 7% down 7 days sequentially. 15:14 15 minutes, 14 seconds Let me talk about liability side. Our borrowing increased by 38% year on year and incremental borrowing sanction limit 15:22 15 minutes, 22 seconds year to date this fiscal was around 6,860 crores. We added 11 new lender relationship year to date taking the 15:29 15 minutes, 29 seconds active relationship now to 30 plus. We also continue to diversify our borrowing mix by raising funds through other instruments such as NCDS and commercial 15:38 15 minutes, 38 seconds paper. During the quarter we raised rupes 635 cr from NCDS and commercial paper as a result of MCL reduction in 15:46 15 minutes, 46 seconds our respective effort on repricing existing liabilities. We are happy to share that we saw quarteronquarter reduction of 24 basis in our cost of 15:55 15 minutes, 55 seconds fund following equity capital infusion of rups 2,000 cr in Q1 FI26. Our balance sheet is now significantly stronger with 16:04 16 minutes, 4 seconds the low leverage ratio of 2.8x A tax providing ample headroom to support accelerated growth across business 16:11 16 minutes, 11 seconds segments. Our standalone capital adequacy ratio of CGCL is at 30.3% and 16:18 16 minutes, 18 seconds 24.8% for Capital Housing Finance Limited. Our liquidity remains comfortable with our rupees 4,274 16:26 16 minutes, 26 seconds cr rupees in cash and bank balances investments and undrawn credit lines across CGCL and CGF. 16:34 16 minutes, 34 seconds Our technology investment continue to deliver tangible outcomes and to 16:41 16 minutes, 41 seconds understand the sustainability of these numbers we need to look at the engine powering them. Four years ago we began 16:49 16 minutes, 49 seconds rebuilding Capri agent NDFC and that decision is now generating exponential operating leverage. Our performance is 16:57 16 minutes, 57 seconds not just the outcome of incremental manpower. It is also the product of scaling our systems. Our in-house technology stack deliver higher 17:06 17 minutes, 6 seconds displacement, sharper credit selection and shorter cycle times all without a proportional rise in 17:13 17 minutes, 13 seconds cost. Our disruptments are up 87% year on year. However, manpower has increased by just 19% year on year driven largely 17:23 17 minutes, 23 seconds by the addition of 1 to 65 new branches year on year rather than rise in core operating root. This is the compounding 17:30 17 minutes, 30 seconds effect of AI native operating model. One where productivity, speed and the risk discipline accelerate together and where 17:39 17 minutes, 39 seconds growth is driven by architecture not headcount. We have built an AI first landing platform from the ground up and 17:47 17 minutes, 47 seconds embedded at the core of our credit architecture made around the critical element of clean governed continuously in this data. 17:56 17 minutes, 56 seconds The customer journey runs on a fully native seamless flow from digital onboarding through our mobility app 18:04 18 minutes, 4 seconds called Spark into a centralized loan origin system called Orian that orchet complex workflows end to end. This 18:12 18 minutes, 12 seconds foundation delivers insight, speed and risk precision that legacy renderland ecosystem cannot match. This distinction 18:21 18 minutes, 21 seconds is most visible in our proprietary intelligence model Sentinel for credit and Kronos for collections. 18:30 18 minutes, 30 seconds Credit model acts as a vigilant guard moving from static scoreboard to dynamic with compliance while collections model 18:39 18 minutes, 39 seconds drive timedriven escalation align to delinquency aging. Our agentic communication stack across voice, 18:46 18 minutes, 46 seconds WhatsApp, SMS and Jai boards now manages customer engagement and to end. It sends nudges automatically analyze call 18:55 18 minutes, 55 seconds transcripts, detects earlier signals and triggers the right action instantly creating a realtime high accuracy feedback loop across the collection 19:04 19 minutes, 4 seconds funnel on on ground. Our field collection executive operates on a specialized geotech mobility app called Pegasus ensuring 19:13 19 minutes, 13 seconds fast moving wide coverage execution by optimizing roots and tracking visits in real time. This structurally lowers the 19:20 19 minutes, 20 seconds cost of collections and improve cure rate without expanding our feet on the street workforce. Underpinning this 19:27 19 minutes, 27 seconds capability is a robust hybrid multicloud strategy and unified data foundations that feeds our realtime executive 19:34 19 minutes, 34 seconds dashboards called juice. Ensuring that decisions regarding funnel visibility and asset quality are backed by live 19:42 19 minutes, 42 seconds data. We have modernized the entire application development life cycle by embedding artificial intelligence in 19:49 19 minutes, 49 seconds every stage driving an 83% year-on-year improvement in employee to PR code productivity with AIdriven automated reviews and agentic testing framework. 20:00 20 minutes We have brought our error rate down to below 5% supported by four time increase in code coverage year on year. As a 20:07 20 minutes, 7 seconds result, we are delivering new features faster with higher reliability and with leaner teams, giving us a sustained execution advantage. This velocity 20:16 20 minutes, 16 seconds translates directly into business outcomes and customer experience. 20:21 20 minutes, 21 seconds Consequently, products like gold loan have turnaround time of less than 30 minutes and our pre-approved topup loans are dispersed in 60 seconds. We are 20:30 20 minutes, 30 seconds monetizing trust and leveraging the India stack to acquire and verify customers at a very low cost. Importantly, we have ensured 20:38 20 minutes, 38 seconds that speed does not come at the expense of governance and is aligned with regulatory guidelines. The technology foundation is in place. The systems are 20:46 20 minutes, 46 seconds measure and are built to compound earnings at scale. 20:51 20 minutes, 51 seconds On the ESG front, I am pleased to share that our ESG practices have been recognized by leading global independent 20:58 20 minutes, 58 seconds rating agency including S&P Global and Morning Stan analytics. Capri Global has 21:05 21 minutes, 5 seconds issued an SNP ESG score of 71, the highest among all NBSCPS and has been 21:12 21 minutes, 12 seconds assessed as low ESG risk by morning star analytics. These ratings place firmly among the leaders in ESG practices 21:21 21 minutes, 21 seconds within the NFC sector and reflect our adherence to globally benchmark standards. Importantly, 21:28 21 minutes, 28 seconds these assessments are based entirely on publicly available independently verified data underscoring the strength, 21:36 21 minutes, 36 seconds transparency and resilience of our governance and operating model. We shall now be happy to take your question. 21:45 21 minutes, 45 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 21:54 21 minutes, 54 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 22:03 22 minutes, 3 seconds question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 22:15 22 minutes, 15 seconds The first question is from the line of Amani from Init. Please go ahead. 22:23 22 minutes, 23 seconds Hi uh thank you for the opportunity. Am I audible? Yes, please. Hello. Yeah. Hi. 22:31 22 minutes, 31 seconds Hi sir. So my first uh uh question is uh with our ongoing investments in uh 22:38 22 minutes, 38 seconds distribution, how should we think of uh our benchmarks like AUM per branch per 22:45 22 minutes, 45 seconds employee that signal the uh our transition from buildout to operating leverage in gold and microlab businesses? 23:08 23 minutes, 8 seconds Yeah, thank you. So as far as the AUM per branch is concerned, gold loan is we have narrated in our call also that it 23:17 23 minutes, 17 seconds has already crossed 14.1 cr per branch AUM and uh we expect this golden AUM 23:25 23 minutes, 25 seconds continue to grow in line with our uh there are many branches which are still less than 10 cr while the age is 14 23:33 23 minutes, 33 seconds where some of the branches are about 25 some of the branches are below 10. So there exists a good scope that these 23:40 23 minutes, 40 seconds branches will continue to deliver a 30% plus growth plus we intend to add more branches. So currently if you talk about 23:48 23 minutes, 48 seconds 910 branches there are about 20% branches are more than 20 cr per branch 23:56 23 minutes, 56 seconds between 5 cr to 20% branches almost there are about 67% branches and there 24:03 24 minutes, 3 seconds are some newly opened branches we opened the last two quarter less than 5 cr rupes. So those branches will continue to grow plus we also intend to add the 24:12 24 minutes, 12 seconds new branches. So uh the existing branches will also continue to grow with the addition of the opening of the new branches. So per branch even we can 24:21 24 minutes, 21 seconds expect we are at 14.1 and these existing branches will continue to grow for 30% and then there will be addition of the 24:28 24 minutes, 28 seconds new branches. If we talk about microlab which we are operating about 151 branches currently the EU is about 650 24:36 24 minutes, 36 seconds cr which is about roughly uh about close to 5 cr plus these branches will deliver 24:45 24 minutes, 45 seconds about about say 10 cr rupes by the next year and we intend to achieve 3,000 cr 24:52 24 minutes, 52 seconds rupes of in about another 2 and a half year from now. So that is the trajectory they are following. 25:01 25 minutes, 1 second Okay sir. Okay sir. Thanks for that. Uh it was very helpful. So uh second question is in line with our uh 25:08 25 minutes, 8 seconds portfolio mix. So as as we are seeing a shift from you know uh uh uh traditional 25:16 25 minutes, 16 seconds uh uh lending uh towards gold loans and uh co lending. So uh but 25:26 25 minutes, 26 seconds but our names have remained largely unchanged. I mean so so what's our uh 25:33 25 minutes, 33 seconds outlook there on gold uh yields gold yields are currently in the range of about 17.8%. 25:45 25 minutes, 45 seconds And overall if you talk about the overall yield of the company it is about 16.4% 4% at the portfolio level with the 25:53 25 minutes, 53 seconds increase slightly in the golden portfolio the overall yield and the spread will improve plus microlap segment is also increasing where the 26:02 26 minutes, 2 seconds yield is also is going to be supportive uh we expect the gold loan to remain in the range about 18% likely there will be 26:11 26 minutes, 11 seconds improvement about 20 25 bases going forward by various uh retail loan gold loan focus we are bringing now 26:20 26 minutes, 20 seconds increasing the smaller branches. So there we should see some improvement in our yield plus certain other measures we are taking. So overall gold yield is 26:29 26 minutes, 29 seconds likely to be 18% and our overall yield of the company which is 16.4%. 26:34 26 minutes, 34 seconds Should improve slightly it should improve by uh 10 to 20 basis in next year. 26:43 26 minutes, 43 seconds Okay sir. Thank you. Thank you so much. 26:48 26 minutes, 48 seconds Thank you. The next question is from the line of Sil Canal from ULK Financial Services. Please go ahead. 26:59 26 minutes, 59 seconds U good afternoon everyone. Um and very good congratulations for the good performance in this quarter. I had a 27:07 27 minutes, 7 seconds couple of questions to ask. So um uh basically we have seen NA has been scaling faster from 20% to 23.5% in Q3 27:16 27 minutes, 16 seconds and uh how do we how do we see the shape up going ahead do we is this going to keep increasing further on 27:26 27 minutes, 26 seconds I think gold coing will remain largely in the in the current range of between 20 to 23% it we don't do not intend to 27:35 27 minutes, 35 seconds grow it further from this level and we able to maintain this is very good level to have it is very very highly ROE 27:43 27 minutes, 43 seconds aggressive and there's a focus of regulator as well as the banks to partner in the co landing so that it is 27:51 27 minutes, 51 seconds a collaboration between the low cost fund and the low cost collection efficiency of NDFC low cost fund of the bank 28:00 28 minutes but we intend to maintain this label got it s and uh one more question I had uh regarding 28:07 28 minutes, 7 seconds So how the gold loan prices have I mean the gold prices itself has gone up significantly in the last few quarters 28:14 28 minutes, 14 seconds and right now it's at peak. So uh if we see further downside in gold prices uh 28:23 28 minutes, 23 seconds what kind of um you know scenarios have you embedded for your loss and provisioning have you done for that? 28:32 28 minutes, 32 seconds Yeah. So I think it's a very good question in the recent times of the recent volatility of the gold but u as a 28:39 28 minutes, 39 seconds company uh we follow the very conservative practice in terms of the way we decide the LTD in the rising 28:47 28 minutes, 47 seconds trend of the gold we reduce our LTE during the January whatever we disbbur our loan disput were 28:55 28 minutes, 55 seconds happening in the LP about 64% against the 75% perittance and the portfolio level our entry is 60% 29:04 29 minutes, 4 seconds overall. So it means we have a portfolio level 40% margin in the current uh trend. So second thing is that the 29:14 29 minutes, 14 seconds moment we also have a system that early warning triggers we are able to send to the customers through SMS and WhatsApp 29:22 29 minutes, 22 seconds messages in case anybody's LD breaches and at individual level where the loan amount is anything between 50,000 rupees 29:31 29 minutes, 31 seconds to 2 lakh rupees if the gold prices have fallen and the margin call trigger we send the message and we manage the 29:39 29 minutes, 39 seconds dynamic collateral monitoring we where monitor the portfolio and individual loan account systematic by systemwide and take the prompt corrective action. 29:49 29 minutes, 49 seconds Borrowers are required to restore the margin within 14 days of intimation limiting prolong exposure during period of price correction and then we retain 29:58 29 minutes, 58 seconds the right to our agreement to initiate action of placed gold including prior loan maturity if collateral coverage becomes inadequate or borrow risk 30:06 30 minutes, 6 seconds increases materially. So there are various safeguards in Ma. If you talk about currently as I said in the 30:16 30 minutes, 16 seconds January month our all disment where we are taking the we have dispersed the loan 30:24 30 minutes, 24 seconds where the EM was only 60 64%. So 36% the margin we were we were maintain during 30:32 30 minutes, 32 seconds the time when the gold was going up one way between December and January we were 30:38 30 minutes, 38 seconds maintaining our is not 75 but between 70% to 72%. So there also we have taken 30:46 30 minutes, 46 seconds a conservative approach also the golden ring happening on the 30day last 30 days 30:53 30 minutes, 53 seconds average price accordingly rain is decided. So bases all these frameworks we are at quite comfortable position 31:00 31 minutes where the LTV is just 60% at a portfolio level. 31:06 31 minutes, 6 seconds Got it. So I think the book has been very well managed. Thank you. Thank you sir. This has been very helpful. 31:14 31 minutes, 14 seconds Thank you. The next question is from the line of Vun Ruv from Share India Securities. Please go ahead. 31:23 31 minutes, 23 seconds First of all sir congratulations on your both those set of numbers. I mean the company has shown really good growth. Uh 31:29 31 minutes, 29 seconds if you can just sum on what was the reason for decline in the overall interest margin to 9.1%. 31:38 31 minutes, 38 seconds And also the company has said that the overall spread would increase to 7.2% uh you know going forward. So I mean 31:46 31 minutes, 46 seconds does the company stay with the same guidance for spread as 31:53 31 minutes, 53 seconds I think what is the relevant uh indicator to track is a spread and a 32:00 32 minutes spread have not come down the spread has improved from 6.9 to 7%. So there's improvement in the spread and our margin 32:09 32 minutes, 9 seconds uh because net interest margin concerned the more you leverage net interest will fall. So I think right indicated spread where we are showing improvement of 10 bases from 6.9 to 7%. 32:22 32 minutes, 22 seconds You have guidance of 7.2% I remember in the second quarter. So do you stay with the guidance of 7.2% I and do we see more 20 basis point 32:31 32 minutes, 31 seconds improvement is spent in the fourth quarter? 32:36 32 minutes, 36 seconds Yes, there will be improvement in the fourth quarter in the spread further on the back of our EU of the golden 32:44 32 minutes, 44 seconds rising some support will come from the scale benefit and also from the cost of 32:52 32 minutes, 52 seconds fund is going down. So already we reduced about 24 days in cost of fun and 32:56 32 minutes, 56 seconds fun and fun and fun and fun and fun and fun and fun and fun and fun and fun down in the last quarter. Some of the loan will get further reset and the mix of borrowing of the short-term commercial 33:03 33 minutes, 3 seconds paper and other measures. Uh our overall spread will continue to improve and I think we given a guidance of 7.2 which we we hope to deliver that. 33:13 33 minutes, 13 seconds Okay. So one last question I just wanted to understand on your goal branches because I remember you saying 995 branches was a target for FI26. 33:22 33 minutes, 22 seconds I mean what would be the uh you know addition for bold branches in FI27 I think so they will separate are they 33:30 33 minutes, 30 seconds approval that the company needed for additional branches so what's the update on that sir so I think the branches which will add 33:38 33 minutes, 38 seconds in the last quarter of the gold loan we'll let them stabilize and and achieve 33:45 33 minutes, 45 seconds at least 6 months time we'll approach the RBI at appropriate time and RGB give their approval and decision within 45 33:54 33 minutes, 54 seconds days. So in the second half of FY 27, we'll announce the expansion of our golden branches based on what time we 34:03 34 minutes, 3 seconds approach and subject to our approval and program and accordingly we'll announce the right time how many branches we'll be adding in the second half. 34:14 34 minutes, 14 seconds Okay, thank you sir. Thank you for answering the question and once again congratulations on your set of Thank you. Thank you. 34:22 34 minutes, 22 seconds Thank you. The next question is from the line of Isham Gupta from Choice Institutional Equities. Please go ahead. 34:31 34 minutes, 31 seconds Yes sir. Good afternoon. So my first question was for whole uh whole loan segment that we have already observed a 34:38 34 minutes, 38 seconds sharp decline in yields. So what was the primary reason? Was it because of higher competition or and uh I couldn't hear uh 34:45 34 minutes, 45 seconds properly. So could you reiterate means what what is the expansion we are seeing in the uh yields of gold? 34:57 34 minutes, 57 seconds Uh as far as expansion is concerned by uh current quarter we will ending up 999 35:05 35 minutes, 5 seconds branches of the gold loan and last quarter you have seen we added about 68 branches in the gold alone. 35:13 35 minutes, 13 seconds uh as far as the yield is concerned, the decline in the yield in Q3 FI26 compared 35:21 35 minutes, 21 seconds to Q2 FI26 is directly linked to our strategy of expanding the retail loan book with a particular focus on a 35:28 35 minutes, 28 seconds smaller digger size loan in rural markets. This shift has been effective in driving customer acquisition and enhancing market reach but it naturally 35:37 35 minutes, 37 seconds result in lower average figure size and it a slight compression of the yield. 35:41 35 minutes, 41 seconds Furthermore, the rural market has seen improved cash flow availability due to the harvesting cycle allowing customers 35:48 35 minutes, 48 seconds to make timely repayment excess rebate schemes and remain within the lowest RO brackets. 35:55 35 minutes, 55 seconds However, uh next quarter we expect the yield to improve by 20 basis or so 36:04 36 minutes, 4 seconds and uh any further expansion in 27 and 28 27 28 uh we will go to our regulator for 36:13 36 minutes, 13 seconds the approval and second half we'll announce our uh phase of expansion of 36:19 36 minutes, 19 seconds gold branches. First half we will try to make our existing branches will open in 36:26 36 minutes, 26 seconds last 3 4 months to make them grow and and and achieve the break even and thereafter we'll go to the next expansions out 36:34 36 minutes, 34 seconds and s what about the expansion in other branches other than gold loan what do you pencil in for 27 and 28 other than 36:42 36 minutes, 42 seconds gold loan so in the MSI microlab and home loan we 36:49 36 minutes, 49 seconds are continuously any so next year we can assume that between 100 and 125 branches 36:56 36 minutes, 56 seconds across microl MSM and home loan we will add understood so taking further the point 37:04 37 minutes, 4 seconds of MS MSN sector the government has continued continued its stance of supporting the NSM sector so based on 37:12 37 minutes, 12 seconds that can we assume our exposure towards MSN should also improve so what would be the AUM uh within next two 1 to two years. 37:23 37 minutes, 23 seconds So you have seen this quarter also overall we have shown the 19% growth in the MSM segment. So if you talk about 37:30 37 minutes, 30 seconds the composition of AUM currently uh gold is about 42%. 37:37 37 minutes, 37 seconds And this will improve to about 45 46. As regards MSME and uh construction finance 37:46 37 minutes, 46 seconds and housing is concerned, they will largely remain in the range of about uh 18 to 20% each one. 37:55 37 minutes, 55 seconds Understood. Understood. 37:58 37 minutes, 58 seconds And sir, we have already reached our exposure to 40%. So we are currently penciling 45% as the exposure towards 38:06 38 minutes, 6 seconds gold loans. So currently the gold prices have already witnessed uh high volatility in January. So do you see a 38:14 38 minutes, 14 seconds good growth based on it if the prices uh do fall further um or has volatile in crab and March? 38:22 38 minutes, 22 seconds So even though some price correction which you've already seen happening but on ground there's a still the larger 38:31 38 minutes, 31 seconds market of the gold lo still exit in the informance segment with the small money lender and the small jewelry show who 38:37 38 minutes, 37 seconds also do the lending activity that market is continue to shift to the organized sector because of the fair practice and the better interest rate. I I believe 38:46 38 minutes, 46 seconds that still lot of market which is going to shift from the informal to formal and we'll see decent growth in the in the 38:55 38 minutes, 55 seconds golden segment in the coming years. 39:00 39 minutes Yeah, that was it from my side. Uh all the best for the next quarter. 39:06 39 minutes, 6 seconds Thank you. Participants who wish to ask question, you may press star in one hand this time. 39:13 39 minutes, 13 seconds The next question is from the line of pet from west advisors. Please go ahead. 39:21 39 minutes, 21 seconds Yes. U my question is that uh given that the uh the borrowings announced in the budget is going to be more and this will 39:30 39 minutes, 30 seconds increase the this will result in higher rates for government uh finances. Uh do you see an increase on cost of funds for the company because of that for FI27? 39:42 39 minutes, 42 seconds So I put it this way that across the level if the cost goes up then by all 39:51 39 minutes, 51 seconds the lenders that is actually get passed on to the borrower but any cost reduction happens because of a better 39:59 39 minutes, 59 seconds credit rating or otherwise that benefit attender 40:09 40 minutes, 9 seconds and that cost will of course will get So that will not change our spread. 40:15 40 minutes, 15 seconds However, any cost reduction which we achieve because of a mix of borrowing by using the short-term instrument like 40:22 40 minutes, 22 seconds commercial paper or short-term entity or by improvement in credit rating these two features that benefit will directly equate to the P&L. 40:33 40 minutes, 33 seconds So what happens in the case where banks who are competing with go loans and companies like Capri Global for them 40:40 40 minutes, 40 seconds their cost of funds do not increase as much as they will be for an NBFC. So because of heightened competition could 40:48 40 minutes, 48 seconds this result in the ease on gold loans coming down so in any case banks are lending it less than 10%. And the the 40:56 40 minutes, 56 seconds gold loan NBFC are lending anything between 15% to 18% rate. So already that difference is there. So but the customer 41:05 41 minutes, 5 seconds segment of the bank and NBFC is entirely different. Second thing focus of the gold loan NBFC is purely only on the 41:14 41 minutes, 14 seconds gold loan customer where the banks do many other product also. So attention to the customers customer service to these 41:21 41 minutes, 21 seconds small borrower borrowing 30,000 40,000 50,000 rupees for a 6 month loan where banks margin may not be even 500 rupees. 41:30 41 minutes, 30 seconds the the service and the attention of the NBFC is going to be the key differentiating area. It is not that the 41:37 41 minutes, 37 seconds banks are not lending today low rate. So that 25 BC rate is not even the today more than 500 basis point but still all 41:45 41 minutes, 45 seconds the gold NBFCs are continue to grow. So I think that is not the factor of rate of interest to what rate banks are 41:53 41 minutes, 53 seconds lending and what rate we are lending they are entirely two different segment of customers. 41:59 41 minutes, 59 seconds Got you. The other question I had was regarding the gold LTV. So you explained right now uh regarding the prior participant. The question I wanted to 42:07 42 minutes, 7 seconds ask was that till what uh price of gold are we comfortable after this if it falls we will we would have to start uh 42:16 42 minutes, 16 seconds you know as you explained you would have to start calling customers and managing that. So what kind of price fall would you still be okay with? 42:25 42 minutes, 25 seconds So you have to understand it is like this that a customer whom we are given a one lakh is a say one against a gold of 42:31 42 minutes, 31 seconds 1 lakh rupees we given a 75,000 of loan that is a regulatory limit but our portfolio currently sitting at 60 it 42:40 42 minutes, 40 seconds means that our portfolio is already at 60,000 rupees assuming that somebody given the loan in 42:48 42 minutes, 48 seconds the month of January when the gold loan prices have gone up 10% again and follow more than 10% % that time you are having 42:55 42 minutes, 55 seconds a loan to value not 25% but we are following a loan to value of only 65%. 43:02 43 minutes, 2 seconds So 35% margin you taking even the gold loan prices fall 10%. Still that till then it will remain within 75% range the 43:11 43 minutes, 11 seconds moment his LPG breaches where the LTG exceed because of the reduction of the gold loan value beyond 75%. Suppose some 43:20 43 minutes, 20 seconds customer LT has given 78% 79% on a particular day 4% in a 75,000 rupees 43:29 43 minutes, 29 seconds loan which means that 3,000 rupees he have to recover from it from the system auto message will be sent to the 43:36 43 minutes, 36 seconds customer that your LP has been breached by this and this amount within 14 days if you don't register the margin he has 43:44 43 minutes, 44 seconds a right to auction the gold plus it will also invite the panel charges and this and that customer is being called by the 43:52 43 minutes, 52 seconds branch and SMS is already sent to him and recovery is done. So customer is so 43:58 43 minutes, 58 seconds it is not that in one day 25% correction will happen and we are out of the money. 44:04 44 minutes, 4 seconds So correction will happen gradually and there's educate system based alert and calls are triggered and recovery is made 44:14 44 minutes, 14 seconds from the customer. Individual customer we have to collect 3 4 5,000 rupees only to make up that margin. In the worst 44:21 44 minutes, 21 seconds scenario, we will end up in selling the gold and realizing our money being ticket size being so granular and the 44:28 44 minutes, 28 seconds risk is so diversified. This does not pose a real risk in terms of recovery. 44:34 44 minutes, 34 seconds Gold being so liquid and gold is the only asset class where customer park with the position it remain in our 44:40 44 minutes, 40 seconds custody. So there's no process of taking the position something like that in real estate. Here gold is in our position. We 44:48 44 minutes, 48 seconds can sell them real. So there's no real risk any. 44:52 44 minutes, 52 seconds Gotcha. Gotcha. The other question I wanted to understand is that what kind of growth momentum do you foresee for quarter 4 and also for the next 45:01 45 minutes, 1 second financial year? If you can give some guidelines and I think we uh we have said that this year uh we will continue to deliver a 45:09 45 minutes, 9 seconds growth a to be in the range of about 33,000 to 34,000 and we are on that track. Already we achieved 30,400 code 45:18 45 minutes, 18 seconds this uh 9 month period and we will continue to grow. Next year we revis our 45:25 45 minutes, 25 seconds guidance uh to re to deliver anything between about 43 to 44,000. Earlier we 45:32 45 minutes, 32 seconds said that we will achieve 50,000 crum by FY28. Now that guidance will be revised to reach to 55,000 cr by FI28. 45:43 45 minutes, 43 seconds So alongside this growth do you have any targets for your ROAS and ROE what you see we are we already delivered in this 45:52 45 minutes, 52 seconds quarter 4% ROA and we continue to maintain that our aim will be to deliver 45:59 45 minutes, 59 seconds ROE in the range of about 16% plus and RO anything between uh 4% to 4.25%. 46:11 46 minutes, 11 seconds Wonderful. Thank you. All the best. 46:15 46 minutes, 15 seconds Thank you. Anyone who wishes to ask a question may press star and one. 46:21 46 minutes, 21 seconds The next question is from the line of Mr. Bansil from NBG Investments. Please go ahead. 46:28 46 minutes, 28 seconds Yeah. My question is on the this uh gold ratio. While answering the earlier 46:36 46 minutes, 36 seconds participant questions, you said that you have a margin of around 35 to 40%. But I see your presentation where you said 46:44 46 minutes, 44 seconds that you know your grown to value is around 72%. 46:49 46 minutes, 49 seconds Which means that you have a margin of around 28 to 30%. So can you help me understand what is this true? 46:58 46 minutes, 58 seconds So what I think you have seen the slide number eight is referring the incremental dispersal. 47:07 47 minutes, 7 seconds Okay. 47:08 47 minutes, 8 seconds So incremental disable all three months if you see Q3 FI26 showing is 72%. 47:15 47 minutes, 15 seconds Now 72% thereby it would mean that on the day when we disbose we disbp 47:26 47 minutes, 26 seconds will keep coming down so in the current trend where the gold was going up or LTB started falling. 47:38 47 minutes, 38 seconds Okay. Oh, we are going to clarify you. 47:46 47 minutes, 46 seconds Yeah. Yeah. Understood. Understood. 47:48 47 minutes, 48 seconds Thank you. Thank you for the clarification. 47:52 47 minutes, 52 seconds Thank you. The next question is from the line of Vitran Pankacha from Choice Institutional Equities. Please go ahead. 48:02 48 minutes, 2 seconds Uh thank you for giving me opportunity. 48:05 48 minutes, 5 seconds Could you share uh your perspective on the medium-term capital trajectory as growth continues as federal uh adequacy 48:14 48 minutes, 14 seconds converges towards target levels? How should you investors think about trade-off between growth leverage and potential capital return? 48:26 48 minutes, 26 seconds We have adequate capital as I explained currently about in the range of 30%. We have adequate capital to support our 48:33 48 minutes, 33 seconds growth for next 2 years. So till FY28 the EU whatever uh we intend to reach 48:40 48 minutes, 40 seconds 55,000 cr within that as I said 23% is of balance sheet item which is the cool lending for that there is no capital 48:48 48 minutes, 48 seconds allocation is required. So keeping that in mind we are we currently only have 2.8 8 time leverage we are quite 48:56 48 minutes, 56 seconds comfortable to achieve our target AUM for FY28 uh with the current capital. 49:07 49 minutes, 7 seconds Okay, thank you. 49:10 49 minutes, 10 seconds Thank you. The next question is from the line of Vikrama Gajar from Ventura Securities. Please go ahead. 49:19 49 minutes, 19 seconds Hello. Um my question is uh given higher competition in secured MSN and LA are new loans coming at similar economics as before the pricing is getting tighter. 49:30 49 minutes, 30 seconds How are you compensating through underwriting discipline or risk controls? 49:36 49 minutes, 36 seconds So I think the biggest lever we are focusing as you said we are using technology platform across the way we 49:44 49 minutes, 44 seconds onboard the customer the way we process our loan the way we do underwriting and later how do we do collection of the 49:51 49 minutes, 51 seconds loan. The entire focus is how do we improve our productivity by continuously 49:58 49 minutes, 58 seconds improving and these technological grade initiative platform and AI agentic AI 50:04 50 minutes, 4 seconds tools are making a C change. Uh if we can say that our while number of 50:11 50 minutes, 11 seconds branches have gone up significantly have doubled our manpower have headc count have increased only by a marginal 19% of 50:21 50 minutes, 21 seconds that. So our focus is going to be become how you become operationally very very efficient by using all these uh tech and 50:29 50 minutes, 29 seconds data science tools. So our focus is going to remain that same amount of disruption we do with the less number of 50:36 50 minutes, 36 seconds people with the less operating cost and our model become very very robust and that is driving our RO and RO if you see 50:44 50 minutes, 44 seconds quarter quarter the improvement has been seen despite we continue to remain in growth while we continue to add on the 50:51 50 minutes, 51 seconds branches the new capital has been added and still we are able to deliver the RO of 4% and RO about 15% result of the 51:00 51 minutes focus us on productivity efficiency using the technology and data science tools. 51:10 51 minutes, 10 seconds Okay, thank you and all the best. 51:14 51 minutes, 14 seconds Thank you. The next question is from the line of Saga Sha from Spar Capital. Please go ahead. 51:20 51 minutes, 20 seconds Yes. Uh uh thank you sir. Thanks for first of all for the opportunity and cong congratulations sir for uh such 51:28 51 minutes, 28 seconds excellent set of numbers. My I majority of my questions are answered actually I 51:34 51 minutes, 34 seconds just had one question. U we had we have been affirmed by Chris the rating of a 51:41 51 minutes, 41 seconds A1 plus and uh our cost average cost of borrowings are self-calulated stands at 9.5%. And um the lowering of cost of 51:50 51 minutes, 50 seconds models is one of the major uh things for us behind our roation. 51:56 51 minutes, 56 seconds So uh you guided around few quarters before that our cost of borrowings is expected to come down once the rating is 52:05 52 minutes, 5 seconds actually gets upgrades rating gets upgraded. So any uh something like talks with the rating so that it's a big 52:14 52 minutes, 14 seconds driver for us regarding our rate on ratios. 52:18 52 minutes, 18 seconds So I I would like to say that cost of fund have already been reduced by 25 24 basis on the back of strong performance. 52:27 52 minutes, 27 seconds The internal rating uh model which banks follow this is they have reduced the rate of interest in the risk rate. 52:34 52 minutes, 34 seconds Further we are diversifying the borrowing by mixing the short-term tool which are available uh at shorter uh 52:41 52 minutes, 41 seconds tenure but at lower cost like commercial paper and short-term. 52:46 52 minutes, 46 seconds So 24 basis is already achieved and we expect on the back of good performance crediting should happen. Now not that 52:55 52 minutes, 55 seconds agency tell that in advance it will happen but we believe it is a it is a focus on continuous effort and better 53:04 53 minutes, 4 seconds performance will yield to the rating upgrade. Whenever it happens that they they decide and they let everyone know 53:12 53 minutes, 12 seconds in the public domain also but without that also by mix of borrowing and other 53:19 53 minutes, 19 seconds measures we see that continuously we'll bring our cost of funds further down whenever the credit happens maybe after 53:27 53 minutes, 27 seconds uh annual result of when they everybody will let you know but there's a sharp focus on reducing the cost of fund by 53:34 53 minutes, 34 seconds another 24 25 dishes so that whatever safety bases we expected that we bring it down in next 3 to 6 months time. 53:45 53 minutes, 45 seconds Okay. So basically due to the RBI rate cards and the the and follow through from the banking system you are 53:52 53 minutes, 52 seconds estimating around 25 to 50 base another one but uh at if the rating gets upgraded to more double A plus or 54:00 54 minutes anything like that then the what is the minimum expectation that the company has of lowering the cost of borrowings 54:08 54 minutes, 8 seconds because that will be class with the top A and BC that is right that will be a big for uh companies like uh K global sensor. 54:17 54 minutes, 17 seconds So as as we said 24 basis is already achieved another 24 25 basis we intend to achieve in next 3 to 6 months without 54:26 54 minutes, 26 seconds accounting any rating upgrade. Whenever the rating upgrade happen, this is a gradual process that the lot of other 54:34 54 minutes, 34 seconds avenues open up and then banks also take the measure and that another it takes 6 to 9 months to actually uh start to come 54:43 54 minutes, 43 seconds in the P&L because the rating reset of the existing borrowing happen at the reset date new borrowing immediately 54:50 54 minutes, 50 seconds start happening at the lower rate. So is a is a process which happen by in a gradual manner not that moment rating 54:59 54 minutes, 59 seconds upgrade happens entire borrowing cost comes down but yes in 6 to 9 months the effect can be seen. So again 24 bases 55:08 55 minutes, 8 seconds already achieved another 20 to 25 bases will achieve another between 3 to 6 months time and whenever the rating upgrade happens that will happen the the 55:17 55 minutes, 17 seconds cost advantage will acrewue between 6 to 9 months from there. 55:24 55 minutes, 24 seconds Okay. Okay. Thank you sir and all the best and first of all again congratulations for excellent settlement number sir. Thank you. 55:32 55 minutes, 32 seconds Thank you. The next question is from the line of Pinand Jada from HKP securities. Please go ahead. 55:41 55 minutes, 41 seconds Yeah. Hello. Uh good afternoon. So my question is on microl. So you mentioned uh you're targeting a portfolio of 3,000 55:50 55 minutes, 50 seconds cr in next 2 to 3 years. So if the crew you know shared some color on the customer dem demographics like what is 55:57 55 minutes, 57 seconds the area you're targeting and the average size of the uh of the of the portfolio and also what are the d uh 56:04 56 minutes, 4 seconds driving factors you are saying that you would be able to achieve this target in next uh two or three years. 56:12 56 minutes, 12 seconds Microl lap average size is about five lakh. It is collateralized by security. 56:19 56 minutes, 19 seconds The yield is in the range about 23 to 24%. 56:23 56 minutes, 23 seconds And uh currently a is about 650 cr rupes from the 51 branches. In next 3 years time from now we intend to have a loan book about 3,000 cr. 56:36 56 minutes, 36 seconds So uh uh any ground situation you're seeing how is the customer behavior or you know how is the repayment? 56:45 56 minutes, 45 seconds uh so the factors that could help in you know achieving I see [clears throat] our collection efficiency in the range of micro levels 56:51 56 minutes, 51 seconds of 19% which is very very good and we uh not like other micro lab lenders we are 56:59 56 minutes, 59 seconds using here technology and other tools to see that we are able to at the time of 57:05 57 minutes, 5 seconds sourcing the customer that customers are are rejected there itself so GNPA microlab GNPA at the end of third quarter is about.9%. 57:16 57 minutes, 16 seconds Which is very very good. our uh P&L account for uh even the NP GMPP happen 57:24 57 minutes, 24 seconds in this range because we are making the yield about 23 24% even 2 2 and a half% is reasonable but since is a new 57:31 57 minutes, 31 seconds portfolio and we are continue to focus on our technological tool I think the way we are sourcing customer way we are 57:38 57 minutes, 38 seconds underacting the customer we are going to create the new benchmark in the industry in the micro lab Thank you. 57:51 57 minutes, 51 seconds Thank you. The next question is from the line of mokshanki from PST advisors. Please go ahead. 58:00 58 minutes Hello. Hi everyone. Um, thank you for the opportunity. Um, so I guess majority of our questions have been answered. My 58:08 58 minutes, 8 seconds specific query was on the designation of the CEO. So the person was appointed and appointed and resigned within a period 58:16 58 minutes, 16 seconds of less than 4 months and I just and there were some rumors in the market as well. I just if the management could 58:24 58 minutes, 24 seconds provide a little more clarification than the sentence that was provided in the um press release that he's pursuing the 58:32 58 minutes, 32 seconds person entrepreneurial journey journey that would be a little more better for us. 58:38 58 minutes, 38 seconds Yeah thank you. So yes uh the Mr. Monu was based through and throughout from 58:44 58 minutes, 44 seconds Delhi. Uh he was influent 58:52 58 minutes, 52 seconds before actually he settled down. I think rather than coming to Bombay and shifting this base here, he thought and 59:01 59 minutes, 1 second reconsidered his decision in terms of that at this age juncture of his 52 age, he would like to pursue some 59:08 59 minutes, 8 seconds entrepreneurial opportunity and he changed his mind and he has gone back to Delhi and he's uh he's told us that he's 59:16 59 minutes, 16 seconds going to start something entrepreneurial in fintech space. Uh having said that 59:23 59 minutes, 23 seconds not that he has built some businesses and involved he just recently came and uh within a short span of time less than 59:32 59 minutes, 32 seconds a quarter he made up his mind. So neither he brought any certain number of team members along with him. So there's 59:38 59 minutes, 38 seconds a impact of team coming team going and I don't think it has a much impact there's a adequate uh number of professionals in 59:48 59 minutes, 48 seconds team in each vertical be it MSME be it gold microlab housing finance car loans there's a separate risk heads there's a 59:55 59 minutes, 55 seconds group CRO so all that is in place and uh it is not going to have any adverse impact as such 1:00:04 1 hour, 4 seconds understood my specific um issue was on the front that such a high level KMB is entering the company and leaving in such 1:00:11 1 hour, 11 seconds a short span of time. Um it might have a signal that there are some type of underlying issues or something but I 1:00:19 1 hour, 19 seconds guess it your answer addresses my thank you. 1:00:25 1 hour, 25 seconds Thank you ladies and gentlemen due to time constraint that was the last question. I would now like to hand the conference over to the management for closing comments. 1:00:42 1 hour, 42 seconds Yeah, thank you. To conclude, uh we as you all know that we delivered a strong performance in Q3 FI26 with the healthy 1:00:51 1 hour, 51 seconds Asian growth across our key lending segment supported by diversified in predominantly secured portfolio. 1:00:59 1 hour, 59 seconds Profitability improved during the quarter driven by changing mix to high yield products, improving margins, strong growth in fee income and 1:01:06 1 hour, 1 minute, 6 seconds operating leverage from our existing branch network while asset quality remained resilient with a strong capital position and continued investment in 1:01:15 1 hour, 1 minute, 15 seconds technology and distribution. We are well positioned to scale efficiently and are confident of increasing our AUM target 1:01:21 1 hour, 1 minute, 21 seconds to rupes 55,000 cr by FI28 and sustainable return on average equity of 16% to 18% and return on average assets 1:01:31 1 hour, 1 minute, 31 seconds in the range about 4% to 4.25 5% by FI28. Thank you. 1:01:40 1 hour, 1 minute, 40 seconds On behalf of Go India Advisers, that concludes this conference. Thank you for joining us and you may now disconnect your lines.