Capri Global Capital Ltd — Q4 FY26

Capri Global Capital Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=s0_1957KbJE Published: 9 days ago

0:00 Ladies and gentlemen, good day and welcome to the Capri Global Capital Limited Q4 FY26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in a listenon mode and there will be an opportunity for you to 0:17 17 seconds ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:26 26 seconds zero on your touchtone phone. Please note that this conference has been recorded. I now hand the conference over 0:34 34 seconds to Mr. Hardik Doshi. Thank you and over to you sir. 0:40 40 seconds Good afternoon everyone and warm welcome to FYI26 earnings call for Capri Global Capital Limited. This is Hardik Dooshi, 0:48 48 seconds head corporate finance and investor relations. Before we begin, let me read out a brief disclaimer. The discussion on today's call regarding Kapri Global 0:57 57 seconds Capital Limited's earnings performance is based on judgments derived from the results declared 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 in future. In 1:14 1 minute, 14 seconds that context, participants on today's call are advised to consider the same while interpreting the results. A full disclaimer is available on slide 63 of 1:22 1 minute, 22 seconds the earnings presentation which is available on our website. Participants are requested to kindly take a note of the same. Format of today's call would 1:31 1 minute, 31 seconds be opening remarks by the management team followed by Q&A. 1:35 1 minute, 35 seconds With that, let me now introduce the management team from Capric Global Capital present on the call. With us today, we have Mr. Rajes Sharma, 1:45 1 minute, 45 seconds managing director and promoter. Miss Dya Sutar, executive director, business strategy. Mr. Kishor Loda, chief 1:52 1 minute, 52 seconds financial officer and Mr. Sanjiv Shivasawa, chief risk officer. I would now request our managing director, Mr. 2:00 2 minutes Mr. Rajes Sharma to present his opening remarks on the results. Over to you, sir. 2:07 2 minutes, 7 seconds Yeah, thank you Az. Uh, good evening everyone. I hope you all are doing well. 2:14 2 minutes, 14 seconds uh we announced our audited financial results for the fourth quarter of FI26 on 30th April. I trust you have had the 2:23 2 minutes, 23 seconds opportunity to go through our earning presentation which is also available on our website. 2:30 2 minutes, 30 seconds Before I move on to the financial and operational highlights, I would like to touch upon the broader operating environment and the key developments during the quarter. 2:40 2 minutes, 40 seconds Recent geopolitical situation triggered demand approvals due to supply chain disruptions and higher fuel and energy cost. However, India's economy continues 2:50 2 minutes, 50 seconds to demonstrate resilience and a mixed and uncertain global macroeconomic gap backdrop with domestic highfrequency 2:57 2 minutes, 57 seconds indicator for March not reflecting much adverse impact. Amidst this soft micro 3:04 3 minutes, 4 seconds environment, I'm delighted to share a key development in the history of Capital Global. The company has secured 3:11 3 minutes, 11 seconds credit rating from two leading global rating agencies. Long-term issuer default rating of doubleb minor with a 3:19 3 minutes, 19 seconds stable outlook by switch ratings and BA3 corporate family ratings with a stable outlook by moody ratings marking a 3:28 3 minutes, 28 seconds significant milestone in our group's journey and offering strong validation of our business model governance standard and risk management practices. 3:38 3 minutes, 38 seconds These ratings reflect company's diversified and 100% secured lending portfolio with strong asset quality, 3:45 3 minutes, 45 seconds robust capitalization and focus on prudent lending and risk management processes. The stable outlook from both 3:52 3 minutes, 52 seconds agencies underscore confidence in the company's ability to sustain its growth momentum while maintaining financial discipline. 4:01 4 minutes, 1 second With this backdrop, I am pleased to say that Capri Global delivered strong quarterly performance in Q4 FY26, 4:10 4 minutes, 10 seconds continuing its growth momentum and maintaining asset quality while delivering highest ever quarterly profit of rupes 283 crores, a 59% increase year 4:20 4 minutes, 20 seconds on year and fullear profit of rupes 949 crores almost double from the last year. 4:26 4 minutes, 26 seconds Also we delivered marked improvement in asset quality this quarter with gross NP declining to.9%. 4:34 4 minutes, 34 seconds Now coming to our detailed business and earning performance during the quarter. 4:40 4 minutes, 40 seconds We continued our strong momentum across all lending businesses in fourth quarter 4:47 4 minutes, 47 seconds FY26. Our consolidated AUL is stood at rupees 36623 crores reflecting a robust 60% 4:56 4 minutes, 56 seconds yearon-year growth and 20% quarteronquarter growth. Gold loans grew an impressive 111% yearonear and MSME 5:05 5 minutes, 5 seconds grew at healthy 23% yearonear while housing loans rose 43% yearonear. 5:12 5 minutes, 12 seconds Disbustments for the quarter rose 116% yearonear to rupees 18,145 crores on account of growing customer base and widening distribution network. 5:24 5 minutes, 24 seconds Our growth remains granular diversified and retail base with our customer base now exceeding 6.9 lakhs. 5:33 5 minutes, 33 seconds For our gold loan business, we delivered a strong and well balanced performance in line with our strategic 5:40 5 minutes, 40 seconds objective of growth driven by branch expansion while maintaining focus on effective risk management. During the 5:48 5 minutes, 48 seconds quarter we further expanded our presence in high potential southern and eastern region of India with the net addition of 5:57 5 minutes, 57 seconds 89 new branches mainly 36 in Telangana 18 in Andhra Pradesh eight in Karnataka 6:04 6 minutes, 4 seconds and 20 in Odisa to support the next phase of growth. Gold loan amum saw robust growth to rupees 6965 cr. A 6:14 6 minutes, 14 seconds sequential increase of 33% quarteron quarter led by healthy customer demand and trust. Our aggregate branch 6:22 6 minutes, 22 seconds productivity continues to see strong gains and has improved now from reach 14 per branch in previous quarter to rupees 6:29 6 minutes, 29 seconds 17 cr per branch. Our gold loan employee base increased only by 10% yearon year. 6:36 6 minutes, 36 seconds The resulting in significant improvement in our employee productivity from rupees 1.6 cr year earliest to rupees 3.1 cr. 6:43 6 minutes, 43 seconds Now considering the volatility in gold prices we maintain conservative loan to value ratios on new displacement while 6:52 6 minutes, 52 seconds ensuring strong collection practices across the portfolio. Our efforts in controlling asset quality prove 6:59 6 minutes, 59 seconds effective. The growth NPA in gold loan stood amongst the best in the industry at.3% underscoring our focus on management and portfolio quality. 7:10 7 minutes, 10 seconds Overall G4 marked strong performance for the golden business combining growth through geographical diversification 7:18 7 minutes, 18 seconds alongside risk discipline and operational execution with 90% branches now operating above the break even threshold of reach 5 crum per branch. 7:28 7 minutes, 28 seconds Our MSN AUM grew to rupees 6,465 cr up 23% on yearon year and discussion 7:36 7 minutes, 36 seconds stood at rupees 2550 crores for FY26 up 65% yearonear 7:43 7 minutes, 43 seconds led by steady execution and network expansion within MSME or microlled business continues to gain traction with 7:51 7 minutes, 51 seconds you rising to 824 crores aj at the end of Q4 FI26 this vertical will enable us to serve 7:59 7 minutes, 59 seconds emerging self-employed borrowers with smaller ticket size requirements. In this segment, our immediate priority is 8:06 8 minutes, 6 seconds to leverage robust technological interventions to boost sales productivity and enhance operating 8:13 8 minutes, 13 seconds efficiency across the expanded network before moving into the next phase of branch expansion. Our housing aum is 8:22 8 minutes, 22 seconds today rupees 7,447 crores delivering a yearon-year growth of 43%. We continues to see resilient 8:30 8 minutes, 30 seconds demand across the affordable housing segment where rising income levels and a stable interest rate regime are driving 8:38 8 minutes, 38 seconds demand for housing loans with foray into high potential South India market by entering states such as Andhra Pradesh in the previous quarter. 8:48 8 minutes, 48 seconds We now have strengthened our presence in South India with 25 branches. The strategic expansion step towards 8:56 8 minutes, 56 seconds geographical diversification, increasing portfolio granuity and support yield expansion over time. Further, our yields 9:04 9 minutes, 4 seconds in housing finance segment have increased consistently a result of our efforts to pivot the mixed word self-employed customer segment which now comprise 74% of AUM. 9:15 9 minutes, 15 seconds Our construction finance AM saw healthy growth of 38% yearon year to rupes 5,78 cr rupees spread across 282 active 9:24 9 minutes, 24 seconds project with an average sanction ticket size rups 48 cr and outstanding portfolio ticket size rupes 20 cr. The 9:32 9 minutes, 32 seconds book remains granular and well diversified by geography reflecting our focus on working with midsize developers 9:40 9 minutes, 40 seconds in metro and tier one cities. We continue to emphasize discipline underwriting through rigorous due 9:47 9 minutes, 47 seconds diligence and escro based cash flow management ensuring a risk containment approach. Our total branch network 9:55 9 minutes, 55 seconds expanded to 1429 locations in Q4 FI26 with a net addition of 98 branches 10:04 10 minutes, 4 seconds during the quarter and 318 branches during the year. We continue to invest in expanding our network and 10:11 10 minutes, 11 seconds geographical footprint in line with our goal of becoming a large scale panindia retail lender. 10:19 10 minutes, 19 seconds Let me now provide an update on our core earnings. Our blended yields and spreads on net advances remain healthy in the 10:27 10 minutes, 27 seconds quarter 8.3% and 7.1% respectively driven by increasing share of high yields product 10:34 10 minutes, 34 seconds and decline in cost of funds. Our net interest income for Q4 FI26 student date rupes 596 cr of 56% yearonear and FI26 10:44 10 minutes, 44 seconds student date rupees 1,998 cr of 50% yearonear driven by strong loan book expansion 10:53 10 minutes, 53 seconds in line with our focus on building a diversified and resilient earnings profile we continue to strengthen our 11:00 11 minutes non-interest income stream in Q4 FI26 reinforcing our strategy of generating ing recurring quality of income. 11:09 11 minutes, 9 seconds Non-interest income grew 36% yearonear to rupes 247 crores contributing 29% over net total income for the quarter. 11:19 11 minutes, 19 seconds This is strong increase but largely driven by growth in commission on insurance distribution and co-ending fee income. In our insurance distribution 11:27 11 minutes, 27 seconds business, we generated net fee income of rupees 65 cr during the quarter and rupees 153 cr for the full year with the 11:36 11 minutes, 36 seconds help of our upgraded fully digital end to end platform capri care launch in Q three 11:43 11 minutes, 43 seconds third quarter. We can now issue policy real time with the speed and convenience thus. significantly easing insurance adoption across our retail customer base and scale our insurance distribution. 11:56 11 minutes, 56 seconds While our loan protection insurance has addressed life rated with we embedded preventive healthcare and wellness solutions such as annual health 12:04 12 minutes, 4 seconds screening and cashless consultation into the capric care ecosystem, evolving it from a claimdriven product offering into 12:12 12 minutes, 12 seconds a proactive health and protection partner for our customers. Going forward, we will continue to strengthen our insurance insurance offering for 12:21 12 minutes, 21 seconds gold loans and MSME customers while expanding into cross for retail health and motor insurance through digital 12:28 12 minutes, 28 seconds channels. This digital first integrated approach expected to drive higher insurance penetration, improve customer 12:35 12 minutes, 35 seconds engagement and meaningfully enhance free income contribution over time. Our co-ending AUM surged 91% yearonear and 12:44 12 minutes, 44 seconds 9% quarter on quarter to rups 7,783 cr now accounting for 21% of total AUM reflecting our strategy of capital 12:53 12 minutes, 53 seconds efficient growth as you would be aware new coending guidelines have come into effect from 1st Jan 2026 and as for that 13:01 13 minutes, 1 second industry will start moving to new coending guidelines once existing contracts expire because of this there could be temporary slowdown in equal 13:09 13 minutes, 9 seconds ending volume for a couple of quarters but eventually volume should come back. 13:14 13 minutes, 14 seconds Going forward we would also be exploring direct assignment route at a faster pace and higher volume as there is a good 13:21 13 minutes, 21 seconds demand for the same from partner banks considering the PSL nature of our loan book as well as gold portfolio. 13:28 13 minutes, 28 seconds Our co-ending and DA income for the quarter is 2 97 crores up 76% yearonear 13:35 13 minutes, 35 seconds and down 16% quarter on quarter driven by higher dispersion volume and deeper engagement with partner banks. Our car 13:44 13 minutes, 44 seconds loan distribution business maintain its steady momentum with origination of rups 3,492 13:51 13 minutes, 51 seconds cr in Q4 FI26 up 18% yearonear and rupees 11,910 crores in FI26 up 13% 13:59 13 minutes, 59 seconds yearon year with a growing footprint and deep relationship across 14 partner banks and financial institutions we have 14:07 14 minutes, 7 seconds built a scalable platform with pan India network in this segment with potential to monetize further for distribution of 14:14 14 minutes, 14 seconds other products. On the expenses front, our operating expenses increased 7% quarteron quarter. This was mainly 14:23 14 minutes, 23 seconds driven by net addition of 692 employees up 5% quarteron quarter on account of new branch additions. Our continued 14:31 14 minutes, 31 seconds focus on operating efficiency is visible with the cost to income ratio improving to 49.4% in Q4 FY26 compared with 54.8% 14:41 14 minutes, 41 seconds 8% in Q4 FY25. This sharp improvement signifies the benefit of investment in technology, a maturing branch network, 14:49 14 minutes, 49 seconds rising productivity and improving operating leverage across our businesses. 14:54 14 minutes, 54 seconds As a result of margin expansion, operating efficiency improvement and a strong traction in fee income, our pre-provision operating profit serves 15:03 15 minutes, 3 seconds 68% year on year to rupees 427 cr for the quarter and robust 97% yearonear to 15:09 15 minutes, 9 seconds rupees 1,446 cr for full years. Further, we continued our strong profitability momentum in Q4 FI26, delivering a robust 15:19 15 minutes, 19 seconds path of rupees 283 cores, a 59% yearonear and 949 cr for FI26. 15:27 15 minutes, 27 seconds Strong upstrong 98% yearonear. Our return ratios considerably improved during FI26 with return on average 15:34 15 minutes, 34 seconds equity at 16.5% versus 11.8% 8% for previous year and return on average assets at 3 and a half% for the year versus 2.7% for the previous year. 15:47 15 minutes, 47 seconds Now coming to our asset quality, we saw marked improvement on in our asset quality across each of our business segments. Our gross stage two assets 15:56 15 minutes, 56 seconds decreased by rupees 100 cr driven by reduction of rup 22 cr in MSN, rupees 18 cr in gold, rupees 53 cr in construction 16:04 16 minutes, 4 seconds finance. The decline in construction lands is on account of a strong collection efforts and roll back of pre account. Our gross stage to ratio for 16:12 16 minutes, 12 seconds the quarter was down to 2.8% from 4% in previous quarters. Our gross stage three asset decreased by rupees 11 cr 16:19 16 minutes, 19 seconds quarteron quarter mainly driven by decrease in housing loan. Our gross sty ratio improved quarter on quarter by 16:26 16 minutes, 26 seconds gold loan to 0.3% for housing loan 1% and remained flat 3% for MSME and.3% for 16:34 16 minutes, 34 seconds construction finance at consolidated level our gross stage three ratio improved further to.9% down sequentially 16:41 16 minutes, 41 seconds by 61 basis while net stage three ratioed.5% down 35 basis sequentially which is 16:48 16 minutes, 48 seconds amongst the top quartile in the industry our impair Retirement cost for the quarter student to be 54 cr. This is 16:56 16 minutes, 56 seconds largely attributed to stage one provisions on account of increase in the loan book and included student 17:06 17 minutes, 6 seconds management overlay and provision to account for evolving macroeconomic conditions of rupees 16 cr. Historically 17:13 17 minutes, 13 seconds our credit cost has remained in the range of 6 to 7% of the average total assets. At consolidated level, our provision coverage ratio on stage three 17:22 17 minutes, 22 seconds assets remain steady at 41.2% and our segment wide PCR also remain healthy and amongst the best in our PA groups. 17:32 17 minutes, 32 seconds Let me now talk about our liability side. Our borrowings increased by 55% yearon year and incremental borrowing 17:40 17 minutes, 40 seconds sanction limits for the full year around rupes 10,950 cr rupes. We added 15 new lender relationship this year taking the 17:48 17 minutes, 48 seconds active relationship now to 35 plus. We also continue to diversify our borrowing by mix by raising funds through other 17:57 17 minutes, 57 seconds instruments such as non-convertible debentures and commercial papers. During the year, we raised rupees 2,187 18:05 18 minutes, 5 seconds cr from non-convertible debentures and commercial papers. In addition, we also closed last week our second public NCD 18:13 18 minutes, 13 seconds shells for rupees 489 cr with average tenure four years. As a result of MCLR reduction in our effect active effort on 18:22 18 minutes, 22 seconds retricing existing borrowings, our cost of borrowings decline further by 18 basis quarteron quarter. Our balance 18:29 18 minutes, 29 seconds sheet remains robust with low leverage ratio of 3.3x providing ample headroom to support growth across business 18:38 18 minutes, 38 seconds segments. Our standalone capital education ratio CGCL is about 25.8% and 27.7% 18:47 18 minutes, 47 seconds for a housing grant subsidy. Our liquidity remains comfortable with over rupees 3,964 cr in cash and bank 18:54 18 minutes, 54 seconds balances investment and undrawn credit lines across CGCL and CGFL. 19:02 19 minutes, 2 seconds On the technology front this year our focus was something fundamental or building fast that that is to build 19:10 19 minutes, 10 seconds right. Four years ago, we made a deliberate structural choice to move away from being a traditional NDFC that 19:17 19 minutes, 17 seconds operates on technology to becoming a platform native AI first financial institution. What we have built is not a 19:24 19 minutes, 24 seconds static endpoint. It is scalable architecture that will continue to deepen operating leverage AG progressively embedded AI across the 19:33 19 minutes, 33 seconds technology stack. Let me anchor this in the numbers first. As you all are aware, our EUM grew 60% yearonear. Disbustment 19:41 19 minutes, 41 seconds grew by 83% while headcount grew just by 19%. That delta between disbburusment growth and headcount growth is not 19:49 19 minutes, 49 seconds incidental. It reflects technology and AI replacing linear growth with intelligent scale and this is clearly 19:56 19 minutes, 56 seconds visible in our financial outcomes. As mentioned our cost to income ratio for the year has compressed to 49% from 60% 20:04 20 minutes, 4 seconds year earlier and return on average assess expanded to three and a half% and return on average equity expanded to 16 20:11 20 minutes, 11 seconds and a half%. Capital today operates on realtime event-driven architecture where every customer interaction across 20:18 20 minutes, 18 seconds sourcing, underwriting, servicing and collection is captured within our in-house lending ecosystem and instantly converted into decision grade intelligence. 20:28 20 minutes, 28 seconds In Q4 alone, we processed over 115,000 customers interaction through speechto text pipeline and executed more than 20:36 20 minutes, 36 seconds 40,000 multilingual AI voice interactions entirely autonomous and without human intervention. The real 20:42 20 minutes, 42 seconds value however is not in the volume. It is in the conversion of interaction into intelligence. These interaction feed into a continuous learning 20:50 20 minutes, 50 seconds feedbackdriven system that generated over 2 lakh 85,000 structured intelligence output during the quarter. 20:57 20 minutes, 57 seconds Each one tagged, scored and rooted into our credit risk and collection engine real time. We have fundamentally graduated from processbased lending to 21:06 21 minutes, 6 seconds data empowered decisioning. Our bureau rule engine process over 61,000 applications in Q4 alone. Our automated 21:14 21 minutes, 14 seconds bank statement analysis pipelines completed over 29,000 assumption without human intervention. What this means in 21:22 21 minutes, 22 seconds practice is that a growing share of our book is now witnessing reduced variability, compressed stats and 21:29 21 minutes, 29 seconds improved portfolio behavior coupled with consistency. 21:33 21 minutes, 33 seconds During Q4 FI26, our Capri loans customer app recorded over 31.5 lakh digital customer engagement. In terms of 21:41 21 minutes, 41 seconds financial through output, the app facilitated transaction of approximately rupees 784 cr during the quarter. For 21:48 21 minutes, 48 seconds the full year FY26, the app delivered over 85 lakhs customer engagement with an aggregate transaction value exceeding rupees 1700. 21:59 21 minutes, 59 seconds On the collection side, the system operates as a predictive closed loop framework. We triggered approximately 1 lakh 455,000 automated nudges every 22:08 22 minutes, 8 seconds month driven by AI action models. Our platform is built on an API first microservicesdriven architecture which 22:16 22 minutes, 16 seconds handled over 310,000 310 million external API calls in a single month across our various 22:25 22 minutes, 25 seconds applications. Behind these external calls are billions of internal interactions that allows us to run the entire landing life cycles in real time. 22:34 22 minutes, 34 seconds At this scale, we are no longer operating applications. We are running a unified intelligence platform that 22:41 22 minutes, 41 seconds powerful highquality decisions at a scale. Let me now come to what we believe is the most important strategic 22:49 22 minutes, 49 seconds milestone in this transformative transformation journey. While most institutions today are consume consumers 22:57 22 minutes, 57 seconds of AI, they integrate third party LMS layer workflows on top and position that is transformation. Capri has moved into 23:05 23 minutes, 5 seconds a different category. We have built and deployed our own specialized small language model SSLM that is domain 23:13 23 minutes, 13 seconds trained model purpose built for financial services use cases in India and already operating in production for collections communication across voice 23:22 23 minutes, 22 seconds and messaging channels because it runs within a controlled closed loop environment. It deliver our critical 23:29 23 minutes, 29 seconds properties simultaneously that is low latency, high domain accuracy, zero external data leakage and near zero 23:38 23 minutes, 38 seconds hallucination risks. Equally important, every output is auditable, explanable and aligned with regulatory expectation. 23:48 23 minutes, 48 seconds This is not an incremental layer on top of existing system. It is a fundamental shift in how intelligence is created, 23:56 23 minutes, 56 seconds controlled and deployed within the organization. 24:00 24 minutes I can now say that capri technology and AI has become a mode and not merely a tool. 24:07 24 minutes, 7 seconds On the ESG front, I am pleased to share that our ESG practices have been recognized by leading global independent 24:14 24 minutes, 14 seconds rating agencies including S&T global and morning star system analytics. 24:20 24 minutes, 20 seconds Capri Global achieved an SNP ESG score of 70 ranking 20th globally within its industry and seventh in the Asia Pacific 24:30 24 minutes, 30 seconds region. The highest announce our NBFC peers. We've also been recognized in the S&P global sustainability yearbook is 24:38 24 minutes, 38 seconds the highest scoring NBFC in its category receiving the prestigious industry mover award. Further, the company has 24:47 24 minutes, 47 seconds established a sustainable financing framework independently validated by sustainable pitch 24:55 24 minutes, 55 seconds through a second party opinion rated good and has been assessed as low ag risk by morning stall sustain. These 25:03 25 minutes, 3 seconds ratings place places us firmly among the leaders in ESG practices within the NBSC sector and reflect our adherence to globally benchmark standards. 25:13 25 minutes, 13 seconds Importantly, these assessments are based on publicly available independently verified data reinforcing the strength, 25:21 25 minutes, 21 seconds transparency and resilience over operating models. 25:25 25 minutes, 25 seconds Before we open the floor for questions and answers, let me sum up. We delivered a strong performance in FI26 with 25:32 25 minutes, 32 seconds healthy AUM growth across our key lending segments supported by a diversified and predominantly retail 25:39 25 minutes, 39 seconds secure portfolio. Profitability improved during the year driven by changing mix to high yield products, improving 25:46 25 minutes, 46 seconds margin, a strong growth in febased income and operating leverage from existing branch network while asset quality remain resilient with a strong 25:55 25 minutes, 55 seconds capital position and continued investment in technology and distribution. We are well positioned to scale efficiently and are confident of 26:03 26 minutes, 3 seconds achieving our AUM target of 55,000 crores and sustainable return on average equity of 16% to 18% and return on 26:11 26 minutes, 11 seconds average assets to 4 to 4 and a half% by FI28. We shall now be happy to take questions. 26:29 26 minutes, 29 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on 26:36 26 minutes, 36 seconds get touchstone telephone. If you wish to remove yourself from the question cube, you may press star and two. Participants 26:44 26 minutes, 44 seconds are requested to use handset while asking a question. 26:48 26 minutes, 48 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 26:55 26 minutes, 55 seconds Your first question is from the line of Ishan Gupta from Choice Institutional Equities. Please go ahead. 27:03 27 minutes, 3 seconds Yeah. Hi sir, good afternoon. So my first question is regarding our AUM mix gold mix is already reached 46%. As of 27:12 27 minutes, 12 seconds last quarter we were targeting around 45% gold mix. Uh so what would be our target uh for the golden mix? 27:23 27 minutes, 23 seconds Yeah, thank you. So, gold loan mix looks like uh the way we are operating opening more branches gold loan mix can be reach about 50%. 27:34 27 minutes, 34 seconds Got it. Got it. And as of last quarter you mentioned that uh you were going to uh go to RBI to seek permission to open 27:42 27 minutes, 42 seconds new gold loan branches but in RBI in prep policy have done the requirement to take the permission. So what what is the 27:51 27 minutes, 51 seconds target for uh new branch addition gold loan branch addition over the next two years. 27:58 27 minutes, 58 seconds So next two years we would like to add about 7 700 to 800 branches including gold loan. Majority will be the gold 28:05 28 minutes, 5 seconds loan branches and now as you rightly said we don't require any permission. So that will make us plan in a manner that 28:14 28 minutes, 14 seconds we will be able to those branches in a very time frame manner. This year we should be able to add about 350 branches 28:21 28 minutes, 21 seconds in gold loan alone and all these branches should be operational within this uh financial year. 28:29 28 minutes, 29 seconds Got it. Um our yields on gold loan have again dropped sequentially by 90 bits. 28:34 28 minutes, 34 seconds Last quarter we were targeting our 18% gold loan year. So what would be the sustainable yield for the gold loan segment and overall blended yield? 28:46 28 minutes, 46 seconds So if you look at this growth have happened largely because we also followed a high co- lending in BA book 28:54 28 minutes, 54 seconds and in that we have decided that to capture the market and also to open the new market we lower the yield but we are 29:02 29 minutes, 2 seconds able to do downell through the co- lending route. So meeting those banks criteria and some of the customer being whom we would not otherwise lend we 29:11 29 minutes, 11 seconds decided to land uh in the co-ending scheme and overall it is a accur overall 29:20 29 minutes, 20 seconds uh profitability and contribution per branch while the yield has gone down that is compensated by much higher volume growth. 29:29 29 minutes, 29 seconds So sir but uh the pole ending aum in the gold loan segment has reduced frequently from 39 odd,000 to 31%. 29:37 29 minutes, 37 seconds So going forward for specifically for gold loan what would be the target in terms of coending. 29:44 29 minutes, 44 seconds So I think a company between the DA and coending it will remain in the range of 20% is the target. 29:54 29 minutes, 54 seconds That is overall 20 to 25%. 29:56 29 minutes, 56 seconds Yes. No 20%. Not 20% 20% overall will remain in the coal lending in DA across mix of all MSME gold and housing. 30:09 30 minutes, 9 seconds Understood. And my last question was regarding the cost of funds. So last quarter we said that we will be 30:16 30 minutes, 16 seconds targeting a reduction of 20 to 25 basis over the next year. But in the quarter itself we have witnessed a reduction of 18 to 20 bits. So is there a possibility 30:25 30 minutes, 25 seconds of further reduction and if yes uh how much over the course of next two years? 30:34 30 minutes, 34 seconds So, so overall basis uh cost of fund have come down because we also change the mix of borrowing by including the 30:44 30 minutes, 44 seconds debentures and commercial paper and I think this year uh looking at the 30:51 30 minutes, 51 seconds interest rate hike might happen the post election and other things I think we should be able to do about 10 to 20 basis this year we are not expecting 31:00 31 minutes much cost of borrowing go down but even though we do 20 basis that will be uh very good from our perspective. 31:07 31 minutes, 7 seconds So for so exit of around 9 to 9.1%. 31:11 31 minutes, 11 seconds For the year 9% conservatively you can consider 9%. 31:16 31 minutes, 16 seconds And for 28 any further reduction 28 I think it will also we expect our some point of time credit rating upgrade 31:25 31 minutes, 25 seconds to happen and that will be in addition to this uh rate reduction. If the credit rating happens in next 6 to 9 months 31:32 31 minutes, 32 seconds which we expect soon in that case uh the further cost of fund will go down by another 20 basis. 31:40 31 minutes, 40 seconds So I would like to add in our last question. So our credit sustainable credit cost could be 6 or 7% means uh 31:48 31 minutes, 48 seconds for the year because for the quarter it came at8%. 31:53 31 minutes, 53 seconds Ah so sustainable uh our credit cost will remain by and large in the range of 7. This increase has happened because we 32:01 32 minutes, 1 second have taken the management overlay uh is guided by a board and we are very conservative that way. So we taken about 32:09 32 minutes, 9 seconds 16 cr rupees additional management uh overlay uh due to macroeconomic environment and uh barring that if you 32:19 32 minutes, 19 seconds look at our asset quality it has been best in the quarter in the year. So and the almost majority of the uh provisions 32:28 32 minutes, 28 seconds have also come because of the new loan book. So there's no slippage it's just happened. 32:38 32 minutes, 38 seconds Got it. All the best for the future. Thanks. 32:43 32 minutes, 43 seconds Thank you. A reminder to all participants that you may press star and one to ask question. 32:50 32 minutes, 50 seconds The next question is from the line of Sidesh from PL Capital. Please go ahead. 32:59 32 minutes, 59 seconds Hi. Uh am I audible? Yes sir. Hello. 33:03 33 minutes, 3 seconds Hi. Uh sources just wanted to understand on the car loan front. So what is the strategy to monetize and uh what are the 33:10 33 minutes, 10 seconds plans for starting other products uh in that entity? 33:15 33 minutes, 15 seconds So currently car loan is a completely distribution uh business. We are currently uh distributing the leads 33:25 33 minutes, 25 seconds generated by our team with about 12 plus uh institution and partner banks and uh 33:33 33 minutes, 33 seconds in the times to come we'll add the more product like used car, credit card, personal loan and mortgages. Uh over the 33:42 33 minutes, 42 seconds period of next three to four years. This year we'll be adding the used car and the advantage will be the same supervisory team and team of 1,800 33:50 33 minutes, 50 seconds people will be able to drive the same business. So that cost allocation will happen on the higher revenue and next 33:57 33 minutes, 57 seconds year we will be able to see that about 20 cr rupees of profit is able to deliver by the uh car loan entity alone 34:05 34 minutes, 5 seconds and idea is and target is the next four five year this 20 cr has become to significant amount of 60 70 cr rupees of 34:13 34 minutes, 13 seconds income which is coming purely from the fee income. Uh so in that direction this year we adding another product to use car loan distribution through our partner banks. 34:27 34 minutes, 27 seconds Understood. And uh how do you see AUM mix changing at the company level? 34:33 34 minutes, 33 seconds So as of now EU mix is about 46% gold. I think gold will become about close to 50% and rest of the three segment of uh 34:43 34 minutes, 43 seconds MSME housing finance construction finance will range between 16 to 18% each. 34:55 34 minutes, 55 seconds Okay. And uh so on lastly uh can you help me with your AUM ro and roe target 35:02 35 minutes, 2 seconds for FY27 in terms of guidance? 35:07 35 minutes, 7 seconds So as I said in my opening remark also our uh guidance for the FI27 our aim 35:14 35 minutes, 14 seconds will be to achieve a RO about 4% and ROE not less than 16%. 35:25 35 minutes, 25 seconds Sir uh that's it from my side wishing you all the very best. Thank you sir. 35:31 35 minutes, 31 seconds Thank you. The next question is from the line of Harpik Dhra from Chromo Credit Advisor. Please go ahead. 35:43 35 minutes, 43 seconds Hello. Uh good evening sir. Am I audible sir? Just thank you so much for uh taking this question. Just wanted to understand the strategy you know apart 35:52 35 minutes, 52 seconds from gold loan on the other three verticals MSMU, HSC and construction finance. how aggressive are we planning 35:59 35 minutes, 59 seconds to grow grow these other three verticals and what can be the growth expectations I agree that you know 16 to 18% is the 36:06 36 minutes, 6 seconds tentative mix but uh but just wanted to understand that how aggressively will these three grow over the next two years 36:16 36 minutes, 16 seconds so individually I think these segment will also grow in the range about MSM will grow in the range about 20 25% 36:24 36 minutes, 24 seconds construction finance will also grow in the range about 25 to 30% and housing will also grow in the 25 to 30%. So 36:32 36 minutes, 32 seconds overall if you look at our business mix is designed in a manner to grow in tandem with overall growth. Gold have 36:39 36 minutes, 39 seconds done wonderfully well because gold price increase also helps in the faster growth. So we assume that price remain 36:46 36 minutes, 46 seconds stable. We should be able to grow all the segment together. Gold can still rise more because there are lot of uh 36:53 36 minutes, 53 seconds garage addition also happening but all other segment will rise in the range about 25% to 30%. 37:02 37 minutes, 2 seconds Got it. Thank you. 37:08 37 minutes, 8 seconds Thank you. The next question is from the line of Suani Singh from SA Capital. Please go ahead. 37:15 37 minutes, 15 seconds Hello. Hi. Good afternoon. Uh I wanted to understand how do you see origination growth trending in the car loan segment. 37:29 37 minutes, 29 seconds So car loan if you see we have seen about 18% growth. We expect our car loan will continue to grow in the range of 12 37:38 37 minutes, 38 seconds to 15% year on year and uh next coming year our more focus will be improving the margins rather than the volume growth alone. 37:47 37 minutes, 47 seconds FI26 we originated about uh 11,910 cr and which was up by 13% yearon year. 37:57 37 minutes, 57 seconds Okay. Okay. Uh also with pressure on C margins despite higher growth volume where do you see margin stabilizing and profitability settling? 38:12 38 minutes, 12 seconds Uh you are asking about the car loan or overall the overall 38:18 38 minutes, 18 seconds so overall we clearly see there are two things one is the operating scale is kicking in so that efficiency is coming 38:26 38 minutes, 26 seconds in where the cost income ratio is coming down and our overall efficiency is going on because of a technology part as well 38:35 38 minutes, 35 seconds and another efficiency I would say that golden branches the old branches which has grown growing this is already uh 38:43 38 minutes, 43 seconds delivering the high profit because break even point is long back is crossed and more volume the per branch grows the 38:50 38 minutes, 50 seconds more profitability improve in the gold loan segment as well. So current our branch per about 17 cr and we make break 38:57 38 minutes, 57 seconds in about 5 cr rupee. I think per branch union basis we are among the top three players in the country and that speaks 39:06 39 minutes, 6 seconds our profitability of the branch. So I think gold loan business will start delivering the higher profitability. 39:13 39 minutes, 13 seconds uh this is the per branch in the coming year and as far as the MSNE uh and home 39:20 39 minutes, 20 seconds loan is concerned home loan have achieved a base of about 7,500 so operating scale will kick in there 39:28 39 minutes, 28 seconds also and their margin will significantly improve in the coming year MSM is already stabilized MSN margin will 39:35 39 minutes, 35 seconds remain stable on the similar pattern what was in the current years okay thank you so much sir 39:43 39 minutes, 43 seconds Thank you. A reminder to all participants that you may press star and one to ask question. 39:50 39 minutes, 50 seconds The next question is from the line of Prince Chri from Prince World. Please go ahead. 39:57 39 minutes, 57 seconds Yeah. Hi uh sir can you share more light on what are the uh changes of RBI for the new guidelines of co-ending and uh 40:06 40 minutes, 6 seconds how this will impact our growth for a couple of quarters. 40:14 40 minutes, 14 seconds So RBI guideline in the co- lending comes on the part of one is more clarity. Second on the loan of 40:23 40 minutes, 23 seconds moratorium they have advised that interest acured should be included in the LTB and third the income assessment 40:31 40 minutes, 31 seconds of the customer above loan of uh 2A 50,000 should be done. So uh these are 40:39 40 minutes, 39 seconds being implemented across our co- lending partners and uh technology integration will take some time. So we expect the 40:47 40 minutes, 47 seconds company to resume at the full volume with the co- lending partners in the quarter of uh July to September. This by 40:56 40 minutes, 56 seconds June I think most of the player will go live. Couple of players have already gone live and the rest of the partners 41:03 41 minutes, 3 seconds will go live by the next quarter. So I think the full volume we'll be able to see from the uh September quarter. 41:20 41 minutes, 20 seconds Thank you. The next question is from the line of Samia from Nirva Capital. Please go ahead. 41:29 41 minutes, 29 seconds Hello. Good evening. Thank you so much for the opportunity. I just have couple of questions. 41:35 41 minutes, 35 seconds Starting with what is the strategic rational behind entering capital market and how do you see this contributing to P income? 41:51 41 minutes, 51 seconds Yes. fixed income. Uh since we being NBFC always maintain a high liquidity in 41:58 41 minutes, 58 seconds our treasury and some of those treasury most of the time remain in the negative 42:04 42 minutes, 4 seconds carry because we put the money in the debt mutual fund where negative carry sometimes even two and two and a half to 3%. 42:13 42 minutes, 13 seconds Second that we have decided to start this vertical where some part of the book we will maintain in the treasury 42:20 42 minutes, 20 seconds operation by buying the bond and down selling them and also helping some of 42:27 42 minutes, 27 seconds the issuer to raise a bond from the bond market by managing their publications. 42:33 42 minutes, 33 seconds So it will contribute uh to the fee income as well as also to reducing our negative carry in our treasury income. 42:42 42 minutes, 42 seconds So it will incidental to what we are doing today and I think next year you will see that once we get this category 42:52 42 minutes, 52 seconds applied and we we are we have been told by that by end of June we can have that 43:00 43 minutes coming in but target income target in the range about 40 to 50 cr rupes growth level at net 43:08 43 minutes, 8 seconds level it will be in the range about 20 to 25 cr rupees. 43:14 43 minutes, 14 seconds Okay sir. Got it. And secondly, what is the current scale of revenue contribution from fixed income and bond related activities? 43:26 43 minutes, 26 seconds So bond related activity uh the contribution uh is likely that it 43:33 43 minutes, 33 seconds reduces the negative first. So if we mark about average 600 to 800 cr we 43:40 43 minutes, 40 seconds booked remain and we expect to reduce almost 3% negative carry on this portfolio. So it helps contributing 43:49 43 minutes, 49 seconds indirectly about 25 cr of income to the bottom line. 43:57 43 minutes, 57 seconds Okay sir. Thank you so much sir. That's it from my side. 44:02 44 minutes, 2 seconds Thank you. A reminder to all participants that you may press star and one to ask question. The next question 44:10 44 minutes, 10 seconds is from the line of Kushal, an individual investor. Please go ahead. 44:20 44 minutes, 20 seconds Hello. Yes sir. You audible? 44:25 44 minutes, 25 seconds Yes. uh since we are expanding a lot of branches currently we have 1400 branches and uh those old branches are going to 44:33 44 minutes, 33 seconds become efficient in next year uh and our target is around 700 branches what is 44:39 44 minutes, 39 seconds the PA guidance we are giving for FI27 44:51 44 minutes, 51 seconds so we have given the pad guidance of next year FY27 about 1,300 cr. 44:58 44 minutes, 58 seconds 1,300. Okay. Thank you. 45:07 45 minutes, 7 seconds Thank you. The next question is from the line of Amir Kandar from HDSC. 45:15 45 minutes, 15 seconds Please go ahead. Hello sir. Am I audible? Yes. Yes, you are audible. 45:23 45 minutes, 23 seconds No sir. My question is uh it can uh give like the LTVs on the on book for the 45:30 45 minutes, 30 seconds bold loss. So we have the disbox LTVs but if you can provide the LTVs on the uh bones which are on the book 45:39 45 minutes, 39 seconds so portfolio level LTV is about 66%. 45:45 45 minutes, 45 seconds And on the new disinvestment portfolio LTV is about 70%. Okay. 45:53 45 minutes, 53 seconds and on the overall amum guidance. So I think previous quarter we had said we will be doing around 50 55,000 ks of uh 46:02 46 minutes, 2 seconds aum by fi 28. So is there any update on that number because I think what we have 46:08 46 minutes, 8 seconds said said uh as a target for F26 we have surpassed that. So uh is there any uh 46:15 46 minutes, 15 seconds upward guidance on the AM stream uh and also in the overall so you have mentioned you know individually MSME 46:24 46 minutes, 24 seconds would grow between 20 to 25 and uh construction finance and housing would grow grow between 25 to 30. So in this 46:32 46 minutes, 32 seconds kind of a mix how do you see the gold on top of growing because we are you know adding branches. So how do you see that also growing if you can with that? 46:43 46 minutes, 43 seconds Yeah. So uh overall growth you are targeting conservatively 25%. 46:50 46 minutes, 50 seconds And uh we are giving a guidance of 46,000 cr by end of FY27 and about 57,000 cr by FY28. 47:01 47 minutes, 1 second So we revise the FI28 guidelines by about 2,000 cr and uh age uh gold loan 47:08 47 minutes, 8 seconds is concerned you are rightly said that yes we are adding more branches. So gold loan proportions overall uh you may grow gold loan will grow in the range of 47:17 47 minutes, 17 seconds about 25 to 30%. So overall growth may may remain in 25 to 30% range but 47:23 47 minutes, 23 seconds conservatively we are saying 25%. and go within that segment will go little higher because we are adding more branches as well. 47:34 47 minutes, 34 seconds Okay. Thank you. 47:40 47 minutes, 40 seconds Thank you. A reminder to all participants that you may press star and one to ask question. The next question 47:48 47 minutes, 48 seconds is from the line of Keshi Dyia from Sentra Insight. Please go ahead. 47:54 47 minutes, 54 seconds Yeah, thank you for the opportunity. Uh so since the cost of borrowings are declining, how much scope remains 48:01 48 minutes, 1 second further for expansion and so cost of borrowing further decline. uh 48:12 48 minutes, 12 seconds I said earlier also that by the year end we are targeting about 20 basis point 48:19 48 minutes, 19 seconds and we uh another 20 basis point can also be achieved further uh from the 48:27 48 minutes, 27 seconds rating upgrade uh from the 12 months from the rating upgrade happen. So I think we expect next 6 months some 48:34 48 minutes, 34 seconds positive views on that but however it depends on various other factor and it doesn't remain in our complete control 48:41 48 minutes, 41 seconds but uh we hope that uh all the environment and macro environment remain 48:48 48 minutes, 48 seconds positive we we can expect and aim for that. 48:53 48 minutes, 53 seconds Okay. Uh and do we see any impact of recent macro situations on MSN book? 49:00 49 minutes uh so far we have not seen any deterioration in our collection efficiency or asset quality. So uh uh we 49:08 49 minutes, 8 seconds have not seen any signage as far as till now it's concerned. 49:14 49 minutes, 14 seconds Okay. Uh and also the the decline in capital adequacy appears mainly driven by subsidy investment. So how do we uh 49:23 49 minutes, 23 seconds think about it like what is what will be the capital allocation going forward? 49:31 49 minutes, 31 seconds So going forward we will uh increase the DA coal lending that will conserve some 49:39 49 minutes, 39 seconds part of capital and uh some point of time we required we will raise P2 capital also uh to shore up the capital 49:48 49 minutes, 48 seconds base. So uh in nutshell about 18 to 24 month our aim is to effectively utilize 49:57 49 minutes, 57 seconds all the downelling tool of DN lending and and also raise tier 2 capital so uh capital requirement is taken care of. 50:09 50 minutes, 9 seconds Oh yeah. Okay. Thank you. That's it from Thank you. The next question is from the line of Pel Sharma from PG Capital. 50:22 50 minutes, 22 seconds Please go ahead. 50:25 50 minutes, 25 seconds Uh hello. Uh I just want you to put some highlight on the strategic intent like uh what is behind the proposed international bond issuance. 50:36 50 minutes, 36 seconds So international bond issuance with the purpose to diversify your 50:44 50 minutes, 44 seconds resources of borrowing and uh it will give us one of more avenue to borrow the money and 50:52 50 minutes, 52 seconds it can be done every year. We uh being into lending business always require 50:59 50 minutes, 59 seconds uh the debt capital and which is one of the major raw material. So I think it is just opening that avenue and we have got 51:07 51 minutes, 7 seconds the international rating done. Uh but we are little cost conscious in terms of our cost of funds and currently because 51:15 51 minutes, 15 seconds of the macroeconomic environment and west Asia crisis the hedging cost has substantially gone up. So we are waiting 51:23 51 minutes, 23 seconds that to settle down and hoping that happen in next 2 3 4 months whenever it 51:29 51 minutes, 29 seconds happens we intend to reach and access the market depending on the underlying situation. 51:39 51 minutes, 39 seconds Great. Great. Uh in addition with that question, I have one more question that what are the key drivers like behind the 51:46 51 minutes, 46 seconds improvement uh in GNPA and NMPA during the quarter? 51:52 51 minutes, 52 seconds So it is of course uh collection efficiency because lot of emphasis is put not only on the technology but also 52:00 52 minutes on the ground by um right hiring right push right training 52:07 52 minutes, 7 seconds program right AI enabled videos on various front and customer communication. So that has helped 52:15 52 minutes, 15 seconds together across all verticals to improve our collection efficiency and hence our GMP netp numbers are are like that. 52:26 52 minutes, 26 seconds Okay. Okay. Thank you so much and all the best. 52:31 52 minutes, 31 seconds Thank you. The next question is from the line of Ksh from an individual investor. 52:38 52 minutes, 38 seconds Please go ahead. Good afternoon. 52:43 52 minutes, 43 seconds So my question is currently we we are at 70% uh loan to value ratio. So what if 52:51 52 minutes, 51 seconds the gold prices crash by uh 10 to 15% and how would uh you manage that? 53:01 53 minutes, 1 second So I think you are very uh very relevant question in terms of current volatility. 53:07 53 minutes, 7 seconds So golden prices will not fall in one single day. So assuming that golden 53:13 53 minutes, 13 seconds prices fall 4% and customer LTB reach by to that exchange 53:21 53 minutes, 21 seconds either we give the customer ask him to additional money to bring back his loan 53:29 53 minutes, 29 seconds to value within the norm of 75%. or he has to give additional gold to pledge to 53:36 53 minutes, 36 seconds bring the LTV back in the norm and selling which we give him a notice that 53:43 53 minutes, 43 seconds within 14 days if we don't full make those goods margin goods we have a right 53:49 53 minutes, 49 seconds auction the gold and recover money. So uh whenever it happens on ground do collection calling and able to recover 53:58 53 minutes, 58 seconds the money for example on the 1 lakh rupees 4% gold have fallen we have to recover 4,000 rupees and the jewelry 54:08 54 minutes, 8 seconds worth about five five and a half,000 rupees jewelry and I think a mix of those are able to do in most of cases 54:16 54 minutes, 16 seconds and in case the customer don't do as I said we we have right to auction the gold and recover So you hope the world will not fall 10 15% in single day. 54:27 54 minutes, 27 seconds Yeah sir. Yeah I just uh asked you a hypothetical question but um yeah thank you sir. 54:37 54 minutes, 37 seconds Thank you. The next question is from the line of Vignesh Ayar from Sequin Investment. Please go ahead. 54:45 54 minutes, 45 seconds Uh hello sir. Uh just one question from my side. uh so I wanted to understand what is the kind of growth that you can 54:53 54 minutes, 53 seconds see on the insurance uh income side and uh the income side as a whole uh you know in FI2. 55:07 55 minutes, 7 seconds So I think insurance distribution is in purely in line with our AUM growth targets. So insurance income should also 55:15 55 minutes, 15 seconds grow in the tenum of about 25 to 30%. 55:23 55 minutes, 23 seconds Uh and overall the field income uh I mean all the non-inest income will grow about 12 to 15%. 55:34 55 minutes, 34 seconds Insurance in income will grow in the line with our regime growth of 25 to 30%. and co-ending income uh I would say 55:43 55 minutes, 43 seconds that it will remain more or less same of the last year because coending now DA for one quarter will be little lower 55:51 55 minutes, 51 seconds side so uh there may not be any growth in the coending income but that will be compensated by uh the DA so more or less 55:59 55 minutes, 59 seconds it will remain the same okay yeah thank 56:09 56 minutes, 9 seconds Ladies and gentlemen, we take this as a last question. I now hand the conference over to Mr. Rajes G for closing comments. 56:36 56 minutes, 36 seconds Raja please go ahead. 56:38 56 minutes, 38 seconds I thank you for participating in the earning calls today. Should you have any question you can reach out to us or to 56:45 56 minutes, 45 seconds our IR advisor and we shall be happy to answer your queries. I reiterate we are on track to achieve an annual r of 56:53 56 minutes, 53 seconds 55,000 cr by fi 28 with return on average equity of 16 to 18% and return on average assets of 4 to 4 and a half%. 57:03 57 minutes, 3 seconds Thank you once again and have a happy week week ahead. Thank you. 57:12 57 minutes, 12 seconds Thank you on behalf of MUFG. That concludes this conference. Thank you for joining us. You may now disconnect your lines.