Dar Credit & Capital Ltd — Q3 FY26

Dar Credit & Capital Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=XFMdQKkb5M4 Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to D Credit and Capital Limited Q3 and 9 months FY26 earnings conference 0:09 9 seconds call hosted by Equidex Advisor Private Limited. As a reminder, all participants flying will be in the listenon mode and 0:17 17 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:24 24 seconds signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over 0:33 33 seconds to Miss Chamney from Equex X Advisor Private Limited. Thank you and over to you. 0:41 41 seconds Thank you. A very good afternoon to everyone. I welcome everyone to the Q3 and 9 months F26 earnings call of that 0:49 49 seconds credit and capital limited. From management team we have with us Mr. Jinta Balik Chief Executive Officer Mr. 0:57 57 seconds Sit chief financial officer. We will have have opening remarks from the management team post which we will open 1:04 1 minute, 4 seconds the floor for today. With that I would like to hand over the call to the management for opening remarks. Over to you sir. 1:13 1 minute, 13 seconds Uh good afternoon ladies and gentlemen. 1:15 1 minute, 15 seconds Uh this is Jonathan Bolik, CEO of Dark Creditton Capital Limited and uh I am 1:23 1 minute, 23 seconds here uh to present uh on Q3 and 9 a.m. 9 1:29 1 minute, 29 seconds months FY26 earnings earnings. Uh thank you uh for joining us today for this 1:38 1 minute, 38 seconds earning call of uh Darington Capital Limited. We sincerely appreciate the continued support and interest from our investors, analysts and stakeholders. 1:51 1 minute, 51 seconds This third quarter and the 9 months period of FY26 marked a phase of strong acceleration for our company. Our 1:59 1 minute, 59 seconds performance reflects disciplined credit underwriting and digital lend operating efficiency and a sharp focus on the 2:07 2 minutes, 7 seconds profitability without compromising the asset quality. 2:12 2 minutes, 12 seconds Dton Capital Limited is as you know is RBI registered non-banking financial company and has a vintage of over three 2:21 2 minutes, 21 seconds decades of lending experience. It is headquartered in Kolkata and the company has base a strong foundation in retail 2:29 2 minutes, 29 seconds and MSME lending by combining uh combining the analytics and driven out trades appraisal with the technology 2:38 2 minutes, 38 seconds enabled origination and collections. Our longstanding governance and standards which and prudent risk culture remain 2:48 2 minutes, 48 seconds central to our strategy and uh during Q3 of FY26 the company delivered a very 2:55 2 minutes, 55 seconds powerful performance financial performance the income for this quarter stood at uh 1260.90 3:05 3 minutes, 5 seconds lakh and profit uh uh profit before tax is uh coming about 355.25 3:15 3 minutes, 15 seconds lakhs and net profit is 252.07 07 lakhs and we had a we had a cloth of earing 3:24 3 minutes, 24 seconds per share quarterly not annualized at 1.77. Notably the pass margin is 3:31 3 minutes, 31 seconds expanded to 20% the highest for last five quarters and this reflects a very strong and improved deliverance and cost 3:39 3 minutes, 39 seconds discipline and for the 9 month ended in December 25 the performance uh was uh uh 3:49 3 minutes, 49 seconds was see 35 3562 lakhs and profit before tax reached at 870 3:58 3 minutes, 58 seconds 87 70 lakhs and net profit stood at 704 lakhs and earning per share comes about 5.27. 4:10 4 minutes, 10 seconds Importantly uh the 9 months pack has already crossed the 85% of the full year 4:17 4 minutes, 17 seconds 25 uh full year 25 patch positioning us in a strong strong lead to deliver the 4:24 4 minutes, 24 seconds record annual profitability. we are sure to sure to cross our estimate and uh in 4:31 4 minutes, 31 seconds Q4 because uh the Q4 uh when we started in January already January this January 4:40 4 minutes, 40 seconds uh discussment and January uh uh data points are very very encouraging and uh 4:48 4 minutes, 48 seconds we we are uh we think that we should uh give a good uh show in Q4. For our loan 4:57 4 minutes, 57 seconds book expansion remains responsible and calibrated. Correction efficiency continues to be remain strong while our 5:04 5 minutes, 4 seconds digital transformation initiative has reduced the turnaround time and cost to serve significantly which car at 40 uh 5:14 5 minutes, 14 seconds which car at 43.84 is we remain very well capitalized to support our sustainable growth going 5:22 5 minutes, 22 seconds forward. the broader uh credit environment continues to present meaningful opportunities and 5:30 5 minutes, 30 seconds particularly the retail retail and MSM segments uh with stable cost to funds and disciplined risk management and 5:37 5 minutes, 37 seconds digital underwriting capabilities. We believe we are in a well positioned to protect margin while pursuing the growth 5:47 5 minutes, 47 seconds growth as we enter the final quarter. we do uh so in a strong momentum as I have 5:55 5 minutes, 55 seconds already mentioned the ample liquidity and the focus strategy aiming delivering the consistent high quality earnings and 6:04 6 minutes, 4 seconds uh I am now overing to our CFO sake to put some more lights on the key 6:12 6 minutes, 12 seconds fact of the company uh performance in uh this uh uh 6:21 6 minutes, 21 seconds Good afternoon everyone. I'm Pak CFO of dark and capital limited. So I'm here to highlight some key facts about the 6:30 6 minutes, 30 seconds financial statement like the the total asset size of the company has been has 6:36 6 minutes, 36 seconds crossed about 265 cr out of the the total loan books has crossed around 2 6:44 6 minutes, 44 seconds 200 CR of that of which the borrowing amount is around 160 cr and the 6:54 6 minutes, 54 seconds and the G and the G&P percentage stood at uh 100 1.9% 7:02 7 minutes, 2 seconds approximately which and the NNPA is is less than 1% that can be amounts to 96%. 7:11 7 minutes, 11 seconds And the we have also there is a com there is a assistance of the manage manage manage manage book comprising of 7:20 7 minutes, 20 seconds around 11 11. So the so the total comprehension of the loan book size 7:28 7 minutes, 28 seconds including the own books and the manage book comp is totaling to 213 cr. 7:36 7 minutes, 36 seconds Now I my now I over to Mr. 10 total. 7:47 7 minutes, 47 seconds Uh if we take the breakouts of the loan portfolio and loan portfolio out of 2020 7:54 7 minutes, 54 seconds 203 uh we had loans which is our niche product which gives us 82 crores uh by 8:03 8 minutes, 3 seconds volume and unsecured MSN is around 70 crores. 8:08 8 minutes, 8 seconds Secured portfolio is around 50 and managed portfolio is around 11 crores. 8:15 8 minutes, 15 seconds So total our uh loan loan book size is 230 and uh if I uh this is uh this is 8:26 8 minutes, 26 seconds our present position. Thank you once again for joining us and for your continued trust in Dark Edition Capital 8:33 8 minutes, 33 seconds Limited. We will now open to the floor for questions. 8:39 8 minutes, 39 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 8:46 8 minutes, 46 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 8:55 8 minutes, 55 seconds question. Ladies and gentlemen, they will wait for a moment while the question queue assembles. 9:08 9 minutes, 8 seconds The first question is from the line of push from P3 wealth management LLP. Please go ahead. 9:16 9 minutes, 16 seconds Yeah. Hi, a very good afternoon. The management has has delivered an impressive 20% impact margin this 9:24 9 minutes, 24 seconds quarter. Uh but however, I feel the ROE remains compressed at 7.5% despite a massive 43.84% 84% car crack. 9:35 9 minutes, 35 seconds So I just wanted to know if your management is planning further cap uh fund raising via LCDs or by substantial 9:44 9 minutes, 44 seconds allotment to meet the RBI deadline for the MOS. 9:50 9 minutes, 50 seconds Uh again some I couldn't hear you properly. 9:55 9 minutes, 55 seconds So my question was that because the fat margins are at like are near to 20%. And the class is at 43.84%. 10:06 10 minutes, 6 seconds Yes. But so the ratio is slightly unbalanced. 10:10 10 minutes, 10 seconds So are you guys planning for a fundraising uh like in the coming months or in the late 2026? 10:22 10 minutes, 22 seconds uh that is see our as per RBI guidelines our minimum requirement is 15%. Uh but where we are standing at around 43%. 10:34 10 minutes, 34 seconds So uh it's uh it's we are very capitalized per se so not uh anything 10:42 10 minutes, 42 seconds planned in the near future for fundraising. But if we require expand our base in coming future then board 10:50 10 minutes, 50 seconds will take a call on this but not at this moment in FY26 we have any plans for any fundraising 10:58 10 minutes, 58 seconds because we we are well capitalized progress. Okay. 11:04 11 minutes, 4 seconds Okay. But the but if the intent is like but if the intent is expansion so do you think uh like for the current leverage 11:14 11 minutes, 14 seconds already provides a significant headroom for that growth. So you that's why in in in that case we are 11:21 11 minutes, 21 seconds what we are doing we are uh we are issuing bonds NCD uh in the market in 11:28 11 minutes, 28 seconds the listed NCD uh for fundraising as well as we are tapping the PSU banks and 11:34 11 minutes, 34 seconds the big NPS for fundraising and uh since the capital uh our our present network 11:42 11 minutes, 42 seconds is around 100 cr plus so if we take the leverage also which is about 5 is to 1. 11:49 11 minutes, 49 seconds So we can borrow up to 500 crores that so that's not a issue. At present our borrowing is only 149 159 crores. So we had a big headroom for borrowing also. 12:00 12 minutes So we uh from the management side uh it's uh the fund new fund raising in FI26 is not in the cards. 12:10 12 minutes, 10 seconds Okay. Understood. Understood. Thank you so much. Thank you. 12:15 12 minutes, 15 seconds Thank you. Anyone who wishes to ask a question, you may press star and one. 12:20 12 minutes, 20 seconds The next question is from the line of Rahul Kotari from Grit Equities. Please go ahead. Hello. Can you hear me? Hello? 12:29 12 minutes, 29 seconds Yeah. Yeah, you are a sir. 12:31 12 minutes, 31 seconds First of all, congrats with the amazing result for December quarter and uh happy to hear your positive comments for coming future as well. uh can you please 12:40 12 minutes, 40 seconds help me further understand about your plan for FI27? What sort of growth can we expect in the in the coming FI27 and 12:49 12 minutes, 49 seconds uh also just coming on to the previous question asked by my colleague or your colleague uh would FI growth can occur without any further equity fund raise? 13:02 13 minutes, 2 seconds Uh thank you uh thank you for your uh wishes uh and your comments. uh FY27 we 13:11 13 minutes, 11 seconds are expecting uh uh this year uh this FQ4 we are expecting that our AM will be 13:17 13 minutes, 17 seconds closed around to 30 to 35 uh to 35 because we are now just wanted to we 13:25 13 minutes, 25 seconds thought that we as per our plan we could have we may add 30 to 35 crores in our 13:31 13 minutes, 31 seconds AIL uh AQ4 and for 13:37 13 minutes, 37 seconds FI27 7. Uh uh our our projected scheme will be that our balance sheet uh asset 13:46 13 minutes, 46 seconds will cross 300 cr plus and uh our uh our 13:53 13 minutes, 53 seconds projected will be 300 and uh uh 13:59 13 minutes, 59 seconds and borrowing will somehow around 250 100 cr will be added in the borrowing. 14:06 14 minutes, 6 seconds So uh and fat we will want to wish to maintain this fat growth and uh uh we 14:15 14 minutes, 15 seconds are expecting a good growth in the fat in 27 and uh it has also we thought that 14:22 14 minutes, 22 seconds it will increase by uh considerable amount. I cannot uh since the working is on for the next year project and all 14:31 14 minutes, 31 seconds this thing. So uh this is on the cards but what the initial indications are 14:37 14 minutes, 37 seconds there the our MIS shows the projected MS and all the things that we uh land up in 14:45 14 minutes, 45 seconds a growth of around up to 300 crores in 14:50 14 minutes, 50 seconds at the time by 20 March 23rd and the the 14:57 14 minutes, 57 seconds answer of the fresh equity I have already expressed uh our views of management point of views that we have 15:05 15 minutes, 5 seconds fairly capitalized uh and uh at present 100 plus network. So and with the only 15:13 15 minutes, 13 seconds 159 crores borrowing we had a big headroom for the new borrowings which mainly come out from the uh PU banks 15:22 15 minutes, 22 seconds which we have already pitched in for the fresh uh dates and also from the listed entity uh we are uh already raised 15:32 15 minutes, 32 seconds considerable amount in this in this financial year and already and al also had a plan of around 100 cr 100 to 125 15:40 15 minutes, 40 seconds crores. those LCD bonds uh in the coming years. So this will give us the ample funding for growth and we had a big plan 15:49 15 minutes, 49 seconds for expanding in Bihar, Pakistan and Rajasthan. So far as secured and unsecured MSM lending is concerned uh 15:58 15 minutes, 58 seconds because the priority priority we are in the favor of secured lending secured MSM 16:05 16 minutes, 5 seconds lending that is micro lab uh and uh new branches are expected in Bihar Hand and Rajasthan 16:14 16 minutes, 14 seconds for this MSME business. This will give the uh we feel that this will uh gives a good result and boost the performance of the company. 16:24 16 minutes, 24 seconds Thank you sir. Thank you for your elaborate explanation and happy to hear the aility of ample liquidity for growth coming forward. So just one more thing 16:32 16 minutes, 32 seconds somewhere in earlier presentations I guess I have seen a number of guidance of around 18 181 19 pack 18 18 cr or 19 16:40 16 minutes, 40 seconds pack for f27 I I don't want any confirmation but uh is that guidance near to our management expectation 16:50 16 minutes, 50 seconds uh maybe because we are already in the length of in the good length because we 16:59 16 minutes, 59 seconds are in the good track of achieving that in in the in the current year and hope we expect to see achieve in the FI27 17:08 17 minutes, 8 seconds also because we are in the track of achieving because even the margins which we have achieved in the January and the 17:15 17 minutes, 15 seconds now what and what we are heading currently so that will get boost that and give that profitability monthly we 17:24 17 minutes, 24 seconds hope that okay okay thank you thank that's it for 17:31 17 minutes, 31 seconds Thank you participants who wish to ask question you may press star and one at this time. The next question is from the 17:38 17 minutes, 38 seconds line of Jetani from STSC securities. Please go ahead. 17:45 17 minutes, 45 seconds Yeah, thank you very much for the opportunity and uh congratulations on pretty interesting results I would say and good afternoon. Am I audible? 17:54 17 minutes, 54 seconds Yeah. Yeah, you are audible. 17:56 17 minutes, 56 seconds Yeah. Thank you. Yeah. Uh so I would like to ask that which known segments were there for example the multiple or 18:04 18 minutes, 4 seconds unsecured MSN secured MSN that contributed most to this incremental growth in FY26. 18:12 18 minutes, 12 seconds uh after from the from the uh opening of this FY26 we had a detailed discussion 18:22 18 minutes, 22 seconds uh so taking into the consideration the market environment and the uh data points of the negative and positive 18:31 18 minutes, 31 seconds results of the various products in the market. We thought that the two products 18:37 18 minutes, 37 seconds will will be uh the uh our our prime uh focus. First of all the our niche 18:45 18 minutes, 45 seconds product that is the personal loan to the municipal employee and next one is uh secured. 18:53 18 minutes, 53 seconds And you can see if you see the growth rate of these two products are fundamental and in FY25 19:03 19 minutes, 3 seconds uh the we close the FY25 in loan to municipal employees around 76.5 crores 19:11 19 minutes, 11 seconds which at present now 82.5 cr. So you can find that there is a considerable growth in this uh segment. And another one 19:21 19 minutes, 21 seconds which is now really really our uh our prime focus area is the secured 19:29 19 minutes, 29 seconds enter that is micro lab and uh which has also got a good growth in from FY25 until now 19:38 19 minutes, 38 seconds in FY25 it was around 30 crores and as now it was around 50 crores. So already 19:45 19 minutes, 45 seconds in this 9 months we had a increase incremental in this uh in this area around 20 cr. So uh this shows that 19:53 19 minutes, 53 seconds there is a clear clear message to everybody to the uh to all my audience that 20:02 20 minutes, 2 seconds the company's pure focus in basically these two segments secured MSN and loans to minc employee because these two loans 20:11 20 minutes, 11 seconds are uh are really really structurable and these two loans shows a very very minimal NPA percentage. 20:21 20 minutes, 21 seconds didn't increase the percentage but at present but side by side we also cannot 20:29 20 minutes, 29 seconds ruled out unsecured mason loans also which also had a increment but uh not that level because this only we could 20:38 20 minutes, 38 seconds have added only 7 to 8 crores uh in this segment so uh uh this this these two are 20:45 20 minutes, 45 seconds the prime focus okay Okay, thank you sir and actually I was also coming on to the on this point 20:54 20 minutes, 54 seconds only of secured MSM loans will be yeah so secured MSM loans 21:01 21 minutes, 1 second sharply versus FY34 so what is driving this shift in portfolio sorry sorry again come back 21:10 21 minutes, 10 seconds yeah my question is see MSN loans have scaled sharply versus okay so driving 21:19 21 minutes, 19 seconds portfol Mix portfolio mix means 21:29 21 minutes, 29 seconds uh see so what are the drivers of this uh approach 21:38 21 minutes, 38 seconds driver for this secure growth is we uh we already planned our uh we aligned our 21:47 21 minutes, 47 seconds branches because when we open the new branches. We open the branches which are focusing those employees who are really 21:57 21 minutes, 57 seconds have the skill to do this type of business. So we hired people with uh the 22:05 22 minutes, 5 seconds with qualities who can sell this product and uh and also we have uh uh exclusive branches for uh this secure portfolio. 22:15 22 minutes, 15 seconds Apart from that uh our unsecure in our branches where we are doing the unsecured lending there also we uh 22:24 22 minutes, 24 seconds isolated or you can say we segregated our employees into secured and unsecured part that means 22:34 22 minutes, 34 seconds a bunch of employees who are doing the unsecured lending business doing the sourcing they are not doing the secure 22:42 22 minutes, 42 seconds sourcing. So in that way we uh we planned this uh secured secured lending um grow we ensured the secured lending 22:51 22 minutes, 51 seconds growth in that fashion. Uh that means we had we had a set of people who are having skills of uh sourcing these sort 23:00 23 minutes of products only right. So these are the basically driver for this because uh see uh in the current scenario where the 23:09 23 minutes, 9 seconds micro finance loans are struggling unsecured loans are struggling uh for 23:16 23 minutes, 16 seconds recovery we didn't face any uh any hardship in collecting our funds our 23:23 23 minutes, 23 seconds EMI in this segment uh which is reflected in our uh this uh collection 23:29 23 minutes, 29 seconds efficiency uh percentage Even the new recruitments which which we are currently heading to is from is from the 23:38 23 minutes, 38 seconds secured is for the secured business only and from the financial from from the secured financial services we are we are 23:46 23 minutes, 46 seconds we are engaging these employees so that we can onboard them and and and and give and give us new growth to this new vertical. 23:58 23 minutes, 58 seconds Okay. 24:03 24 minutes, 3 seconds Uh okay sir and uh and apart from this uh what is the customer acquisition trend currently and how is ticket size evolving across segment. 24:15 24 minutes, 15 seconds So uh customer acquisition trend is uh for unsecured it is not uh that high 24:22 24 minutes, 22 seconds growth rate but for secured part it's good and uh 24:29 24 minutes, 29 seconds and uh if you see the quantum train quantum range is for unsecured we had 24:36 24 minutes, 36 seconds starting it from 10,000 to two lakhs and max next three lakhs. So uh uh and for 24:43 24 minutes, 43 seconds secured it starts from 50,000 and it uh go up to 5 lakhs and in certain cases 24:50 24 minutes, 50 seconds with the permission of the committee sanctioned committee it may go up to six and six and a half. 24:59 24 minutes, 59 seconds Okay. Okay. So okay so that was all for ticket sizing and all right? Yes. Yes. 25:07 25 minutes, 7 seconds What steps are being taken to reduce the average cost of borrowing which are currently approximately 13%. 25:18 25 minutes, 18 seconds The the so the the the reason for the decrease in the overall cost of waring 25:24 25 minutes, 24 seconds is the is the introduction of the entities. Basically what we have done recently we have come up we have come 25:32 25 minutes, 32 seconds out recently with two entities of around 20 cr up to December which of which the coupon rate was around 12 to 12.5%. 25:42 25 minutes, 42 seconds Which tent amounts to lesser than the bank borrowings which comes around to 25:48 25 minutes, 48 seconds 13%. So that gives the that gives us quite reduction in the overall cost of borrowing. And in the previous year if 25:57 25 minutes, 57 seconds you see the rate was in in borrowing rate was a bit high. uh uh cost of funds 26:06 26 minutes, 6 seconds was bit high since uh uh you know uh the uh uh this entity route was not there 26:14 26 minutes, 14 seconds and a fresh capital introduction in this year from the ICO root uh gives the cost of borrowing uh checks the cost of 26:22 26 minutes, 22 seconds borrowing uh growth and a fac 26:28 26 minutes, 28 seconds that only the effect of this pumping of 25 those equity already start showing the result of the increase in the price. 26:41 26 minutes, 41 seconds Okay. 26:43 26 minutes, 43 seconds Okay. Are you seeing any kind of space specific geographies or or or something 26:49 26 minutes, 49 seconds around the bord couldn't understand? 26:58 26 minutes, 58 seconds Yeah. So my question is are you seeing any kind of effect in respective geography or some borrower 27:05 27 minutes, 5 seconds segments uh geographical segments 27:12 27 minutes, 12 seconds see uh the segments we are operating and the borrowers we are catering are not 27:18 27 minutes, 18 seconds that uh that sort of micro finance per say borrowers who are really really in the 27:27 27 minutes, 27 seconds in the in trouble for repaying the loans. But see our our our 27:34 27 minutes, 34 seconds borrower segment is basically the established established small business shop who had a visible income generating 27:43 27 minutes, 43 seconds activity not like micro finance per se and our uh our total underwriting 27:49 27 minutes, 49 seconds process was such uh such mixture of digital and 27:56 27 minutes, 56 seconds personal touch. So that we choose a borrower uh in a in a very very scaled 28:03 28 minutes, 3 seconds manner with a with a scoring approach with the digital 28:10 28 minutes, 10 seconds scoring approach with a manual uh manual uh manual 28:17 28 minutes, 17 seconds intervention with the PD. uh uh we had a two three types of PD to a borrower before we take a call uh to give the 28:26 28 minutes, 26 seconds loans and loans uh to that borrower or not. So uh and uh the KYC verification 28:34 28 minutes, 34 seconds is completely digitalized their income activity and income assessment is completely digitalized. So 28:42 28 minutes, 42 seconds all these uh all these uh test when passed then we we admitted that borrower 28:51 28 minutes, 51 seconds uh in our in our uh in our portfolio and we give the loan. So, so see uh uh we 29:00 29 minutes don't find any uh sort of difficulty in in this sourcing and uh sourcing this 29:08 29 minutes, 8 seconds sort of forward and you can see our collection efficiency is already it's it's very good and due to it that 29:16 29 minutes, 16 seconds sourcing part on point only right 29:23 29 minutes, 23 seconds just going back once loans rapid growth 29:29 29 minutes, 29 seconds loss has a risk profile by any means profile 29:37 29 minutes, 37 seconds risk profiling risk profiling of these segments. See the when we are moving to the tax four tax five cities in the in 29:46 29 minutes, 46 seconds these areas the when we are talking about the this secured loans in these type of borrowers uh the property is 29:56 29 minutes, 56 seconds playing a very big mindful game for them. So uh this the risk the risk 30:03 30 minutes, 3 seconds associated with this sort of followers got mitigated for this type of sentence to their 30:11 30 minutes, 11 seconds attachment to their property. EMI is coming very smoothly. This is one sort of mindful game. Mind game we are playing with them. uh we are playing 30:19 30 minutes, 19 seconds while uh this sort of uh mortgaging the property, mortgaging the assets, mortgaging their all uh marketing all 30:29 30 minutes, 29 seconds their other profit other assets and also when we are attaching all the borrowers 30:36 30 minutes, 36 seconds in that all the members of the family of the borrowers in our loan say as a 30:43 30 minutes, 43 seconds guaranter or as a co co-licant this also gives a mental uh such mental 30:51 30 minutes, 51 seconds uh I mean uh mental blockage to that person and uh keep them to be uh in this 30:59 30 minutes, 59 seconds uh repay the loan along time and uh this this basically a one mindful game we are playing uh we are associated with uh 31:08 31 minutes, 8 seconds playing with this borrowers and it is associated with the loan product. Uh uh this is one thought and another thought 31:15 31 minutes, 15 seconds is that since we are giving to the only income generating activities uh to those borrowers uh at least the income 31:24 31 minutes, 24 seconds generating part of those borrowers. So uh the uh that risk assessment 31:30 31 minutes, 30 seconds associated got mitigated uh primarily and we feel that uh in secured loans the 31:38 31 minutes, 38 seconds risk profiling is low very low so that in comparison to the unsecured part. 31:46 31 minutes, 46 seconds Okay so here thank you so much for the information. Uh yeah just last couple of questions from my side. Yeah. So how 31:55 31 minutes, 55 seconds does the management view give the optimal product mix over upcoming two to three years or four years maybe 32:04 32 minutes, 4 seconds uh optimal product mix will be your secured loan will be the higher say almost 40 to 40 almost 35 to 40% 32:14 32 minutes, 14 seconds will be the secured and your unsecured will be around 30 and balance remaining will be the personal loan will be 35. 32:23 32 minutes, 23 seconds Five and uh it will be 35 25 and 40. 32:31 32 minutes, 31 seconds Okay. Okay. Uh okay. Answer last one. 32:34 32 minutes, 34 seconds What is the provisioning buffer strategy going forward? Any the buffer strategies 32:40 32 minutes, 40 seconds here right now what what the provision has been done in the book I think. So it's it's almost totally as for the 32:50 32 minutes, 50 seconds what we had basically we have the we have made the enough provision and the company and the company has made the 32:57 32 minutes, 57 seconds sufficient provisions which is required so at so for the for the upcoming year if any provision is required so 33:05 33 minutes, 5 seconds management will take the decision for the so there is no other issuance with the 33:13 33 minutes, 13 seconds provisioning So as for the as for the requirement management will remain. 33:22 33 minutes, 22 seconds Okay. 33:23 33 minutes, 23 seconds Okay sir. Okay. So that was it from my side. Thank you so much for all the information and once again congratulations on the uh results. Thank you sir. 33:34 33 minutes, 34 seconds Thank you. Thank you so much. 33:37 33 minutes, 37 seconds Thank you. Participants who wish to ask a question you may press star and one at this time. The next question is from the 33:45 33 minutes, 45 seconds line of Sedat Shukla, an individual investor. Please go ahead. Good afternoon everyone. Uh sir. 33:54 33 minutes, 54 seconds Okay. Yeah. Uh sir, can you elaborate on how you differentiate landing model helps you access customer segment that remain under traditional banks? 34:09 34 minutes, 9 seconds Can you please again repeat? uh I couldn't hear it properly. 34:14 34 minutes, 14 seconds So can you elaborate how your differentiate landing model helps you access customer segments that we may under traditional banks? 34:25 34 minutes, 25 seconds Okay. Uh uh actually uh when we designed our product and we designed it in such a 34:33 34 minutes, 33 seconds manner that uh we uh we we will start those segments who are just graduated 34:40 34 minutes, 40 seconds from micro finance level but not to the bankable level uh bankable level. That 34:47 34 minutes, 47 seconds means the see micro is already been matured for almost 20 years right now 34:55 34 minutes, 55 seconds till now. So there is a natural graduation of the borrowers from the microfen to non-micrance. That means 35:02 35 minutes, 2 seconds their income level annual income level has crossed the three lakhs uh three lakhs 35:10 35 minutes, 10 seconds per but it's not that much incremental which the bank banking sector 35:18 35 minutes, 18 seconds is welcome them to allow the loan or credit line on a very smooth note. So we 35:26 35 minutes, 26 seconds tapped those segment and having a visible income generating activities. 35:32 35 minutes, 32 seconds That means uh these these segment are not uh bank not by the micro finance 35:41 35 minutes, 41 seconds sector for their inherent criteria and also by the banking uh sector for their 35:47 35 minutes, 47 seconds requirement of too much of uh documentation and other activities. So 35:55 35 minutes, 55 seconds we tapped this segment and we are fairly uh in a in a good position to target to 36:02 36 minutes, 2 seconds source this sort of target forward. uh and uh they really need funds uh for 36:10 36 minutes, 10 seconds keep their growth momentum and we have still much and still such time we are 36:16 36 minutes, 16 seconds really successful in uh getting this sort of borrowers in our team in our 36:24 36 minutes, 24 seconds even the even in the in in our portfolio the personal loans that were known to the supply 36:33 36 minutes, 33 seconds See like you you must be doing the municipal supply current are not welcome by the bank and and these currency 36:43 36 minutes, 43 seconds employee generally doesn't have that mindset to maintain those kind of document which the bank has the 36:50 36 minutes, 50 seconds requirements and even the bank also does not welcome those customers also. So 36:57 36 minutes, 57 seconds these these fevers always give the inclination towards us and and we 37:04 37 minutes, 4 seconds maintain those personal touch with those borrowers. So so that they give the direct inclination and they give their 37:12 37 minutes, 12 seconds salary as a rent to them so that they got deducted from their salary and give and come directly to us. 37:20 37 minutes, 20 seconds So they will their salary to their okay. So sir what percentage of your 37:28 37 minutes, 28 seconds portfolio comes from first time for borrowers portfolio see our total out of 202 37:36 37 minutes, 36 seconds crores uh 82 crores coming from uh this this segment 37:45 37 minutes, 45 seconds personal loan segment and which is around your uh 37:52 37 minutes, 52 seconds uh around 40%. and uh secured portfolio and remaining are the MS loans which I 38:00 38 minutes have already explained that these are the graduated members from the micrilms to non 38:08 38 minutes, 8 seconds micrilms the remaining 50% is coming out from that uh segment understood 38:16 38 minutes, 16 seconds uh and what uh structural advantage does company have in uh sourcing uh borrowers 38:23 38 minutes, 23 seconds compared to large NDS and fintech langers. 38:27 38 minutes, 27 seconds Uh see we had a we had a personal 38:34 38 minutes, 34 seconds touch banking uh sort of things as we move our uh we source our clients 38:43 38 minutes, 43 seconds through doortodoor campaigning from our branches. Our branch employees move from uh in a market and uh campaigns should 38:52 38 minutes, 52 seconds go to those with their campus and talking to them and establish a relationship with them so that uh their 39:00 39 minutes financial needs they can express and we can guide them in in that area in that line. Uh so uh this is basically our 39:10 39 minutes, 10 seconds sourcing model and for personal loan segment it is the uh it is the uh since 39:17 39 minutes, 17 seconds uh it's a 25 years vintage product of dark we know almost all we are in touch 39:24 39 minutes, 24 seconds with all the all the employees who are in main street 39:31 39 minutes, 31 seconds and of the various municipalities. We almost worked with 200 plus municipalities in this uh in this 39:39 39 minutes, 39 seconds product with this this product and we had established connection with them for sourcing uh of this sourcing of burgers 39:48 39 minutes, 48 seconds in this product is also not a very u critical job for us. 39:55 39 minutes, 55 seconds So sir can you quantify sourcing efficiency with the metric investor should track 40:02 40 minutes, 2 seconds sourcing efficiency if we say uh it varies because the see the the 40:09 40 minutes, 9 seconds requirement generation also depends upon the seasonal requirements and uh it's 40:16 40 minutes, 16 seconds it's not a flattened thing uh the graph always up and down. So before 3 months of any festival times it the sourcing is 40:25 40 minutes, 25 seconds very high but it's gradually gone down when the rain seasoning. So it it's a 40:32 40 minutes, 32 seconds it's a varied sourcing pattern very successful sourcing pattern. But if we say uh we contacted the 10 those uh if 40:41 40 minutes, 41 seconds if our employee contacted 10 borrowers in a day uh almost see 30 to 40% 40:50 40 minutes, 50 seconds got the success rate and balance remaining the data point with us and uh we can also tap them uh within the next 40:59 40 minutes, 59 seconds uh 3 to four months but initial success rate comes about 30% around per day basis 41:08 41 minutes, 8 seconds Okay, understood, understood. Uh sir, are there plans to introduce any new products for financial service? 41:16 41 minutes, 16 seconds No, not now because uh these products are really really uh good products. Uh 41:23 41 minutes, 23 seconds we not not at present any thought process of changing any product or adding any product right now. 41:32 41 minutes, 32 seconds Okay. And so uh regarding uh this uh EI technology uh any underwriting efficiency and uh 41:41 41 minutes, 41 seconds turnar around time uh our underwriting efficiency and turn around time see uh our software is 41:50 41 minutes, 50 seconds inhouse developed and uh we had a team uh with us uh third party vendor who does all the uh who gives us the 24 into 41:59 41 minutes, 59 seconds 7 uh headline to our for to our employees uh for this purpose and uh uh 42:08 42 minutes, 8 seconds our our uh we are coming up with complete uh finance fintech uh complete 42:17 42 minutes, 17 seconds app based solution of our own product such that all the employees can do the 42:24 42 minutes, 24 seconds uh all the entries uh in the all the entries in the system uh from uh sitting 42:32 42 minutes, 32 seconds in Borrowers point only and complete things which is coming up very fast and uh 42:39 42 minutes, 39 seconds already the app is under uh trial run and it will be uh it will be go live 42:46 42 minutes, 46 seconds very soon and uh and uh that's it. uh we we don't feel we don't 42:54 42 minutes, 54 seconds feel that we need AI in this area because we uh in our in our theory or 43:01 43 minutes, 1 second thought process we say we we feel and we experience that personal touch with the 43:08 43 minutes, 8 seconds borrowers is a very key process a very key thing for our high collection rate 43:15 43 minutes, 15 seconds and low entry rate for us and we believe to traditional 43:23 43 minutes, 23 seconds finance. Now we believe to be the traditional financers to to cater these type of borrowers because these borrowers are not the new age borrowers. 43:32 43 minutes, 32 seconds They are taking the old age borrowers. 43:34 43 minutes, 34 seconds So so that they have the mindset to keep to the personal touch and to the human 43:43 43 minutes, 43 seconds and we always help them in our own needs for any sort of uh need to face. uh we 43:50 43 minutes, 50 seconds our teams are uh members are our uh employees are there to help them out for any other needs. We usually help them in 43:58 43 minutes, 58 seconds other uh areas also as soon as they borrow we help the borrowers to to come 44:05 44 minutes, 5 seconds out as a financial disability maybe whatever work whatever point they have any any kind of default or so we train 44:14 44 minutes, 14 seconds those borrowers also so without the personal touch or with the 44:21 44 minutes, 21 seconds only on base or the tech base we cannot come out of that we cannot come out that of we not come out of that AI based only. 44:32 44 minutes, 32 seconds So we we we have the mindset of the traditional finance what what we have been doing till now but it s uh so my 44:42 44 minutes, 42 seconds last question is like uh what milestone should investor track over the next 12 to 14 months? 44:52 44 minutes, 52 seconds milestone means what what's your what's the question exactly? 44:58 44 minutes, 58 seconds Uh what milestone should investor track our our next milestone is that we will 45:06 45 minutes, 6 seconds cross 300 marks by FY27. This is the milestone weing uh we uh setting for 45:13 45 minutes, 13 seconds ourselves and informing you that uh we will end up uh this um this FY26 256 45:23 45 minutes, 23 seconds around 230 uh 35 and we will cross 300 marks by FY27. This is the this is the 45:32 45 minutes, 32 seconds goal we have we setting for ourselves and u and uh for for that reason we are 45:39 45 minutes, 39 seconds expanding in Bihar Shark and Rajasthan uh for this in this area this is the 45:46 45 minutes, 46 seconds prime target for us okay okay thank you sir 45:55 45 minutes, 55 seconds thank you we'll take the last question from the line of Gautam Mata and individual investor Please go ahead. 46:02 46 minutes, 2 seconds Hello. I'm audible. 46:04 46 minutes, 4 seconds Yeah. Yeah. Yeah. Thank you. You're audible. 46:07 46 minutes, 7 seconds Yeah. Uh congratulations for the results. So, first question is uh what promotion 46:14 46 minutes, 14 seconds the what proportions of growth is coming from existing customers versus new acquisitions. 46:22 46 minutes, 22 seconds uh see uh uh we are seeing a dropouts of around uh 40% 46:29 46 minutes, 29 seconds uh in our cases and these dropouts are basically uh higher leverage uh because 46:36 46 minutes, 36 seconds uh we took some steps in uh to get rid of those customers who are uh leveraged 46:45 46 minutes, 45 seconds more and uh setting up the fire at 50% uh if they cross the fire 50% % that we are not uh uh repeating those customers. 46:55 46 minutes, 55 seconds So basically you can say the 40% is the repeat and the 60% is the new acquisition. 47:01 47 minutes, 1 second Okay. Okay sir. And the last question is what level of disbburment growth is sustainable without impacting asset quality? 47:11 47 minutes, 11 seconds What sort of growth? Disbburment growth. Disbburment growth. 47:19 47 minutes, 19 seconds Uh see uh we we displacement growth also depends upon how the market behaves 47:26 47 minutes, 26 seconds because we had a we had a always internal forecasting uh pattern uh of uh 47:34 47 minutes, 34 seconds forecasting pattern within ourselves. We focused how to how the displacement will be in the next uh next quarter. In that 47:43 47 minutes, 43 seconds way we uh control our displacement. But uh so far as the complete uh goal target 47:51 47 minutes, 51 seconds said for us that we will be landed up to 30 to 30 235 crores by Q4 and uh by 48:02 48 minutes, 2 seconds 300 plus uh by 20 March 27 and an 48:08 48 minutes, 8 seconds average dispersment plan is from 14 to 15 crores per month. This was the um 48:17 48 minutes, 17 seconds this is a state for us uh internally within the teams. 48:22 48 minutes, 22 seconds Okay. Thank you sir. That's all from my side. Thank you. Thank you. 48:28 48 minutes, 28 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Miss Jami for closing comments. Over to you. 48:40 48 minutes, 40 seconds On behalf of that credit and capital limited and equip advisor, I thank everyone for taking time to join today's 48:47 48 minutes, 47 seconds learning squad. If you have any queries, you can connect to us at info@e equivalex.com. 48:53 48 minutes, 53 seconds Once again, thank you for joining the conference. Thank you so much. Thank you. Thank you. Bye-bye. 49:00 49 minutes On behalf of Bridgeex Advisor Private Limited, that concludes this conference. 49:05 49 minutes, 5 seconds Thank you for joining us and you can now disconnect your line. Thank you.