Dar Credit & Capital Ltd — Q4 FY26

Dar Credit & Capital Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=E3Rlk8Cvq7I Published: 3 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Q4 and FYI 26 earnings conference call of Dal Credit and 0:10 10 seconds Capital Limited hosted by Akid Rich. As a reminder, all participant lines will be in the listen only mode and there 0:18 18 seconds will be an opportunity for you to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:30 30 seconds your touchstone 4. Please note that this conference call has been recorded. I now hand the conference over to Mr. 0:39 39 seconds Goautam Nagar from Thank you and over to you sir. 0:44 44 seconds Thank you and a very good evening to everyone. Welcome to the Q4 FYI26 earning call of Dar Credit and Capital 0:52 52 seconds Limited. From management team we have with Mr. Joab Banik, Chief Executive Officer and Mr. Saki Sarab, Chief 1:00 1 minute Financial Officer. The call will begin with opening remarks from the management after which we will open the floor for Q&A. With that, I would now like to hand 1:09 1 minute, 9 seconds over the call to management for opening remarks. Thank you and over to you sir. 1:15 1 minute, 15 seconds Uh good afternoon everyone. and thank you for joining us for the credit and capital Q4 and FY26 earning conference 1:24 1 minute, 24 seconds calls. Myself Janik, CEO of DCCL and on behalf of the entire 1:32 1 minute, 32 seconds DCCL team, I would like to warmly welcome all our investors, analysts and 1:38 1 minute, 38 seconds shareholders and stakeholders joining us today. 1:43 1 minute, 43 seconds FY26 has been a transformational and milestone year for BCPL. 1:50 1 minute, 50 seconds It is a year marked by a strong business growth, healthy profitability expansion, 1:56 1 minute, 56 seconds strengthening of our balance sheet and continued [clears throat] progress in building a scalable and technolog 2:06 2 minutes, 6 seconds focused on financial inclusion. Our performance during the year reflects the strength of our lending model, 2:14 2 minutes, 14 seconds disciplined underwriting framework and expanding customer relationship and our commitment towards serving under staff 2:23 2 minutes, 23 seconds and emerging segments across India. Now I'm beginning with the financial performance for this quarter and the two 2:30 2 minutes, 30 seconds years. I am handing over to uh our CFO for explaining the uh the quarterly 2:37 2 minutes, 37 seconds results and uh over to sake uh for your for your uh narratives. 2:44 2 minutes, 44 seconds So basically coming on to the full year performances that the total income for 2:49 2 minutes, 49 seconds the FI26 is recorded as a 50.5 50.05 5 cr against the 2:58 2 minutes, 58 seconds 41.39 crores in FI25 reflecting a growth of 20.9% on year-on-year basis. 3:08 3 minutes, 8 seconds AIDA increased to rupees 34.69 crores from rupees 20 29.26 crores in FI25 registering the growth of 18.6%. 3:21 3 minutes, 21 seconds profit after tax at for FI26 to 13 3:29 3 minutes, 29 seconds uh 10.13 cr has arranged 7.0 7.04 04 in FY25 reflecting a strong growth of 40 3:38 3 minutes, 38 seconds 43.9% on year on year basis operationally as well FI26 was a year of significant progress for 3:47 3 minutes, 47 seconds the company for the for the quarterly 3:52 3 minutes, 52 seconds for the quarterly for the few quarterly performances we have the figures like 4:00 4 minutes the company reported total income of 14.23 crores as again 10.33 crores in Q4 4:08 4 minutes, 8 seconds FY25 registering a growth of 39 6% on year basis air for the quarter end 4:17 4 minutes, 17 seconds stood at 108 cr reflecting a growth of 55.9% 4:22 4 minutes, 22 seconds while the fat stood at rupees 3.07 07 cr 4:28 4 minutes, 28 seconds compared to rupees 1.9 crores in Q4 FI25 4:35 4 minutes, 35 seconds which is a strong growth of 60.7% on year on year basis. Now I'm handing over to Mr. 4:47 4 minutes, 47 seconds If I say operationally uh operationally this is a very good year and the sign uh good year of significant process uh 4:56 4 minutes, 56 seconds progress of the company. During the year, we continue to strengthen our lending operation and expand our branch 5:04 5 minutes, 4 seconds network and deepen customer reach and improve operational capabilities through technologydriven processes and 5:12 5 minutes, 12 seconds discipline risk management practices which uh shows that the which shows which reflected in the results which 5:21 5 minutes, 21 seconds already the CFO has explained to you all and as of March March 26 six uh our operational figures are like these. We 5:30 5 minutes, 30 seconds have a presence in six states with 35 operational branches and served more than 22,500 5:38 5 minutes, 38 seconds active customers and our asset under management or sto.55 5:46 5 minutes, 46 seconds crores reflecting a healthy growth of 34 95% almost 35% year on year. we in the 5:55 5 minutes, 55 seconds future we continue to maintain the strong portfolio quality and financial discipline during the year and also in 6:03 6 minutes, 3 seconds the coming year. In the in the last year the GNC was a very healthy uh that's just 1% 1.01% 01% where the company 6:13 6 minutes, 13 seconds maintained a strong capital adequacy ratio of almost 40% significantly above the regulatory requirements reflecting 6:21 6 minutes, 21 seconds our strength of the township and prudent prudent lending approach. The company also continues to strengthen its funding 6:29 6 minutes, 29 seconds profile and lockdown growth capabilities during the year through the diversified borrowing relationship and enhance 6:37 6 minutes, 37 seconds enhanced engagement with financial institutions and lenders. Our focus on technology adaptations and operational 6:45 6 minutes, 45 seconds efficiency also continued during the year. We further strengthened our digital lending infrastructure and 6:52 6 minutes, 52 seconds integrated technology loan management system and enhance customer servicesvicing capabilities to improve 6:59 6 minutes, 59 seconds scalability scalability and operationally control access the organization. The NBS and NSM sector in 7:07 7 minutes, 7 seconds India uh continues to offer significant long-term growth opportunities particularly across underserved and 7:15 7 minutes, 15 seconds underependent markets. Rising demand and for accessible credit, increasing digital adaptation and improving 7:24 7 minutes, 24 seconds economic activity continue to create a favorable environment for responsible and scalable lenders like disappear. 7:34 7 minutes, 34 seconds Looking ahead, our priorities remain focused on five key areas. First expanding our geographical footprint and 7:43 7 minutes, 43 seconds uh the footprint I mean to say we want to go deeper in the areas where we have existing branches and we uh will expand 7:53 7 minutes, 53 seconds in the states where we are already present. Secondly strengthening our loan portfolio access to personal loans 8:01 8 minutes, 1 second secured and also unsecured for maintaining disciplined underwriting standards. Third, continued investment 8:10 8 minutes, 10 seconds in technology which is the moto of our company that we digitize uh our LMS and 8:17 8 minutes, 17 seconds LOS so that the portfolio qual we ensure the good portfolio quality so that NPA percentage and other parameters remain 8:26 8 minutes, 26 seconds in control also digital transformation and process automation to improve uh operational scalability of and customer 8:35 8 minutes, 35 seconds experiences. We had already started uh uh using our own uh app uh by own app 8:43 8 minutes, 43 seconds for the for our branch network people to reach to the reach to the borrowers. 8:50 8 minutes, 50 seconds Fourth, diversification of the funding relationship and further strengthening our capital structure to support 8:57 8 minutes, 57 seconds long-term growth and finally continuing our commitment towards the financial inclusion, governance excellence and 9:05 9 minutes, 5 seconds sustainable value creation for all stakeholders. Before I conclude, I would like to sincerely thank all our 9:13 9 minutes, 13 seconds shareholders, customers, lenders, employees, partners and stakeholders for their continued trust and support in DCL 9:23 9 minutes, 23 seconds journey. With that, we we now open the floor of question and answers. Thank you. 9:32 9 minutes, 32 seconds Thank you very much. We will now begin with the question and [clears throat] answer session. Anyone who wishes to ask 9:39 9 minutes, 39 seconds a question may press star and one on the touchstone telephone. 9:44 9 minutes, 44 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking the question. 9:55 9 minutes, 55 seconds Ladies and gentlemen, we will wait for a moment while the question ends. 10:06 10 minutes, 6 seconds A reminder to all you may press star and one to ask a question. 10:15 10 minutes, 15 seconds We have the first question from the line of Priyan Sharma, an individual investor. Please go ahead. 10:22 10 minutes, 22 seconds Hello madam. Am I am I audible? Hello. Yes, you're not here. 10:27 10 minutes, 27 seconds Yeah, good evening to the management and congratulations for the good results. So sir, uh my question is we have pretty 10:34 10 minutes, 34 seconds diversified loan loan portfolio with multiple segments and they are pretty balanced also. So what are the vision? 10:41 10 minutes, 41 seconds What is the vision for FI27 in next few years like which portfolio which segment is going to uh get more growth? uh for 10:50 10 minutes, 50 seconds example loan to municipal employees are uh that segment is going to grow faster or the MS part is going to grow. 10:58 10 minutes, 58 seconds Uh we uh thank you for your question. We basically uh looking forward the growth 11:04 11 minutes, 4 seconds of the secure portfolio uh rather uh because uh it's it's a portfolio which 11:13 11 minutes, 13 seconds uh uh microl and uh segment is very popular nowadays and also are very 11:20 11 minutes, 20 seconds comfortable to our lenders and other stakeholders since uh it's since the loan is backed by the security the uh 11:28 11 minutes, 28 seconds the collection percentage age and the recovery percentage is very high. So our primary focus will be in the secured loan port secured MS portfolio. 11:40 11 minutes, 40 seconds Got it sir. And sir uh how many branches we are looking to add in FI2 as well as FI2? 11:47 11 minutes, 47 seconds Uh uh we are planning for another five to seven branches and big drives in the new areas of the existing branches. This 11:54 11 minutes, 54 seconds is the primary target of FY 2627. 12:00 12 minutes Okay sir and any like guidance you would like to give on as well as the roc numbers for f27 12:08 12 minutes, 8 seconds um 25 we are already almost 230 30 crores and we are planning for around 260 to 275 in the coming years. 12:21 12 minutes, 21 seconds Okay. Thank you so much. Actually around 50 g plus minus. What is important? Thank you. 12:31 12 minutes, 31 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and one to ask a question. 12:40 12 minutes, 40 seconds We have the next question from the line of Manish from 1729 capital. Please go ahead. 12:47 12 minutes, 47 seconds Yeah. Hi, thank you so much for uh the phone call and congratulations for management to the management for the good results. Can you guys just help me 12:56 12 minutes, 56 seconds with the split of how much of the lending is uh secured versus unsecured and how does that that trend change? 13:03 13 minutes, 3 seconds From what I was reading uh there are a lot of municipal corporation officers uh like employees etc who typically take loans. Are they secured or unsecured? 13:14 13 minutes, 14 seconds How do you classify them and how is that like how does that relationship work? 13:20 13 minutes, 20 seconds Basically there are three classification that is loan with a municipal corporation that 13:27 13 minutes, 27 seconds is a unsecured loan technically but this is if if it sounds like it is more more 13:35 13 minutes, 35 seconds than the more is the secured loan which is which more comfortable to the lending 13:43 13 minutes, 43 seconds point of view as the as we lend to the municipal kancharies Who are the who are the sleepers 13:51 13 minutes, 51 seconds cleaners? The we get the recoveries or the collections directly by the undertaking by the 14:00 14 minutes municipal authorities which are the government officials and the government officials gives us the undertaking that 14:06 14 minutes, 6 seconds the MI will be deducted or on time from from from the salary on the due 14:13 14 minutes, 13 seconds dates. So technically there is no process of manual collection for any other thing. Apart from this this total 14:23 14 minutes, 23 seconds constitute as on date 35% of my overall portfolio. 14:29 14 minutes, 29 seconds Other than this there are two other products unsecured MSN and secured MSN. 14:35 14 minutes, 35 seconds The secured MSN consist of around 30% in the current portfolio and the balance is 14:41 14 minutes, 41 seconds the unsecured one. So up from the growth perspective secured loan portfolio will be on the 14:49 14 minutes, 49 seconds higher side as it is preferential to the other lenders and the stakeholders as on date but otherwise 14:59 14 minutes, 59 seconds personal loans since it is a very old more than the two year two to two two decade product so this product will 15:08 15 minutes, 8 seconds automatically be there and the growth will be on the not at the at the par level. 15:17 15 minutes, 17 seconds Thank you. 15:18 15 minutes, 18 seconds Understood. Couple of questions from my side. Follow up on this. Uh one, uh what do government uh like these mutual corporations etc. get with this tie up? 15:29 15 minutes, 29 seconds Do you have to share some monetary incentive etc like why v why are they no actually actually uh for this purpose we 15:38 15 minutes, 38 seconds had a trip party arrangement between the borrower municipal authorities and the dark credit so that uh the the municipal 15:47 15 minutes, 47 seconds authorities uh gives the uh the uh the period of that employee that he is the 15:56 15 minutes, 56 seconds permanent employee and that In that undertaking in that understanding they undertake that they deduct the EMI from their salary and lend it to us directly. 16:08 16 minutes, 8 seconds So there is nothing uh the municipal wise municipality wise arrangement. It is the individual 16:17 16 minutes, 17 seconds arrangement between for each and every border. 16:22 16 minutes, 22 seconds Understood sir. So from my understanding this can probably be considered as a proxy to uh secured and then you are 30% 16:29 16 minutes, 29 seconds secured but remaining 30% correct actually technically technically in your if you see it 16:39 16 minutes, 39 seconds technically if you see it technically uh then so far the RBI guidelines are concerned these are treated as unsecured 16:48 16 minutes, 48 seconds because there is no collateral security but to ask in a practical way it is more secure than any other thing. 16:58 16 minutes, 58 seconds Understood, sir. That's helpful. That's helpful to understand. Just to follow up on the unsecured MHME loans, what measures do you keep in mind in order to 17:06 17 minutes, 6 seconds make sure that the GNP NP numbers are low for unsecured? 17:13 17 minutes, 13 seconds Yes. uh for unsecured our basic uh thought process is that the we we want 17:20 17 minutes, 20 seconds to ensure that it is a business and it is a business. So the what is the nature of the income generating generating 17:29 17 minutes, 29 seconds activity he the borrower has whether he has a permanent shop or not. What is the vintage what is the business growth and 17:38 17 minutes, 38 seconds how much fund he has invested all these because we basically financing the cash flows of that uh borrower. Uh so we 17:48 17 minutes, 48 seconds basically try to understand the borrower's business and also his household how much fixed liability and 17:56 17 minutes, 56 seconds the valuable liability he has. We we do the uh underwriting on the back back calculation of the how much expenditure 18:04 18 minutes, 4 seconds he is incurring and how much fixed obligation he has. In that way we calculate the fire and if it fits within 18:12 18 minutes, 12 seconds the 50% of the income he is arriving then only we can allow the loan uh to process. 18:22 18 minutes, 22 seconds It's a it's a basically a multi-layer verification at the three level before we sanction 18:29 18 minutes, 29 seconds and understood and what kind of provisions do we maintain like what percentage of 18:37 18 minutes, 37 seconds provisions do we maintain for so basically we we maintain the 100% 18:43 18 minutes, 43 seconds provisions for the unsecured loans closure for the NP loans okay as as per 18:52 18 minutes, 52 seconds the RA guidelines and these are and these are followed under the current current notification master circular 2026 on the on the April it was issued. 19:06 19 minutes, 6 seconds So basically as for the provision side we maintain two sides of provision provision on the standard asset and the provision for bad and doubtful debt. uh 19:15 19 minutes, 15 seconds on the amounting line you can clear the pros was totally amounting to 1.34 1.34 19:23 19 minutes, 23 seconds K as on the book stage. Got it sir. Thank you for clarifying. 19:30 19 minutes, 30 seconds All the best for the coming future sir. 19:33 19 minutes, 33 seconds Thank you so much for taking my questions. Thank you. 19:38 19 minutes, 38 seconds Thank you. We will take the next question from the line of Mayor Kmar from Kmart family office. Please go ahead. 19:48 19 minutes, 48 seconds Uh so hello. Uh first and foremost congratulations on the good set of numbers. So uh I went to your um 19:57 19 minutes, 57 seconds investor presentation. They said two different systems uh one Vijay and Rise money. One is for LOS and LMS 20:04 20 minutes, 4 seconds integration and other for loan operating and management. So my question was uh why two different systems and not a single integrated system. 20:14 20 minutes, 14 seconds Correct. Uh actually uh it's a good question sir. uh basically uh the if you see the company it's a very old company 20:22 20 minutes, 22 seconds from 1994 and uh as as our CFO mentioned that our personal loan segment is 2 and 20:30 20 minutes, 30 seconds a half years half decades old that means it's almost 25 years vintage product of 20:37 20 minutes, 37 seconds ourself when uh the VJ was not developed and at the time the office of this 20:44 20 minutes, 44 seconds personal loan was uh maintained uh in Arise money software and uh and after we 20:52 20 minutes, 52 seconds started the MSM segment in 1998 uh the VJI has come into operation where 20:58 20 minutes, 58 seconds all the MSN segments uh loans are loss is still uh maintained. So uh that's why 21:06 21 minutes, 6 seconds these two softwares are there and from this financial year we uh we developed 21:12 21 minutes, 12 seconds uh the module of the person loan segment and uh the right money will be sent out 21:19 21 minutes, 19 seconds uh in this financial year. So uh in the coming financial year there will be only one software 21:27 21 minutes, 27 seconds which is lo and which is which will be the teacher. Okay. Okay. Right. Right. Thank you. 21:35 21 minutes, 35 seconds Thank you. 21:39 21 minutes, 39 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and one 21:46 21 minutes, 46 seconds to ask a question. We have the next question from the line of Niawa from Ben Avenue growth fund. Please go ahead. 21:55 21 minutes, 55 seconds Uh hello, good afternoon. Uh firstly, congratulations on a great set of numbers. I just had a small question. uh 22:03 22 minutes, 3 seconds relating to the government's newly launched and credit line uh the guarantee scheme that just launched. So 22:10 22 minutes, 10 seconds how do you see that going ahead and how does it impact us in a positive or a negative way if you could throw some light on that? cash in. 22:20 22 minutes, 20 seconds Now actually ma'am these credit line or the government which the government has recently launched these are specifically 22:28 22 minutes, 28 seconds applicable to the micro finance sector which is a totally a different sector which we are funding. We are focusing 22:37 22 minutes, 37 seconds only on the MS sector which is not a very close which is not very close to 22:45 22 minutes, 45 seconds the micro finan. So these are the two different sector which we are which we are funding. So basically these credit 22:53 22 minutes, 53 seconds lines which the government has launched recently are not applicable to us 22:59 22 minutes, 59 seconds but indirectly as for the industry wise or for the borrower wise it will be the more profitable because ultimately the demand will be created in the market. 23:11 23 minutes, 11 seconds Huh. So the majorly small borrowers will will always have the will always have the capacity to 23:19 23 minutes, 19 seconds more borrow. So and the borrowers with the higher ticket size ultimately will be given to us in an indirect way. So 23:28 23 minutes, 28 seconds ultimately you will have the more capacity and ma'am uh see when the government guarantees to the NFI sector 23:37 23 minutes, 37 seconds that means there is a there is a strong possibility that there will be the fund pumping in the NFI sector which is very 23:46 23 minutes, 46 seconds close to our sector not exactly so that there will be funds in the market so 23:52 23 minutes, 52 seconds that the repentant and NA generation and recovery will be much more smoother because their funds will be in the 24:01 24 minutes, 1 second ground level. So that the roing of the funds uh because see all our borrowers 24:08 24 minutes, 8 seconds have their wife uh and the omen counterpart of our borrowers have other 24:15 24 minutes, 15 seconds way around MFI players. So uh uh in other way you can change the uh the funding in the market the liquid funds 24:24 24 minutes, 24 seconds in the market will be more that will help in our uh terms also and our recovery we expect the recovery will be more good. 24:37 24 minutes, 37 seconds Okay sir so as I see it uh when the government gives out the loans and finances it helps improve the market liquidity which ultimately improves the recovery for us. 24:48 24 minutes, 48 seconds Right. 24:49 24 minutes, 49 seconds Right. So just one second question. Uh what are the major growth drivers? Like how do we see the revenue in the finance 24:57 24 minutes, 57 seconds sector shaping up in the coming couple of years? Like what is what are going to be the major drivers for us? 25:03 25 minutes, 3 seconds Sorry I couldn't understand. Can you come back again? 25:07 25 minutes, 7 seconds Uh yes for sure. Uh as what are going to be the major growth drivers that we see? 25:12 25 minutes, 12 seconds What's going to drive our growth in the next couple of years? The major factors that would influence 25:18 25 minutes, 18 seconds growth driver we can see is basically we will be maintaining this growth plan for the forthcoming year as well. 25:28 25 minutes, 28 seconds Apart from this this we will be opening the new branches like what are what Mr. 25:38 25 minutes, 38 seconds has mentioned regarding that opening of the new branches in the current current in the current operating states which 25:46 25 minutes, 46 seconds will which will give the foreign to the to the growth in the new portfolio. 25:53 25 minutes, 53 seconds Apart from this the increasing of the secured loans which will give the more comfort to the 26:00 26 minutes lenders and like the trade guarantee schemes will give us the leverage that we can have the more more liquidity in 26:09 26 minutes, 9 seconds the market so that easy selection deployment can be done. So the fund holding and the fund rotation among the 26:17 26 minutes, 17 seconds in the NBS NBS sector for for this for this portal period is very much prospective. 26:28 26 minutes, 28 seconds All right. Thank you and thank you. A reminder to all you may 26:37 26 minutes, 37 seconds press star and one to ask a question. We will take the next question from the line of Nata Singh from Ahab. Please go ahead. 26:48 26 minutes, 48 seconds Uh thank you so much for the opportunity. 26:50 26 minutes, 50 seconds So my first question is uh your personal loan book for multiple employees has grown steadily but at a slower pace 26:58 26 minutes, 58 seconds compared to MSG loans. So is this segment reaching any saturation or is there any uh diversify you you are just looking up? 27:09 27 minutes, 9 seconds No ma'am uh we are not diversifying or uh we are not putting any break on the 27:17 27 minutes, 17 seconds personal loan segment. Uh it it demands a very steady because see 27:24 27 minutes, 24 seconds uh we we uh these loans are particularly 27:31 27 minutes, 31 seconds uh required a long-term 10 years. These loans are very long 27:38 27 minutes, 38 seconds long-term in the nature because these loans are provided to the very low low standard community like Safi Karam Chan 27:46 27 minutes, 46 seconds who doesn't have access to the banks and the other other lenders basically they were 27:54 27 minutes, 54 seconds charged by money lenders at Boring Trade. So that's why these borrowed 28:01 28 minutes, 1 second deposits paid on us and give us the and and borrow from us. So we have to keep 28:07 28 minutes, 7 seconds their EMI at a very low level. So so the their repayment period or the loan cycle 28:16 28 minutes, 16 seconds period generally goes higher on on on the personal loan segment. So the so we we can say that there is a there is not 28:25 28 minutes, 25 seconds too much steady growth can be expected expected on this product because the because since the tenure are very long. 28:35 28 minutes, 35 seconds So the so rotation and the collections will be on the very on a steady growth 28:42 28 minutes, 42 seconds or not on a greater not on a great but but huh as you can see on a stability 28:48 28 minutes, 48 seconds wise this is a very this is the force can be maintained in a steady steady way 28:55 28 minutes, 55 seconds or a stable way apart from this so we have so we have we 29:02 29 minutes, 2 seconds have maintained this MSM product which which is a very which is a very rampant in nature which is and which has really 29:11 29 minutes, 11 seconds many growth prospect and and the and the growth in the sense basically this 29:19 29 minutes, 19 seconds growth increases at a faster rate than the previous period. So since since their tenure is also less as compared to 29:27 29 minutes, 27 seconds the personal loan. So for the portfolio point of view or for the overall growth prospect towards the income point of 29:35 29 minutes, 35 seconds view this MSN sector is beneficial as compared to the personal loan. 29:43 29 minutes, 43 seconds But obviously you cannot deny the fact that more than the two two decade old product cannot be banished from the 29:49 29 minutes, 49 seconds company. Actually this is the loan product of the company and it's a very old tested product. So uh it's it's a 29:59 29 minutes, 59 seconds very steady growth and steady movement but uh as CFO is saying CFO has said to 30:05 30 minutes, 5 seconds you that municipal MS loans unsecured and secured are very fast charging it's 10 year maybe 11 30:15 30 minutes, 15 seconds months maybe 18 months maybe 24 months so it charms very fast so uh it it 30:24 30 minutes, 24 seconds automatically grows faster than uh okay got it. So secondly uh north and 30:34 30 minutes, 34 seconds south India largely absent from your current footprint. So do you have any plans to enter states like UP, 30:41 30 minutes, 41 seconds Maharashtra or Tamil Nadu? Not our basically basic thing is that where 30:49 30 minutes, 49 seconds we are now we want to consolidate these areas want to venture in the different areas of that state then only when we 30:59 30 minutes, 59 seconds saturated in a state then move to other state not to enter any new state right now 31:12 31 minutes, 12 seconds with the move government. So many more government projects and the many more scope has been developed. So we want to 31:20 31 minutes, 20 seconds capture basically we want to grow in this this invest 31:30 31 minutes, 30 seconds portfolio with consolidating. 31:37 31 minutes, 37 seconds Okay. Got it. So uh one more question as of you have signed a business correspondent agreement with uh E uh ESF 31:46 31 minutes, 46 seconds or small finance bank in 24. So how much business has this channel generated so far? Uh and are there any plans to add 31:55 31 minutes, 55 seconds more VC partnership with bank or fintax platform? 31:59 31 minutes, 59 seconds uh we had already the the BC partnership announcement with capital P capital and 32:07 32 minutes, 7 seconds uh CB but uh for the moment is now uh is 32:12 32 minutes, 12 seconds now operating slowly but uh and are going steadily and uh not any at 32:21 32 minutes, 21 seconds this moment we are going for any new business arrangement uh we are looking for some banks for this 32:31 32 minutes, 31 seconds idea of the tradition and we'll see how it goes in the coming years. 32:42 32 minutes, 42 seconds Got it. One more last question from my side. Uh as you mentioned regarding AI and data analytics for credit scoring. 32:50 32 minutes, 50 seconds So are getting this capabilities inhouse or through third party providers and with alternative data sources such as BSP. 32:59 32 minutes, 59 seconds No other third party all the data are done to our software 33:07 33 minutes, 7 seconds which is a very which is a very inounced one. So ma'am we had a inhouse team for our data 33:16 33 minutes, 16 seconds management and data source and we had our uh own IT team who are looking after the our own developed own inhouse 33:25 33 minutes, 25 seconds developed software DJ and uh we did not we we didn't want to go any third party 33:32 33 minutes, 32 seconds vendor for this purpose even even that old software of money we have inated in 33:38 33 minutes, 38 seconds this current fiscal year in the mind the prospect in the mind that we have to develop it in only. So no new vendor 33:48 33 minutes, 48 seconds software or the new new develop from the third party we are not we are now not looking into we want to develop it now. 34:01 34 minutes, 1 second Okay got it sir. Thank you so much for answering my questions and wish you all the best. Thank you so much. 34:07 34 minutes, 7 seconds Thank you. We will take the next question from the line of sin an individual investor. Please go ahead. 34:15 34 minutes, 15 seconds Yeah. Hi. Uh just want to know what is the target cost of fund you are looking for next 2 three years. 34:22 34 minutes, 22 seconds cost of funding is uh see in NBS we are always looking for the funds which are 34:30 34 minutes, 30 seconds below cost and uh we at present level we are operating our cost at around 14%. So 34:38 34 minutes, 38 seconds we are looking for a cost uh below that obviously not looking at the scenario I think the going forward uh this figure will be on the upward down side. Yeah, absolutely. 34:50 34 minutes, 50 seconds Absolutely. it will be up and down but uh it's our own uh efforts uh how much 34:57 34 minutes, 57 seconds we can bring it down that's uh actually that's my my next question is at what balance sheet size you will see 35:04 35 minutes, 4 seconds operating leverage because if the next two at what balance sheet size you will see the operating balance sheet 35:12 35 minutes, 12 seconds we are already right now against the total balance sheet size is 2944 cr so for the 35:20 35 minutes, 20 seconds forthcoming And for the F27 my balance sheet it will obviously above 350 to 370p. 35:27 35 minutes, 27 seconds So uh if there is a 200 or increase definitely it will affect the real growth and that's that's 35:36 35 minutes, 36 seconds something which actually want to understand that is it a plan at least to increase the balance sheet more aggressively. 35:45 35 minutes, 45 seconds How will company which we do not which we do not trust in 35:52 35 minutes, 52 seconds the less and long growth we we we want a sustainable growth and that's why you can feel that our MPA percentage is very 36:02 36 minutes, 2 seconds very low we are operating at a GPA of 1.01%. 36:08 36 minutes, 8 seconds which is really really a remarkable I I think you will also appreciate uh we operating in such a low uh LPL this is 36:17 36 minutes, 17 seconds only because that we grow very very uh sustainably and uh you know for any loan 36:25 36 minutes, 25 seconds sanction there is a three-way check and three uh three types of business before we get any sanction back to within a 7 36:33 36 minutes, 33 seconds days time. So uh so you can see that we we we will we will grow we will grow and 36:41 36 minutes, 41 seconds we will grow in a very uh very smooth manner without uh uh without going uh 36:51 36 minutes, 51 seconds very very faster and move like other index and other uh we are not hurrying to grow uh very I I cannot I should not 36:59 36 minutes, 59 seconds say that we will be a 400 course in the next year I will say we will we will cross now the now the portfolio is 230 37:07 37 minutes, 7 seconds we will cross 260 270 and at most we add up another two close to our portfolio 37:14 37 minutes, 14 seconds and the balance sheet will be 350 plus so we are now just like he our my was 37:21 37 minutes, 21 seconds saying that we are at 94 right now we will be crossing 350 plus positively and 37:28 37 minutes, 28 seconds uh portfolio will be around 20 to 70 to Okay, thank you. Thank you. 37:40 37 minutes, 40 seconds Thank you. A reminder to all the participants. You may press star and one to ask a question. We will take the next 37:48 37 minutes, 48 seconds question from the line of Jender from Welex Reality. Please go. 37:53 37 minutes, 53 seconds Yeah. Thank you so much for and yeah. 38:04 38 minutes, 4 seconds Yeah. Thank you. Thank you. Good evening. Uh so sir, my question is first question is regarding secured MSM loans. 38:11 38 minutes, 11 seconds So secured MS loans grew sharply during previous financial year that was 26. So I want to get what were what were the 38:20 38 minutes, 20 seconds key drivers behind this growth and uh how sustainable is the momentum going forward. 38:27 38 minutes, 27 seconds See uh we we have seen that uh the uh there is a so far our data points data 38:37 38 minutes, 37 seconds points and other uh reports from FIDC and the SH and other SRO's report we 38:44 38 minutes, 44 seconds have seen that unsecured loans are facing a stress so immediately we uh recheck and uh revisit our total 38:52 38 minutes, 52 seconds business plan our global business model and business operation situation. 38:57 38 minutes, 57 seconds We speak with our business heads and the management has clearly given a clean and clear crystal clear directive to uh put 39:07 39 minutes, 7 seconds more uh emphasis focus on the CTR business in the last cycle and also year 39:14 39 minutes, 14 seconds before last cycle. So if you see from 2023 onwards till now this two years 39:22 39 minutes, 22 seconds journey uh 2 and a half years journey our this year portfolio has given a phenomenal growth. This is only because 39:30 39 minutes, 30 seconds that management has foresee that uh the the stress should be on the secured not 39:37 39 minutes, 37 seconds on the unsecured part. unsecured part is there to maintain because as as we already mentioned earlier that unsecured 39:45 39 minutes, 45 seconds uh gives me much more profitability because it changed very fast. So we had we we continue with that but my uh secured is totally uh consolidated. 39:59 39 minutes, 59 seconds We have we have started fixed branches which do only the uh micro lab business no other business and in every other 40:08 40 minutes, 8 seconds branches we had a separate team for these secured not for unsecured I would say two three persons are identified to 40:16 40 minutes, 16 seconds do to do this business and we had a separate checklist separate uh team for 40:23 40 minutes, 23 seconds scrutinizing for analyzing the posters for the secure that's why the secure work uh shown a good uh absolute pitch. 40:34 40 minutes, 34 seconds Okay. Okay. Got it. Thanks. Uh police are the main uh drivers behind this all this group. 40:41 40 minutes, 41 seconds Yeah. Yeah. 40:43 40 minutes, 43 seconds Okay. Sure. uh question regarding the portfolio sess. So uh uh uh what will be the targeted portfolio between personal 40:51 40 minutes, 51 seconds loans and uh unsecured MSN loans and the secured MSN loans for the upcoming 3 to 40:58 40 minutes, 58 seconds four years if we talk about actually actually if you see this personal loan will be at the permanent only it will be 41:07 41 minutes, 7 seconds around 30 to 35% and secured will be around 35 to 40% and remaining will be the unsecured. This will be the uh 41:16 41 minutes, 16 seconds portfolio which uh we will be uh looking at. Okay. Okay sir. Uh that was clear. 41:26 41 minutes, 26 seconds Currently see um the uh the companies operating across six to seven estates if I'm not wrong. So 41:33 41 minutes, 33 seconds uh so for any specific geographies that are expected to arrive the next as as I already mentioned we are 41:42 41 minutes, 42 seconds expected to considerate in our existing places and we will venture the new areas in that state only not to venture in the 41:50 41 minutes, 50 seconds other state at present. No no plan for the going for the other states. Okay. So for Okay. So for now there there won't 41:59 41 minutes, 59 seconds be any expansion for now at least uh not expansion expansion will be there within the states within the states we are 42:06 42 minutes, 6 seconds operating like we are operating in Bihar and Shark and Rajasthan and Braz all we will operate in the we will venture in 42:15 42 minutes, 15 seconds the new areas of the state not like we will open in the new venture in the UP Telangana or Tamilad. 42:25 42 minutes, 25 seconds Okay. Uh okay. Okay. I got it. So expansion will be there but it will be only the existing state. Yeah. Right. 42:34 42 minutes, 34 seconds Right. Right. 42:35 42 minutes, 35 seconds Okay. Okay sir. And uh can the management please uh please uh please 42:43 42 minutes, 43 seconds specify or in explain in detail the strategy for responding the manage portfolio business. 42:50 42 minutes, 50 seconds Sorry. 42:54 42 minutes, 54 seconds Can can manage please uh tell us brief regarding the strategy for expanding the 43:01 43 minutes, 1 second managed portfolio business managed portfolio we are expanding we had a we had a series of meeting with stock bank 43:10 43 minutes, 10 seconds and the capital and we are expanding that's that's one of our big agenda uh 43:16 43 minutes, 16 seconds that we expand the manage portfolio okay sir okay then uh Um last couple 43:23 43 minutes, 23 seconds questions from my head. So see G&P is at low of 1% almost in F6. Okay. Uh so what 43:32 43 minutes, 32 seconds were the uh what were the key underwriting practices helping maintaining it strong asset quality? 43:38 43 minutes, 38 seconds Sir as I already mentioned our our we had a very robust L loss and we had a 43:47 43 minutes, 47 seconds very very very stringent method of uh verification of the uh borrowers 43:54 43 minutes, 54 seconds business and also we had a very very frequent training to the boys uh for what the management wants from them and 44:03 44 minutes, 3 seconds how the management wants from them. We had a two three tires of build field control and P management system. So such 44:11 44 minutes, 11 seconds that uh we we check too much before we proceed for a disbustment. If you see our total dispersment pattern, we don't jump in uh for the dispersment uh thing. 44:24 44 minutes, 24 seconds We are not a very aggressive uh dispers. 44:28 44 minutes, 28 seconds We are very very sustainable and we know exactly in which months we have to give loans. we in which month uh we have to 44:37 44 minutes, 37 seconds retrade. Uh so uh that's that's the key areas of our portfolio 44:44 44 minutes, 44 seconds quality uh good uh and then this reflects that our uh NPA percentage is very low. 44:53 44 minutes, 53 seconds Okay. 44:55 44 minutes, 55 seconds Okay. So uh okay. So last one from asset for now. Uh so that is uh actually uh so what is uh what is the company's credit 45:04 45 minutes, 4 seconds cost outlook for the current current year F27 considering the evolving micro microeconomic environment 45:14 45 minutes, 14 seconds the total credit as we can say it is actually the closing fee has remained around 1.04 cr for the closing for the 45:23 45 minutes, 23 seconds closing for the stranded assets and 1.2 250 is for the for the that and also 45:30 45 minutes, 30 seconds assets. So it's total amounting to 1.34 cr in the in the 45:39 45 minutes, 39 seconds financial so accordingly this will be maintained for the uh for 27 as well. 45:50 45 minutes, 50 seconds Yes. Okay. 45:54 45 minutes, 54 seconds Uh okay sir. Okay. Thank you so much uh Phil for the for and thank 46:03 46 minutes, 3 seconds thank you very much ladies and gentlemen we will take that as the last question and with that concludes the question answer session I now hand the conference 46:12 46 minutes, 12 seconds back to Mr. Gotham for the closing comments. Thank you and over to you sir 46:21 46 minutes, 21 seconds and equip advisor. I would now like to thank everyone for taking time to join today's conference call. Should you have any queries you can connect with us at info@ equipix.com. 46:32 46 minutes, 32 seconds Thank you everyone. Thank you sir. Thank you. Thank you. Thank you. Bye. Bye. Thank you. 46:40 46 minutes, 40 seconds Thank you members of the management. On behalf of equipics we conclude the conference call of DAR credit and capital limited. Thank you all for 46:49 46 minutes, 49 seconds joining with us today and you disconnect. Thank you.