Fedbank Financial Services Ltd — Q4 FY26

Fedbank Financial Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VA2gPC08mcQ Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Fed Bank Financial Services Q4 and FI26 earning conference call 0:09 9 seconds hosted by IQ Securities. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question 0:18 18 seconds after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:33 33 seconds Shepaloshi from Securities. Thank you and over to you sir. Thank you Danish. Good evening everyone. 0:42 42 seconds We welcome you to the earnings conference call of Fedbank financial services to discuss the Q4 and FI26 performance of the company. Today we 0:51 51 seconds have the entire senior management of the company represented by Mr. Pereves Moola NBN CEO Mr. CV Ganesh CFO Mr. Jagish D R 1:00 1 minute D R D R D R D R D R D R D R D R D R Dao CBO Gold Loans Mr. Shardu Kadam CBO FC Lab Mr. K Suresh CBO medium ticket lab 1:08 1 minute, 8 seconds Mr. Vikram Rati Chief Risk Officer and Mr. Lkesh Kumar Parik head Aya I would now like to hand over the call to Mr. 1:17 1 minute, 17 seconds location or over to your location. Thank you Shifan. Good evening everyone. 1:24 1 minute, 24 seconds I would like to welcome all of you for joining our Q4 FI26 results earning call. Before we start, I would like to 1:32 1 minute, 32 seconds highlight that some of the statements made on this call may be forward-looking in nature including those related to our 1:40 1 minute, 40 seconds financial performance, business strategy and growth plans. These are based on our current expectations and are subject to 1:49 1 minute, 49 seconds risk and uncertaintities including broader macroeconomic conditions. These statements reflect our views as of today 1:58 1 minute, 58 seconds and may evolve with changing business and market dynamics. With this note, I now hand over the conference to our MD 2:07 2 minutes, 7 seconds Mr. Pavish Moola for his opening comments. Thank you and over to you sir. Thank you Lokesh. 2:15 2 minutes, 15 seconds Good evening everyone. I would like to extend a warm welcome to all of you for joining the Q4 FI26 post results earning 2:23 2 minutes, 23 seconds call. At the beginning of the year we had listed our priorities uh as follows. One conserve and allocate 2:31 2 minutes, 31 seconds capital to businesses with high ROA and ROE. Focus on aruin engine strategy of gold and lap businesses. 2:39 2 minutes, 39 seconds Third, to move towards a fully secured lending portfolio. Fourth, expand gold business through branch expansion and 2:46 2 minutes, 46 seconds increased doorstep coverage. Five, continue to foster synergies between our gold and LAP operations. Six, within 2:55 2 minutes, 55 seconds LAP, we will concentrate on a combination of high yield small ticket lamp business and the lowrisk medium 3:02 3 minutes, 2 seconds ticket lab business. Seven, expand medium ticket lab with minimal capital allocation. Eight, establish leadership 3:11 3 minutes, 11 seconds in our ST lab team and build a team for growth and quality. We had promised you that FY26 will be a rebuild year focusing on correcting our credit cost. 3:22 3 minutes, 22 seconds Nine, continue strengthening our collection infrastructure to effectively manage the delinquencies which had risen in FY25. 3:30 3 minutes, 30 seconds 10. Aim for increased core income while reducing reliance on DA income. Use DA as a capital allocation strategy rather 3:38 3 minutes, 38 seconds than an income generating strategy. 11, move towards a frugal cost structure. 3:43 3 minutes, 43 seconds And 12, ensure that the credit cost remains 1% and below. These were our promises at the start of the year and 3:51 3 minutes, 51 seconds against that uh our year as well as quarter has performed as follows. On the 3:58 3 minutes, 58 seconds business front, we have experienced a good year with dispersals increasing by 67% to 31,410 crores from 18,788 crores 4:08 4 minutes, 8 seconds primarily due to the rise in our gold business. When excluding business loans which we exited in first quarter, our dispersals have grown by 75%. 4:19 4 minutes, 19 seconds On the AUM front, we have grown 27% with our AUM touching 20,000 crores in Q4 this year. This financial year we have 4:28 4 minutes, 28 seconds added 4342 crores to our AUM. When excluding BL we have observed an increase in AUM of 41%. 4:37 4 minutes, 37 seconds Gold dispersals for the quarter reached 10,744 crores compared to 7,853 4:45 4 minutes, 45 seconds crores in Q3 FI26 and 4580 crores in Q4 of the previous year indicating a growth 4:52 4 minutes, 52 seconds of 37% and 135% respectively. We have added 2,447 crores of growth to gold AM this 5:01 5 minutes, 1 second quarter. The gold business surpassed 10,000 crores increasing 70% YI and 5:07 5 minutes, 7 seconds tonnage has grown by 12% YI to 12.6 tons. Our doorstep gold loan business 5:15 5 minutes, 15 seconds continues to perform with an AUM increasing by 108% YI to 1,730 crores. 5:22 5 minutes, 22 seconds As promised, we have opened 34 new gold branches this quarter, bringing our total to 148 new branches this year. And 5:30 5 minutes, 30 seconds we will continue to expand our branches in FY272. 5:34 5 minutes, 34 seconds Despite opening 148 new branches, our AUM per branch has reached 16.5 crores, reflecting an increase of 4.4 crores per 5:43 5 minutes, 43 seconds branch during this year. Our LTVs on AUM stand at 60.9% portfolio level LTVs. In 5:51 5 minutes, 51 seconds our collaborative initiative involving gold and SD lab business, we have successfully further merged additional seven branches taking the total to 70 6:00 6 minutes branches this year. That means 70 branches of small ticket lab business have relocated into the premises of 70 6:07 6 minutes, 7 seconds gold branches thereby releasing the ST lab premises. These VAPAR branches will provide both gold loan business as well 6:15 6 minutes, 15 seconds as lab business to our customers. At the beginning of the year, our capital adequacy ratio stood at 21.9. 6:23 6 minutes, 23 seconds Now it has increased to 22.4. 6:26 6 minutes, 26 seconds The measures we have implemented in FY26 to conserve and efficiently use capital are as follows. First we 100% assigned a 6:34 6 minutes, 34 seconds business loan portfolio of rupees 886 crores which was executed and drecognized from our AUM. In addition to 6:42 6 minutes, 42 seconds improving capital efficiency, it also rinpens us from further deterioration in the unsecured det lending market. 6:49 6 minutes, 49 seconds Secondly, a total of 1,694 crores in direct assignment transactions were executed through the c through the quarter releasing capital. Gold co- 6:59 6 minutes, 59 seconds lending book increased 1,131 crores to 2127 crores and rups 450 crores in subordinate debt was raised in this 7:07 7 minutes, 7 seconds quarter. These measures will enable us to continue our growth story in FY27. 7:16 7 minutes, 16 seconds As previously stated, the complete allocation of 886 crores of business loan portfolio in the first and second quarters of FY26 7:24 7 minutes, 24 seconds um this year now ensures that we maintain a secured onbook ratio exceeding 99.5 ratio five uh%. 7:34 7 minutes, 34 seconds In line with our priority of increasing core income and decreasing DA income, the net income from DA has increased by 7:40 7 minutes, 40 seconds 89% uh decreased by 89% to 7 crores for FY26 compared to 66 cr for the same 7:48 7 minutes, 48 seconds period last year. We had promised you that we will not rely on DA income for the PBD. Nevertheless, our operating 7:55 7 minutes, 55 seconds profit has risen by 11%. If we had sustained a similar kind of DA income, the operating profit would have reflected a growth of 22 or 23%. 8:06 8 minutes, 6 seconds The empty lab business has demonstrated stability over the course of the year, dispersing a total of 2,180 crores while 8:13 8 minutes, 13 seconds sustaining its yields. In Q4, the empty lab business has dispersed 632 crores, reflecting a 16% increase quarter 8:20 8 minutes, 20 seconds quarter. Throughout the last two years, the company has encountered uh ri r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r rising credit costs in the ST lab segment 8:29 8 minutes, 29 seconds prompting the OG to strengthen its credit policies and shift towards a systemdriven B. The ST lab business has 8:36 8 minutes, 36 seconds dispersed 94 crores during this financial year and 289 crores in Q4 reflecting a 39% increase quarteron 8:45 8 minutes, 45 seconds quarter. In Q3 in this business we have moved Shardul Kadam our CRO as the CBO in ST lab business over FYI26 we have 8:54 8 minutes, 54 seconds hired senior leadership team and stabilized the product we seeing improvements in sourcing quality this year we we expect that to continue as we 9:02 9 minutes, 2 seconds grow collections we senior leadership has been onboarded field team has been strengthened the collection framework has been verticalized additional 9:10 9 minutes, 10 seconds personnel have been recruited call center legal and recovery teams at the end of 26 we have almost 2x the 9:17 9 minutes, 17 seconds collection personnel that we started with for shoring up collection within the ST lab segment and increasing the PCR in Q3 FI25 along with exiting the 9:26 9 minutes, 26 seconds deep bucket NPS through that ARC sale in Q1 and uh and the work that we've done 9:33 9 minutes, 33 seconds in Q2 and Q3 we have limited our credit cost for the year at 8% and for Q4 at 7% 9:41 9 minutes, 41 seconds uh 7% we have raised about $250 million in ECB till date. Finally, the key numbers are 9:49 9 minutes, 49 seconds as follows. In business, the AM reached 20,153 crores, translating to a growth of 27%. Excluding BL, it is about 41% 9:59 9 minutes, 59 seconds YI. Gold reached 10,000 crores 3 10,352 crores. NUM growth of 76%. 10:07 10 minutes, 7 seconds Substantiated by a tonnage growth of 12%. 10:11 10 minutes, 11 seconds Mortgage AUM reached 9,362 crores. and EUM growth of 16% dispersals of 11,664 10:18 10 minutes, 18 seconds crores in Q4 FY26 up 109%. On the profitability and asset quality side the net interest income for Q4 grew 23.1% 10:28 10 minutes, 28 seconds and for FY26 it grew by 14.8% operating profit for Q4 grew 24% Y to 162 crores 10:36 10 minutes, 36 seconds and for FY26 grew 10.8% 8% Y to 576.3 crores. Our credit cost for Q4 stands at 10:42 10 minutes, 42 seconds 7% and for FY26 it stands at8%. Our net profit stood at rupees 100.5 crores in 10:50 10 minutes, 50 seconds Q4 FY26 and for FY26 it is rupees 343.6 crores the gross stage 3 stands at 1.9% 10:59 10 minutes, 59 seconds versus 2.1% Q on Q and 2% Y. 11:05 11 minutes, 5 seconds With that I will now hand over to our CFO Mr. CV Ganesh to take you through the numbers. 11:12 11 minutes, 12 seconds Yeah, thank you Perves. U thanks everyone for your participation on the call. I will add to what has been 11:20 11 minutes, 20 seconds covered this far. Right. So I will start with six number at of 100 crores 11:29 11 minutes, 29 seconds 750 plus branches 10,000 crores plus of gold loan aum 11:35 11 minutes, 35 seconds 20,000 crores plus of entity aum 2.6% 6% ROA, 14% RO. 11:46 11 minutes, 46 seconds So these six numbers sum up the quarter. 11:52 11 minutes, 52 seconds First on the AUM growth, we have had a strong AUM growth in Q4 XBL 12:00 12 minutes our AUM grew 15.8% sequentially quarteron quarter. 12:06 12 minutes, 6 seconds This was led by a 31% sequential growth quarter on quarter in the gold loans. 12:13 12 minutes, 13 seconds Just to amplify that with numbers, in the first 9 months of the year, 12:21 12 minutes, 21 seconds our AUM X unsecured business loans grew about 3,000 crores. 12:27 12 minutes, 27 seconds Against that, in the 3 month period of Q4, our AUM grew 2,700 odd crores. 12:36 12 minutes, 36 seconds Now what this means is that if we exclude the roughly 900 crores of the unsecured book we sold during the year 12:43 12 minutes, 43 seconds the secured book has grown a little under 5,800 crores this year. a growth of approximately 41% yearonear. 12:53 12 minutes, 53 seconds Within this, our gold loan aum has grown 76% yearonear 13:00 13 minutes while this has had tailwinds of gold price growth in FI26. 13:06 13 minutes, 6 seconds But we have also been able to demonstrate a tonnage growth of 12.25% during the year. 13:14 13 minutes, 14 seconds So while gold has been the primary driver, this underlines our twin engine strategy in a year where MSME lending has had 13:23 13 minutes, 23 seconds headwinds as well as this butresses our conviction in investing in the 148 new branches 13:31 13 minutes, 31 seconds most of which have turned the corner on profitability within the year itself. Second on yields and cost of borrowing. 13:40 13 minutes, 40 seconds Are yields reduced 12% year on year due to a neverbefore growth in the gold loan 13:47 13 minutes, 47 seconds book? When you grow so much, obviously there is going to be some impact on E. 13:53 13 minutes, 53 seconds Also, the backended nature of the growth resulted in the average yield optically showing a drop of about 28 bits. Our 14:03 14 minutes, 3 seconds weighted average cost of borrowing was marginally lower in the quarter by four bits. However, with the leverage 14:10 14 minutes, 10 seconds increasing to 4.6 in Q4 in the ROA tree, you will see interest expenses optically going up by 10 bits. 14:20 14 minutes, 20 seconds on the interest rate outlook. We saw cost of borrowing hardening post February as well as hedge rates on our 14:28 14 minutes, 28 seconds foreign currency borrowing going up materially. With the current geopolitical situation, we remain cautious in terms of outlook. 14:39 14 minutes, 39 seconds What did we do? We tanked up on liquidity in the quarter to counter volatility caused by the geopolitical situation in the Gulf. 14:49 14 minutes, 49 seconds While it has optically increased finance cost and optically reduced the net interest income for the quarter, it 14:56 14 minutes, 56 seconds gives us a hedge against the uncertainty and interest rate volatility in Q1. on asset quality. 15:05 15 minutes, 5 seconds Asset quality improved quarteron quarter with entity oneplus DPD improving to 6% 15:12 15 minutes, 12 seconds from 7.1% in December and entity 30% DPD improving by 70 bits and entity 60 plus 15:22 15 minutes, 22 seconds DPD improving by 50 bits uh over the last quarter. 15:28 15 minutes, 28 seconds This is driven primarily by an improvement in the mortgage delinquencies which have improved materially. 15:35 15 minutes, 35 seconds Uh as we have executed moving away from agencyled collections to in-house collections. 15:42 15 minutes, 42 seconds GNPA has also declined 20 bips quarteron quarter to 1.9% from 2.1 and the net NPA 15:49 15 minutes, 49 seconds has declined 10 bits to 1.3% quarteron quarter. We have been able to hold our PCR flat at about 32.3%. 15:58 15 minutes, 58 seconds Now on the profit and return metrics, PAT was up 14.4% sequentially quarteron quarter and 40% yearonear boosted by the 16:08 16 minutes, 8 seconds incremental interest income from the asset growth and lower credit costs. We crossed the psychological milestone of 100 cr of pad. 16:17 16 minutes, 17 seconds This was an important base camp for us in our onward journey from a year of repair. 16:24 16 minutes, 24 seconds We are cautiously optimistic of an upward journey from here. 16:30 16 minutes, 30 seconds Our peop for the quarter came in at 162 crores, an increase of 24% yearon year and 9% quarter on quarter. 16:39 16 minutes, 39 seconds Bop for the year came in at 576 cr an increase of about 11% yearon year. 16:48 16 minutes, 48 seconds Um however as articulated earlier if you exclude the DA income of last year which we have consciously dialed 16:56 16 minutes, 56 seconds down the core POP is up 22% yearon year on a full year basis. 17:04 17 minutes, 4 seconds The improved delinquencies resulted in credit cost decreasing 10% quarteron quarter, 14% yearon year to 0.7% as a percentage of average total assets. 17:16 17 minutes, 16 seconds On a fullear basis, credit costs as a percentage of average total assets is down from 1.7% in FI25 to 0.8% in FI26. 17:28 17 minutes, 28 seconds on the our operating leverage is playing out slowly but surely. 17:35 17 minutes, 35 seconds OPEX as a percentage of average total assets reduced to 5.5% 17:41 17 minutes, 41 seconds from 5.9% a year ago and 5.7% in Q3 giving us some green shoots on economies 17:48 17 minutes, 48 seconds of scale playing out on an expanding balance sheet. On a fullear basis, FI26 has seen a 20 bits drop in OPEX to 17:57 17 minutes, 57 seconds average total assets over FI25 as a whole. The ROA also continued its onward 18:03 18 minutes, 3 seconds climb at 2.9 at 2.6% up from 2.5% in Q3 18:09 18 minutes, 9 seconds and 2.2% a year ago. Our ROE also broke into the team at 14%. 18:17 18 minutes, 17 seconds Now on capital adequacy, a 40% growth in AUM depletes capital 18:24 18 minutes, 24 seconds adequacy and has resulted in a leverage increasing to 4.6 up from four in December 25. 18:32 18 minutes, 32 seconds In the beginning of the year, we had consciously divested our lower ROA unsecured business to release capital 18:40 18 minutes, 40 seconds for the onboard client in the secured business. In Q4 we have raised a subordinated debt of 18:48 18 minutes, 48 seconds 450 crores which has supplemented our capital adequacy by 3%. 18:54 18 minutes, 54 seconds Consequently in spite of the healthy asset growth our CR at 22.4% 19:03 19 minutes, 3 seconds as of March is up from 20.5% in Q3. This gives us ample headroom for growth in the coming year. 19:14 19 minutes, 14 seconds As the numbers over the last four quarters of this year show, we have attempted to build resilience and 19:21 19 minutes, 21 seconds consistency in terms of asset quality, credit cost and a upward linear 19:28 19 minutes, 28 seconds trajectory in return metrics. We are deeply grateful for your support in this exercise. With that, I now hand it over 19:36 19 minutes, 36 seconds to the floor for questions and answers. 19:42 19 minutes, 42 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 19:53 19 minutes, 53 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are request to use handsets only while asking a question. 20:03 20 minutes, 3 seconds Ladies and gentlemen, we'll wait for a moment while the question crew assembles. 20:10 20 minutes, 10 seconds The first question comes from the line of Digant Hara from Greenwich Wealth. Please go ahead. 20:16 20 minutes, 16 seconds Yeah. Hi. Uh thank you for the opportunity and uh congratulations for the century. It's the first time we've crossed the 100 crore mark. Uh and and 20:25 20 minutes, 25 seconds you know given that the backend nature of growth and you know what Ganesi mentioned that we've built in some liquidity you know just for a rainy day in the coming quarter. So I think you 20:34 20 minutes, 34 seconds know this century will probably remain our base. Uh so congratulations on that. 20:38 20 minutes, 38 seconds Uh uh my question you know I have two questions only. One is on gold loans. Uh like you know Perves you mentioned that second half is generally heavy for us 20:47 20 minutes, 47 seconds and it was exactly like that. Uh the question here is that you know we have had such strong growth. Uh but you know only one thing is that the ES have 20:56 20 minutes, 56 seconds probably been a little softer in the last two quarters. So I just wanted to know the growth strategy like you know is it in the new branches just to ensure 21:04 21 minutes, 4 seconds that we reach break even we are giving discount schemes in the initial days and you know like you know what what are we ch doing on the growth front like you 21:12 21 minutes, 12 seconds know the topups versus new customers versus you know other things if you can just highlight the color of growth. 21:20 21 minutes, 20 seconds Yeah, Vigant. Uh, thank you so much. Um, thank you uh for um remembering that we had said that uh we will grow in Q3 and 21:30 21 minutes, 30 seconds Q4 differently from what we did in Q1 and Q2 because uh that's the way our seasonality plays out. uh also if you 21:38 21 minutes, 38 seconds remember I had spoken about tonnage growth uh you have seen uh the kind of tonnage growth that we have delivered uh y 21:47 21 minutes, 47 seconds um it's a 12% uh tonnage growth and uh we are very conscious of that tonnage 21:53 21 minutes, 53 seconds growth uh as far as yields are concerned uh there are two factors which are playing in here uh so if you take about 22:01 22 minutes, 1 second uh 30 bips here and there which you are comparing uh I would break it into two 22:09 22 minutes, 9 seconds parts. Uh there could be a five to 10 bits which we could have done on the yield front but the balance is because 22:16 22 minutes, 16 seconds of the uh backending of the uh dispersals when you have such a large number of dispersals which are happening 22:24 22 minutes, 24 seconds in the last quarter and there is a back end uh that is the effect. So the yield effect is uh hardly 10 bits and I think 22:33 22 minutes, 33 seconds Q1 will uh that we will uh cover back uh when when you're playing in a market which is competitive and when you're 22:41 22 minutes, 41 seconds pressing the pedal for Q4 and when you are trying to get the tonnage growth 10 bits here and there is okay because we'll cover it in Q1 22:50 22 minutes, 50 seconds right so so it's only 10 bit dips you know I just thought you know the yields at origination like you know I understand that you know optically you know the reported yields were not you 22:59 22 minutes, 59 seconds know reflect because of the backhanded nature but at origination you know have we seen any meaningful pressure on the yield and and you know like is it maybe 23:07 23 minutes, 7 seconds we are you know doing slightly larger ticket sizes or but or there's absolutely nothing like that you know and the yield at origination still remain healthy. 23:16 23 minutes, 16 seconds Yeah. So in the quarter four there tends to be that uh tendency to play with the origination yield in the sense of 23:25 23 minutes, 25 seconds different uh geographical markets. Uh we do that but overall level it's it's steady what we did in last quarter that 23:33 23 minutes, 33 seconds is exactly last uh Q4 uh FI25 we did exactly the same thing in FI26. 23:40 23 minutes, 40 seconds Uh it's a seasonality play. um you will see us uh Q1 back to the same um pockets 23:48 23 minutes, 48 seconds is the competition uh pressure that you are talking about is yet to play out uh is the way I would put it. Uh the 23:55 23 minutes, 55 seconds competition is yet to yet to get those branches in the spaces that we are operating and we are yet to see that 24:03 24 minutes, 3 seconds pressure play out although it might but it has not yet played out and that is not uh what has happened. This is 24:09 24 minutes, 9 seconds unprecedented dispersals uh and uh uh I think we we're in the same zone where we wanted us to be. Perfect. Perfect. 24:19 24 minutes, 19 seconds Perfect. Uh great for that details. The second question is that you know now uh you know we have this new guideline of 24:27 24 minutes, 27 seconds 75% LTV across the life of the loan. So just internally like you know what are the process level changes we have done because you know if we don't do any 24:35 24 minutes, 35 seconds changes then optically the NPA might go up because some customers may just go higher than 75 and you know so there is no credit cost risk at all but still you 24:44 24 minutes, 44 seconds know optically the NPS in the coming quarters or the industry may go up because of this guideline thing. So you know how have we as Fed Cena you know 24:52 24 minutes, 52 seconds decided to tackle this or you know uh any any insights? Yeah. So I will um see 24:59 24 minutes, 59 seconds these guidelines have come effective um this April. Uh there are two sets of guidelines. The guideline that you are talking about that we have to maintain 25:07 25 minutes, 7 seconds 75% across the loan that was an earlier guideline. The revision and guideline which will happen from April 26. Uh we 25:17 25 minutes, 17 seconds are executing it and I will request Jagish to elaborate it for you. He will give you all the details that we are doing and how we are um d-risking uh 25:26 25 minutes, 26 seconds what we need to do on the operation side. 25:29 25 minutes, 29 seconds Yeah. Hi. [clears throat] Yeah. 25:32 25 minutes, 32 seconds Uh yeah. Hi. Uh so uh this margin breach has nothing to do with the delinquencies of the book. Yeah. So that is the first 25:40 25 minutes, 40 seconds point. Uh and on the margin ple breach regime uh last year we were we were following 75% regime. Now it is changed 25:50 25 minutes, 50 seconds to 85% for a exposure up to 2.5 lakhs and uh uh 7 uh 80% for exposure up to 25:58 25 minutes, 58 seconds five lakhs and uh anything above five lakhs it is 75%. 26:03 26 minutes, 3 seconds So, so uh there is there is room given by the regulator for playing on the LTV 26:10 26 minutes, 10 seconds while uh 90% of the book is uh less than 75% for fetina we don't see any impact 26:17 26 minutes, 17 seconds coming out and and like I said margin breach even if there is a margin breach there is no need of any provisioning or 26:24 26 minutes, 24 seconds no need of treating it as a deluent book other than uh initiating for margin collections with the customer. 26:32 26 minutes, 32 seconds Okay. So it won't impact the NPS recognition. That's that's good to know sir. No impact. No impact. Right. Right. Right. No no no. Perfect. 26:39 26 minutes, 39 seconds That is very helpful sir. So last question is on uh you know the the small lab piece. I see that you know we have recruited some really good people on the 26:48 26 minutes, 48 seconds collection side. So so you know maybe this year we have built the collection team. So you know like do we have a little more confidence than last year 26:56 26 minutes, 56 seconds that you know FY27 you know this portfolio may actually grow and you know deliver maybe positive kind of ROIs also. 27:04 27 minutes, 4 seconds Uh yes Pigant definitely I am much more confident that what I was one year ago 27:10 27 minutes, 10 seconds when we were um giving you a guidance that there will be a GMPA number which uh will increase and we will hold the 27:19 27 minutes, 19 seconds credit cost. Um definitely the collection efficiencies have improved. 27:24 27 minutes, 24 seconds Uh what we have also changed is uh the uh ST lab business had a percentage of uh collections happening through 27:32 27 minutes, 32 seconds agencies. We have now moved it to our own people. Uh our own people have joined us uh last year and now have 27:39 27 minutes, 39 seconds spent about uh 3 to six months wining started giving us uh results. So definitely we are positive on the uh STP 27:48 27 minutes, 48 seconds uh business in terms of uh uh the uh the past GNPS also and we are also confident about the new book that we've written in 27:57 27 minutes, 57 seconds the last one and a half years. So I think um that piece uh definitely we are confident about what we are now working 28:05 28 minutes, 5 seconds on is picking up the growth story. You would see that uh last year we were uh hovering around 200 crores. March 28:13 28 minutes, 13 seconds definitely is a good momentum quarter for everybody. So we did clock 290 crores. Uh but definitely that is where 28:20 28 minutes, 20 seconds uh we are working on uh to pick up the business uh and know even on the business front uh we've hired uh new people who come in last year and the 28:29 28 minutes, 29 seconds productivity will start jumping up uh there too. uh although we are taking it under the new uh uh credit uh B that we 28:38 28 minutes, 38 seconds have done uh so it will pick up steadily and we are happy with that. 28:43 28 minutes, 43 seconds Okay. Okay. Perfect. Thank you. Thank you everyone for this detailed answer. Thank you and all the best. Thank you. Thank you Vant. 28:52 28 minutes, 52 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one. 29:00 29 minutes Our next question comes from the line of Magna Lutra from Incred Equities. Please go ahead. 29:08 29 minutes, 8 seconds Hi sir, thank you for the giving me the opportunity and congratulations on a good set of numbers. Then a few questions. One is uh since our average 29:16 29 minutes, 16 seconds ticket size in gold loans is uh you know around the 2.7 lakh mark. How has the new KYC rules impacted disease? Has it impacted disbursements at all? 29:28 29 minutes, 28 seconds No there was no no any Ky lo can you be more specific sir from 29:36 29 minutes, 36 seconds what my understanding is that loans above 2.5 lakh have to go through a KYC and uh most likely the the you know the 29:45 29 minutes, 45 seconds customers who are coming for a gold loan do not prefer going through uh you know KYC say on the civil or based on the 29:53 29 minutes, 53 seconds card and other details. So this is actually uh with effect from 1st of April 2026 the new regime. So it is not 30:02 30 minutes, 2 seconds about KYC it is about the assessment. So for a uh when when the exposure increases 2.5 lakhs we need to do a 30:09 30 minutes, 9 seconds basic assessment on the income and uh uh basically the cash flow of the customer to understand the profile a bit more in detail. Oh okay. 30:19 30 minutes, 19 seconds We are we are prepared and uh after April 1st we are completely on we are live with our systems our integration 30:26 30 minutes, 26 seconds with the credit bureau to understand the obl existing obligations not and we don't see much of an impact but yeah 30:33 30 minutes, 33 seconds there is an impact on the practice of our branches our staffs servicing because that's a new new journey for them but yeah over a period of a month 30:41 30 minutes, 41 seconds or so we we see we expect stability there. Yeah. 30:46 30 minutes, 46 seconds Okay. Got it. And sir, another question was on the uh co-ending the co-ending spread in the colon. 30:57 30 minutes, 57 seconds Sir, so uh our overall book under so is 21% which is around 2,100 crores. Okay. 31:05 31 minutes, 5 seconds Uh and uh that gives the AM level spread of around 4% and 31:13 31 minutes, 13 seconds Okay. Got it. Got it. And another question sir uh on uh other income we are seeing that the dispersment growth was was very strong during uh the year. 31:23 31 minutes, 23 seconds However, our uh fee and commission income uh declined uh on a you know year-on-year basis. Sir uh would you 31:31 31 minutes, 31 seconds like to highlight that how do we see that moving ahead? 31:37 31 minutes, 37 seconds The other income mna is actually coming from uh the uh lab business. Um and uh 31:45 31 minutes, 45 seconds the lab business uh dispersals uh there have they have not been as strong as the uh gold business uh 31:54 31 minutes, 54 seconds dispersals. So that is where you are seeing that uh piece. Okay. 32:02 32 minutes, 2 seconds And uh one more element I think is also about uh business you might be seeing if you're looking at FI25 there is uh 32:10 32 minutes, 10 seconds business loans through which I had uh the fee income coming in. 32:14 32 minutes, 14 seconds uh which is not there in the year uh now. 32:19 32 minutes, 19 seconds [clears throat] 32:19 32 minutes, 19 seconds So sir, how do you see this line going forward? Uh do you think they we could see a reasonable amount of growth? 32:27 32 minutes, 27 seconds Yes, it will because see I am as I said I'm picking up the dispersals uh and the dispersals on the SDL lab business will 32:35 32 minutes, 35 seconds pick up uh on the um medium ticket lab business will pick up and it's a direct correlation there. So on the rota tree 32:43 32 minutes, 43 seconds also we are expecting8 to 1% coming from the fee income side. Uh so this should pick up going forward. Uh and also BL won't be in the base of FY26. 32:55 32 minutes, 55 seconds Right. Right. 32:58 32 minutes, 58 seconds And sir on uh on Am growth uh we understand that gold prices uh you know uh I mean you would be building in some 33:06 33 minutes, 6 seconds sort of gold prices in the growth strategy. How do you see uh the whole loan book growing uh during the year and 33:15 33 minutes, 15 seconds also the the lab book the MT and FT lab book? 33:20 33 minutes, 20 seconds Yeah, Mna. So we've been uh giving a overall guidance uh uh last year also 33:28 33 minutes, 28 seconds and we said we will be a 20 25% AUM growth company uh and we'll continue with that. 33:37 33 minutes, 37 seconds And so lastly, what would be the incremental cost of funds during the quarter? Yeah. 33:45 33 minutes, 45 seconds Right now it is, as I said, it's an uncertain environment. Mhm. Right. Right. 33:51 33 minutes, 51 seconds Would be hazardous to uh sort of have a guess around that. We are watchful as I said, we have tanked upon liquidity. We 34:00 34 minutes do not foresee us needing too much of money in the markets at least till the geopolitical situation cools down. Mhm. 34:08 34 minutes, 8 seconds And then we are hoping Q2 is the new quarter. Okay. Okay. Okay. 34:17 34 minutes, 17 seconds All right. Thank you. 34:21 34 minutes, 21 seconds Our next question come from the line of Chinten from Icurities. Please go ahead. 34:27 34 minutes, 27 seconds Uh yeah. uh thank you for the opportunity and uh congratulations on the strong set of numbers. Uh so uh so 34:35 34 minutes, 35 seconds uh just diving deeper into this gold loan. Uh so disbursements for gold loan if I look at look at the number they 34:42 34 minutes, 42 seconds have almost doubled uh in FI26 versus FI25. 34:46 34 minutes, 46 seconds So what is the kind of key vectors uh which would have contributed to uh this loan as in uh branch expansion plus I think we also have uh dualstep banking. 34:57 34 minutes, 57 seconds So what would be kind of the uh mix how much would be from those banking and how much could that be attributed. So just wanted trying to understand now what 35:04 35 minutes, 4 seconds could be the run rate which could sustain uh going forward. Yeah that the first question. 35:11 35 minutes, 11 seconds So yeah there are multiple drivers obviously the first driver is the new branch and the existing branches giving 35:18 35 minutes, 18 seconds more uh productivity in the existing book. So from 12 crores we have reached around 16 and a half crores average per branch book size. 35:27 35 minutes, 27 seconds Uh the another driver is the doorstep gold loan. Doep go loan uh uh stands at around,7730 35:34 35 minutes, 34 seconds crores am which is 17% on the overall am so these are the two major drivers and 35:40 35 minutes, 40 seconds uh uh as we always promised uh uh we concentrated on the tonnage and uh uh the tonnage has grown around 4 and a half percentage for this financial year. 35:52 35 minutes, 52 seconds These are the three major drivers I think. 35:56 35 minutes, 56 seconds Uh sure. Uh so sir but in terms of this uh EUM per brand so it is almost 16 and a half. So probably peers could be 36:04 36 minutes, 4 seconds somewhere around um at max best P I think like around 18 to 20 crores out. 36:09 36 minutes, 9 seconds So what is the maximum stretch I think which we believe could be stretched to on EUM per branch. So and uh what is the 36:16 36 minutes, 16 seconds uh branch expansion um idea for the next particularly for gold loans? 36:22 36 minutes, 22 seconds So just to detail there uh our we have opened 148 branches. Even after opening branches our average overall average is 36:29 36 minutes, 29 seconds 16.2 but uh when you see like the the branches which were there in FI25 we have we reached around 20 crores of 36:38 36 minutes, 38 seconds average per branch there. So we are at par with the with the market as we speak. So the the capacity of every 36:46 36 minutes, 46 seconds branch we we have is to accommodate at least 60 65 65 crores of uh portfolio 36:53 36 minutes, 53 seconds and that's the size of the safe room that's that depends on the locker how much lockers we can keep it in the branch. So we are capacitized to uh 37:03 37 minutes, 3 seconds reach around 60 65 crores per branch book. 37:08 37 minutes, 8 seconds A simple one way of looking that uh looking at that also will be to look at each of the competition and look at what 37:16 37 minutes, 16 seconds is the uh vintage of the branches uh you have. So you will have certain branches which are in the range of 20 25 crores. 37:24 37 minutes, 24 seconds They will grow at a particular rate. The 15 to 20 will grow at a particular rate. 37:29 37 minutes, 29 seconds the five to 10 will grow and the new branches will grow at a particular rate and depending on the geography that you have these branches you will have uh 37:38 37 minutes, 38 seconds kind of growth because there will be white spaces available in the western and northern geographies and the southern geographies will be a little dense and plus we add the doorstep 37:47 37 minutes, 47 seconds that's how we model our growth uh story and so hypothetically assuming if there 37:54 37 minutes, 54 seconds is um decline say 10 15%age in the um gold prices. Uh so do we uh so in that 38:02 38 minutes, 2 seconds kind of scenario what could be the uh growth which would be targeting at overall a growth for gold loans? 38:10 38 minutes, 10 seconds Yeah. See uh we when we do a budgeting exercise with gold loan we start with the tonnage growth irrespective of the 38:17 38 minutes, 17 seconds price. So we will be budgeting for a 10 15% tonnage growth. Our branches are uh modeled for tonnage growth in terms of 38:26 38 minutes, 26 seconds uh the KAS as well as the uh drivers as well as the support that we give them. 38:32 38 minutes, 32 seconds Uh that is uh how we drive our branches and we take price as a bonus. Um and uh 38:40 38 minutes, 40 seconds depending on the um each of the quarters there could be ups and downs which could happen but overall level even if you 38:47 38 minutes, 47 seconds have a flattish uh kind of a price play next year we still should see a 20 22% 38:55 38 minutes, 55 seconds um uh growth on the EVM on the gold side for a flattish uh price. 39:03 39 minutes, 3 seconds Sure. Sure. And uh so so this on loans now on the uh overall uh em so kind of 39:10 39 minutes, 10 seconds what would be our uh guidance uh so 20% odd guidance uh remains right on the overall em to 25%. 39:22 39 minutes, 22 seconds Sure. And so lastly on the margins front uh I think uh if you could just help me with the breakup of the fixed and 39:29 39 minutes, 29 seconds floating book on the asset and the liability base. So just wanted to understand if there is a rate height kind of scenario how are we placed on 39:36 39 minutes, 36 seconds that frontier fixed and floating yeah no roughly about a quarter of the 39:44 39 minutes, 44 seconds book is on fixed right and here I'm excluding the commercial papers we take now uh commercial papers we we would 39:52 39 minutes, 52 seconds have 6 months one year also if you factor commercial paper of a longer duration also roughly 30 35% would be fixed so there is some 40:00 40 minutes insulation Right. Uh okay. 40:05 40 minutes, 5 seconds Yeah. On the overall borrowing it is kind of 30 35% is fixed including CPS. That is correct. 40:11 40 minutes, 11 seconds Yeah. And so on the asset side to largely gold will be the entirely fixed and on lap portfolio. 40:18 40 minutes, 18 seconds See it is I think the way you will have to look at it is that in gold because of the shorter tenor right we have the opportunity to repric. 40:28 40 minutes, 28 seconds Understood. Understood. Understood. So uh you know I think we have the opportunity and we have the insulation. 40:37 40 minutes, 37 seconds Understood. Understood. Fair enough. 40:39 40 minutes, 39 seconds Okay. Okay sir. Thank you. I think that's it from myself. Thank you and I come uh join back and take you and all the very best for the future. 40:48 40 minutes, 48 seconds Thank you. 40:50 40 minutes, 50 seconds Our next question come from the line of Shipal Dshi from IQ Securities Private Limited. Please proceed. 40:57 40 minutes, 57 seconds Hi sir. Uh good evening. My question was pertaining to the growth side. So as you said that even if the gold price remains 41:03 41 minutes, 3 seconds steady we would be growing at 20 22%. On the gold side uh which would be on the 41:10 41 minutes, 10 seconds back of 10 to 15 gold needs to grow. But if you look at let's say next year when 41:17 41 minutes, 17 seconds sorry to interrupt you Mr. Dooshi but your voice is breaking. Am I better now? Yes. 41:24 41 minutes, 24 seconds Okay. So next year how are we looking at the modgate segment growth coming back because next year we might not see similar level of gold business growth. 41:34 41 minutes, 34 seconds So on the mortgage size side if you could give us some clarity on the uh small ticket lab segment uh you know 41:41 41 minutes, 41 seconds growth or how we are seeing the trends emerging there in terms of uh not only uh asset quality related trends but also 41:50 41 minutes, 50 seconds how our framework is newer framework is helping us on a better group trajectory going ahead. 41:57 41 minutes, 57 seconds Yeah, I mean Shepal you uh whatever questions I've answered, I've answered the overall growth. I've answered the 42:05 42 minutes, 5 seconds gold gold growth. Now the only thing remaining was the mortgage growth. It's a subtraction, right? Arithmetic. 42:14 42 minutes, 14 seconds But so that uh STP as a segment uh I mean it was a challenging segment for the industry at large as well. uh and 42:21 42 minutes, 21 seconds then while the industry has started to showcase some signs of recovery uh at least on the bounce rate as well as 42:28 42 minutes, 28 seconds forward flow rate are we also experiencing the same because on the disbbursement side when I look at the numbers it still is broadly uh sticky at 42:37 42 minutes, 37 seconds at at at uh at on a on a quarterly run rate level of 300 crown yeah I understand your question see what 42:45 42 minutes, 45 seconds I am uh saying is at a mortgage level we'll look at that growth uh within In the mortgage team we we have the lap 42:53 42 minutes, 53 seconds medium ticket lap and the small ticket lap. So that we will leave it for the year to play out. Uh so at a overall 43:01 43 minutes, 1 second mortgage level we'll still do that growth. 43:05 43 minutes, 5 seconds Okay. Okay. So because Okay. So, so we would try to maybe cover up the if they continue slow down we would try to cover 43:14 43 minutes, 14 seconds up with NTF doing relatively better than FT. Yeah, that's how we will as a strategic you I mean the the uh 43:22 43 minutes, 22 seconds advantage of having multiproducts is is that right when you have a injured product which has come out of a injury 43:29 43 minutes, 29 seconds uh I agree with you it will take some time to get into the 20 uh growth story although we will try it uh but we will 43:37 43 minutes, 37 seconds also be cautious of the quality that we want uh but at overall level first we'll get the mortgages to be at that growth 43:44 43 minutes, 44 seconds uh and if the gold supports then we we deliver the AUM growth of 20 25%. And within the mortgage we see uh how STP 43:53 43 minutes, 53 seconds plays out in Q1 Q2 and then pick up empty lab accordingly. 43:59 43 minutes, 59 seconds Got it. So why I was asking that question is because that that STP as a product also helps us on margin side given the 44:08 44 minutes, 8 seconds relatively better yield versus the empty lab. So uh but yeah got got it got got got got got got got got got got got got got got got got got got got got got got 44:13 44 minutes, 13 seconds got got got got got got got got got got got got got got got got got got got the answer for the same and said for next year with respect to uh while I while I heard that you had preuded about it but 44:20 44 minutes, 20 seconds on the let's say credit cost and RO front what is the let's say FI27 and FI28 target that we have from a 44:29 44 minutes, 29 seconds rangebound perspective if you could highlight u see FI26 was a rebuild year for us uh 44:38 44 minutes, 38 seconds we we had told you it will be a rebuild year and we will work on the credit cost and that was our single biggest promise 44:46 44 minutes, 46 seconds that on FY25 you will see the credit cost being shaved off and uh that's what 44:52 44 minutes, 52 seconds uh we wanted it uh uh played out um in FY27 44:58 44 minutes, 58 seconds uh the credit cost should remain u rangebound uh we should work on the opex 45:06 45 minutes, 6 seconds and between the opex and credit cost we should get uh the upside side to see an ROA better approximately about 20 to 30 45:15 45 minutes, 15 seconds bips betterment of ROA from the average ROA that we have delivered uh this year. 45:20 45 minutes, 20 seconds So the trajectory will be in that direction. Uh so if you're seeing a 20 30 bips uh improvement on ROA uh then at 45:27 45 minutes, 27 seconds a PBT level if I say 40 bips uh that should come from credit cost or opex uh and since it's a year after the rebuild 45:37 45 minutes, 37 seconds year uh we will toggle between these two and figure out where it has to come from with the rest of the rotator tree remaining the same. 45:47 45 minutes, 47 seconds You got it sir. Thank you sir. Thank you so much for answering our questions and good luck for the next part. Thank you. 45:55 45 minutes, 55 seconds Thank you. 45:57 45 minutes, 57 seconds Our next question come from the line of Dwanch through from Acquaintis Wealth Advisory. Please go ahead. 46:04 46 minutes, 4 seconds Hi sir. Thanks for the opportunity. Uh nudable. Yes. 46:09 46 minutes, 9 seconds Yes you are. Congratulations on a good set of numbers. My first question was where do we see our yield settling in F2? So do we I'm talking about the 46:19 46 minutes, 19 seconds origination yields uh where do we see them settling? Will they be uh at this levels or will they improve? 46:29 46 minutes, 29 seconds See as far as yields are concerned um I think um the um the lap yields have 46:37 46 minutes, 37 seconds held. Uh there could be a 10 bibs here and there. Um but they have held um um 46:45 46 minutes, 45 seconds the medium ticket lap as well as the small ticket lap business and they will continue to hold in the next uh year also. uh the gold business is where uh 46:54 46 minutes, 54 seconds you've seen um some yield play out uh in Q3 and Q4 and uh by Q1 you should see uh 47:03 47 minutes, 3 seconds some bit coming back and uh if uh the competition is not active and there is a steady state uh then uh the gold yield 47:13 47 minutes, 13 seconds also should uh come back to the Q2 levels uh that we had seen in FI26. 47:20 47 minutes, 20 seconds Okay. and uh that is helpful. Uh my second question is uh I think we have uh not mentioned our active customer base in our uh new presentation this quarter. 47:31 47 minutes, 31 seconds So uh what would that be and if not that uh I think we are giving a run rate of uh uh customer acquisition every month 47:40 47 minutes, 40 seconds how what is that exactly right now? So uh on gold uh last year we when we 47:48 47 minutes, 48 seconds closed we were at an average customer base of 2.56 lakh uh this year we are 47:54 47 minutes, 54 seconds closing crossing three lakh uh active customer base recording a growth of 17% 48:01 48 minutes, 1 second in the onway basis okay three lakh active customer base I think Q3 we were at 2.7 right 48:09 48 minutes, 9 seconds 2.6 61 67 yeah around 2.7 oh so Q4 increase in Q4 48:16 48 minutes, 16 seconds in Q4 okay that is quite a healthy run what would we attribute that to 48:23 48 minutes, 23 seconds sorry of around 60,000 in Q4 60,000 so we have actually doubled so we were 48:32 48 minutes, 32 seconds adding around 30,000 customers per month if I'm not wrong and now we have added 60,000 this month uh this quarter Right. 48:40 48 minutes, 40 seconds 60,000. Yeah, that's that's a that's a scenario in Q4. So if you see this is a the result of around 48:49 48 minutes, 49 seconds 148 new branches where new branches contributes to whatever disposal that we do that that's new customers, right? 48:57 48 minutes, 57 seconds Okay. Okay. So we would attribute that to the new branches that we have added. 49:01 49 minutes, 1 second Any any other strategy change that we have done? 49:03 49 minutes, 3 seconds 50% of that will get attributed to the new branches. Rest of the rest of rest of it is coming from the existing values. 49:11 49 minutes, 11 seconds Okay. Okay. Fair. And uh my other question was uh are we seeing any any uh asset quality stress in the month of 49:20 49 minutes, 20 seconds April? How is April for us? uh on the side of uh asset quality and in front of uh on the side of growth. 49:31 49 minutes, 31 seconds Uh see as far as uh quarter one is concerned across the industry um the 49:40 49 minutes, 40 seconds collection efficiencies are very different in quarter one. Um these collection kind of collection efficiencies play out across the 49:48 49 minutes, 48 seconds industry. Uh but if you're asking me as far as the industry is concerned and if you're talking about the environment 49:54 49 minutes, 54 seconds whether it is affecting uh we uh the businesses that we are in uh we get a lag effect. So the banks will see that 50:02 50 minutes, 2 seconds kind of uh effect first then it will come to the larger players and then we in the affordable segment will see it 50:09 50 minutes, 9 seconds because our customer is uh in the supply chain slightly um two three uh links um links away. Uh so we will see it later. 50:22 50 minutes, 22 seconds Uh so right now we're not uh seeing anything from the customer side. 50:28 50 minutes, 28 seconds Okay. Okay. Fair. and and the uh average ticket size that we have right now where 50:35 50 minutes, 35 seconds do we see that you know uh see that going like I think we are at 2.7 lakhs do we keep on continuing in uh to 50:43 50 minutes, 43 seconds increase that for our 10 growth or where do we see that going so we we we see flatten it's actually 50:51 50 minutes, 51 seconds depending on the gold prices if you see uh the average has grown from 1.5 lakh to 2.5 2.6 currency flat. This is 50:59 50 minutes, 59 seconds basically a price growth scenario. We have seen similar kind of growth in the gold prices. 51:05 51 minutes, 5 seconds You compare the April April 25 price of gold per gram and the March 26 price 51:13 51 minutes, 13 seconds similar kind of growth we we have we have observed that is reflected in the average price. Okay. Stabilizes will also stabilize. 51:22 51 minutes, 22 seconds Okay. So if price stabilizes uh ATF stabiliz Okay. Fair. Okay. Uh I I think yeah that was quite helpful. Thank you so much. 51:33 51 minutes, 33 seconds Thank you. Our next question comes from the line of Aruven Ravi Chandran from Sundam alternates. Please go ahead. 51:41 51 minutes, 41 seconds Hi uh I hope uh you know I'm audible. Uh thank you so much for the opportunity. 51:47 51 minutes, 47 seconds Um so two questions. One is I know I see you know dealing with this improving uh in you know according to the 51:54 51 minutes, 54 seconds presentation. So like uh I can I safely assume that it is primarily because of the mortgages and uh you know medium 52:02 52 minutes, 2 seconds ticket lap segment uh sorry yeah small ticket and medium ticket segment. That is my first question and second question 52:09 52 minutes, 9 seconds like uh you know like we have built a capacity in the mortgages segment over last you know five six years and especially like you know your 52:17 52 minutes, 17 seconds dispersements have obviously come down because of you know multiple reasons. Um can we expect you know growth to come back without you know meaningfully 52:24 52 minutes, 24 seconds increasing cost? Uh you know sorry yeah that is my second question. Yeah for next two years at least. Yeah. 52:34 52 minutes, 34 seconds So uh the delinquency question uh it is at an entity level that you are seeing but we we also have our delinquencies on 52:43 52 minutes, 43 seconds the mortgages level coming down. uh but that delinquency um at a oneplus level yes we have mortgages which has come 52:50 52 minutes, 50 seconds down um but the entity level that you are seeing uh it has uh all the three businesses which is showing 52:59 52 minutes, 59 seconds and uh as far as uh as far as uh growth is concerned uh yes we are um um as far 53:09 53 minutes, 9 seconds as our internal see our growth had um got u stunted in the small ticket lab 53:16 53 minutes, 16 seconds business because of the uh issue which we faced one and a half years ago. It was our issue and uh which we have resolved and are moving forward. So 53:24 53 minutes, 24 seconds unless there is an environment challenge uh we should continue on the same trajectory that the market is operating at uh so the dispersal should say take the trajectory how the market takes. 53:40 53 minutes, 40 seconds I'm sure like uh my yeah also my question is also on like you know can we like uh see revenue growth here like without meaningful improvement in opex 53:48 53 minutes, 48 seconds growth in this particular segment and know like what kind of like you know RO expansion it could lead to let's say next two to three years that's what I'm 53:57 53 minutes, 57 seconds trying to understand okay yeah so the ROA expansion which I guided was about 20 30 bits uh on uh the FI26 54:07 54 minutes, 7 seconds ROA the FI27 7 ROE you will see a 2030 BIPS expansion and um that expansion as 54:15 54 minutes, 15 seconds I said could come with uh the reduction in both the opex as well as the credit cost. So it could be a play between 54:23 54 minutes, 23 seconds these two and that is how we will continue in FI 208 also. 54:30 54 minutes, 30 seconds So Arvin I'll just add on to what SV said on that see the the medium lap for us is a variable cost business. So 54:38 54 minutes, 38 seconds obviously it is accreative as soon as we get the business right. Uh also we recover more fees than the origination 54:46 54 minutes, 46 seconds cost. So all of that obviously the more medium lab we do the more profitable it is on the small lap if you see the 54:53 54 minutes, 53 seconds volume this year are delicious. It can only get better because the infrastructure is there the people are there gaining vintage the leadership is 55:01 55 minutes, 1 second there. Uh it's a matter of the execution kicking in. uh it's not a matter of whether it is a matter of when and 55:09 55 minutes, 9 seconds obviously the reason we have invested so much is with the optimism that it will supplement our return ratios 55:16 55 minutes, 16 seconds um so you know so so I think the answer to both is of course yes 55:23 55 minutes, 23 seconds sure thank you thank you so much thank you 55:31 55 minutes, 31 seconds our next question come from the line of Rahul Kumar from Wankara Please go ahead. 55:37 55 minutes, 37 seconds Hi. Uh can you help us uh the numbers of write offs uh for the business and in the mortgage business? 55:50 55 minutes, 50 seconds You're talking about uh the quarter. 55:54 55 minutes, 54 seconds Yeah. This quarter and the previous quarter as Yeah. 55:58 55 minutes, 58 seconds Uh so previous quarter I don't think we had anything. uh this quarter we would have had about maybe 14 15 crores roughly. 56:07 56 minutes, 7 seconds Okay. Okay. 56:09 56 minutes, 9 seconds But refcts the credit card cost line reflects the impact of all of these items, right? 56:17 56 minutes, 17 seconds Yeah. Yeah. 56:20 56 minutes, 20 seconds Uh the second question would be uh would it fair to say that now we at the past the point of maximum sleepage in the 56:27 56 minutes, 27 seconds modern day business and then uh Cetris delivers uh I think uh you know uh the great quality in this segment should 56:35 56 minutes, 35 seconds improve from now onwards. 56:41 56 minutes, 41 seconds Yes. Uh see um the uh incremental slippages should show a declining trend 56:47 56 minutes, 47 seconds uh if the environment uh remains steady uh as because we uh we went through our own challenging situation and our 56:56 56 minutes, 56 seconds slippages were because of our own reasons and once we put down uh those own uh reasons behind us uh the rest of 57:06 57 minutes, 6 seconds the things should fall in uh just the way it is operating for the market. So we should align ourselves with the market in terms of the slippages. Uh so 57:14 57 minutes, 14 seconds we should see a a decent story going forward. 57:19 57 minutes, 19 seconds Okay. Okay. Uh so uh Ganes uh can you help us uh with the figures of modest slippage in this quarter and the previous quarter? 57:30 57 minutes, 30 seconds Hey, we don't put it out uh uh you know by segment, right? But if you see that obviously the delinquency metrics 57:39 57 minutes, 39 seconds improving means that there has been a material improvement. Okay. Got it. 57:49 57 minutes, 49 seconds Thank you. Our next question come from the line of Aditi from Securities Investment Management. Please go ahead. 57:56 57 minutes, 56 seconds Hi sir, thanks for the opportunity. Uh firstly on the small ticket lab the book we have of 3,800 KES. So are we making 58:04 58 minutes, 4 seconds money currently on this considering the credit cost which we have incurred this year and the investment in collection in building the teams. Uh so this 3,800 K 58:14 58 minutes, 14 seconds book are we making money on this currently? 58:18 58 minutes, 18 seconds We as we said we are we are reviving we are very uh bullish on this particular business. Um and it will be unfair of us 58:27 58 minutes, 27 seconds uh to answer that question right now when we've told you that we've gone through a tough period on that and we've rebuilt that book. Uh so maybe a year 58:35 58 minutes, 35 seconds later uh we should be in a better position to answer that question. 58:41 58 minutes, 41 seconds Understood sir. But sir going forward now uh this growth and small ticket L is it more dependent on how the external 58:49 58 minutes, 49 seconds environment is for you or it is more on further restructure internal restructuring which we have to 58:56 58 minutes, 56 seconds undertake. uh so the growth is going to be dependent on which of these two factors external environment will always play 59:04 59 minutes, 4 seconds out for every company as far as we are concerned we are behind with our internal issues uh we have already structured the the SD lab business our 59:13 59 minutes, 13 seconds leadership team in each of the state is present uh they have vintage in those states and uh they have started 59:20 59 minutes, 20 seconds delivering uh decent productivity and that productivity needs to move up uh so we know uh the the tracking that we are 59:28 59 minutes, 28 seconds doing uh statewise uh for the dispersals to pick up on the ST lab side and uh we are monitoring uh our collections team 59:37 59 minutes, 37 seconds uh as as you know we had invested into the collection side for the ST lab business verticalized it looked at uh the collection efficiency so all those 59:45 59 minutes, 45 seconds things are uh behind us now so we should align uh with whatever happens in the market um because see we are operating 59:53 59 minutes, 53 seconds in a volatile environment as well as the world as well as far as India is concerned and those kind of things I can't uh give a guidance on but the rest 1:00:01 1 hour, 1 second of the are internal issues I can I'm telling you that we are it's behind us 1:00:08 1 hour, 8 seconds understood sir uh and lastly sir on uh fundra equity now 4.6 six uh any 1:00:14 1 hour, 14 seconds particular level uh beyond which we wouldn't be comfortable and when would we be looking for a fund raise 1:00:23 1 hour, 23 seconds what you are talking about is an area of competitive advantage for us 1:00:31 1 hour, 31 seconds we have room there for expansion I think you should sit back and enjoy the leverage increasing and the roe 1:00:38 1 hour, 38 seconds increasing okay now we we have comfortable covenants uh you know I think I'll just leave it 1:00:47 1 hour, 47 seconds there. Yeah, sure. Uh thanks for answering my question. 1:00:54 1 hour, 54 seconds Thank you ladies and gentlemen. That was the last question for today. I would like to hand the conference over to the management for the closing remarks. 1:01:01 1 hour, 1 minute, 1 second Thank you and over to you. May thank you so much uh for joining in. 1:01:09 1 hour, 1 minute, 9 seconds really appreciate uh and thank you so much for supporting us. 1:01:15 1 hour, 1 minute, 15 seconds Thank you so much sir. Ladies and gentlemen, on behalf of Securities Limited, that concludes this conference. 1:01:22 1 hour, 1 minute, 22 seconds Thank you for joining us and you may now disconnect your lines. Thank you.