Laxmi India Finance Ltd — Q4 FY26

Laxmi India Finance Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7dm9QKUqmII Published: 2 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Lakshmi India Finance Limited Q4 FI26 earnings conference call hosted by Go India Advisers. 0:11 11 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. I now hand the conference over to Mr. 0:28 28 seconds Deepaged from Lakshmi India Finance Limited. Thank you and over to you sir. 0:35 35 seconds Yeah, good afternoon everyone and uh thank you for joining us Lakshmi India Finance Limited Q4 and FI26 0:43 43 seconds earning call on behalf of entire management team. I extend a warm welcome to our investors, analysts, lending partners and stakeholders. 0:53 53 seconds Today in this quorum here we have myself Deepak MD CEO Lakshmi India Finance 1:00 1 minute Limited, PFO Mr. Gopal, Treasury Head Mr. Push Summani, 1:07 1 minute, 7 seconds CBO Mr. Kep Singh and collection head Mr. Sanjay Oja is here with me in this call. 1:15 1 minute, 15 seconds FI26 has been an important and transformational year in the journey of Laxshmi India's finance. During this year, we strengthened our scale, 1:24 1 minute, 24 seconds improved our operating metrics, enhanced our capital position, diversified our liability franchisee, and continued 1:31 1 minute, 31 seconds building a stronger instit institutional foundation for long-term sustainable growth. Most importantly, FY26 was also 1:40 1 minute, 40 seconds our first year as a listed company following as the successful competition of our IPO in August 2025. We believe 1:49 1 minute, 49 seconds this transition is not merely a capital market event but an important milestone in building a stronger more transparent and institutional governed organization. 2:01 2 minutes, 1 second As we entered this next phase of our journey, our focus remains firmly 2:08 2 minutes, 8 seconds centered creating a scalable, resistant and sustainable franchisee that can compound constantly over the long term. 2:17 2 minutes, 17 seconds The broader environment of secured MSME and retail lending in India continues to remain structurally favorable. 2:24 2 minutes, 24 seconds Increasing formalization of small businesses, improving ruler and semi-urbal e economy activity, 2:31 2 minutes, 31 seconds government focus on financial inclusion, rising infrastructure development and growth credit penetration across tier 2 2:39 2 minutes, 39 seconds and tier three market continues to create significant long-term opportunity for organization like us. 2:47 2 minutes, 47 seconds From the beginning, our objective has never been growth at any cost. Our focus always remain on building a highquality 2:56 2 minutes, 56 seconds lending institute with strong governance standards, discipline, risk management, sustainable profitability and long-term 3:04 3 minutes, 4 seconds customer relationship. We believe this philosophy become even more important as we 3:10 3 minutes, 10 seconds continue scaling the business. Today our franchisee has stronger presence across Rajasthan, Gujarat, Madhya Pradesh, 3:20 3 minutes, 20 seconds Chhattygar, Uttar Pradesh and recently we started with Maharashtra also with a deep penetration across semi-urban and 3:27 3 minutes, 27 seconds rural market. We continue focusing on underserved borrower segments including small businesses owners, traders, 3:35 3 minutes, 35 seconds transport operators, self-employed borrowers, and firsttime credit customers who often remain outside the formal lending ecosystem. 3:46 3 minutes, 46 seconds FI26 also marked an another important phase in strengthening our institutional capability. Along with expanding the 3:55 3 minutes, 55 seconds businesses, we continue investing in technology, infrastructure, operating processes, collection architecture, risk 4:04 4 minutes, 4 seconds controls and management bandwidth in building a strong and more scalable operating platform for future. As we 4:12 4 minutes, 12 seconds move into FI25 and beyond, our strategy prioritize remains very clear. First, we 4:19 4 minutes, 19 seconds will continue focus on calibrated and profitable growth. across our secured MSME 4:26 4 minutes, 26 seconds and retail lending portfolio. Second, we will continue our geographical expansion strengthening in measured measure with 4:34 4 minutes, 34 seconds increasing focus on strengthening density with existing market while selectively entity adjacent geographies. 4:43 4 minutes, 43 seconds Third, we remain focused on future improving operating leverage and branch productivity as our distributed network matters. 4:54 4 minutes, 54 seconds matures. Fourth, we will continue strengthening and diversifying our liability franchisee while improving our 5:01 5 minutes, 1 second overall cost of fund over time. And finally, we remain fully committed toward maintaining strong governance 5:09 5 minutes, 9 seconds standard, prudent underwriting practice and discipline risk management as we continue scaling the organization. 5:17 5 minutes, 17 seconds Looking ahead with our strengthening capital base, expanding distribution network, improving funding profile and 5:25 5 minutes, 25 seconds scalable operating platform, we expect a compound growth of AUM at around 30 to 5:32 5 minutes, 32 seconds 35% annually over the medium over the medium terms. As operating leverage improves and branch productivities 5:41 5 minutes, 41 seconds matures, we believe profitability growth can remain stronger with PAT expected growth growth at around 40 to 45% in 5:51 5 minutes, 51 seconds coming years. In current year, FI26 will be continues to be an important year in this long-term growth journey as we 6:00 6 minutes focus on scaling the franchisee in a cal calibrated profitable and sustainable manner. 6:07 6 minutes, 7 seconds Now I request Mr. Gopal Mr. CFO to take uh through the financial and balance sheet performance in a greater detail. 6:18 6 minutes, 18 seconds Gopal over to you. 6:23 6 minutes, 23 seconds Thank you sir and good afternoon everyone. Financial year 26 has been a healthy year for the company from both growth as well as profitability 6:32 6 minutes, 32 seconds perspectives. or assets under management increased to rupees 1626 cr as of March 26 reflecting a strong year-on-year 6:40 6 minutes, 40 seconds growth of over 27%. Our own book also to approximately 1519 cr demonstrating 6:47 6 minutes, 47 seconds healthy organic growth across our core operating markets. Discussment during the year cross rs 821 cr while our 6:55 6 minutes, 55 seconds customer base expanded to more than 42,800 customers. At the same time, our branch network increased to 176 branches 7:04 7 minutes, 4 seconds across six states, reflecting our continued investment toward strengthening distribution reach and improving customer access across semi- 7:13 7 minutes, 13 seconds urban and rural markets. From a profitability standpoint, our net interest income for financial year 26 increased by nearly 39% yearonear to 7:22 7 minutes, 22 seconds rupees 161 cr. The improvement was supported by healthy portfolio growth, improving branch productivity, better 7:30 7 minutes, 30 seconds portfolio mix and stronger operating traction across mature branches. Profit after tax for financial year 26 7:38 7 minutes, 38 seconds increased by over 38% to rupees 49.7 cr despite continued investment toward branch expansion, technology, 7:46 7 minutes, 46 seconds infrastructure, manpower and operating capabilities. 7:50 7 minutes, 50 seconds Our profitability metrics also remain healthy during the year with return of assets at 3.08% and return on net worth at approximately 13.7%. 8:00 8 minutes One of the encouraging developing development during the year was the continuous strengthening or borrowing profile or average cost of borrowing 8:08 8 minutes, 8 seconds reduced to 10.8% from 11.48% in financial 25. At the same time, new expended to 11.26% to 6% reflecting 8:16 8 minutes, 16 seconds improving lender confidence, better pricing discipline and gradual improvement in our funding profile. 8:22 8 minutes, 22 seconds During the year, we continue diversifying our borrowing mix across bank, small financial bank, NBFC and financial institution. Incrementally, 8:31 8 minutes, 31 seconds bank borrowers contributes a large share of the sanction and dispersement which was believed is an important indicator of improving institutional confidence in 8:40 8 minutes, 40 seconds our organization. Another inform another important milestone during financial 26 was upgraded in our external rating 8:48 8 minutes, 48 seconds extent credit rating by acute rating from acute a minus positive outlook to a stable outlook. We believe this reflect our strong capitalization profile post 8:57 8 minutes, 57 seconds IPO LPO operating performance and credential risk management practice. 9:02 9 minutes, 2 seconds Today we maintain relationship with more than 40 lenders across public sector bank, private bank, small financial banks, NBFC and financial institutions. 9:10 9 minutes, 10 seconds This positioning us will for uh further diversification of liabilities and gradual reduction in borrowing cost over 9:17 9 minutes, 17 seconds the medium term. Our capital position also improved significantly during the year. Net worth increased sharply to approximate 465 cr following the IPO and 9:26 9 minutes, 26 seconds internal network while our capital adacy ratio grew to over 26% providing us with adequate headroom to support future 9:34 9 minutes, 34 seconds growth. From an assets quality perspective, while the broader industry environment witness some modernation in collection efficiency across certain 9:42 9 minutes, 42 seconds borrow segments or portfolio performance continue to remain reasonably stable and controlled considering the scaleup achievement during the year cross NPS 9:50 9 minutes, 50 seconds stood at 2.13% and net NPS stood at 1.09% as of Mar 26. We continue maintaining the potential profing buffer 9:58 9 minutes, 58 seconds and remain focused on early warning, identification, discipline, underwriting and collection efficiency improvement. 10:03 10 minutes, 3 seconds Our balance sheet continue to remain adequately capitalized with comfortable liquidity and as a well- matched LM profile which we believe position us 10:13 10 minutes, 13 seconds well for future growth opportunity. With this I would now request for our business head to discuss operational education customer segment and business 10:20 10 minutes, 20 seconds in initiative in greater detail. Thank you. 10:27 10 minutes, 27 seconds Thank you Gupal and good afternoon everyone. 10:32 10 minutes, 32 seconds Our operating model continues to remain deeply focused on localized execution, customer relationship and disciplined 10:40 10 minutes, 40 seconds sourcing across semi-urban and rural markets. 10:44 10 minutes, 44 seconds Unlike standardized lending models, our approach combines technology enabled process with deep local market understanding. 10:53 10 minutes, 53 seconds A branch team maintains close engagement with borrowers, enabling stronger sourcing quality, better collections, 11:01 11 minutes, 1 second improved customer retention, and more effective underwriting outcomes. 11:07 11 minutes, 7 seconds Today, our franchisee operates through 176 branches across six states with strong presence in tier 2 and tier three 11:15 11 minutes, 15 seconds markets. We continue following a clusterbased expansion strategy that help us building local market 11:21 11 minutes, 21 seconds understanding, operating efficiency and stronger customer connectivity. A branchled model remains one of the key 11:29 11 minutes, 29 seconds strength of the organization. Branches functions not only as a sourcing center but also as a local underwriting, 11:38 11 minutes, 38 seconds servicing, collection hubs. These create stronger accountability and improves borrower engagement throughout the loan 11:46 11 minutes, 46 seconds life cycle. Our customer focus continues to remain centric and around underserved 11:53 11 minutes, 53 seconds and underpenitate penetrated borrowers including MSME small traders transporters self-employed 12:01 12 minutes, 1 second customers first-time borrowers with nearly 37% of our borrowers continues to be first-time borrowers reflecting our 12:09 12 minutes, 9 seconds positioning within financially underserved customers. 12:14 12 minutes, 14 seconds At the same time, we continue maintaining a second secured and conservative portfolio profile supported 12:20 12 minutes, 20 seconds by collateral backed lending and prudent loan to value ratios. Over the last few years, we have also invested 12:29 12 minutes, 29 seconds significantly towards strengthening our technology operating infrastructure. 12:35 12 minutes, 35 seconds Today, our sourcing, underwriting, servicing and collection ecosystem increasingly digitalized through integrated with LOSS, LOS and LMS 12:45 12 minutes, 45 seconds platforms, TKI integrations, automated workflows, CRM systems, digital collections, infrastructure and realtime 12:53 12 minutes, 53 seconds monitoring capabilities. These investments are help helping us improving turnaround time, strengthen 13:00 13 minutes risk monitoring, enhance customer experience, building long-term operating scalability 13:07 13 minutes, 7 seconds and our underwriting framework continues to remains conservative and highly processdriven. We combine centralized 13:16 13 minutes, 16 seconds credit assessment with local market intelligence and field level verification processes. This hybrid approach help us evaluating borrowers 13:24 13 minutes, 24 seconds cash flows more effectively particularly with informal and semiformal customer segments. 13:31 13 minutes, 31 seconds From a collection perspective, our model continues to remain intensive and relationshipdriven. 13:39 13 minutes, 39 seconds We maintain frequent borrower engagement through branch level monitoring, field follow-ups and early warning systems. We 13:48 13 minutes, 48 seconds believe this operating model remains an important differentiator in managing portfolio quality across semi-urban and 13:56 13 minutes, 56 seconds rural borrower segments. During financial year 26, we also continued selected expansion into newer markets 14:06 14 minutes, 6 seconds uh including Maharashtra while continuously strengthening density within our existing operating geographies. 14:14 14 minutes, 14 seconds Going forward, our focus will remain on improving productivity across mature branches, maintaining underwriting 14:22 14 minutes, 22 seconds discipline, enhancing operating efficiency and scaling the franchisee in the calibrated and sustainable manner. 14:30 14 minutes, 30 seconds With this, I would now request moderator to open the floor for questions and answers. Thank you. Thank you everyone. 14:39 14 minutes, 39 seconds Thank you very much. So, we'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 14:47 14 minutes, 47 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 14:56 14 minutes, 56 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 15:08 15 minutes, 8 seconds The first question is from the line of Deep Suchetti from Mana Finance. Please go ahead. Hi, I'm audible. 15:17 15 minutes, 17 seconds Yes sir, you are. Please go ahead. 15:19 15 minutes, 19 seconds Uh you're guiding to uh towards sustained 30 to 35% AUM growth given the current operating environment and increasing competition in MSME lending. 15:29 15 minutes, 29 seconds What gives you the confidence of maintaining this growth trajectory without diluting any underwriting standards? 15:37 15 minutes, 37 seconds So actually if you go to see our footprints and uh Laxshmi India we have we are presence in only a five states in Bhat. So we believe that we can uh grow 15:46 15 minutes, 46 seconds uh we can have more branches in a uh other state where uh the where the requirement or where the businesses 15:54 15 minutes, 54 seconds requirement is there. So business loans requirement structured and assembly loans are requirements are there. So we can open more branches over there and we 16:01 16 minutes, 1 second can maintain this uh uh uh dispersement pace and maintain the growth in a Asian size. Being seeing of course this uh 16:10 16 minutes, 10 seconds market uh scenario that war and all but uh that is little bit challengeable but yes uh we believe that uh this will be 16:18 16 minutes, 18 seconds this will this should get over uh very fast and we should uh we should be in a a clear stage to uh do a business as regular we were doing as before. 16:29 16 minutes, 29 seconds So we already have predominantly in Rajasthan and uh uh somewhere also have a presence in Gujarat and Madhya 16:37 16 minutes, 37 seconds Pradesh. Which are the other states which where you're trying to expand and uh uh won't that carry a risk of uh you 16:45 16 minutes, 45 seconds know uh getting into a new state because in the same state you have uh you you know uh you know how the demographic is. 16:54 16 minutes, 54 seconds So actually we have presence in six states right now. So that is Rajasthan is a mother state of course uh having a bigger portfolio. Beside that Gujarat MP 17:04 17 minutes, 4 seconds MP is the second and third will be the uh uh Gujarat but we have we have a presence in Uttar Pradesh also Chhattisgarh also and recently with 17:12 17 minutes, 12 seconds Maharashtra. So two the major states we have recently opened we have uh recently we have come up and before going into 17:18 17 minutes, 18 seconds the uh any states we do lot of R&Ds cross check comparison peer comparison and all. So we are comfortable uh we 17:26 17 minutes, 26 seconds have seen the comfortable uh dispersement pace we have seen the comfortable connection in this uh state Uttar Pradesh and Maharashtra. So that 17:34 17 minutes, 34 seconds is why we have entered and we have opened the a few branches uh in Maharashtra and uh Uttar Pradesh and moving ahead we will be uh adding more branches in this these states only. 17:45 17 minutes, 45 seconds Enter I want to add here. 17:48 17 minutes, 48 seconds Yeah please. So our uh uh our expansion model is very robust actually. So we are not just like opening a branch anywhere 17:57 17 minutes, 57 seconds wherever the competition is. So we first uh evaluate in terms of the collection in terms of the risk in terms of the 18:04 18 minutes, 4 seconds negative areas negative customers. So all these uh reports are being submitted by everyone and then after there is a 18:12 18 minutes, 12 seconds collective decision on the branch opening. So first we are not just opening the branches we are opening with cautious approach. 18:21 18 minutes, 21 seconds Right. So what is the break even of each branch? If you can uh let us know that you know we're opening a new branch what aum it breaks even. 18:32 18 minutes, 32 seconds So uh there are categories of branches. 18:35 18 minutes, 35 seconds So we have differentiated into three categories tier 1, tier two and tier three. So some uh resource and some uh premise area and everything is defined 18:44 18 minutes, 44 seconds as for the uh as for the uh the prospect at the that particular place. uh uh 18:51 18 minutes, 51 seconds however uh there is around 7 to 8 months uh is the time to take the break even where the expenses of in the branch uh 18:59 18 minutes, 59 seconds and the and the income at the branch level uh set off each other. 19:06 19 minutes, 6 seconds But what is the loan? Uh uh how much loan does the branch have to disperse to actually break even? You might be having 19:13 19 minutes, 13 seconds a around 1.5 to 2C cr is the uh is the range where we we come up with the break even point. 19:24 19 minutes, 24 seconds Okay. So once the branch reach around 2C cr uh the break even uh happens quicker, right? Yeah. Yes. 19:31 19 minutes, 31 seconds Okay. So a large part of your customer base consists of semi- urban and underbanked uh borrowers. How vulnerable 19:38 19 minutes, 38 seconds is the portfolio to local economic disruption, rural slowdown or political events at the regional level? Also now 19:45 19 minutes, 45 seconds with El Nino coming in, how much of your portfolio is actually dependent on the agricultural sector? If you can also mention that. 19:54 19 minutes, 54 seconds See uh these natural uh calamities, natural problems actually impact all the sectors. But uh everywhere there's a 20:02 20 minutes, 2 seconds pros and cons. So the broader market scenario, the broader prospect doesn't uh impact the smaller customers uh 20:09 20 minutes, 9 seconds immediately. So that is the benefit uh where we are serving to the rural and semi-rural urban semi- urban areas customers and small ticket size 20:17 20 minutes, 17 seconds customers, small uh MSME customers like uh traders, like manufacturers, like service providers. So these are those 20:26 20 minutes, 26 seconds those borrowers who are not directly impacted through the bigger calamities like uh like a war is happening and and 20:33 20 minutes, 33 seconds all these things. Uh but yes uh vulnerable these these customers are these segment is vulnerable. So that's 20:40 20 minutes, 40 seconds why the rate of interest is there and we have the robust mechanism for the underwriting. 20:47 20 minutes, 47 seconds So every customer is being visited by the uh credit manager. He uh he talks with the customer as well as the neighbors as well as the two references 20:55 20 minutes, 55 seconds in the nearby uh area and he visit to the business promise visit to the customer where the customer that the 21:03 21 minutes, 3 seconds property is which he's giving us as a collateral. So by visiting the mand mandatory visit with the rcu process 21:12 21 minutes, 12 seconds with the audit process uh technical legal everything is happening with as per the industry uh norms. So by this we 21:20 21 minutes, 20 seconds are mitigating this risks you are talking about. 21:25 21 minutes, 25 seconds I would like to add one thing in this that in a area where we are operating still there is a joint family system. So in a family let's say five six people 21:33 21 minutes, 33 seconds are staying together father mother father two son and their wives. So everybody is contributing and everybody is contributing towards the e towards 21:41 21 minutes, 41 seconds the EMI. Like in rural areas you will find uh housewives also working either at home or cattle or at farm or 21:49 21 minutes, 49 seconds whatever. So everybody is contributing and everybody is aware of the loan. So that is the best part that there the number of hands are more uh to pay the 21:57 21 minutes, 57 seconds EMI right. So how do you balance your growth versus asset uh quality in the market 22:05 22 minutes, 5 seconds where competit competitive in intensity is increasing and the pricing discipline is weakening. Also when you said that 22:12 22 minutes, 12 seconds you know uh you're uh in the same family a lot of people are contributing to the EMIs how do you avoid loan evergreening 22:19 22 minutes, 19 seconds or in that case so by taking all into the deal so we are fetching the bureau reports also with 22:27 22 minutes, 27 seconds all the family members so we are taking the income as well as the liability of all the family members. So by this we are we can avoid the liability part 22:35 22 minutes, 35 seconds after after deduction of liability we can count for the loan eligibility. 22:41 22 minutes, 41 seconds No I'm talking about loan evergreening or as well as uh you know how are you maintaining your asset quality uh where you're you know trying to grow. 22:53 22 minutes, 53 seconds So uh generally what customer does customer uh do ever gaining uh by taking other loan actually from where they have 23:00 23 minutes not not taken the loan currently. So for that I explained that we are taking all the family members we are patching all the sales of all the uh all the 23:09 23 minutes, 9 seconds borrowers and finding out how much is the current liability. 23:13 23 minutes, 13 seconds So so that customer cannot be overleveraged. 23:18 23 minutes, 18 seconds Second thing uh by uh by doing the credit underwriting with such a such a 23:24 23 minutes, 24 seconds robust uh like uh mechanism uh we are maintaining very healthy asset asset 23:31 23 minutes, 31 seconds life uh asset quality right thank you and yes yeah yeah please and yes uh in 23:41 23 minutes, 41 seconds this retail uh retail segment if you are targeting a small ticket size customers so there's no I that quality kind of risk. 23:52 23 minutes, 52 seconds Thank you. The next question is from the line of Maj Ahmed from Pinpoint X Capital. Please go ahead. 24:00 24 minutes Sir. Yes. 24:04 24 minutes, 4 seconds Thank you for the opportunity. So my first question is as larger banks and fintex aggressively target MSME customers, where exactly do you believe your competitive most lies today? 24:17 24 minutes, 17 seconds See uh competition is definitely there but uh competition is healthy. So we are also learning from the market uh how the 24:25 24 minutes, 25 seconds market is doing how the underwriting is so there's a difference in 5 years back and now so 5 years back there was no process there was no uh no underwriting 24:35 24 minutes, 35 seconds standard even in the industry also. So this competition is healthy and uh everyone is learning because of that and 24:42 24 minutes, 42 seconds improving the themselves. So that's why I can say that that the competition never actually hampers you. This 24:49 24 minutes, 49 seconds motivates you to do the business on because MSM is anyways growing. So everyone is having their their 24:55 24 minutes, 55 seconds particular uh uh target segment and the space in in that segment. So as as and when the MSM is growing definitely 25:04 25 minutes, 4 seconds everyone is will participate in in this growth. This I would like to add that as you said bank or fintech so banks 25:11 25 minutes, 11 seconds generally uh these customers where who are uh we call them the NIP customers so non-income proof customers so generally 25:18 25 minutes, 18 seconds banks or fintech companies you can say can't don't uh take uh don't take calls on such uh uh customers because they 25:27 25 minutes, 27 seconds need a proper proper documentations like proper income proof and all. So basically here what we are different from others is like we evaluate we go to 25:35 25 minutes, 35 seconds their shops cross check with their businesses and then we evaluate their their income. So this is a total uh you 25:43 25 minutes, 43 seconds can say lot of technology we are using here to evaluation of the for uh their income. So that that is that can be done that is done that can be done NBFC like 25:52 25 minutes, 52 seconds us if you compare with fintex so fintex generally are taking more into unsecured side. So we are 100% 98% book hour is 26:00 26 minutes secured. So we are 100 we are doing that and the banks if you say so they they need the documents and also where uh these customers are not able to provide 26:09 26 minutes, 9 seconds uh uh documents uh which which is required. So being such a uh field we 26:16 26 minutes, 16 seconds are more uh you can say that we have a more better uh uh cover towards these customers. 26:27 26 minutes, 27 seconds So do you have your own uh personnel in your company or the branches who go and do the physical visits or how does you 26:35 26 minutes, 35 seconds make sure that before you give loan to such customers? 26:39 26 minutes, 39 seconds Yes, physical visit is compulsory to everyone every customer whom we are considering for the for the underwriting as well as we are doing the FIS also and 26:48 26 minutes, 48 seconds RC also we have a separate credit create team whose underwriting is each and every 26:55 26 minutes, 55 seconds case. So each and every case is visited cross checks and everything is done. 27:01 27 minutes, 1 second Okay sir. Uh got it sir. And uh now as you expand geographically how are you ensuring underrating consistency across 27:10 27 minutes, 10 seconds branches and avoiding local level credit elusions and what go ahead. So actually uh if you if you 27:19 27 minutes, 19 seconds talk about the state level every state is having a difference in terms of the customer segment as well as the asset also. So we we used to formulize a local 27:29 27 minutes, 29 seconds level policy like we have entered into into Maharashtra recently. So Maharashtra is having a different property papers which which is coming. 27:36 27 minutes, 36 seconds So Pakistan is different, Gujarat is different, MP is different, UP is different and Maharashtra is also different as of now. So we used to make 27:44 27 minutes, 44 seconds a localized policy with the competition feedbacks, competition interviews. So by this we are actually entering into the 27:53 27 minutes, 53 seconds new market and we are operating as as as like uh as as per the local uh expertise. So when we are entering into 28:02 28 minutes, 2 seconds Maharata, we are adding local people. We are we are we are building a local level policy there. Local level acceptance of 28:10 28 minutes, 10 seconds the property papers. Legal also we are we are localized there and technical also we are localized. So everything is as per that state. 28:21 28 minutes, 21 seconds Got it sir. Sir, like what proportion of your portfolio today would consist of cash flow assessed borrowers versus fully documented income borrowers? 28:32 28 minutes, 32 seconds See as of now we have uh mostly customers with the assessment income only. uh recently we have started with a 28:39 28 minutes, 39 seconds with a prime product of prime where we are taking the uh this uh uh documents for the at least for applicant or cooper 28:48 28 minutes, 48 seconds 1% documented income must be there but other person can be added on the basis of assessment so I can say the major portion is of assessed income program 28:56 28 minutes, 56 seconds only s finally like in case if some of the 29:03 29 minutes, 3 seconds loan fears are unable to pay or something and it gets into NP how do you recover those 29:11 29 minutes, 11 seconds how do you manage that in case see we have different collection team and uh litigation team also reports to 29:20 29 minutes, 20 seconds the collection so once uh the hard once the case move to the hard bucket uh there's a separate team who moves to uh 29:27 29 minutes, 27 seconds to collect the the amount and then after if it is harder then it it goes to the litigation team and we start the legal process immediately so We have a 29:36 29 minutes, 36 seconds complete framework for the legal initiation process. So when and how this legal initi can be initiated and what 29:43 29 minutes, 43 seconds level and at what NPA says this uh legal can be initiated. There's a complete framework for that. 29:51 29 minutes, 51 seconds Okay. Got it. 29:54 29 minutes, 54 seconds Go ahead. Also we used to take uh a lady as or a guaranter mandatory as a ND and 30:02 30 minutes, 2 seconds we take the SPDC either of a lady or or external guaranter. So we also utilize that tool to recover the amount. 30:11 30 minutes, 11 seconds Okay. So got thank you sir. All the very best. Thank you. Thanks. 30:19 30 minutes, 19 seconds Thank you. The next question is from the line of Sharma from Pam Capital. Please go ahead. 30:28 30 minutes, 28 seconds Thank you for the opportunity. Uh I had uh questions principally around uh the opex uh and the borrowing cost. Firstly 30:36 30 minutes, 36 seconds on the borrowing cost uh I understand our current cost has uh improved over the year and presently it stands close 30:43 30 minutes, 43 seconds to 10.8% 8% on a blended basis but what would be the incremental borrowing cost and how do we see it the overall blended 30:51 30 minutes, 51 seconds cost uh moving over the course of FI27 so basically beside Pmani uh I'm heading 30:59 30 minutes, 59 seconds the Treasury vertical uh so basically our cost of borrowing for the last year was uh 11.48 that has been came down to 31:07 31 minutes, 7 seconds 10.80 but the incremental cost stood to around 10.25 to 10.30 30. So ideally we 31:14 31 minutes, 14 seconds are more focusing towards the bank borrowing. So the last year that is the la uh last closed financial year we have 31:22 31 minutes, 22 seconds borrowed majorly from the banks PSU banks, private banks and small finance bank at least from the NBFCs. So the 31:29 31 minutes, 29 seconds major focus area is to build up the borrowings from the larger PSO and private banks. 31:36 31 minutes, 36 seconds Got it. Understood. Uh secondly uh on the operating expenses and this ties in with the growth strategy which was 31:44 31 minutes, 44 seconds mentioned uh we uh presently would be having a cost income ratio of say around 50% or so and uh the growth that we are 31:54 31 minutes, 54 seconds targeting going forward uh we had mentioned earlier that it is going to come from adding new branches but uh given the expansion that we have done 32:01 32 minutes, 1 second during the course of last year there would be a lot of headroom in the existing branches also just wanted to understand that what kind of growth 32:09 32 minutes, 9 seconds potential in the overall AM can we see from the existing branches and uh how much of that like uh also if 32:17 32 minutes, 17 seconds you could layer your response with what is the current mix of AM from top state top three states and how do we see that evolving going forward? 32:29 32 minutes, 29 seconds Yeah. So actually uh we have uh 176 branches in which uh 18 we have added uh last year only and uh we have started 32:38 32 minutes, 38 seconds operation in Uttar Pradesh uh last year and Maharashtra also. So we we we will be we are having a now these branches 32:46 32 minutes, 46 seconds which we have opened in uh Uttar Pradesh is now getting matured and of course we have done we have done expansion in 32:53 32 minutes, 53 seconds existing Gujarat MP and Chhattisgarh also. So there also we have done expansion. So we believe that these branches are now uh ready to uh uh ready 33:02 33 minutes, 2 seconds to earn now in position like they are they are having a good uh manpower good now strength local uh people are aware 33:10 33 minutes, 10 seconds of the company now they have a good login and all so we believe that this uh uh 30 35% growth what I have told we can 33:19 33 minutes, 19 seconds be we'll be able to achieve from the existing and yes uh the branches which are getting mature and plus uh we will 33:25 33 minutes, 25 seconds as as we have added to major the state Maharashtra also. So we will be adding some more branches over there also in the same uh urban and semi- urban areas 33:34 33 minutes, 34 seconds and from there also we be they will be also contributing towards a growth uh and to touching this uh target. So this 33:40 33 minutes, 40 seconds is uh plan uh what we have uh said so for the coming years and uh uh what was 33:47 33 minutes, 47 seconds next uh another question. Uh so basically this three states if you go if you want to say so Rajasthan is of course having a 33:55 33 minutes, 55 seconds maximum branches so Rajasthan has a maximum AUM percentage then second will be Madhya Pradesh and then uh third will 34:03 34 minutes, 3 seconds be Gujarat and broadly what would be the composition if you don't mind sharing composition for 34:11 34 minutes, 11 seconds uh the I mean what would be the percentage of AM uh in these states percentage of AUM so yeah and how product going forward. 34:22 34 minutes, 22 seconds One take percentage of AM is from Rajasthan how much 82% is from Rajasthan around 11% is from MP and 7% is from Gujarat. 34:33 34 minutes, 33 seconds Got it. The rest is from other state. Thank you so much. 34:41 34 minutes, 41 seconds Thank you. The next question is from the line of Aryan Amera from Hollani Venture Capital Fund. Please go ahead. 34:51 34 minutes, 51 seconds Uh good afternoon sir. First of all congratulation for your amazing financial results. So first my question is your NIM expanded meaningfully 35:00 35 minutes despite portfolio seasoning and competitive in intensity. How sustainable are current spreads over the medium-term spreads? 35:15 35 minutes, 15 seconds Can you repeat your question please? 35:18 35 minutes, 18 seconds Sir, your NIM has expanded meaningfully despite portfolio seasoning and competitive intensity. How sustainable 35:26 35 minutes, 26 seconds are current spreads over the medium-term spreads? 35:35 35 minutes, 35 seconds So basically uh hi this push. So basically uh the yield is any which is in the same lines you can see in the 35:42 35 minutes, 42 seconds last 3 four years uh we are not reducing majorly into the yield portion. Secondly there is a decline in respect of the 35:49 35 minutes, 49 seconds inward cost of borrowing. So this is one of the catch that uh the nim will be on I can say the same level or it may be 35:57 35 minutes, 57 seconds increasing going forward as well. So other fees income we are more also focusing on uh getting the things into the uh top lines to be added into that 36:05 36 minutes, 5 seconds way. So apart from them uh so we are more focused toward other income as well going forward. 36:16 36 minutes, 16 seconds Okay sir. So sir does that mean uh your loans uh volume is increasing? 36:26 36 minutes, 26 seconds Okay sir. So sir my Okay sir. So my second uh second question is while comparing this quarter with 36:33 36 minutes, 33 seconds corresponding previous period of this year only 9 months the company part has increased from 29.10 cr to 49.68 crores 36:42 36 minutes, 42 seconds and revenue has grown from uh 226 cr to roughly 320 crores but sir your customer 36:50 36 minutes, 50 seconds base has increased only by 4.8% during the same period mean uh compared to quarter 3 to quarter 4. Uh could the 36:58 36 minutes, 58 seconds management explain the key factor driving such strong growth in revenue and profitability despite relatively uh modest uh customer growth. 37:21 37 minutes, 21 seconds Sorry to interrupt. We are unable to hear you sir. If uh if we compare uh quarter quarter increase in name that is 37:29 37 minutes, 29 seconds one impact in quarter fourth we have done around of rupes 41 cr. So on the account 37:37 37 minutes, 37 seconds of 8 cr 66 lakh are included in name that is why our name is increased in quarter quarter bases quarter 3 to quarter four despite of inclusive of customer base. 37:51 37 minutes, 51 seconds Sir can you uh repeat sir because uh do you receive any new orders or what sir I didn't get it exactly 37:59 37 minutes, 59 seconds in quarter 4 we have done a dear transaction we have sold around 41 cr uh uh pool under dear transaction and on 38:08 38 minutes, 8 seconds account of this we uh uh recognize upfront profit on account of 8 cr 66 lakh rupees this is included in our 38:16 38 minutes, 16 seconds revenue name that is why our name is high in compared than uh customer base. 38:30 38 minutes, 30 seconds Oh okay sir. So uh sir but my question is sir how your part has increased uh 38:36 38 minutes, 36 seconds above uh 40% roughly uh only compared to this quarter. 38:43 38 minutes, 43 seconds Um this is Pat including the impact of also uh upfront profit on the arrangement that is why Pat is showing 38% uh growth. 38:55 38 minutes, 55 seconds Okay sir. Thank you sir. 38:58 38 minutes, 58 seconds Thank you. Participants who wishes to ask a question please press star and one. 39:05 39 minutes, 5 seconds The next question is from the line of Rajna Meta from SK Advisor. Please call. 39:12 39 minutes, 12 seconds Hi, good afternoon. Am I audible? Yes, please. Yes, you are. Please go ahead. 39:18 39 minutes, 18 seconds Hi. Hi. Thank you for giving me this opportunity. Also, many congratulations on a great set of number. Uh, I joined 39:26 39 minutes, 26 seconds the call bit late. So, apologies if my questions are bit repetitive. So my first question is uh which specific 39:33 39 minutes, 33 seconds borrower segments or geographies are witnessing higher stress currently and how much of the stage 2 portfolio do you 39:41 39 minutes, 41 seconds expect could potentially migrate into stage three over the next 12 months? 39:49 39 minutes, 49 seconds Ma'am uh uh our major portfolio is in uh Rajasthan. So that is almost 80%. So if you're going to see number-wise of 39:56 39 minutes, 56 seconds course uh Rajasthan uh number will be higher uh uh as compared to but if you're going to see uh the uh uh 40:05 40 minutes, 5 seconds security which we are having the LTV when which we are maintaining all NPA uh cases is around uh almost 35 to 38%. So 40:15 40 minutes, 15 seconds we are very much in a good position to recover it and uh as this all asset what we are having as a security is an appreciable asset because we are in we 40:23 40 minutes, 23 seconds takes property which is self- consumed either a residential or a commercial property we are taking from the customers as a security. So these 40:31 40 minutes, 31 seconds customers are doesn't leave this property any cost. So they take this property back and all. So we believe that uh uh we we the we have a handsome 40:40 40 minutes, 40 seconds uh recovery on our budgets also. So uh we we we we have a strong uh uh LTV and we have a strong collateral with us. Uh 40:48 40 minutes, 48 seconds so we we believe that uh our uh false Ross will not be there any at any time in in past also and in future also. 40:58 40 minutes, 58 seconds Okay. Uh and sir uh your PCR on stage three assets appears relatively moderate at about I guess 49%. 41:07 41 minutes, 7 seconds How comfortable are you with the current provisioning buffers given the pace of the portfolio growth? 41:15 41 minutes, 15 seconds So as we are having a as I told we having a secured uh portfolio and with the LTV uh as I told uh overall LTV on 41:22 41 minutes, 22 seconds the book uh stands for around 45%. And on NPA 32 35 to 38%. So we have we have 41:29 41 minutes, 29 seconds very strong uh strong feelings that we will be able to uh receive the get the money back. And if you want to see the 41:37 41 minutes, 37 seconds compare with the companies also the 49% is a very healthy PCR what we are maintaining on this secured SEC because 41:44 41 minutes, 44 seconds our 98% book is almost secured. So uh that is uh why uh why uh if you want to 41:51 41 minutes, 51 seconds see with other compared P companies also we are healthy in PCR. 41:55 41 minutes, 55 seconds Okay. Okay. Thank you. And uh also you mentioned about increasing participation from banks in incremental borrowings. Uh 42:04 42 minutes, 4 seconds could you discuss how lender conversations and sanction terms have evolved post IPO and rating upgrade also 42:12 42 minutes, 12 seconds uh how much further room do you see for reduction in cost of borrowing over the next next two to three years sir? Uh so 42:20 42 minutes, 20 seconds that's beside Pumani I had the treasure vertical for the company. So basically uh previous to I can say that the IPO 42:28 42 minutes, 28 seconds the challenge was the debt to equity is the one of the factor uh which was there uh that now it has become ease off of uh 42:36 42 minutes, 36 seconds taking the borrowings. So banks and other lenders were adding the risk premium uh before than that more risk 42:43 42 minutes, 43 seconds premium I can say that uh post IPO that has become easier. So post IPO I can say that our cost of borrowing has been uh 42:52 42 minutes, 52 seconds in the range of 10 to 10.25 in between of that that we are uh raising as of now and the blendedly for the year is stood to 10.80. 43:02 43 minutes, 2 seconds Secondly we are more focusing towards the bank borrowings. So previously before rating upgradations so there are 43:09 43 minutes, 9 seconds certain limitations I can say on the per bank uh on AUM basis uh what they can uh 43:16 43 minutes, 16 seconds extend to us so with the rating accreditation so we can uh get an ample of fund uh what we will be requiring for this year. So I can say that the we are 43:25 43 minutes, 25 seconds decently placed in respect of uh getting the funds uh on a uh 10 to 10.25% 25% uh 43:32 43 minutes, 32 seconds rate of interest and going forward I can say the rating applications that has happened in the later uh week of uh 43:39 43 minutes, 39 seconds March 26 only. So this year we will be getting an eventually benefit of around 20 to 25 bips uh keeping the gradual 43:47 43 minutes, 47 seconds scenarios in place as well if in case there is no rate hikes. Uh that that is it from my side. 43:54 43 minutes, 54 seconds Okay. Okay. Thank you so much for detailed answers. I'll join the queue in case of more questions. Thank you and all the best. Thank you. Thanks. Thanks a lot. 44:03 44 minutes, 3 seconds Thank you. Participants who wishes to ask a question, please press star and one. 44:10 44 minutes, 10 seconds The next question is from the line of var from purple and vortex ventures. Please go ahead. 44:17 44 minutes, 17 seconds Yes sir. Thank you for the opportunity and congratulations for a good set of details. Sir, uh just I joined a little bit late so sorry for being repetitive 44:24 44 minutes, 24 seconds sir. Uh uh sir you have clarified this upfall issue was a one-off and a secured one. Now what is the expected timeline 44:32 44 minutes, 32 seconds and quantum of recovery for F27 sir I mean and what study said credit cost should we assume? 44:39 44 minutes, 39 seconds So basically uh this uh there was a balance of 19 crores and we have made a provision of almost 11 K. 44:46 44 minutes, 46 seconds And uh we are in a healthy talk with uh with the management and uh we believe that uh we'll be able to uh get some 44:55 44 minutes, 55 seconds good orders from the court also in our favor as our Pia companies have already got a order in their favor. So uh we are 45:03 45 minutes, 3 seconds expecting that uh within the coming quarters we should be able to receive uh get this money back uh uh from these uh from up money and uh the provision 45:11 45 minutes, 11 seconds amount what we have created that is 11 cr will be directly added uh to the pack once we receive the 45:19 45 minutes, 19 seconds and there is no such uh you know DA is now uh in uh in our system anymore beyond this no if you want to see DA all across 45:28 45 minutes, 28 seconds India so it's a very uh normal transaction and it It it it is like every NBFC banks and everyone is uh do 45:35 45 minutes, 35 seconds this transaction and there's a uh if if you to see the uh default ratio that is also very minimal in a DA. So but this 45:43 45 minutes, 43 seconds is a this is special uh you can say that because DA is very secured uh it is uh very very much secured uh thing. So uh 45:51 45 minutes, 51 seconds but this is a like exceptional you can say that uh this event has happened in India and uh through which we have we have also got a hurt. 46:01 46 minutes, 1 second So what kind of you know sort of growth rate now you know you sort of looking at for fi 27 28 I mean in terms of the 46:09 46 minutes, 9 seconds near-term trend now uh for advances so if you go to see the past trend uh we have growth uh we have shown uh we have 46:18 46 minutes, 18 seconds uh given a growth of 33% cy year from last four to five years so and now we 46:25 46 minutes, 25 seconds have after getting uh after getting a IPO listed after capital raise also we are now more stronger more uh better position. Now visibility is good. The 46:34 46 minutes, 34 seconds rating has got upgrade. The cost of fund has gone down the we now we have we have open our branches in other states also. 46:41 46 minutes, 41 seconds Now we are visible on footprints and other branches. So we believe that uh we uh uh we we will be able to uh uh 46:48 46 minutes, 48 seconds maintain a better uh position that what we are doing at like 30 35% I have I believe that with this uh growth rate we 46:57 46 minutes, 57 seconds can expect in a coming years and uh we have still so many uh uh untouched states are pending so we can have our 47:04 47 minutes, 4 seconds footprints over there and uh we can have make a great business. So since it's a branchled model of lending I mean 47:14 47 minutes, 14 seconds physically that is still sort of manageable to I mean continue this kind of a growth right? 47:20 47 minutes, 20 seconds Yes. So we are uh there is no so this business what we are doing is can be done by the team by the team 47:27 47 minutes, 27 seconds support only and with the brand support because these customers are uh NIP customers non-incroved customers. So we 47:34 47 minutes, 34 seconds believe we uh we whenever wherever we uh uh start operate uh start dispersement so where where we open up branches first 47:42 47 minutes, 42 seconds and then we evaluate their uh income and then on the process of that we uh do it. 47:48 47 minutes, 48 seconds So for this all they do required a manpower. So basically this is little bit uh uh the uh main opex cost is a 47:54 47 minutes, 54 seconds manpower cost but yes uh the per per person employ uh productivity is good over there and uh good demand is there 48:03 48 minutes, 3 seconds and uh less being less competition in specifically this product what we are doing so we we believe that uh it's a 48:11 48 minutes, 11 seconds good good potential market for us right I mean which new skates do you now intend to expand to so recently we have added Maharashtra. 48:20 48 minutes, 20 seconds Uh so six states we are already in and uh but we have a lot of uh opportunity in Maharashtra and UP uh there but yes 48:28 48 minutes, 28 seconds uh slowly gradually we will be uh coming up with more uh states uh where we can have a potential uh lend customers for 48:37 48 minutes, 37 seconds us and the cost of borrowing has come down you know quite interestingly to 10.8 eight now and so what realistic 48:45 48 minutes, 45 seconds funding was the trajectory do you see over the next 12 to 24 months? 48:50 48 minutes, 50 seconds Yeah. Hi hi parani I had the vertical. 48:57 48 minutes, 57 seconds Uh so we are uh trying harder so that the cost of borrowing can be uh declined by another 20 25 pips going forward as 49:05 49 minutes, 5 seconds well but you can see that uh since from uh last year that is 11.48 was the cost of borrowing that that has been reduced 49:11 49 minutes, 11 seconds to 10.80 zero and post IPO uh the leverage is one of the factor uh which is have become ease off for the company 49:19 49 minutes, 19 seconds uh where the risk premium that has been inculcated in the rate of interest uh that seems to be uh in a favor of the 49:27 49 minutes, 27 seconds company uh going forward basis as well as the rating upgradation was also one of the factor that will be factoring into the rate of interest for this year. 49:36 49 minutes, 36 seconds So I believe that uh we will be able to convert and translate into the rate of interest going forward uh by another I 49:44 49 minutes, 44 seconds can say 20 25 bips on a minimum side and depends upon the scenario also in place. 49:51 49 minutes, 51 seconds Interesting unders also improved I mean the return on equity to 13.7 despite the up money issue. Now so what is a sustainable 50:00 50 minutes medium-term ro we should work with sir without compromising let's say underwriting quality 50:06 50 minutes, 6 seconds so basically uh uh I can say since last four five years uh in the peak roe that 50:14 50 minutes, 14 seconds we have uh reached to 15 plus that is 15.7273 odd percentage and in the medium 50:21 50 minutes, 21 seconds terms I can say that we believe that it will be above 12% 12 and a half% on a minimum Right. 50:28 50 minutes, 28 seconds So this sort of 13.7 that we've hit now I mean give and take this is what we can 50:35 50 minutes, 35 seconds on an average basis expect going forward to continue and probably yeah 50:42 50 minutes, 42 seconds yeah paris so basically the since the equity infusion has recently done so the translation into the return on equities is not very faster 50:50 50 minutes, 50 seconds but you can see the rota is there the return on asset is above three so we will be trying and harder to maintain the ratios above three uh in a going 50:59 50 minutes, 59 seconds forward basis so that the translation from the return on asset to debt to equity will be translated factor into 51:07 51 minutes, 7 seconds that to uh that return on equity uh on a maximum node that we see. So right sir now you know given 51:16 51 minutes, 16 seconds of this uncertain situation on you know energy and you know this entire geopolitical stuff etc. Are you seeing any stretch trends in the you know poor 51:25 51 minutes, 25 seconds MSM or self-employed borrower you know based across geographies that you are operating so precisely we are in a 51:33 51 minutes, 33 seconds geography or I can say that the customer segment that we are getting to tier 2 tier three cities of India uh where the 51:40 51 minutes, 40 seconds customers are not dependent upon majorly on uh I can say that the uh factors that are involved into this scenario that is 51:48 51 minutes, 48 seconds oil or uh other things because we are catering to a customer for cash flow-driven businesses and businesses 51:55 51 minutes, 55 seconds are majorly uh into the rural segment which are not uh primary dependent upon the oil other things or since our 52:04 52 minutes, 4 seconds vehicle portfolio is 9% that is very minuscule and uh so I can see that the going forward basis as well so this 52:10 52 minutes, 10 seconds scenario will not impact our kind of business as of now yeah so so the loan book stress also may not prop up and at 52:19 52 minutes, 19 seconds the same time we'll be able to grow as Yeah, if in case that if in case the oil prices are higher uh maybe uh there may 52:28 52 minutes, 28 seconds be a slightly slowdown in there or business segment as well I mean to say the uh the customer segment that we are 52:35 52 minutes, 35 seconds catering but not on a harder note that that is there right sir and just last query man now you know we are trying to 52:43 52 minutes, 43 seconds scale towards 3,000 5,000 cr aum what operational or underwriting controls are being strengthened to ensure you know the growth Tooth quality remains intact. 52:53 52 minutes, 53 seconds Yeah. Over to over to you sir. 52:57 52 minutes, 57 seconds Sir currently the underact is happening on the uh application where everything is is in control and can be monitored. 53:07 53 minutes, 7 seconds Secondly, we have also uh introduced the RCU process last last to last year and so every document which other than see 53:15 53 minutes, 15 seconds first we are uh fetching all the details of KYC uh through the uh integration and uh verifying that online also doing the 53:24 53 minutes, 24 seconds banking verification. Other than that if any document like salary certificate which is not which cannot be verified 53:30 53 minutes, 30 seconds online can be verified through RCU then after CK CQIC is having then Cersei is 53:38 53 minutes, 38 seconds having so every every aspect which has to be covered under under the underwriting process with legal 53:45 53 minutes, 45 seconds technical so legal we are having external vendors and then again that legal is being vetted by the internal legal team technical also the valution 53:54 53 minutes, 54 seconds part is also happening through the external vendors. Then there's internal uh team of civil engineers who are vetting the valuation, checking the valuation amount also for boundaries. 54:05 54 minutes, 5 seconds Everything is being uh as per the industry norms and everything is on a digital mode. So customer application is 54:14 54 minutes, 14 seconds happening on the on the mobile application. Then after PD is happening, so credit manager is mandatory going to the customer's place for the PD visit. 54:23 54 minutes, 23 seconds So then PD is happening on the mobile application. Then the case is moving on the on the on the system to the next next authority for the decision making. 54:31 54 minutes, 31 seconds Then the disbbursement is also processing through the system. The only which is left is the signing of e-signing of the agreement which is 54:40 54 minutes, 40 seconds happening on a manual basis physical mode as of now and very very recently we will be coming up with the agreement 54:47 54 minutes, 47 seconds signing process through the e- mode also electronic mode also. So the complete infrastructure is already being 54:54 54 minutes, 54 seconds developed as and when if there is any requirement as per the industry or as per the new learning we will also implement that. 55:03 55 minutes, 3 seconds Very thank you so much. Thank you. Thank you. 55:08 55 minutes, 8 seconds Thank you ladies and gentlemen. Due to time constraints that we will take that as the last question for today. With that I now hand the conference over to management for closing comments. 55:25 55 minutes, 25 seconds Yes. Any more questions? Uh no sir, I have hand it over to you for any closing comments if you have. 55:33 55 minutes, 33 seconds Okay. So what I believe uh that we have uh thank you first of all for all the joinies and uh thanks for questions and 55:43 55 minutes, 43 seconds uh we believe that uh in Lakshmi uh we have a very uh we have made a very robust systems lot of AIS we are using 55:52 55 minutes, 52 seconds lot of technology we have using so and to do that we are able to uh grow uh we are able to grow and we will be able to 55:59 55 minutes, 59 seconds grow uh in a good good pace and fast pace keeping all the compl appliances and keeping all the risk ahead and taking care of the portfolio numbers and 56:08 56 minutes, 8 seconds all. Uh but uh yes uh this uh is all because of all the team members all who are working hard uh with us and uh due 56:17 56 minutes, 17 seconds to all these uh and and uh thanks to our investors also who have made a trust on us and because of all these factors uh 56:26 56 minutes, 26 seconds we are able to come to this uh stage and the future also uh we will be uh I can say that we will be able to achieve the 56:34 56 minutes, 34 seconds numbers what we are committing here and we'll work hard and we will uh be able to make the good uh numbers, good PAT, 56:43 56 minutes, 43 seconds good AUM size and good presence in across Bhat. So that all uh from my side and uh if anything is left uh you can mail us, we'll be happy to reply on it. 56:56 56 minutes, 56 seconds Thank you very much ladies and gentlemen. On behalf of Goindia Advisers, that concludes this conference. Thank you for joining us and you may now disconnect your lines.