Paisalo Digital Ltd — Q4 FY26

Paisalo Digital Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UI-gniVz41Q Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Pisalo Digital Limited, Q4 and FY 2026 earnings conference call 0:10 10 seconds hosted by Ariant Capital Markets Limited. 0:13 13 seconds Let me draw your attention to the fact that on this call discussion will include certain forward-looking statements which are predictions, 0:21 21 seconds projections or other estimates about the f future events. This estimate reflects management's current expectations about the future performance of the company. 0:33 33 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 concludes. 0:42 42 seconds From the esteemed management, we have with us today Mr. Shantanu Agarwal, Deputy Managing Director, Mr. Harish 0:51 51 seconds Singh, executive director and chief financial officer. Mr. Gorov Chave, Chief Business Officer, 1:00 1 minute I now hand over the call to Mr. Shanton Agarwal, Deputy Managing Director for his opening remarks post which we can open the floor for question and answers. 1:12 1 minute, 12 seconds Thank you and over to you sir. 1:15 1 minute, 15 seconds Good afternoon everyone and thank you for joining us today for Pesalo Digital's earnings call for the fourth quarter and full year ended March 31st 2026. 1:25 1 minute, 25 seconds I hope you have all had the opportunity to review our earnings presentation which has been shared earlier on the exchanges and available on our website. 1:34 1 minute, 34 seconds Joining me on this call is Mr. Harish Singh our executive director and chief financial officer and Mr. Gorov Chave our chief business officer. 1:43 1 minute, 43 seconds We appreciate your continued interest in Peslo and look forward to discussing our performance and outlook with you as we finish this financial year on a strong note. 1:54 1 minute, 54 seconds India's macroeconomic environment continues to provide a constructive and enabling backdrop for businesses like ours. Domestic demand remains resilient, 2:04 2 minutes, 4 seconds public investment is sustained and the pace of economic formalization across rural and semi-urban India continues to accelerate. 2:14 2 minutes, 14 seconds The government's continued policy focus on financial inclusion, MSME development and digital public infrastructure is 2:22 2 minutes, 22 seconds creating a structurally larger and more accessible market for credit at the last mile. Precisely the segment where Peslo 2:30 2 minutes, 30 seconds operates and has built deep capabilities over three decades. 2:35 2 minutes, 35 seconds Demand for small ticket credit remains healthy and broad-based, supported by working capital needs of micro 2:42 2 minutes, 42 seconds entrepreneurs and small businesses, rising economic activity across informal and semiformal segments and the growing 2:50 2 minutes, 50 seconds acceptance of formal credit channels even in India's tier three, four and five geographies. 2:58 2 minutes, 58 seconds the rapid expansion of digital public infrastructure, greater availability of customer and transaction level data and 3:05 3 minutes, 5 seconds deepening penetration of formal financial products are collectively making credit delivery more efficient, more targeted and more scalable. 3:15 3 minutes, 15 seconds On the regulatory front, the environment remains supportive of responsible credit expansion with continued emphasis on 3:23 3 minutes, 23 seconds inclusion, digital enablement, and prudent underwriting. All of which are central to Pesalo's operating philosophy. 3:32 3 minutes, 32 seconds While the global markets continue to monitor evolving geopolitical developments, including tensions in the Middle East and their implications for 3:39 3 minutes, 39 seconds commodity prices and capital flows, India's domestic fundamentals remain relatively insulated and resilient. 3:49 3 minutes, 49 seconds We believe this combination of structural demand, increasing formalization and a supportive policy architecture continues to create a 3:58 3 minutes, 58 seconds highly favorable long-term opportunity for disciplined technology lenders like Peslo. 4:06 4 minutes, 6 seconds Now coming to the quarter's performance against this backdrop, I'm pleased to report that Peslo delivered a strong and broad-based finish to FI26. 4:17 4 minutes, 17 seconds one that reflects both the strength of our underlying business model and the early fruits of our strategic investments across distribution, technology and liabilities. 4:29 4 minutes, 29 seconds Our assets under management increased to rupees 61,9 million registering 17% 4:36 4 minutes, 36 seconds year-on-year growth reflecting steady expansion across income generation group and MSME lending segments. Disbburments 4:44 4 minutes, 44 seconds for the quarter stood at rupes 13,440 million indicating sustained borrower demand and healthy sourcing momentum. 4:54 4 minutes, 54 seconds We reported highest ever quarterly profit after tax of rupees 722 million in quarter 4 FI26 up by 56% yearonear 5:03 5 minutes, 3 seconds supported by strong income growth and improving operating leverage. 5:08 5 minutes, 8 seconds This quarter's performance also demonstrates that we are scaling the business while continuing to build long-term capabilities across distribution liabilities and technology. 5:20 5 minutes, 20 seconds We expect these investments to enhance productivity, improve cost efficiency and support a stronger earnings trajectory going forward. 5:32 5 minutes, 32 seconds A defining pillar of our strategy has always been last mile reach and FI26 saw meaningful deepening of our distribution architecture. 5:42 5 minutes, 42 seconds During the quarter, we added 427 new touch points, taking our total network to 5,299 5:49 5 minutes, 49 seconds touch points across 22 states, comprising 422 branches, 3,381 5:57 5 minutes, 57 seconds distribution points, and 1,496 business correspondents. 6:02 6 minutes, 2 seconds Our branch network itself expanded from 402 to 422 during the quarter, adding 20 6:10 6 minutes, 10 seconds new branches and strengthening our onground franchise visibility. 6:15 6 minutes, 15 seconds Our customer franchise crossed approximately 16 million borrowers, a milestone that reflects the growing trust that underserved and financially 6:24 6 minutes, 24 seconds excluded households are placing in Pesalo's high-tech hightouch model. This franchise has been built over three decades of consistent presence and responsible lending. 6:35 6 minutes, 35 seconds From a geographic standpoint, our quarter 4 AUM mix reflected a strong contribution from Maharashtra and Uttar 6:42 6 minutes, 42 seconds Pradesh, underscoring the success of our calibrated expansion strategy. 6:48 6 minutes, 48 seconds Maharashtra share expanded by 430 basis points to 21.70% while Uttar Pradesh grew by 122 basis points to 14.12%. 6:59 6 minutes, 59 seconds Among other key markets, Delhi continued to lead with a 28.03% share followed by Hana at 14.94%, 7:07 7 minutes, 7 seconds Rajasthan at 13.14% and other states collectively contributing 8.07%. 7:15 7 minutes, 15 seconds While our portfolio remains firmly anchored by strong positions in our core markets, we are steadily deepening our presence across new geographies to build 7:24 7 minutes, 24 seconds a more broad-based diversified and resilient footprint over time. 7:30 7 minutes, 30 seconds FY26 AUM remained diversified across business segments with food and hospitality contributing 24%. Agri and 7:39 7 minutes, 39 seconds allied agree and street vendors contributing 14% each. Heavy industries 7:45 7 minutes, 45 seconds 11% technology 8% health and education 5% textiles 4% vehicles 3% and other segments 17%. 7:58 7 minutes, 58 seconds The portfolio continues to maintain a balanced presence across MSME and income generation categories and we remain 8:06 8 minutes, 6 seconds focused on further broadening the business mix to support sustainable and well diversified growth. Overall, 8:15 8 minutes, 15 seconds MSMEN loans accounted for 71% of the portfolio while income generation loans contributed the remaining 29%. 8:24 8 minutes, 24 seconds Our BC channel remains an important part of this model, helping us deepen local reach, strengthen customer access, and support scalable last mile delivery. 8:35 8 minutes, 35 seconds During the quarter, we also expanded our banking as a service platform through our business correspondent partnership 8:42 8 minutes, 42 seconds with Indian Overseas Bank, further strengthening our ability to deepen customer reach and expand banking access at the last mile. 8:53 8 minutes, 53 seconds Technology and AI are no longer just enablers at Tesla. They are becoming core to how we originate, underwrite, service, and collect. 9:03 9 minutes, 3 seconds Over the past year, our focus has been building an integrated AIELD operating backbone that drives both scale and efficiency. 9:13 9 minutes, 13 seconds Today, AI is embedded across customer acquisition, credit assessment, servicing, collections, and portfolio 9:22 9 minutes, 22 seconds monitoring supported by a strong data and analytics foundation. 9:27 9 minutes, 27 seconds During quarter 4, we processed approximately 1 lak 60,000 loan applications through AI enabled 9:34 9 minutes, 34 seconds onboarding pipelines while our AI assisted workflows handled over 1 lakh 9:40 9 minutes, 40 seconds 25,000 servicing cases and 2 lak 25,000 debt management cases. In parallel, we 9:48 9 minutes, 48 seconds automated nearly 2 lak 50,000 quality checks, significantly improving consist consistency and control. 9:56 9 minutes, 56 seconds On customer acquisition side, we scaled AIEL outreach through 1 lak 50,000 outbound calls, two live text bots and 10:05 10 minutes, 5 seconds five outbound voice bots, improving lead, sourcing efficiency and conversion rates. 10:12 10 minutes, 12 seconds Front-end digitization and AI assisted development are compressing turnaround times improving field productivity and 10:19 10 minutes, 19 seconds reducing per operating per unit operating costs. 10:23 10 minutes, 23 seconds The operating leverage from these investments is beginning to show up in our financial metrics. Despite meaningful expansion in our branch 10:31 10 minutes, 31 seconds network and strong double-digit AUM growth in FY26, headcount was down 3% during the year. an early but tangible 10:40 10 minutes, 40 seconds sign that our technology and AI investments are translating into real productivity gains and a more efficient cost structure. 10:49 10 minutes, 49 seconds We are also retraining and reskilling employees whose roles are evolving through technology consistent with our long-standing commitment to our people 10:58 10 minutes, 58 seconds and our belief that human judgment and field connectivity remains irreplaceable in the markets we serve. 11:06 11 minutes, 6 seconds Our business intelligence unit which reports directly to senior management continues to embed analytics into every 11:13 11 minutes, 13 seconds layer of decision making from loan pricing and resource allocation to geo level risk management and early warning 11:20 11 minutes, 20 seconds systems. We believe this data operating infrastructure is a key differentiator and will continue to support 11:27 11 minutes, 27 seconds productivity gains, sharper execution and a more efficient scaling as we enter the next phase of growth. 11:35 11 minutes, 35 seconds FI26 also marked a significant year of progress on our liability franchise. We completed our made in ECB issuance of 11:43 11 minutes, 43 seconds USD $15 million, a historic milestone that reflects growing international investor confidence in Peslo's credit 11:52 11 minutes, 52 seconds story and opens a new and diversified avenue of long-term funding. We also reinforced our credit standing through 12:00 12 minutes dual rating of double A stable, further broadening our access to institutional capital at competitive terms. 12:08 12 minutes, 8 seconds Asset quality remained healthy and stable during the quarter with GNPA and NNPA improving to 0.76% 12:16 12 minutes, 16 seconds and 0.61% respectively, underscoring the strength of our underwriting and collection framework. 12:23 12 minutes, 23 seconds At the same time, our cost of borrowing moderated to 10.22% reflecting continued progress in 12:30 12 minutes, 30 seconds liability optimization and funding diversification. 12:34 12 minutes, 34 seconds Together, these trends support the rel resilience of our balance sheet and position us well to sustain profitable growth with disciplined risk management. 12:46 12 minutes, 46 seconds As we look ahead, our three-year strategic road map road map is centered on four interconnected priorities. 12:53 12 minutes, 53 seconds Deepening last mile reach through an expanding distribution architecture, broadening our product suite, entering new markets with data discipline while 13:02 13 minutes, 2 seconds consolidating with existing geographies and continuously optimizing our capital structure through liability diversification, lending partnerships 13:10 13 minutes, 10 seconds and reducing cost of funds. Under underpinning all of this is our growing use of AI and automation which we 13:18 13 minutes, 18 seconds believe will be the single most important driver of operating leverage, productivity improvement and cost efficiency over the mid to long term. 13:27 13 minutes, 27 seconds In conclusion, Q4 FI26 and FI26 as a whole represent a landmark chapter in Peslo's journey. A year where we 13:36 13 minutes, 36 seconds delivered strong prof financial performance while continuing to build capabilities, partnerships and infrastructure that will define the next 13:44 13 minutes, 44 seconds phase of our growth. We remain deeply committed to our founding mission of empowering India's unserved and underserved communities with fair, fast, 13:54 13 minutes, 54 seconds and inclusive credit. and we are more confident than ever in our ability to scale this mission in a responsible technology-led and financially sustainable manner. 14:04 14 minutes, 4 seconds We thank our investors and stakeholders for their continued trust and support as we build a more resilient technology-led 14:11 14 minutes, 11 seconds and financially inclusive company. With this, I'll now hand over to Harish Singh, our executive director and CFO to 14:20 14 minutes, 20 seconds take you through the financial performance in further detail. Thank you. Thank you Shhatuji. 14:27 14 minutes, 27 seconds Good afternoon and thank you. I am pleased to present Pasaro's distal financial performance for the fourth quarter and financial year 26. We closed 14:37 14 minutes, 37 seconds quarter 4 financial year 26 with a record asset under management of 61,09 million registering a healthy 17% 14:46 14 minutes, 46 seconds year-on-year growth. This performance reflects steady and broad-based expansion across our core income generation and MSME lending segments. 14:56 14 minutes, 56 seconds Disustments during the quarter stood at 13,440 million, reaffirming the strength of 15:04 15 minutes, 4 seconds underlying credit demand and the consistent momentum across our sourcing channels. Total income for the quarter 15:11 15 minutes, 11 seconds rose to 2,609 million, registering a strong 35% year-on-year growth, while 15:19 15 minutes, 19 seconds net interest income increased to 1,733 million, up 61% year-on-year. This 15:26 15 minutes, 26 seconds performance is a reflection of the scale up in our portfolio, stable yields, and continued improvement in funding 15:33 15 minutes, 33 seconds efficiency. Coming to profitability, I am pleased to share that we have delivered our highest ever quarterly 15:40 15 minutes, 40 seconds profit after tax of 722 million, a robust 56% year-on-year growth. Profit 15:47 15 minutes, 47 seconds before tax stood at 970 million, reflecting the benefits of disciplined cost management. Even as we continue to 15:56 15 minutes, 56 seconds invest meaningfully in distribution and technology to support future growth, our return ratios remain healthy with return 16:05 16 minutes, 5 seconds on equity at 13.2% and return on asset at 3.8%. 16:10 16 minutes, 10 seconds A clear demonstration of the strength of our business model and our ability to generate profitable growth while continuing to invest for the long term. 16:19 16 minutes, 19 seconds Moving on to the fullear performance for the year ended financial year 26. Pasalo has delivered a strong and consistent 16:27 16 minutes, 27 seconds set of financials underpined by discipline execution across forcing underwriting and balance sheet management. Cumulative dispersments for 16:36 16 minutes, 36 seconds financial year 26 came in at 42,622 million growing by approximately 15% 16:43 16 minutes, 43 seconds yearonear supported by sustained demand across our income generation and MSME landing segments along with improving 16:51 16 minutes, 51 seconds productivity across channels for financial year 26 total income increased to 9437 million translating into a 16:59 16 minutes, 59 seconds healthy 22% year-on-year growth driven by steady AUM expansion and improve funding efficiency. Net interest income for the 17:08 17 minutes, 8 seconds year grew to 5,694 million, a 29% year-on-year increase, which has flowed through to accumulated 17:17 17 minutes, 17 seconds profit after tax of 2372 million for financial year 26, clearly reinforcing our ability to scale the 17:25 17 minutes, 25 seconds business profitably. On the asset quality front, our portfolio continues to remain Christine and best-in-class 17:33 17 minutes, 33 seconds supported by rigorous credit assessment processes and a well- embedded collection architecture. Gross NPA and 17:40 17 minutes, 40 seconds net NPA improved yearon-year by 23 bps and 15 bps respectively settling at well contained level of 0.76 and 0.61%. 17:51 17 minutes, 51 seconds In addition, our collection efficiency of 98.5% reflects strong repayment behavior 17:59 17 minutes, 59 seconds and effective portfolio oversight across the book. Turning to the balance sheet, it remains strong, liquid and well 18:06 18 minutes, 6 seconds capitalized providing a resilient reform to fund future growth. As of financial year 26, total borrowing is stood at 18:13 18 minutes, 13 seconds 43,597 million supported by a diversified and steadily improving liability profile. 18:21 18 minutes, 21 seconds The cost of borrowing moderating to 10.2% reflecting our enhanced credit standing and disciplined liability management. 18:30 18 minutes, 30 seconds Leverage continues to be prudent at a debt to equity ratio of 2.43x while our capital adequacy ratio stood at robust 18:38 18 minutes, 38 seconds 35.8%. 8% together offering ample headroom to scale the business, a strong loss absorption capacity and a 18:47 18 minutes, 47 seconds resellance to pursue growth opportunity through any market cycle. With sustained demand across our core segments, 18:55 18 minutes, 55 seconds improving funding efficiency, pristine asset quality, and a robust risk and operating framework, PASO enters 19:02 19 minutes, 2 seconds financial year 26 from a position of strength. We remain confident in our ability to deliver calibrated, 19:10 19 minutes, 10 seconds profitable and sustainable growth while continuing to create long-term value for all our stakeholders. Thank you. And 19:17 19 minutes, 17 seconds with that, let me hand over the call to the moderator. Thank you so much. 19:25 19 minutes, 25 seconds Ladies and gentlemen, we will now begin with the question and answer session. 19:29 19 minutes, 29 seconds Anyone who wishes to ask a question may click on the raise end icon from the participants tab on your screen. 19:38 19 minutes, 38 seconds We'll take our first question from Sandy Ma of Evaluate Research. 19:46 19 minutes, 46 seconds Please unmute your microphone. 19:48 19 minutes, 48 seconds Yeah. Uh good afternoon. Can you hear me? Yes, please. 19:52 19 minutes, 52 seconds Yes. Uh congratulations on a very strong set of results. Uh the loan yields were up. Um cost of borrowing is down. So 20:01 20 minutes, 1 second overall your uh net interest margin improved nicely. uh can you sustain your net interest margin at these levels? 20:09 20 minutes, 9 seconds What is the outlook uh for this going forward please? 20:18 20 minutes, 18 seconds Thank you. Thank you Sandy uh for taking the question. You know we had already guided for uh the name that we have 20:26 20 minutes, 26 seconds already pre-achchieved at the current levels. So we are slightly we have you know overachieved our uh expected guidance for the full year basis. We 20:35 20 minutes, 35 seconds continued to say that you know we are going to maintain the same 6.5% sort of a NIM level even in the upcoming financial year as against the 6.83 that 20:44 20 minutes, 44 seconds we are doing. So uh our target remains the same and we hope we uh you know overachieve the name in the upcoming financial year too. 20:54 20 minutes, 54 seconds Okay. um uh your the NPA uh trends uh have trended down as you pointed out uh 21:02 21 minutes, 2 seconds but given the war situation uh I believe you don't have much uh exposure to exports but what trends are you seeing 21:09 21 minutes, 9 seconds uh withmemes and your overall book currently uh you know in the months of April and in May. 21:19 21 minutes, 19 seconds So if you look at the global trend that is taking place uh largely it is largememes or the midc corporate segment 21:27 21 minutes, 27 seconds that we see which is having uh difficulty in terms of their export account primarily due to the cost of 21:34 21 minutes, 34 seconds insurance cost of freight and the movement stoppage through the straight of hormones. Even though if you look at what has been happening the straight of 21:42 21 minutes, 42 seconds hormos has technically been open but is flowing only at a 5% capacity because of the uh because of how the Iranian regime 21:50 21 minutes, 50 seconds has been treating it over there. So we don't have any large concentrated exposure on any of our borrowers which are largely dependent on uh getting 21:59 21 minutes, 59 seconds proceeds from there. So from that point of view we are considerably better looking in terms of the industry outlook as the 22:06 22 minutes, 6 seconds same. I believe that the MCG segment may face some kind of difficulty in this uh quarter in in comparison to the previous 22:15 22 minutes, 15 seconds quarter but that will totally depend on how the situation prevails from an insurance and freight movement point of view. Nothing for us to get affected by. 22:24 22 minutes, 24 seconds Okay. 22:24 22 minutes, 24 seconds And one final question can you update us on the um uh the expansion of the cool lending with the state bank of India 22:31 22 minutes, 31 seconds please? So uh we have completed our side of compliance uh that was required from the RBI RBI circular point of view. 22:41 22 minutes, 41 seconds There are largely two relationships uh that are live. One is based on the completely backto-backdriven option one 22:49 22 minutes, 49 seconds of co- lending platform while the other is based on the new framework guidelines that are there. So pesalo's compliance on both the methods has been completed. 22:58 22 minutes, 58 seconds one of the methods we are ex we are expecting it to get live within this quarter itself while the second process we are awaiting the bank's confirmation 23:07 23 minutes, 7 seconds on their compliance of the RBI circular so I'm expecting that uh the second one also should get live uh in uh by the end 23:15 23 minutes, 15 seconds of the quarter one of the new fiscal year or early next quarter great uh congratulations on the strong 23:22 23 minutes, 22 seconds set of results and again u I would like to uh commend you on your IR effort. Uh 23:30 23 minutes, 30 seconds the presentation is quite detailed and um that's great for us shareholders. Thank you. 23:36 23 minutes, 36 seconds Thank you. Thank you. 23:41 23 minutes, 41 seconds Participants who wish to ask a question, they may click on the raise and icon from the participants tab. 23:53 23 minutes, 53 seconds We'll wait for a few minutes until the question Q assembles. 24:04 24 minutes, 4 seconds We'll take Andra Partil an individual investor for his question. 24:12 24 minutes, 12 seconds Mr. Partil, please unmute your microphone. Yeah. M. Yes, please. Please go ahead. 24:20 24 minutes, 20 seconds Yeah. Uh I have a couple of questions. 24:22 24 minutes, 22 seconds So my first question would be as I understand about uh 93% of a portfolio is secured. So from a business and 24:30 24 minutes, 30 seconds reporting perspective I wanted to understand how the NPA are being recognized. Uh are the NPA primarily arising from the unsecured portion of 24:38 24 minutes, 38 seconds the portfolio or are loans being classified as NPA first and then due to regulation and then subsequently 24:45 24 minutes, 45 seconds recovered through collateral and collection. Uh is is that the only question? 24:56 24 minutes, 56 seconds Uh one more I have one more question but if you could answer this first. 25:00 25 minutes So the NPA is not is recognized on both the segments combined and the process of NPA recognition and Iraq norms as 25:08 25 minutes, 8 seconds defined by the RBI are being followed in both the cases. In case of a secured judgment when the account turns NP, we follow the necessary surfacey guidelines 25:16 25 minutes, 16 seconds as laid by the uh by the act and then we proceed with the same. 25:24 25 minutes, 24 seconds Okay, that's thanks for that answer. And my second answer question would be so what percentage of the outstanding loan value are we typically able to recover 25:33 25 minutes, 33 seconds through the collateral realization once a loan turns into NPA? And additionally, how does a recovery rate vary across different asset classes or borrower segments? 25:44 25 minutes, 44 seconds So in ter so we typically follow a 50 to 60% LTV on the cases secured cases. So 25:53 25 minutes, 53 seconds that would typically mean that on a 100 rupee kind of a lending we are having an asset in our hand of 50 to 60%. That is 26:01 26 minutes, 1 second 50 to 60 rupees is what is being lended on a 100 rupee asset. So when there is a immovable collateral that is in place, 26:08 26 minutes, 8 seconds we are able to make principle plus interest plus if there is some kind of additional penal or late fees that can 26:15 26 minutes, 15 seconds be made that is there wherein the necessary RBI circular is followed on the same. In cases where the security is on a movable asset basis then there is 26:24 26 minutes, 24 seconds an IDV calculator that is run which is the insurance depreciated value. We typically give LTV on the IDV value of 26:32 26 minutes, 32 seconds the asset and are able to typically uh exit the position while recovering the principle plus a normalized yield which 26:41 26 minutes, 41 seconds matches or out or outpaces our cost of funds on the asset that is being financed in case of an unsecured port. 26:54 26 minutes, 54 seconds Sorry sir, we are unable to hear you. 26:59 26 minutes, 59 seconds So over there we are able to typically plus some marginal coverage of our cost of funds on assets which grow which have been NPA for more than one year. 27:14 27 minutes, 14 seconds Okay. Yeah. Got it. So basically uh on fully collateralized basis you are able to recover 100% right or close to 100%. 27:23 27 minutes, 23 seconds So the investor or the company never suffers a a principal loss or a cost of fund loss. Typically the loss is only on 27:30 27 minutes, 30 seconds the yield on the name. So assuming I have a 100 rupee outstanding with my cost of fund I am supposed to let's say 27:37 27 minutes, 37 seconds recover here 110 rupees and my spread on it is about another 6%. So typically 27:44 27 minutes, 44 seconds let's say I'm supposed to recover 116% I will only suffer a name loss never a principle plus interest loss. So I will 27:51 27 minutes, 51 seconds end up recovering between 1100 uh between 111 rupees 112 rupees in doesn't matter what asset it is whether it's 27:58 27 minutes, 58 seconds immovable movable or only a primary collateral. 28:03 28 minutes, 3 seconds Got thank you. Uh and my last um because of the West Asia crisis, are you still sticking to your guidance of 28:12 28 minutes, 12 seconds uh doubling aum and your net profit in the next three years? 28:21 28 minutes, 21 seconds I was unable to hear you. Can you please repeat the question? 28:24 28 minutes, 24 seconds Yeah. Uh so due to the West Asia crisis, are you still sticking to your uh guidance of doubling the AUM income and the net profit in the next three years? 28:32 28 minutes, 32 seconds Yes, absolutely. So we uh last quarter showcased how we are going to do it and this quarter on a full year basis we have reaffirmed the guidance. So we are 28:41 28 minutes, 41 seconds sticking with the same guidance for the upcoming three fiscal years. 28:45 28 minutes, 45 seconds Okay. Yeah. Got it. Uh one last question. Any plans for the promoter to increase their stake further this financial year. 28:54 28 minutes, 54 seconds The promoters increased last fiscal year about 4.7% on a year-to- date basis of the stake. The promoters have also been 29:01 29 minutes, 1 second increasing their stake in the company for the past three years wherein the journey started by issuance of warrants of 180 crores followed by two years of 29:10 29 minutes, 10 seconds creeping acquisition of 5% and last year being 4.7%. 29:14 29 minutes, 14 seconds Uh as per as to this year uh we cannot comment on the same uh but we let uh the markets know whenever we do something. 29:25 29 minutes, 25 seconds Thank you for your answers. Yes. Thank you so much. 29:33 29 minutes, 33 seconds We'll take our next question from the line of Sapna K of TNA Partners Miss Upna. Please go ahead. 29:47 29 minutes, 47 seconds Miss Upna, please go ahead and ask your question. We are unable to hear you. Please unmute your microphone. 29:58 29 minutes, 58 seconds We'll wait for the connection from Miss Sapna. Hello. Can you hear me now? Yes. 30:05 30 minutes, 5 seconds Yeah. Um firstly congratulations for great set of numbers sir. Uh I had two questions. Uh one is so as we see that 30:14 30 minutes, 14 seconds the industrywide small ticket size uh MIF um MI so they are in stress is real 30:21 30 minutes, 21 seconds sir. So given palo has around 98.5% collection efficiency 30:28 30 minutes, 28 seconds what could be the reason behind this sir this is my first question 30:35 30 minutes, 35 seconds thank you for coming uh sapna g uh so see you know if you look at mfi as an industry we do not classify our lending 30:43 30 minutes, 43 seconds as an mfi lenders we are not an mfi lender we are typically we step in into the journey when the person becomes a 30:50 30 minutes, 50 seconds micro enterprise. So this is beyond MFI but before his journey as a MSME is where our sweet spot lies. That is why 30:58 30 minutes, 58 seconds we call them small income generation loans and do not classify them into either categories is because it's a very uh niche segment where is where there is 31:07 31 minutes, 7 seconds a 8 lakh crapped market opportunity that we are tapping over the next we have been tapping for the last three years and are going to be tapping it for the 31:15 31 minutes, 15 seconds next three years too. In terms of the collection efficiency, it's primarily because of our lending philosophy that we believe in is that we believe this is 31:24 31 minutes, 24 seconds a collection first as a business. We have survived 35 years in the industry as a listed entity for more than our 30 years is because we have had the 31:32 31 minutes, 32 seconds approach of uh lend right and collect tight. That's been the growing model that is there. So every single credit parameter or 31:40 31 minutes, 40 seconds geopolitical or geospatial parameter or our credit decision engine our sanctionings our process flow our SOPs 31:49 31 minutes, 49 seconds they are designed as an elimination process and not as a servicing process that's been the primary uh USP of our model. 32:01 32 minutes, 1 second Thank you sir that explains a lot. 32:05 32 minutes, 5 seconds So one more question I have. Do you have uh inorganic growth on the table? Do you plan anything like that? 32:14 32 minutes, 14 seconds Uh yes uh we have uh we have that on the plans. 32:19 32 minutes, 19 seconds We are actively scouting for uh opportunities and partners to help us in the scene. 32:26 32 minutes, 26 seconds Noted sir. Thank you. I'll get back in the queue. Thank you. Thank you so much. 32:33 32 minutes, 33 seconds requesting participants to click on the raise and icon from the participants tab. 32:42 32 minutes, 42 seconds We'll take our next question from the line of Deepakra of KN&R Securities. 32:48 32 minutes, 48 seconds Mr. Please go ahead. 32:53 32 minutes, 53 seconds Thank you so much for the opportunity sir. Uh am I audible? 32:57 32 minutes, 57 seconds Yes, we can hear you. Uh so my first question is uh so beyond coal ending what are the other structural modes does 33:04 33 minutes, 4 seconds that pasalo have versus other listed NBFCs uh you know that could potentially lead to us achieving the guidance of 33:12 33 minutes, 12 seconds doubling our AUM in the next three fiscal years and secondly another question I had was regarding the new products that 33:20 33 minutes, 20 seconds we have announced the eight new products and pipeline uh are these uh you know incremental verticals or repackaging of existing products 33:28 33 minutes, 28 seconds Uh so which of these products will move the revenue needles for the upcoming FI27 financial years? 33:39 33 minutes, 39 seconds Thank you Deepa G for your question. So uh you know we follow an approach where we typically don't have any concentrated exposure of a significant industry or a 33:48 33 minutes, 48 seconds parameter contributing more than uh 25% of growth in the portfolio. As for the new RB circular which was released last 33:55 33 minutes, 55 seconds year, uh co- lending across the industry has taken a slowdown. Uh whether you look at the you know latest crystal reports and IRA reports which have come 34:03 34 minutes, 3 seconds on the same wherein lot of NBFCs have been able to finish the compliance but uh we are just waiting clarification from uh the banks to on their end on the 34:12 34 minutes, 12 seconds compliance as guided last quarter and reaffirmed this quarter. So last quarter we guided how we are going to do the three-year 34:20 34 minutes, 20 seconds doubling and this quarter we are reaffirming that now we are ready to double it for over the next span of three years. We have not taken coal 34:28 34 minutes, 28 seconds lending as the growth driver there. Coal lending is going to be an addition on top of that because we are yet to get 34:35 34 minutes, 35 seconds some clarity on it on in terms of how uh the updated guidelines are going to perform this fiscal year. So co- lending 34:43 34 minutes, 43 seconds contributes a small chunk of the AUM right now. we have not taken it into account in our doubling process. So that's number one. Number two, in terms 34:52 34 minutes, 52 seconds of the new uh segments that we have entered. So uh back in Q2 of the uh last fiscal year, we started our process of 34:59 34 minutes, 59 seconds adding couple of additional segments. Uh to name we added six new we started the process of adding six new segments which was medical equipment, industrial 35:07 35 minutes, 7 seconds equipment, alternative fuel, two-wheer agree equipment and small commercial vehicles. We already do three wheelers. 35:13 35 minutes, 13 seconds We just adding small commercial vehicle and segregating that platform. The idea was typically if you look at our industry-wise split that we have been 35:21 35 minutes, 21 seconds maintaining no specific industry. So food and hospitality being the largest ind industry in the portfolio contributes about 24%. Followed by the 35:29 35 minutes, 29 seconds next industry which is agri and agri street vendors contributing 14% each. So the idea was to further diversify the portfolio by adding these six new 35:38 35 minutes, 38 seconds segments into the space. So quarter two we started this strategy process. 35:42 35 minutes, 42 seconds Quarter three we announced it and finally in quarter four we ended up having our tie-ups with roughly 18 uh maybe more. I'm sorry I don't have the 35:51 35 minutes, 51 seconds exact number but roughly 20 18 to 20 partnerships which is spread across all three seg all six of these segments and 35:58 35 minutes, 58 seconds the idea over the next fiscal which is the new fiscal year is to scale each of these relationships so the they have a specific contribution in the industry 36:06 36 minutes, 6 seconds wise segment that we are doing. So overall at the end of three uh years that we have guided of the doubling of the AUM you will see that our split will 36:15 36 minutes, 15 seconds further become better because we will have roughly uh 18 main products uh being contributed by about three 36:23 36 minutes, 23 seconds subproducts in each category across various products terminologies and marketing segments. So idea is to have that in place. 36:31 36 minutes, 31 seconds Thank you. 36:33 36 minutes, 33 seconds Uh thank you so much sir. Uh I just have one more question uh on the sequential growth in dispersence. Uh it was only 36:40 36 minutes, 40 seconds 3%. Uh any reason uh about the low singledigit growth? Uh so uh the sequential growth was 3% but 36:49 36 minutes, 49 seconds if you look at the quarteronquarter growth it was about 27%. From Q3 to Q4 and the cumulative full year growth was 36:56 36 minutes, 56 seconds about 15 odd percent. So in terms of what our dispersement outlook and business outlook was for the fullear basis we have been fairly happy and healthy in terms of achievement of that. 37:07 37 minutes, 7 seconds So nothing uh special over there because on a Q3 to Q4 basis we we were we target we achieved our target of growing more than 25% and we grew at about 27%. 37:21 37 minutes, 21 seconds Thank you sir that answers my question. Thank you so much. 37:29 37 minutes, 29 seconds Requesting participants who wish to ask a question to click on the raise and icon from the participants tab. 37:40 37 minutes, 40 seconds We'll wait for the few minutes. 37:51 37 minutes, 51 seconds This is a reminder for all the participants who wish to ask a question. 37:56 37 minutes, 56 seconds Please click on the raise and icon from your participants tab on the screen. 38:14 38 minutes, 14 seconds Ladies and gentlemen, that was the last question. I will now hand over the conference to Mr. Shantanaral for his closing remarks. Over to you, sir. 38:25 38 minutes, 25 seconds Thank you. Uh you know with sustained demand across our core segments, improving funding efficiency, pristine 38:32 38 minutes, 32 seconds asset quality and a robust risk and operating framework, PESLO has entered FI27 from a position of strength. We 38:41 38 minutes, 41 seconds remain confident in our ability to deliver calibrated, profitable and sustainable growth while creating to 38:49 38 minutes, 49 seconds while continue to creating long-term value for our stakeholders. 38:54 38 minutes, 54 seconds We thank our investors, stakeholders and Arant Capital for their continued trust and support as we build a more 39:01 39 minutes, 1 second resilient, technology-led and financially inclusive company. Thank you so much. 39:08 39 minutes, 8 seconds Thank you members of the management. 39:11 39 minutes, 11 seconds Ladies and gentlemen, on behalf of Pisalo Digital Limited, that concludes today's conference call. Thank you for 39:18 39 minutes, 18 seconds joining us. You may now click on the leave icon to exit the meeting. Thank you everyone for your participation.