PTC INDIA FINANCIAL SERVICES — Q4 FY26

PTC India Financial Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=W2eAnwXPPE0 Published: 8 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Q4 and annual FI26 conference call hosted by PTC India 0:09 9 seconds Financial Service Limited. As a reminder, all participant line will be in the listenon only mode and there will be an opportunity for you to ask 0:16 16 seconds question after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then 0:24 24 seconds zero on your touchstone phone. I now hand the conference over to Miss Priya Chri from PTC Financials. Thank you and over to you Priya. 0:33 33 seconds Thank you. Good evening every everyone and welcome to the Q4 and FI26 investor call for a discussion on the fourth 0:41 41 seconds quarter and annual financial results of PTC India Financials Limited. I'm Priya Chudri, head investor relations at PFS. 0:50 50 seconds FI26 has been a year of measured and evolving progress. BFS has navigated a phase of transition marked by changes at 0:59 59 seconds the board and the senior management level alongside a continued focus on strengthening the balance sheet and improving asset quality with uh AUM 1:09 1 minute, 9 seconds while it has moderated to 3,292 crores from the peak levels. This is due to a conscious and a calibrated shift towards 1:17 1 minute, 17 seconds resolving legacy NPAs and rebuilding a higher quality granular and a more uh resilient loan book. There are clear signs of improving operational momentum. 1:29 1 minute, 29 seconds Draft stage 3 has declined significantly from 711 crores in FI25 to 190 crores in FI26 1:39 1 minute, 39 seconds alongside a strong and a visible pipeline supported by increased dispersements in sanctions. 1:47 1 minute, 47 seconds Sanctions stood at 3,448 crores in financial year 26. This is a growth of over 300% year-on-year 1:56 1 minute, 56 seconds compared to 825 crores in financial year 25. While dispersements were at 1,235 2:03 2 minutes, 3 seconds crores in financial year 26, which is a growth of 35% year-on-year compared to 916 crores in financial year 25. 2:12 2 minutes, 12 seconds Additionally, Crystal has removed the company's rating from watch with developing implications and reaffirmed 2:19 2 minutes, 19 seconds it at Crystal A negative A1. Our focus rem remains firmly on the infrastructure sector primarily renewable energy 2:28 2 minutes, 28 seconds transmission distribution and other core and sunshine segments driven by a calibrated riskconcious approach to 2:36 2 minutes, 36 seconds growth and backed by an experience execution team. 2:41 2 minutes, 41 seconds I will now like to introduce the senior management present in today's call. Mr. 2:45 2 minutes, 45 seconds Dil Shivastra, director of finance and CFO. Mr. Sanjiv Kumar, director operations and Mr. Kaloo Shinas, executive director, Treasury. 2:56 2 minutes, 56 seconds With this, I would now like to hand over the call to a director of finance and CFO, Mr. Dilip Shivas for the financial update on the company. Over to you, sir. 3:06 3 minutes, 6 seconds Uh, thank you, Priya. Uh, good evening to all of you. FY26 marked a year of strong financial and operational 3:13 3 minutes, 13 seconds performance with a part rising to 3 319 crores from 217 crores in FY25. 3:22 3 minutes, 22 seconds The total income al uh dipped slightly to 518 crores from 638 crores in the previous year. The company witnessed a 3:31 3 minutes, 31 seconds sharp acceleration in the business activity with the loan sanctions increasing significantly to 3448 crores 3:37 3 minutes, 37 seconds compared to 825 crores in FY25 and dispersement growing to 1 1235 crores from 916 crores in the previous year. 3:47 3 minutes, 47 seconds This growth was accompanied by the enhanced profitability matrix with return on assets annualized improving to 6% from 3.56%. 3:57 3 minutes, 57 seconds The return on net worth analyzed increasing to 10.95% from the 8.2%. 4:02 4 minutes, 2 seconds Net interest margin on the earning portfolio also strengthened to 4.49% 4:08 4 minutes, 8 seconds from the 4.25% in the FY 2025. Notably the company achieved a significant improvement in the portfolio quality 4:17 4 minutes, 17 seconds with grass stage three assets reducing by 73% to 1919 190 crores from 711 4:24 4 minutes, 24 seconds crores and net stage three assets declining by 83% to 47 crores from 284 4:32 4 minutes, 32 seconds crores in the previous year. The provision coverage ratio for the stage three assets also improved materially to 4:38 4 minutes, 38 seconds 75% in FI26 from 60% in FI25 and scoring a strengthened balance sheet and prudent 4:45 4 minutes, 45 seconds risk management approach. On quarter update Q4 FI26 reflected a strong pick up in origination and disbbursement 4:54 4 minutes, 54 seconds activity with disbbursement increasing 262 crores from 50 crores in the Q4 FI25 5:01 5 minutes, 1 second and loan sanctions rise rising sharply to 1,4 crores compared to 100 crores in the corresponding quarter of the 5:08 5 minutes, 8 seconds previous year. Probability metrics however moderated during the quarter with return on net worth annualized to 5:16 5 minutes, 16 seconds 6.24 24% compared to 8.54% in Q4 FI25 and return on assets analyzed 5:23 5 minutes, 23 seconds to 3.6% versus 4.02% in the previous year. Additionally, the yield on the earning portfolio softened 5:31 5 minutes, 31 seconds to 10.29% from 11.27% in Q4 FY25 reflecting evolving portfolio dynamics and calibrated approach to the growth. 5:42 5 minutes, 42 seconds Now I hand over to our director operation for the further update. 5:52 5 minutes, 52 seconds Yeah, thank you D. Uh thank you Priya for a good uh setup of tone and uh good 5:58 5 minutes, 58 seconds evening everyone. Uh as Priya and Dith has already uh given a snapshot of the business activity we have already done 6:06 6 minutes, 6 seconds on FI26. uh I'll be pleased to share an update uh on the business performance of FI26 and Q4. Uh business performance 6:16 6 minutes, 16 seconds performance along with the progress on our scale up initiatives and the way forward. Importantly, our performance 6:23 6 minutes, 23 seconds and strategic decisions remains fully aligned with what we have consistently articulated over the past few investors 6:31 6 minutes, 31 seconds calls. Focused on calibrated growth, diversification, and strengthening the overall portfolio quality. 6:40 6 minutes, 40 seconds FI26 witnessed a strong uptick in both sanctions and dispersements, reaching a 6:47 6 minutes, 47 seconds three-year high. This reflects robust or origination momentum and improved execution capabilities achieved with 6:55 6 minutes, 55 seconds maintaining a disciplined and risk calibrated approach of lending. Uh sanctions stood at 3,448 cr compared to 7:03 7 minutes, 3 seconds rups 825 crores in FI25 that is more than three times now. uh and uh this was 7:10 7 minutes, 10 seconds uh rupees 4 525 cr in FY2 24 while the disbbursement were at 1235 cr in 7:18 7 minutes, 18 seconds comparison to the FY26 916 cr and FY24's 586 cr during the year 7:27 7 minutes, 27 seconds 100% of our disbbursement were to the private corporate borrowers reinforcing our strategic shift towards 7:34 7 minutes, 34 seconds a more diversified and commerciallydriven portfolio Uh our origination engine remains strong 7:42 7 minutes, 42 seconds with sustained uh sanction momentum and a healthy pipeline across sectors and products positioning uh us well on 7:50 7 minutes, 50 seconds continued growth. We have also increased our focus on sole and multiple lending structures uh thereby strategically 7:57 7 minutes, 57 seconds reducing reliance on the consortium lending and improving control over credit underwriting and monitoring. uh 8:05 8 minutes, 5 seconds from a sector sectoral perspective uh FY26 saw diversification across renewable discoms uh oil and gas roads 8:14 8 minutes, 14 seconds compressed biogas and emerging data center value chain. Our foray into the data center ecosystem CVG marks uh 8:23 8 minutes, 23 seconds ecosystem and CBG marks a strategic into high growth sunshine infrastructure segment aligned with the Indian digital infrastructure expansion. 8:34 8 minutes, 34 seconds We also made steady progress in building our structured finance portfolio leveraging our strong relationship based 8:41 8 minutes, 41 seconds uh relationship base to create tailored financing solutions. This diversification uh into the value chain segment is 8:50 8 minutes, 50 seconds expected to further strengthen portfolio yield over the medium-term. 8:56 8 minutes, 56 seconds On the asset quality front, FI26 witnessed significant improvement with three out of four gross uh four out of 9:05 9 minutes, 5 seconds gross stage three accounts uh representing approximately 73% of the total value transitioned u out of stage 9:14 9 minutes, 14 seconds three over the past year. This reflects sustained resolution effort and strengthening of the balance sheet. At the same time prepayments during the 9:23 9 minutes, 23 seconds year led to a moderation in AUM. We have faced uh huge prepayments but that prepayments aware of the low yielding 9:32 9 minutes, 32 seconds accounts which in function of which is a function of improved asset quality and borrower uh deleveraging even as disbbursement momentum remains strong. 9:42 9 minutes, 42 seconds So our yield has is expected to be improving because the new dispersements are being done uh for a high yield 9:49 9 minutes, 49 seconds propos prepayments are being done on a low yield proposes. In summary, uh FY26 has 9:56 9 minutes, 56 seconds been a year of major yet decisive progress character characterized by uh strong growth in sanctions and 10:04 10 minutes, 4 seconds dispersement, continued strategic shift towards private sector lending, increasing portfolio portfolio granularity, diversification across 10:13 10 minutes, 13 seconds sectors including new wage infrastructure, expansion into new sectors and a meaningful improvement in 10:19 10 minutes, 19 seconds asset quality. We believe these efforts had laid a strong found foundation for sustained growth and we remain committed 10:28 10 minutes, 28 seconds to scaling the business with discipline while continuing to deliver long-term value for all stakeholders. 10:35 10 minutes, 35 seconds This is all uh about the business update. Thank you. 10:40 10 minutes, 40 seconds We will now open the floor to Q&A please. 10:50 10 minutes, 50 seconds Thank you. 10:58 10 minutes, 58 seconds May I press star and one on the touch telephone? 11:08 11 minutes, 8 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 11:13 11 minutes, 13 seconds Our first question come from the line of Chintan Ma from Punishka family office. 11:28 11 minutes, 28 seconds Please go ahead. Hi sir, thanks for the opportunity sir. 11:32 11 minutes, 32 seconds I just wanted to know the uh difference in we have such a large difference between our disbbursement and sanction. 11:40 11 minutes, 40 seconds meeting last I think from last six month we have dispersed close to 2,000 cr but 11:46 11 minutes, 46 seconds sanction is not even a 40% or so when we are going to get that rate 11:53 11 minutes, 53 seconds that's my first question okay uh I think you are talking about the dis uh difference between 12:01 12 minutes, 1 second disbbursement and sanctions uh our sanctions stood at 3,500 cr almost uh for this year where the disbbursement 12:08 12 minutes, 8 seconds are 1200 for the reason is uh you know we are into infrastructure finance segment infrastructure finance by their 12:17 12 minutes, 17 seconds nature only is a is a large financing thing where the project finance is done for the large projects projects are executed in the timeline of say uh one 12:26 12 minutes, 26 seconds year to 3 years time for different type of infrastructure projects longer ten longer so it's it's not a backto-back disbbursement type of thing sanctions 12:35 12 minutes, 35 seconds are done then disbbursements are done after uh as for the constructions after all due diligence regarding legal and 12:42 12 minutes, 42 seconds technical things. So as the construction progresses the dispersement happens. So sanctions are done at one time and the dispersement happens during the next uh 12:51 12 minutes, 51 seconds say 1 2 3 years time when the construction happens and that this is a major reason for uh this difference between sanctions and disbbursements. 13:00 13 minutes Had we been having having some big pipeline earlier that would have been dispersed here but because of certain issues in past that there was no 13:09 13 minutes, 9 seconds sanction pipeline. So whatever sanction had been done in this year that will that will reflect in the subsequent years as dispersement. This is the nature of uh infrastructure finance. 13:20 13 minutes, 20 seconds Okay. So we need to keep aside that money and need to fresh leverage or we are allowed to leverage if we get the new sanction or new customer who are ready to take it immediate front if any. 13:32 13 minutes, 32 seconds So this commitments this commitments of whatever disbburment we are expected to do in next few quarters or something uh 13:40 13 minutes, 40 seconds are uh taken care by our elbow committee. We take care of of of the our asset liability match uh where the uh 13:47 13 minutes, 47 seconds the required disbbursement is uh anticipated and money is uh kept uh 13:55 13 minutes, 55 seconds assigned for that. This is the way finance is done. So sanctions are there whichever sanctions are expected to be 14:01 14 minutes, 1 second dispersed in next quarter the uh money is there with us uh to be dispersed. So this is the way whenever required we borrow also for that. 14:11 14 minutes, 11 seconds Okay, understood sir. Second sir, uh now I think Armaladi sir has resigned. So what we are doing it and what's the reason for resignation? 14:20 14 minutes, 20 seconds Secondly, uh earlier he is guiding in the set of a vision mission for the next three four years like a yearly disbbursement of close to 4,000 K. Are 14:29 14 minutes, 29 seconds you on the same path or a board is on same path or it's a CEO's vision or the board's vision and what's the new agenda now? 14:38 14 minutes, 38 seconds was the timeline we are considering to entering a new CEO on the board. 14:43 14 minutes, 43 seconds It was a company vision not an individual vision. So first of all and uh uh uh MD uh has resigned and that uh 14:53 14 minutes, 53 seconds information reason for that was his personal reason that has been duly informed to the stock exchange as well that is available in the public as well 15:01 15 minutes, 1 second and uh existing uh that uh uh process has been initiated uh by the company for 15:08 15 minutes, 8 seconds the replacement of the MD because still he is here till 30th of June. So that process uh has been initiated and the 15:17 15 minutes, 17 seconds whatever uh this uh projections and plan was there that uh existing management they are working on it and they will uh 15:25 15 minutes, 25 seconds put best effort to uh put the that in the form of result 15:33 15 minutes, 33 seconds it's a quite a very short time CEO in and out so it's a what's the problem at the organization level it's a cultural 15:42 15 minutes, 42 seconds mismatch or a speed mit between the PFS and PTC or a ministry level mismatch 15:48 15 minutes, 48 seconds between PFS, PTC and ministry. Uh what is the single agenda? Why this comes and comes out? Because at the time of taking 15:57 15 minutes, 57 seconds such a large leadership we need to ensure that he has the large vision with the association with the organization because just company come out from the 16:06 16 minutes, 6 seconds turmoil. So uh why that happened and what we are making sure that this will not happen again. 16:14 16 minutes, 14 seconds Uh let me address it. Uh Mr. Balaji has been here for almost 2 years now. It's 16:21 16 minutes, 21 seconds not a just come in and come out. Balaji has been there for 2 years. He has spent a good time in uh solving so many issues 16:30 16 minutes, 30 seconds of the company uh making bringing it back on track and uh solving this uh 16:36 16 minutes, 36 seconds legacy issues uh corporate governance issues what we were facing earlier. So he has been there for quite a long time. 16:44 16 minutes, 44 seconds At the same time personal exigencies and personal requirements you cannot ignore. 16:49 16 minutes, 49 seconds uh Balaji has resigned for some of his personal reasons which he has already disclosed on in his designation later 16:56 16 minutes, 56 seconds also and various platforms of RBI and uh credit agencies also there is nothing uh as uh difficult into that anybody who 17:04 17 minutes, 4 seconds has got some other personal requirements other personal engagements uh should can resign it's it's a normal process in a company he has worked for 2 years so 17:13 17 minutes, 13 seconds there is nothing more than that should be read into that that's all there is no there is no uh involve involvement of any any other things into that that we 17:21 17 minutes, 21 seconds are you are you are trying to read it or some study that it is simple he he has got some personal uh commitment and he 17:29 17 minutes, 29 seconds left the company for that that is his decision and we should respect that that's the only thing okay understood sir uh just the last 17:38 17 minutes, 38 seconds question from here on the cost of boring side we are at much higher at 9 and a half or percentage or so despite just 17:45 17 minutes, 45 seconds one leverage company and other competitors 7 seven and a half or much lower than that. So if we have credible 17:54 17 minutes, 54 seconds promoter who are backing us they are also cash reach they are also low leverage. So uh any backing can I and 18:02 18 minutes, 2 seconds why such a high cost of borrowing because now gross NPAs and all the accounts are now also leasing. So what the guidance on cost of borrowing to 18:09 18 minutes, 9 seconds coming down we have been taking up with the lenders 18:15 18 minutes, 15 seconds right and uh uh we expect that uh improvement should be there in the cost of borrowing so our cost of borrowing is 18:23 18 minutes, 23 seconds not 9.5% it is lesser than that and our treasury team has been aggressively chasing up with all the lenders for 18:32 18 minutes, 32 seconds further reduction in the spread so we working on that so that we we Just want to add into that we have you might have witnessed in the 18:39 18 minutes, 39 seconds last quarter we have reduced our PFS BR also our base rate has also been reduced by 60 basis point that in fact is uh is 18:48 18 minutes, 48 seconds a reflection of our reduced cost of fund only and uh cost of fund will go further down as we go on borrowing fresh since 18:57 18 minutes, 57 seconds we have not borrowed anything in last financial year whatever we have borrowed at at the earlier cost remain like that 19:05 19 minutes, 5 seconds as soon as will go on repaying that repaying that uh borrowings and uh we'll go for a fresh borrowing it will come at 19:12 19 minutes, 12 seconds lesser cost so cost is not such a big problem uh we'll we'll manage that and consistently we'll see the PFSBR going 19:20 19 minutes, 20 seconds down in future okay and s just last I mean we are maintaining that 4,000 cr yearly 19:28 19 minutes, 28 seconds dispersement for fi 27 that target is yet to be said uh said 19:36 19 minutes, 36 seconds the budget is uh in in a process of approval on approval. Our target is not only quantitative, it is qualitative 19:44 19 minutes, 44 seconds also. It should be a high yielding and it should uh give a return on asset and return on money deployed also. So our 19:51 19 minutes, 51 seconds target is not only based on the how much money we lend how much effectively we are earning out of that that might you might have seen on the uh business 20:00 20 minutes numbers of this number this year also we have not been very aggressive in dispersing just making top lines uh whatever cost whatever uh interest rate 20:09 20 minutes, 9 seconds we are we are supposed to lend we are uh onto a completely uh understood quality portfolio and uh cost benefit analysis 20:17 20 minutes, 17 seconds we do everything like that so 4,000 cr was not committed last year. It was a 20:24 20 minutes, 24 seconds different number. This year also whatever budget we will approve we will will go for that and we'll achieve that. 20:34 20 minutes, 34 seconds Okay. Possible to get the number by next quarter that would be great. Uh thank you so much sir. Right. Thank you so much. 20:42 20 minutes, 42 seconds [clears throat] 20:42 20 minutes, 42 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question or press star and one 20:51 20 minutes, 51 seconds next question comes from the line of Rakkesh Siwasta an individual investor. Please go ahead. 20:57 20 minutes, 57 seconds Yeah, I would like to know about the dividend. This year again the dividend has not been announced in the last quarter meeting when the investor uh 21:06 21 minutes, 6 seconds meeting I have asked this question to Mr. Balaja G and he told that there is going to be announcement in the last quarter and in this quarter also there 21:14 21 minutes, 14 seconds is no announcement of the dividend. Last year also there was no announcement of the dividend. There is a profit in the organization. Why the dividend has not 21:22 21 minutes, 22 seconds been announced? Since I am individual investor and uh and I'm invest I am in this share from the last uh five year I 21:30 21 minutes, 30 seconds believe. So and and one other thing uh uh for me it is a dividend since 21:38 21 minutes, 38 seconds profitable it was profitable company and I was expecting dividend from the last two years there is no dividend at all 21:45 21 minutes, 45 seconds and I understand there was issue of the corporate governance two years before and which has been resolved also by Mr. 21:52 21 minutes, 52 seconds Balaji and the key and I was expecting that at least in this quarter there is will be announcement of the dividend. 21:59 21 minutes, 59 seconds Number one. Number two question is uh I understand there is some change in the shareholding uh of the PTC India. Now 22:08 22 minutes, 8 seconds the NTPC is going to be uh promoter for this PTC India. What will be impact in the PTC India financial for such changes? Thank you. 22:20 22 minutes, 20 seconds Okay. 22:22 22 minutes, 22 seconds Uh dividend actually that uh money uh this time we have not declared and uh uh we'll uh review it in the next quarter 22:30 22 minutes, 30 seconds and uh uh this part ultimately uh this is only for the you know for the increase capital appre uh so 22:40 22 minutes, 40 seconds appreciation and that net worth ultimately it's a money related to the net worth has been improved the stakeholders only. So uh that was the 22:48 22 minutes, 48 seconds one part. Second part that uh PTC uh that NTPC and that all the four PSUs 22:56 22 minutes, 56 seconds only one PSU will be taken care of. So as of now uh no impact has come on us no formal intimation has been given to us 23:04 23 minutes, 4 seconds on any part on that part and we don't feel that any any adverse impact is uh there on the PFS for that part. 23:14 23 minutes, 14 seconds Okay. Thank you. Thank you so much. 23:18 23 minutes, 18 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one obje. 23:30 23 minutes, 30 seconds Our next question come from the line of cha maluagi and individual investor. 23:37 23 minutes, 37 seconds Uh thank you for this opportunity. Uh sir my question is regarding fundraising process. Since last five to six quarters 23:47 23 minutes, 47 seconds you are continuously giving us false assurance that we are raising the fund and by the end of this quarter we will 23:56 23 minutes, 56 seconds get the cash in the hand like this continuously you are giving false assurance to the investors. That was the 24:02 24 minutes, 2 seconds that is the reason because of inability to raise the fund you are not dispersing more loans despite you are sanctioning more amount of loans. 24:16 24 minutes, 16 seconds Your your question has got two parts. 24:18 24 minutes, 18 seconds One is uh borrowings why we are not raising more funds. Take because of 24:27 24 minutes, 27 seconds check the balance sheet we are still uh flush with uh cash until 1800 we have got 1,800 rupees cr rupees in in 24:37 24 minutes, 37 seconds in our liquid in our balance sheet you can see if the money is there why we will not disbburse and why we will 24:45 24 minutes, 45 seconds borrow it's as simple when we borrow there is a cost on that and that cost on on on our company and and it's on you 24:52 24 minutes, 52 seconds It's a it's a it's a prudent decision that if money is not required why should we borrow here we'll borrow we'll have 25:00 25 minutes to pay interest. So whenever we required to borrow to disperse we'll borrow at that time. Our treasury is working day 25:08 25 minutes, 8 seconds night on making relationship and getting sanctions but dis but borrowing is is is our plan since the dispersements uh has 25:16 25 minutes, 16 seconds not picked up as as per our expectation and uh a huge prepayment has also come in books. So cash is already available 25:23 25 minutes, 23 seconds there. Our sanctions were more than 3,000 cr and still there are 2,000 cr of pipeline which may be dispersed in 25:30 25 minutes, 30 seconds coming next 6 months. So to match that money is almost available in the books whenever we'll require that asset 25:38 25 minutes, 38 seconds liability mismatch is there we'll go for go and borrow. 25:42 25 minutes, 42 seconds Sir in the previous quarter only you said you will disperse nearly 1,000 cr rupees in this quarter and increase 15% 25:50 25 minutes, 50 seconds of loan book size but uh despite that you are having cash in hand that despite you are having cash in hand you not 25:58 25 minutes, 58 seconds dispersed because you are inability to raise fund in the market that is the reason sir you are keeping capitaly 26:04 26 minutes, 4 seconds ratio high because you are not able to raise fund in the market sir you are asking questions and giving 26:11 26 minutes, 11 seconds answers yourself. So I'm not six since six quarter I'm observing you are keeping your capital letter toy 26:19 26 minutes, 19 seconds ratio high because you are not able to raise fund and showing that where capitaly ratio is very high so that's why we are not raising fund 26:27 26 minutes, 27 seconds I can give my region you are reading your own reasons uh so I cannot uh uh say uh 26:34 26 minutes, 34 seconds I think this is the reason Balaji resigned from the post what you said I think this is the reason Balaj has 26:42 26 minutes, 42 seconds also resented from the posture. He's not able to answer to the people investors. 26:47 26 minutes, 47 seconds Sir, I don't have any comment on to that. 26:49 26 minutes, 49 seconds Sir, it's not like that Balaji has given his reasons in his region letter. It is on on a public domain. You can go through that. Apart from that, I'm not 26:57 26 minutes, 57 seconds in a position to comment anything onto that. As far as disbbursement is concerned, agreed that we had uh assured 27:04 27 minutes, 4 seconds that we'll disbburse 1,500 cr almost in Q4. We have sanctioned also good amount. 27:10 27 minutes, 10 seconds uh but the uh projects have not yet started. The projects which have been sanctioned the loan they take their own time in getting approvals and start. We 27:18 27 minutes, 18 seconds cannot throw the money to them uh until unless they they really require that dispersement. So that dispersement will happen in future times. The 27:26 27 minutes, 26 seconds infrastructure loans are that nature that nature only and remaining all things whatever you have said uh I really um appreciate your sentiments and 27:34 27 minutes, 34 seconds your feelings but I don't have to comment on anything onto that. Then why previous management the BMI and co said 27:43 27 minutes, 43 seconds they to consulting many financial institutions we by the end of this quarter we will get the sanction and cash in the hand sir. Why he said like that? 27:51 27 minutes, 51 seconds Because that is their work. They are supposed to do that but ultimately when the requirement would be there then only the borrowing will happen. Still the 28:00 28 minutes treasury team is working on that and whenever required the borrowing will be done. Thank you. Okay. 28:09 28 minutes, 9 seconds Thank you ladies and gentlemen. In order to ask a question, you may press star and one on your touchstone telephone. 28:29 28 minutes, 29 seconds Our next question come from the line of Chintan Mata from Punishka Family Office. Please go ahead. 28:36 28 minutes, 36 seconds the uh the 190 K stage three portfolio if you can throw some line what are this and at what stage and resolution they 28:45 28 minutes, 45 seconds are and I think uh it's a danu portfolio or not if you can confirm or what is the status of this 190 Mr. will take that. 28:59 28 minutes, 59 seconds Uh good evening everyone. Uh the major portion of the GNPA is uh nano winfur and uh I think as 29:08 29 minutes, 8 seconds uh this was discussed I think this has been under discussion a number of times in earlier calls also the resolution process is underway. 29:18 29 minutes, 18 seconds it's been referred to NCLT and uh parallelly the promoters had offered an OTS which uh at at as and 29:27 29 minutes, 27 seconds when it is uh if if there's a acceptable offer then it will be considered on merits as far as the timeline for uh any 29:36 29 minutes, 36 seconds resolution is there and the process is on I think uh as and when the resolution uh moves forward we will be 29:45 29 minutes, 45 seconds communicating to the stock exchanges Okay. Okay. Underscore that. In the last 29:54 29 minutes, 54 seconds 6 months the uh disbbursement which we have done new which we call it close to 30:00 30 minutes 800 K or let's say sanction amount of last 2200 K. What is the average age of that uh life cycle of that loan amount? 30:11 30 minutes, 11 seconds Uh it's a long project or a short project something else. This is something around 10.5%. 30:20 30 minutes, 20 seconds Okay. I'm asking about number of years uh I think you are asking about yields. 30:26 30 minutes, 26 seconds Okay. Number of years average number of the failure of this project loan would be something around uh five to seven years. It will falling between them. 30:36 30 minutes, 36 seconds Okay. Which area these are falling? I mean on private lenders but uh which infrastructure or which kind of project this sir? 30:43 30 minutes, 43 seconds As of now sanctions have been done on mainly on private lenders. One or two uh utilities has also been sanctioned where 30:50 30 minutes, 50 seconds the this return is conducive to us. Uh so we'll we'll discuss in future. We'll 30:57 30 minutes, 57 seconds keep in mind that the our yield should be uh in place. Whatever our bill requirement is there that should be there even if you are dispersing to uh 31:05 31 minutes, 5 seconds government lenders, government borrowers. 31:09 31 minutes, 9 seconds Okay. And for any under discussion like after NTBC takes the charges promoter they may let go the PFS to the private 31:18 31 minutes, 18 seconds or someone transaction or something the monetization of the PFS prison cards or anything is communicated from last 31:25 31 minutes, 25 seconds update till we are not aware of anything like that. Okay, I missed sir. 31:34 31 minutes, 34 seconds Thank you. And as a at a board level, every seat is now full. There are only CEOs resignation which is come at the 31:42 31 minutes, 42 seconds time. Nothing about I think we have addressed this this question in past also in some of other 31:51 31 minutes, 51 seconds investors request also. We again repeat that it's a it's a call by an individual 31:58 31 minutes, 58 seconds and current MD and CEO Mr. Balaji has taken a call that he want to quit because of some personal reasons he has 32:04 32 minutes, 4 seconds I asking that any other vacant seat apart from CEO or not at all entire all the seats are full like board level or 32:13 32 minutes, 13 seconds operation level or any equivity level all the all the board level positions are full CO vacancy would be created as 32:22 32 minutes, 22 seconds soon as Mr. biology will be relieved and our uh team is already working on replacement of uh MD and CU. So it will be also done in due course. 32:34 32 minutes, 34 seconds Okay. Okay. Thank you. Thank you. 32:39 32 minutes, 39 seconds Thank you. Our next question comes from the line of Vishal Meta from Oakland Capital. Please go ahead. 32:52 32 minutes, 52 seconds Next question come from the line of Vishal Mata from Oakland Capital. Please go ahead. 33:01 33 minutes, 1 second Mr. Ma, you may unmute yourself. Am I audible? Yes, you are now. 33:06 33 minutes, 6 seconds Uh hi just wanted to check sir uh we've had sanctions of almost 3 and a half thousand crores. So when so you said 33:15 33 minutes, 15 seconds there is a lag between when you sanction it and how when it comes into dispersements. Uh could you just guide 33:22 33 minutes, 22 seconds us through how long will it take to translate into uh 33:29 33 minutes, 29 seconds addition into the AUM first point and the second point is could you also give us details regarding how much was the 33:37 33 minutes, 37 seconds prepayment or repayment of loans that has happened during the year? 33:42 33 minutes, 42 seconds taking your first question first. Uh infrastructure loans uh uh execute infrastructure projects are executed uh 33:52 33 minutes, 52 seconds in the timeline of say 6 month to 3 and 3 and 1/2 years type of thing. So some some of the sanctioned uh projects are 34:01 34 minutes, 1 second going to be completed in coming 6 months. Some are going to be completed in coming one year. One or two may take 34:08 34 minutes, 8 seconds even more than that. So dist disbbursement will be distribution distributed accordingly and we expected 34:15 34 minutes, 15 seconds major portion of this 3,400 sanctions out of that or about 2,000 is undispersed as of now major portion of 34:22 34 minutes, 22 seconds this will be dispersed uh within uh Q2 of this year and at the same time we'll go on sanctioning also in in this period 34:29 34 minutes, 29 seconds it's it's a it's a it's a continuous cycle that whatever we sanction some dispersement will happen later some disbbursement can be back to back and 34:37 34 minutes, 37 seconds some dispersement will take shorter period some dispers ment will take longer period. It's a it's a process what what is uh we can call a sanction 34:45 34 minutes, 45 seconds and disbbursement process. So this uh 2,000 odd cr which are still undispersed may be disbured out of out of that maybe 34:52 34 minutes, 52 seconds 1,500 cr may be dispersed in coming two quarters remaining may be dispersed in remaining two quarters and at the same time we'll 35:00 35 minutes sanction fresh loans also out of that some loans will be dispersed in the sim same quarter next quarter and that that's go goes on. So it's very 35:07 35 minutes, 7 seconds difficult to say by what time we will disbburse this. It's a uh construction process. As soon as the construction done is done, we disbburse. And as far 35:16 35 minutes, 16 seconds as the repayments are concerned in the last financial year, what is the number? 35:27 35 minutes, 27 seconds This is the prepayment something,441 cr to be precise has been prepaid in in in 35:35 35 minutes, 35 seconds repayment has been done. Uh in this financial let let me correct the numbers once again. 35:40 35 minutes, 40 seconds It is prepayments of the loan which has not scheduled prepayment has been done is 115 cr and uh total prepayments are 35:50 35 minutes, 50 seconds 1441 cr. This is the number uh 26. Yes. 35:56 35 minutes, 56 seconds Great sir. Uh uh so so in that case would this number be similar for next year as well because in that case we 36:03 36 minutes, 3 seconds will have to probably for to register a growth in AUM we would have to have disbbursements which will be over 1500 36:10 36 minutes, 10 seconds crores to ensure that we have addition to the loan book. Right? 36:15 36 minutes, 15 seconds It's very difficult to say what the number will be remain same or not because prepayments cannot be predicted. 36:20 36 minutes, 20 seconds It depends on the requirement of the borrower. If he wants to prepay because of certain reasons, he may have got some money available at at lesser cost or 36:29 36 minutes, 29 seconds they they have planned to uh shift the loan to somewhere else they prepay. So prepayments cannot be predicted. 36:35 36 minutes, 35 seconds Repayments can be predicted. So that is in the line of prepayments were in the line of uh last year's also itself. 36:43 36 minutes, 43 seconds Maybe uh exactly what we are proposing uh this number is not yet finalized. uh but prepayments we cannot predict. It's 36:50 36 minutes, 50 seconds always uh sword always hanging on the lender side. 36:55 36 minutes, 55 seconds It's all the we take care in the in the in the dispersements that any prepayment or repayment comes we should lend it again. So that plan is there. 37:04 37 minutes, 4 seconds Got it sir. Just one one last point that you know we have now the board is also 37:11 37 minutes, 11 seconds fully functional now and we have the rating agency's also given us a a neutral rating. So going forward would 37:21 37 minutes, 21 seconds it be possible to just give a guidance in terms of how are we looking at uh maybe the next two years to in terms of 37:28 37 minutes, 28 seconds scaling up the loan book what kind of dispersements we are looking at uh or sanctions or however. So any long-term 37:36 37 minutes, 36 seconds guidance in terms of how we are trying to uh take the company forward because uh there have been a lot of uh speed 37:45 37 minutes, 45 seconds breakers that we've had to uh hurdle over and now since uh most of them are behind us can we just give us a path going forward? 37:56 37 minutes, 56 seconds uh in in my initial submission also I have submitted that we'll be working on building the loan books with quality as 38:03 38 minutes, 3 seconds well as quantity though quantity may be not our biggest preferences quality will be our biggest preferences we'll have to 38:11 38 minutes, 11 seconds look at the yield also so that uh the loans can should should generate sufficient profit to the stakeholders at 38:18 38 minutes, 18 seconds the same time uh top line is always our priority so you'll see uh increased disbbursements also also in future uh 38:27 38 minutes, 27 seconds quality we have already worked on there is no any no fresh slippage in our say last 2 three years uh dispersement it 38:36 38 minutes, 36 seconds will not happen in future also so we are budging onto that and uh you'll see at least uh say 38:45 38 minutes, 45 seconds 30 to 50% growth year on year uh this you're talking about 38:52 38 minutes, 52 seconds dispersements or you're talking about uh This this I'm talking about aum. Okay. 38:59 38 minutes, 59 seconds Dispersements minus prepayments. 39:02 39 minutes, 2 seconds Wow. Uh great sir. All the best. Uh uh we hope you achieve this. Thank you. 39:10 39 minutes, 10 seconds Thank you. 39:16 39 minutes, 16 seconds Thank you. Our next question comes from the line of Ranjan Prasad Singh an individual investor. Please go ahead. 39:24 39 minutes, 24 seconds Hi everybody. I have couple of questions. 39:30 39 minutes, 30 seconds The first question is that can you give us some numbers about what is uh or net 39:37 39 minutes, 37 seconds NPA at this stage and are you considering any other loan or are they at different stages of becoming NPA? The 39:46 39 minutes, 46 seconds number one. Number two, as far as dividend is concerned, when you have a 39:52 39 minutes, 52 seconds 1,800 plus on your books, giving a 10% dividend is cost you only 65 crores 40:02 40 minutes, 2 seconds which you will always recover in the coming quarter. So considering in the coming quarter doesn't make a 40:08 40 minutes, 8 seconds difference. You must consider the time when you can waste 40:16 40 minutes, 16 seconds impression impart to the market that you are dividend paying company and keep your investors happy. That's the second. 40:27 40 minutes, 27 seconds The third and last question is that are you planning to join any of these banks 40:34 40 minutes, 34 seconds consortium which keeps giving loans to large projects and do they do have 10 40:42 40 minutes, 42 seconds 15 other partners who contribute in that and then give the loan which becomes 40:49 40 minutes, 49 seconds safer as well as it's a long term. Thank you. I'll address one by one all three. 40:58 40 minutes, 58 seconds First is uh what you are asking us is NP as on uh as on date uh we have got 190 cr or NPS as on date 41:06 41 minutes, 6 seconds 1.49% it's [clears throat] 1.49% 49% net NPA and it's 190 cr only you know 190 is gross gross gross NP 47 41:15 41 minutes, 15 seconds and net net NPA is only 47 cr and uh second question was about dividend 41:22 41 minutes, 22 seconds uh your suggestion is well noted and uh hope we'll work our board will work on that third 41:31 41 minutes, 31 seconds it's a good time that at annual meeting you announce that okay 10% dividend and that makes all the investors happy as well as forwardlooking. 41:41 41 minutes, 41 seconds Your your sgest is good. It is well noted and uh we'll definitely um convey 41:48 41 minutes, 48 seconds this to our board uh so that appropriate decision can be taken and uh third part was uh can you repeat the third part? On 41:54 41 minutes, 54 seconds third part we are open right it's not that we have limited we will not participate in the coal ending so 42:01 42 minutes, 1 second depending upon the case to case and matching our uh you know uh risk and reward and uh we are open for that and 42:10 42 minutes, 10 seconds in few few of the cases uh we have done as well right uh some small ticket sizes 42:16 42 minutes, 16 seconds uh we are part of the multiple lending arrangement so we have been doing that part as well And we are participating in consortium also wherever we get chance. 42:27 42 minutes, 27 seconds So we are not averse of participating in consortium lending. We are doing and that is one of one of our products products. So we'll we'll keep on doing in future also. 42:37 42 minutes, 37 seconds Okay. Thank you. Thank you. 42:40 42 minutes, 40 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks. 42:49 42 minutes, 49 seconds Thank you and over to you team. 42:53 42 minutes, 53 seconds I thank you all for your participation in today's earnings call. We would like to take this opportunity to reiterate our commitment to delivering consistent 43:02 43 minutes, 2 seconds value to all our stakeholders guided by the principle of transparency, accountability, and responsible growth. 43:10 43 minutes, 10 seconds Our core focus continues to be on profitable expansion, operational excellence, and the development of innovative customercentric solution 43:18 43 minutes, 18 seconds aligned with our long-term strategic vision. If you may have any further questions following this call, please 43:25 43 minutes, 25 seconds feel uh free to reach out to us. Our senior management team at PFS will be happy to address any queries and 43:33 43 minutes, 33 seconds concerns. We value your continued support and look forward to our ongoing engagements. Thank you. 43:52 43 minutes, 52 seconds Thank you on behalf of PTC Financial that conclude this conference. Thank you for joining us and you may now disconnect your lines.