Religare Enterprises Ltd — Q3 FY26

Religare Enterprises Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PMYoyxpZxKA Published: 2 months ago

0:00 Ladies and gentlemen, good k and welcome to the Q3 and 9 months FI26 earnings conference call of relegator Enterprises 0:07 7 seconds Limited hosted by Ad Factors PR. As a reminder, all participant lines will be in the listenonly mode and there will be 0:15 15 seconds an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on the touchstone phone. I now hand the 0:27 27 seconds conference over to Miss Mani Bodhas from Ad Factors PR. Thank you and over to you Miss Mani. 0:37 37 seconds Thank you Dutuja. Good evening everyone and thank you for joining us today to discuss Q3 and 91 FY26 business 0:44 44 seconds performance. We have with us management of relegare and its subsidiaries. Before we proceed with this call, I would like 0:52 52 seconds to mention that some of the statements made in this call may be forward-looking in nature and may involve risks and 0:59 59 seconds uncertaintities. The company also undertakes no obligation to update any forward-looking statements to reflect 1:07 1 minute, 7 seconds developments that occur after the statement is made. Documents related to company's financial performance 1:14 1 minute, 14 seconds including investor presentation have been uploaded on the stock exchanges and on the company's website. I now hand 1:21 1 minute, 21 seconds over the call to Mr. Pratul Gupta from Relear Enterprises Limited. Over to you sir. 1:28 1 minute, 28 seconds Thank you Mani. Good afternoon ladies and gentlemen and welcome to Relear Enterprises Limited quarter 3 FI26 1:36 1 minute, 36 seconds earnings conference call. I am Pratul Gupta, CFO of the company and I'm happy to host this session marking our 1:44 1 minute, 44 seconds continued commitment to transparent engagement with investors and analysts following our first fall which happened in November 2025. In the room we have 1:52 1 minute, 52 seconds senior management from relegear and its subsidiaries. Today's session will cover detailed updates before transitioning to 2:01 2 minutes, 1 second Q&A. I refer to the presentation already before you since it has been uploaded on Bources. It is also available in uh IR section of our website. 2:14 2 minutes, 14 seconds Referring to slide number five, business overview. While some of the audience may have seen this slide earlier, I would just like to refresh everyone's memory. 2:25 2 minutes, 25 seconds Relegate Enterprises serves as the listed holding company CIC which states in high potential financial services 2:33 2 minutes, 33 seconds business across care health insurance which is India's second largest standalone health insurer. Releear 2:41 2 minutes, 41 seconds broking which is into retail focused uh securities broking along with egovernance business. Relear finest the 2:49 2 minutes, 49 seconds theme lending platform and releigar housing finance which focuses on affordable housing. 2:58 2 minutes, 58 seconds Moving to slide six the group structure is as depicted in the slide. We have 3:05 3 minutes, 5 seconds listed relegar enterprises below which there is health insurance wherein relegar enterprises hold 63.2% 3:14 3 minutes, 14 seconds share. We also have a wholly owned subsidiary called relegar broking limited which in turn also holds relegar 3:22 3 minutes, 22 seconds digital solutions limited which is its wholly owned subsidiary. 3:26 3 minutes, 26 seconds The theme platform, relegarvest limited which is another arm of lending segment uh is a wholly owned subsidiary and 3:35 3 minutes, 35 seconds relear housing finance housing development finance corporation is a significant subsidiary which is below releg. 3:45 3 minutes, 45 seconds Releer holds majority strategic stakes across insurance and financial services platforms which we believe are ready for growth. 3:56 3 minutes, 56 seconds Moving to slide seven. 3:59 3 minutes, 59 seconds At an industry level, the quarter ended December marked a broad-based performance across India's financial 4:07 4 minutes, 7 seconds services sector. The NBFC ecosystem demonstrated resilience with industry AUM growth. Capital markets activity 4:15 4 minutes, 15 seconds continued to benefit from strong retail participation and sustained domestic SIP inflows supporting broking and asset 4:22 4 minutes, 22 seconds management businesses. For insurance businesses, after a brief highest due to GST changes, the activity returned back 4:31 4 minutes, 31 seconds with lot of vigor. With respect to the business environment for businesses for Q3 FI26, we navigated a mixed operating 4:39 4 minutes, 39 seconds environment during the quarter. Our performance reflects disciplined execution across our diversified financial services businesses. 4:49 4 minutes, 49 seconds The group results this quarter absorbed one-time employee benefit provisions related to past service liabilities. 4:57 4 minutes, 57 seconds Excluding these non-recurring items, our core operating performance remained stable supported by healthy franchise momentum. 5:07 5 minutes, 7 seconds As a diversified platform, we continue to see opportunities from the strengthening credit cycle and supportive policy environment. Our 5:15 5 minutes, 15 seconds approach remains deliberate, focused on building strong operating foundations rather than chasing short-term growth. 5:23 5 minutes, 23 seconds We have focused on governance via board reconstitution as well with three promoter nominees added in July 2025. 5:33 5 minutes, 33 seconds Further the board has proposed the induction of three promoter family members Dr. Anand Burman, Mr. Mohit 5:41 5 minutes, 41 seconds Burman and Mr. Adita Shan Burman as additional directors along with Mr. Jim Modi from Samo Group as additional 5:49 5 minutes, 49 seconds directors. They will be designated as non-executive and nonindependent directors subject to necessary regul 5:56 5 minutes, 56 seconds regulatory approvals. We have also strengthened leadership across the group. We have Mr. Mr. Vijay Goyel joining as managing director of relear broking. Recently we also welcomed Mr. 6:08 6 minutes, 8 seconds Babu Rao from Bajage Finance as group general council and group chief compliance officer and Mr. Indil Chadri 6:15 6 minutes, 15 seconds as group CHRO who earlier served as uh CHRO for UTI mutual fund. Ariel 6:24 6 minutes, 24 seconds continues to maintain a strong capital and liquidity positions. it providing flexibility to its operating businesses 6:31 6 minutes, 31 seconds to support growth, drive stabilization and pursue value accreative investments. 6:38 6 minutes, 38 seconds Capital allocation during the quarter remained measured and selective aligned with each subsidiaries requirement. Our 6:45 6 minutes, 45 seconds focus remains on preserving balance sheet strength while providing funding support to businesses as per their growth plans. Our priorities continue to 6:54 6 minutes, 54 seconds be allocate capital in line with risk adjusted return potential, reinforce governance, operating discipline and 7:02 7 minutes, 2 seconds risk controls across all businesses and position the group to compine compound value over medium to long-term. 7:11 7 minutes, 11 seconds Business specific observations are summarized in slide seven across business segments including insurance and financial services. 7:19 7 minutes, 19 seconds Now let me give you a snapshot of Income statement at the consolidated level the company 7:28 7 minutes, 28 seconds clocked a total income of rupees 2067.9 crores against 1670.2 crores for the 7:38 7 minutes, 38 seconds corresponding quarter last year. I am on slide eight. On a 9-month basis, the 7:44 7 minutes, 44 seconds income reported is rupees 6,33.1 crores against uh in income of 5,355.6 crores for the same period last year. 7:58 7 minutes, 58 seconds The total expenses for the period were rupees 2,171 crores and a negative PBT of rupees 8:06 8 minutes, 6 seconds 103.1 crores. The corresponding number for last year was a negative 78.9 8:13 8 minutes, 13 seconds crores. On slide nine, we have segmental reporting. In terms of segments, the 8:20 8 minutes, 20 seconds insurance business clocked a revenue of rupees 1,931.9 crores whereas financial services were 8:29 8 minutes, 29 seconds at 143.1 crores. The profitability for the insurance segment was a negative of 8:37 8 minutes, 37 seconds 111.2 2 crores. Whereas financial services reported a profit of 8 and a half crores after accounting for 8:45 8 minutes, 45 seconds one-time line items including wage code provisions as well as write down of investments in case of RFL. The 8:53 8 minutes, 53 seconds corresponding assets and liabilities are also detailed on slide N. 8:58 8 minutes, 58 seconds On a standalone basis referring to slide 10, the total income was rupees 2.4 4 crores against a total expense of rupes 9:08 9 minutes, 8 seconds 13.8 crores leading to a loss of rups 11.4 crores before tax during the 9:15 9 minutes, 15 seconds quarter. Just to remind the audience the numbers pertain on a in case of standalone uh only to CIC holding 9:22 9 minutes, 22 seconds company. We will now dive into the performance of each business starting with care health insurance and I would 9:30 9 minutes, 30 seconds like to hand over the floor to Mr. Amish Chindel, CFO of Care Health Insurance Limited. Over to you, Amish. 9:37 9 minutes, 37 seconds Thank you, Pratul. Good afternoon everyone. This has been a trans transformative quarter for India's insurance sector. The insurance 9:45 9 minutes, 45 seconds amendment bill was passed during this quarter enabling 100% FTI. 9:50 9 minutes, 50 seconds Also, this was the first full quarter following the GST exemption on individual health and life insurance policy. This exemption has materially 9:57 9 minutes, 57 seconds improved affordability for customers. We also saw the new labor code come into force. Highlights for the quarter are our retail business during the quarter. 10:06 10 minutes, 6 seconds It grew 41% year one year on a full premium basis with continued market share gains in retail health insurance. 10:13 10 minutes, 13 seconds The company remained profitable for the quarter on a full premium basis maintaining our track record of profitability since financial year 1890. 10:21 10 minutes, 21 seconds We achieved the credit rating upgrade from A+ to A minus reflecting our strengthening financial position. 10:28 10 minutes, 28 seconds Our digital transformation continues. 10:30 10 minutes, 30 seconds 96% of policies are issued digitally and over 76% of cashless claims are processed within 30 minutes. Customer complaints decline as compared to the 10:38 10 minutes, 38 seconds preceding quarter. The new labor code did impact our financial anxime charge for this quarter. Now let me walk you through to the to the presentation. 10:49 10 minutes, 49 seconds I'm on slide number 12. 10:52 10 minutes, 52 seconds Company achieved a top line of 7,96 crores on a full premium basis with a growth of 21.5%. 10:58 10 minutes, 58 seconds Where in this quarter retail growth from proprietary channel is 41%. 11:03 11 minutes, 3 seconds Our AUM crores crossed 10,000 K res milestone. The investment book increased by over rupes 1,800 KES compared to 11:10 11 minutes, 10 seconds March 25 driven by business growth and 322 KES of capital infusion in the month of September 25. Company has a solveny 11:18 11 minutes, 18 seconds of 1.70 as at the end of quarter 3. Our combined ratio improved by 110 basis points on a YTD basis. We have a market 11:27 11 minutes, 27 seconds share of 9.9% among private players and 22% within size segment. And our team settlement ratio is 97%. 11:37 11 minutes, 37 seconds Moving on to the next slide. 11:42 11 minutes, 42 seconds Over the previous three years com we grew at a CG of 33% and in this current year on a full premium basis we grew at 21.5%. 11:50 11 minutes, 50 seconds Our retail health market share continues to expand currently at 11.4% of the industry and 19.5% among sahis. 11:59 11 minutes, 59 seconds While industry numbers on a full premium basis they are not available for retailers but just to give you a perspective industry grew at 16.5% basis on 1 by retailers size grew at 18.75%. 12:11 12 minutes, 11 seconds And we grew at 23.3% resulting into increase our in our market share. The organization is a multi- channelannel organization focusing on all channels 12:20 12 minutes, 20 seconds wherein agency channel contribute almost 40% of the total GWP. Our retail book constitute approximately 63%. 12:29 12 minutes, 29 seconds Now I'm on slide 14. 12:31 12 minutes, 31 seconds All numbers in this slide they are on full payment process. Our profitability as on December 25 is rupes 265 crores 12:39 12 minutes, 39 seconds against a pity of 92 crores in the same period last year. Underwriting results are also improved in this uh financial 12:46 12 minutes, 46 seconds year as compared to previous year. The underwriting results they are improved by 23%. If you remove the onetime impact of the labor pool, then the underwriting 12:54 12 minutes, 54 seconds results they are improved by 27% as compared to previous year. Claims is on a YTD basis has increased by 2.7%. 13:01 13 minutes, 1 second However, combined ratio have improved by 1.1% as compared to previous year. Our expense of management continues to decline as we benefit from scale and 13:09 13 minutes, 9 seconds digital adoption and we remain fully compliant with EM regulations. 13:14 13 minutes, 14 seconds Our investment book of 10,246 crores is consistently delivering a yield in the range of 7.2 to 7.3%. 13:22 13 minutes, 22 seconds Moving on to the next slide. Numbers on this slide they are on a 1 byN basis and hence they are not comparable. But just to give you perspective under 1 byn 13:30 13 minutes, 30 seconds basis our top line is lower by 734 kores and profitability is lower by 354 kores compared to full premium basis for the 13:38 13 minutes, 38 seconds first 9 months. For this quarter top line is lower by 181 kores and profitability is lower by 200 kores. Now 13:46 13 minutes, 46 seconds this is purely a timing difference not an economic loss. Under the earlier accounting just to give you an example if we sold a three-year policy for Rs. 13:54 13 minutes, 54 seconds 30,000 the entire amount was recognized as gross return and premium in year 1. 13:59 13 minutes, 59 seconds Under the new 1 byN methodology we now recognize only one/ird that is 10,000 in the year the business and the balance 20,000 in the following two years. 14:10 14 minutes, 10 seconds As a result in the year of sale, I reported topline and profit looked lower than under the old method because a portion of the premium and the corresponding profit were pushed into 14:19 14 minutes, 19 seconds the future years. Hence, this is only deferral of premium and profitability will acrew over a period of time. 14:26 14 minutes, 26 seconds Thank you. 14:31 14 minutes, 31 seconds We keep on we keep on expanding participation. We keep we as we also highlighted we are omni channel organization. to we keep on focusing on 14:40 14 minutes, 40 seconds all the channels within the uh that are present in the health insurance space. 14:45 14 minutes, 45 seconds We are uh we are investing a lot on the technology and um we are the only company who commission on a daily basis. 14:53 14 minutes, 53 seconds We keep on innovating on our products and wellness integration and we have also started gift city operations uh last we are acting as a reinsurer for 15:02 15 minutes, 2 seconds foreign insurance company. We are based out of the middle east and this is how we are we are expanding over the years. Thank you. 15:11 15 minutes, 11 seconds Yeah. And uh handing over to the plat. 15:14 15 minutes, 14 seconds Thank you um Amish for this detailed uh Sure. Uh I now invite Mr. Vijayak Kumar 15:24 15 minutes, 24 seconds Goyel MD of Relegar Broking Limited to give his comments. Just to introduce Mr. 15:30 15 minutes, 30 seconds Goyel. He joined Relegar Broking recently as managing director effective uh February 2nd. He has got more than 30 15:38 15 minutes, 38 seconds years of experience in financial services having spent 11 years with Adita Financial Services and us with Motil. 15:48 15 minutes, 48 seconds Previously he was the CEO and broking of distribution private wealth management business and home finance business with 15:55 15 minutes, 55 seconds the Motil. Before joining relegate broking, he was self-employed having a professional practice as an executive 16:03 16 minutes, 3 seconds coach and business group consultant. He charted accountant as well as a cost accountant. Over to you Mij. Thank you. 16:10 16 minutes, 10 seconds Thank you Pulu. Good evening everyone. 16:13 16 minutes, 13 seconds Uh quick update on relig broking. Our revenue y was up by 12% from 81.5 crores 16:22 16 minutes, 22 seconds to 91 crores. Our client debit book known as MTF popularly in the market as well as the short-term debit book was up 16:31 16 minutes, 31 seconds by 93% YI from 165 to 317 crores. The 16:38 16 minutes, 38 seconds clients traded unique clients traded Yi came down by 11% for us. Uh number 16:46 16 minutes, 46 seconds industry at industry level this number was uh came down by 12%. So we did slightly better than industry out there. 16:55 16 minutes, 55 seconds The e-governance business uh grew by 21% y. 17:01 17 minutes, 1 second Now moving on to slide 19. Uh this just shows that our egovernance business is largely franchised driven and 17:09 17 minutes, 9 seconds technologydriven across the country where we have more than 50,000 agents selling various small 17:15 17 minutes, 15 seconds value solutions to uh lot of rural and seapp clients. 17:23 17 minutes, 23 seconds Slide number 20 if you move you will observe that at industry level the overall demat accounts in last 5 years 17:31 17 minutes, 31 seconds have grown from 5 and a half crores to now about 21 and a half crores 17:38 17 minutes, 38 seconds and uh but the active active ratios basically the clients who are trading with the exchanges has been consistently 17:46 17 minutes, 46 seconds coming down in 22 it peaked at 40% of all the clients is registered with with with demand accounts which has now come down to 21%. 17:58 17 minutes, 58 seconds Slide number 21. 18:03 18 minutes, 3 seconds As I already mentioned at the beginning that our revenue YI grew from 81 and a 18:09 18 minutes, 9 seconds half to 91 crores. The PBT profit before tax grew sharply by about 893% from 70 18:17 18 minutes, 17 seconds lakhs to about 6.6 6 crores. Our net worth uh is showing steady growth from 18:24 18 minutes, 24 seconds 350 crores to about 366.6 crores and assets under custody which is the demat balances that we hold for 18:32 18 minutes, 32 seconds clients is is about 42,642 cr rupees. If you look at the quarter 4 of last year, you'll find a very good 18:41 18 minutes, 41 seconds growth from 37,847 crores. Moving on to slide 22. 18:50 18 minutes, 50 seconds Our daily turnover for cash market uh is 276 cr rupes for the quarter that we are 18:57 18 minutes, 57 seconds discussing. Our derivatives turnover was about 9700 9,782 cr rupes which grew y as well as from 19:07 19 minutes, 7 seconds quarter 4 of last year. Our active clients is is slightly down. Active clients basically mean the clients who 19:14 19 minutes, 14 seconds are eligible to trade as per national stock exchange criteria and the unique traded clients I already mentioned earlier has come down by about 11% and 19:23 19 minutes, 23 seconds the fall which is lesser than the industry fall of 12%. Moving on to slide 23. 19:32 19 minutes, 32 seconds These are our financial numbers. 19:36 19 minutes, 36 seconds Uh our income 91 cr rupees as compared to 81 on anis. Our total income is 274.7 19:45 19 minutes, 45 seconds crores as against 299.30 for the corresponding 9 months previous year. Our profit before tax for the 19:54 19 minutes, 54 seconds quarter reviews 6.56 crores. Y67 crores the growth is from 67 to 6.56 20:02 20 minutes, 2 seconds crores on 9 month basis our profit is 16.71 cr rupes this year has against 35.68 68 cr rupees for the last year. 20:13 20 minutes, 13 seconds Moving on to slide 24. 20:21 20 minutes, 21 seconds We understand that seeing as Prul also mentioned a lot of retail participation increasing driven 20:28 20 minutes, 28 seconds by SIP as well as the prosperity as well as the digital revolution that has taken place and that opens up an opportunity 20:36 20 minutes, 36 seconds for us to acquire lot of new clients which we'll continue to do. Focus remains on activating a lot of clients 20:42 20 minutes, 42 seconds that are already registered with us and also launching new products on non-broking as well as broking platforms 20:51 20 minutes, 51 seconds as well as investing in a digital platform to make it a very strong and scalable platform. That's it. Thank you. 20:58 20 minutes, 58 seconds Thank you Vijay. Uh we now move over to Relegar Invest Limited. Uh we are on slide 26. 21:07 21 minutes, 7 seconds Relius Invest Limited is a part of financial services segment of Red and it is categorized as a middle layer NBSC. 21:17 21 minutes, 17 seconds RFL currently has a core book of SM of 70 crores which is left and along with a cash balance of rupees 480 crores. 21:28 21 minutes, 28 seconds This kind of cash collection has been possible because of our tremendous focus on collections and recovery. 21:37 21 minutes, 37 seconds Our collection efficiency continues to be 99% or thereabouts. 21:42 21 minutes, 42 seconds Our net NPA ratio has continued to be very stable and is at 1% and cr which is the regulatory ratio is at 228%. 21:53 21 minutes, 53 seconds This quarter marked continued recovery from the loan book following regulatory cleanup. Asset quality remained stable reflecting close portfolio monitoring. 22:04 22 minutes, 4 seconds The focus of the employees also made sure that organization is ready for the next phase of rebuilding the business 22:11 22 minutes, 11 seconds and growth with the leadership teams uh being there. As I mentioned earlier, the 22:19 22 minutes, 19 seconds cash is available. There is enough capital by way of net worth in excess of 800 crores and the platform is ready for 22:27 22 minutes, 27 seconds next business line that we choose to adopt. During the quarter, the board has been strengthened with members from the 22:35 22 minutes, 35 seconds promoter group as well as uh addition of independent directors. Coming to slide 22:42 22 minutes, 42 seconds 27. While it seems a busy slide, my team all the legacy issues have been resolved 22:48 22 minutes, 48 seconds now. There are no cumulative in any of the buckets and our IT platforms are 22:55 22 minutes, 55 seconds currently getting refurbished to take care of future business needs as and when we restart the business. To take you to the financials, I'll request Mr. 23:06 23 minutes, 6 seconds Prakaj Jajani, the CFO of Ind. 23:11 23 minutes, 11 seconds Thank you brother. Good evening everyone. I am Prayani CFO of RFL. Slide number 28 gives you key ratio over the 23:19 23 minutes, 19 seconds two quarters. Our total income is at rupes 39.6 cr in this quarter. Our profit after tax has reduced to rupees 23:26 23 minutes, 26 seconds 1.2 cr in this quarter due to impairment provision on subsidiary investment of rupes 17.4 cr as well as new labor code 23:34 23 minutes, 34 seconds pro closion on one time basis. The collection efficiency continue to be stable at around 98 to 99% and NNV are 23:41 23 minutes, 41 seconds stable at 1% and network is at 112.9 cr invest in this quarter car has 23:49 23 minutes, 49 seconds efficiently improved quarteron quarter and it is 22.8% currently 228.2% 2% currently. 24:00 24 minutes Quickly on the financial slide number 29. 24:04 24 minutes, 4 seconds Our income has increased due to improved collection and recovery. We have reported a total income net of finance 24:10 24 minutes, 10 seconds cost of rupes 39.5 cr against rupes 21.8 cr for the same quarter last year. The 3,000 operating profit has gone up 24:18 24 minutes, 18 seconds substantially to rupees 21 cr against rupes 40 lakh for the same period same quarter last year. Profit before tax for 24:26 24 minutes, 26 seconds the quarter is lower on account of earlier mentioned impairment frozen investment as well as new labor code on one time basis for the year under 24:35 24 minutes, 35 seconds consideration 9 months the total income net of finance cost has moved up from 53.4 cr rupes to 79.4 cr rupees the 24:44 24 minutes, 44 seconds resultant has gone up from 16.4 4 cr to 49.9 cr rupees in the current year. 24:50 24 minutes, 50 seconds These are the major financial highlights. Thank you. And also thank you Praash. Uh I now invite Rahul 24:58 24 minutes, 58 seconds Meotra the CEO of Reier Housing Finance to give his observations on the results. 25:05 25 minutes, 5 seconds Yeah, thank you so much. Uh good evening and welcome to everyone. Uh relegate housing finance company focuses on the affordable segment uh with products such 25:14 25 minutes, 14 seconds as home loans and loan against property with an average ticket size of around rupees 10. As of Q3 end the AM of the 25:21 25 minutes, 21 seconds company uh is rupees 241 crores with a product mix between home loans and loan against property of close to 70 30%. The 25:30 25 minutes, 30 seconds collection efficiency of the company is around 97.36% uh which is slightly higher than last quarter and with a cr of around 132%. 25:38 25 minutes, 38 seconds The company in continues to enjoy investable rating of will be minus from both Ikra and K. Currently the company 25:46 25 minutes, 46 seconds works from a branch network of and serves eight states in the country. The company focuses only on granular retail 25:55 25 minutes, 55 seconds portfolio and has a strong capital uh base of close to rupees 100 crores. 26:01 26 minutes, 1 second Externally uh there are strong growth drivers aided by government initiatives which are driving the affordable housing 26:08 26 minutes, 8 seconds market growth at around 13 to 14%. The company has a stable portfolio. It transformation of the company is in its last leg of implementation. 26:18 26 minutes, 18 seconds Moving to the next slide which is slide uh number 32. The Indian retail credit growth story is intact uh with the 26:25 26 minutes, 25 seconds industry clocking an average CGR of close to 22%. The affordable mortgage leads the AUM growth with about 15.5% 26:32 26 minutes, 32 seconds growth. Considering that the Indian mortgage penetration as a percentage of GDP is only about 11%, there is enough 26:40 26 minutes, 40 seconds and more headroom available for us to grow. The average CAGR clock by the affordable housing finance industry is 26:46 26 minutes, 46 seconds around 20 to 22% which is ahead of the mortgage industry growth percentage. 26:52 26 minutes, 52 seconds Coming to the next slide uh which is slide number 33. We are showcasing the key ratios for the company for the quarter ended December 25. The company 27:00 27 minutes clocked a revenue 7.1 crores with an average yield of around 15%. The company has a stable G&PA and NNPA with NPA around 3.5%. 27:11 27 minutes, 11 seconds The craft for this quarter end has reduced from 142 to 132%. 27:15 27 minutes, 15 seconds uh if we compare it to the last quarter the same is on which we have taken from real enterprise. 27:22 27 minutes, 22 seconds Coming to uh the next slide slide number 34 where we are showial numbers on the 27:40 27 minutes, 40 seconds also been brought down from rupes 13.61 crores to rupes 13.04 04 crores for the same quarter last year. For the quarter ended December 25, the company has 27:48 27 minutes, 48 seconds booked a loss of rupees 5.93 crores, slightly higher due to the impact of provisioning that was taken under the new labor court. Uh that's it from my 27:56 27 minutes, 56 seconds side. Handing over to Mr. Katupta. Thank you Rahul. Uh now that we have discussed the quarter gone by, let me get to the 28:04 28 minutes, 4 seconds other part where we will discuss about reorganization of Religious and de merger of its financial services 28:11 28 minutes, 11 seconds business. On 14th Feb 2026 this year, the boards of Relegar Enterprises Limited and Relegar Fitness Limited have 28:19 28 minutes, 19 seconds approved the de merger of financial services and insurance businesses of the group into two focused and independent listed entities. 28:29 28 minutes, 29 seconds This is not just a re structural or reorganization. It is a strategic imperative step designed to unlock 28:37 28 minutes, 37 seconds shareholder value, create business clarity and position the resulting entities for sustained long-term growth. 28:46 28 minutes, 46 seconds Let me explain the rational a bit in detail. This initiative is driven by certain important factors that have converged to create the optimal 28:53 28 minutes, 53 seconds conditions for this step. First, the takeover of Ariel by Burman Group as promoters. This development brings in 29:01 29 minutes, 1 second decades of institution building experience with top-notch governance and a proven legacy of value creation. 29:09 29 minutes, 9 seconds The group's takeover was followed by capital raise announced earlier which takes care of the funds requirement for 29:18 29 minutes, 18 seconds the businesses for the foreseeable future. That's the second part and that takes care of the capital. And thirdly, 29:26 29 minutes, 26 seconds businesses as they grow and reach a certain scale demand specialized focus. 29:31 29 minutes, 31 seconds We are now at an inflection point where each piece requires and will require dedicated strategic attention. Each 29:39 29 minutes, 39 seconds business also operates with different capital requirements, risk frameworks, manpower, talent and growth trajectories. 29:47 29 minutes, 47 seconds Coming back to the presentation, I'm referring to slide 36 which is just a refresh of our current corporate structure. 29:58 29 minutes, 58 seconds As you see the promoter group on a fully diluted basis after the conversion of uh 30:05 30 minutes, 5 seconds recently issued warrants shall hold 29.75% in 30:12 30 minutes, 12 seconds whereas the public continues to hold the will continue to hold the remaining 70.25 25 and as mentioned earlier uh we 30:20 30 minutes, 20 seconds have care on one side as a insurance segment and we have NBFC's uh RFL and 30:27 30 minutes, 27 seconds housing one below the other and broking as financial services segment just to 30:33 30 minutes, 33 seconds remind uh as far as RL is concerned its stock is listed on BSC and NSC whereas 30:39 30 minutes, 39 seconds RFL is a unlisted entity and uh it is registered with RBI as a uh middle layer category. NBFC. 30:50 30 minutes, 50 seconds Now if you see slide 37, this demerger is built on four pillars. First, streamline business focus and simplified 30:59 30 minutes, 59 seconds structure. The segregation of financial services from insurance business 31:06 31 minutes, 6 seconds is to create a focused entity with specific business model, growth strategy, capital deployment and performance metrices for the teams. 31:18 31 minutes, 18 seconds Secondly, unlocking shareholder value through a separate listing. The independent listing of RFL is expected 31:26 31 minutes, 26 seconds to unlock shareholder value and enhance investor participation. It will facilitate targeted capital raising for 31:33 31 minutes, 33 seconds this business and enable more efficient allocation of management resources thereby supporting sustainable growth 31:40 31 minutes, 40 seconds and long-term value creation by this newly created uh uh company. Third, the 31:49 31 minutes, 49 seconds focus, management, attention and talent alignment. Post de merger, each entity will have dedicated leadership teams. 31:58 31 minutes, 58 seconds The leadership teams are already in the hiring mode. They'll require sharper operational alignment and clearer 32:06 32 minutes, 6 seconds strategic mandates. Decision making has to become faster. Strategic execution has to become more focused. Market responses has to become nimler. 32:17 32 minutes, 17 seconds So with these objectives in mind there is there was a need to bring in this 32:23 32 minutes, 23 seconds clarity. This will also help us set up the objectives for the new incumbents as 32:31 32 minutes, 31 seconds we hire the senior leadership for different components of the business. 32:36 32 minutes, 36 seconds Fourth enhance risk management and compliance. The de merger enables implementation of specific risk management policies and internal 32:44 32 minutes, 44 seconds compliance frameworks tailored to each business segment. This improves monitoring and control of risk associated with them. 32:53 32 minutes, 53 seconds Now moving to slide 38. Let me just outline the proposed structure more clearly. 33:03 33 minutes, 3 seconds This is de merger of financial services business from to RFL pursuant to proposed scheme of arrangement. 33:11 33 minutes, 11 seconds The lending, broking and ancillary support services held under shall be demerged into RFL on a going concern 33:21 33 minutes, 21 seconds basis. The investment in care shall continue to be retained in 33:28 33 minutes, 28 seconds as a consideration for transfer of financial services business. RFL will issue fully paid up equity shares to the 33:35 33 minutes, 35 seconds shareholders of in a 1 is to1 ratio. For every equity share held in there will be 33:44 33 minutes, 44 seconds one RFL share issued upon implementation of the scheme. The RFL shall thereafter will also be listed on the bources. The 33:53 33 minutes, 53 seconds current registrations of RL and RFL with various regulators shall not undergo any kind of change. 34:02 34 minutes, 2 seconds So what does this result into? This creates two parallel purpose organizations with independent 34:09 34 minutes, 9 seconds governance, capital structures and growth mandates as detailed on slide 39. 34:16 34 minutes, 16 seconds On financial services side while the promoters and public shall continue to hold shares in the ratio as mentioned the resulting entity RFS shall have 34:25 34 minutes, 25 seconds relegar broking as its direct subsidiary. It will also have relegar housing finance which is already subsidiary as another fellow subsidiary focusing on affordable housing finance. 34:37 34 minutes, 37 seconds As mentioned earlier, we aim to list RFN in the first quarter of FYI 2028 after the completion of the process for the 34:46 34 minutes, 46 seconds remaining as it exists today. The listed entity shall continue to hold its entire stake 34:53 34 minutes, 53 seconds in care health insurance as it does today. This merger, this de merger will be implemented through a scheme of 35:01 35 minutes, 1 second arrangement under sections 230 to 232 of the company's act 2013 and other relevant provisions of the act read in 35:10 35 minutes, 10 seconds conjunction with them. The scheme shall also require various regulatory approvals as well as shareholders and creditors approvals. The company expects 35:18 35 minutes, 18 seconds the entire process to take 15 to 18 months starting from the current quarter and shall culminate in the first quarter of FY28. 35:28 35 minutes, 28 seconds The detailed timelines can be referred to in slide 40 which is there before you with various steps uh being appended 35:37 35 minutes, 37 seconds alongside. We believe that during this period there will be no disruption to operations, no impact on customers and 35:44 35 minutes, 44 seconds no change to employee continuity. We are committed to ensuring a seamless transition with complete operational 35:52 35 minutes, 52 seconds continuity. Just to reiterate, post de merger each business will have a clarity and focus to pursue its own growth paths. 36:02 36 minutes, 2 seconds This is has been resulted after comprehensive evaluation of various structural alternatives 36:10 36 minutes, 10 seconds uh which were discussed with leading advisers. The board concluded that this particular 36:16 36 minutes, 16 seconds uh initiative and uh option represents the most efficient and future ready structure for our next phase of growth. 36:26 36 minutes, 26 seconds Any future fundraising as and when required will be undertaken based on business growth plans, capital requirements and strategic opportunities 36:34 36 minutes, 34 seconds and will be subject to necessary corporate and regulatory approvals. 36:39 36 minutes, 39 seconds Just to summarize, we are creating a simplified structure with independent business segments concentrating on their core competencies. 36:49 36 minutes, 49 seconds We are unlocking shareholder value through separate listing that enhances investor participation and enables targeted growth. We are enabling better 36:58 36 minutes, 58 seconds management alignment with spec sector specific talent acquisition and performance lean groups. We are 37:05 37 minutes, 5 seconds implementing enhanced risk management with tailored compliance frameworks and strengthened governance. And last but 37:13 37 minutes, 13 seconds not the least, we are executing this transformation backed by a very strong commitment from the board and the promoter group. I thank you all for your 37:22 37 minutes, 22 seconds continued trust and support and we look forward to engaging with you as we move forward in our journey. Thank you so 37:29 37 minutes, 29 seconds much. We are now open to any questions you may have. Over to you. 37:42 37 minutes, 42 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 37:49 37 minutes, 49 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 37:57 37 minutes, 57 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 38:17 38 minutes, 17 seconds The first question is from the line of Omang Sha from Aendas Park. Please go ahead. 38:23 38 minutes, 23 seconds Uh hi sir. So uh firstly congrats on the uh de merger proceed pro proceeding and my question is related to that only uh 38:31 38 minutes, 31 seconds so so I I mean I'm a bit puzzled why uh we chose to demerge financial services and not care directly because when we 38:40 38 minutes, 40 seconds talk about value unlocking uh most part of holdco or uh discount that is there on care in our overall financials that 38:48 38 minutes, 48 seconds could have gone away directly. So any any uh specific reason why we chose RFL and not to demerge care separately? 38:59 38 minutes, 59 seconds So uh um we have not demerged RFL as such. We are basically demerging the entire financial services business of 39:07 39 minutes, 7 seconds relegare into RFL. One right secondly this is a step in the direction or let's say this is the path towards 39:16 39 minutes, 16 seconds you know the final uh uh outcome wherein we believe that each business needs to operate independently. However, the 39:25 39 minutes, 25 seconds current uh consideration before the board uh allowed us to take this first 39:32 39 minutes, 32 seconds step and possibly in future we will take some incremental steps to complete the 39:39 39 minutes, 39 seconds uh uh you know uh uh the the uh de merger uh in the u uh in complete sense 39:47 39 minutes, 47 seconds in terms of uh um insurance business as of now the structure is that the listed 39:54 39 minutes, 54 seconds entity will continue to hold the entire uh shareholding of uh care. 40:02 40 minutes, 2 seconds Uh right sir. So so we are planning reverse merger with Ariel in future after this de merger. I mean we could have incorporated that in this uh uh uh 40:12 40 minutes, 12 seconds scheme of arrangement. So any specific reason why we chose to postpone it after 18 months? 40:20 40 minutes, 20 seconds Well, I think this is as I mentioned this is the first step in that direction and as and when the conditions are 40:26 40 minutes, 26 seconds conducive and there are certain other milestones which are achieved by these businesses we could be evaluating such options in future. 40:38 40 minutes, 38 seconds Uh okay sir. Okay. Okay. No, so I had my question only related to demo otherwise business is absolutely you know it's in their control. 40:46 40 minutes, 46 seconds I don't have many questions over there sir. Uh great. Thank you so much. Thank you. Thank you. 40:55 40 minutes, 55 seconds Thank you. The next question is from the line of Adash from Maya Maset Management. Please go ahead. 41:02 41 minutes, 2 seconds Hello. Uh hi. Um sir, just a follow up on the previous question. Um is it safe to say that while you can't um um you 41:12 41 minutes, 12 seconds know you you've not put it out but um there are precedents now to Max Financials opting to reverse merge the 41:19 41 minutes, 19 seconds life company into the whole core. Um is that the structure that eventually is uh 41:26 41 minutes, 26 seconds so so some investor in releier does have uh access to care uh directly. Is that 41:34 41 minutes, 34 seconds the final outcome? Is that a fair assumption to make? 41:39 41 minutes, 39 seconds Well, uh as I mentioned uh others, uh I mean we will decide about future course 41:46 41 minutes, 46 seconds of action as and when conditions and situations are conducive. 41:52 41 minutes, 52 seconds uh there could be many possibilities as of now our endeavor and our uh this particular step where it has brought us 42:01 42 minutes, 1 second to is that in the resulting structure relegare enterprises would just be holding one asset which is care so that 42:11 42 minutes, 11 seconds it shell itself and the fact that you know there will be an issuance of a RFL equity as well that itself should be 42:18 42 minutes, 18 seconds value accreative for the shareholders in the future We could be looking at various options including the one you 42:24 42 minutes, 24 seconds mentioned but uh the current thinking is to first implement uh this particular scheme in next 15 to 18 months. 42:33 42 minutes, 33 seconds Good sir and the second thing is the infusion of 1500 crores has that money come in and in what form it was put to 42:40 42 minutes, 40 seconds use which businesses have uh have got the capital if you can just highlight that. 42:47 42 minutes, 47 seconds Sure. Sure. So out of 1,500 crores of warrants which we raised so far as of 42:56 42 minutes, 56 seconds the end of the quarter we have received 410 crores which included 375 crores of upfront premium and another 35 crores of 43:05 43 minutes, 5 seconds uh conversion of warrants. Out of this 410 crores, 256 crores has already been 43:11 43 minutes, 11 seconds infused in care by way of subscription of uh rights issue which the company had 43:18 43 minutes, 18 seconds uh uh opened and uh the rest of the money has been uh given to other subsidiaries including broking and 43:27 43 minutes, 27 seconds housing in the form of loan apart from a part of funds which has been uh utilized 43:34 43 minutes, 34 seconds for uh operations of uh since you mentioned the figure of 600 crores, let me clarify and assure you 43:42 43 minutes, 42 seconds here whatever money has been envisaged for different businesses in our shareholder resolution for warrants 43:49 43 minutes, 49 seconds issue all that money is part of this implementation scheme to be directed 43:56 43 minutes, 56 seconds towards those very subsidiaries. So there is no change of plans there and as emphasized care will get an investment 44:05 44 minutes, 5 seconds of up to 600 crores as per the original plans. 44:10 44 minutes, 10 seconds Got it. And sir then I just um uh if you can lay out uh over a 2 three-ear period 44:19 44 minutes, 19 seconds uh for the broking uh NBFC and the housing business what are the broad aspirations plans over 2 three year 44:27 44 minutes, 27 seconds period you do have unutilized uh equity there and u you're talking about another 44:34 44 minutes, 34 seconds 900 crores which is 1,500 minus the 600 crores. So it's a lot of equity in um in 44:40 44 minutes, 40 seconds the broking or NBFC or the HFC. So if you can just highlight what the plan and the use of capital there would be. 44:50 44 minutes, 50 seconds Sure. So uh uh I think during my narration I did mention that uh the leadership for these businesses is uh 44:58 44 minutes, 58 seconds coming into place but very broadly what I can tell you is that uh most of the accounts are right now unleveraged. So 45:06 45 minutes, 6 seconds if I uh look at uh relegar invest limited we are sitting on a cash of 500 crores completely unlevered. So as and 45:15 45 minutes, 15 seconds when we start the business with new uh uh leadership team coming in place we are definitely looking at levering this 45:23 45 minutes, 23 seconds to in industry standards in next couple of years. That's the aspiration. Uh in terms of housing again uh uh right now 45:31 45 minutes, 31 seconds we don't have any uh lending lines and we have aimed to infuse uh a large sum 45:37 45 minutes, 37 seconds up to 250 crores in housing finance. So there also uh we are taking steps to start leveraging there and get banking 45:46 45 minutes, 46 seconds lines and expand the franchise to a much larger number. uh in terms of broking uh 45:54 45 minutes, 54 seconds we just have the company of Vijay he is uh right now evaluating the business on a 360deree basis and I am sure by the 46:04 46 minutes, 4 seconds time we interact next time we will have more details on our side to discuss in 46:10 46 minutes, 10 seconds terms of proteins expansion plans perfect this is useful thank 46:21 46 minutes, 21 seconds Thank you. The next question is from the line of Nitan Dharmawat from Oram Capital. Please go ahead. 46:28 46 minutes, 28 seconds Yeah. Thank you for the opportunity. Am I audible? Yes, please go ahead. 46:35 46 minutes, 35 seconds Yeah. Yeah. So actually to see the de merger scheme and the things that you explain. So you 46:42 46 minutes, 42 seconds mentioned that uh uh that there are certain parameters and certain milestone that you would like to see before you know next steps can be taken. So can you 46:50 46 minutes, 50 seconds elaborate more on that? What are the things in your mind uh before you you take up the next steps? 46:58 46 minutes, 58 seconds No. So well uh I mean some of the milestones pertain to uh uh you know how 47:05 47 minutes, 5 seconds we sort of grow this business uh and what is the growth trajectory. We are looking at what kind of a holding 47:12 47 minutes, 12 seconds structures are there. So there is a promoter group above uh relegar enterprise. Uh we also need to see what 47:20 47 minutes, 20 seconds are the regulatory thresholds. Uh we need to sort of keep in mind in terms of minimum shareholding requirement. 47:28 47 minutes, 28 seconds So some of the considerations need to be in place uh before any uh incremental steps could be taken in that regard. But 47:36 47 minutes, 36 seconds we thought and we evaluated that this is a good credible first step uh in that direction. 47:45 47 minutes, 45 seconds I got it. So, so do we have any doubts about the growth uh trajectory that's why we are we are thinking in this way? 47:51 47 minutes, 51 seconds Are we too conservative in taking the decisions? 47:56 47 minutes, 56 seconds Well, I would not say that we are conservative nin in terms of taking the the decisions but we want to take the 48:05 48 minutes, 5 seconds decisions after thinking hard and making sure that the decisions are right to the 48:11 48 minutes, 11 seconds north. So, so the idea here is that we evaluate each and every situation with 48:18 48 minutes, 18 seconds uh complete 360° approach and thereafter we implement it. So that's uh uh that's 48:26 48 minutes, 26 seconds the approach the management uh uh and the board has so far. 48:32 48 minutes, 32 seconds Okay, got it. Uh wishing you best. Thank you. 48:38 48 minutes, 38 seconds Thank you. The next question is from the line of Yandari from Neo wealth and asset management. Please go ahead. 48:52 48 minutes, 52 seconds Yes. Yes. 48:56 48 minutes, 56 seconds Yes. Pandari please go ahead with your question. Your line is unmuted. 49:06 49 minutes, 6 seconds As there is no response from Mr. 49:08 49 minutes, 8 seconds Bandari. We'll move to the next question which is from the line of Pradhan from Maximal Capital. Please go ahead. 49:21 49 minutes, 21 seconds on the I'm so sorry to interrupt you. We are unable to hear you clearly. 49:34 49 minutes, 34 seconds Is it better now? Yes, Mr. Pradhan, please go ahead. 49:38 49 minutes, 38 seconds Yeah. So, first question on the de merger. So I think there is a IRDA requirement of promoter shareholding 49:46 49 minutes, 46 seconds um which I think along with the private equity investor at the care level we could have probably met uh with the 49:54 49 minutes, 54 seconds funding infusion also happening in place in so was there a reluctance on part of the private equity investor to be the 50:02 50 minutes, 2 seconds promoter for care because of which we could not have done the overall de merger in the way it would have captured the entire 50:12 50 minutes, 12 seconds Well, uh without specifically commenting on a particular stakeholder or uh uh you know participant, 50:20 50 minutes, 20 seconds uh what I would like to say is that there are certain um uh you know conversations certain 50:28 50 minutes, 28 seconds situations which need to be sort of achieved before we take that step. So you are right in terms of the fact that 50:34 50 minutes, 34 seconds the look through uh shareholding of uh the promoter group today in care is uh 50:41 50 minutes, 41 seconds um uh at around 18 to 19%. However there uh are there is a thinking uh to move 50:49 50 minutes, 49 seconds ahead on that and uh at an appropriate time we will be able to come back to uh the shareholders uh with the decisions about it. 51:01 51 minutes, 1 second Okay. Uh secondly sir with IL um you know there was this ongoing case with LBB fixed deposits which were sort of 51:09 51 minutes, 9 seconds captured by them. So what is the current status of them? because I think LBB has 51:15 51 minutes, 15 seconds been taken over by DBS and uh so when you report your net worth as 800 cr is 51:23 51 minutes, 23 seconds it uh what happens to that 700 cr is that something that we are going to collect and then that will add to this 51:32 51 minutes, 32 seconds net worth or uh what is the situation there? 51:37 51 minutes, 37 seconds So as far as LVB is concerned, Hitend it so the matter is subjided right now in 51:45 51 minutes, 45 seconds Delhi High Court and um uh the LVB has been replaced by DBS since LVB was taken 51:53 51 minutes, 53 seconds over by DBS. So uh DBS has replaced LVB uh in the court. Uh in terms of uh any 52:01 52 minutes, 1 second resolution, I think uh uh we are still some distance away. uh uh and uh uh the 52:08 52 minutes, 8 seconds matter is being taken up in Delhi High Court right now. 52:14 52 minutes, 14 seconds No. So this net worth of 800 cr is uh assuming you have already provided 700 cr for the LVB account. 52:24 52 minutes, 24 seconds Yes. Yes. 52:25 52 minutes, 25 seconds We have already provided for LVB provision. So we are not anything outstanding in box of account. The 800 cr worth is over and above this. 52:33 52 minutes, 33 seconds Yeah. So entire uh uh FD amount hittind of uh 750 crores has been provisioned uh in RFL. 52:44 52 minutes, 44 seconds Okay. And roughly at the uh at the RFL level now you had so many bad loans. Uh 52:51 52 minutes, 51 seconds so what is that collectible pool um in totality and what uh are we planning to 52:59 52 minutes, 59 seconds do about that? So what is the expected recoveries from those those account let's say on a per year basis going 53:07 53 minutes, 7 seconds forward if you see the in our presentation the AUM from the SM book is 70 cr rupees and 53:16 53 minutes, 16 seconds whatever the bed loan which are there we are in the already in the lot of litigation is there so we are fighting in the case and as and when we are get 53:25 53 minutes, 25 seconds the favorable order from the court we will recover from the money from the all the litigations So on a conservative basis just to add 53:33 53 minutes, 33 seconds here while the current cash position of RFL is above 500 crores and the good 53:41 53 minutes, 41 seconds book which is left behind is around 70 crores then there are certain accounts where there is a view that there could 53:48 53 minutes, 48 seconds be certain recoveries. If we step back into uh the corporate loan book side that entire corporate loan book has been 53:56 53 minutes, 56 seconds so far provisioned. However, there is a dedicated collection team which is making efforts and um looking at various 54:06 54 minutes, 6 seconds options in terms of recovery. However, at this point in time, we uh are uh you 54:13 54 minutes, 13 seconds know not in a position to give you any target recovery number here. 54:20 54 minutes, 20 seconds Okay. And sir, uh IFRS results of uh for the insurance company. So normally you know some of our comparable companies 54:29 54 minutes, 29 seconds are giving out IFRS 1 by N and width and everything. In our case we have given some operational parameter without 1 by 54:38 54 minutes, 38 seconds N and then we have given if N ind. So what are our IFRS uh numbers if it would be great if it it can be put in the 54:46 54 minutes, 46 seconds presentation going forward but as of now for the 9 month FI 26 and 25 what is our IFRS pattern? 54:56 54 minutes, 56 seconds No. Hi, I'm this site. So, we're in the process of preparation these numbers and uh uh maybe maybe from next quarters or 55:04 55 minutes, 4 seconds next to next quarter we'll be we won't be publishing those numbers but roughly can you give us an idea of what is that number right now? 55:14 55 minutes, 14 seconds Uh no I think u uh I I'll still say that we are in the process of repression of those numbers. So would not like to comment on that. 55:23 55 minutes, 23 seconds Okay. And sir finally on the broking piece so normally you know all the brokers um you know trade at very high 55:29 55 minutes, 29 seconds roe numbers and in our case it is single digits. So you know is it because we are 55:36 55 minutes, 36 seconds uh very suboptimally utilizing our expense base as of now and what is the 55:44 55 minutes, 44 seconds program to sort of increase it to let's say 25 30% roe number which is very common amongst brokers. 55:54 55 minutes, 54 seconds Okay. Uh so on broking side yes uh we achieve to definitely increase the productivity of the infrastructure that 56:01 56 minutes, 1 second we have and there is definitely a scope to do that and uh going forward uh we 56:07 56 minutes, 7 seconds are going to work on that and uh what was your second question about this infrastructure and 56:14 56 minutes, 14 seconds so basically we are having 67% roe right uh so I wanted to understand is there a pathway and how quickly can we go to a 56:22 56 minutes, 22 seconds normal roe for a broker which is in the vicinity of 25 30%. 56:29 56 minutes, 29 seconds That number we have not done uh as of now. Uh as per mentioned that I have recently joined and I'm just understanding the business right now and 56:38 56 minutes, 38 seconds we already have a large client base and our active client ratio is less than the market. So I showed a number that industry level we have 21 core team 56:47 56 minutes, 47 seconds accounts and about 21% are the traded clients. For us that number is about 14%. So there is a headroom available for us to increase our active client. 56:55 56 minutes, 55 seconds That's straightforward result into into the the business growth for us. The RO numbers we have not worked out. Right now our priorities remain to improve our 57:04 57 minutes, 4 seconds digital offering as well as our presence in our large cities and work on the productivity uh of our resources that 57:11 57 minutes, 11 seconds are already deployed in the business. Uh I don't know uh but we'll take some time before we start working on the ro numbers. 57:19 57 minutes, 19 seconds Okay. So thank you and all the best. Thank you. 57:25 57 minutes, 25 seconds Thank you. The next question is from the line of Rabi Purohit from Securities Investment Management. Please go ahead. 57:32 57 minutes, 32 seconds Yeah. Hi, thanks for uh giving the opportunity to ask question. Uh congratulations Patul on the on the restructuring announced just you know 57:40 57 minutes, 40 seconds follow up on the earlier participants questions on you know the way we have structured this. uh so IRDA I think has 57:46 57 minutes, 46 seconds some ruling of uh you know u 25% being the minimum shareholding required to be classified as promoters and I think you 57:54 57 minutes, 54 seconds just mentioned that the Burman family um you know uh at the current uh see-th through holding is about 18 19%. Is it 58:02 58 minutes, 2 seconds fair to assume that they will have to increase their stake in Ariel itself uh to basically qualify uh as a as a you know promoter 58:11 58 minutes, 11 seconds of care health uh at a future date if at all you know once that that has to be merged into this. So is is there some is 58:19 58 minutes, 19 seconds there a intent on on that u that if you could you know just share 58:26 58 minutes, 26 seconds Rabi um uh thanks for joining uh I mean I am I I can't comment on behalf of 58:33 58 minutes, 33 seconds promoters here so uh I think this is a question best left to the wisdom of promoters here what we understand is 58:42 58 minutes, 42 seconds that uh will continue to be promoter of care as it has been so far and any kind of 58:50 58 minutes, 50 seconds future thinking is a prerogative of uh the promoter group and uh I think at at 58:57 58 minutes, 57 seconds a point in time uh they they shall come back to uh us through the board uh with their state-of-the-art thinking is what 59:06 59 minutes, 6 seconds I can observe right now. So Bul just one request you know since this uh handover or the takeover has just concluded right 59:13 59 minutes, 13 seconds in a it's been like two three quarters now is it possible for you know the Burman family to also kind of join one 59:21 59 minutes, 21 seconds of the calls if not all the calls just to kind of share with the shareholders you know their long-term vision because you know this this this company has been 59:29 59 minutes, 29 seconds kind of under under uh you know hammer and battle for the last you know I don't know how many years now uh and it's just 59:36 59 minutes, 36 seconds like uh finally some path is being kind of you know drawn uh for its future. uh it could have been helpful if if you know you know if the Burman family one 59:44 59 minutes, 44 seconds of the members could at least have like one call or interaction with you you know investors just to kind of you know 59:53 59 minutes, 53 seconds share with them what is it that they're thinking you know what is it that their long-term vision about this companies right they hold stakes in Aviva they 1:00:00 1 hour hold stakes in general so insurance right side so there are a lot of smaller stakes or you know um that they own where they are not promoters of those 1:00:08 1 hour, 8 seconds insurance businesses um so you know Is this like just another of those or is this something that they are seriously 1:00:15 1 hour, 15 seconds looking at building over a long period of time? If you could just share our message and concern to the Burman family and you know request them if they can 1:00:23 1 hour, 23 seconds participate in one of the calls u and you know just just share their thoughts uh with the investors it would be great. 1:00:33 1 hour, 33 seconds So sure your request is noted and it will get communicated to the promoter I can assure. Thank you so much. 1:00:42 1 hour, 42 seconds Yeah. Yeah. And so next question is you know on on care health insurance right and I think one of the participants had also asked about IFRS numbers again that 1:00:50 1 hour, 50 seconds is so you know in one of the slides we have discussed without 1 byN where our profit before tax for the first 9 months 1:00:56 1 hour, 56 seconds is about 265 odd crores uh whereas on a 1 byN basis uh there is actually a loss 1:01:04 1 hour, 1 minute, 4 seconds right now right um so is it so while we understand that the IFRS numbers are still not done but typically what we've 1:01:11 1 hour, 1 minute, 11 seconds seen is IFRS numbers generally tend to be slightly higher or significantly higher than the reported numbers. So is it fair to assume that the IFRS uh 1:01:20 1 hour, 1 minute, 20 seconds profits and IFRS numbers uh are better than what we've reported on without 1 byN basis u and is it a business which 1:01:28 1 hour, 1 minute, 28 seconds actually makes a decent ROE double digit RO as we speak today or is that that's not the case as of now? 1:01:37 1 hour, 1 minute, 37 seconds Um so we on ro I think in the previous three full financial year our roe was always in the range of mid uh this year 1:01:45 1 hour, 1 minute, 45 seconds as you rightly mentioned the numbers are 265 crores on a full team basis at least 92 crores but again uh on numbers u 1:01:53 1 hour, 1 minute, 53 seconds again we'll not be able to comment on that on the assumption that uh that the numbers would be higher than the numbers reported on a on a full preview basis. 1:02:02 1 hour, 2 minutes, 2 seconds So we'll we'll come back to you on that uh once the numbers are ready. 1:02:06 1 hour, 2 minutes, 6 seconds Okay. Okay. Uh uh just one request same pratu just like you know for what we mentioned about relic care if if Anoj 1:02:15 1 hour, 2 minutes, 15 seconds can participate in one of the calls and share his wisdom and he's been one of the promoters promoter founder not promoters I would say founder uh you 1:02:23 1 hour, 2 minutes, 23 seconds know uh investor CEO MD of the company and and has kind of uh set up this company uh you know ground up. So u it 1:02:32 1 hour, 2 minutes, 32 seconds will be great to hear his vision also right uh to uh for for incoming shareholders. uh see relegar has a very 1:02:39 1 hour, 2 minutes, 39 seconds very long history and baggage right so it helps uh and gives investors also something to kind of look forward to 1:02:46 1 hour, 2 minutes, 46 seconds when they hear uh you know straight from the horse's mouth what their long-term vision is and these guys don't have to come every call right but they can just 1:02:54 1 hour, 2 minutes, 54 seconds come once at the beginning of the journey and express their thoughts and vision with shareholders and I think it'll be a great initiative uh y'all are 1:03:02 1 hour, 3 minutes, 2 seconds already doing a great initiative by holding these con calls such early in life uh corporate life of releiger and new management. I think if one of the 1:03:10 1 hour, 3 minutes, 10 seconds calls someone from the Burman family and Anoj can come and address the investor that will be great. I think it will go 1:03:17 1 hour, 3 minutes, 17 seconds it will go a long way in kind of you know um us being able to share their vision of what they want these companies 1:03:26 1 hour, 3 minutes, 26 seconds to become over a 5 10 year period. Sure Ravi uh your suggestion is again noted and uh we will make sure that it is 1:03:34 1 hour, 3 minutes, 34 seconds communicated to uh the uh management definitely. 1:03:39 1 hour, 3 minutes, 39 seconds Okay. Sure. Sure. Thanks a lot and I'll get back in the queue. 1:03:44 1 hour, 3 minutes, 44 seconds Thank you. The next question is from the line of Vicasha from RBC Financial Services. Please go ahead. Yeah, thank you for taking my question. 1:03:53 1 hour, 3 minutes, 53 seconds So my understanding clearly of the IDA law is that for a reverse merger there has to be a promoter with 25%. 1:04:02 1 hour, 4 minutes, 2 seconds So every which way this reverse merger cannot happen till the promoter owns 25% 1:04:09 1 hour, 4 minutes, 9 seconds of of care and as of now the looks through is only about 19%. That I'm just making 1:04:16 1 hour, 4 minutes, 16 seconds a statement and uh would you confirm that that's the law? Well, I think law today. 1:04:26 1 hour, 4 minutes, 26 seconds Well, yeah, it's established law. So, it's established now. 1:04:30 1 hour, 4 minutes, 30 seconds No, just for you know, many of us investors are not clear on law. So we we needed to thus my second question was on 1:04:38 1 hour, 4 minutes, 38 seconds the stock options of the US CEO if there's any progress what is it what is it worth or you know in terms of 1:04:46 1 hour, 4 minutes, 46 seconds percentage of care and in terms of clawback and the case going on if you could provide us an update the second 1:04:53 1 hour, 4 minutes, 53 seconds question on insurance was that you know there seems to be a little bit of worry in the investor's mind on you know if numbers not coming and the insurance 1:05:01 1 hour, 5 minutes, 1 second business not doing too Well, if you could kind of say is this just a procedural delay because post all this happened is it just a procedural delay 1:05:10 1 hour, 5 minutes, 10 seconds and how are we doing as compared to the industry both in terms of growth in terms of costs etc. If you know some 1:05:19 1 hour, 5 minutes, 19 seconds kind of comfort without giving specifics as to how is our how is the care insurance business doing those are the two questions on the insurance business. 1:05:30 1 hour, 5 minutes, 30 seconds Well, so um uh I'll get uh um care management to respond on uh IFRS, but before that since you mentioned about uh 1:05:39 1 hour, 5 minutes, 39 seconds the uh ESOPS of Earthwise chair uh I presume that's the uh query you have and 1:05:48 1 hour, 5 minutes, 48 seconds uh uh the matter right now Pash is uh uh subjudice uh uh as of now what we 1:05:57 1 hour, 5 minutes, 57 seconds understand is that uh there is IRA is brief on that and the matter is lying in 1:06:03 1 hour, 6 minutes, 3 seconds courts. Um it is public knowledge that uh uh ESOPs uh to the tune of more than 1:06:10 1 hour, 6 minutes, 10 seconds 2% of the equity of care health insurance was granted to her and uh uh 1:06:17 1 hour, 6 minutes, 17 seconds we also understand that uh the one-/ird options which were exercised by her uh 1:06:25 1 hour, 6 minutes, 25 seconds currently are um uh something which is a subject matter of uh discussion uh in the course as well as with the agency. 1:06:34 1 hour, 6 minutes, 34 seconds See the unvested unex exercised portion which is 2/3 of uh uh the ESOPS uh is um 1:06:45 1 hour, 6 minutes, 45 seconds something u you know uh so there is no transaction which has happened uh as far as those ESOPs are concerned. 1:06:53 1 hour, 6 minutes, 53 seconds uh Amish you want to comment on? 1:06:54 1 hour, 6 minutes, 54 seconds Yeah. Now on the on the performance uh Praash so as we presented our numbers on a full premium basis which is without 1 by because 1 byN is just an accounting 1:07:03 1 hour, 7 minutes, 3 seconds change and we also take all the cost basis full premium basis. So as we highlighted our growth on a full premium basis is 27% uh on a total GWP. Our 1:07:13 1 hour, 7 minutes, 13 seconds retail health has improved by 41% in this quarter which was uh a significant growth as compared to previous quarter. 1:07:20 1 hour, 7 minutes, 20 seconds Our profitability numbers they were 265 K and our combined ratio has also improved by 110 basis points. So all financial metrics if you look at it the 1:07:28 1 hour, 7 minutes, 28 seconds way we used to present our numbers earlier they have been improving or they have improved in this financial year and 1:07:34 1 hour, 7 minutes, 34 seconds um so the and on the EUM side it is coming down uh it it has reduced by 150 basis points and uh we are also well compliant with the regulations as well. 1:07:45 1 hour, 7 minutes, 45 seconds as as far as the performance of the business is concerned uh we are quite satisfactory with the way business is doing. 1:07:53 1 hour, 7 minutes, 53 seconds That is comforting. My name is Vicas. 1:07:55 1 hour, 7 minutes, 55 seconds Now just coming to the demerged part of the business I'm again reconfirming what I understand is that no legacy amounts 1:08:04 1 hour, 8 minutes, 4 seconds are still in the balance sheets as assets. They have all been written off. 1:08:07 1 hour, 8 minutes, 7 seconds Whatever we recover will be a bonus. And just back of the envelope uh you know totaling I was doing while you were 1:08:15 1 hour, 8 minutes, 15 seconds speaking earlier. Is my understanding right that the non after writing off everything the the the DB the Lakshmi 1:08:24 1 hour, 8 minutes, 24 seconds villas bank and all the earlier loans the book value of your demerge business is about 70 to 90 1:08:33 1 hour, 8 minutes, 33 seconds rupees a share uh is my understanding. Would that be right approximately give or take 510 1:08:40 1 hour, 8 minutes, 40 seconds crores here or there because you have eight and and also would that also sorry let me just 1:08:47 1 hour, 8 minutes, 47 seconds complete also would that include the I'm assuming out of the 1500 900 crores is going to come you said 600 you are 1:08:55 1 hour, 8 minutes, 55 seconds allocating to the insurance business so that all the other 900 would come to the demerged entity just before and after 1:09:03 1 hour, 9 minutes, 3 seconds with the 900 without the 900 uh what is the book value of our assets there in the sense that what is the cash what is 1:09:12 1 hour, 9 minutes, 12 seconds the surplus cash where are we with this n with or without this 900 on on all these companies combined 1:09:22 1 hour, 9 minutes, 22 seconds so uh Vicas as I mentioned uh it'll be difficult for me to give you the uh 1:09:29 1 hour, 9 minutes, 29 seconds share price or uh of of the uh resulting company what I can tell you right now is 1:09:37 1 hour, 9 minutes, 37 seconds that RFL currently is as I mentioned earlier sitting on a cash of 500 crores plus the 1:09:44 1 hour, 9 minutes, 44 seconds total net worth is 800 crores plus uh the net worth of releving 1:09:51 1 hour, 9 minutes, 51 seconds is uh over 3 and 350 crores it is approximately 366 crores. uh uh in case 1:09:59 1 hour, 9 minutes, 59 seconds of RFL housing is assumed there then on top of it you are right a large part of 1:10:07 1 hour, 10 minutes, 7 seconds 900 crores is going to flow towards financial services business. So uh a 1:10:14 1 hour, 10 minutes, 14 seconds apart from some operating expenses the remaining uh amounts shall flow towards financial services business. So 1:10:21 1 hour, 10 minutes, 21 seconds okay so that no I was not asking you for the share price I was I was only talking about net worth. Yeah, 1:10:29 1 hour, 10 minutes, 29 seconds I got that. So that's pretty much challeng uh uh but I mean I'll leave the back of 1:10:40 1 hour, 10 minutes, 40 seconds back of the envelope calculations to you. I would ideally like to come back to you with more precise numbers sometime later in future. 1:10:48 1 hour, 10 minutes, 48 seconds I appreciate that. Now last question you have been very helpful. So just this last question you know last call you 1:10:54 1 hour, 10 minutes, 54 seconds said that with uh DB taking over LBB and again you know this LBB though it is jud 1:11:02 1 hour, 11 minutes, 2 seconds you know it is subjudish uh there is also uh been a you know there's a commitment that 50% of the you 1:11:11 1 hour, 11 minutes, 11 seconds know this was an FDN interest and you did mention on the last call that we have a very strong case and BB being a stronger bank you did express an opinion 1:11:20 1 hour, 11 minutes, 20 seconds that your case was very very strong. Is there any possibility of an outofc court settlement? Are we discussing it or are 1:11:28 1 hour, 11 minutes, 28 seconds we just going hammer and tong since our case is so strong? Are we going hammer and tong on the high court case? Is it 1:11:36 1 hour, 11 minutes, 36 seconds also that since it was a FDA with a coupon rate the interest the probability of getting interest is high and my last 1:11:45 1 hour, 11 minutes, 45 seconds question on this is that you have you know you have a transaction with 50% of the principle of Deutsch Bank sorry 70 1:11:53 1 hour, 11 minutes, 53 seconds and 50% of the interest has to go to has to go to the earthwide lenders with whom you've made a unwise settlement even if 1:12:02 1 hour, 12 minutes, 2 seconds I reduce that that amount also comes to about as again back the envelope and you don't need to comment on it is about 700 crores our shares all shares of 450 plus 1:12:12 1 hour, 12 minutes, 12 seconds 250 even this would I'm assuming if if and when it comes it would also acrue to the it would also acrew to the to the 1:12:21 1 hour, 12 minutes, 21 seconds you know to the demerge business so um uh I uh I mean uh I've got uh the 1:12:30 1 hour, 12 minutes, 30 seconds general counsel Babu here with me and I would actually request him to give his observations as far as DBS matter is concerned. 1:12:39 1 hour, 12 minutes, 39 seconds Yeah, maybe the numbers you could comment on. Sure. 1:12:43 1 hour, 12 minutes, 43 seconds Yeah. Not be numbers commenting. See the thing is first of all I think these are all written off accounts right from our books actually it has been already told. 1:12:52 1 hour, 12 minutes, 52 seconds So matters are subsidized and we are putting companies putting all efforts to recover its money right whatever we'll 1:13:00 1 hour, 13 minutes get it and in that process we can that can be you know out of court settlement or within the court whatever it is we 1:13:08 1 hour, 13 minutes, 8 seconds are open but at appropriate stage I think we'll be you know considering all those options and secondly on the 1:13:16 1 hour, 13 minutes, 16 seconds this thing recovery I think uh we as you already you know sort of noted that actually we have a strong case. We will 1:13:23 1 hour, 13 minutes, 23 seconds be I think trying putting all our efforts to recover the money fully. And third point is that on the sharing of 1:13:30 1 hour, 13 minutes, 30 seconds the existing money some money to banks and all as per the agreed you know agreements terms of the agreement we 1:13:38 1 hour, 13 minutes, 38 seconds will be honoring those commitments also which you have to which is which is fair. 1:13:44 1 hour, 13 minutes, 44 seconds Got it. And uh the numbers the numbers if I ask you has somebody made a calculation that what is our share with accured interest till date the principle 1:13:53 1 hour, 13 minutes, 53 seconds and interest what is we can calculate anything and everything unless and until we see the color of the money then there's no point in the 1:14:01 1 hour, 14 minutes, 1 second color as an investor Mr. Babu color that is why investor invests for future probabilities 1:14:08 1 hour, 14 minutes, 8 seconds I agree but the thing is color of the money yes will come I'm sorry to interrupt you Mr. Shivas may request you to please rejoin the 1:14:16 1 hour, 14 minutes, 16 seconds queue. We have participants waiting for the Thank you. No, thank you very much. This is very helpful. 1:14:21 1 hour, 14 minutes, 21 seconds Thank you. The next question from the line. I'll just make an observation here. 1:14:25 1 hour, 14 minutes, 25 seconds Let's see some progress and then have this discussion because thank you so much. 1:14:34 1 hour, 14 minutes, 34 seconds Thank you. The next question is from the line of Rohan Jen from Blue Nile Capital. Please go ahead. 1:14:41 1 hour, 14 minutes, 41 seconds Yeah, thank you for the opportunity. Am I audible? Can you speak a bit louder? Yeah. Am I audible now? 1:14:49 1 hour, 14 minutes, 49 seconds Yes. Go ahead. 1:14:51 1 hour, 14 minutes, 51 seconds Yeah. Uh I had a question regarding the lending and broking businesses. So with regards to those two businesses, are we largely done with the leadership hiring 1:14:59 1 hour, 14 minutes, 59 seconds there or uh are there any further uh you know leadership hiring left uh in those two segments and again what kind of 1:15:07 1 hour, 15 minutes, 7 seconds scale up are we seeing? do we foresee in those two segments? If you can just share some more qualitative color on uh 1:15:15 1 hour, 15 minutes, 15 seconds what is the plan for the ramp up of those two segments please? 1:15:20 1 hour, 15 minutes, 20 seconds Sure. So uh well as I mentioned uh Vijay is already here as far as broking is concerned and uh uh some more uh uh leadership hiring uh is in the offing. 1:15:34 1 hour, 15 minutes, 34 seconds uh you will hear from us very soon both on uh uh broking and lending pieces. Uh as I mentioned that we are uh looking at 1:15:43 1 hour, 15 minutes, 43 seconds industry leaders who uh approach the business in a bit of a entrepreneurial way and have long-term commitment to expand the franchises multiffold. 1:15:55 1 hour, 15 minutes, 55 seconds Uh in terms of our targets for expansion uh we would let the new leadership 1:16:03 1 hour, 16 minutes, 3 seconds decide what could be the milestones or goalposts. As relegar we are committed to provide the capital and um uh the 1:16:13 1 hour, 16 minutes, 13 seconds right uh platform for these business leaders to grow the business. As I mentioned earlier during my narration, 1:16:21 1 hour, 16 minutes, 21 seconds uh both broking and uh uh our MSME lending business can be leveraged much more and uh as we move forward, we would 1:16:30 1 hour, 16 minutes, 30 seconds like to uh utilize that opportunity and expand the franchise multiffold. 1:16:37 1 hour, 16 minutes, 37 seconds Thanks a lot for the answer. And then small request as one of the earlier participants had highlighted it would be 1:16:44 1 hour, 16 minutes, 44 seconds great if Mr. Ano julerti uh and/or the the dhabber uh promoter family uh they could join the call and you know share 1:16:52 1 hour, 16 minutes, 52 seconds their thoughts on how they look at their respective businesses going ahead. which would help us as you know minority shareholders uh better understand where 1:17:01 1 hour, 17 minutes, 1 second you know the business is going in the next few years and secondly in the IFRS bit as well if uh you know disclosures can be improved not just with regards to 1:17:09 1 hour, 17 minutes, 9 seconds IFRS but if I were to compare your deck with those of your peers with when it comes to the insurance piece uh there's 1:17:16 1 hour, 17 minutes, 16 seconds a lot of I think gap there as well if that can be covered up also it would be really really helpful with regards to other disclosures within the insurance 1:17:24 1 hour, 17 minutes, 24 seconds business itself That's all from my side. Many thanks. 1:17:29 1 hour, 17 minutes, 29 seconds Sure. Sure. Thanks, Rohan. All suggestions noted and uh uh we will come back to you. 1:17:37 1 hour, 17 minutes, 37 seconds Thank you. The next question is from the line of Chintan Ma from Pineska family office. Please go ahead. 1:17:44 1 hour, 17 minutes, 44 seconds Thank you so much for the opportunity sir. So my question is regarding shareholder threat of large equity dilution with a demerge entity of NBSK 1:17:51 1 hour, 17 minutes, 51 seconds division. So for example last equity dilation of you because of some 1:17:58 1 hour, 17 minutes, 58 seconds I'm sorry to interrupt you Mr. Ma we are unable to hear you sir your voice is breaking 1:18:05 1 hour, 18 minutes, 5 seconds yeah it's not how loud and clear hello yes please go ahead 1:18:12 1 hour, 18 minutes, 12 seconds share the threat of large equity dilution at really NDFC division so for example last equity dilation of 1500 cr 1:18:20 1 hour, 18 minutes, 20 seconds we have taken it 2.7 to3 book value but if de merger of financial services into separate entity and it does not have a 1:18:27 1 hour, 18 minutes, 27 seconds right equity listed valuation then we need to take a very large equity dashion at a very low multiple. So how we are going to mitigate that risk uh if you 1:18:36 1 hour, 18 minutes, 36 seconds can broadly explain that would be great. 1:18:42 1 hour, 18 minutes, 42 seconds So if I have got your question right uh um Chindan uh uh you are possibly asking about any future dilution on the 1:18:51 1 hour, 18 minutes, 51 seconds financial services side right so uh as I mentioned earlier in my narration that 1:18:58 1 hour, 18 minutes, 58 seconds uh um uh the the financial services pieces are very well capitalized and we 1:19:06 1 hour, 19 minutes, 6 seconds did the large last large fund raise by way of Warren's preferential very recently and uh the world's conversion a 1:19:15 1 hour, 19 minutes, 15 seconds significant portion of it is yet to happen and the money is targeted towards the stated end goals. So uh the focus 1:19:23 1 hour, 19 minutes, 23 seconds for the management right now is to utilize that funding to grow the business, expand the franchise and then 1:19:30 1 hour, 19 minutes, 30 seconds look outside for any kind of a strategic capital. So uh our belief is that uh we 1:19:37 1 hour, 19 minutes, 37 seconds will make these businesses scalable and at an appropriate stage uh we will step out uh for any incremental fund raise uh 1:19:46 1 hour, 19 minutes, 46 seconds as and when required which will be value applative for all the shareholders. 1:19:52 1 hour, 19 minutes, 52 seconds So before the de merger what is the target we are uh expecting or something in next 18 month that will set up our 1:20:01 1 hour, 20 minutes, 1 second base to take further dilution if needed. 1:20:07 1 hour, 20 minutes, 7 seconds So as I mentioned I mean if we look at RFL we are yet to restart the business and there is enough capital to do so and 1:20:15 1 hour, 20 minutes, 15 seconds then we have the ability to leverage that further. So uh we would take those baby steps and uh uh look at uh the 1:20:24 1 hour, 20 minutes, 24 seconds first 18 months in terms of uh growth trajectory and once this scheme is implemented then we will chart out our incremental uh uh capital raise plans 1:20:33 1 hour, 20 minutes, 33 seconds and come back to uh you for the same. So sir particular date when we are going to 1:20:41 1 hour, 20 minutes, 41 seconds first dispersement of the new division any next one quarter next two month or something. 1:20:48 1 hour, 20 minutes, 48 seconds Sorry I completely missed the question uh chitan here. 1:20:52 1 hour, 20 minutes, 52 seconds So when we are going to start a disbbursement in this NDFC division 1:21:00 1 hour, 21 minutes as I have been mentioning that you know we are just getting the leadership in place. You will hear from us soon. Once the leaders are there then the business 1:21:08 1 hour, 21 minutes, 8 seconds client shall be there and we will uh announce uh you know uh uh we stepping 1:21:16 1 hour, 21 minutes, 16 seconds back into the market. As far as uh MSME loans are concerned on the housing front we continue to be in the market and uh 1:21:24 1 hour, 21 minutes, 24 seconds disperse the loans possibly in next 3 6 months or any roughly I mean you are talking about too 1:21:30 1 hour, 21 minutes, 30 seconds long and you have taken control of last one year or so. So 1:21:38 1 hour, 21 minutes, 38 seconds uh well I I mean uh Chra I can't really comment on month on month or quarter on quarter uh uh uh expectations but uh as 1:21:47 1 hour, 21 minutes, 47 seconds I said lot of legacy issues are out there is much more clar regulatory clarity if you see we um achieved our 1:21:56 1 hour, 21 minutes, 56 seconds cap removal uh couple of quarters back uh there is a collection machinery which is already working overtime time. So, uh 1:22:05 1 hour, 22 minutes, 5 seconds to our mind uh we are sort of seeing convergence of uh various efforts and it 1:22:12 1 hour, 22 minutes, 12 seconds should finally culminate into a tangible startup of the business very soon. 1:22:19 1 hour, 22 minutes, 19 seconds Yes, I cannot hit the perfect numbers or something. Okay. Thank you so much, sir. 1:22:25 1 hour, 22 minutes, 25 seconds Sure. Once we once we uh have decided and we sort of take those steps definitely we will be uh communicating 1:22:34 1 hour, 22 minutes, 34 seconds the same to the markets and to you definitely thank you. The next question is from the line of Sugandhi Sut from BTH partners. 1:22:45 1 hour, 22 minutes, 45 seconds Please go ahead. Yes, thank you for taking my question. 1:22:49 1 hour, 22 minutes, 49 seconds Um uh this is with regards to the insurance business and uh I'm referring to the public disclosure that uh care 1:22:57 1 hour, 22 minutes, 57 seconds does uh in line with uh other insurance companies uh you know if I look at the 1:23:03 1 hour, 23 minutes, 3 seconds numbers on a quarterly basis uh you know there seems to be a deterioration in the claims ratio and even on a nine monthly 1:23:13 1 hour, 23 minutes, 13 seconds basis you know the bad numbers that uh I I see in the quarterly disclosures you know I'm not able to reconcile them with the numbers in the presentation. 1:23:23 1 hour, 23 minutes, 23 seconds So uh you know on my rough calculation the combined ratio quarter and quarter has gone the claims ratio on quarter and quarter has gone from 70 to 75%. 1:23:33 1 hour, 23 minutes, 33 seconds Uh so you know if you could just uh uh you and also the solvency I wanted to understand in insurance uh you know how 1:23:42 1 hour, 23 minutes, 42 seconds comfortable you are with this level and you know post the capital inclusion you know what in your calculation would be the solveny ratio. 1:23:54 1 hour, 23 minutes, 54 seconds Yeah. Hi. So the numbers that you are referring is are on a 1 byN basis. Uh wherein we are seeing that because of 1:24:02 1 hour, 24 minutes, 2 seconds this accounting impact of 1 by which I mentioned in my presentation as well and because of the deferral of premium which is resulting into lower net earned 1:24:10 1 hour, 24 minutes, 10 seconds premium we are seeing these elevated numbers on the claim ratio side as well and on a combined ratio side as well. 1:24:16 1 hour, 24 minutes, 16 seconds But when we look at our numbers on a full premium basis all the metric all the financial metric you are seeing uh they are much better as compared to PBSC 1:24:24 1 hour, 24 minutes, 24 seconds be it combined ratio be it uh expense of management ratio be it profitability be it growth be retail book growth uh and 1:24:31 1 hour, 24 minutes, 31 seconds be it expense of management as well. uh so on a one by basis u uh the numbers it is it is only a transition impact 1:24:39 1 hour, 24 minutes, 39 seconds because uh which I gave an example as well in my opening remarks as well uh that if a business which is to be rupes 1:24:47 1 hour, 24 minutes, 47 seconds for 3,000 rupee is booked uh is a long-term business earlier we were allowed to book entire 3,000 rupee now we can book only 1,000 rupee and hence 1:24:54 1 hour, 24 minutes, 54 seconds the 2,000 rupees got deferred so as on date close to 1400 cr is deferred on the premium side which is which is which has 1:25:02 1 hour, 25 minutes, 2 seconds given a negative impact act on our earned premium and and hence we are seeing these elevated numbers but on a full premium basis the way we take all the decisions in our organization uh all 1:25:11 1 hour, 25 minutes, 11 seconds the financial metrics they you can refer our presentation as well which is on slide number 14 uh and you'll be able to see all the numbers on a full basis. 1:25:20 1 hour, 25 minutes, 20 seconds So sir have you disclosed the number on on a on a on the basis on which the regular has mandated in the current 1:25:28 1 hour, 25 minutes, 28 seconds presentation? Could you refer to a slide which which is which is more like for like in line with you know what other players report? 1:25:36 1 hour, 25 minutes, 36 seconds Yeah. So slide number 15 is the numbers which are basis 1 by n wherein for this quarter as you're mentioning the claim 1:25:44 1 hour, 25 minutes, 44 seconds ratio is 75% and for the 9 month entry the claim ratio is 74%. 1:25:49 1 hour, 25 minutes, 49 seconds And the combined ratios are also 111.1% against 101.1% on a full payment basis. 1:25:55 1 hour, 25 minutes, 55 seconds So this is this is a slide wherein which is which is for the regulatory accounting. 1:26:00 1 hour, 26 minutes Sure. And uh are there any one-offs in the other expenses because I noticed that there is a spike in the GST courses 1:26:07 1 hour, 26 minutes, 7 seconds that uh is that a one-off number? I mean it's about a 2% impact on your expense 2% as a percentage. 1:26:18 1 hour, 26 minutes, 18 seconds So one of number is only only with regard to the labor code impact which is 13 and a half cr. the impact on the GST 1:26:26 1 hour, 26 minutes, 26 seconds uh I'll say is uh is coming out of the distribution cost wherein the distribution cost has reduced and u uh 1:26:34 1 hour, 26 minutes, 34 seconds the expense is being shown as a GST expense in the public disclosure but it does not impact uh the financial position of the company and also at the same time does not impact the 1:26:42 1 hour, 26 minutes, 42 seconds distributors as well since we are seeing the elevated number of uh policies elevated number of growth uh which is seen in this quarter so I'm sure that on 1:26:50 1 hour, 26 minutes, 50 seconds the distribution side as well distributors income will also not get affected on the long term basis. So, so this 58 cr number that which you're referring on a GST side is is not a 1:26:58 1 hour, 26 minutes, 58 seconds onetime number. It is only um coming out of the distribution cost only which is because of this GST exception. 1:27:06 1 hour, 27 minutes, 6 seconds Sorry. So on an ongoing basis we can expect the expense ratio to stay at the current level as as as the previous quarter. 1:27:16 1 hour, 27 minutes, 16 seconds Uh so on an ongoing basis uh very difficult to comment because the expense ratio depends on a various factors. So 1:27:23 1 hour, 27 minutes, 23 seconds in case uh there is a there is a heavy growth on the retail new business type and the expense ratio tend to improve. 1:27:29 1 hour, 27 minutes, 29 seconds So I think the right metric is to look at the combined ratio uh which is the right metric to look at it but yes on a steady state you're right in saying that uh the numbers should be in the same 1:27:37 1 hour, 27 minutes, 37 seconds range or should should reduce uh slowly should keep on reducing slowly. 1:27:45 1 hour, 27 minutes, 45 seconds Sure. And on the solveny margin uh you know a post capital infusion you know where do you expect it to you know be 1:27:53 1 hour, 27 minutes, 53 seconds closed and does it will that uh leave room for growth for you know how many you know years you think that would be enough for before you need further 1:28:01 1 hour, 28 minutes, 1 second capital infusion so I think we will continue to we are comfortable at the range of 1.7 so we'll 1:28:08 1 hour, 28 minutes, 8 seconds continue to maintain in the similar range of 1.7 to one or above 1.7 suppose capital raise you are saying 1:28:17 1 hour, 28 minutes, 17 seconds that that would be that would suffice for uh uh you know for managing uh the current growth rate uh you know without 1:28:25 1 hour, 28 minutes, 25 seconds needing without uh no uh risking a a decline in the solveny margin 1:28:32 1 hour, 28 minutes, 32 seconds no I'm not saying that that without any capital infusion uh we would be able to I'm I'm asking 1:28:40 1 hour, 28 minutes, 40 seconds I'm asking post the 600 the septal incision that was outlined before. 1:28:49 1 hour, 28 minutes, 49 seconds uh so I think we have uh we have we have various options uh to maintain this solveny we can we have a net worth of close to two equity of 2,000 cr we can 1:28:57 1 hour, 28 minutes, 57 seconds subdate up to,000 cr and uh as platul also mentioned that uh out of 600 cr 250 cr has been infused in care as the 1:29:05 1 hour, 29 minutes, 5 seconds insurance so so I think there are plans to take care of that but uh the solveny will uh will continue to maintain solveny at 1.7 1:29:13 1 hour, 29 minutes, 13 seconds or upwards oft thank you sir that's commen That's Thank you. 1:29:21 1 hour, 29 minutes, 21 seconds Thank you ladies and gentlemen. Due to time constraints that was the last question 1:29:29 1 hour, 29 minutes, 29 seconds for today. I now hand the conference over to management for closing comments. 1:29:37 1 hour, 29 minutes, 37 seconds Thank you. Uh it was a very detailed session we had with investors and I thank everyone for taking out time and 1:29:46 1 hour, 29 minutes, 46 seconds uh uh uh uh listen to us and understand our journey. If there are any queries 1:29:53 1 hour, 29 minutes, 53 seconds further there are contact details in the uh presentation uh where you could send in your queries and we will be happy to 1:30:00 1 hour, 30 minutes respond. uh we look look forward to our continued association and hope to see 1:30:07 1 hour, 30 minutes, 7 seconds you uh next time uh with our uh year end FY26. 1:30:14 1 hour, 30 minutes, 14 seconds Thank you so much. Back to you Mari. 1:30:17 1 hour, 30 minutes, 17 seconds Thank you on behalf of Relegar Enterprises Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.