Satin Creditcare Network Limited — Q4 FY26

Satin Creditcare Network Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=T9jnRyRl_l8 Published: 1 day ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Saturn 3 Network Limited Q4 0:09 9 seconds 12 months FI26 earnings conference call hosted by Capital Markets private team. 0:16 16 seconds As a reminder, all participant lines will be in the window and there'll be an opportunity for you to ask questions after the presentation. 0:25 25 seconds Should you need assistance during this conference call, please signal an operator. by pressing star then zero or any cash. 0:33 33 seconds Please note that this conference is being recalled. 0:37 37 seconds I now in the conference order Mr. Punit Balani from Dollar Capital Markets Private Committee. Thank you and over to you sir. 0:47 47 seconds Yeah thank you. uh on uh behalf of Dalith Capital, I welcome all the participants on this call and thank the management of Saturn Credit Network for 0:55 55 seconds the opportunity to host this call. For today's call, I have with me the members of the management and leadership team. 1:03 1 minute, 3 seconds This includes Dr. HP Singh, chairman and managing director, Mr. Julqatara, the group controller, and Miss Aditi Singh, 1:11 1 minute, 11 seconds the chief strategy officer. And with this, I now hand over the conference to Dr. HP chairman and managing director to 1:20 1 minute, 20 seconds uh uh provide the opening remarks on the call. Thank you and over to you sir. Thank you. 1:28 1 minute, 28 seconds Thank you and good morning everyone. It is always a pleasure to speak with our investors, analysts and partners who take time to engage with us on our journey. 1:37 1 minute, 37 seconds FI26 has been a year we can look back on with immense satisfaction. It has been a year that tested the sector and in doing 1:45 1 minute, 45 seconds so highlighted out the differentiated institutions that are structurally sound. I am proud to say that Saturn belongs firmly in this category. 1:55 1 minute, 55 seconds The numbers speak well, but what I find more meaningful is what they represent. 2:00 2 minutes The outcome of our long-term commitment to quality, discipline, and responsible growth built over 35 years and now clearly visible in our performance. 2:10 2 minutes, 10 seconds Let me begin with where the sector stands because our performance will further benefit from industry green shoes. FI25 was by any measure a 2:19 2 minutes, 19 seconds difficult year for micr finance. The sector navigated a confluence of headwinds borrower overleveraging state level disruption and a tightening of 2:27 2 minutes, 27 seconds credit standards across lenders. The industry's gross loan portfolio contracted. Credit costs spiked. Several 2:35 2 minutes, 35 seconds institutions saw significant deteration in asset quality. The stress was real, but so was the response. SRO guard 2:43 2 minutes, 43 seconds rails, the three lender cap and the two lakh uh borrower exposure ceiling have meaningfully reshape the lending landscape. These are not just regulatory 2:52 2 minutes, 52 seconds requirements. They are the building blocks of a more responsible sustainable credit ecosystem for underserved India. 2:59 2 minutes, 59 seconds By early 2026, the sector had passed its test peak. Portfolio at risk for loans overdue between 1 and 180 days stood at 3:06 3 minutes, 6 seconds 4.7% as of January 2026 down from its peak six to seven months earlier. 3:13 3 minutes, 13 seconds Dispersements recovered sharply. 3:15 3 minutes, 15 seconds According to CRE Highark's microlend report, micr finance originations grew 25.8% quarteron quarter to 77,555 cr in Q3 FI26. 3:29 3 minutes, 29 seconds Average ticket sizes rose 18% year on year. The sector is healing. Also, the credit guarantee scheme came with a 3:37 3 minutes, 37 seconds timely and much needed shot in the arm to help the sector accelerate towards a sustainable growth. What is equally important is how the sector is healing 3:46 3 minutes, 46 seconds with tighter underwriting, reduced overleveraging and a stronger focus on borrower outcomes. This is the kind of recovery and it is one that Saturn is not just participating in but leading. 3:58 3 minutes, 58 seconds This year we completed 35 years. I do not say this to mark a calendar milestone. I say it because longevity in this sector means something specific. It 4:07 4 minutes, 7 seconds means you have been tested repeatedly and you have come back stronger each time. This becomes more relevant for an institution like ours where I have a 4:16 4 minutes, 16 seconds significant skin in the game and steering the institution with experience and outshining on every parameter. 4:22 4 minutes, 22 seconds We navigated demonetization. We navigated COVID. We navigated the current MFI stress cycle. Each time we 4:30 4 minutes, 30 seconds did not simply survive, we took the opportunity to improve. A SAM which was once represented which once represented 4:37 4 minutes, 37 seconds a risk and a point of concern today has a power 90 of just.7% and collection efficiency of 100%. That 4:45 4 minutes, 45 seconds is what a 35-y year institution does with adversity. It converts it into capability and opportunity. 4:52 4 minutes, 52 seconds Our management team has been together through all of it. Our CXO team averages over 10 years of tenure at Saturn. That 5:00 5 minutes institutional knowledge, that shared instinct for risk and opportunity is not something you can build quickly. It is built slowly over decades and it shows 5:08 5 minutes, 8 seconds up in the diversified businesses which we do and the resil of resilience of our numbers. 5:15 5 minutes, 15 seconds Now let me turn to the numbers and I will keep this short since the detailed presentation is already uploaded. At a consolidated level, our AM cross 15,174 5:24 5 minutes, 24 seconds cringing 19% yearonear. Total revenue came at 3,161 cr up 23%. Yi, 5:34 5 minutes, 34 seconds our POP grew 23% to 928 cr and consolidated pack for FI26 was 330 cr or 5:41 5 minutes, 41 seconds 79% growth year on year. In Q4 alone, the momentum was even sharper. 5:46 5 minutes, 46 seconds consolidated pad grew 640% year-on-year and 125% quarteron quarter. This is not just a recovery. This is one of our best 5:53 5 minutes, 53 seconds quarterly performance performances in recent memory. On a standalone basis, our AUM stood at 12,853 cr of 14% 6:01 6 minutes, 1 second year-on-year. Packed by dispersions of 11,22 cr standalone pack grew 39% for the full year and 234% year-on-year in 6:09 6 minutes, 9 seconds Q4. BOP was 856 crores up 16%. A key ratios tell a similar positive story. 6:17 6 minutes, 17 seconds Consolidated NI stands at 132.2%. ROA improved to 2.6% and ROE to 12.3%. 6:24 6 minutes, 24 seconds The cost to income ratio came down gradually and our loan loss ratio improved meaningfully year on year. We achieved exceptional RO and RO in Q4 6:32 6 minutes, 32 seconds standing at 4.71% and 23.31% respectively which is higher than the industry average. Further the value 6:40 6 minutes, 40 seconds creation from our wholly own subsidies SGA and STL is expected to act as a key catalyst for further improvement in ROA 6:49 6 minutes, 49 seconds and ROE in the coming years. On funding we raised 10,826 cr during FI26. Our marginal cost of borrowing declined 43 basis point to 10.82%. 7:00 7 minutes We maintain a healthy balance sheet liquidity of 292 crores and undrawn sanctions of 2235 cr. BLM is positive 7:08 7 minutes, 8 seconds across all buckets. They're also well capitalized with a standalone CR of 25.4% and 75 active lenders underscoring our strong institutional relationship. 7:19 7 minutes, 19 seconds Asset quality is rightly the area of greatest interest in this environment. 7:22 7 minutes, 22 seconds It is also where I believe we have the strongest story to tell since Micros 7:29 7 minutes, 29 seconds of collection. Our standalone G&P stands at 3.1% as of March 26. RX bucket collection efficiency is 99.9%. 7:39 7 minutes, 39 seconds Phase 3 coverage has improved to 73% from 67% in December 25. We carry sufficient onbook provisions of 273 cr 7:46 7 minutes, 46 seconds which is 2.9% of the onbook portfolio well above the RBI required 172 cr. We also maintained a management overlay of 7:54 7 minutes, 54 seconds 20.5 cr as an additional buffer. Our trade cost for FI26 stood at 3.8% a 77 8:02 8 minutes, 2 seconds basis point improvement from the 4.6% 6% we recorded in FI25 in Q4 trade cost came down further to 2.5%. 8:11 8 minutes, 11 seconds And our FI26 average rate cost to 3.8% compares very favorably to the numbers seen industrywide during the stress 8:19 8 minutes, 19 seconds period. I want to draw attention to a particular strength in our portfolio. 8:22 8 minutes, 22 seconds The geographic spread of our asset quality all our top states have X bucket collection efficiency of 99.9% or 100%. 8:32 8 minutes, 32 seconds Uttar Pradesh our largest state at 23% of the portfolio has a power 90 of 3%. 8:37 8 minutes, 37 seconds Assam as I mentioned is at 7%. Punjab is at 1.5%. These are not just acceptable numbers. They are among the best in the sector. 8:46 8 minutes, 46 seconds What underpine underpins the this performance is the combination of tighter underwriting. Our sourcing to dispersement ratio of 39% reflects 8:54 8 minutes, 54 seconds genuine selectivity. Our borrowing leverage policy no client has more than 3 mfi lender or exposure about two lakh disperse value. 9:02 9 minutes, 2 seconds and our net cap insurance program which has now covered 5,800 cr in dispersion since September 25 re-risking our portfolio against natural catastrophe 9:11 9 minutes, 11 seconds defaults on diversification. Our juggernaut gains momentum. Our diversification story is I 9:19 9 minutes, 19 seconds believe one of the most underappreciated aspects of our equity story. We set out several years ago to build not just a 9:26 9 minutes, 26 seconds mass company but a diversified rural financial services platform. Today 17% of our consolidated AON comes from 9:34 9 minutes, 34 seconds non-MFI businesses. Our target is 30% by 2030. The promising performance of our sub subsidiaries has given us the 9:42 9 minutes, 42 seconds confidence to raise the target of consolidated amum by 2030 to 32,000 cr from the earlier target of 25,000 cr. 9:51 9 minutes, 51 seconds Let me give you a brief update on each subsidy. Saturn Housing Finance Limited. 9:55 9 minutes, 55 seconds Our housing finance sub now has an AUM of 1,267 cr having grown at a three-year kagar of 36%. G&P stand at a healthy 3% and C at 53.8%. 10:07 10 minutes, 7 seconds Ikra has assigned a minus stable rating. 10:09 10 minutes, 9 seconds Our thesis they have remained consistent. The natural next step for a borrower who has repaid unsecured MFI group loans with discipline is a home 10:17 10 minutes, 17 seconds traveler limited. Our MSME focus subsidy has emerged as a standout performer this year with the AUM of 154 cr a 92.5% 10:27 10 minutes, 27 seconds year-on-year growth. The three-year Kagger stands at 66%. 10:31 10 minutes, 31 seconds FFL operates across 14 states through 121 branches and is building a meaningful presence in green finance having this 255 cr across 34 green 10:40 10 minutes, 40 seconds loans. This business represents a natural graduation pathway from Micron for entrepreneurial customers. Sen 10:48 10 minutes, 48 seconds Technologies Limited. This is a newer business, but one with significant long-term potential. STS builds enterprise technology across HRMS, loan 10:56 10 minutes, 56 seconds management systems, core banking, and cyber security with agentic AI as a horizontal capability across the product suite. Within two months of 11:05 11 minutes, 5 seconds incorporations, STL had acquired its first two clients. In January 2026, we acquired a strategic stake in Katrino, 11:13 11 minutes, 13 seconds an IIT partnner incubated deep tech cyber security firm focused on postquantum cryptography. 11:19 11 minutes, 19 seconds With representative offices in Toronto and Dubai, STL is already establishing an international footprint. We are early 11:27 11 minutes, 27 seconds here, but we are building something that can compound significantly over time. 11:32 11 minutes, 32 seconds Saturn Grove Alternatives Limited SGAL received its SEB license for a 200 core category 2 AF a first of its kind gender 11:40 11 minutes, 40 seconds men impact fund for focused on rural MSLES. The fund is led by an allw women team combined financial discipline 11:48 11 minutes, 48 seconds impact orientation and deep field presence. SGL has signed a strategic with the state bank of India for 11:56 11 minutes, 56 seconds co-investment which is a powerful validation of the model. We are progressing towards the first close with strong soft commitments. Together, our 12:05 12 minutes, 5 seconds subsidies add a free income and asset management dimension to our business model that goes well beyond the traditional NBSC MFI construct. This is 12:13 12 minutes, 13 seconds the architecture of a truly future ready financial services platform. Underlying all of our business progress is a significant investment in technology and 12:22 12 minutes, 22 seconds data capabilities. We use AI tools across underwriting, portfolio monitoring and risk assessment. Our datadriven approach to credit decisions 12:30 12 minutes, 30 seconds have been a key contributor to our superior asset quality. We have now established presence in over 64% of India's pin codes and technology is what 12:39 12 minutes, 39 seconds allows us to operate with efficiency and consistency at that scale. On ESG we received a debut score of 59 in S&P 12:47 12 minutes, 47 seconds global corporate sustainability assessment assessed across a comprehensive range of environmental, social and governance parameters and 12:55 12 minutes, 55 seconds benchmark against global peers. This score reflects our ability to translate policy frameworks into consistent execution. It is a not it is not a 13:03 13 minutes, 3 seconds number we celebrate passively. It is a baseline we intend to build on. Our social impact is embedded in our portfolio. 100% women client serving 13:10 13 minutes, 10 seconds below poverty line household with all lending to the lowest stat of the Indian economy. Moody's has rated our social impact at SQS2 amongst the highest 13:20 13 minutes, 20 seconds globally. FI27 the outlook is focused and confident for FI2627 our standalone guidance is AUM 13:29 13 minutes, 29 seconds growth of 15 to 20% yearonear implying an AUM of approximately 14,800 to 15,100 13:36 13 minutes, 36 seconds crit cost target of 3 to 3.5% a meaningful improvement from 3.8% 8% in FI26. 13:43 13 minutes, 43 seconds What underpins this guidance is not optimal or not optimal. It is execution capital. We have 392 new branches added 13:50 13 minutes, 50 seconds in FI26. A seasoned field team present in over one lakh villages in and 550 plus districts, a robust ALM and a track 13:59 13 minutes, 59 seconds record of 19 consecutive profitable quarters. We are not growing blindly. We are growing into our infrastructure with the discipline that has defined Saturn. 14:08 14 minutes, 8 seconds As mentioned earlier, we are also revising our long-term AUM target upward from 25,000 K to 32,000 K by 2030 with a non-MFI AUM target of 30% by that date. 14:21 14 minutes, 21 seconds This reflects both the strength of our core franchise and the emerging potential of our diversified business. 14:26 14 minutes, 26 seconds Before I open the floor, let me acknowledge our people. At Saturn, we serve 34 lakh customers across 2015 branches in 577 districts. None of that 14:36 14 minutes, 36 seconds is possible without 18,265 employees who show up every day in the field in every weather with every kind of customer. They are the reason why 14:44 14 minutes, 44 seconds these numbers exist. We were recognized this year as one of the India's top 50 best workplaces in BFSI 2026. We 14:52 14 minutes, 52 seconds received the Award for best women friendly organization, the BW social impact award, the Watson financing award 15:00 15 minutes and the Silver Scotch Award. These recognitions matter because they reflect values and not just performance. Our vision of being a differentiated rural 15:08 15 minutes, 8 seconds financial services company is not a tagline. It is a purpose that has guided guided every decision we have made over 35 years. And it is the ne it is this 15:17 15 minutes, 17 seconds commitment that will guide every decision we make over the next 35. Thank you. And I will now hand back to the moderator to open the Q&A session. 15:27 15 minutes, 27 seconds Thank you very much. 15:28 15 minutes, 28 seconds We'll now begin with the question and answer session. 15:32 15 minutes, 32 seconds Anyone who wishes to ask a question may press RN1 on the touch on telephone. 15:37 15 minutes, 37 seconds If you wish to remove yourself from the question queue, you may press R&D. 15:42 15 minutes, 42 seconds Participants are requested to use handsets while asking a question. 15:47 15 minutes, 47 seconds Ladies and gentlemen, we will wait for a moment while the questions assemble. 15:53 15 minutes, 53 seconds Participants, you may press star and one to ask a question. 16:08 16 minutes, 8 seconds The first question is from the line of Anand Tulum from Best Pal's Research. Please go ahead. 16:14 16 minutes, 14 seconds Yeah. Thank you for the opportunity. Am I audible? Yes. Yes sir. 16:19 16 minutes, 19 seconds Yeah. Yeah. Sir, the first question is on your subsidy setting uh films. So what I'm trying to understand is the customer profile, what sort of 16:27 16 minutes, 27 seconds collateral you get and the underwriting whether it is manual, technology based or template based. So if you can help me understand these three things. 16:38 16 minutes, 38 seconds Uh so Saturn sensor does graduated micro customers also who need a higher ticket sizes. That's one vertical. The other 16:46 16 minutes, 46 seconds vertical is that they do green finance and emerging uh microenter businesses microenterprise businesses. The 16:53 16 minutes, 53 seconds underwriting is uh cash flow based is also based on certain scores which they have validated internally for themselves. So it is not just pure uh 17:02 17 minutes, 2 seconds you know manual you know as what you said you know so it follows a lot of data analytics based on that uh various mechanism of underwriting through 17:10 17 minutes, 10 seconds looking at how we are able to generate cash flows look at the business there it is secured uh by receivable it is 17:17 17 minutes, 17 seconds secured by equipment it is uh secured by any kind of a you know uh I think you know appropriate uh imovable property as 17:27 17 minutes, 27 seconds such you know so this is not unsecured lending which we do this is secured lending which we do across over there. I hope I've answered all the three questions that you had. 17:33 17 minutes, 33 seconds Yeah. What percentage of loan is against the mean property class of property? 17:40 17 minutes, 40 seconds So LTV is so LTV normally resides between 40% to 45% that is what the LTV they work upon you know. 17:48 17 minutes, 48 seconds So not LTV what percentage of total both is against uh property out of,000 crores what percentage is against the property security? 17:56 17 minutes, 56 seconds So that way we will not have it is secure. There would be some removal property. There would be something which is on retrieval something which will be 18:04 18 minutes, 4 seconds on hypothetication to equipments. Uh so you know I will not be able to give you a percent but everything is secure. I think 18:10 18 minutes, 10 seconds is it what is the overlap with the NFI customers for this part? 18:18 18 minutes, 18 seconds Zero overlap. There is no absolutely no overlap on this. Uh what we have as a policy is that if there is a customer 18:25 18 minutes, 25 seconds who has a microman's loan, he will have to forgo his mance loan and take a loan from anyone one of our group subsidies, you know. So one one loan per customer 18:34 18 minutes, 34 seconds in any one of the three subsidies they can probably take. So that is how it is. 18:40 18 minutes, 40 seconds Okay. And is it fair to say that the customer's household income has to be more than three lakh? It cannot be less than three lakh. 18:47 18 minutes, 47 seconds It can be more in both these subsidies basically. But we follow that norm in micronel because that is what the terms and conditions which have been specified in the guard currency. 18:56 18 minutes, 56 seconds Okay. And the last question is the uh customer profile in the housing subsidy. 19:01 19 minutes, 1 second Is it self-employed salaries and what is the typical income profile if you can see that as the last one? 19:07 19 minutes, 7 seconds It's a mix of it's a mix of both. It's self-employed professionals as well as salary class also. 19:15 19 minutes, 15 seconds Let me ask you differently. over the next 3 to 5 years, our focus will be more on the self-employed customers and more on the target customers. 19:23 19 minutes, 23 seconds I think you know it'll be more on the self-employed customers uh going forward across. Thank you sir. That's it from my side. I'll join back with you. 19:31 19 minutes, 31 seconds Thank you. 19:34 19 minutes, 34 seconds Thank you. Next question is from the line of SHA from Paris Investments. Please go ahead. 19:42 19 minutes, 42 seconds Hi De good morning and congrats on a very good set of numbers. Uh so my question is on our Xbucket collection efficiency for Q4 was at around 99.9%. 19:54 19 minutes, 54 seconds So what is that number for the month of April? It is holding on. 19:59 19 minutes, 59 seconds It is holding on. I think you know I will not be able to give you specific but it is same similar level practically the similar similar state you know. 20:07 20 minutes, 7 seconds Okay. Okay. Okay. And so we are not seeing any stress currently due to the ongoing geopolitical issues. Just wanted your views on this thing. 20:14 20 minutes, 14 seconds No, no, no, not right now. There's no stress uh because of the geopolitical crisis across in any of our states or any of the uh places where we work. 20:25 20 minutes, 25 seconds Okay. And what was the overall collection efficiency for last quarter? 97. It was little over 97%. 20:35 20 minutes, 35 seconds Okay. Okay. And uh on a standalone basis we are guiding for an EU growth of 15 to 20:42 20 minutes, 42 seconds 20% and credit cost of 3 to 3.5%. So can we know what this number could be for on a consolidated basis? 20:52 20 minutes, 52 seconds on a consolidated basis or a standalone basis on on a consolidated data the standalone is only the GV model right so just on a console basis what this growth 21:00 21 minutes can be so the growth would probably we are looking at 15 to 20% across over there but uh as per the previous this thing 21:08 21 minutes, 8 seconds you know uh SF grew by about 90% uh year and housing grew by about 38% you know 21:15 21 minutes, 15 seconds now keeping a mix of both that you know if we add up to what 15% that's the baseline which we are taking the bare minimum for micro I think it'll be 21:24 21 minutes, 24 seconds closer to about 25 30% you know for a consolidated basis okay okay and sir is there any oneoff in 21:32 21 minutes, 32 seconds our P4 number because our mode of signal is frequently there's no one off it's on account of reduced credit cost 21:40 21 minutes, 40 seconds and growth that came okay uh there's no one off no in the foreign exchange or something oh there's no one no there's no one off 21:49 21 minutes, 49 seconds okay and how shall we look FI27 numbers in terms of ROA and ROE because I think you guided for credit cost. So it would be better if you can guide for ROA also. 22:00 22 minutes Uh see I will not be able to give you a clear clear guidance on ROA. I think you can calculate it with the with the with 22:07 22 minutes, 7 seconds the uh with the AUM growth as well as the grade cost you know I think it's a function of that but our sense is we'll be better off in terms of our ROI even 22:15 22 minutes, 15 seconds uh as per our current year as such you know. 22:18 22 minutes, 18 seconds Okay. So for the current year I think we did around 2.6 ROF portfolio. Yeah. 22:26 22 minutes, 26 seconds Okay. So at least for FI27 base case scenario can we see upwards of 3% ROF? Is that is that doable? Yeah. 22:34 22 minutes, 34 seconds Yeah. I said you know it's a function we don't want to give a guidance to be very honest but uh you know I think you know we we'll be positive from where we are right now. That's for sure. 22:46 22 minutes, 46 seconds Okay. Okay. Nish may I ask the last question? 22:51 22 minutes, 51 seconds Yeah. So what is the uh Yeah. So when I'm checking our presentation, our consolidated network is 2868 crores and 23:00 23 minutes our standalone network is more than the consolidated. So why is that? I mean standalone is showing 3129 crores. 23:09 23 minutes, 9 seconds So so long ago you know post uh demonetization etc we did some revaluation uh because of which in the uh you know the amount that we have 23:18 23 minutes, 18 seconds invested in the subs were revalued uh and then there were gain uh and then that is why the standalone uh network is 23:24 23 minutes, 24 seconds more than the consolidated sorry I didn't so uh you know the investment that we 23:33 23 minutes, 33 seconds have made from the parent company in the subsidy patent housing and patent sensor that that uh was uh uh revalued. Uh this 23:41 23 minutes, 41 seconds was some five six years ago and and uh you know that profit was booked and that is why the standalone network has gone 23:49 23 minutes, 49 seconds up but on a consolidated basis uh that revaluation impact is removed and the net number is 286. 23:58 23 minutes, 58 seconds Okay. Hope that clarity. 24:00 24 minutes Okay. Understood. Uh that's it from my side. Thank you and all the best. 24:05 24 minutes, 5 seconds Thank you. Thank you participants. You may press star and one to ask a question. Next question is from 24:12 24 minutes, 12 seconds the land of Dish Ziri from Crown Capital. Please go ahead. 24:19 24 minutes, 19 seconds Hello. Uh good morning sir. Thank you so much for taking my question. Yeah. Yeah. Good morning. 24:27 24 minutes, 27 seconds Yeah I congratulations on a great result. So I just wanted to know like effectively we planning to you know 24:35 24 minutes, 35 seconds double our in four years right so uh so the growth can be faster than the 20% 24:43 24 minutes, 43 seconds right because uh that's how like if you have to plan or is it more towards the 24:48 24 minutes, 48 seconds end or how it's not going to be I think you your not very clear 24:56 24 minutes, 56 seconds I think what uh are you Yeah. Yeah. Is it better sir? 25:05 25 minutes, 5 seconds Yeah. Yeah. This is better. This is better. 25:07 25 minutes, 7 seconds Yeah. So, just wanted to understand that uh like we've guided to nearly doubling our AUM, right? So, and in FI 27 you're 25:16 25 minutes, 16 seconds saying around 15 to 20% growth but to double we might need to move a bit faster. So, is it going to be a linear 25:23 25 minutes, 23 seconds growth or is it going to be towards the you know end? How do you look at it? 25:27 25 minutes, 27 seconds So in terms of AUM long-term AUM group yeah so let me clarify this 15 to 20% uh 25:34 25 minutes, 34 seconds AUM guidance is only for standalone micro finance and when we do a consolidated we said you know it'll be 25:41 25 minutes, 41 seconds probably an average of what 25 to 30% is what we will grow on a consolidated basis and that's the reason for us the guidance which we given for 2030 we 25:50 25 minutes, 50 seconds revise it from 25,000 cr to 32,000 cr uh looking at this scenario across in the next four 25:57 25 minutes, 57 seconds Oh okay fair fair enough sir and sir uh as we are moving to more non mfi right 26:03 26 minutes, 3 seconds so will that impact our yield uh like so should our nims you know slightly moderate or and our ROA should also be 26:11 26 minutes, 11 seconds near the same level how do you look at that sir in terms of profitability profitability see I'll tell you Bob there are two 26:19 26 minutes, 19 seconds aspects to it you know so when we say that the nim are stable uh I think you know both are subsidiary companies 26:26 26 minutes, 26 seconds housing as well as works in the rural atmosphere of the rural financial services space over there also we are 26:34 26 minutes, 34 seconds better in terms of our lending rates as compared to the normal uh uh you know housing finance companies and MSME 26:41 26 minutes, 41 seconds lending companies so we have a higher yield over there that translates into you know when we do a consolidated uh 26:49 26 minutes, 49 seconds you know NIM it consolidates into about 13% you know average you know 12 12 to 30% is for that you know so it'll remain 26:56 26 minutes, 56 seconds stable as that uh on the ROA front the profitability which will arise from there we've got two kickers also across over there which will probably an uh 27:05 27 minutes, 5 seconds enhancement in terms of our RO and that these two kickers are patent technologies which uh is not a capital 27:12 27 minutes, 12 seconds intensive as well as a uh leveraged business in terms of financial services and similarly patent growth alternatives which will also disperse which doesn't 27:21 27 minutes, 21 seconds again have you know intensive uh you know capitalization structure. So both these revenue items or revenue 27:30 27 minutes, 30 seconds in these subsidies will probably be a foray to enhance our ROA in the long-term business. 27:36 27 minutes, 36 seconds Oh okay. Okay. Fair enough sir. And so just wanted to understand in terms of like our cost of funds uh what are the measures that you know we're doing to 27:45 27 minutes, 45 seconds reduce that like I think it's a bit on the higher side and do we see any kind of you know competition in terms of you 27:52 27 minutes, 52 seconds know our cost per fund like increasing like how do you see that sir see I think it's again a function of you 28:00 28 minutes know how the whole sector is evolving out to be based on that we've still been able to reduce our cost of fund by about 28:07 28 minutes, 7 seconds 50 basis point. Uh now that is pretty significant if you look at the current scenario uh emerging out of in the 28:14 28 minutes, 14 seconds micron business. Uh our own sense is that the way we've been able to operate I think we will probably be stable or 28:21 28 minutes, 21 seconds for us there is no cost of uh there is no enhancement which will happen in our cost of fund. In fact it will probably be fair to say that you know it will 28:30 28 minutes, 30 seconds further go down uh whenever the need arise whenever the reported goes down. 28:33 28 minutes, 33 seconds And I think you know looking at that and I think this is the function of all these factors put together. Okay. S this last question from May sir. 28:42 28 minutes, 42 seconds So right now due to the geopolitical conditions like uh is there a chance of you know maybe inflation creeping up and 28:50 28 minutes, 50 seconds then like RBI has to come in and set up some measures because right now even our prime minister had a speech in terms more of austerity measures. So is there 28:58 28 minutes, 58 seconds like a problem like where we see that you know credit growth can be impacted for a few quarters not a long-term basis but like a near-term you know jerk can 29:08 29 minutes, 8 seconds come or speed bump can come right so so what is your thought process on that sir 29:15 29 minutes, 15 seconds see our thought process is kind of a slightly different you know from there you know so yes uh fuel prices increase 29:22 29 minutes, 22 seconds and all these could lead to maybe some kind of an inflation uptick but when a inflation uptick happen happens across over there. The 29:30 29 minutes, 30 seconds justification always has seen whenever there's a slight uptick in the entire economy as such the credit uh dispersals 29:37 29 minutes, 37 seconds grow up uh income levels will definitely probably be shortened by in terms of inflation spikes. So what happens is 29:45 29 minutes, 45 seconds normally the borrowings adds up at that point of time you know so for us demand will pick up uh which I feel probably 29:52 29 minutes, 52 seconds will be the uh reason why we've been able to say that we'll be able to grow by 15 to 20%. So income levels will 29:59 29 minutes, 59 seconds definitely go down a little bit but in the end ultimately the demand demand picks up you know so that's what the analogy which works upon this you know 30:07 30 minutes, 7 seconds okay fair enough fair that's it from my thank you so much thank you thank you participant 30:15 30 minutes, 15 seconds want to ask a question next question is from the line of ratoria from Lindsay securities please go ahead 30:24 30 minutes, 24 seconds audible yes is you are yeah So my first question is that uh you know in our uh in uh our results there 30:33 30 minutes, 33 seconds is a line item net gain on drecognition of financial instruments uh something around 144 crores. So what is this 30:41 30 minutes, 41 seconds exactly 144 cr you're talking about the consolidated number? 30:48 30 minutes, 48 seconds Yes standard is 129. 30:54 30 minutes, 54 seconds So you're talking about like so this is the you know gain on the forex uh you know uh that the borrowing that we have 31:02 31 minutes, 2 seconds done in the foreign currency and the corresponding expense item is the effect of change in the foreign exchange rates. 31:09 31 minutes, 9 seconds So there is a 92 cr effect of foreign exchange rate and then there are two line items net gain on fair value and net gain on drecognition. 31:18 31 minutes, 18 seconds So recognition is a income. Dere recognition is a DA income. The net gain on fair valuation is the treasury income 31:26 31 minutes, 26 seconds on mutual fund and the forex uh contract that we have taken. 31:31 31 minutes, 31 seconds So this treasury income in uh environment where yields have gone up so much. Is this uh something that can 31:38 31 minutes, 38 seconds continue because I think this is sort of helping your profitability for this quarter. 31:44 31 minutes, 44 seconds No. So, so, so treasury income is what we actually do when we have got sufficient liquidity or more liquidity be there in the system. It is not 31:52 31 minutes, 52 seconds relatable in terms of the business expense. So, normally we carry a two month liquidity with us and that is 31:59 31 minutes, 59 seconds always uh invested in mutual fund for a shorter period of time. So, that is there it has probably no relation technically to you know your business actually. 32:08 32 minutes, 8 seconds The better way to see is the link. links are broadly stable at 13.5 to 14%. These gains because of timing difference in the exchange rate fluctuation etc. 32:18 32 minutes, 18 seconds impact the top line and the corresponding finance cost in different periods but but will get neutralized but if you see the name over a long period 32:27 32 minutes, 27 seconds of time they are so to say broadly stabilized between 13 and a half to 14%. 32:32 32 minutes, 32 seconds Okay my other question is on the cost of borrowing. So we've seen a sharp increase quarter on quarter and year on year. Is this just because of the forex impact or has it uh actually gone up? 32:44 32 minutes, 44 seconds So that also impact the uh you know quarteronquarter number. So it is better to see the N1 numbers and end over a period of time. This gets neutralized 32:52 32 minutes, 52 seconds because all the foreign borrowing is uh fully hedged. So there's no long-term impact on the you know bottom line 33:00 33 minutes because there's no forex risk. But quarteronquarter number depending upon the you know dollar movement etc. This marginally impacts the profitability both sides positive and negative. 33:11 33 minutes, 11 seconds Okay. Thank you. 33:12 33 minutes, 12 seconds Like last year there was a overall 25% of negative impact on the bottom line in the whole year. 33:21 33 minutes, 21 seconds Okay. 33:26 33 minutes, 26 seconds Thank you participants. You have started one to ask question. Next question is from the 33:33 33 minutes, 33 seconds line of sub from capital. Please go ahead. Yeah, thank you for opportunity. 33:42 33 minutes, 42 seconds Yes, you are. 33:43 33 minutes, 43 seconds Yeah. Uh sir, can you tell me the what was the Q4 credit cost? Console level credit cost. 33:57 33 minutes, 57 seconds You want the absolute number? 34:00 34 minutes Yeah. Yeah. You want no percentage. 34:07 34 minutes, 7 seconds You want the percentage? Yeah. For Q4, you're saying no. Yeah. Yeah. 34:15 34 minutes, 15 seconds For Q4. 34:17 34 minutes, 17 seconds I I want both. But I got to understand the key for credit first. Voice is breaking up. It's not audible. 34:25 34 minutes, 25 seconds See credit first at consolidated level for quarter 4 was 2.2% in terms of percentages 34:34 34 minutes, 34 seconds and in terms of absolute amount it was 79 crores and is this console based right? 34:44 34 minutes, 44 seconds Yeah, there's consolidated. Yeah, consolidated. 34:46 34 minutes, 46 seconds Okay. And what was what was the AI26 cost consolidated? 3.55%. 34:54 34 minutes, 54 seconds Yeah. 3.55% was the FYI 26 control credit cost. That's correct. 35:01 35 minutes, 1 second Okay. And as you mentioned uh our uh nonvy mix will be increase uh FI27 and 35:08 35 minutes, 8 seconds up to FI 30 uh then overall yield will be reduced. That's my understanding. Correct. 35:17 35 minutes, 17 seconds No, we didn't say that. 35:19 35 minutes, 19 seconds He's assuming that the No, no, no. So, there's no assumption, you know, which we've given across across over there and, you know, for us, we said we've got a very stable name 35:28 35 minutes, 28 seconds across and this will probably hold true for us in the future, you know. So, uh there's no I think you know there's no 35:36 35 minutes, 36 seconds area where we've said that there will be a drop in the yields or the or the Okay. But uh normally housing finance 35:43 35 minutes, 43 seconds and uh energy business has lower than that's why I am say I was saying this uh what was the housing finance 35:52 35 minutes, 52 seconds now it's we work majorly in the rural uh platform we work majorly in the rural uh space 36:00 36 minutes over there the yields are much better than the normal traditional housing finance which you look at over here for us in housing finance our average yield 36:08 36 minutes, 8 seconds is close to about 15 and a half to 16% and this will remain stable across because the constituency which we serve 36:16 36 minutes, 16 seconds in is very different from the normal constituency which our housing finance company serves across and then just to add uh you know in spite of both housing 36:25 36 minutes, 25 seconds and uh MSN business going up our main name were 12.42% for FY25 which has gone 36:33 36 minutes, 33 seconds up to 13.23% 23% in FY 26. In spite of their share going up, the name has also improved. 36:41 36 minutes, 41 seconds Okay. Thank you. Thank you. And that's up to my side. Thank you. Best of luck. Thank you. 36:49 36 minutes, 49 seconds Thank you. Participants and want to ask a question. Next followup question is from Best Research. Please go ahead. 37:00 37 minutes Yeah, thanks a lot for the opportunity again. Uh this question is on the standalone MFI business. So many of your peers are shifting to the individual 37:08 37 minutes, 8 seconds high ticket individual loans. Uh so what's our strategy there? 37:13 37 minutes, 13 seconds So we are doing pilots on that. Uh but for us uh GLT will remain our main stay. 37:18 37 minutes, 18 seconds Uh that's very clear. Uh we are doing pilots you know we done very small uh dispersion in terms of our individual loan. We're getting very good results in 37:26 37 minutes, 26 seconds that you know but we will not shift to just one as such you know there will be a hybrid of JLD but predominant is going to be JLG 37:36 37 minutes, 36 seconds will be only for the new new to company customers or even for the credit customers who have done two three four citiz 37:44 37 minutes, 44 seconds no it's for for everyone you know basically it's not we we don't distinguish between a new to credit customer as well as an existing customer in JZ you know 37:53 37 minutes, 53 seconds got it and sir upon the It looks like the incremental need on micro finance is around 25 26%. Is the understanding right? 38:03 38 minutes, 3 seconds Broadly broadly yes you know average is uh around 25% 38:09 38 minutes, 9 seconds uh so now the question is on from the RJ side in the past RJ has I don't know whether I'm understanding right or not 38:16 38 minutes, 16 seconds something like 20 to 23% and then they started uh making lot of uh comments about the interest. So, so this time uh 38:24 38 minutes, 24 seconds you think it is again a problem going forward after one two years or these are sustainable needs. 38:30 38 minutes, 30 seconds See you'll have to understand the context on this. You know it's very easier to say this that it is uh been done by the regulator. The regulator is 38:38 38 minutes, 38 seconds appreciated of the effort that we are doing financial inclusion to a large extent. It's a doorstep delivery plus 38:45 38 minutes, 45 seconds our credit cost as well as other stuff has been elevated in the last few years. 38:50 38 minutes, 50 seconds Looking at that the cost of fund as well as the operating cost for delivering such a small ticket size loan and a risk 38:57 38 minutes, 57 seconds based pricing was fixed which I think you know everybody's aware of. So there is no question where I think it could be 39:04 39 minutes, 4 seconds singled out as in terms of that and it's a uh interest rate uh you know it's a interest rate uh play you know which is 39:12 39 minutes, 12 seconds going to be there you have to look at the complete ecosystem onto that. 39:17 39 minutes, 17 seconds Got it. Got it. So can you help me understand this green finance loan? It's not very clear to me that you're doing your subsidiary. What exactly is the nature customer profile? 39:26 39 minutes, 26 seconds Sorry, green finance customer. So green finance loan which you have spoken about. 39:31 39 minutes, 31 seconds Yeah. So these are microenterprises to a large extent basically and it could be green renewables energy, it could be green finance, it could be solar, it 39:39 39 minutes, 39 seconds could be EVs, it could be enterprise EVs. It's a it's a combination of all that. 39:45 39 minutes, 45 seconds Got it. And sir the interest uh the interest in in the start is it closer to the MFI customers only or is it far lower like housing? 39:55 39 minutes, 55 seconds It's it's it's closer to closer to the MFI uh you know yields as such. 40:00 40 minutes Got it. And sir the last question is on the industry the guard rails have been implemented because of the current issues. So do you think these are 40:08 40 minutes, 8 seconds currently here to stay or going forward uh individual players will be left on their own whether they want to follow or not follow? 40:16 40 minutes, 16 seconds See ours is zero. We don't have a customer which is slotting any kind of a guardrail. And I think you know looking at the industry it is here to stay. Got 40:24 40 minutes, 24 seconds it. Thank you. Thank you so much for all the detailed answer. That's it for my thank you. 40:35 40 minutes, 35 seconds Next question is line of vin. Sorry the line for the participant dropped. Ladies and gentlemen, we'll take that as the 40:43 40 minutes, 43 seconds last question. I'll now hand the conference over to the management for closing comments. 40:51 40 minutes, 51 seconds Sure. Thank you everyone. This year was a great year where proof made pro promise for us. Our console amum grew 40:59 40 minutes, 59 seconds 19%. We crossed 15,000 cr. Our disbbursement grew. Our Q4 alone dispersement were 43% up. The credit 41:08 41 minutes, 8 seconds cost came down 80 bips for the whole year. the I will say Xbucket collection efficiency is holding on and these 41:15 41 minutes, 15 seconds aren't just metrics they are the outcome of decisions we made long before the results are right it's for the years we 41:22 41 minutes, 22 seconds are doing the consistent performance subsidiaries are no longer a passing reference in our overall scheme of 41:29 41 minutes, 29 seconds things if you see they are forces in their own right both satin fins serve and satin housing have crossed a 41:36 41 minutes, 36 seconds thousand cr aum each they are a move for the future. Fighting technologies has 41:44 41 minutes, 44 seconds its own USB and then it again made a bold bet on bold bet on deep tech cyber security 41:52 41 minutes, 52 seconds which is signaling that our intent to build infrastructure grade capabilities is for financial services is beyond parallel setting growth alternatives. 42:02 42 minutes, 2 seconds The women led AI fund with a sharp focus on women entrepreneurs and sustainability is not just a new business line. It's a statement of 42:12 42 minutes, 12 seconds purpose. It is deepening the impact that we do on ground. What FY26 ultimately tells us is simple discipline at the 42:21 42 minutes, 21 seconds ground level, clarity at the strategy level and patience at the management and board level. This combination wins every 42:30 42 minutes, 30 seconds single time. To our investors, lenders and the millions of borrowers who place their confidence in us. This year's 42:39 42 minutes, 39 seconds performance belongs to each one of you and thank you for all your support. If you have any queries after this call, 42:47 42 minutes, 47 seconds you can reach out to Valorum Advisor, our advis IR advisory or you can reach out to me. My name is Adityi Singh. I'm chief strategy officer at Satin Credit. 42:57 42 minutes, 57 seconds Thank you everyone. Have a great day. 43:01 43 minutes, 1 second Thank you very much. On behalf of the Capital Market Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect. 43:11 43 minutes, 11 seconds Thank you.