SRG Housing Finance Ltd — Q4 FY26

SRG Housing Finance Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7rDQJ5XGDFM Published: 1 day ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call of SRG Housing Finances 0:10 10 seconds Limited. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchtone phone. 0:27 27 seconds Please note that this conference is being recorded. 0:31 31 seconds At this time, I would like to hand the conference over to Miss Purwangi Jane from Valer Advisors. Thank you and over to you ma'am. 0:39 39 seconds Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jen from Valer Advisers. We represent the investor relations of SRG Housing 0:48 48 seconds Finance Limited. On behalf of the company and valor advisers, I would like to thank you all for participating in the company's earnings conference call 0:56 56 seconds for the fourth quarter and full year ended of the financial year 2026. 1:01 1 minute, 1 second Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature, but 1:09 1 minute, 9 seconds forward-looking statements are subject to risk and uncertaintity which could cause actual results to differ from those anticipated. Such statements are 1:17 1 minute, 17 seconds based on management's belief as well as assumptions made by and information currently available to the management. 1:24 1 minute, 24 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statement in making any investment decision. The purpose of today's 1:32 1 minute, 32 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. 1:39 1 minute, 39 seconds Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We 1:47 1 minute, 47 seconds have with us Mr. Vinod Kumar Jen, managing director and Mr. Arches Jen, chief executive officer. Mr. Arches has 1:56 1 minute, 56 seconds been with the company for over 8 years since 2018. He has played a key role in 2:04 2 minutes, 4 seconds driving on ground business expansion across sales and operations. appointed as CEO in 2023, he brings deep market 2:12 2 minutes, 12 seconds understanding, exe execution, focus, leadership and hands-on experience in scaling business operations across regions. 2:21 2 minutes, 21 seconds Without any delay, I request Mr. Venote Kumar Jen to start with his opening remarks. Thank you and over to you sir. 2:29 2 minutes, 29 seconds Vinandra, good afternoon. 2:34 2 minutes, 34 seconds Earning Quarter Financial 26 performance. 2:50 2 minutes, 50 seconds Affordable housing 3:04 3 minutes, 4 seconds self market understanding risk management 3:16 3 minutes, 16 seconds territory 96 branches 3:31 3 minutes, 31 seconds lenders or NCD investors support 3:37 3 minutes, 37 seconds bank housing finance business model or underwriting capability. 3:49 3 minutes, 49 seconds Business model secured focus 94% 3:55 3 minutes, 55 seconds loan book rural and semi- urban market formal financial system. 4:12 4 minutes, 12 seconds Longterm grow 4:32 4 minutes, 32 seconds after tax 1.2 2 32.5 4:40 4 minutes, 40 seconds models local education or discipline risk management technology or banking channel 4:48 4 minutes, 48 seconds integrations operational or collection 4:56 4 minutes, 56 seconds 97% collection banking Collection efficiency of portfolio 5:05 5 minutes, 5 seconds monitoring year 26. 5:33 5 minutes, 33 seconds improving business fundamentals. Stable assets quality 5:47 5 minutes, 47 seconds financials or operational performance. 5:56 5 minutes, 56 seconds Good afternoon everyone and thank you for joining us today. It is a privilege for me to address the investor community for the first time as the CEO of SRG 6:05 6 minutes, 5 seconds Housing Finance Limited. I sincerely appreciate your continued trust, support and confidence in our institution. Over 6:13 6 minutes, 13 seconds the years, our company has built a strong foundation driven by prudent underwriting, customer- centric growth, disciplined risk management, and a deep 6:22 6 minutes, 22 seconds commitment to affordable and inclusive housing finance. As we move into the next phase of growth, our focus remains clear, strengthening asset quality, 6:31 6 minutes, 31 seconds improving operational efficiency, expanding responsibly across markets, and creating long-term value for all stakeholders. 6:39 6 minutes, 39 seconds As I take on this responsibility, my commitment is to lead the organization with transparency, accountability, and a 6:46 6 minutes, 46 seconds long-term perspective. We will continue balancing growth with governance while remaining focused on profitability, 6:53 6 minutes, 53 seconds portfolio quality, and customer trust. I would also like to thank our employees, customers, lending partners, regulators, 7:02 7 minutes, 2 seconds and shareholders for being an integral part of our journey. With that, let me now take you through the company's performance and key business updates for the quarter and the year. 7:13 7 minutes, 13 seconds For the fourth quarter under review, net interest income stood at around 28 crores, registering a healthy growth of 7:21 7 minutes, 21 seconds 33% yearonear while NIMS remained healthy at 11.28%. 7:27 7 minutes, 27 seconds Profit after tax for the quarter came in at 9 kores reflecting a strong growth of 50% yearonear. 7:37 7 minutes, 37 seconds For the financial year 2026, the company reported net interest income of 98.26 7:43 7 minutes, 43 seconds crores, reflecting a growth of 31% yearonear supported by steady AUM expansion and improving funding 7:51 7 minutes, 51 seconds efficiencies. NIS for the year stood at 10.91%. 7:57 7 minutes, 57 seconds Profit after tax for the period stood at around 32.49 49 crores marking a healthy growth of 33% yearonear. As of financial 8:06 8 minutes, 6 seconds year 26, our asset under management stands at 1,042 crores, reflecting a strong growth of 37% yearonear. 8:17 8 minutes, 17 seconds Disversements for the year grew by 45% yearonear to 443.54 8:24 8 minutes, 24 seconds kores reflecting healthy demand momentum across our operating geography. 8:29 8 minutes, 29 seconds On the operational front, we continued to witness improvement in productivity metrics across the organization. 8:36 8 minutes, 36 seconds AUM per branch increased to 10.86 crores in quarter 4 financial year 26 from 8.44 8:45 8 minutes, 45 seconds Kores in quarter 4 financial year 25 while AUM per employee improved to 1.54 8:52 8 minutes, 52 seconds Kores from 0.88 88 kores over the same period reflecting improving operational efficiency and strong scaleled 9:01 9 minutes, 1 second productivity gains. We also witnessed a 41% year-on-year increase in average ticket size to 15.44 lakh during the 9:11 9 minutes, 11 seconds quarter primarily driven by expansion into newer markets and higher construction cost. Importantly, despite 9:18 9 minutes, 18 seconds the increase in ticket sizes, our underwriting discipline remained strong with average LTV maintained at a comfortable level of around 50.7%. 9:28 9 minutes, 28 seconds Asset quality continued to remain stable and healthy. G&P improved to 1.77% 9:35 9 minutes, 35 seconds compared to 1.84% last year. While NNP stood at 0.65% 65% reflecting prudent 9:44 9 minutes, 44 seconds underwriting standards and strong collection efficiency. Our capital position also remained comfortable with 9:51 9 minutes, 51 seconds capital adequacy at 38.62% providing sufficient headroom to support future growth. Cost of borrowing 9:59 9 minutes, 59 seconds improved to 10.88% in quarter 4 financial year 26 from 11.07% 07% in 10:05 10 minutes, 5 seconds quarter for financial year 25 reflecting continued strengthening of a liability profile. Operational efficiency also 10:13 10 minutes, 13 seconds improved steadily with the cost to income ratio declining to 63.14% from 67.49% 10:21 10 minutes, 21 seconds over the same period supported by improving skill efficiencies and operating leverage. Overall, we believe 10:29 10 minutes, 29 seconds SRG housing finance remains well positioned to continue delivering sustainable growth supported by deep 10:36 10 minutes, 36 seconds rural penetration, disciplined underwriting, strong collection infrastructure and a scalable operation model focused on underserved customer 10:45 10 minutes, 45 seconds segments. With that, we would now be happy to take your questions. Thank you. 10:54 10 minutes, 54 seconds Thank you very much. We will now begin with the question and answer session. 10:59 10 minutes, 59 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 11:05 11 minutes, 5 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 11:15 11 minutes, 15 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 11:20 11 minutes, 20 seconds Again, to register for a question, please press star and then one now. 11:38 11 minutes, 38 seconds Your first question comes from the line of Ronak Sher from Ariga Capital. Please go ahead. 11:46 11 minutes, 46 seconds Hi sir, congratulations on the the results. Sir, I have two questions. Uh one is if you could share qualitatively 11:54 11 minutes, 54 seconds on your new branches uh how is the scale up happening in terms of AUM uh and the leads which we are generating u how do 12:03 12 minutes, 3 seconds you see that panning out over the next 12 months in terms of scale up of the new branches especially in the geographies where we have uh launched in 12:11 12 minutes, 11 seconds the last couple of years and the second is on your disbbursement growth uh earlier you have actuallyed about 500 of 12:19 12 minutes, 19 seconds dispersement growth uh just just wanted to check uh is that uh still holds and how does one should 12:28 12 minutes, 28 seconds think of the EU growth for the next 12 months. Right sir, thank you for your question. 12:36 12 minutes, 36 seconds So one is that on the expansion program and how we are planning to do it. 12:40 12 minutes, 40 seconds Currently in last one and a half years we have expanded in the states of Maharashtra, Andhra Pradesh and Karnataka and we are keen on increasing 12:48 12 minutes, 48 seconds our branches in those particular locations but we are also planning our expansion in the states of Tamil Nadu and Andhra Prad and Telanga with that 12:58 12 minutes, 58 seconds but it will take time for us to do our research and by the end of this year we will be present in the states of Tamil 13:05 13 minutes, 5 seconds Nadu and Telanga but we are planning for approximately 10 to 15 new branches is in these particular states. We are not 13:12 13 minutes, 12 seconds going to expand in our existing states such as Gujarat, Maharashtra, Gujarat and MP but we are focusing on the 13:21 13 minutes, 21 seconds southern region with the uh question on the dispersement number. We are targeting of approximately 600 kores of 13:30 13 minutes, 30 seconds disbbursement for this year. So this is our target and that would lead to an AUM growth of 13:38 13 minutes, 38 seconds around reach am of 1500 by then or it will be around 14 it will be around 1,300 to,400 kores but definitely 13:47 13 minutes, 47 seconds because we are very optimistic on the conditions right now. So we will definitely target for 1500 kores of 13:53 13 minutes, 53 seconds achievement but the 1400 kores of uh aum is something which we are very optimistic on. 14:02 14 minutes, 2 seconds Thank you. And this last thing is on your cost of borrowing. Now that we've got a rating upgrade, how should one think of your cost of borrowing as a trajectory over next two years? 14:11 14 minutes, 11 seconds Sir, definitely it is going to come down. But the thing is we are in an expansion mode right now. We are 14:18 14 minutes, 18 seconds expanding in newer states. We have a uh now we are focusing on a better top management team as well. We are doing a lot of recruitments as well and 14:27 14 minutes, 27 seconds expansion also. So I can't guarantee you on the numbers but definitely it is going to come down uh let's say for next 14:35 14 minutes, 35 seconds one one to two uh year it will come down from uh 63 to 61%. 14:44 14 minutes, 44 seconds Okay thank you so much I'll come back in the queue. Thank you. 14:52 14 minutes, 52 seconds The next question comes from the line of Ankor Kumar from Alpha Capital. Please go ahead. 14:58 14 minutes, 58 seconds Hello sir congrats for a good set of numbers. Uh sir I wanted to understand given our high geographical expansion 15:06 15 minutes, 6 seconds plan and aum targets what kind of roe levels are we looking for in in coming one or two years. 15:14 15 minutes, 14 seconds But currently uh what we are managing right now we are trying to manage the same ROI level but the thing is with the 15:23 15 minutes, 23 seconds uh market of housing how it is going forward I think it will be around 18%. 15:32 15 minutes, 32 seconds Sorry but currently are we making at like 12 13% right are we you asking right 15:39 15 minutes, 39 seconds are we so return on right so so it is going to be same parallelly but 15:48 15 minutes, 48 seconds uh we are definitely optimisting on that so we'll go around 12 to 13%. 15:56 15 minutes, 56 seconds Got it sir. And sir given this war situation and monsoon also less this year. So are we seeing any concerns on 16:03 16 minutes, 3 seconds book quality or everything is going fine on that front? 16:06 16 minutes, 6 seconds No sir that is not impacting us a lot because we have a diversified book profile uh and we have very different 16:14 16 minutes, 14 seconds different profile credit profiles also customer profiles also. So that is not directly impacting us. So we don't see any challenge on that. 16:23 16 minutes, 23 seconds Sure sir. Thank you and all the rest. 16:28 16 minutes, 28 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. 16:37 16 minutes, 37 seconds The next question comes from the line of Rohit Shahora, an individual investor. Please go ahead. 16:45 16 minutes, 45 seconds Hello. Am I audible? Yes. Yes. Are you audible? 16:50 16 minutes, 50 seconds Uh sir any particular reason for high G&PA in Rajasthan region 16:59 16 minutes, 59 seconds there nothing in particular if I say so that there's no reason to it maybe uh I 17:06 17 minutes, 6 seconds don't see any challenge in terms of Rajasthan state but the portfolio is quite big in Rajasthan when you compare it to other uh states which we operate 17:15 17 minutes, 15 seconds in so that's the reason it might show that there is an increase of G&P otherwise there is a concerning factor which is impacting the portfolio. 17:25 17 minutes, 25 seconds And sir, as our average ticket size is increasing, so these customers can get 17:35 17 minutes, 35 seconds these customers can get loan at lower lower interest rates than ours. So is the is high competition affecting us? 17:45 17 minutes, 45 seconds Uh not really sir because the customer profile remains the same. the source of income remains the same. Although there's a uh change in the cost of 17:53 17 minutes, 53 seconds construction also and the aspiration of how a house should look like that is also changing in the sector of rural and 18:00 18 minutes semi-open. So with this that sentiment uh the reason of why we have an increase in the ticket size. 18:08 18 minutes, 8 seconds Okay sir. Thank you. Thank you. 18:14 18 minutes, 14 seconds Your next question comes from Danisha an individual investor. Please go ahead. 18:20 18 minutes, 20 seconds Uh good afternoon sir. Uh so I have couple of questions to ask. Uh so first is uh I have observed Rajasthan and 18:27 18 minutes, 27 seconds Gujarat together contribute nearly 77% of the EVM. So how does the management is planning to diversify the portfolio geographically over time? 18:39 18 minutes, 39 seconds Yes sir. So basically because we started off with Rajasthan and then Gujarat then there's a of course there's a dominance 18:46 18 minutes, 46 seconds in both the states but if I see the fastest growing states has been our south southern part in last one and a half years I think they have been a 18:55 18 minutes, 55 seconds fastest growth which I have seen in our journey of SRG I think they have grown faster than Gujarat and Rajasthan 19:01 19 minutes, 1 second itself. So now I'm very much optimistic in the states of Maharashtra, Tamil Nadu, Andhra Pradesh, Karnataka and 19:09 19 minutes, 9 seconds Tananda. That's the reason we have an expansion plan in these particular states only. And with that I think in next two to three years of course right 19:17 19 minutes, 17 seconds now we see the dominance in Rajasthan and Gujarat but eventually it will have by and large the same percentage of share in the A1. 19:27 19 minutes, 27 seconds Also sir uh wanted to understand from you like what will be like some key challenges in scaling deeper into 19:35 19 minutes, 35 seconds regular geographies while maintaining the company cachet quality and uh operational efficiencies 19:43 19 minutes, 43 seconds but only the key challenges is on the customer front I don't see any key challenges in terms of macro wise but 19:50 19 minutes, 50 seconds the thing is how we are improving our services how we are giving the right need what is required from the customer 19:57 19 minutes, 57 seconds part in terms of the amount in terms of how faster we are giving that and better customer service. So that is the key 20:04 20 minutes, 4 seconds challenge for each and every company. So for that uh we are having a lot of uh change in our platforms as well in into 20:13 20 minutes, 13 seconds our ERP system also and uh we are transforming completely digital also. So I think these are the key things which 20:21 20 minutes, 21 seconds we are focusing on for the upcoming year. 20:25 20 minutes, 25 seconds Okay, one last question. Uh, so as uh another another participant has said, our average digit size has increased 20:34 20 minutes, 34 seconds significantly. So I wanted to understand how much of this increase was driven by high property prices versus a strategic shift in the customer profile. 20:46 20 minutes, 46 seconds Sir, I think it is uh more of the purchase has increased, the construction cost has increased and the customer 20:54 20 minutes, 54 seconds profile remains the same for us and I don't see any difference in that we are getting very new or different uh 21:02 21 minutes, 2 seconds profiles in comparison to the urban profiles but the profile remains the same only just that the definitely the property prices are increased also 21:11 21 minutes, 11 seconds there's a lot of development which government is doing into semi-urban and rural areas lot of industries are also coming up into different different areas. So that 21:19 21 minutes, 19 seconds is also leading to the uh price raise also in terms of property. But now everybody aspired to have their home in 21:28 21 minutes, 28 seconds a manner which was not been thought before. They want a proper house. They want a small amenities also which is also that is an aspiration which is now 21:37 21 minutes, 37 seconds is is seen in the semi-urban and rural areas also. So in that case the ticket size has improved drastically. 21:45 21 minutes, 45 seconds Thank you sir. Thank you so much. Thank you. 21:51 21 minutes, 51 seconds The next question comes from the line of Parak from PH Financials. Please go ahead. Hello. 21:59 21 minutes, 59 seconds Yes sir. 22:01 22 minutes, 1 second Uh sir first of all congratulations for a very uh amazing set of numbers. Uh you guys have kept your word and uh given 22:10 22 minutes, 10 seconds outstanding results as compared to other uh housing finance companies. what they had guided and what they have achieved. 22:16 22 minutes, 16 seconds So sir, I have a couple of questions. Uh uh one question would be on the guidance part of the EM in next uh two to three 22:24 22 minutes, 24 seconds years that I would like to understand from you and uh for that uh uh uh the capitalization are we well capitalized 22:33 22 minutes, 33 seconds uh to achieve that kind of an AUM growth. Number one would be that and number two I would also like to understand uh the credit collection 22:41 22 minutes, 41 seconds mechanism because uh in one of your presentation on page number 20 we see that uh the gross assets is close to,042 22:49 22 minutes, 49 seconds crores but stage one is uh close to 93% and which reduces to 5% and subsequently 22:56 22 minutes, 56 seconds at stage three reduces to 1.77%. So why the stage one collection uh is at uh 23:03 23 minutes, 3 seconds such a high level as in uh the del the liquidency is at a high level and I want to understand the collection mechanism if you could help me with that sir. 23:26 23 minutes, 26 seconds support banks 23:41 23 minutes, 41 seconds market. 24:02 24 minutes, 2 seconds support guidelines. 24:40 24 minutes, 40 seconds Next, second% 24:53 24 minutes, 53 seconds Banking channel. 25:26 25 minutes, 26 seconds Okayation stage one close to 93% stage one I think I understand between 0 25:33 25 minutes, 33 seconds to 30 90% 25:54 25 minutes, 54 seconds 93.36% step 26:13 26 minutes, 13 seconds R3 which goes goes up to say 93% 26:26 26 minutes, 26 seconds 14% 14 to 15% bounce rate sir 26:42 26 minutes, 42 seconds Correct. 27:04 27 minutes, 4 seconds Got your point. Got your point. 27:16 27 minutes, 16 seconds Fair enough. Fair enough. Thank you. Thank you so much sir. 27:23 27 minutes, 23 seconds Okay. 27:25 27 minutes, 25 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. Your next 27:35 27 minutes, 35 seconds question comes from the line of Toshar, an individual investor. Please go ahead. Hello sir, am I audible? 27:43 27 minutes, 43 seconds Yeah, you my question is more on the macro front. 27:48 27 minutes, 48 seconds Uh I just wanted to know sort of how is this ongoing macrolevel uncertainty especially the ongoing West Asia crisis and other things are impacting us um 27:57 27 minutes, 57 seconds considering our 75% loan book is contributed by self-employed borrower segment so how is this uncertainty 28:06 28 minutes, 6 seconds impacting yours how is the repayment trains remained you know within this segment that's the first question so I have 28:16 28 minutes, 16 seconds so all these macro things which are happening around the world and which might be impacting India in a manner uh that large business 28:26 28 minutes, 26 seconds houses might get affected those who are directly associated with the government policies that might affect but we are into the segment which is very small 28:34 28 minutes, 34 seconds right we are into the segment which has and which are majorly self-employed and with the very basics uh self-employed 28:41 28 minutes, 41 seconds profiles like grana stores somebody's into contractor somebody who is into dairy business, somebody who is into 28:49 28 minutes, 49 seconds spare parts business. So a lot of macro impact is not impacting their profiles in their business thing right because 28:56 28 minutes, 56 seconds they have a very small scale uh operational level. So in terms of that I don't see any problem that it is going 29:05 29 minutes, 5 seconds to happen in this upcoming in this year and any other upcoming year and with the rate payment also I don't see any trouble on that 29:13 29 minutes, 13 seconds along with that along with that we are very conservative on LTVs also and foes also so that is helping us also to 29:21 29 minutes, 21 seconds maintain the risk profile understood and so just continuing with that so as you rightly mentioned that we 29:30 29 minutes, 30 seconds are majorly focused on uh basically underserved motivated customers. So how would be our underwriting approach you 29:38 29 minutes, 38 seconds know different from the large affordable housing finance players and you know uh these big uh guys out there. 29:46 29 minutes, 46 seconds Third there's a difference. So one is that because we have majorly self-employed profiles. So there is a lot of underwriting assessment which has 29:54 29 minutes, 54 seconds been made in our organization from the last 20 25 years we have been serving this industry. We have been focusing 30:01 30 minutes, 1 second only on rural and semi urban. So we have established our expertise in the assessment process. So we have created a lot of uh different different profile 30:10 30 minutes, 10 seconds templates. We have our own understanding own database to understand the repayment tracks of different different sectors 30:17 30 minutes, 17 seconds where we are focusing on why we are different. So we we don't believe on assessment we of course when you have a less documentation right because you are 30:26 30 minutes, 26 seconds definitely targeting to those particular segment. So we have an understanding of assessment of profile. For example, if there is a customer who's into kana 30:34 30 minutes, 34 seconds business, right? So we have made our own metrics and parameters to assess that particular profile. So our credit team 30:42 30 minutes, 42 seconds goes there and stay with them to understand how the business is there, what are the cash flows, how much expenses they occur during the day, how 30:50 30 minutes, 50 seconds much purchase and how they purchase it from which vendor to wholesaler. So everything is done then and there only at the customer's location right because 30:58 30 minutes, 58 seconds they don't have a banking habit they don't have a GST they don't have income tax returns they don't have would be a madar and all those things so for that 31:06 31 minutes, 6 seconds matter the assessment of the profile and on ground is very important to understand what is the need of the customer what is the end use of the fund 31:14 31 minutes, 14 seconds so for that matter the way we have trained our team is helping us to assess these profiles 31:24 31 minutes, 24 seconds Understood. Uh and so also uh just last thing the collections are happening are 100% uh digital or how much would be the state of you know collections in terms 31:33 31 minutes, 33 seconds of cash collection and digital collection sir. 31:38 31 minutes, 38 seconds So so I think cash collection is not more than four to 5%. Because it is all online now people now have started a 31:47 31 minutes, 47 seconds habit of uh UPI. So I don't think so and it is quite prevalent in uh the semi- urban and rural areas also. So I so 31:55 31 minutes, 55 seconds there's uh the cash collection is not more than four to 5%. 32:00 32 minutes Okay. Thank you. Thank you. Uh that's from my side. 32:06 32 minutes, 6 seconds Thank you. The next question comes from the line of Brendan and individual investor. Please go ahead. 32:13 32 minutes, 13 seconds Hello. Hello. Am I able? Yeah. 32:18 32 minutes, 18 seconds Yeah. Thanks for the opportunity. I just have a few questions. So on the first question, so I have remained stable at around 11% despite rapid growth. So what 32:27 32 minutes, 27 seconds are the sustainable levels that we expect? 32:33 32 minutes, 33 seconds So somewhere around this 11% only. 32:39 32 minutes, 39 seconds Okay. 11% only. And the other question was regarding the average LPV. So it's 32:45 32 minutes, 45 seconds increased from 46.6% 6% to 50.7 on a Y and Y. So is this a strategy that the 32:53 32 minutes, 53 seconds management is using or what is the like what is the risk profile we could use? 32:58 32 minutes, 58 seconds Basically it's not the strategy and there is no risk profile to it. It is more about the nature of the product 33:05 33 minutes, 5 seconds that we are into right and uh to be in the market and to understand that it is 33:12 33 minutes, 12 seconds the nature of the housing finance product is actually uh driving us from a 46 47 33:20 33 minutes, 20 seconds LTB to 50 something something LTV. So that is there's no other uh strategy behind it. 33:29 33 minutes, 29 seconds Okay, no problem. Anyway, thank you. Thank you for the opportunity. 33:35 33 minutes, 35 seconds Thank you participants. You may press star and then one to ask a question. 33:42 33 minutes, 42 seconds The next question comes from the line of J and individual investor. Please go ahead. 33:47 33 minutes, 47 seconds Uh hello sir, good afternoon. I just wanted to understand on your uh SRAN program. So you have highlighted a lot 33:55 33 minutes, 55 seconds on the technology initiative that you all are taking. I just wanted to understand the business benefits you all have achieved for this and what was the 34:02 34 minutes, 2 seconds cost for uh you know developing this app and maintaining it as well. 34:07 34 minutes, 7 seconds So basically we have our own ERP system and continuously we have been developing on that particular platform. Right now 34:14 34 minutes, 14 seconds we have a dedicated IT team for that and uh we have introduced a lot of new changes in terms of AI into uh the 34:24 34 minutes, 24 seconds calling and uh now it is still in the development. We are still because it takes a time because a lot of research 34:30 34 minutes, 30 seconds is required in terms of how we going to uh reduce the t how we are going to uh 34:38 34 minutes, 38 seconds increase the operational efficiency and all those things for that matter it's still under process and we are developing so there's no 34:45 34 minutes, 45 seconds cost is incurred yet but yes definitely we have now increased our team IT and uh uh that's how we are doing it. 34:57 34 minutes, 57 seconds Uh okay. Uh another question I had was basically a bit more on long-term view. 35:01 35 minutes, 1 second So I just wanted to know what AM scale you all want to achieve in the you know in a more long-term like let's say 3 to 5 year period as well and how do you 35:10 35 minutes, 10 seconds position yourself in the market like with competitors like Aptus etc which have around a 20,000 K au currently. So I just wanted to understand how yall are 35:19 35 minutes, 19 seconds positioning yourself in your affordable housing finance segment basically if you could help me on that. 35:35 35 minutes, 35 seconds for 36:05 36 minutes, 5 seconds speech. 36:28 36 minutes, 28 seconds Thank you. Thank you very much. That's all from my side. Okay. Thank you. Thank you. 36:35 36 minutes, 35 seconds Participants, you may press star and then one to ask a question. 36:50 36 minutes, 50 seconds As there are no further questions, I would now like to hand the conference over to the management for closing comments. 37:03 37 minutes, 3 seconds investor longch. 37:36 37 minutes, 36 seconds finanis% 38:15 38 minutes, 15 seconds Construction 38:34 38 minutes, 34 seconds Thank you. 38:39 38 minutes, 39 seconds Thank you on behalf of SRG Housing Finances Limited. That concludes this conference. 38:47 38 minutes, 47 seconds Thank you everyone for joining us and you may now disconnect your lines.