Capri Global Capital Limited (531595) Earnings Call Transcript & Summary

Ladies and gentlemen, Good day, and welcome to Q2 FY '22 Earnings Conference Call of Capri Global Capital Limited, hosted by Go India Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ravikant Bhat, from Capri Global Capital Limited. Thank you, and over to you, sir.

Hi, everyone. This is Ravikant here. Thank you for dialing in to the Capri Global's Q2 FY '22 Results Conference Call. Like always, we shall start with opening remarks by our MD, Mr. Rajesh Sharma, followed by more detailed remarks on the earnings performance by our CFO, Mr. Raj Ahuja. Over to you, sir.

Yes. Thank you, Ravi. Good afternoon, and thank you for joining us for a discussion on Q2 FY '22 results of Capri Global, especially on a day packed with results and con calls. On the evening of Festival of Lights, let me first extend to you all warm seasons greetings from the Capri Global family and wish you prosperity and happiness in the year ahead. As you all are aware that Board of Capri Global approved Q2 FY '22 results on Saturday, 30th October 2021. I hope you had an opportunity to go through the investor presentation, which has some enhanced disclosure on asset yield trends and asset quality. We have expanded the quarterly graph to include rolling 5-year, 5-quarter data instead of 3-quarter data so that it gives a better representation of the short-term performance trend. I shall keep my opening remarks focused on the balance sheet and business initiatives. MSME. The-growth in MSME was robust with nearly 41% of incremental disbursements happening in the segment. A robust 5.2% sequential AUM growth is indicative of the growth potential for the portfolio in H2 FY '22. You may have noted our credit filters have been tightened with disbursal to log-in ratio at 31% currently compared to 34% two years ago. As regard affordable housing, the housing finance segment has also delivered a robust growth momentum during the quarter. Although customer segments overlap between MSME and Housing Finance, it is pertinent to note that salaried segment has contributed to a relatively better [indiscernible] and recovery in this segment, [indiscernible] resulted in net NPA considering aggregate ECL provisions are once again negative in this segment. The Construction Finance segment continued to show robust momentum. It had second higher sanction in value terms in 12 quarters, the highest being in Q4 FY '21. We, therefore, expect the vertical to contribute strongly to overall AUM growth in H2 FY '22. There are no new NPA in this segment. NPA in absolute terms remained unchanged and net NPA remained negative. New car loan distribution business, I have made brief references to the new car loan distribution in the previous 2 con calls. In February this year, we initiated this business to distribute new car loan product of commercial banks for a fee consideration. In a short span of 8 months, we have tied up with 3 commercial banks to distribute their products and scale up to 186 locations. We achieved a distribution volume of INR 342 crores in Q2 FY '22. This is an asset-light model with reliance on feet on the street and minimal brand presence by leveraging our existing branches and manpower. New branch locations. We have now operated from 102 branches compared to 89 branches in Q1 FY '22. Of these 3 branches are exclusive to the car loan distribution business, while the urban retail and construction finance segment operates from the rest of the branches. We are presently focusing on growing our presence in businesses in Gujarat, Rajasthan and Madhya Pradesh. While portfolio restructuring has been relatively high among all the segments in MSME, there is no further pipeline with the closure of RBI windows and restructuring. We are tracking certain high frequency indicators like check bounce ratio, which is almost is not in their desired target zone but still they are moving rapidly towards stabilization. The data is significantly better for housing and construction finance. For a competitive picture, we would like our stakeholders to continue tracking the collection efficiency on cost, which is stable. As regard human resources, our recruitment drive is driven by the branch addition and the new car loan distribution business. I would like to mention here that our branch additions are not totally rigid. We always initiate business at the location before converting it to a branch since the branch breakeven usually happens in a short span of 2 to 3 quarters. Therefore, the slightly higher than the trend, cost/income ratio noted in Q2 FY '22 should stabilize as new branches become more productive. We are gearing up to launch the new secured loan product. Our technology implementation process, hiring is happening as we speak. And we expect that in Q1 FY '23, we should be able to launch the new product. And closer to the launch, we'll share the more detailed information with you all. In conclusion, I would like to reiterate that our growth theme focused on secured urban retail lending is on sound footing. It shall soon be complemented by revenue streams from recently launched and seem to be launched products. We remain committed to expanding leverage through organic route and deliver mid-teen ROE to our shareholders over the medium term. I now hand over to ED and Group CFO, Raj Ahuja, for his remarks on Q2 FY '22 earnings performance.

Thank you, Rajesh. Hello, everyone. This is Raj Ahuja. I'm the ED and the Group CFO at Capri Global. I shall be presenting the key performance highlights of Quarter 2 FY '22. Wherever not specified, all references shall be to the consolidated financials. I shall start with the business highlights, after some roller-coaster until the quarter 1 of the current year, our consolidated disbursals in our 3 main products, which is MSME, Affordable Housing and Construction Finance, registered both quarter-on-quarter as well as year-on-year increase of 1.9x and 3.1x, respectively. This reflected in our AUM growth, which increased 27% year-on-year and 6.5% quarter-on-quarter at a consolidated group level. You would have noted, Affordable Housing and Construction Finance share in overall AUM has gone up marginally in quarter 2, while that of MSME and indirect retail lending has declined. This has been on account of a more conservative MSME expansion during this quarter. We continue to hold PTCs worth 1.73 billion representing a pool of affordable home loans. We have purchased this pool in quarter 4 of last financial year, which carries a credit enhancement of INR 596 million. The outstanding in this pool has been [ sundown ] and current outstanding is INR 1.43 billion. PTCs in our balance sheet are shown as part of the investment portfolio in the balance sheet and they are part of AUM. Currently in our business segments in terms of average ticket size, LTV ratios and geography distribution remains unaffected. Overall, there is no chunkiness in any of our exposures and individual data is clustered around the mean. Please refer to Slide 14 to 16 for segmental information of our investor presentation deck. On Slide 17, we have also added some [ liability ] to the breakup of our borrowings. Although the share of commercial bank warrants is up sequentially, we are in the process of securing more fresh lines from refinance institutions. Overall, our borrowings have remained to be a healthy mix of non-market liabilities. Slide 20 and 21 show our structural and short-term ALM positions, which remain well matched in all the aging segments. Coming to the earnings. Our net income increased 18.4% year-on-year to INR 1,398 million, of which net interest income contributed INR 1,180 million. Although NII growth at 12% year-on-year has trending below the AUM momentum, it may be noted that the momentum in NII had been softening previously due to a hard stop on business as well as negative carry off on funds. The trend is now reversing and a sequential growth of 7% gives a better picture on the movements ahead, which also is in line with the sequential AUM growth of 6.5%.[indiscernible] In this regard, the chart on the Slide #10 are instructed. The loan spreads and net interest margin shows a clear reversal on the upside after quarter 4 of last financial year. As we deploy higher liquidity in our core assets from the investment -- as compared to investments, incrementally, we expect the core earnings trend to strengthen. The cost-income ratio rose above the 5-quarter average trend of 37.4%. However, this is a short-term bulking up the cost as we initiated some pent-up recruitment during quarter 2 of the current financial year, as well as rolled out our new branches. While commenting on cost-income ratio, I previously mentioned that we'll structurally remain a 35% to 40% cost brand and the target stays unchanged for us. Credit cost includes write-ups declined from INR 181 million in quarter 1 to INR 107 million in quarter 2. The credit cost to average ratio was noted at 84 bps. The credit cost in quarter 2 FY '22 are not directly comparable with the quarter 2 of the previous year, or include an asset quality standstill in the previous period and associated negligible provisioning that was undertaken in the last year same quarter. We had guided our credit cost to trend around 120 bps as we exit quarter 4, of this year, with an anticipated level of 150 bps for the first 9 months of the year, we are pleased to have remained well within the range while trying comfort of being in a position to absorb higher provisions if need be in future. The quarter 2 FY '22 net profit increased as a result of all the above, 14% quarter-on-quarter to INR 525 million. I shall now turn to asset quality. Our gross stage 3 ratio softened 19 bps quarter-on-quarter to 3.3% and net stage 3 ratio softened similarly to touch 61 bps. Our total restructure book stands at INR 2,189 million versus INR 2,038 million in quarter 1. The MSME book contributed INR 2,054 million and Housing Finance, INR 136 million to this book. The aggregate restructuring book was 4.4% of AUM, an uptick of 3 bps quarter-on-quarter. There are no restructured accounts in the Construction Finance and Indirect Retail lending book. Pipeline for restructuring in MSME and housing is now 0, with the closure of RBI special dispensation window for restructuring. So we are not expecting any further addition to the restructuring book now. In summary, the quarter 2 FY '22 offered fresh optimism, and we chose to write the momentum. Vaccination have kept solid pace and fresh COVID-19 infections have remained range-bound with an overall declining trend. I would like to hop back to what we had stated post quarter 4 earnings that the first half year of this financial year shall be one of managing P&L challenges, while the second half shall offer better growth opportunities. In retrospect, we can say that more optimistic scenario played out in H1 FY '22 for us. In this backdrop, I would once again like to reiterate CGCL has amongst the strongest capital adequacy ratios, a robust core operating profit and multiple liability relationship to fund its growth. We therefore remain confident of our growth trajectory over medium term. Before I conclude, I'd like to wish all of you a very Happy Diwali and festive season ahead. With this, I shall conclude my remarks. We shall now take questions. Thank you.

The first question is from the line of Shreepal Doshi from Equirus.

My question was with respect to the housing disbursement. So that is close to INR 142 crores during the year, and we've seen a strong sequential growth there. But I also see the ticket size there has increased significantly on Q-on-Q basis. So just wanted to understand two things here. One is that what is the -- how many number of applications are we seeing per month that have gone up over the last quarter? And is the disbursement during the quarter, like was it -- a lot of it was also because of the -- there were a lot of cases in pipeline during the first quarter, which got disbursed during the quarter. So if you could just give that what fresh loans we got during this quarter? And how much we would have disbursed for that? And what was it in the pipeline and towards that what was the disbursement? So if you can just give some color there.

Yes, Shreepal. So your two questions. One is how much -- whether the higher disbursement was on account of whether the first quarter cases, which are already logged in but there is -- But that is a continuous process. Some of the cases that were logged in June are disbursed in July. But so is the case be in September, which are logged in some of the cases, which will get disbursed in October. So there is an ongoing thing. So that gets neutralized in every quarter. So it is not that because of that disbursement has gone up. As far as specific number is concerned, Raj, will you be able to explain how much specific housing finance have been disbursed?

Yes. Sure. So in -- Shreepal. So in the incremental disbursement, your observation is right that the average ticket size has gone up this quarter. But that is not because of any structural and fundamental change. This is mainly because of the fact that quarter 1 was a subdued quarter for us. And most of the disbursement which happened in quarter 1 was only the top-up of the previous sanctions. They were not actually the new sanctions. Most of the new sanctions which started happening in June-July onwards, they built up in this quarter, and that's why our average ticket size has been back at around 1.2 to 1.3. Plus also some locations which contributes to the lower value continue to be in the lockdown, some portions of Maharashtra, some portion in some other parts of the country. And that would have resulted in a little bit higher ATS this quarter. But our focus on having a very retail book in the Housing Finance continues to be valid. Our average ticket size will continue to be in the range of around INR 12 lakhs to INR 13 lakhs, and we are not much of it. So if you see the drop also, quarter 1 is the aberration other quarters, we have been in the range of 1.1 to 1.3.

Right, So just a connected question and thing that I wanted to understand was that, are we seeing -- because see what my understanding and observation is that in the real estate sector, the segment that we cater to there, we have seen the demand to be robust and the incremental construction cost has also gone up. So we are anyway experiencing no price discounts from the developers. And in fact, there are price hikes that the developers have taken. So is that also getting reflected in our fresh disbursement and in the kind of applications that we are getting currently, wherein somebody who is asking for -- who's taking a loan for INR 25 lakh ticket size home now that is INR 27-28 lakhs. So probably 4% -- 5% increase is also because of that--which you can give more on a qualitative comment that you would have observed. So yes, that definitely I wanted to understand.

I don't think Shreepal, that in our segment, like the affordable housing loan, there were too much of discounting happening earlier, which is not there. So it may be some partial impact, maybe few percentage points. But it is not that -- most of the discounting and the offers actually goes in the mid -to-high segments where we don't operate. So yes, there will be a little bit of an inflation impact. There will be some small bits of these offers and discounts no more available because of the higher construction costs also there may be a little bit increase in the housing projects.

Got it. One last question was with respect to restructuring. So we had 4.4% as a restructure book. So what is the nature of restructuring that we have done for housing and for MSME loans? Like what would be the moratorium given? And what would be the extension of tenure for these -- for most of our customers, the range if you can give?

So that disclosure is already there in both the press release as well as on our presentation, that our MSME book is considering the maximum of the restructured assets. Our total restructure asset book is INR 2,251 million, out of which INR 2,115 million, which is almost like 90% is MSME book and INR 136 million in the Housing Finance segment. And in terms of moratorium, it's very, very customer like dependent, we have ranged between 0 moratorium to around 12 or -- maximum, I think, 18 months moratorium. So most of the moratoriums are between 6 months and 9 months and some flowing down to 12 months' time also.

Okay. So this will be in the housing or is it in the MSME -- this is across book?

This is across. We have not done a separate analysis, but this is across.

Okay. So we are giving moratorium and we have not like decreased an EMI or things like that, but we've just given them blanket moratorium to some of the customers which would be in the range of 6 to 12 months.

That's right. That's right. And this also is the RBI framework, where it is left to the customer to -- based on his condition, the customer is expected to ask for that kind of a moratorium and we are bound as per the RBI guidelines to honor that request.

Got it, got it.

Based on our knowledge about the market also. I think everybody is in the similar range. It's not that we are much -- like say, away from the mean in the market.

[Operator Instructions] The next question is from the line of Arjun Bagga from Nirmal Bang Institutional Equity.

So I had another question with respect to the restructure effects of 4.4% on our consol book. So I just wanted to understand that in terms of the slippages from this book, like how much are we expecting? And if you could just break that down from the MSME and from the housing.

So you're asking how much slippage will happen from the restructure book in MSME as well as Housing Finance?

Yes, sir.

First of all, our portfolio is entirely secured by collateral. So every loan is secured by either hard self-occupied house of self-occupied business premises. Second, the loan-to-value ratio is almost 50% in MSME and about 68% in home loans. So there is an adequate security cover available. So even in these restructured portfolio, assuming that some percentage, which you expect about 20% -- and this is an estimate, this can go here and there because there's not some formula bias. But our judgment is that around 20%, it can slip into the NPA. Over a period of time, it will not happen in one quarter or two quarters. Even though that NPA happens, so out of INR 218 crores, if 20% slips, even that will be spread over a period of time. And then with the tool of surfacing other recovery methods and because of the secured collateral and this enough security cover of loan to value, we don't expect that this will give some kind of surprises or some kind of a credit loss, which will go beyond our estimate we have given.

Sure, sir. That's helpful. And another question I had, this was regarding the branch network. So we have a target of doubling our branch network. And so in that regard, I just wanted to check like so how are we going to be expanding? So would it be in the existing states? Or would we be targeting new geographies or like what would be the new geographies that we target?

So we'll go deeper in the states we are currently operating. Currently, we are operating in Gujarat, Maharashtra, MP, Rajasthan and NCR. We have already acquired the understanding of local property laws, local valuation norms, local business practices. So we'll go deeper in that. And we believe that there's adequate scope in growing our branch network in these states. Our competitor, where we have 30 branches, they already have 150 branches. So -- and there's enough business is happening. We, with our regional team in present, it is much cost effective and much smoother to go deeper in that. So first, we'll go deeper in those states. Our target to go to 225 branches in next 4 to 5 years, I think we'll achieve much earlier than that. So we are not adding new geography at the moment in next 2 years. We'll continue to open our branches in current areas where we are operating.

Sure, sir. And a related question. So despite these branch expansion, so we are -- I just wanted to confirmation, we are just keeping this cost-income guidance at 35% to 40%. It will still remain in this ballpark?

Yes, because when we open the branches, it is a continuous process, still we stabilized our branch network and all. I think -- but still with the growth in AUM, it will still give you a better return on equity when the AUM grows and the leverage goes up. Yes, till we keep on opening the branches, that new branches will stabilize in 6 to 9 months' time and achieve breakeven. Hence, our cost-to-income ratio will remain in that range. Once we stop branch -- new branch opening, then perhaps it will slightly come down. Or with the gradually increase in the branches where we cross a particular AUM, then also the cost-to-income ratio will come down.

[Operator Instructions] The next question is from the line of [ Srishti ]from [ Melvin Consulting ]

I just have to 2 queries. So first, I wanted to get an understanding of the new car loan segment that we recently got into, and what are the economies and synergies involved in this car loan business. And also, it would be helpful if you could brief us about your future plans in this particular vertical. And second is on the home loan side, we are currently seeing strong demand scenario and also the company is being a little more cautious than peers. So considering these things, what pace do you expect us to grow in this particular home loan segment?

As far as car loans are concerned, we have existing branch network of about 102 branches and we have a frontline sales team in excess of about 1,000 employees. Thus, we are using the cross-sell of generating the car loan lead because new car loan, NBFC cannot give being banks are giving in the range of about 7% to 8%. However, we get a very good incentive and commission to do that. So we are leveraging on our existing branch network, our existing sales team. Besides that, we are also adding to our network some new employees, specifically, which are handling this new car loan origination. We get a good amount of incentive, and we expect that next year, this will give a good amount of income. We expect at least INR 20 crores we will generate from this vertical alone after meeting all the expenses and all. And there is no risk involved. There's no capital employed in this segment. This is a purely free income. And this is giving a leverage too. Going forward, currently our monthly run rate has come about INR 175 crores, and perhaps we are among the top 2, 3 in this -- as far as the originators are concerned. We believe that with the help of technology and further expansion and all, we should be able to achieve a volume of INR 250 crores to INR 300 crores per month. And this should be a good profitability. In future, when we start the used car loan, this is a good database of the customer when they sell their car and some customers wanted to buy. So some leverage also it will be giving when we start the used car loan financing for, which we are evaluating. So overall, this should be a good -- give kicker to our return on equity. As far as home loan is concerned, we are operating in affordable housing finance segment with a conservative valuation. And we are focusing more on a salaried income, where we are getting good credit line for NHB at a very attractive interest rate of 3.5%. So we are adding more salaried customer, whereby we are earning 6% spread. We still [ can't ] compete in the market because we are lending to the rural which government, and as we wanted to promote by giving low interest rate loans. There's a huge demand-supply gap in terms of availability of loans and the new houses of smaller sizes are being built. After Pradhan Mantri Awas Yojna, credit subsidy has kicked in. So even though when we give the loan there is a margin of own contribution put up by the borrower, plus when the home subsidy -- interest subsidy comes from Government of India about INR 230,000, that further improves our loan-to-value ratio. So in this segment, risk is minimal. Except the fraud case, we are not bound to lose the money in this segment. The challenge remain that within the high operating cost, how do we improve our margins. So I think that will happen with the scale. So I do not think there is a huge credit risk involved. I think that high operating cost is some challenge which we have to deal with and improve our return on equity.

Okay. That is helpful. And one more question, if I may ask. So our MSME collection efficiency was slightly lower at 85.9% versus 86.5% last quarter. So what are the challenges here that we are facing? And how do you see the same shaping up ahead?

So if you see MSME, the nonpaying standstill portfolio currently is about 13%, while the collection efficiency is near about 86%. Thereby, it means we accept the restructured portfolio. Nearly all the customers are servicing their dues in MSME. We expect that with the full fledged economy is now rebounded, COVID impact is negligible, businesses are bouncing back, activities are at pre-COVID's level, I think with the enhanced demand in the MSME sector, the business level activity will go up, so the requirement of the new loans, so business will grow. Similarly, their income also improved, their ability to repay will improve. So we do not see that there will be any surprises in that. I think worse phase in MSME segment is over. Now whatever little challenge we have in restructured portfolio over a period of time with their improvement in income, I think we should be able to do well and we should be able to do contain our delinquency. Our now codes surfacy action, which was prohibited, is also opened up. So that will also give a bump to the recovery proceedings and results thereon. So, the new NP will keep coming more, getting resolved and the cycle go on like this. But we expect our NPA and GNPA will remain overall in the stated range.

[Operator Instructions] The next question is on the line of [Ankita Nayar ] from [ Rubik Investments ]

I have a couple of questions. When I look at your pre-COVID presentation, say, two years back, you were targeting a growth of around 40% to 45% CAGR. And now it's 22 -- it's in the range of 22% to 27%, if I'm not wrong, for the next 5 years. So what has changed? Is it COVID or there is some change in the business strategy? Could you please throw some light on that?

Yes. So I think with the increased base and the impact the COVID had , of course, has slowed down, the 1-year growth, plus we are launching the new product. And with various discussion within the company, including the Board, we have decided to keep our growth targets in the range of 22% to 27%. And if you've seen quarter-on-quarter, we are trying to achieve that growth. Last year, all the 4 quarters combined, put together, did grow 20%. And this year, we are on course to deliver the growth between 22% to 27%. Long-term growth, we have decided to keep in this range only. And there is no change in the strategy except that we'll add a couple of products in the gold loan. And we also started this new car loan distribution tied up with the 3 banks. So we'll remain on our stated strategy and our growth will be in this range, 22% to 27%.

All right. Got it. My next question is regarding the Construction Finance division. So now do you see like better growth given that there is a real estate boom? And -- or will you like -- or will you maintain a cautious approach with respect to growth over here?

Our major growth driver will be always MSME and Affordable Housing. The Construction Finance on overall level will be below 25% and more in the range of about 20%. So while we are cautious, our biggest size is lower, our collection efficiency is better, our portfolio is doing well. But growth major will happening from MSME and affordable housing. So this segment will not go beyond -- it will range between 20% to 25% of overall value of the company.

Okay. Got it. And lastly, how do you expect the asset quality management in the next -- like ahead for the next 2 quarters? And do you see any surprises in MSME sector happening?

I don't think so because economy activity levels are back and we are clearly seeing COVID whatever third wave are expected, it doesn't look like that will happen and we'll face any lockdown again. With this hope and assumption, we do not think there will be any surprises in MSME and Affordable Housing segment.

[Operator Instructions] The next question is from the line of [ Palak Chopra ] from [ Kapur Capital Private Limited ]

So sir, my first question is that I wanted to know, how are you moving ahead in terms of leveraging technology in your business model, given that it's the only way forward, and so many new fintechs have already entered the foray? Just wanted to know your opinion on that.

So as you rightly said, now the new age is that we have to use more technology to reduce the overheads and to make the processes better and faster. We have already employed one of the best consulting firm, BCG, where they are guiding us and advising us on tightening our processes, using more technology, data analytics. While in our business, front-end cannot be entire on technology because we are dealing with the customers who have no income proof. But there are various tools like customer app, sales mobility application, collection app, where immediately receipt can be issued, data can be updated, balance can be shown. All those are being implementation. And in a phased manner, the first phase should be over by 31st of March. And we see that there will be improvement efficiency. There'll be improvement in the overall productivity of the sales team. So we are focusing our these [indiscernible], I think, without increasing manpower, if you can improve our overall productivity that will give us a very flip in that profitability. So we are working on the technology side. We are using best of the consultant. Recently, we hired a CTO, we have hired a head data analytics. So there is enough focus to build the team with the right people in technology team and data analytics team.

Right, sir. Right. Sir, my second question is that our cost-to-income have inched up again. So as I can see, we have added a lot on our employees this quarter. So which business verticals are we hiring more? And what should be the cost-income expectations for the full year, if you can give something on that?

The full year cost-to-income ratio will remain in the range of about 40% to 42%. We have added more employees in the MSME, Affordable Housing and also in new car loan origination. Plus, we have added a lot of people who come with a significant cost in the technology and data analytic teams, which have also contributed to the higher cost. But they will result in a great saving in terms of tightening of processes and lower costs in terms of better productivity. So those benefits also we'll accrue next year.

Okay. Okay. And sir, I am expecting that no capital raise is required at this point or maybe over the next few years also. So if you could just shed some light on steps of your going forward.

So I think we have given in our presentation on our website also over a period of next 5 years, we are targeting an ROE in the range of 16% to 18%. Already, this quarter's ROE is about in the range of 11.7%. And if you talk about H1, about 11.5%. Next two quarters, I think will be better. So we hope that ROE will be in the range of about 12%. But more we leverage, more our AUM goes up, ROE will slowly slowly move towards our targeted area of 16% to 18%, and that might take 3 to 4 years' time.

Right, right, right. Sir, one last question. Sir, what was the rationale to bid for IPL team? What would have been the cash flow outflow had we not won the bid? And also that Capri balance sheet has this much strength?

So that bid was not from the listed entity. That was from the one of the promoter entity, and that entity would have handled it from their own sources.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Yes. So as we said, we will continue to grow on our stated strategy of growing the book through MSME, Affordable Housing, catering to those customers who are in a low-income group segment and add the more secured product. So our entire philosophy of serving those customers who do not get excess credit from the banking system will remain intact. And we believe that now economy is back on track, activity levels are back, even rural and urban area both are bouncing back. Festive season is -- we are seeing the full activity. So with this hope, we see that next half -- second half will be better than the first half significantly. And in the long run, with the adequate capital adequacy in place, good banking line in place and good collection efficiency and sharp focus, and now we are almost in this business for more than 8 years, we see that we'll continue to grow in the range of about 22% to 27%. And with this, we are quite confident to improve our profit year after year as we have done in the past. Thank you.

Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.