Manappuram Finance Limited ($531213)

Ladies and gentlemen, good day, and welcome to Manappuram Finance Q4 FY '26 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhijit Tibrewak from Motilal Oswal Financial Services. Thank you, and over to you, sir.

Yes. Thank you, Yousuf. Good evening, everyone. I am Abhijit Tibrewal from Motilal Oswal and it is our pleasure to welcome you all to this earnings call. Thank you very much for joining us for the Manappuram Finance call to discuss their Q4 FY '26 earnings. To discuss the company's earnings, I am pleased to welcome Mr. V.P. Nandakumar, Managing Director; Dr. Sumitha Nandan, Executive Director; Mr. Buvanesh Tharashankar, Group CFO; Ms. Vidhu A.L., CFO; Mr. Manoj Pasangha, co-CEO, Asirvad Microfinance; Dr. Roy Barges, Co-CEO, Asirvad, Microfinance; Mr. Rajesh Namburi. Pat, CFO, Ashirvad Microfinance; Mr. Kamal Parmar, Head Vehicle and Equipment Finance; Mr. Rakesh Sharma, Co-CEO, Manappuram Home Finance; Mr. Subir PS, Co-CEO, Manappuram on Finance; and Mr. Robin Karaali, CFO, Manappuram Home Finance. On behalf of Motilal Oswal, we thank the senior management and the Investor Relations team of Manappuram Finance for giving us this opportunity to host you today. I now invite Mr. Nandakumar for his opening remarks. With that, over to you, sir.

Thank you, Abhijit. Good evening, everyone, and thank you for joining us for Manappuram Finance Q4 and Full Year FY '26 Earnings Call. I sincerely appreciate your continued engagement and support. Today, I'll briefly share our perspective on the operating environment. Key highlights for the quarter and the year and our strategic direction as we enter FY '27. Amidst geopolitical tensions, the fourth quarter of FY '26 marked a relatively stable operating environment for the NBFC sector. So the macroeconomic indicators continue to show resilience, supported by PD consumption funds, improving rural demand and stable credit growth -- it is tempered by the are rising other geopolitical tensions, such as inflationary sentences, lately paving up of interest rates weakening of rupee as it well. The lending landscape remains compensating with sustained focus on improvements in petrol and prudent advertising standards. The sector also continued to witness challenges in certain unsecured segments, particularly microfinance, albeit early signs of recovery. Gold prices remain supportive during the quarter reinforcing demand for secured lending products, such as gold loans continue to offer liquidity, flexibility and lower risk. Against this backdrop, our approach remains consistent, protecting us a quality and ensuring sustainable growth. During the quarter, we also observed sustainable growth in our gold loan portfolio in AUM improving subsequently in at a softer phase earlier in the year, while competition remain elevated higher growth, higher economic activities, rural demand, shift in the consumer spending pattern has supported our gold loan disbursements [indiscernible] segments remain diverse while gold loan is largely instrumental to our growth, microfinance is still in recovery phase with modest AUM expansion and improvements in asset qualities. The housing finance business remains stable. The portfolio growth is muted. We remain focused on asset quality, operating efficiency and we got this growth. We are taking a cautious stance in microfinance aligning expansion with improvements in collections and borrower leverage by continuing to scale other segments and prudently. Looking ahead, we expect steady momentum in gold loans, driven by consumer demand. Along with this, our diversified portfolio will enable a balanced and resilient growth. For Q4 FY '26, Manappuram Finance delivered a strong performance. Its growth inferred by core -- our core long business and supported by disciplined spend men across portfolios. Consolidated revenue for the quarter stood at INR 2,614 crores reflecting y-o-y Q-o-Q growth of 10.7% and 11%, respectively. Profit after tax stood at INR 405 crores. For the full year FY '26, we reported revenue of INR 9,409 growth that of INR 993 crores. Our capital position, liquidity buffers and provisioning coverage remains strong, providing resilience and flexibility as we move into the next financial year. Gold loan business, the core strength for gold loan segment continued to demonstrate strong momentum in Q4, reaffirming its role as the cornerstone of our business. Gold loan AUM stood at INR 5,953 crores, registering 9.1% year-on-year and 1.5% quarter-on-quarter. The segment continued to contribute the majority of our consolidated AUM and earnings. Asset quality in this portfolio remains robust, supported by conservating LTV norms, frequent monitoring and strong operational controls. Introduction of the new lending against old collateral lines of the regulator has enabled us to broaden our product offering in a structured manner. We have introduced consumption loans, catering to the household and personal financing needs and income generating loans designed for small business and livelihood purpose, allowing us to serve the differing needs of our borrower base more effectively. Each of these products operate within defined cards on LTV and customer eligibility. The new regulations requiring credit assessment of the borrowers will improve our customer due diligence, resulting in lower delinquencies, cross-selling of other products to our customers, thereby improving their wallet share. Co-lending partnerships have added a further origination channel, extending our reach to geographies where we have limited presence. We also continue to invest in digital capability, analytics and process efficiencies, which are enhancing customer experience, improving turnaround time and driving productivity gains across our branch network. Asirvad Microfinance continue to operate in a cautious environment during Q4 FY '26 of strategic actions we initiated over the past few quarters, including higher underwriting, calibrated disbursements, strengthened the collections and geographical optimization are beginning to yield gradual improvements. We expect the business to stabilize progressively with a sample focus on sustainable growth and improved risk-adjusted terms across working finance main and net lending and affordable alumina, we are pursuing a calibrated growth strategy. [indiscernible] arisen terms of volume. -- trading centers have been tightened, exposure in select segments have been moderated and the collection infrastructure have been strengthened. These segments, it is a moderation in portfolio levels, reflecting a calibrated approach that [indiscernible] portfolio quality and profitability for our aggressive expansion. Asset quality continues to remain the key focus area. Consolidated GNPA stood at 2.1 percentage Provision coverage ratio remained at 27.34 percentage while to persist in certain portfolios our secured book continues to perform strongly. Our balance sheet remains healthy. Capital adequacy 21.3% level subtitles. Strong equity position with diversified funding also across banks, capital markets and site. We continue to maintain a consolidated position stance on closely monitor, early warning indications, petro businesses. as we enter FY '27, our strategic priorities remain clear. strengthened leadership in gold loans to scale technology and customer set innovation, accelerate stabilization of micro cans and other microelectric segments, with a strong focus on asset quality. We maintain balance sheet strength with a disciplined capital and liquidity management, enhance operational efficiency through digital adoption and analytics, continue proactive regular engagement and uphold best-in-class coal stands. While near-term challenges persist in certain segments, we remain confident in the long-term structural opportunity in secured lending, particularly on loans. With our strong brand, extensive distribution network and disciplined execution, we are well positioned to deliver sustainable growth. I would like to thank our employees for their dedication, our customers for their continued trust and our investors for their unwavering support. We remain focused on building a resilience, which are already franchise while delivering long-term value to all stakeholders. With that, I will now hand over the call to Group CFO; Mr. Buvanesh Tharashankar for detailed financial performance statement, after we will be happy to take your questions. Thank you.

Thank you so [indiscernible] Good evening, everyone. Thank you for joining us for the discussion on our financial results for the last quarter and year ended March 31, 2026. Our consolidated AUM for Q4 '26 was INR 6,798 crores, up 22.4% sequentially and higher by 48.3% year-on-year. Gold continues to be our key growth driver with an AUM of INR 5,953 crores up 31.5% quarter-on-quarter and higher by 99.1% year-on-year, supported by the gold price and strong customer demand. Gold loan business constitutes 80% of the consolidated AUM versus 59% in the prior year. Consolidated PAT before OCI and minority interests was INR 405 crores for quarter 4, which was up by almost 70% quarter-on-quarter. For FY '26, our consolidated PAT before OCI and minority business was at INR 993 crores, down 17.5% year-on-year. Coming to the standalone business. Our stand-alone Asian [indiscernible] Q4 FY '26 was at INR 5,952 crores, up 26.6% sequentially and 69.4% year-on-year. Gold loan AUM and stand-alone business was INR 48.4 crores, up 31.4% quarter-on-quarter and higher by 98% year-on-year. Coal constitutes 87.2% of our stand-alone AUM versus 75% in the prior year. For the quarter, our stand-alone pack before OCR and minority interest was at INR 376 crores, marginally down 1.5% sequentially and was 9.4% year-on-year. Stand-alone PAT included impact of a onetime write-off on vehicle loans amounting to INR 84 crores. For the year, our stand-alone part before was INR 1,525 crores, down 14.5% year-on-year. Stand-alone GNPA as on 31st March 2026, was at 1.81% versus 2.61% during the previous quarter and the credit cost in the stand-alone entity for the quarter was 1.2%. Stand-alone borrowing cost has gone down by 17 bps in Q4 FY '26. Coming to the gold loan business. During the quarter, we were able to add 3.16 lakh new customers and outstanding number of customers stood at INR 25.2 lakhs. Tonnage grew by 3.8 tons in Q4. Our average gold loan LTV was at 57% in Q4 FY '26. And the online gold loan book accounts for 92% of our total core loan. Coming to the microfinance business, positive trends emerging in Q4. There was a growth in the MFI AUM of INR 576 crores during the quarter. Disbursements closed at INR 1,086 crores versus INR 680 crores in the prior quarter. And the new book constitutes approximately 55% of the MFI portfolio as a March Asia alone stands at INR 6,794 crores, which includes volume AUM of INR 2,139 crores up 11.9% quarter-on-quarter and down by about 17% year-on-year. PAT before OCI was at INR 13 crores in Q4 FY '26 versus loss of INR 156 crores in Q3 FY '26. Adjusted for one-offs, losses were flat quarter-on-quarter. GNPA is at 4.85% with net NPA at 1.6%, down sequentially versus the prior quarter. Our CRR currently stands at 20.2%. Coming to the vehicle finance business. In Vehicle Finance business, we have reported an AUM of INR 2,991 crores, down 16.8% quarter-on-quarter and 37.3% year-on-year. The focus in the [indiscernible] for several actions including having separate collection teams handling soft and hard buckets, focus on digital reminders, improve max clearance and focus on match bonds collections to improve current bucket resolutions. Total GMP showed a slight improvement sequentially. GMP percentage [indiscernible] was at 10.4% versus 13.7% in the prior quarter. Loans to MSME and Allied businesses stood at INR 3,351 crores on with a disbursement of INR 254 crores in the current Q4, and GNPA was at 7.1% versus 6.1% in the earlier quarter. The home loan business with a total book of INR 1,852 crores was down 2.6% quarter-on-quarter but higher year-on-year by about 1.5%. The Board has declared an interim dividend of [indiscernible] 50 for this quarter. The company is well capitalized with a capital adequacy ratio of 21.32% and consolidated net worth stood at INR 16,051 crores as at March 31, 2026. Book value per share stood at [indiscernible] 13.9%. We can now go for the Q&A session. Thank you.

[Operator Instructions] First question is from the line of Piran Engineer from CLSA.

My first question is for Bin. Out of the INR 215 crore standard -- as a stand-alone provision, how much of gold versus non-gold? Can you break that up, please?

So I share that in fact the tens [indiscernible] office is from non-gold one. In that, as you see the non-store accounts almost INR 16 crores. is the write-off vehicle finance book. So that has celebrated the bases in this quarter.

Okay. You said INR 16 crore write-off? I think in the opening comments, I heard INR 84 crore onetime write-off or the INR 84 crores is onetime and 50% is business as usual. Is that the interpretation?

Out of INR 106 crores, INR 84 crores is net of portion?

Okay, okay of provision. SP416624913 Okay. Understood. Secondly, when you disclose your gold loan average ticket size of 1.7 lakhs, that's on disbursements or on

AUM. Okay. Fair enough. And just thirdly, I wanted to understand this LTV thing. Now gold prices are up 8% Q-o-Q 89% your tonnage growth is 6%, 7% Q-o-Q. So if my LTV is stable, AUM growth should be 14%, 15% Q-o-Q -- so what am I missing here? Has the LTE gone up? Or what's wrong in the calculation here. So the gold price increase is around 20% need during the quarter and 8 percentage 7% growth and the total growth is SP416624913 Sir, you think from 20th December -- sorry, 31st December to 31st March, you are saying 20% gold loan growth. All price. Gold price, yes. Or are you taking an average of some periods -- this is on an actual basis. Average the actual goal on price has gone up by 20%

Next question is from the line of Srijan Gao from Scofield.

I just wanted to understand how sonorofitabilitie tat -- because if I look at either Q-on-Q or year-on-year or on a standpoint basis of the maturity than the processes down Q-on-Q year-on-year. So despite a 70% year-on-year AUM growth or profit -- so how should we think about taking growth and profitability going forward.

If you see the CML. The NIM improved during the quarter. But the main impact is on a kind of higher provisions, especially something on gold the portfolio. That embeds profitability. Otherwise, if we this is onetime write-off, our profit would have been INR 430 crores.

And on the Asha this quarter on credit cost is almost a minimum. What's the costing about the credit cost here for segment

Yes. So the credit cost has improved primarily on account of enhanced collection efficiencies and it's also been complemented with an increase in our book. As in the opening remarks, you would have heard that the rundown is reduced somehow it was going in the previous 3 quarters. last quarter will increase our book and mutantly increased our collection efficiencies. That is had our credit cost control.

And yes, I don't know whether the fourth quarter call a sustainable level because it's almost a

Yes, completely sustainable.

Okay. And then so I just want to understand, why there are positive POC revision change in the fourth quarter for Ashwin. Given that generate in the industry, we see negative ECL organization. model change because of the tough environment in the trailing 12 months.

So I'll take that. So profit of -- I mean the provision was about INR 9 crores was largely on account of certain MTM credits that we got on the security receipts and the change in terms of the ECL provisioning that we took on the new pool because the new pool is performing significantly better. then our best performing cohorts that we had in our portfolio. And basically, therefore, we took write-back on the provision, especially on the new pool. So the impact of the MTM change. And the ECL contributed to a much lower provisioning in the fourth quarter.

How much is the MTM change plus C provision or be?

So LPMs, the ECL on a pretax per basis is about INR 128 crores. Post tax, it would be about INR 96 crores. So sequentially, if you look at quarter 3 versus quarter 4 and given that there was some noise in as well. Adjusted PAT for Atlas Q3 versus Q4 was approximately around INR 100 crores loss sequentially Q-on-Q.

Right. That's very clear. And sorry, just one last question on that. On the previous quarter, third quarter slide, the impairment of financial instruments on the provision cost on [indiscernible] was [indiscernible] . It seems to become INR 439 crores and the on the slide for the fourth quarter.

We will get back to you to offline.

Yes. Just to clarify your question, you want to do the reduced provision being taken in the first quarter.

You're talking about the third quarter impairment of financial instruments, so product cost was strong than INR 49 crores, right? I'm looking at fourth quarter wise. But in the fold, the number was INR 217 to 17 million -- just want to understand what's the performance I'd like to get [indiscernible]

Yes, we will get back to you. Thank you.

Next question is from the line of Shreepal Doshi from Equitas Securities.

My question firstly was on the MFI portfolio. So in that segment, what is the [indiscernible] current locate collection efficiency. And also wanted to understand what is the ECL 1, 2 and 3, while we did give the gross stage 1, 2, 3 for that franchise, but also wanted to know the ECL 123 percentages.

For the statement, we bill is at 1.47 percentage for sale 2 is 24 million -- and for Stage 3 deal 68.50.

Okay. Got it. And what is the exact collection -- or current book collection efficiencies for the franchise or for the microfinance portfolio?

So overall, for the -- both the new book and the whole book put together. -- it stands at 95%, that's for the old and the new put together. If we look at the new book collection efficiency alone, which in the opening of mass, as I said, was at 59%, which is our current old book. We have a strong percentage of 99.41% which is the collection efficiency in the new book. And it's closer to 59% of the portfolio -- that is right.

Got it.

Again, it's a new book at 59% in new and overbook is 41%, as you said.

Got it, sir. The other question, sir, was on the old portfolio. So in that now we have this LTV monitoring as a new regulation requirement of the new -- so what are the changes have been made to either to that guideline?

The nearest applicable terms as several '26, and we are adhering to the regulation and based on ticket size in accrued for the contracted with will also be added. That will be the loan amount, and there are 2 types of launch consumption on semicontent? -- and there will be a credit assessment in case of value forever. So we have implemented [indiscernible]

And for the customer who is highlighting that he will be making a bullet repayment. In that case, what is the LTV that we are sort of giving [indiscernible]

There has been a reduction in the LTV because in the new -- under the new regulation, we have to factor the interest accrued. And it tends to choose the tenor, if this preference is better and then, we can choose shorter tenor products also.

Sorry, we can choose the last point?

A 3-month scheme or 6-month is also [indiscernible]

Okay. Got it. And what is the incremental yield for the gold business because we continue to see that the net yield for the portfolio for the stand-alone business has been coming off. So have you further taken a price change in price strategy downward?

So last quarter, there was a dip, almost 100 basis points. But with that, I think it is the bottom. And this quarter, it will be similar or slightly better.

All right. So incrementally, we have not taken any policy -- any price strategy change, but at a book level, that is where we are in terms of reduction.

Yes.

Next question is from the line of Rohit Ahuja from Lasan Venture.

Sir, could you clarify what's the quarterly profit or loss number for Asia?

Q3, Asia reported INR 156 crore loss. And Q4, it is INR 13 crore profit. And I think the onetime adjustments, all bonus are already explained. The new portfolio behavior is much better and the ECL is adjusted accordingly. And there was a write-back from the valuation. So against INR 249 crores Q3 impairment of financial instruments. This quarter stands at INR 9 crores. So that helped us to report a profit of INR 13 crores for Asirvad in Q4.

Okay. And if you could help us understand how much of this improvement is driven by structural factors like new book mix and collection efficiency versus any one-off reversals and how confident you are in sustaining profitability on this over the next few quarters?

Yes. As I explained, I'll just once again, give you a brief, I think this question will come up again. our new book stands at 59% of our overall book and our old book is at 41%. The overall collection efficiency for the total book stands at 95%. And if I were to look at the old book separately and the new book separately in my X bucket for the old book, which is 41%. In the old book itself in X bucket is 98.6%. And in the new book, which is 59%, my ex bucket collection efficiency stands at 99.83%. If I were to take the overall collection efficiency from a new book. And the reason I want to talk about this new book again is because as I'm talking to you at every quarter, my increase in the new book is going to go, such that by the beginning of the third quarter, he got rid of almost the entire set of old book, say, about 10%, which might be remaining. So from the third quarter, you're looking at an entire pristine book governed and timing with the [indiscernible] guardrails and the collection efficiencies standing at -- if I'm standing about 99.4% in the overall new book. This will reflect something similar in the entire book first 2 quarters as well. So these are things which is going to be helping us in ensuring that profits can be maintained, whilst ensuring that our disbursements also keep moving up. our disbursements both in MFI and our AUM increase in gold because that's something which we tend to forget quite often because we have also a very good performing gold loan book in the Asha books. More than INR 2,000 crores of my book is actually gold as well. So those in my business in both gold and MFI will continue to help us in ensuring that our profits are maintained. With regards to our liquidity to ensure fund flows there because now the problem is not about doing a book. The problem is also not about ensuring our collection efficiencies, proof of the pudding you've seen it already. Liquidity is by and something which the industry will be talking about. When recently announced CGS and new scheme, we are than chasing us. asking us how much do you want us to lend to you in that particular CGM scheme. So at this moment, Sports will be choosing 2, 3 banks that we will want to ensure our liquidity is taking care of a [indiscernible]

Sir, last follow-up on this. So do we expect on a consolidated basis, are ROEs improving to 13% to 14% over the next 2 years?

If you look at the way the business is going, I wouldn't be able to give you a spot on answer for that, but the trends definitely show good results.

So we are expecting the consolidated ROE to improve because gold, we are growing our OpEx, it was the last 1 year has come down by 2 percentage purpose. So the borrowing costs, yes, at this stage is [indiscernible] As you have heard, last has come down by 13 basis points. And so we don't expect increase machines in the overall borrowing costs and the yield is expected to remain at this level of also 18.5%, 18%. So the NIM, we expect to be maintained at this level will definitely improve the profitability. And gold continue to grow at more or less a piece of better than last year now. So things are -- we expect to stabilize somewhere around 13% to 16% in the next 1 or 2 years' time.

Next question is from the line of Rajiv Mehta from Yes Securities.

Sir, any thoughts or has taken to pull back the gold yield because I think you have seen a consistent fall in this quarter also we saw further fall -- so have we taken any corrective actions in terms of actually adjusting pricing from March, April onwards? And second is the mix of the bond loan book in terms of ticket size. Can we control the mix so that we don't have further dilution of the yield. Can we have that control over how the growth -- incremental growth will come out in terms of the ticket size mix? So I just wanted to understand how the lead will play out to base the action that you're taking underground?

We expect the yield to remain between the 17.5%, 18 percentage. We believe that it will not go down. So the strategies are a shaped in such a way to maintain at this level. It is not [indiscernible] Because we are getting a lot of proved from the higher ticket sizes at the lower rate.

So if you don't control that growth on the ground or if you don't rate increase the rate, how would we stay at the current level?

We are targeting the lower ticket size also this is improving. So the trends are even in the coming quarters, you'll see that trend redeems at this level. And what I can tell you what our expectation is to yield some are stabilizing between the 30.5% to 18 percentage.

And on the asset quality in the non-gold businesses, just wanted to understand where are we in terms of the caller cycle? And are we seeing structural improvements now in -- especially in the vehicle finance book, if I were to remove the write-off of INR 136 crores and still there the reduction of drought. So I mean, so can you just give some color about over and above write-off the infill reduction that you have seen? Have you taken control of NPL revenues, have the floors stopped in the -- from the intermediate bucket into NPA. Can you give that confidence? And second is also in case of housing, you have seen a reduction in NPAs. Is there any structural factor there? And third is MSME and light portfolio, you've seen an increase. So how are we controlling the situation there? And do we -- would you need to do some write-off onetime in the coming quarters in MS and allied portfolio just like what we did in IT finance in this quarter?

I'll take that. So as far as vehicles are concerned, we have taken the onetime write-off in this quarter. There are a number of steps that we have taken in the vehicle finance business in terms of focusing on collections. So one is in terms of the enhancements of the teams into soft bucket and hard bucket. There is -- as I covered earlier also, there is a lot of focus on the digital route, especially on the follow-up on the ad collections and in terms of focus on the match bounce cases. So there's a lot of focus around that. Due to all these actions, which were initiated sometime in Q3 of last year, -- we've seen a sustained improved trend we see both in terms of the collection efficiencies and the collections on the nat bounce case is going up from 75% to 90%. So overall, as you've said, adjusting for the write-off also, there is a marginal decline as far as the GNPA is concerned, so as far as flow into NPA is concerned, what we have observed in the last 2 months is broadly flat. Our NPA GNPA is broadly flat in terms of the overall stock yes, from a percentage standpoint, obviously, there is amplification because my overall AUM is coming down. But the stock of NPAs is essentially flat. There are further actions that we will take, and that will kind of play itself out in the coming quarters. So that's as far as the vehicle finance is concerned. On the whole portfolio, Rajesh?

I see we continue to monitor the portfolio closely leveraging on early warning systems, data analytics. We have identified stress accounts sooner, and we are taking corrective steps to curtail that. And we have intensified recovery efforts through a dedicated team -- we have also hired collection agencies in few locations and faster legal escalation, structured onetime settlement and difficult accounts wherever it's appropriate -- we expect states to moderate over coming quarters, get a gradual improvement in overall efficiency asset quality.

So similar can you align, yes. So on the MSME and Allied portfolio also, similar kind of actions are being initiated. So we will see the results, the improvement the numbers in the subsequent quarters. Again, in terms of enhanced collection team. So there's a lot of focus in the non-gold portfolio with regards to the enhancement of the collection team and leveraging of the digital means to improve connection efficiencies. But the trends will play out. Early reads on these trends are very encouraging. They're moving in the right direction. So we will see sequential improvement as we see in the coming quarters.

So then, I mean, if I were to look at this quarter's absolute credit cost, I mean, you had a benefit of you had a onetime impact of INR 84 crores because of the write-off in the voting finance portfolio. But you also have the benefit of SR write-backs and some other kind of imagine we actually our portfolio, which is about INR 120-odd crores. But if I were to eliminate both Then would it mean that the current run rate of credit cost should be maintained, right, in Q1, Q2? And then of course, when the growth of the book will obviously have an impact. But otherwise, on our collection and recovery effort basis, the current run rate of credit costs should be [indiscernible]

The way I would look at it, I mean, it depends on whether you're looking at consol or stand-alone masses.

No, Control [indiscernible] meritor number yes of all the one of [indiscernible] so for Q4 concern

Number, if you look at, yes, there were credits that we got on the Asia side, offset by the build on the onetime write-off on the vehicle finance, largely canceled out each other. So if you were to back out these 2 elements, adjusted PAT, we still have an improvement in our adjusted [indiscernible] crores quarter-on-quarter. And that was largely on account of the volume growth that we saw on Matador. Coming quarters, 1 thing, what as Manoj had just alluded on in terms of the improved numbers and the change in the portfolio mix on old versus new on mass. We will see continued improvement on the Asia portfolio. And we will see continued improvement in the non-gold portfolios as well. So overall, if you see sequentially, I think the cost of credit we will see an improvement in the subsequent quarters. And that will basically help in terms of accretion as far as PAT is concerned.

Next question is from the line of Kamal from Jefferies.

I just wanted to confirm that, is there any restatement done in the interest income line? Because if I'm comparing the same with release of December, I can see some INR 100 crore restatement for Q3. So could you please advise on the same?

So you're talking about the consol financials?

Yes, consol financials. So in the Q4 release, I'm able to see the interest income as INR 234 crores. But in the last quarter's release, it's roughly INR 2,244 crores. So there is some difference if -- which I'm able to see. So is there some restatement being done?

Yes. I will share the exact dates off line, but there is some regrouping.

And secondly, like, if you could just guide on the overall console AUM growth, which we are planning for FY '27. And how much would be driven by different segments like how much should we expect from gold loan? And how should we see the [indiscernible] AUM growth for FY '27?

We have seen good opportunities to grow gold on because now with the new regulation, 2 types of products, consumption loans to a single generating go along in concerting whole loans are targeted towards some other means, et cetera. So it secures a good opportunity. We have an LTV cap for good customers with good underwriting higher core, et cetera, so matrices cetera. We'll be able to offer slightly higher LTE and the scope for this year would be to expand our brand network, the plant because recently, resilient ones to move down requirement of prior regulatory approval for opening new branches that has been removed now. So we plan to open some 500 to 550 branches go on during this year. So that in the places have been identified where the group prospects are good. So this also will be a boost to further go on growth. Regarding our other portfolios already the CEO service already explained the growth not finance already has been concerned by Manoj [indiscernible] disbursals, quality disbursals with guardrails, it is steadily in [indiscernible] where the asset quality collection for this new book is steadily rising. We just come to down 5% in outer 1 quarter, 1 of the taxation thing, also 78%. So that the collection efficiency stands about 99 percentage except hope to maintain that with the guardrails, et cetera. This definitely no scope for improving that ages also as such metrics have been taken for the shifting from the micro form to the site [indiscernible] affordable housing. The teams have been on board up or we are shifting the focus area of lending, the asset quality suspected to be one. So with all these, we expect our control AUM to grow serine good level. We expect that to be maintained more than during the current year, which we have to [indiscernible] That is our expectation.

Next question is from the line of Hardik Dara from Cromer Credit Advisors.

Just wanted to understand going forward guidance in terms of AUM growth mix? And what are the ROA. ROA profiles that we are targeting for the next 2 years?

So this also step forward the opportunities we in new whole lending none, except the new products are coming in. So we will place our products. We are opening rates also about micro finance also. It has the asset quality is steadily improving. The bolt-on portfolio is also improving. They are also targeting more and more quality. Similarly, with the product shift, et cetera, arginase also is suspected to fare well. So as I said, this year's volume growth in gold loan will be expected to be more than what we have achieved during last year. And for other products also as our new phase has come new leadership has taken the chart. So we have our expertise a long number of years in leading large companies, et cetera. So we expect that growth to be a good -- to give any number, but we expect that to be good.

Got it. Okay. And sir, any number for the FY '28 ROA ROE that we are targeting?

We are targeting over 15%

Next question is from the line of Piral from Investec.

I just had one question. I just wanted to know the auction number for this particular quarter.

You pay about INR 29 crores

Next question is from the line of Agam from Aga Investments.

Sir, you mentioned 1 point that new leadership has come in -- but can you talk about that? Which areas as we have persons a comment? And also, the second question is on the status of [indiscernible] is planning to join in earlier? Or how is it [indiscernible] that also pros?

The receding in Singapore. So yes, we are not sure when he will join, but his health is improving. But we are not able to say then that the exact time of his join. So regarding the new lanes, et cetera. microfinance, Manoj has taken the chart as the CEO similarly in orders Mr. [indiscernible] has taken the top. So they have long experience in running large portfolios, et cetera. The action taken by [indiscernible] results are also be evident and has taken the [indiscernible] -- so in the next 1 year, Q3 is going to extramatic change, similarly Sagewood targets also leading [indiscernible] or plants.

Okay. And anyone else? Are we also considering this [indiscernible]

At the group level, the ones has joined this group of solely. Ashish has joined [indiscernible] group of CCO [indiscernible] MRs group, we will cancel the specific a COO, and we expect more -- some more reset to join at the position of and Head of [indiscernible] Collection has joined in Monro finance and CP also have joined. So these are all senior leadership. [indiscernible] the capabilities, the leadership in their previous organizations.

Okay. And just last question. If deemed appointment gets comes laid, so are we looking at anyone else fulfilling the role or something like that? Just to break it through.

No, we will wait for to see his self is improving. And also, he will be able to take a -- we are hopeful that [indiscernible] will take on the sort of the company.

Next question is from the line of Yash Bandari from Neo Markets. The line from the current question have got disconnected. Ladies and gentlemen, with that, will end the question-and-answer session. I now hand the conference over to the management for the closing comments.

Thank you for your questions. I hope we have answered your questions if we get any details. So we are available. Thank you.

Thank you sir. On behalf of Manappuram Finance and Motilal Oswal Financial Services Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.