Capri Global Capital Ltd (NSE: CGCL) Q3 2025 Earnings Call dated Jan. 27, 2025
Corporate Participants:
Hardik Doshi — Head of Corporate Finance & Investor Relations
Rajesh Sharma — Managing Director & Chief Executive Officer
Analysts:
Satyaprakash Pandey — Analyst
Kushagra Goel — Analyst
Akshat Maniar — Analyst
Sohail — Analyst
Shalin Kapadia — Analyst
Rohit Shinde — Analyst
Pradeep Kaushal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Global Capital Limited Q3 FY ’25 Earnings Conference Call hosted by Grow India Advisors. As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your telephone. Please note that this conference is being recorded. I now hand the conference over to Mr Harzik Doshi from KPE Global Capital Limited. Thank you, and over to you, sir.
Hardik Doshi — Head of Corporate Finance & Investor Relations
2025 earnings call for Kepri Global Capital Limited. This is Hardik Thoshi, Head Corporate Finance and Investor Relations.
As a brief disclaimer, the discussion on today’s call regarding Kepri Global Capital Limited’s earnings performance will be based on judgments derived from the declared results and information regarding business opportunities available to company at this time. The company’s performance is subject to risks, uncertainties and assumptions that could cause results to differ materially in future. Given these uncertainties and other factors, participants on today’s call may observe caution while interpreting the results. The full disclaimer is available on the Slide 42 of the earnings presentation.
Participants are requested to take note of the same. Let me now introduce the participants on the call. With us today on the call, we have Mr Rajesh Sharma, Managing Director of the company; Mr Partha Chakrabarti, Chief Financial Officer; Mr Sanjeev Srivastawa; Chief Risk Officer; Ms Divya, Director of Business Strategy; Singvi, Financial Controller. I now request our Managing Director, Mr Rajesh Sharma, to present the opening remarks. Thank you, and over to you, sir.
Rajesh Sharma — Managing Director & Chief Executive Officer
Good morning, everyone, and I hope you all are doing very well. We declared our unaudited financial results for 3Q FY ’25 on 23rd Jan 2025, and I hope you had a chance to go through the earnings presentation, which is available on our website. As you all know, we continue to serve underpenetrated and unbanked customers in high-growth segments with substantial untapped market potential, while maintaining a strategic focus on building a retail franchise to secured loan book.
We are a diversified NBFC with presence in MSME loan, housing loan, gold loan, construction finance, we continue to further diversify ourselves by expanding our product offering. In the last quarter, under our MSME loan segment, we launched MicroLab, a small-ticket secured loan product for self-employed customer and launched rooftop solar loans. In addition to growing our interest income, we are also focusing on increasing share of fee income through insurance distribution and car loan originations.
We continue to invest in technology as we believe that our digital-first approach and superior technological processes will be the key differentiator, enabling us to serve our customers better and faster than our peers. I shall now move to the commentary on business and earnings performance. Please refer Slide 3, 4, 5, and 6. We maintained strong growth momentum in 3Q FY ’25 with our AUM reaching INR20,663 crores, an increase of 54.6% year-on-year. This growth was primarily driven by growth of 196% year-on-year in gold loans and 31% in-housing loans.
In addition, our Micro Lab segment has already touched AUM INR157 crore in two quarters. Our disbursement touched INR5,839 crore during the quarter, reflecting a 52% year-on-year growth. Our retail AUM constitute over 80% of our portfolio. Our co-lending AUM continued to search during 3Q FY ’25 and stood at INR3,681 crore, comprising 17.8% of AUM compared to 8.9% in Q3 FY ’24. We have further strengthened our relationship with nine bank partners, increased co-lending lines and the acceptance ratio of the loans compared to a year-ago.
We expect to continue this momentum in co-lending as an efficient tool for high ROE accretion and liability management. We continue to build well-diversified portfolio for our MSME housing loans with average ticket size of INR20 lakhs. Our MSME AUM including Microlab loans reached INR4,926 crores, up by 4% year-on-year and our housing loan segment AUM reached INR4,586 crores, up by 31% year-on-year.
MSME and Housing Finance together continued to constitute 50% of our overall AUM. These are plans to open new branches for these segments and focus on underserved market, we are confident that our MSME and housing loan portfolios will deliver robust and sustainable growth in the coming quarters. Our gold loan AUM increased by 196% year-on-year to cross INR7,092 crores, supported by our extensive gold loan branch network of 776 branches across nine states and union reach. These branches are scaling up and have achieved a productivity level of INR9.1 crore AUM per branch with over 65% branches having reached the vintage of more than INR5 crore AUM per branch.
We are confident that our expanding reach and co-lending partnership will continue to fuel sustainable growth and further strengthen our position in the gold loan segment. Our construction finance AUM increased by 65% year-on-year to cross INR3,742 crores, driven by strong demand in real-estate sector and pipeline of new affordable housing projects. Our disbursements in-construction finance for 3Q FY ’25 stood at INR822 crore, up 51% year-on-year. We continue to maintain a granular book in our construction Finance segment with over 287 projects and average portfolio ticket size of INR13 crores. In Construction Finance, our focus will remain on residential projects within the affordable housing sector and smaller projects.
Now as regard — regards earnings performance, let me now provide an update on our core earnings. Our yields in spreads expanded further in the quarter to 16.7% and 7.3% respectively, primarily on account of increase in yields for housing finance to 12.9% and gold loan to 20.6%. Our net interest income for 3rd-quarter FY ’25 reached INR347 crores, marking a 42% year-on-year increase and for nine months FY ’25 reached at INR953 crores, marking a 30% year-on-year increase driven by margin expansion and robust growth in our loan book.
We continue to focus on non-interest income with its share in total income at 25.9% in nine months FY ’25. Our non-interest income comprises of three components, car loan distribution fee, co-lending income and insurance income. Our non-interest income was INR319 crore in nine months FY ’25, up by 20% year-on-year, supported by co-lending fee income of INR112 crores.
Net car loan origin fee of INR72 crores and net fee income from insurance of INR39 crores. We have scaled our car loan origination network within a very short period and now a meaningful player in this segment with in the of across 811 locations in 31 states and Union territories and 12 partner banks and financial institutions. Our car loan origination in 3rd-quarter FY ’25 was INR2,972 crores, up by 16% quarter-on-quarter and 5% year-on-year. On the insurance distribution front, we are tied-up with 18 insurance companies and expected to generate more than INR60 crore of net fee income for FY ’25.
We anticipate this strong foundation will sustain the impressive growth trajectory of our loan interest income. As a result, our total income for 3rd-quarter FY ’25 are up by 30% year-on-year and nine months FY ’25, up by 28% year-on-year. Our branch network expanded to 1066 branches in 3rd-quarter FY ’25 and employee base increased to 11,02, up by 13% year-on-year. We opened 70 new branches exclusively for our Microlab segment.
Following our significant investment in-branch expansion over past three years, we are now focusing on bringing more efficiency and productivity, effect of which has already started to reflect in our cost-income ratio, which improved to 58.3% in 3rd-quarter FY ’25, down from 64.3% into second-quarter FY ’25 and down from the peak of 17.5% in 4th-quarter FY ’25 — ’24. We expect further reduction as we see benefits of operating leverage accrue in coming quarters. As a result, our pre-provisioning operating profit increased significantly INR189 crores for 3rd-quarter FY ’25 and INR480 crores for Nine-Month FY ’25, up by 46% year-on-year and 39% year-on-year respectively.
As regards asset quality, our credit cost for 3rd-quarter FY ’25 was at INR18 crores, a modest increase of 4.8% quarter-on-quarter, whereas for Nine-Month FY ’25, it declined by 6.5% year-on-year in larger pees at INR82 crores, which translates to 0.7% of loan book. Gross Stage 3 ratio stood at 1.7% and net Stage 3 ratio stood at 1% in 3rd-quarter FY ’25, an improvement of 40 basis year-on-year in both. We continue to maintain healthy PCR on a Stage 3 loans of 39.4% in 3rd-quarter FY ’25.
As regards capital and capital education liquidity position, we continue to maintain a strong liquidity position of more than INR2,000 crores through cash-and-cash equivalent and undrawn credit lines across CGCL and CGHFL. During 3rd-quarter FY ’25, we got new credit lines of INR1,025 crores sanctioned for CGCL and CGHFL. Our capital adequacy ratio for both CGCL and CGFL remained strong and stood at 22.9% and 29.3% respectively.
As regards profitability, our efforts over past two, three years to diversify our business and income stream is now yielding results as seen in 3rd-quarter FY ’25 performance. Our consolidated net profit saw strong increase and stood at INR128 crores for 3rd-quarter FY ’25, up by 88% year-on-year and 32% quarter-on-quarter, whereas our profit for nine months FY ’25 stood at INR301 crore, up by 53% year-on-year. We reported an annualized return on average asset of 2.8% and annualized return on average equity of 12.6% in 3rd-quarter FY ’25, up by 0.5% and 2.8% quarter-on-quarter, respectively. We expect this to continue to improve going-forward.
Our technology, our technology initiatives, including our in-house developed LOS, Flex Cube, LMS, sales app for customer onboarding, Collect Express app for managing collections and Capri Grahak app for customer engagement are now extensively used by our sales and collection staff for managing the customer loan journey and end-to-end digitally and is helping them further improve their efficiency and productivity. We continue to refine our data science-based business rule in general, underwriting score cards, which will help us with better customer risk profiling and selection and offer risk-based pricing thus improving our login to sanction ratio.
This in combination with our detailed collection dashboard for real-time monitoring and AI ML models for identifying real delinquencies will help us monitor collection efficiency and asset quality. Lastly, our focus on real-time system and driving improvement in TAT enabling us to meet our customer expectation faster through hassle-free and timely disbursement digitally.
As regards ESG, Caprin Global has established a robust ESG framework, aligning our policies with international standards and ESG guidelines. During the quarter, we also secured S&P Global Corporate Social Sustainability Assessment score of 49, exceeding the industry average of 30. On the financial inclusion parameter, we secured a score of 75, ranking us in the 99th percentile of the industry. Additionally, we published our business impact report because of progress highlighting our achievement in financial inclusion and sustainable growth.
With that, I conclude my opening remarks. We shall now take questions.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Satya Prakash Bande from Haitong Securities. Please go-ahead.
Satyaprakash Pandey
Hi, am I audible?
Operator
Yes, please go-ahead.
Satyaprakash Pandey
Yeah. So my question is the MSME AUM presented includes small-business loan and micro loan. Could you provide a detailed breakdown of this AUM? Additionally, why has the MSME loan book not grown at the same pace as other segment? What measures are being planned to enhance its growth? Yeah, this is my question.
Rajesh Sharma
So as regards this — our MSME, which comprises of MSME secured by collateral, small-business loan and also Microlab. So small — MicroLab is only INR157 crores. Small-business loan is about INR42 crore and MSN is about INR4,769 crores. This segment will start showing better growth in year because we’ll be adding more branches here and our MicroLab, which is now 70 branches will also start adding the numbers. So a combination of both addition of the branches and more focus on Microlab now going-forward in terms of the growth and the growth will be back-in man MSME segment also. We will start showing the growth next year onwards.
Satyaprakash Pandey
Okay. Thank you. That’s really helpful. Thank you. That’s it.
Operator
Thank you. The next question comes from the line of Kusha Agra Goyal from CLSA. Please go-ahead.
Kushagra Goel
Hi, team. Thanks for taking my question. Hello.
Rajesh Sharma
Yes, you’re audible, please go-ahead.
Kushagra Goel
Yeah. So congrats on a good set of numbers. So I have two questions. One is just around your gold loan portfolio. So I’m seeing that the LTV is quite high around 71% 72%. So just wanted your thoughts regarding this? Is that a concern area? And what happens if case gold loan prices drop by? So if you could just give some color regarding that.
Rajesh Sharma
So gold loan portfolio, if you see the maximum permissible LTV is allowed 75% and the competition also all the LTV in the range of 71% to 75% only. Being gold is very liquid. I think these are very healthy levels of the LTV level. And even with the auctions and the NTE cases, we are able to recover fully. So these are very safe LTV levels and across industry, everybody operate in these range?
Kushagra Goel
Okay. Okay, sure. And my second question is regarding your borrowings. So can you just tell us what is the mix of fixed and floating-rate borrowings? Also, if you could share your expectations as to how cost of funds will move-in the next three, four quarters and if there are any plans to diversify your borrowings? That’s all.
Rajesh Sharma
Our — all the borrowings except less than 5%, all the borrowings are on the floating basis. So when the — and similarly, we are able to pass-on any floating-rate increase also to our customers. So our borrowings are by and large are on floating basis.
Kushagra Goel
Okay. Okay. And do you expect NIM to have topped out in this quarter or how do you see that moving?
Rajesh Sharma
We expect interest-rate cycle should remain — not go up at the base, it might remain here for some time before it starts falling down again, but we don’t expect the interest-rate to go up.
Kushagra Goel
Got it. Thank you.
Operator
Thank you. The next question comes from the line of Akshat Maniar from Anand Rathi. Please go-ahead.
Akshat Maniar
Hello, hi, sir. Thanks for the opportunity. Am I audible?
Rajesh Sharma
Yes.
Akshat Maniar
So my first question was on the line of co-lending AUM. So what are your expectations going-forward, especially it’s seeing very good growth momentum? And what are the current structure arrangements of the co-lending that you have with the banks.
Rajesh Sharma
So we have a co-lending partnership with all our three products, MSME, affordable housing and the gold loan. And we are working with almost nine banks where different products are partner with them. Currently, about 18% AU is under co-lending and we should be able to maintain at that level. So co-lending will be in the range of about, 18% 20% kind of going-forward as well. And banks are quite comfortable. So I think these limits which we keep getting, we will see whether we can increase the slight bit, but even though these are very healthy level if we can maintain it consider our capital and our ROE is very, very-high when in the co-lending segments.
Akshat Maniar
Okay, sir. And my second question will be on the lab segment that you just entered. So what are your key takeaways from this segment? And how do you plan to use it to basically broaden into the rural areas.
Rajesh Sharma
So there are two aspects of it. One, we launched 70 branches to start the micro lab because we are always doing MSME. The next level of expansion will — our existing MSME branches which are in the range of INR150 plus. Within that, we will identify which are the branches we can start the co-lending at this micro lab also. So those branches, we just need to put the team and we’ll save the cost there. So next April onwards, we are going to make a plan to start Microlab those branches besides other expansion in the Microlab, the advantage here is the yield is good.
And within our ecosystem of overall superory level, technology in-place, cost basis, cost-income ratio, it will be much better. Cost will be lower when we combine it with our existing MSME branches. So overall, it will fit into our scheme of things of the collateral lending — lending to those customers who are not serviced by the bank. So we believe that this will be next four to five years will give us a good growth and also a — is a high-yield product along with the security.
Akshat Maniar
And sir, lastly, if you could provide some insight on the competitive intensity and the macro-environment that we are seeing a slowdown in the sector.
Rajesh Sharma
So if we see competition-wide, I think retail lending business will always have a competition. It has a competition yesterday, it is going to be tomorrow also. But this will drive on efficiency, operational efficiency coupled with the backed by technology and data science capabilities and that is where we are investing. Only way to create the difference is how do we are able to achieve the better turnaround time, how do we are able to predict the better asset quality, how do we automate the lot of processes, so we reduce the dependence on manpower and also requirement of the people are gone down, productivity is higher.
So with all these measures, I think within the competition also, we should be able to do well. If you see our trend, our growth is coming and now quarter-after-quarter if our cost-income ratio goes down, you will see significant upstick in the ROE as well.
Akshat Maniar
Okay, sir. Thanks for the question. Thanks for taking my question. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of from ULJK Group Financial Services. Please go-ahead.
Sohail
Good afternoon, everyone. Thank you for this opportunity. And I wanted to ask a question about what’s happening at the ground level with the loan collection officers like perhaps you could give some light on the attrition rate over hello hello. Am I audible?
Rajesh Sharma
Yes, yes. So your question is related to the attrition in the team member of the collection team. So our collection team is quite stable in the sense on-the-ground and because we have a good collection efficiency, good technology and also the incentive plan. So it is less than 20%.
Sohail
20%, I see. And I had another question regarding the construction finance book. So lately, we have seen a huge growth in this segment. But previously, we had faced a lot of defaults in this segment. Any particular steps you are taking to see this from happening again?
Rajesh Sharma
Yes. So first of all, our construction finance is also done in a very retail way. Our average ticket size is INR13 crores on a disbursement basis out. And if you see our INR3,700 crore portfolio is spread across 275 plus customer. It is not that we are giving INR200 crore, INR300 crore sanctions. Most of the sanctions are less than INR25 crores. So these are smaller project plus in any case, real-estate sector is doing well, demand of housing is doing well. So we are seeing that sales are happening and this segment is offering a low operating cost, a good profitability model.
Now it’s more than 12 years we are doing it. And even including the few write-off, our yield is very, very-high, even though we account those losses. And hardly we have seen any delinquency in collectively, in last 10, 12 years, we don’t have seen the NPA more than INR250 crores when we would have land more than INR12,000 crore. So it is a very strong stable team we have and very deep ground understanding we have.
Sohail
Perfect, perfect. That answers my question. Thank you.
Operator
Thank you. The next question comes from the line of Kapadia from IIFL. Please go-ahead.
Shalin Kapadia
Hi, sir. Thank you for taking my question. So I only have one question. So we have heard from some of the competitors that they have started offering gold loans as EMI-based product with monthly AMIs. So is this something that you have also heard from regulators and is mandatory to apply? And also if it is so, then how does it impact your growth or asset quality?
Rajesh Sharma
Thank you. So gold loan always have various schemes, including monthly repayment. So that is not something new. Neither there is any direction from regulator, however regulator never say what should be a product. Regulators always say your compliant R, A, B, CD, how you divide your product, they don’t guide us, so there is no instruction or circular on that as such.
Shalin Kapadia
Okay. Thank you, sir.
Operator
Thank you. The next question comes from the line of Rohit Shinde from Market Memories Wealth Advisors Private Limited. Please go-ahead.
Rohit Shinde
Good afternoon, Rajesh. Good afternoon, Team Capri Global. Am I audible?
Rajesh Sharma
Yes, sir.
Rohit Shinde
Okay. So sir, my first question is with a target of INR30,000 crore AUM by FY ’27, what strategic initiatives are being from prioritized to achieve this milestone? Can you share your guidance for asset quality and profitability as well and which segment or geographies do you expect to drive growth in the near-term?
Rajesh Sharma
Yeah. There is no car that we are not focusing growth without mindful about the asset quality. Asset quality, we intend to keep net NPA not more than 1% and that the philosophy will continue to do. As regards the growth from there it will come, the growth will continue to come from our existing segment of gold loan, MSME, Microlab, construction finance, affordable housing. Now for the further growth, we’ll add few more branches. And with that, I think from INR20,000 crores to INR30,000 crores reaching, it should not take us a longer time. You can — you can guess the kind of growth we are growing, it should be achievable. More than that market over that opportunity, there is a huge gap still there and there is a big addressable target market in these segments.
Rohit Shinde
Yeah. Sir, the second question is, as you transition towards becoming a technology-driven NBFC, can you share some recent advancements or digital initiatives aimed at improving customer experience and streamlining — streamlining operations. How is technology being utilized to expand the region to rural and underserved markets, sir?
Rajesh Sharma
So I wanted to say that we are indeed a technology-led NBFC, while we operate in the segment, which are in an informal segment, but our all processes are digitized and automated. So even in the gold loan, I just want to take two minutes. When the customer walk-in our branch, he has to just bring the gold and no paperwork is required. He is onboarded with his Adhar OTP or face recognition. His is verified and once he offered the ornament, we do the weight of the ornament and check the priority, ask the customer to download our app and customer is given the colored photograph through the app of its ornament along with the weight and the most important terms and conditions, including weight of sector stock. Once you say he is agreeable, whatever scheme he wanted to choose in. We send in the OTP-based agreement, which is signed through OTP and then amount is disbursed in his bank account or the payment ballot or wherever he wants. So there’s no zero paperwork involved even in a INR30,000 loan taken by a person who don’t know-how to sign. So that way we have gone very deeply and because of this automation across affordable housing, MSME and everything, our — our growth is doing better, we are doing better than the competition plus our data analytics team is able to now predict the customer behavior in terms of the — not only for the repayment, but also what kind of customer target in which category we should we should service. So definitely technology is way forward and this is not a one-time. This is an ongoing basis. We have set-up a tech center, which is in Gurgaon. We have 125-plus engineers and 25 data scientists. And our data scientists are across Bangalore, Puna, Bombay and Delhi. So we are building that is going to be regular feature. This is not one-time. So we keep enhancing our offering for our team and our customer. And going-forward, our turnaround time, which has come down in all the segment will continue to outsmart, outperform the competition as well as it will improve the productivity, thereby bringing our cost-to-income ratio much lower is a of better productivity.
Rohit Shinde
And sir, in your goal to develop a INR1,000 crore loan book in rooftop solar financing, could you elaborate on your collaboration with credit fair, which we did previously, sir? And how will this partnership enhance the speed of loan approvals and disbursements within the solar financing sector?
Rajesh Sharma
So INR1,000 crore AUM is not the target for one year, INR1,000 crore target will be in the period of next four year or so, and it will be governed by the government subsidy scheme. So-far government subsidy scheme will remain. There will be a strong demand for this product. Having government focus on the renewable energy and where the subsidy is up to 75%, I think there is a great demand here. We have now launched the pilot product and now we will scale this in the coming year and we will see how fast this growth — so this is a part of the FSME in any case.
Rohit Shinde
And sir, finally, a small question is regarding your advertising and marketing expenses. So what was the budget you had for this fiscal year and how much is it remaining? And is there any going ahead for the next few months or next year? Any basically colour you can throw on the advertising and marketing expenses? Hello?
Rajesh Sharma
Yes.
Rohit Shinde
Extremely sorry.
Rajesh Sharma
So we have a budget about INR15 crore rupees for marketing, which comprises of a radio, which comprises of holding which comprises of newspaper, which comprises of the media. So combination of this INR15 crore is our budget. And till nine months, you already spent about close to INR10 crores.
Rohit Shinde
Okay. Thank you very much, sir and wish you all the best. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Dr Pradeep from Royal Global University. Please go-ahead.
Pradeep Kaushal
Hi good afternoon to the finals hello.
Rajesh Sharma
Yeah good afternoon please go-ahead.
Pradeep Kaushal
Yes. So in the beginning of your — of the presentation, you told that you are going to focus less on the opening — opening the branches, rather you will focus more on the business. Can you elaborate this particular point you made in the business.
Rajesh Sharma
So now we have 1,066 branches. Our branch expansion will happen across MSME, affordable housing, gold loan and Microlab. And when you want to grow, the growth will come, the growth from existing branches and also entering the newer market. So next year plan, we will plan by March and then from the June onwards, we’ll start adding the branches. So-far, we have not firmed up how many exact branches we’ll be opening, but definitely about 100 to 150 branches we intend to open, but that plan yet to be firmed up in exact numbers.
Pradeep Kaushal
So what is supposed from — you are spoken by users now that you are going to open maybe 100 to 200 branches per year in the coming — for the coming years.
Rajesh Sharma
So next year, yes, next year, we are going to open anything between 100 to 100, but we make our in the month of February until mid-March will finalize when we keep our meeting with all the business heads internally and go to the Board for that. So that exercise is still pending to arrive at exact number. But yes, every year if you see the past track-record, we kept adding branches year-after year.
Pradeep Kaushal
Okay, okay. That sounds. And I want to know that what is the — what is the reason behind such a kind of a strategy and how it is going to impact the profitability in the future?
Rajesh Sharma
So branches, when we open, we have to grow, then we have to add the more branches in terms of the newer markets and the branches, depending on product-to-product, initially they take some time to breakeven, some MSME branches take three to six months and gold don’t take about 12 to 15 months. And after they start contributing and they start adding to the profit.
Pradeep Kaushal
Okay, okay. Thank you so much. Thanks for the answer.
Operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. As there are no further questions, I now hand the conference over to the management for their closing comments.
Rajesh Sharma
So as we look-ahead, we see significant market potential across all our business segments, MSME, microlife, housing, gold loan, construction finance and see our continued deliver industry outperforming growth while expanding our spreads. We will keep investing in artificial intelligence and data science capabilities and empower our sales staff with the latest digital app, which will help them serve our customer faster and with better cost-efficiency. Given all our book is secured and granular, we feel quite comfortable of keeping our credit cost and asset quality under control. On the liability front, we continue to deepen our lender relationship and feel comfortably of securing additional credit lines with a better pricing. We remain confident of achieving our earlier guidance of INR30,000 crore AUM by FY ’27 and delivering mid-teen ROE by then. Thank you, and we look-forward to seeing you all again in 4th-quarter FY ’25 results call. Thank you. Thank you. On behalf of KPRI Global Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.