Q2 2023 SoundHound AI Inc Earnings Call
Ltd.
Earnings Conference call.
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Scott.
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Ladies and gentlemen, good.
Good day, and welcome to the spend and I support the financial limited due to a site we need three earnings conference call.
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I now hand, the conference over to Mr. <unk>.
M D N see you thank.
Thank you Andrew what do yourself.
Oh, Thank you very much guys unbelieving to all of you. Thank.
Thank you for taking time out to join the call.
Thank you for showing interest in our company.
Friends, all the possible quarters, we've been trying to steer us towards the box that we had articulated for the organization through the vision 2025.
Suffice to add we are moving on the right path.
We have received tremendous support from all of you all our stakeholders.
As lenders shareholders employees, and our customers, thus, giving us the confidence of achieving what we set out to achieve by FY 2025.
Yeah.
First quarter, two was a quarter of consolidation.
We are measuring our steps and take important calls to ensure that the next level of growth for the organization is built on a robust foundation.
With this let me move to the portable device.
While the results have been uploaded.
And I know there was some technical challenges.
Challenges are.
On the site.
Yes, he'd grown up loaded I think slightly more than an order back in and if you also if theres more or less Dan but.
I think you talked about adults and brief highlights I'm happy to take questions now.
The model.
So.
While the results have been uploaded I would want.
We could take you towards the scene.
Let me start with the first point, which is on ratings.
One I was reading was ratings watch until quarter one.
Also the various developments in the operating environment.
All the three agencies have talked to the rating watch.
Automating small order.
India ratings. It is a stable rating watch with negative implications Kris.
Christian we are stable from ratings watch developing implications and equal.
A minus stable from ratings watch with developing implications.
This was one of the highlights.
All of the water.
The second highlight yeah, I wouldn't want schools just build on this.
Which is not borrowing story.
One of the key challenges that we as a management team had was to start the morning cycle from our existing and new lenders.
We'll get that other piece that was a single important tasks that we had come up with a lot of sense more so because this is a primary driver for fueling our growth plans.
We have made the right stock.
We've on boarded and traditional lenders who knew.
All new first time Linda.
We bought them during the quarter.
All of them at the gross.
Against.
155 crores in quarter, one and 398 crores in quarter four of FY 'twenty two.
The marginal cost of borrowing has decreased from 14% in Q4 of FY 'twenty two.
You can point to 1% in Q1 of FY 'twenty three.
Cool.
12.64 in order to off FY, 'twenty, three which is the last quarter or so.
14% coupon pinpoint 1% to $12 six 4% this quarter.
Banks and capital market.
Mix is 58% banks.
We've not passed.
Through various interactions with all of you you've kind of articulated that we would want to take this number.
Our numbers starting with seven.
So we are on track for that.
Apart from this.
Liquidity.
Position was comfortable with 964 gross cash balance as of September 30th.
In the quarter, many Linda doors open for us.
Quarter, three horse equal promise.
Okay.
On the financial performance, our pupil does that sort of presented here with.
Total income our total income this quarter.
311 Clos.
This is an increase of 21% compared to Q1, we added close to 159 gross.
On the net interest income.
The net interest income is 219 gross and increase I was talking five 2% compared to Q1 net interest income up 162 gross.
Hi.
Yeah.
In Q1 was 16, 4% in Q2.
It is 19, 5%, which is an increase of 310 bps compared to the previous quarter.
I'll I'll stop borrowings.
In the quarter.
Yeah.
Oh somebody was 11, 2%, which was 11, 8% in the previous quarter.
She is a decrease of 60 bps compared to Q1.
Profit after tax we have declared as 55 Cros.
As you all have had in the first quarter, we had declared at the 120 cause of loss.
On the business side.
Let me start with the various.
Elements, starting with member acquisition.
All of you are aware and we've repeatedly said that.
Our forecasts.
Our growth strategy will be driven by the member acquisition story.
We acquired 123 lakh customers during the quarter, which was a growth of 16% over the previous quarter.
We've said that our growth story will be customer acquisition and hence we are building the blocks, both culturally and identifying pockets of world So far that our plants.
On the disbursement side, we disposed 1391 cross.
As against.
Yeah.
1320 crores in the previous quarter, which is a growth of 5% and if I look at on a Y O Y which is quarter two of the previous year. It was 11 50 equals Y O y growth of 21%.
On the E M. Our book has increased about 5% from the previous quarter.
This is a trend reversal since the past few quarters, we had a declining you them.
Thanks.
On the portfolio composition, because this is a very important.
Our portfolio composition. All of you are aware comprised of Blue books, what are the three books.
We'll stay put or 'twenty, one and pre March 21.
Our book composition has changed from March of 2022.
The polls stay put or 'twenty, one book, which was 48% and the reason why I'm mentioning the post April 'twenty. One book is that this is a new book first took over at all.
It has.
And I Wonder why you would have seen the numbers, but really spell out the numbers in other portfolio is behaving well.
Because of your book So it is in line with what one would expect of a distribution always like spun them also.
The post April 'twenty, one book, which was 48% in March 2020 to begin 70% end of quarter, one and is now 82% in quarter two.
So the post Covid soldiers to book is 82% of our total portfolio.
The new portfolio as I said is exhibiting the collection efficiency and hence assumes criticality.
By end of quarter, three people won't be upwards of 90% and onward.
Yeah.
We have a book off as I said now of 5782 Cros.
Of which 4740 crores, which was 82%.
He is giving us.
Net collection efficiency of 97, 5%. This is slated to improve over the next couple of quarters.
The pre March 21 book, which is 1052 gross which is 18% of the overall book.
He's giving US 88, 7% net collection efficiency. This is excluding I guess.
The rest are available post write off.
Taken in Q1 is showing strong.
Strong asset quality will continue to pursue quality growth.
Friends you are aware, we've articulated in various forums sort of desire to strengthen our overall portfolio.
Happy to announce that we are at 88% at all over the portfolio now has increased to 88%. We will continue this journey because that is where the tier 345 or rather the bottle of India, which we have already articulated.
Is very much a part of our vision 2025, where we plan to grow.
On the collection efficiency side.
Our total book, which is the entire book he irrespective of the splits.
Has or is delivering delivering us a graph collection efficiency and growth as you are aware in Cogs, yes.
Gloss collection efficiency of 101, 3%.
And net collection efficiency of 93, 3%.
The provisioning position, we are adequately provisioned.
Potential recovery upside for them, but I don't know if book is a plus.
We've recovered 15 gross number it's not portfolio in the quarter in the previous quarter. We will continue to pursue this for the next two quarters.
We anticipate reasonable upsides in this.
And we have clearly articulated plans on.
How to engage with these customers and bring them back into the mainstream.
The consolidated G N P a.
Is 747% the net NPA is 396%.
The total provision that exists on the book is 303 calls which is pipeline two 3% of the event.
On the balance sheet.
Net worth of the company's 2000, and 861 67 Cros.
With a capital adequacy of 45, 3%.
Our liquidity position remains strong.
As on 30 September as I said earlier, we hired a cash and bank balance of 964 crores, which was almost equal to four forex all of the required monkey liability.
We have a diversified borrowing profile and further deepening our relationships with new and existing partners.
So to summarize.
And the way forward.
We are moving as per plan.
Under his confidence disbursement member acquisition portfolio quality, all moving as per our planning in the right direction.
We anticipate clear roles and all of our business.
<unk> has a great distribution and a very good team of brand stuff in the field and in April .
We are proud of them and like in the past we are confident that they will build a solid story on boards our vision 2025.
We are strengthening the team at agile how does he near and Middle management.
We have hired fights he xa levels, joining us a lot of water.
I will give you more update on the People's Party in the next quarter.
Okay.
Similarly, we are in the hands of the board without additional cobalt illustrious board members. Mr. Arnie Maestro Unparliamentary Indians he of Oriental Bank of Commerce and Mr. Neil That's a little more regional T O Southeast Asia, and Singapore and the children. We are strengthening our board also to ensure that we.
We moved towards a more professional setup.
One strengthening the organization, we added 300 loan officers during the quarter given the trajectory of growth that is required we are planning to add another 752000 loan officers in the current quarter.
We continue to make progress on various technology initiatives, which have been highlighted on yet a risk audit and control teams are being strengthened as we speak.
Thank you very much for the patient hearing.
I will repeat.
Very humbly, what I said in the last call.
We are playing our best much and this is a cricketing. Portland's example, we're playing it as much and not a b 20.
We are building the organization well.
Our task will deliver we remain focused on our goal which is vision 2025.
Thank you once again I have the management team with me and get ready to take all the questions.
Thank you very much guys I'm over to you.
Thank you very much.
We will now begin the question and answer session.
Anyone who wishes to ask a question.
And one on the telephone.
If you wish to remove yourself from the question.
Tom.
Participants are requested to use.
Well asking a question.
Ladies and gentlemen.
The question queue assemblies.
Reminder, to the participants.
Anyone who wishes to ask a question.
At this time.
The first question is from the line of.
From <unk> capital. Please go ahead.
Yeah, Hi, do me about.
Yes, yes, yes.
Oh thanks.
Congrats on.
Some sort of numbers.
Just a couple of questions all right.
I can see a pretty good.
Thank you Mr Shao.
It is not coming to you now.
Is it better now yes. Thank you yes.
So they can see the sequential jumbo the improvement on the margin trajectory site Oh.
Which is somebody who you don't put into us who what when where how do you see no blending out to me in the coming quarters, because if I remember correctly, you had been guiding but.
But it did cause some political margins. So you see that numbers to come down or this will be the Dubuque logically you looking out for.
Okay.
Hygiene Nish, Yeah, I have all she showed me well.
Isaac niche here.
I shouldn't so a 13%, yes Ah is oh the name Oh, we have discussed this last quarter and odds are guidance was that you know when we are looking at names to you know be north of 2.5%.
Daniel.
So this is the new project three years since we did the borrowing mix it was a good signal.
Significant b and expecting it to continue we should see similar kind of margins going into those right. That's.
That's right.
Yes.
Just to give you a color G. Ganesh. We moved then you ought to be a framework on the first of July .
Where are we in.
That age to 24%.
With the LIBOR rates, which have been going up and there is a thought about this thing we've been or rather we have increased our rates by 1%.
More and we intend to stay put now for Oh, you know for the next couple of quarters. So this is more in line with the market. So the reduction in the borrowing rate has to be looked at in the context of what is happening in the market and Oh, you know, obviously harder or reach out to the and the support that we're getting from the windows.
Yes.
I missed one so basically we have one big swing because of oneself musically, you're coming down, but it's moved up and that is basically what you can do the math right.
Correct Yeah.
Okay. So it can be Oh, no obesity that it'd be a sequential search on the O C suite as well as on.
The order book that collection of frequency is all true.
But from Baby food Tonight the viewpoint.
So this is Oh, no order book, I'm, saying or what is really a big boost to preclude doing this pretty stronger so how do you see that Brendan.
Give some more color on it on the six T as the little dust collection efficiencies right.
So let me answer this more holistically and we are ready to have people take a detailed questions here.
Oh, there was a time when we were reaching out to the customers because there was some disruption on the data side and NCR, but one we collected a lot of areas. So you can also the pasta results have to be looked that in context. The current result also if you see the gross collection efficiency all the book as I mentioned somewhere in my comments.
Because that 101%.
The point you are making is correct. It has dipped a bit but then it is a temporary phase because oh, we have been kind of a you know doing multiple we've been doing managing multiple priorities from a customer point of view and the quality of customer point of view we are complete.
We engage with all our customers and a few blips here and there including flows if you remember the last time around we had said that while we will we might that we might see a few flows here and there but overall the quality of the book is now reasonably under control more Soviet every quarter you know when you start when we see the customers will attrite, because they would have expired.
Their contracts over 24 months with whatever data is left at 82% on the new book end of quarter next to you know it'll be probably with a number of stocking at night I think you know we should continue to see both in percentage terms and in absolute terms you know improvement.
So is it fair to see Oh, Oh, no considering that would all your <unk> would be one well every 21 because he.
Oh got it got it okay.
It should C O D agreements of the Coty is is it fair to assume that collection of agency pools, when do when would be a new benchmark to keep an eye on it.
So any benchmark forget a pre or post a micro finance hasbro or should deliver upwards of 98.5% minimum.
So that's a number that we're targeting that the books are stage any number that starts with about the double line is what we aspire to cool Ah I think you know we should receive those days are very soon you know when we hit.
Hit the quarter four or towards the end of quarter four so you know.
Micro finance book, a quality book should deliver a 98.5 dollars 90, 999.5 kind of a number.
So this is pretty clear secondly, I'm supposed to just quickly if I can get.
How the moment has happened.
Or do you really explain your mutually mark but.
So if I could just get a woman dog, how opening sequentially, how do we bring disbursement and deep remember this happened and if there is a need I talked during the quarter. If you can give me that kind of number that would be really useful.
There has not been any AR write off so there is a group of companies.
We have a monthly payment so the book.
And and the average maturity of the book is roughly about a 16 months or so so that's our that's how the book kind of runs down although I guess it must make part of the quarter has been 13 91 gross.
Uh huh.
And most of it was the.
Towards the end of the quarter and Oh, as a better let it impact our admission.
So the balance would be already agreements on it it seems that he is not ourselves, but that's okay. Perfect. That's really useful thanks, a lot and all of us.
Good evening language English.
Thank you.
Okay.
The next question is from the line of.
Sure.
Please go ahead.
Yeah, Hi team congratulations on a good set of numbers I just have one question. So are you still maintaining your disbursements are good for the current Bill if he tells me one under close yes.
Because in a just a first hardly ever delivered.
Hum.
Around 2700 odd crores, so H M has been really good.
Let me explain I go back to what I said at that time and I'm just repeating what I say, we said in the first quarter. Our rebuild is about it's well under two putting under across the second quarter. We bought 14 under 1500 cross quarter three will be 2500 gross quarter, three will be 3000 and find ourselves.
This was the narrative when this was the quantification of the you know the plan that we had and we are sticking to the plan.
Okay, great. That's it for me. Thank you so much.
Thank you.
Thank you.
The next question is from the line of.
From Investec. Please go ahead.
Alright, thanks for that portion of diesel so two questions lets me Oh your margins have now reached a level that's.
Great.
How should we think about how do we what is the operating leverage.
But again over the next couple of years.
Uh huh.
By the way that you expect from this business.
Yeah. So he would talk more from a perspective of your northern normalize there'll be a U or you know maybe.
When we have fully are fully in a b, maybe if youre talking about couple of years down the line we are.
Aspired to be in the range of four to four and a half dozen kind of ottaway.
When the leverage and everything will play out and that's the kind of the way we are looking at.
Uh huh.
Yeah.
Hello.
They should do that answer your question.
Yeah.
Okay.
This is pedro.
Yep Yep.
Your line is.
Yes, sorry.
Just a follow up on this so the agreement been okay. How do we then come from Micha Ben.
Because I think the only lever that you have left from this.
There's quite a bit of commentary on the Opex Opex Dewey.
I think there are a few other lever, which we are not talking about one is we do you expect the the coastal borings also to come down for that one too.
If you look at they eat presently they ended at 19, one 5%, but not ideal basis. If I were to look at they eat it should improve our at least another 100 250 basis points a given that we are we aren't coming out of Covid and there is a book which has oh.
Uh huh.
So some a bit of Oh gosh, you know overviews of whatever it as this book you know kind of winds out your ear tube stocked employee having said that shut up kind of initially coordinates commentary that you are not new disbursement will be at a higher rate of interest.
Etch tool disbursement is going to be at 25% rate of interest and they should start playing out by Q4 and should have a positive impact on the on the <unk>, which will also drive you are how do we.
Sure sure and second question is on the quality, particularly on the collection efficiency on the newborn care. They can make sure we didn't do that all right.
5% and I think on the older book or the collection efficiency gets degraded quite sharply in this quarter was about what those are.
Because on the Newbuild, because sometimes there's dominion stable industry I don't need to go have gone up so how should we think about the oh.
Great causes we've stood up 4% N P and Oh My Oh.
I believe it's about that.
It may lead to higher incremental cost in coming quarters.
How do we think about that number and how should we also think about the 97 point type of inspection of against you in the new book.
Yeah.
And suddenly they may be looking at these days, yes, there has been slippage, but this should not definitely is that getting to you know losses are the engagement with the customer is that of between $1 90 book, If I look at 95% of the customers have been engaged with that and have been more than one installment.
During the quarter, so clearly, our and and Uh huh.
Earlier in the call. We have explained that we are bringing in more Moorefield force underground, which will help us do some forecast rice underground to address the engagement issues are more to see the cost that might have shown in tank. It is does that mean you need to you know our ability.
Engage with them for a while you know better outcome and they should start playing out from this quarter onwards. So our strong belief is that are you know we will you will be able to in Peru up on or whatever the marginal slippage is that have happened in this quarter.
And in Q3, you should start seeing a much better kind of outcome for them from the book call industrial supplements, though on the dish. If we presented it and not a slate 13, if you'll see where all of US here. Yes. There has been a slip in the 90 plus of which the new.
Contribution in the fresh look they did about two 9% rest everything is all booked well I'm not saying, there's a problem that the order book the order book or are the customers, who are very well engaged and that's the reason why the reward on hang onto that portfolio. If you see the other other stacks, which is stage one more than the current one contract.
State School there we've seen some improvement one can argue that there has been a slippage from there into a greater than 90 at Shaw.
From but from a pure play a quality of the portfolio and the customer and their engagement.
Engagement levels or the customer I think we are comfortable and we will hold onto the 40 that we kind of.
When we decided.
If I get to paint the write off we were clear that the you know the set of customer who we thought well, it's not one or two years, what we decided to write off and the others are customers throughout various analysis and our engagement and file for you. The report they are fine. So you know so these flows here and there.
We will have even still see them between quarter, three and quarter four but from a well from a you know a real damage perspective, I'm I don't think so and also we have maintained what we said about cost out of them.
Sure.
You should not expect any elevated grades cause oh.
From the print book.
No. So we had we had said that the new work or on a standalone minus the cooperative remember the Q4 results that we presented these subjects will undergo per se because we wanted to be half of that and I'll use my intelligent guests. So on the new ballpark.
We are on the order book either way in order for a crisis. Because you know we are seeing that all of those customers have seen their end of their loans number two number three is from a provisioning perspective, we are well covered in terms of you know if I call. There was some slips work will happen, but overall you know I, we do not anticipate any.
Anything which would have happened or will lead to a toward efficiency that jacki meant that we had you know when we kind of walk the talk.
So to that extent I think you know we have work.
Okay slips that slips and flows given the nature of them. We have to we have pool considered out of that are as a company. We have are almost 90, 899%, which is a monthly book.
P D payment. So it is difficult for the customers to really Oh, you know move the reverse market once they really slipped and back to the talent that we have so that we are kind of at least Cuba was very very critical that we've kind of reasonably managed to a rig I think he will take your word.
The decline in that book you have lots of overall engagement levels I think we should be fine.
Sure sure. Thank you. Thank you that's it for me. Thank you.
Okay.
Thank you.
The next question is from the line of.
Please go ahead.
Yeah, Hi, Sir congrats on a good set of numbers.
One question on this.
E M.
With this program plus capital.
We.
Calculate collection efficiency on this 18% they visit hopefully around those 75 people, saying I mean, let's say if you could put some of the bookings.
Going by collection and.
When you have a blended collection open banking to me like 18% of the book should be around 75 to two question No collection.
And when I look at big speech to U S. H well, if you've got one before 20 Soc.
Sort of what is happening with this six limb girdle hopefully balanced book because all titles. So there's it could go could hardly anything.
So if you can help me with that.
Somebody come to reach them on this telephone call.
No because we pretty much put a physical site.
Yeah, Hi, Nisha, She's decided the collection efficiency under 18% book is 88 points in the tank and that this is the net AR collection efficiency.
Okay.
Yeah.
Hum.
Yeah.
Yeah.
Hello.
So that that's the number I mean, if that is what you were asking for 88.7% will be the collection efficiency on the on the old book. The the simple average is when you do do the disbursement on number four I mean, this will not actually give you the right.
Collect because not all book wouldn't have had any deals in the current quarter right. I mean, so collection efficiencies what was do you ER visit be against that how it was collected so as you go forward you will see this number you know kind of improving our in terms of you know because because the book.
Which has been this was in this quarter. It was a like a second was disbursed primarily towards the end of the quarter did see excuse and recoveries in the coming quarter only.
And just to give you some numbers on the lost Vanessa collection efficiency of that pretty much book is $88 seven and then Ross collection ever since he was 97, 2%.
So it has to be looked that in context of the of the narrative that we've been saying that these are the customers who are.
You know who are paying but with a lag and without obviously, giving them monthly a liability that they have become difficult for them to really clear also their core pre installed.
The pace is slow not what do you what I would want or not what we would definitely want what I think you know with Oh, you know without it.
With a declining book and we are able to hold you know 97, two on a gross I think.
I'm, sorry, if I T. I 80 airports seven closer to 89% I think we are there.
Okay. So I'll leave it there.
So far local guests who in this thousand good or okay, only a form that is stage three.
He used to be such a so so balanced find the gold.
I mean are you seeing this book as the states look or.
Do you see this with a record order Guido thing.
It's a really a repair and that's why I said you know so this is the reason why it is here. It means obviously it was not a regular book you know otherwise it won't be here, having said, which are it is not something that we can you know sort of kiss Goodbye, we have a great engagement with <unk>.
Each of these customers. It is just that there is no way they can jump from a greater than 90 into a standard hence they will take their time most of them will wait for their long tenure automobile why didn't they didn't make standard Daniel will kind of get them back into a you know a long termination you know so that's all it does so we'll have to bide, our time of and see you know how it.
Oh, there are individual loans that are now in parallel obviously this is the new address must remember that we are doing a regular book, which is like 82 will obviously keep on increasing in by end of the year I think you know.
The the.
Pretty modest 21 box will be a low single digit.
Otherwise well.
Just the last question are you more so is it safe to assume they'd be stage three assets are in absolute terms, Okay, which is one 2 billion is picked out at current levels or where you feel like you know there'll be some fluke I'll work from this well it doesn't go to book any tool that they need to be called into can.
So there's a nuance to the question you are asking and I will just start Tampa, maybe I'm not able to communicate I'm seeing the flows going to be there I'm not saying they will not be there, but the so called bad customer. If we don't think that as you know I'm just answering your question slightly differently.
There must rely rely be stressed start is that the institution will we be stressed we'll take a write off et cetera unlikely.
Now they are where they are and the way those 40 volt, they will drag themselves or our board at the end of the Daniela and that is all they will kind of exhaust themselves that is out of the bundle.
Got it great. Thank.
Thank you very much.
Thank you.
Thank you.
Yes.
The next question is from the line of.
For me.
Go ahead.
Thank you.
My question I'm wondering what is it.
Yeah.
Okay.
Sure.
Is it better now.
Yes.
Okay.
Just a couple of questions. One is what is going to get them into a benefit on cost of funds because they some of them are they didn't.
I know just just so.
That Oh said that'd be think that central part barring makes it he is coming from South Bay market.
Given by the short end of the call.
On the capital markets have tightened up.
After a week or do you see any change that liability going forward.
Actually Paul's question.
Okay do you want me to answer the question Oh, sorry, I thought you wanted to promote your other question on soup.
Okay.
Gordon.
And then when I have the <unk>.
Next question basically the liability makes our our stated position is that we would want to improve on the the exposure with the banks take a we would want to take it up closer to 75% are over what period of next a couple of quarters.
And the copier market exposure should be you know coming onto an already 5% vessel.
Having said that we do have interest even though the capital market transactions are if you'll see in the current quarter also there had been a center in transactions that we have done.
Yeah, you know.
But then when we look at micro finance space. The primary funding is being done by the banks given that we are losing a lot of a lot of book, which is a healthy food to meet the agri and the priority.
Farmers are the banks are they do tend to you know give us a good amount of support on the funding side and that's what we would want to you know leverage on the one thing, which which should also play out in the second half of the financial year, There's a lot many more.
No DTC transactions NDA transactions.
<unk> is a what we feel will help us improve the share of the banks.
Uh huh.
Yeah.
Sure no.
So second question is on you mentioned, maybe I shouldn't.
So in the opening remarks.
No the sportsman I'm coming from new customer somewhat have beauty.
Scott could you on the new customer acquisition.
Especially oh, maybe I'll comment though.
Well, that's all for me thanks.
Okay. So I'll give you the excuse I couldn't answer so what happens with EIS.
D.
As far as the new when you look at the composition of our micro Finance book.
Our current distribution or the portfolio that we have about 43% comprises of customers who have a relationship won't leave its funding up.
Another part of the 4% of our customers who have a relationship with this funding up plus one more of an answer.
And also.
This is about 67, 68%.
If you go back to the vision 2025, we have laid out along with the water fall back.
We had very clearly a setback.
Growth story will be customer acquisition leg.
We are considering they are we will be conservative on ticket sizes, we have still not there we will be.
Walking.
Our board is that.
But this 66, 67%, which is a single lender relationship and a one plus one relationship we as a company want to pick it at 80%.
80, 281% than one plus one plus one will be another 11% to 12% and then the rest would be a single digit.
Consciously on the field.
We are.
Reaching out and trying to dispose of more and more.
Customers, who are new to us.
Is it going to be a mix of the three books. Our books that we have said were clearly at a direction either pathetic singularly a relationship a one plus one.
V, where we want to John the existing base.
A little bit there ought have you identified about four to five lakh customers, where we feel that at some stage. They will have to they will more or we will have to let them go.
A new customer set of customers entering your books is always a good way to refresh our portfolio because they come with a new one day out obviously in geographies, where the liabilities are less plus they are more in terms of the where the J&J works. So this is a part of a conscious strategy.
And that's why 46 of the 100 customers that we have disposed of in the last quarter.
New customers too.
Or are new customers, who Oh, you know what those fundamentals.
We will continue this approach for the next.
Alright until FY 'twenty 'twenty, five and that's how we've kind of projected animals.
Yes.
Okay.
Sure.
And then last question from my side.
Uh huh.
Okay.
You you just explain the customer acquisition strategy.
The capital infusion happening in Q4, but youre in Shanghai.
All very favorable levels of babies either book now from the $6 an odd number in next one to two years.
So getting your question Hmm you know Shantha, we are at I think 1.2 X, one point or 2.1 or something and you think salto for we will be comfortable that as the leverage we would want to get it which is a long way off from obviously from where we are so that's what I wanted to ask or direct.
Uh Huh the gap as I said, the balance sheet and the lost codfish with Japan, the balance sheet as I said, it's pretty strong directionally. We are very clear in terms of which may be wonderful.
Yeah.
Yes.
So gearing are you also getting will be at a any.
Any number of Salto Forex is a good enough number for us, but directionally. That's the they think this is right until FY 'twenty five.
Yeah.
Okay, No that's fair.
Thank you so much for patiently answering the question.
Okay.
Thank you.
The next question is from the line of.
From JM financial please go ahead.
Yeah, Hi, thanks for the opportunity and congrats on a good quarter, you mentioned about Opex, how long before it will be again start adding branches.
Okay.
March also familiar question is Oh, sorry I'm in.
Yeah.
Oh, you're asking when will we start the new opening new branches that wasn't that yeah. Yeah. Yeah. Yeah. So there are I'm sure. It's hard to start to this quarter. This was and I go back to our maritime VSAT first two quarters will be consolidation. The group's forties talks now we will open we have already a plant open you know branches between Q3 and Q4.
All put together we have projected are roughly about 400, plus 160 560 branches all put together from now until FY 'twenty five non Florida branches de lever, we will have to ensure that you know we kind of open all of them.
Max Q1 of FY 'twenty, five four which will have to stop there for now so we would want to get the maximum run rate for every brand to kind of deliver and make meaningful contribution.
Their distribution Oh, sorry is the opening of new branches talked to this quarter.
Yeah.
Okay, and secondly, the staff cost is lower Q O Q or was it an idiot angle.
Got it.
What does that hearing them.
I mean.
So samira basically we had some wow some programs that we have run.
Between Q4, and Q1 are rich red having those one time payments and that's how my number for Q1 was higher.
But right now the number that we have is pretty much done.
<unk> standardized a kind of a cost employee costs.
Okay fair enough. Thank.
Thank you and all the best.
Thank you Sir.
Yeah.
Thank you.
The next question is from the line of <unk> Doshi from equities. Please go ahead.
Yeah.
Yeah.
Hi, Ted.
But you didn't congratulations on the quarter. Firstly my question was when the disbursements. So while you see in June quarter, we hit already Blogged includes 900 Corona Disbursements, Oh, then what led to the downgrade sort of moderating in compute.
So sheeple look once again, I'm, sorry, I'm going back to my old Oh. This thing there are two factors one is.
We are running multiple priorities and they will continue until the year end.
Our priorities are more in terms of control governance.
Supervision, putting the risk and audit teams and players are managing a clean monetizing the field do the new tech stack that we kind of rolled onto the field, which will help us do those supervision control.
Monitoring except right now you know what you know.
Good way so.
We have very clearly said that you know this is the base that we will take our which is oh about putting under 1500 crores in quarter. Two and then 4000 503500. So we are just following the narrative which report we.
We are following the numbers that we had sort of that you have 61 second funding off for what will give us enough.
Enough time to invest in the areas that I have just about spelled out there you saw it go into a part of it as a part of the plant it would be a back end.
Got it so but just wanted to check if there was anything specific.
That's a big that happens so decides that question to the second question was on the liquidity. So if you look good but why do you all.
Liberty regions.
30 seconds, where you're headed by FY, 'twenty, three and or in normal life or do any food what is the percentage of liquidity that you'd want to maintain on balance sheet.
AH study she thought we lost you in between for a couple of seconds are you asking what kind of liquidity, we will be maintaining a baby in an unbalanced yeah by the yard and then normal in our business as usual.
Are there any food.
Okay.
We ashish.
Yeah.
Ladies and gentlemen, the line for the management.
Connected.
You stay online will be reconnected. Thank you.
[music].
Ladies and gentlemen, thank you for patiently waiting in line for the management is reconnected. Thank you.
I actually felt sorry, I I just Oh, there's one question on the how how we are going to look at the liquidity internally, we do Uh huh. So internally. We are we have a conscious decision that you know will stay put the liquid.
From a balance sheet standpoint, and our idea is to maintain you know a cash and bank of anything north of two months of our obligations. So we will build a quick Florida for a some period of time actually this is something that Ah is always good for the.
Microfinance company to have enough and more liquidity on the balance sheet. So we will run a little conservatively.
Got it.
Like they in the beds ambition and it's been mentioned that there you're just that did you do it another thousand loan officers.
So that's all what is I mean so.
We'll all be in three Julien what is the level of U M balloon off he said that we are comfortably in a normal.
Hey, Margaret.
Oh, the normal part of the loan officer, if it is anywhere between 100 and between Heartland likes which is one point of Iqos is a decent number anything south of course, our growth is not a very exciting number which we are at at this point in time any number we just.
On one side, but also is a great number of class fire. So in a short term right now what we've done is that the pause in loan officers, we have kind of allocated we've slightly operational but we are in the branches in the portfolio, which is doing what we are trying to hit a longwall order.
Model on as part of loan officers are in the range of about 450 to 500, that's another destination model.
So we have it sent separately I can take we can take you through the numbers, but it's a detailed one what we are trying to move used to ensure that that are in the next few quarters. When you start you get the wall enterprise level average of about one two to one three gross and then on one single 145.
Got it got it.
So just one last question on this new customer acquisition that we've ever done so Oh I.
I mean.
Well, if you could give some color from the geography point of view.
Is it from the newer geography or from the Europe from our main geographies such as what would you say it would be or is it from the new geographies.
We are mindful of the concentration and the fact that that economy is stagnant ball specific geographies or the acquisition is very secular across the instead, we're gonna be off one two in fact it is the other way around the.
Uh huh.
She'd be part of what we.
It's focused on is any branch, which is not at all of them on level of event that we would want easily and we push more because that is for us we had to drive the profitability metrics right. So all of the new launches for example that we are going to open this quarter in the next quarter will all be only customer acquisition. So you will see.
You know those numbers kind of fall either in the same range any number of Paula Hawkins.
In terms of our distribution Ah we got so that's about the level that we are going to go right in terms of your specific questions. It sounds like another one across all geography wherever we start hitting the ceiling. There we are not very comfortable Israelis slightly toned down the customer acquisition number and then we focus on the existing customers.
Got it so one last question.
And for this to a previous participant but just from a different angle. So you said that you have 33% of the customers, which are unique to spend and uncertainty.
The thought process is to brief broadly do bring you down to close to 8% to 10% is that the understanding right.
No no no no no no no no I'm sorry, I don't think you know, let me repeat what I said.
A single lender relationship portfolio is 33% customers.
One last one just with funding and one more of an answer in 44%.
That put together is 67% this together for almost 67 as an enterprise in the next two to three quarters, we would want to take it to 180%.
Okay, which means which means you will have to definitely pick up the 43 to one party at 39 40.
There's no other option and the other piece also asked for move up simultaneously.
Got it as a vertical.
Yeah. Thank you. Thank you so much and good luck with the next quarter's appreciable.
Thank you.
The next question is from the line of.
For Maximus.
Please go ahead.
Yeah.
Good evening and congratulations on a comparative number.
So first question I think you had mentioned something about trade works. So if you can shed some light on.
Worth because we have also done a lot of write offs in the previous quarter. So how is the collection if any from those pools, which we have already written off.
And what is the expectation going forward.
And the second is so this 97 and a half per cent under new book is a sort of a still below you know what is your expectation.
From Oh, B, a <unk> point of view, so what is sort of holding back this move from behaving at a pristine.
Collection efficiency quality sort of a metric.
I just can't answer these tools.
Uh huh.
<unk> this is ashish.
The answer though.
The first one and then I'll request is shown up for you know kind of when I talk about the new book and how it does.
It does going to play out.
Hum.
So in terms of.
So in terms of the collection from the.
We had a 14 crores that we have conducted an in depth are important.
The way to look at it as a you know if you have to go by the industry benchmark than anywhere between a you know a 10% to 20% down 15% or so is the industry benchmarks are in terms of collections from the written off portfolio order period of.
And a half so once you have one should expect Austin and all have at least a similar numbers if not better.
Given that we are going to make some oh cause the drives are under the home.
These numbers should be better in my mind, So just to supplement the last quarter I think the last quarter. We recovered about 15 gross from that right now.
The next two quarters, we have plans to recover about 40 gross minimum we will do more than that that's number one number two is on your question about 97 five.
5% so oh.
So sorry, B gross collection efficiency. So deliberately if you would have seen.
V as a as a theme here trying to subtly bring about a change we are not timely collection of money is very important which is the net and the gross ideally should not be anywhere else you know ideally everything should come on time at the same place on the latest view there.
Right now we have.
Net collection efficiency of 97, five as you said on the postpaid part of 'twenty, one, but the gross if I E. We're just yes without he ought to Seattle, our collection efficiency of 105% on the same bill.
So well I deliberately sort of new pair to that entire narrative because when we speak to our team's if there's not a more of 100 and favorite is above the 97 five moving to a 19 as I said upwards of 98, four and five and a greater than 99 is what we had is fighting too. So that is what we are are we.
We are you know pursuing a slowly the net of $97 five we anticipate our booth see a figure of upwards of 98 point 599.
Around about that number so we've noted that we've given you both numbers and I know the gross number also the online fight, but then obviously it comes with the languages.
Which might not be water micro finance institution ideally should be a very very happy about.
So how soon do we expect to get to this aspira aspirational number of 98 five to 99.2 phase.
We are targeting a this quarter in the next quarter for all of whatever I have said anything beyond because enough overdose kind of done in this sector are there we have a book, which is now 82%. So there is no reason for us to really hit that number and we obviously have started Ah you know we've already started working.
With the feet on the ground to ensure that.
You know this is kind of you know we kind of hit this because then it would be a perfect Libya situation.
Understood. Thank you and all the best thank.
Thank you.
Thank you.
The next question is from the line of.
From being get Securities. Please go ahead.
Yeah I thought.
So there's less months. So you did a good regulatory particularly funky would be good.
So we're going to reach some school around 8500, but on a U M. Also we had better data.
I Wonder if we buy it.
Luca.
Breaking from your line.
Yeah.
Please go ahead.
That's right.
So sorry that I didn't want they don't want that on page nine we guided around 8500 foot on.
The number did you mean.
Ballpark give or take.
Toward much Budd.
Also a weird right. Therefore, they told them they probably wouldn't be wondering sort of what else.
Claudia you M bias. This year then is that right.
Yeah, that's right given that our disbursement is a largely in the.
Second half and the Q4, it will be a higher number.
The EUM Ah is.
It was likely or do you know clothes.
North of 8000 crores anywhere between 8000 and it doesn't find across.
Okay. So.
But there is some flow through in the 90 day plus they didn't.
But that's for.
Sure in the current book is concerned maybe 90 day, plus and went to 90 degrees.
Sure sure sure.
So those in this quarter is that correct.
Turning to me because I'm sure you wouldn't get dropping.
In the coming quarters because of the hydro.
No Unfortunately age dawns.
Mathematically absolutely, yes, but we do expect improvement from and in absolute terms I would say is what we were trying to explain it in the call.
Yeah, Yeah, I thought that that goes as a musician come with it for this quarter on a strong upward in Brooklyn, and wish you all the best for the coming quarters.
Yeah.
Thank you so much thanks. Thank you.
Ladies and gentlemen that was the last question for Danny.
I now hand, the conference over to Mr. <unk> for closing comments. Thank you.
Well. Thank you very much once again for all the participants on the call. It's a.
For the quarter when we reach our part when we have a chart with each one of you separately not everyone, but also that.
We manage to.
Heiko conversation always have us up.
We've had a we've.
We had the good response and good feedback on various hmm initiatives like we would've taken there aren't many ideas that also are flowing to us and thank you very much for kind of a.
So that's giving us a valuable piece of advice, we've set out on our mission, which is to get to the numbers, but it is less about number it's more about how we do it it's while the destination country the process towards the journey towards our destination is very very important and that is what we are embarked on.
We will ensure that we deliver quality, we will ensure that we create an organization, which are you know which people will be proud off and Kangaroo, who you are an integral stakeholder to this whole journey and thank you very much for all the support thank you very much.
Yeah.
Thank you.
Ladies and gentlemen on behalf of spend and I spoke to you financial limited that concludes today's conference call. Thank you for joining US and you may now disconnect your lines.