Q1 2027 Manappuram Finance Ltd Earnings Call

August 11, 2026

Speaker #3: Ladies and gentlemen, good day, and welcome to the Manappuram Finance Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day and welcome to the Manappuram Finance Q1 FY27 earnings conference call. As a reminder, all participant lines will be in 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 an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Abhijit Deb Priyal from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Manappuram Finance Q1 FY27 earnings conference call. As a reminder, all participant lines will be in 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 an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Abhijit Deb Priyal from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.

Speaker #3: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note, this conference is being recorded.

Speaker #3: I now hand over the conference to Mr. Abhijit Debriwal from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.

Speaker #4: Thank you, Steve. Good evening, everyone. I'm Abhijit Debriwal from Motilal Oswal, and it is our pleasure to welcome you all to this earnings call.

Abhijit Deb Priyal: Yeah. Thank you, Steve. Good evening, everyone. I am Abhijit Deb Priyal from Motilal Oswal, and it is our pleasure to welcome you all to this earnings call. Thank you very much for joining us for Manappuram Finance earnings call to discuss the Q1 FY27 earnings. To discuss the company's earnings, I am pleased to welcome Mr. V.P. Nandakumar, Chairman and MD, Dr. Sumitha Anandan, Executive Director, Mr. Bhuvanesh Tharashankar, Group CFO and CFO, Mr. Manoj Pasangha, Co-CEO Asirvad Microfinance, Dr. Roy Varghese, Co-CEO Asirvad Microfinance, Mr. Amandeep Singh, CFO Asirvad Microfinance, Mr. Kamal Parmar, Head Vehicle & Equipment Finance, Mr. Rakesh Sharma, Co-CEO Manappuram Home Finance, Mr. Suveen P.S., Co-CEO Manappuram Home Finance, and Mr. Robin Karuvely, 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.

Speaker #4: Thank you very much for joining us for the Manappuram Finance earnings call to discuss the Q1 FY27 earnings. To discuss the company's performance, I am pleased to welcome Mr. V.

Speaker #4: P. Nandakumar, Chairman and MD; Dr. Sumita Nandan, Executive Director; Mr. Bhuvanesh Sarashankar, Group CFO and CFO; Mr. Manoj Pasanga, Co-CEO, Asirvad Microfinance; Dr. Roy Varghese, Co-CEO, Asirvad Microfinance.

Speaker #4: Mr. Amandeep Singh, CFO, Ashivad Microfinance. Mr. Kamal Parmar, Head of Vehicle and Equipment Finance. Mr. Rakesh Sharma, Co-CEO, Manappuram Home Finance. Mr. Suvin P. S., Co-CEO, Manappuram Home Finance.

Speaker #4: And Mr. Robin Kharuvani, 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.

Speaker #4: I now invite Mr. Nandakumar for his opening remarks. With that, over to you, sir.

Abhijit Deb Priyal: I now invite Mr. Nandakumar for his opening remarks. With that, over to you, sir.

Speaker #5: Thank you. Good evening, everyone, and thank you for joining us for the Manappuram Finance Q1 FY27 earnings and investor call. It's a pleasure to connect with all of you once again as we discuss our performance for the first quarter of FY27.

V.P. Nandakumar: Thank you. So, good evening, everyone, and thank you for joining us for Manappuram Finance Q1 FY27 earnings and investor call. It is a pleasure to connect with all of you once again as we discuss our performance for the first quarter of FY27 and share our perspective on the opportunities and priorities shaping the year ahead. Operating environment. The first quarter of FY27 witnessed a resilient operating environment for the Indian economy, despite persistent geopolitical uncertainties and volatility in global commodity markets. India's macroeconomic fundamentals remained strong, supported by healthy domestic consumption, improving rural demand, sustained infrastructure spending, and a stable financial system. Credit demand across the banking and the NBFC sectors continued to remain healthy, while asset quality across secured lending portfolios remained resilient. Consolidated financial performance overview.

Speaker #5: And share our perspective on the opportunities and priorities shaping the year ahead. Operating environment: the first quarter of FY27—business has remained resilient in the operating environment for the Indian economy, despite persistent geopolitical uncertainties and volatility in global commodity markets.

Speaker #5: India's macroeconomic fundamentals remained strong, supported by healthy domestic consumption, improving rural demand, sustained infrastructure spending, and a stable financial system. Credit demand across the banking and NBFC sectors continued to remain healthy, while asset quality across securities lending portfolios remained resilient.

Speaker #5: Consolidated financial performance overview: Our performance during the quarter reflects the inherent strength of our diversified business model and the resilience of our core gold loan franchise.

V.P. Nandakumar: Our performance in the quarter reflects the inherent strength of our diversified business model and the resilience of our core gold loan franchise. Consolidated AUM for Q1 FY27 was at INR 69,635 crores, up by 9% QOQ and up by 57% year on year. Consolidated gold loan AUM for Q1 FY27 was at INR 57,006 crores. It is 82% of our consolidated AUM versus 80% for Q4 FY26. Consolidated revenue from operations for the quarter stood at INR 3,033 crores, up by 16% QOQ and up by 34% year on year. Profit after tax stood at INR 585 crores, up by 45% QOQ and up by 47.8%. Coming to gold loan business. The gold loan business continued to be our primary growth engine. At the same time, we maintain our disciplined approach towards risk management across all businesses, with asset quality, liquidity, and capital preservation continuing to be main key priorities.

Speaker #5: Consolidated AUM for Q1, FY27, was at 69,635 crores, up by 9% Q1Q, and up by 57% for Q1Y. Consolidated goal on AUM for Q1, FY27 was at 57,000 crores, and 6 crores, 57,006 crores, which is 52% of our consolidated AUM versus 80% for Q4, FY26.

Speaker #5: Consolidated revenue from operations for the quarter stood at ₹3,033 crores, up by 16% quarter-on-quarter, and up by 34% year-on-year. Profit after tax stood at ₹585 crores, up by 45% quarter-on-quarter, and up by 347% year-on-year.

Speaker #5: Coming to the gold loan business, the gold loan business continued to be our primary growth engine. At the same time, we maintained our disciplined approach towards risk management across all businesses, with asset quality, liquidity, and capital preservation continuing to remain key priorities.

V.P. Nandakumar: With over four decades of experience in secured lending, Manappuram Finance has built one of the country's most trusted gold loan franchises. Standalone gold loan AUM for Q1 FY27 was at INR 54,655 crores, up by 12% quarter on quarter and up by 97% year on year. As guided earlier quarter, our gold loan yield was improved by 59 bps during the quarter. Coming to microfinance business. Our microfinance business under Asirvad continues to operate in a calibrated manner, as microfinance companies have had witnessed industry-wide stress over the few years. However, the strategic measures implemented over the last several quarters are beginning to deliver encouraging outcomes. Our balance sheet remains robust, supported by healthy capital adequacy, diversified funding sources, and comfortable liquidity buffers. This provides us with flexibility to pursue growth opportunities while maintaining financial resilience in an evolving operating environment.

Speaker #5: With our four decades of experience in secured lending, Manappuram Finance has built one of the country's most trusted gold loan franchises. Standalone gold loan AUM for Q1 FY27 was at ₹54,655 crore, up 12% for the quarter and up 97% year on year.

Speaker #5: As guided earlier, quarter-on-quarter, our goal on yield has improved by 59 bps during the quarter. Coming to the microfinance position, our microfinance business under Asirvad continues to operate in a calibrated manner.

Speaker #5: As microfinance companies have witnessed industry-wide growth over the past few years, the strategic measures implemented over the last several quarters are beginning to deliver encouraging outcomes.

Speaker #5: Our balance sheet remains robust, supported by healthy capital adequacy, diversified funding sources, and comfortable liquidity buffers. This provides us with flexibility to pursue growth opportunities while maintaining financial resilience in an evolving operating environment.

Speaker #5: Asirvad AUM stands at ₹7,188 crore, up by 5.8% quarter-on-quarter, and up by 7.2% year-on-year. Asirvad has reported a PAT of ₹21 crore in this quarter, up by 58% quarter-on-quarter, and up by 108% year-on-year.

V.P. Nandakumar: Asirvad AUM stands at INR 7,188 crores, up by 5.8% QOQ and up by 7.2% year on year. Asirvad has reported a PAT of INR 21 crores in this quarter, up by 58% QOQ and up by 108% year on year. Coming to housing and the MSME lending business. Our housing finance and MSME lending business continue to focus on profitable growth while maintaining strong credit discipline. Rather than pursue rapid balance sheet expansion, we remain committed to building sustainable businesses that generate healthy risk-adjusted returns over the long term. Coming to priorities for Manappuram. It is remaining unchanged. We continue to strengthen our senior leadership team. Mr. Ashish Singh has been appointed as our MD and CEO and expected to join by 1 January 2027.

Speaker #5: Coming to the housing and Amazon lending businesses, our housing finance and Amazon lending businesses continue to focus on profitable growth while maintaining strong credit discipline.

Speaker #5: Rather than pursuing rapid balance sheet expansion, we remain committed to building sustainable businesses that generate healthy, risk-adjusted returns over the long term. Our priorities for Manappuram remain unchanged.

Speaker #5: We continue to strengthen our senior executive team, with Ashish Singh having been appointed as the MD and CEO, and expected to join by January 1, 2027.

V.P. Nandakumar: He is a seasoned banker with over 21 years of experience in the retail banking space and his latest experience at IDFC FIRST Bank, a set of retail abilities. He previously has leading private banking business. Moving forward, we continue to maintain our leadership in the gold loan business through customer-centric innovation and digital capabilities and operational excellence. Simultaneously, we will focus on improving the performance of our diversified businesses through disciplined underwriting, stronger portfolio quality, and sustainable profitability. Technology, governance, and operational efficiency continue to remain important pillars of our strategy as we build a more agile and future-ready organization. While the operating environment will continue to evolve, we believe that institutions with strong governance, a disciplined execution, trusted brands, and prudent risk management will emerge stronger over the long term.

Speaker #5: He is a seasoned banker with over 25 years of experience in the retail and banking space, and his latest experience at IDFC First Bank has been in setting up retail capabilities.

Speaker #5: He previously has leading private banking business. Moving forward, we continue to maintain our leadership in the gold loan business through customer-centric innovation, digital capability, and operational excellence.

Speaker #5: Simultaneously, we will focus on improving the performance of our diversified businesses through disciplined underwriting, stronger portfolio quality, and sustainable profitability. Technology, governance, and operational efficiency continue to remain important pillars of our strategy as we build a more agile and future-ready organization.

Speaker #5: While the operating environment will continue to evolve, we believe that institutions with strong governance, disciplined execution, trusted brands, and proven risk management will emerge stronger over the long term.

Speaker #5: With our resilience, robust business model, strong capital position, and diversified financial services platform, we are well positioned to capitalize on the significant opportunities ahead. With that, I now hand over the call to our President and Group CFO, Mr. Bhuvanesh Raj Sankar, who will take you through the detailed financial and operational performance of the quarter. We will then be happy to take your questions.

V.P. Nandakumar: With our resilient business model, robust capital position, and diversified financial services platform, we are well positioned to capitalize on the significant opportunities ahead. With that, I now hand over the call to our President and Group CFO, Mr. Bhuvanesh Rajasekaran, who will take you through the detailed financial and operational performance for the quarter. He will then be happy to take your questions. Thank you.

Speaker #5: Thank you.

Speaker #1: Thank you, Mr. Manappuram.

Buvanesh Tharashankar: Thank you, Mr. Namaskar. Good evening, ladies and gentlemen. Thank you for joining us for a discussion on our financial results for the first quarter ended 30 June 2026. In Q1 FY27, performance was driven by a strategic focus on gold loan growth, improved gold loan yields, and a greater emphasis on non-gold loan collections and strengthened asset quality. Our consolidated AUM for Q1 FY27 was at INR 69,635 crores, up by 9% sequentially and 57% year on year. Gold loan continued to be our key growth driver with an AUM of INR 57,006 crores, up by almost 12% quarter on quarter and by about 98% year on year, supported by strong customer demand. Gold loan business constitutes 82% of the consolidated AUM versus 80% in the prior quarter and 65% a year ago.

Speaker #5: Good evening, ladies and gentlemen. Thank you for joining us for a discussion on our financial results for the first quarter ended June 30, 2026.

Speaker #5: In Q1, FY27, performance was driven by a strategic focus on gold loan growth, improved gold loan yields through a greater emphasis on and a greater emphasis on non-gold loan collections and strengthened asset quality.

Speaker #5: Our consolidated AUM for Q1 FY27 was at ₹69,635 crore, up by 9% sequentially and 57% year on year. Gold loan continued to be our key growth driver, with an AUM of ₹57,006 crore, up by almost 12% quarter on quarter and by about 98% year on year, supported by strong customer demand.

Speaker #5: Gold loan business constitutes 82% of the consolidated AUM, versus 80% in the prior quarter, and 65% a year ago. Consolidated profit after tax, before OCI and minority interest, was ₹585 crore for Q1 FY27, which was sequentially up 44.5%.

Buvanesh Tharashankar: Consolidated profits after tax before OCI and minority interest was INR 585 crores for Q1 FY27, which sequentially was up 44.5%. Coming to the standalone business. Our standalone AUM for Q1 FY27 was at INR 60,971 crores, up by 9% sequentially and 70.8% year on year. Gold loan AUM in standalone business was INR 54,655 crores, up 12% quarter on quarter and 97.4% year on year. It constitutes 90% of our standalone AUM versus 87% in the prior quarter and 77% a year ago. Standalone PAT before OCI was INR 552 crores, up 47% sequentially and 41% year on year. Standalone GNPA was at 1.56% versus 1.8% in prior quarter, and credit cost in standalone entity for the quarter was 1%. The standalone borrowing cost has gone up by about 10 bps in the first quarter of FY27. Coming to the gold loan business.

Speaker #5: Coming to the standalone business, our standalone AUM for Q1 FY27 was at ₹60,971 crore, up by 9% sequentially and 70.8% year on year. Gold loan AUM in the standalone business was ₹54,655 crore, up 12% quarter on quarter and 97.4% year on year.

Speaker #5: It constitutes 90% of our standalone AUM, versus 87% in the prior quarter and 77% a year ago. Standalone PACT before OCI was ₹552 crore, up 47% sequentially and 41% year-on-year.

Speaker #5: Standalone GNPA was at 1.56%, versus 1.8% in the prior quarter, and credit cost in the standalone entity for the quarter was 1%. The standalone borrowing cost has gone up by about 10 bps in the first quarter of FY27.

Speaker #5: Coming to the gold loan business, during the quarter we were able to add about 3.2 lakh new customers, and the outstanding number of customers was 26.5 lakhs.

Buvanesh Tharashankar: During the quarter, we were able to add about 3.2 lakh new customers, and outstanding number of customers was 26.5 lakhs. Our average gold loan LTV was at 65.6% in Q1 FY27. Online gold loan book accounts for about 86% of the total gold loan book. Coming to microfinance business, Asirvad AUM stands at INR 7,188 crores, which includes gold loan AUM of INR 2,344 crores. Overall, the growth was 5.8% quarter on quarter and 7.2% year on year. PAT before OCI was INR 21 crores in Q1 FY27 versus INR 13 crores in the prior quarter.

Speaker #5: Our average gold loan LTV was at 65.6% in Q1 FY27. The online gold loan book accounts for about 86% of the total gold loan book.

Speaker #5: Coming to the microfinance business, Ashirwaj AUM stands at ₹7,188 crores, which includes gold loan AUM of ₹2,344 crores. Overall, the growth was 5.8% quarter on quarter and 7.2% year on year.

Speaker #5: PACT before OCI was ₹21 crore in Q1 FY27, versus ₹13 crore in the prior quarter. In Q1 FY26, we had a loss of ₹269 crore.

Buvanesh Tharashankar: In Q1 FY26, we had a loss of INR 269 crores. Essentially a swing of INR 290 crores year on year. Net NPA stands at 1.4%, and Asirvad CRAR as of quarter end was at 31%. Coming to vehicle finance business, in the vehicle finance business, we have reported an AUM of INR 2,562 crores, down 14.3% quarter on quarter and 43% year on year. Focus is now on collections as GNPA continues to be elevated at 13.3% versus 10.4% in prior quarter. Loans to MSME and allied was at INR 3,303 crores with a disbursement of INR 191 crores, and GNPA was at 5.9% versus 7.1% in the prior quarter. Home loan business had a total book of INR 1,847 crores, flat QOQ, and down by about 3% year on year. The board has declared an interim dividend of ₹1 for this quarter.

Speaker #5: So essentially, a swing of ₹290 crore year-on-year. Net NPA stands at 1.4%, and Ashirwad CRAR as of quarter end was at 31%.

Speaker #5: Coming to the vehicle finance business, we have reported an AUM of ₹2,562 crore, down 14.3% quarter on quarter, and 43% year on year.

Speaker #5: Focus is now on collections, as GNPA continues to be elevated at 13.3%, versus 10.4% in the prior quarter. Loans to MSME and allied were at ₹3,303 crores, with a disbursement of ₹191 crores, and GNPA was at 5.9%, versus 7.1% in the prior quarter.

Speaker #5: The home loan business had a total book of ₹1,847 crore, flat quarter-on-quarter and down by about 3% year-on-year. The board has declared an interim dividend of ₹1 for this quarter. Our capital position is strong, and the company is well-capitalized with a capital adequacy ratio of 21.29%.

Buvanesh Tharashankar: Our capital position is strong and company is well capitalized with a capital adequacy ratio of 21.29%. The company's consolidated net worth stands at INR 16,552 crores as of 30 June 2026, and book value per share stood at ₹176.20. We can go now for the Q&A session. Thank you.

Speaker #5: The company's consolidated net worth stands at ₹16,552 crore as of June 30, 2026, and book value per share stood at ₹176.20.

Speaker #5: We can now proceed to the Q&A session. Thank you.

Speaker #1: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone.

Operator 2: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you would press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sripal Doshi with Securitas. Please go ahead.

Operator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you would press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sripal Doshi with Securitas. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, please press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sripal Doshi with Jefferies.

Speaker #1: Please go ahead.

Speaker #6: Hi, sir. Thank you for giving me the opportunity, and congratulations on a good set of numbers. My question is, firstly, on the recent implementation of RBI's new framework on the LTV side.

Sripal Doshi: Hi, sir. Thank you for giving me the opportunity and congrats on a good set of numbers. My question was firstly on the recent implementation of RBI's new framework on the LTV side. What all changes have we made in terms of product tenure? Have we launched income-generating products as well during the quarter? If yes, could you please throw some light in terms of the interest rate as well as tenure and the underwriting practice that we have in that category? Thank you.

Shripal Doshi: Hi, sir. Thank you for giving me the opportunity and congrats on a good set of numbers. My question was firstly on the recent implementation of RBI's new framework on the LTV side. What all changes have we made in terms of product tenure? Have we launched income-generating products as well during the quarter? If yes, could you please throw some light in terms of the interest rate as well as tenure and the underwriting practice that we have in that category? Thank you.

Speaker #6: So, what all changes have we made in terms of product tenure, and have we launched income-generating products as well during the quarter? If yes, could you please give us some—could you please throw some light in terms of tenure and the underwriting practice that we have in that category?

Speaker #6: Thank you.

[Company Representative] (Manappuram Finance): On the recent RBI circular guideline issued from 1 April onwards, we implemented it across the recent period by considering the interest also while calculating that. There is a major change that happened and also the ticket size range also came into picture, like up to INR 2.5 lakh, INR 2.5 lakh to INR 5 lakh and above INR 5 lakh. That is implemented from 1st onwards. According to the new circular guideline, they given some options or some various different kind of product offering options also given. According to the customer requirement and request, some of the products like monthly interest payment or monthly EMI scheme category products also we launched as a part of that. There are some acceptance from the customer also, earlier also requesting, sir, now we got that option.

Speaker #5: On the recent RBI circular guideline issued from 1st April onwards, we implemented it across in the 11th period by considering the interest also while calculating that.

Speaker #5: That is a major change that happened, and also the ticket size came into the picture. Like, up to ₹2.5 lakh, ₹2.5 to ₹5 lakh, and above ₹5 lakh.

Speaker #5: That is implemented from the 1st onwards, and according to the new circular and guidelines, and as per RBI, some options or various different kinds of product offerings are also given. According to the customer requirement and request, some of the products like monthly EMI, monthly interest payment, or monthly EMI scheme category products have also been launched as a part of that.

Speaker #5: There are some acceptances from the customer also, which were earlier also requested, sir. Now we have that option. So these are all the changes done, and there are some customer segments, like the business class customer or business segment—those who are regularly getting income from their business and related operations.

[Company Representative] (Manappuram Finance): These are all the changes done and some of the customer segment, like business class customer or business segment is there. Those who are regularly getting income on their business and related operations. In that also a small segment of income-generating loan also started after this April.

Speaker #5: In that also, a small segment of income-generating loans also started after this April.

Sripal Doshi: How is this income-generating loan different from the Vanitha gold loan that we were doing, consumer gold loan that we were doing, except for the bullet repayment part? Is there any other difference apart from having the option of bullet repayment in consumer loan versus in the income-generating loan, we have the EMI option? Apart from these two, is there any other difference?

Speaker #4: Can you explain how this income-generating loan is different from the vendor gold loan that we were doing, and the consumer gold loan that we were doing, except for the bullet repayment part?

Shripal Doshi: How is this income-generating loan different from the Vanitha gold loan that we were doing, consumer gold loan that we were doing, except for the bullet repayment part? Is there any other difference apart from having the option of bullet repayment in consumer loan versus in the income-generating loan, we have the EMI option? Apart from these two, is there any other difference?

Speaker #4: So, is there any other difference, you know, apart from having the option of bullet repayment in the consumer loan, versus in the income-generating loan we have the EMI option? Apart from these two?

Speaker #4: Is there any other difference?

Speaker #6: So the income-generating asset, income-generating gold loan, is given based on the cash flows. So we have that for assessing the cash flow, etc.

V.P. Nandakumar: The income-generating assets, like income-generating gold loan, is given based on the cash flows. We have for that, for assessing the cash flow, et cetera. Whether it is the EMI product or 100% EMI product, the interest installment is based on the cash flow. The LTV is also based on that. If it is an equated monthly installment, the LTV is higher. This gives us an option, if there is an overdue, we can send the due notices and the recovery process can start as specified by the regulator. You had a question on the interest rate? Yes. The interest rate on this scheme, it ranges from 14% to 16%.

Speaker #6: So, whether it is the EMI product or the quarterly EMI product, the interest charged is based on the cash flow. The LTV is also based on that.

Speaker #6: If it is an equated monthly expense, the LTV is high. And this gives us an option where we can send the new notices, and the recovery process can start as specified by the report.

Speaker #6: You have a question on the interest rate. Yes, the interest rate on the scheme ranges from 14% to 16%.

Speaker #4: 14 to 16%. Okay. Got it, sir. Got it. And when you say, you know, income evaluation or cash evaluation is most important when you're doing income-generating loans, have we created, you know, bandwidth there in terms of hiring staff over the last, you know, three to six months, or how is it?

Sripal Doshi: 14% to 16%. Okay.

Shripal Doshi: 14% to 16%. Okay.

V.P. Nandakumar: 14% to 16%.

Sripal Doshi: Got it, sir. All right. And sir, when you say income evaluation or cash flow evaluation is most when you are doing income-generating loan. We have created a bandwidth there in terms of hiring staff over the last three, six months, and how is it?

Shripal Doshi: Got it, sir. All right. And sir, when you say income evaluation or cash flow evaluation is most when you are doing income-generating loan. We have created a bandwidth there in terms of hiring staff over the last three, six months, and how is it?

V.P. Nandakumar: Well, we have hired staff, and also we have our own people in the cash flow-based products like MSME and vehicle loans, et cetera, who have the capacity or the knowledge of assessing the cash flow of the customer, et cetera, existing borrower, et cetera. And sufficient training has been given at various levels. We started this training much before the implementation. We started this training at least 3 months prior to the implementation on 1 April. So these income-generating schemes were implemented subsequently only. So we have had time to train our staff for 6 months. They are adequately trained now.

Speaker #6: Well, we have hired staff, and also we have our own people. In the cash flow-based products, like Amazon, etc., we have people who have the capacity or the knowledge of assessing the cash flow of the customer, etc. They will borrow, etc., so.

Speaker #6: And sufficient training has been given, and so at various levels. We started this training much before implementation. We started this training at least three months prior to the implementation on April 1st.

Speaker #6: So these income-generating schemes were implemented subsequently only. So we had, at that time, to train our staff for six months.

Speaker #6: They are adequately trained now.

Sripal Doshi: Got it, sir. Just one follow-up there. Even in the income. I am sorry to interrupt. Mr. Sripal Doshi, could you please repeat your question? You were not audible.

Shripal Doshi: Got it, sir. Just one follow-up there. Even in the income. I am sorry to interrupt. Mr. Sripal Doshi, could you please repeat your question? You were not audible.

Speaker #4: Got it, sir. Just one follow-up there.

Speaker #1: I'm sorry to interrupt. Mr. Sripal, could you please repeat your question? You were not audible.

Speaker #4: Yes. So my question was, even in the income-generating loan, we follow similar LTV norms as we follow in the consumer loans, right?

V.P. Nandakumar: Yeah. So my question was that even in the income-generating loan, we follow the similar LTV norms as we follow in the consumer loans, right?

Speaker #6: No. For income-generating loans, based on the cash flow, we go up to 85% if it is on a monthly EMI—85%. And if it is quarterly, the submission scheme...

V.P. Nandakumar: No. Income-generating loan based on the cash flow, we go up to 85%, if it is some monthly EMI, 85%, and we disperse properly the servicing is lesser to that. So the LTV is higher. But at the same time, I can tell you the overall average LTV remains at 64%. Now it has. This is the last week's price. Now the average LTV would have come down further because the price has gone up during the last one week.

Speaker #6: So the LTV is higher. But at the same time, I can tell you the overall average LTV remains at 64%. Even now, this is the last week's price.

Speaker #6: Now, the average LTV would have come down further because the price has gone up during the last one week.

Speaker #4: Got it, sir. Got it, sir. Thank you so much for answering our questions. Good luck.

Sripal Doshi: Got it, sir. Thank you so much for answering my questions. Good luck.

Shripal Doshi: Got it, sir. Thank you so much for answering my questions. Good luck.

Speaker #1: The next question comes from the line of Rajiv Mehta with ES Securities. Please go ahead.

Operator 2: The next question comes from the line of Rajiv Mehta with YES SECURITIES (India) Limited. Please go ahead.

Operator: The next question comes from the line of Rajiv Mehta with YES SECURITIES (India) Limited. Please go ahead.

Speaker #4: Yeah. Hi, good evening. Congratulations on the good numbers. Sir, firstly, I want to understand the movement of the 60 basis points improvement in the portfolio yield.

Rajiv Mehta: Yeah. Hi, good evening. Congratulations on good numbers. Sir, firstly, I want to understand this movement of 60 basis points improvement in the portfolio yield. What drove this? Is it the new products which you introduced under the new regulations? Since your portfolio tenure is generally short, is that helping you in maintaining now the yield at a much better level than the earlier products? Or has there been any underlying shift in the customer segment mix, meaning that more high ticket customers or has there been any change in the customer mix as well? If you could just answer, and whether are we able to maintain the same yield in July, August as well with the same momentum of business?

Speaker #4: You know, what drove this? Is it the new products which you introduced under the new regulations? Since your portfolio tenor is generally short, is that helping you maintain the yield at a much better level than, you know, than the earlier products?

Speaker #4: Or has there been any underlying shift in the customer segment, meaning that there are more high-ticket customers or, you know, has there been any change in the customer mix as well?

Speaker #4: So if you just answer, are we able to maintain the same yield in July and August as well, with the same momentum of business?

Speaker #6: Hi, this is Bhuvnesh here. So, the yield movement is, is largely—I mean, last quarter, I think I alluded to the point that, you know, we had overcorrected in terms of, you know, the pricing that we had.

Buvanesh Tharashankar: Hi, this is Bhuvanesh here. The yield movement is largely, I mean, last quarter, I think I alluded to the point that we had overcorrected in terms of the pricing that we had, and we were taking some pricing actions to ensure that we are able to enhance the yield. So in Q1, essentially, we had taken some pricing actions which are beginning to kind of yield results to us, which is what you see in the Q1 numbers. And we see similar trends going forward as well. From a pricing perspective, we will probably be in this broad band around the 18% handle. Basically that's where we will be. So it's not on account of any shift in terms of a dispersal mix or any segmentation mix.

Speaker #6: And we were taking some pricing actions to ensure that, you know, we are able to enhance the yield. So in Q1, essentially, we had taken some pricing actions, which have begun to kind of yield results for us, which is what you see in the Q1 numbers.

Speaker #6: And we we see similar trends you know going forward as well. From a pricing perspective, we will probably be in this in this broad band, you know, around the 18% handling.

Speaker #6: And basically, that's where we will be. So it's not on account of any shift in terms of, you know, a disbursal mix or any segmentation mix.

Speaker #6: It's basically a set of actions that we had taken from a pricing perspective to be in line with, you know, our peer group, and we continue to monitor that pretty closely.

Buvanesh Tharashankar: It is basically a set of actions that we have taken from a pricing perspective to be in line with our peer group, and we continue to monitor that pretty closely.

Speaker #4: And with this, you know, holding on to the AUM growth of around 18%, have we seen the velocity of business in terms of financial growth and customer growth continue in July and August as well?

Rajiv Mehta: With this, holding on to the yield of around 80-odd%, have we seen the velocity of business in terms of tonnage growth, customer growth continuing in July and August as well?

Speaker #6: So Q1, you know, if you look at, you know, the growth in one year back, I think it was, you know, from a tonnage perspective and a customer perspective, it was a bit weak.

Buvanesh Tharashankar: Q1, if you look at the growth in one year back, I think it was from a tonnage perspective and a customer perspective, it was a bit weak. In fact, on the tonnage side, I think we had gone down last year first quarter. This first quarter, despite seasonally being slow, we had a good momentum, and we continue to build on that momentum in July and August as well, both from a customer perspective and from a tonnage perspective as well.

Speaker #6: In fact, on the tonnage side, I think we had gone down last year, first quarter. This first quarter, despite, you know, seasonally being slow, we have had good momentum.

Speaker #6: And we continue to build on that momentum in July and August as well, both from a customer perspective and from a tonnage perspective as well.

Speaker #4: And just one clarification. When you report LTV as of June end at 65.6 and as of March at 57.3, this June LTV will also have, you know, LTV defined as per the RBI's new regulation.

Rajiv Mehta: Just one clarification. When you report LTV as of June-end at 65.6 and as of March at 57.3, this June LTV will also have LTV defined as per the RBI's new regulation or is it like to like comparable? It is not including interest.

Speaker #4: Or is it a like-to-like comparison? It's not including interest.

Speaker #6: No. So it is so to some extent, you know, it will include interest, but in in terms of, you know, largely the LTV movement that you see from 57 to 64 is is driven by the price of gold.

Buvanesh Tharashankar: No. To some extent, it will include interest. But in terms of largely the LTV movement that you see from 57 to 64 is driven by the price of gold. You see that the price of gold has dropped by about 8.5%. Consequently, you see a similar movement on the LTV side, so it is more of a denominator effect, I would say.

Speaker #6: So you see that, you know, the price of gold has dropped by about 8 and a half percent consequently, you know, you see a similar movement on the LTV side.

Speaker #6: So, it's more of a denominator effect, I would say.

Speaker #4: Sir, there is no numerator change, you are saying. Numerator computation change—it's not there. Yeah, okay. Okay. Got it. I'll come back in a few minutes.

Rajiv Mehta: So there is no numerator change you are saying. Numerator computation change.

Buvanesh Tharashankar: No.

Buvanesh Tharashankar: It is not there. Yeah. Okay.

Buvanesh Tharashankar: No.

Rajiv Mehta: Okay. Got it. I will come back with you. Thanks.

Speaker #6: Yeah.

V.P. Nandakumar: Yeah.

Speaker #1: The next question comes on the line of Piran. Let's see. LSA, please go ahead.

Operator 2: The next question comes from the line of Brian with CLSA. Please go ahead.

Operator: The next question comes from the line of Brian with CLSA. Please go ahead.

Speaker #5: Yeah. Hi.

[Analyst] (CLSA): Yeah. Hi, team. Hello.

Brian Curran: Yeah. Hi, team. Hello.

Speaker #1: Hello. Piran, you're not audible. Can you please speak a bit louder?

Operator 2: Hello. Brian, you are not audible. Can you please speak a bit louder?

Operator: Hello. Brian, you are not audible. Can you please speak a bit louder?

[Analyst] (CLSA): Okay. Is it audible now?

Brian Curran: Okay. Is it audible now?

Speaker #5: Okay. Is it audible now?

Speaker #1: Yeah. Perfect. Thank you.

Operator 2: Yeah. Perfect.

Operator: Yeah. Perfect.

[Analyst] (CLSA): Yeah.

Brian Curran: Yeah.

Operator 2: Thank you.

Operator: Thank you.

Speaker #5: Yeah, yeah. No. So just going back to the earlier question—where can LTV settle, assuming gold prices are stable here?

[Analyst] (CLSA): Yeah. No, just going back on the earlier question, where can LTV settle, assuming gold prices are stable here?

Brian Curran: Yeah. No, just going back on the earlier question, where can LTV settle, assuming gold prices are stable here?

Speaker #6: So, on average, this will be like 64, 65, even 66 level only. Like March end, 57 came mainly because of the price only.

V.P. Nandakumar: On an average, this would be like 64%, 65%, even 66% level only. March end, 57% came mainly because of the price on 14,161 was the price. Now, 30 June that price is at 12,954. That is why this is coming at a 66%. But normally in this level, if it is continuing 64% to 67% is the average LTV range in the normal scenario.

Speaker #6: 14,161 was the price. Now, as of 30th June, that price is at 12,954. That is why this is coming at 66 percent. But normally, at this level, if it is continuing, 64 to 67 is the average LTV range.

Speaker #6: In the normal scenario.

Speaker #5: Understood. So LTV should be range bound out here.

[Analyst] (CLSA): Understood. So LTV should be range bound out here.

Brian Curran: Understood. So LTV should be range bound out here.

Speaker #6: Yeah. Average this range will be there. If price increase there because this is from the last day price we are calculating according to the calculation.

V.P. Nandakumar: Yeah, average this range will be there. If price increase there, because this is from the last day price we are calculating according to the calculation. That is what is everywhere following that last day's price.

Speaker #6: That is what is everywhere following that. Last day's price.

Speaker #5: Understood. Understood. The secondly, we have seen a lot of competition, you know, on the ground in gold loans. But you all have done pretty well.

[Analyst] (CLSA): Understood. Just secondly, we are seeing a lot of competition on the ground in gold loans, but you all have done pretty well. Just wanted to understand conceptually if competitive intensity remains strong or even rises, what would you prefer, holding onto margins or sacrificing margins but pushing growth?

Brian Curran: Understood. Just secondly, we are seeing a lot of competition on the ground in gold loans, but you all have done pretty well. Just wanted to understand conceptually if competitive intensity remains strong or even rises, what would you prefer, holding onto margins or sacrificing margins but pushing growth?

Speaker #5: Just wanted to understand conceptually—if competitive intensity remains strong or even rises, would you prefer holding on to margins or sacrificing margins but pushing growth?

V.P. Nandakumar: You see, we will maintain a balance. So currently our pricing is one of at the lowest range in the NBFC industry. So with the market, we cannot be totally away from the market. So we have to move according to the market. But I hope we will be reasonably balanced in that.

Speaker #6: See, we will maintain a balance. So, currently, our pricing is in one of the lowest ranges in the NBFC industry. So, with the market, we cannot be totally away from the market.

Speaker #6: So we have to move according to the market, but I hope we'll be reasonably balanced in that.

Speaker #5: Okay. Okay. And lastly, just a question for Bindu if she's there. This net loss on derecognition of financial instruments of ₹30 crore, can you just explain what exactly that is?

[Analyst] (CLSA): Okay. Lastly, just a question for Bindu, if she is there. This net loss on de-recognition of financial instruments of INR 30 crore. Just can you explain what exactly that is? Is that a write-off?

Brian Curran: Okay. Lastly, just a question for Bindu, if she is there. This net loss on de-recognition of financial instruments of INR 30 crore. Just can you explain what exactly that is? Is that a write-off?

Speaker #5: Is that a write-off?

Buvanesh Tharashankar: Yes, it is a write-off. We can get back on more specifics on that.

Speaker #6: Yes, it's a write-off. We can get back with more specifics on that.

Speaker #5: Okay, so it's a loan write-off, basically.

[Analyst] (CLSA): Okay. It is a loan write-off basically.

Brian Curran: Okay. It is a loan write-off basically.

Speaker #6: Yeah. Yeah. Yeah.

Buvanesh Tharashankar: Yeah.

Speaker #5: Understood, understood. Okay, that's it from my end. Thanks, and wish you all the best.

[Analyst] (CLSA): Understood. Okay. Yeah, that is it from my end. Thanks, and wish you all the best.

Brian Curran: Understood. Okay. Yeah, that is it from my end. Thanks, and wish you all the best.

Speaker #6: Thank you.

Buvanesh Tharashankar: Thank you.

Speaker #1: Thank you. The next question comes from the line of Prithviraj Patel with InvestTech. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Prithviraj Patil with Investec. Please go ahead.

Operator: Thank you. The next question comes from the line of Prithviraj Patil with Investec. Please go ahead.

Speaker #4: All right. Thanks for the opportunity. I just had one question regarding the new guidelines that RBA has given—the draft guidelines about risk per facility.

Prithviraj Patil: Hi. Thanks for the opportunity. I just had one question on the new guidelines that RBI has given, the draft guidelines about the revolver facility. I just wanted to know, is there any such facility in our online gold portfolio?

Speaker #4: So I just wanted to know is there any such facility in our online gold portfolio?

V.P. Nandakumar: Can you repeat the question?

Speaker #6: Can you repeat the question? Yes.

Speaker #4: Yeah. So there's a new draft guide new draft guidelines on a revolving facility. So I just wanted to know if there's any such facility on the online gold portfolio that you have.

Prithviraj Patil: Yeah. There's a new draft guidelines on the revolving facility. I just wanted to know if there's any such facility on the online gold portfolio that we have.

V.P. Nandakumar: Online gold loan doesn't come under the overdraft. It is a normal loan only. It's just being lettered in the regular inspections.

Speaker #6: So online gold loan doesn't come under the our draft. Is there normal loan only? It's just being attached in the regular inspection.

V.P. Nandakumar: Online gold loan doesn't come under the overdraft. It is a normal loan only. It's just being lettered in the regular inspections.

Speaker #4: Okay. So like how how does the functioning of this loan work once the principle is run down? We give the customer a principle is.

Prithviraj Patil: Okay. How does the functioning of this loan work? Once the principal is ran down, if the customer-

V.P. Nandakumar: When the principal is run down, he has the facility if the LTV permits. He has the facility in the online gold loan to repledge that at the LTV he wants within the range permissible. That's all.

Speaker #6: Run when the principle is run down. Yet a facility if the LTV permits yet the facility in the online gold loan to repledge that at a LTV he wants within the range permissible.

Speaker #6: That's all. It is not an over—it is not an oversight. He has the facility to re-pledge at the prevailing LTV. Within that prevailing LTV, he has the option.

Prithviraj Patil: Okay. Thank you.

V.P. Nandakumar: It is not an overdraft. He has the facility to repledge at the prevailing LTV, within that prevailing LTV he has the option.

Speaker #4: Yeah. Thank you.

Prithviraj Patil: Good. Thank you.

Operator 2: Mr. Prithviraj, is there any other question?

Operator: Mr. Prithviraj, is there any other question?

Speaker #1: Mr. Prithviraj, there's a last question.

Speaker #4: Yeah. Thank you. Thank you.

Prithviraj Patil: Yeah, done. Thank you.

Speaker #1: Okay, thank you. The next question comes from the line of Bhaskar Basu with Jefferies. Please go ahead.

Operator 2: Okay. Thank you. The next question comes from the line of Bhaskar Basu with Jefferies. Please go ahead.

Operator: Okay. Thank you. The next question comes from the line of Bhaskar Basu with Jefferies. Please go ahead.

Speaker #4: Yeah. Good evening. I had three questions. Firstly, on the LTVs again, how are the origination LTVs and do you have any loan which are originated at around 85 percent LTV post the new loans?

Bhaskar Narayan Basu: Yeah. Good evening. I had three questions. Firstly, on the LTVs again, how are the origination LTVs, and do you have any loans which are originated at around 85% LTV for the new loans?

V.P. Nandakumar: First of all, I can say we are working within the regulations.

Speaker #6: So we are first of all, I can say we are working within the regulations. If conceptual loan is there you have to 2.5 lakhs there is a regulation similarly beyond that also there are certain caps.

V.P. Nandakumar: First of all, I can say we are working within the regulations.

V.P. Nandakumar: Yeah.

V.P. Nandakumar: If consumption loan is there, you have to 2.5 lakhs, there is a regulation. Similarly, beyond that also there are certain caps. The interest also is factored while calculating that.

Speaker #6: The interest is also factored in while calculating that.

Speaker #4: Correct.

V.P. Nandakumar: Okay.

Speaker #6: The thing says that. So, for income-generating assets, we go up to 85 percent as the maximum. Eighty-five percent, and these are EMI products or EAA products.

V.P. Nandakumar: As we said that, for income generating assets, we go up to 85%, this is the maximum, 85%. Then these are EMI products or the LAP products. So here, even though we have the gold collateral with us, most stress is given to assess this cash flow. These are all from the business people.

Speaker #6: So here, even though we have the gold collateral with us, most trust is given to assess his cash flow. These are all for the business people.

Rajiv Mehta: Yes

Speaker #4: Yes.

Speaker #6: Who will even otherwise qualifies for EMI products based on the cash flow. Based on whatever securities the letter insists upon.

V.P. Nandakumar: who will even otherwise qualify for EMI products based on the cash flow, based on whatever securities they'll let their interest upon.

Bhaskar Narayan Basu: Okay. But that income generating product actually, my understanding is there's no required LTV cap for that, right? I mean, you can

Speaker #4: Okay. But for that income-generating product, actually, my understanding is there's no required LTV cap for that, right? I mean, you can—yeah.

V.P. Nandakumar: Yeah. There is no, for the regulation, there is no LTV cap. But internally, we have fixed up the cap to be 85% maximum. That is the maximum.

Speaker #6: There is no the regulation there is no LTV cap. But internally we have fixed the cap to be 85 percent maximum. That's the maximum.

Speaker #4: Got it. And what portion of your book will be, say, originated at that 75 to 85 percent band, and what proportion would be the income-generating loan in the book?

Bhaskar Narayan Basu: Got it. And what proportion of your book will be, say, originated at that 75% to 85% band? And what proportion would be the income generating loan in the book?

Speaker #6: That, that can be shared separately.

V.P. Nandakumar: That can be shared separately.

Bhaskar Narayan Basu: Yeah.

Speaker #4: Yeah.

Speaker #6: Yeah. We have to take that and accept that.

V.P. Nandakumar: We have to take that separate.

Speaker #4: Okay. And any what would be your branch expansion plans for this year and any acceleration expected?

Bhaskar Narayan Basu: Okay. What would be your branch expansion plans for this year? Any acceleration expected?

Speaker #6: No. One good news for us is the requirement of prior approval from RBA has been removed. This procedure facilitates the opening of the branches so we have the plan to open around 500 branches now.

V.P. Nandakumar: No. One good news for us is, the requirement of prior approval from RBI has been removed. This facilitates the opening of the branches. We have the plan to open around 500 branches now. We are at stream now already. We are progressing in that stream.

Speaker #6: We are that stream now already progressing in that stream.

Speaker #4: Sorry, 500 branches for this year?

Bhaskar Narayan Basu: Sorry, 500 branches for this year?

Speaker #6: Yes, that is the plan. That is what is planned.

V.P. Nandakumar: Yes. That is what is planned.

Speaker #4: And would this all be in standalone, or would this also include Ashivan?

Bhaskar Narayan Basu: Would this all be in standalone or would this also include Asirvad?

V.P. Nandakumar: No, this is for Manappuram. For other businesses like home finance or MFI, they have their own plans.

Speaker #6: No, this is for Manappuram. For other businesses like Hope Finance or MFI, they have their own plans.

Speaker #4: I mean, these are gold loan branches. Gold loan branches.

Bhaskar Narayan Basu: No, I mean within the gold loan branches.

V.P. Nandakumar: Yep. Yes.

Speaker #6: Yeah. Yes. Yes. Yes.

Speaker #4: So, Ashivan gold loan branches expansion will be on top of this, or is this part of that 500 for the group?

Bhaskar Narayan Basu: So Asirvad gold loan branching expansion will be on top of this, or this is part of that 500 for the group?

Speaker #6: Yeah, yeah. All these—Manappuram Finance and Asirvad—all these will come under this 500. Yeah, this is the plan.

V.P. Nandakumar: Yeah. All these Manappuram Finance and Asirvad or all these will come under this 500. This is the plan.

Speaker #4: Okay. Got it. And on the cost of fund sorry. Sorry. Please go.

Bhaskar Narayan Basu: Okay, got it. And on the cost of. Sorry. Please go.

V.P. Nandakumar: For gold loan.

Speaker #6: Gold loan. Yeah. This is for gold loan. Yeah.

Bhaskar Narayan Basu: Yeah.

V.P. Nandakumar: This was for gold loan.

Speaker #4: Yeah. Yeah. Got it. Got it. And my last question is on the cost of fund. We've seen about 20 bids increase. In standalone where do you see this settling?

Bhaskar Narayan Basu: Yeah, got it. My last question is on the cost of fund. We have seen about 20 basis increase in standalone. Where do you see this settling, and does it go up further in the next quarter?

Speaker #4: Does it go up further in the next quarter?

Speaker #6: So Gurneesha so in terms of cost of fund you know given the overall environment where we have seen you know spikes in terms of the rates in the shorter end we have seen a spike in the rates we have seen you know by far also at you know all time high levels.

Buvanesh Tharashankar: Bhuvanesh here. In terms of cost of fund, given the overall environment where we have seen spikes in terms of the rates in the short term, we have seen a spike in the rates, we have seen Q4 also at all-time high levels. Despite that, Q1 we have been able to manage from a cost of fund perspective, we have been able to keep it fairly under control. We continue to monitor and see in terms of opportunities that will arise in future and we will work on that. It is very difficult to put a number in terms of where this will settle in. Having seen that these are elevated currently, we could expect some of this coming into our cost of fund as well. But it is very difficult to predict where this will be.

Speaker #6: So, despite that, you know, in the first quarter we've been able to manage—from a cost of funds perspective—we've been able to keep it fairly under control.

Speaker #6: We continue to monitor and see, in terms of, you know, opportunities that will arise in the future, and we'll work on that. It's very difficult to, you know, put a number or say where this will settle in.

Speaker #6: But having seen that, you know, these are elevated currently, we could expect, you know, some of this coming into our cost of funds as well.

Speaker #6: But it's very difficult to, you know, predict where this will be.

Speaker #4: Okay. But some sense on where your marginal funding cost is versus the average of about 8.8. Incremental basis.

Bhaskar Narayan Basu: Okay. But some sense on where your marginal funding cost is versus the average of about 8.8%? Incremental basis.

Speaker #6: On an incremental basis I would say you know we will be around the 8.8 900. Is what I would look at.

Buvanesh Tharashankar: On an incremental basis, I would say we will be around the 8.8, 9 handle, is what I would look at.

Speaker #4: Okay, thank you. That's all from my side.

Bhaskar Narayan Basu: Okay. Thank you. That is all from my side.

Speaker #1: Thank you. The next question comes from the line of Kushin Parekh with Morgan Stanley. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Kushan Parekh with Morgan Stanley. Please go ahead.

Operator: Thank you. The next question comes from the line of Kushan Parekh with Morgan Stanley. Please go ahead.

Kushan Parekh: Thank you for taking my question. My first set of questions is on the gold loan space. Going forward, we have the branch addition plan for gold loans, but gold prices have been pretty muted in this year. Keeping that in mind, what is the gold loan growth guidance that you would like to give for FY27? Also on the yields. We have seen yields declining consistently, but this quarter they have come back up. What is the steady state gold loan yields that we should think about going forward from here on? Those are my two questions on the gold loan.

Speaker #5: Thank you for taking my question. My first set of questions is on the gold loan space. Going forward, I mean, we have the branch addition plan for gold loans.

Speaker #5: But gold prices have been pretty muted this year. Keeping that in mind, what is the gold loan growth guidance that you would like to give for FY27?

Speaker #5: And also on the yields, we have seen yields declining consistently, but this quarter they have come back up. What is the steady-state gold loan yield that we should think about going forward from here on?

Speaker #5: Those are my two questions on the gold loan.

V.P. Nandakumar: We expect the yield to be somewhere around 18%, may go down by 20 basis points or go up by 20 basis. Beyond that, we do not expect anything. So it will be around 18%. The branch expansion plan and price remains stagnant. The price is not a factor which is determining our branch expansion. Branch expansion, the scope is there because there are many places we are not represented, and we have potential for growth. Those places are selected, personally identified, and selected for the branch office.

Speaker #6: Yes. But the yield to be somewhere around 18 percent. Go down by 25 basis points or go up by 25 percent. Beyond that we don't expect anything.

Speaker #6: So it will be around 18 percent. And the branch expansion plan and price remains stagnant. That is you know I'm not the price is not a factor which is determining branch expansion.

Speaker #6: Branch expansion the scope is there because there are many places where we are not represented and where potential for growth. Those places are selected identified and selected for branch operations.

Speaker #4: I just want to know, what is the gold loan growth guidance that you would like to give for FY27?

Kushan Parekh: Understood, sir. What is the gold loan growth guidance that you would like to give for FY27?

V.P. Nandakumar: We have grown around nearly 12% at Q1. Our expectation for growth of gold loan this year is around 30%, because some quarters are per season, some quarters are off seasons. So we expect that to be somewhere between 15% to 30%.

Speaker #6: We have grown around 12 percent, nearly 12 percent, in Q1. Our expectation for growth of gold loans this year is somewhere around 30 percent.

Speaker #6: Yeah, because some quarters are the season and some quarters are off-season, so we expect that to be somewhere between 25 to 30 percent.

Speaker #4: Understood sir. Thanks sir.

Kushan Parekh: Understood, sir. Thanks. Just one more question on the non-gold businesses. The vehicle finance, MSME, and home loan businesses have been in a growth moderation phase for a few quarters now. When should we expect them to turn towards growth, and what are our plans for those segments?

Speaker #5: Just one more question on the non-gold businesses. The vehicle finance MSME and home loan businesses have been in a growth moderation phase for a few quarters now.

Speaker #5: When should we expect them to turn towards growth, and what are our plans for those segments?

V.P. Nandakumar: We have temporarily stopped the vehicle lending, vehicle finance, and we are focusing on collection. Our collections are improving because of improved focus, et cetera. The other businesses like mortgage-based loans, et cetera, it has started picking up and the asset quality is the more focus. Microfinance also, our focus is on the quality. Yes, we are complying with our SRO norms, et cetera. The growth will remain at a level of, I feel like INR 400 to 500 crores disbursement in my MFI file.

Speaker #6: So, we have temporarily stopped vehicle lending and vehicle finance. We are focusing on collections now. Our collections are improving because of the increased focus, etc.

Speaker #6: The other businesses like mortgage mortgage based loans etc. Yes. It is it's at a startup picking up. And the asset quality is the more focus.

Speaker #6: Microfinance also—yeah, our focus is on the quality. Yes, we are complying with the SRO norms, etc. And yeah, the growth will remain at a level of, I feel, ₹400 to ₹500 crore.

Speaker #6: This person. In my MFI.

Speaker #5: Understood. Thank you, sir. Just one last data-keeping question: if you could provide the gold loans by ticket size, that would be helpful. Yeah.

Kushan Parekh: Understood. Thank you, sir. Just one last data keeping question. If you could provide the gold loans by ticket size, that would be helpful. I will just stop here.

Speaker #5: I'll just talk to you.

[Company Representative] (Manappuram Finance): Up to INR 1 lakh, it is 21%. INR 1 lakh to 3 lakh, it is 30%. Above INR 3 lakh, it is 49%.

Speaker #6: Up to 1 lakh it is 21 percentage. 1 to 3 lakh it is 30. About above 3 lakh it is 49 percent.

Speaker #5: Thank you sir.

Kushan Parekh: Thank you, sir.

Speaker #1: Thank you. The next question comes on the line of Gaurav with Capital Farming Consultants. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Gaurav with Capital Farming Consultants. Please go ahead.

Operator: Thank you. The next question comes from the line of Gaurav with Capital Farming Consultants. Please go ahead.

Speaker #4: Yeah. Hi. Thanks for the opportunity. I have questions on two one on the gold loan segment and then another one on the microfinance. On the gold loan if I heard correctly we are expecting to open 500 new branches during FY27.

[Analyst] (Capital Farming Consultants): Yeah, hi. Thanks for the opportunity. I have questions, one on the gold loan segment and another one on the microfinance. On the gold loan, if I heard correctly, we are expecting to open 500 new branches during FY27. Is that the correct statement?

Speaker #4: Is that the correct statement?

Speaker #6: Yes. Yes.

V.P. Nandakumar: Yes.

Speaker #4: Okay. Whenever this is going through the presentation, I noticed that I think in Q1 we have added 10 branches, if I'm not wrong.

[Analyst] (Capital Farming Consultants): Okay.

V.P. Nandakumar: Sure.

[Analyst] (Capital Farming Consultants): When I was just going through the presentation, I noticed that, I think in Q1, we have added 10 branches, if I'm not wrong. Considering that, 10 branches in Q1, is the remaining 490 branches across three quarters, is it officially feasible or am I reading something wrong?

Speaker #4: So, considering that 10 branches in Q1, that's the remaining 490 branches across three quarters. Is it officially feasible, or am I reading something wrong?

V.P. Nandakumar: The circular has come. After the circular removing the prior approval requirement, we initiated the process. During the initial months, it will be low, but it will pick up. It is steadily picking up. You will see a good improvement during the second quarter. We are confident of reaching that target of 500 branches, full loan branches.

Speaker #6: The circular has come after the circular removing the prior approval requirement. We initiated the process, so during the initial months it will be low, but it will pick up.

Speaker #6: It is steadily picking up. You will see a good improvement during the second quarter, and we are confident about reaching that target of 500 gold loan branches.

Speaker #4: Okay. That's great. So 500 branches is a feasible number threshold. That's great. On the on the microfinance side when we look at the quarter on quarter numbers right Q4 of FY26 versus Q1 of FY27 I hope I'm audible right?

[Analyst] (Capital Farming Consultants): Okay, that's great. 500 branches is a feasible number of fresh branches.

V.P. Nandakumar: Yeah.

[Analyst] (Capital Farming Consultants): That's great. On the microfinance side, when we look at the quarter-on-quarter numbers, Q4 of FY26 versus Q1 of FY27. I hope I am audible. Right?

Speaker #6: Yeah. Audible. You're audible.

[Company Representative] (Manappuram Finance): Yeah, audible.

[Analyst] (Capital Farming Consultants): It seems that again, losses and provisions have increased in Q1 of FY27 versus Q4 of FY26. Any specific reason why again, the provisions have increased in microfinance or I would say Asirvad Microfinance?

Speaker #4: So, so, so it seems that again losses and provisions have increased, right, in Q1 of FY27 versus Q4 of FY26. So, any specific reason why again the provisions have increased in microfinance—or, I would say, should I ask about microfinance?

Speaker #6: So, business here. In Q4, there were one-timers in terms of releases. I think Q1 is more representative of a normalized provision cycle.

Buvanesh Tharashankar: Bhupesh here. In Q4, there were one-timers in terms of releases. I think Q1 is more representative of a normalized provision cycle. This would be where the provisions are. Q4 had a one-timer. Obviously, it was in single digits, I think 9 crores or something. There were some one-off credits that we had, which is why the Q1 is a more normalized number that you are seeing.

Speaker #6: So, this would be, you know, where the provisions are. Q4 had a one-timer; obviously, it was in single digits—I think ₹9 crore or something.

Speaker #6: There were some one-off, you know, credits that we had, which is why Q1 is a more normalized number that you'll see.

Speaker #4: That's great. And within microfinance, or I would say Aashirwad, most of the borrowing seems to be a little bit on the higher side because it's the cost of borrowing that we have in mind. Manappuram as a standalone entity.

[Analyst] (Capital Farming Consultants): Okay. And within microfinance, or I would say Asirvad, cost of borrowing seems to be on a little bit on a higher side because of the cost of borrowing that we have in Manappuram as a standalone entity. Now considering that the kind of loan book, or I would say the asset side that we have, that has drastically changed. Now we have almost 30% plus in the gold loan in Asirvad Microfinance side. Is there any opportunity that we can further negotiate with our lenders, or there is a scope of a reduction in cost of borrowing considering our lending profile in Asirvad now onwards?

Speaker #4: And now considering that the kind of loan book or I would say the asset side that we have that is drastically changed. Now we have almost 30 percent plus in the gold loan in Aashirwad microfinance right.

Speaker #4: So, is there any opportunity that we can further negotiate with our lenders, or is there a scope for reduction in the cost of borrowing, considering our lending profile in Aashirwad now onwards?

Speaker #6: Yes. Yeah. Certainly there is a window of opportunity and you rightly pointed out when you have over 30 percent of our book in the secured gold loan it gives us definitely an opportunity to go back to our lenders and negotiate credits for a better cost of borrowing.

Buvanesh Tharashankar: Yeah. Certainly, there is a window of opportunity, and you rightly pointed out when we have over 30% of our books in the secured gold loan, it gives us definitely an opportunity to go back to our lenders and negotiate prices for a better cost of borrowing, which we are actively in play.

Speaker #6: Which we are, we are actively in place. If you allow me one more question.

[Analyst] (Capital Farming Consultants): Okay. If you allow me one more question. In presentation, you have mentioned that in Q1, you have started lending in Manappuram Home Finance also, right? Is it a pure play like it will be sitting on the books of Manappuram Home Finance, or it is again kind of a co-lending model like we have between Manappuram Finance and Asirvad Microfinance? What would be the target of having the gold loan book in Manappuram Home Finance going forward?

Speaker #4: In the presentation, you mentioned that in Q1 we have started lending in Manappuram Housing Finance also, right? So, is it a pure play, meaning it will be sitting on the books of Manappuram Housing Finance, or is it again a kind of co-lending model like you have between Manappuram Finance and Asirvad Microfinance?

Speaker #4: And what would be the target for the gold loan book in Manappuram Housing Finance going forward?

Speaker #6: So it will be certainly be within the limit of qualifying assets. Yeah. Qualifying asset will be will always be maintained.

V.P. Nandakumar: It will certainly be within the limits of qualifying assets, yeah. Qualifying asset will always be maintained.

Speaker #4: No. Will it be a kind of co-lending model, or will you be underwriting on the books of Manappuram Housing Finance only?

[Analyst] (Capital Farming Consultants): Will it be kind of a co-lending model or you will be underwriting on the books of Manappuram Home Finance only?

Speaker #6: Yeah, yeah. We will resort to the co-lending model also. Not only with the parent company, but with the banks also. We have approached the banks also, in Manappuram Home Finance also.

V.P. Nandakumar: Yeah, we will resort to co-lending model also, not only with the parent company, with the banks also. We have approached the banks also in Manappuram Finance also for co-lending with the banks.

Speaker #6: For co-lending with the banks.

Speaker #4: Thanks Anika. Thank you.

[Analyst] (Capital Farming Consultants): Thanks a lot. Thank you.

Speaker #1: Thank you. The next question comes from Anoop Jan with ValueQuest Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Anuj Jain with ValueQuest Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Anuj Jain with ValueQuest Capital. Please go ahead.

Speaker #4: Hi sir, thanks for the opportunity. I have one question: what is the new management's long-term strategy with respect to the microfinance business? Do we intend to grow its share of the portfolio like it was a few years earlier, or to maintain it at the current levels, or do we have any strategy or thinking to reduce the exposure going forward?

Anuj Jain: Hi, sir. Thanks for the opportunity. I have one question, what is the new management's long-term strategy with respect to microfinance business? Do we intend to grow its share of the portfolio like it was a few years earlier or to maintain at the current levels? Do we have any strategy or any thinking to reduce the exposure going forward? What is the long-term strategy for microfinance business?

Speaker #4: So, what is the long-term strategy for the microfinance business?

V.P. Nandakumar: I will tell at the group level, we want to contain microfinance asset below 10% at the consolidated level. We want to grow that along with the overall growth, but it is a stable banner where the asset quality is the prime concern. We stick to the asset quality, and we always wanted to have prudent growth in MFI portfolio.

Speaker #6: So I will tell that the group level we want to contain microfinance below 10 percent. That's a control data level. And we we want to grow that along with our overall growth but it is a stable manner where the asset quality is the prime concern.

Speaker #6: So we stick to the asset quality and we always wanted to have a proven growth in MFI portfolio.

Speaker #4: Understood. Thank you.

Anuj Jain: Understood. Thank you.

Speaker #1: Thank you. The next question comes from Anshuman Dev with ICICI Securities. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Ansuman Deb with ICICI Securities. Please go ahead.

Operator: Thank you. The next question comes from the line of Ansuman Deb with ICICI Securities. Please go ahead.

Speaker #5: Yeah. Hi good evening and thanks for the opportunity. So I have two questions. One is on the branch opening. So I think you know this is a in the past we have seen branches has been one of the big believers of volume growth.

Ansuman Deb: Yeah. Good evening, and thanks for the opportunity. I have two questions. One is on the branch opening. I think in the past, we have seen branches has been one of the big drivers of volume growth. With 500 branches, if you can share some color in terms of where these branches will open and any view on branches opening possibility in the next 1, 2 years. That will be the first question. The second is on the strategic priority, which was set 2, 3 quarters back. If you can give us any progress that has been done till now. I am sure there would have been lots of work which was done, but some discussion around that would be very helpful. Thank you.

Speaker #5: So, with 500 branches, if you can share some color in terms of where these branches will open and any view on branch opening possibilities in the next one to two years.

Speaker #5: That will be the first question. The second is on the strategic priorities. Which was set like two three quarters back. If you can give us any progress that has been done till now I'm sure there would have been lots of work which has done.

Speaker #5: But some discussion around that would be very helpful. Thank you.

V.P. Nandakumar: The branch opening, we have assessed where the growth possibility is higher. I can say yes, around 60% will be in South and Central India. That is five states of South India plus Maharashtra. Some, say 30% will be in eastern states like Bihar, West Bengal, Odisha, etc., where we are seeing good potential, and the balance in rest of India.

Speaker #6: Regarding branch openings, yes, we have assessed whether the growth possibility is higher. So, I can say that around 60 percent will be in South and Central India.

Speaker #6: That is five states of south India. Plus Maharashtra. And some say some that 25 percent would be in eastern states like Bihar West Bengal Odisha etcetera.

Speaker #6: That we have seen good potential. And the balancing rest of India.

Speaker #4: Answer on any any anything beyond that 500. Is it a one two year thing you expect more branches to continue to open?

Ansuman Deb: And, sir, on anything beyond that 500, is it a 1, 2-year thing we expect more branches to continue to open?

Speaker #6: Okay, yeah, yeah. So our present target is around 500 branches, and after that we'll examine and proceed.

V.P. Nandakumar: Our present target is around 500 branches. After that, we will examine and proceed.

Speaker #4: Thanks. And on the second question? Yeah. So my my question was on the strategic priorities. I think we have set some priorities that you already mentioned that MFI business being less than 10 percent.

Ansuman Deb: Thanks. On the second question?

V.P. Nandakumar: What was the second question?

Ansuman Deb: My question was on the strategic priorities. I think we have set some priorities, and you already mentioned that NFI business being less than 10%, that is one of the things.

Speaker #4: That was one of the things.

Speaker #6: Yeah. I'm very happy to say that our focus will be more on gold loan. So we want to maintain over 75 to around 75 to 80 percent of the control data AEM in gold.

V.P. Nandakumar: Yeah. I am happy to say that our focus will be more on gold loan. We want to maintain around 75% to 80% of the control data AUM in gold. The balance would be either of prime trust would be secured lending, like market-based MSME lending, plus affordable housing. This will be this. We are not giving any priority during this year. We do not want to disburse any more vehicle loans during this year. After 1 year, that probably in FY28, et cetera, we may consider whether to restart or not. As I said, the microfinance will be contained between 8% to 10%. That will be the cap on a consolidated basis we will put.

Speaker #6: And the balance would be, yeah, the prime trust would be secured lending, like the mortgage-based MSME lending, plus affordable housing. This will be, yes.

Speaker #6: We are not giving any priority during this year. We don't want to disburse any more vehicle loans during this year. After one year, then probably MFI 28, etcetera, we may consider whether to restart or not.

Speaker #6: So, as I said, the microfinance will be contained between 8% and 10%. That will be the cap on a consolidated basis we will put.

Speaker #4: Answer on the like OPEX. You know efficient you you also had some I think digital digitization OPEX will be expect I believe some efficiency on those front.

Ansuman Deb: And sir, on the OPEX efficiency, you also had some, I think, digital efficiencies in OPEX. We expect some efficiency on those front.

V.P. Nandakumar: Surely. Because our AUM per branch is growing. It has grown considerably high. You can see the OPEX also, OPEX to AUM is also steadily coming down. We hope to improve that going forward.

Speaker #6: Totally. Because our AEM per branch is growing. It has grown considerably high. So you can see the OPEX—also, OPEX to AEM—is steadily coming down.

Speaker #6: We hope to improve that going forward.

Speaker #4: Great sir. Thank you. Thank you so much. We'll get back in detail.

Ansuman Deb: Great, sir. Thank you. Thank you so much. I appreciate that.

Speaker #1: Thank you. The next question comes from the line of Pradeep Agarwal with 361 Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Pradeep Agarwal with 360 ONE. Please go ahead.

Operator: Thank you. The next question comes from the line of Pradeep Agarwal with 360 ONE. Please go ahead.

Speaker #5: Yeah. Hi, sir. Congratulations on the good sales numbers. So, I have a couple of questions. One, you know, as we have seen, the gold loan market has evolved manyfold over the last four or five years.

Pradeep Agarwal: Yeah, hi sir. Congratulations on good set of numbers. I have a couple of questions. One, as we have seen, the gold loan market has evolved manifold over the last 4 to 5 years. Have you seen any change or drastic change in the customer profile? Earlier, you used to comment that about one-third business used to come for emergency use, one-third for agri, and one-third for business. Are you seeing any change in that end-use proportion? Because what we have seen is the proportion of higher ticket size customers has increased significantly, not only for us, but for the industry as a whole. First question on that. Yeah.

Speaker #5: Have you seen any change or drastic change in the customer profile? So like earlier we used to comment at about one third business you used to come from for emergency use one third for every and one third for business.

Speaker #5: So, are you seeing any change in that end-use proportion? Because, you know, what we have seen is that the proportion of higher ticket size customers has increased significantly.

Speaker #5: Not only for us, but for the industry as a whole. So, first question on that. Yeah.

Speaker #6: Earlier this was seen as a business product. Now with the publicity given by all institutions including banks more and more business people for particularly MSME they are availing the loan.

V.P. Nandakumar: Earlier, this was seen as a business product. Now, with the publicity given by all institutions, including banks, more and more business people, particularly MSME, are availing the loan. The government's intention and also regulators' intention is to encourage MSME lending using gold as collateral. Because otherwise, the gold is lying idle with them in their lockers, et cetera. To bring that idle gold into MSME funding is a priority of the policymakers. Based on this encouragement, that is why the RBI has gone a little liberal in permitting the gold loan companies to open more branches without any prior approval, which was the case earlier, et cetera. Also promoting internal generating gold loan, where there is no LTV, even though we have capped at 85% based on cash flow, et cetera. All these initiatives are from the regulator on the regulatory side.

Speaker #6: And the government's intention, and also the regulators' intention, is to encourage MSME lending using gold as collateral. Otherwise, the gold is lying idle with them in their lockers, etcetera, etcetera.

Speaker #6: To bring that idle gold into MSME funding is the prior is a priority of the policy makers. So based on the certain arrangement that's why the RBA has gone a little liberal in permitting the gold loan an companies to open more branches without any prior approval which was produced earlier etcetera.

Speaker #6: And also promoting intelligent rating gold loan, where there is no LTV, even though we have capped it at 85 percent based on cash flow, etcetera, etcetera.

Speaker #6: So all these initiatives are from the regulator the regulator's side. Yes. So it is the cap the profile of the customer is moving to the business class.

Pradeep Agarwal: Yes.

V.P. Nandakumar: So really, the profile of the customer is moving to the business class.

Speaker #4: So, does that mean that you have about 49 percent of the portfolio in more than the three lakh ticket size? So, what would be the yield difference between, say, in that segment—say, above three lakh ticket size customers—and, say, in the one to three lakh ticket size?

Pradeep Agarwal: Does that mean that about 14% of the proportion into more than INR 3 lakh ticket size? What would be the yield difference between, say, in that segment, say above INR 3 lakh ticket size customers and, say, in INR 1 lakh to INR 3 lakh ticket size? Because I am assuming that this higher INR 3 lakh plus ticket size would be largely business use, right?

Speaker #4: Because I'm assuming that you know this higher, three-lakh-plus ticket size would be largely business use, right?

Speaker #6: Yes, so the yield there will be... So, there is—it remains, the mix remained more or less the same, okay? But consider the mix only.

V.P. Nandakumar: The yield there will be. The mix remained more or less the same.

V.P. Nandakumar: Okay.

V.P. Nandakumar: Considering the mix only, we expect the yield to be around 18%.

Speaker #6: We expect the yield to be around 18%.

Speaker #4: Okay. Okay. Okay.

Pradeep Agarwal: Okay.

Speaker #6: Yeah. We we know that when yeah we we have the mix also. So all we mix also yeah this is the expectation yeah at least during the next one year.

V.P. Nandakumar: We know the trend. We know the mix also. With the evolving mix also, this is our expectation, at least during the next one year.

Pradeep Agarwal: Okay. Secondly, as the competition has increased manifold, are we facing any challenges on the employee side? Has the attrition increased or how that has moved over the last, say, two, three years? Some color on that.

Speaker #4: Okay. Secondly, you know, as the competition has increased many fold, are we facing any challenges on the employee side? Has the attrition increased, or how has that moved over the last, say, two or three years?

Speaker #4: Some color on that?

Speaker #6: Yes, so we—we don't face, we are not facing challenges in recent times. Actually, the equation has come down because of many policy changes we made, etcetera. The equation has actually come down.

V.P. Nandakumar: We are not facing any challenge in the recent times. Actually, the attrition has come down now. Because many policy changes we made, et cetera, the attrition has actually come down. We are not seeing any attrition at the top level, who are handling gold loan.

Speaker #6: We are not seeing any accretion at the top level. We are handling gold loans.

Speaker #4: Okay. Any number you would like to give at the branch level, you know, what?

Pradeep Agarwal: Any number you would like to give at the branch level?

Speaker #6: Yeah. Our accretion level remained around 2 to 2.5% per month. Yeah. And it has not, it is not grossing even now.

V.P. Nandakumar: Our attrition level remained around 2% to 2.5% per month. Yeah. It has not crossed even now.

Speaker #4: Okay. Okay. Okay. Okay. And lastly you know any any guidance you would like to give you know in terms of ROA and ROE where do you see you know once our business stabilizes in terms of since the on the yield side it has largely stabilized so where do you see your ROE ROE stabilizing say over the course of next few years?

Pradeep Agarwal: Okay. Lastly, any guidance you would like to give in terms of ROA and ROE? Where do you see, once our business stabilizes in terms of, since on the yield side it has largely stabilized. So where do you see your ROA, ROE stabilizing over the course of next few years?

Speaker #6: So our we are targeting an ROE from three point five four five percent to four percent. And targeting an ROE of yeah sixteen to fifteen to eighteen percent.

V.P. Nandakumar: We are targeting an ROA from 3.5% to 4%, and targeting an ROE of 15% to 18%, which is the ROE target.

Speaker #6: The ROE target.

Speaker #4: Okay. Okay. Okay. Okay. And and any time frame you would like to give you know how by when you?

Pradeep Agarwal: Okay. Any time frame you would like to give? By when you would

Speaker #6: Yeah. We we expect we expect the ROA and ROE is to consistently improve. And in three years our expectation is to take that to ROE to around eighteen percent.

V.P. Nandakumar: Yeah, we expect the ROAs and ROEs to consistently grow. In three years, our expectation is to take that ROE to around 18%.

Speaker #4: Okay, okay, okay. Good to hear that. Yeah, that's it from my side. Thank you so much, and best of luck for the next quarter.

Pradeep Agarwal: Okay. Good to hear that. That's it from my side. Thank you so much, and best of luck for the next quarter.

Speaker #1: Thank you. The next question comes from the line of Sripal Doshi with Equiris. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Sripal Doshi with Aquarius. Please go ahead.

Operator: Thank you. The next question comes from the line of Sripal Doshi with Aquarius. Please go ahead.

Speaker #5: Hi sir. Thank you for giving me the opportunity again. I just had a question that the the what is the yield differential at blended level for income generating loans and for the consumer gold loan?

Sripal Doshi: Hi, sir. Thank you for giving me the opportunity again. I just had a question that what is the yield differential at blended level for income generating loans and for the consumer gold loan?

Shripal Doshi: Hi, sir. Thank you for giving me the opportunity again. I just had a question that what is the yield differential at blended level for income generating loans and for the consumer gold loan?

V.P. Nandakumar: The income generating-

Speaker #6: The income generating, like ticket-wise, is fifty to seventy-five bps higher in income-generating loans.

Sripal Doshi: I suppose ticket size 50 to 75 bps higher in income generating loan.

Shripal Doshi: I suppose ticket size 50 to 75 bps higher in income generating loan.

Speaker #5: Okay. Okay. So it's higher versus the consumer loan right? The income generating loan fifty to seventy five bits points.

Pradeep Agarwal: Okay. So it is higher versus the consumer loan, right? The income generating loan, 50 to 75 bps.

Speaker #6: Yeah.

Sripal Doshi: Yeah.

Shripal Doshi: Yeah.

Speaker #5: Fifty to and then as a thought process like what percentage of our portfolio would we want to have this coming from income generating loan as as a segment that's in the next one year time period?

V.P. Nandakumar: 50 to 75.

Sripal Doshi: As a thought process, what percentage of our portfolio would we want to have this coming from income generating loan as a segment that is in the next one-year time period, as that is a new segment we are scaling up.

Shripal Doshi: As a thought process, what percentage of our portfolio would we want to have this coming from income generating loan as a segment that is in the next one-year time period, as that is a new segment we are scaling up.

Speaker #5: Is that the newer segment we scaling up?

Speaker #6: So, it all depends. The comfort we are getting is that we are continuously watching this portfolio. So now, whatever we have given, the experience is very good.

V.P. Nandakumar: So all depends on the comfort we are getting. We are continuously watching this portfolio. So we are now, whatever we have given, the experience is very good. So in spite of that, we have not gone beyond 88%, even though we have seen some lending institutions lending even more than that. So we have restricted to that. So the LTV there also ranges from 75% to 85% based on the assessment of the party and the cash flow. So its creditworthiness, everything. Just like any other loan which are granted based on the cash flow.

Speaker #6: So, in spite of that, we have not gone beyond 81 percent, even though we have seen some lending institutions lending even more than that.

Speaker #6: We are restricted to that. So the LTV there also ranges from yeah seventy five to eighty five based on the assessment of the party and the cash flow.

Speaker #6: It's credit to optimize everything, just like any other loan which is granted based on the cash flow.

Speaker #4: Okay. But as a so okay. We don't have any clear thought process as as yet on on in terms of the mix.

Sripal Doshi: Okay. But as a thought process. So okay, we do not have any clear thought process as yet on the mix.

Shripal Doshi: Okay. But as a thought process. So okay, we do not have any clear thought process as yet on the mix.

V.P. Nandakumar: Yeah, because these products are just started. So we are continuously watching. Our experience remains very good. Also, we are not strictly fixed in it because the portfolio is still very small compared to the overall portfolio.

Speaker #6: Yeah. Because some these products are just captured. So we we are we are continuously watching the our experience remains very good. Yeah. So we are not strictly fixed anything.

Speaker #6: So because the portfolio is still very small compared to the overall portfolio.

Sripal Doshi: Got it. Okay, sir. Thank you so much for answering my questions, sir. Good luck.

Shripal Doshi: Got it. Okay, sir. Thank you so much for answering my questions, sir. Good luck.

Speaker #4: Got it. Got it. Okay sir. Thank you so much for answering your our question sir.

Speaker #1: Thank you. The next question comes from the line of Sanke Chera with Dam Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Sanket Chheda with DAM Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Sanket Chheda with DAM Capital. Please go ahead.

Speaker #5: Yeah. Hi sir. Congrats on good set of numbers. I just wanted to check on the new CEO. If you can just elaborate on which all segments he has looked after in his last ten to fifteen years or the ten years of staying at IDFC Bank.

Sanket Chheda: Yeah. Hi, sir. Congrats on good set of numbers. I just wanted to check on the new CEO, if you can just elaborate on which all segments he has looked after in his last 10 to 15 years or the 10 years of staying at IDFC FIRST Bank. We have just certain retail liability, but what we found common or suitable experience in the candidate that could really help us. I just wanted to get a sense on which all segments he has looked after in his previous stints.

Speaker #5: We have just written retail liability, but what we found common or suitable experience in the candidate that could really help us. So just wanted to get a sense on which all segments he has looked after in his previous things.

V.P. Nandakumar: He has wide experience, 25 years with multiple lending institutions. He has both worked on the liability side as well as the retail lending side. His experience is good. Yeah, he has worked in full term India as in the NBFC. He has worked in the other NBFCs and banks. His experience in retail lending is good.

Speaker #6: Yes. Wide experience twenty five years in with multiple lending institutions. He has both worked on the liability side as well as retail lending side.

Speaker #6: Experience is good. Yeah. He he has worked in Fullerton India. As in the NBFC he has worked in the other NBFCs and banks. His experience is retail lending is good.

Sanket Chheda: Okay, sure sir.

Speaker #5: Okay. Sure. Sure.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for their closing comments.

Operator 2: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for their closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for their closing comments.

Speaker #5: Thank you so much. You have asked many relevant questions, which we have tried to answer with the data we have. And yeah, for those who wanted more detail, you can remain in touch with us.

V.P. Nandakumar: Thank you so much. You have asked many relevant questions, which we try to research the data we have. Those who want more details, you can remain in touch with us. Thank you.

Speaker #5: Thank you.

Speaker #1: Thank you, sir. On behalf of Manappuram Finance and Motilal Oswal, that concludes this conference. Thank you for joining us. You may now disconnect.

Operator 2: Thank you, sir. On behalf of Manappuram Finance and Motilal Oswal Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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

Browse all earnings call transcripts

Q1 2027 Manappuram Finance Ltd Earnings Call

Request TrialDemo

Manappuram Finance

Earnings