Hi. Very good evening to all of you.

We have with us the entire management team of Manappuram today to discuss their Q3 results. With us we have V.P.

Nandakumar, who is the Chairman and MD; then Dr. Sumitha Nandan, who is an ED; Mr.

Deepak Reddy, who is a CEO; Ms. Bindu A.L., who is the CFO; [unclear]

Is it audible now?

Yeah. Praveen P.S., CEO Manappuram Home Finance; and Mr.

Robin Karuvelil, CFO Manappuram Home Finance. Without further ado, I'll hand the call over to Mr.

V.P. Nandakumar for their opening remarks, after which we'll follow up with question and answers, which would be say conveyed by Deepak Reddy sir and Sumitha Nandan ma'am also.

Over to you, Nandakumar sir, for your opening remarks.

Thank you. Good evening, ladies and gentlemen.

It's a pleasure to welcome you to Manappuram Finance Q3 FY '26 earnings conference call. Firstly, I would like to thank our investors and analyst friends for their continued interest, engagement, and valuable insights, which remain integral to our journey of building a resilient and sustainable financial institution.

Economic scenario: The Indian economy, underpinned by strong domestic consumption, has remained resilient amid global geopolitical uncertainties and imposition of tariffs. Historically, high GST collection, PMI showing an expansionist view, strong vehicle sales, etc., retrace the resilience of the Indian economy.

Our economy is projected to grow at 7.2%, making it one among the fastest growing economies in the world. With government policies favorable for growth, NBFCs play a significant role in the growth story by ensuring financial inclusion and easy accessibility to funds.

Manappuram is well-positioned to ride the growth curve through its flagship product, gold loans, and offering MSME, microfinance, and home loans mainly to cater to small businesses and individuals at the bottom of the pyramid. Operating environment: The third quarter of FY '26 unfolded against a mixed operating backdrop for the NBFC sector.

While macroeconomic indicators, particularly consumption, demand, and rural activity, showed grudging improvement, the lending environment remained competitive and tightly regulated with heightened emphasis on asset quality, pricing discipline, and regulatory compliance. From a sectoral perspective, gold loans continue to demonstrate resilience, supported by favorable gold prices and steady demand for short-tenure, secured credit.

At the same time, certain unsecured and semi-secured segments across the industry, notably microfinance, continued to face challenges with borrower cash flows and collection efficiencies under close monitor. Financial performance overview: For Q3 FY '26, Manappuram Finance delivered a stable and measured performance, anchored by the strength of our gold loan franchise and disciplined risk management across portfolios.

On a consolidated basis, we have reported a consol AUM of 52,125 crore, up by 13.8% Q-o-Q and 7 point 17.9% Y-o-Y, driven primarily by expansion in gold loan AUM. Our consolidated gold loan AUM for the quarter was 38,764 crore, up by 23% Q-o-Q and up by 58.2% Y-o-Y, supported by gold price and strong customer demand.

Consolidated gold tonnage was 58.9, up by 3.2% Q-o-Q and up by 2.8% Y-o-Y. Consol PAT for the quarter was 239 crore, up by 9.8% Q-o-Q and down by 14.3% Y-o-Y.

Our 9 months ended consol PAT was standing at 588 crore. Importantly, when assessed through the lens of our core business, the underlying earnings profile remains healthy.

Our liquidity buffer and provisioning coverage continue to provide both comfort and flexibility as we navigate near-term uncertainties. Standalone business performance: Our standalone AUM stands at 44,209 crore, up by 16.9% Q-o-Q and up by 36.3% Y-o-Y, driven by gold loan business.

Our standalone PAT was 381 crore, up by 1.3% Q-o-Q and down by 13.9% Y-o-Y. Our 9 months ended standalone PAT was standing at 1,149 crore.

Microfinance: Asirvad Microfinance continued to operate in a challenging environment during Q3 FY '26. While broader sector is showing early signs of stabilization, credit cost remained elevated, reflecting our cautious provisioning stance and conservative recognition of stress.

Asirvad AUM stands at 6,091 crore, including gold loan AUM of 1,610 crore. Down by 1.2% Q-o-Q and down by 39.2% year-on-year.

Loss was 156 crore in Q3 FY '26 versus 168 crore in Q2 FY '26. It has improved by 6.9% sequentially and improved by 16.9% Y-o-Y.

Net NPA stands at 1.8%. Our diversified lending business, including vehicle finance and affordable housing finance, moderated with a clear focus on asset quality and risk-adjusted returns rather than aggressive expansion.

Liquidity: Our balance sheet remains robust with capital adequacy comfortably above regulatory thresholds and ample liquidity on hand. Funding diversification remains a priority, and our access to bank funding, market instruments, and ECBs providing stability in managing our cost of funds.

Strategic priorities and outlook: Gold loan business continues to be a core growth engine for Manappuram Finance Limited, supported by favorable structural and regulatory tailwinds. Industry-wide, gold loan AUM is expected to scale sharply over the next 2 financial years, driven by elevated gold prices, rising preference for secured credit, and regulatory steamlines.

Against this backdrop, we remain well-positioned to capitalize on the next phase of sectoral growth. The board has declared an interim dividend of 50 paise for this quarter.

With that, I now invite Mr. Deepak Reddy, CEO, to provide business insights, following which we'll be pleased to take your questions.

Thank you.

Thank you, sir. Ladies and gentlemen, good evening and thank you all for joining this call.

Last quarter, I laid out to you a set of what I called six priorities as we transform the business. As Mr.

Nandakumar has shared our performances in the quarter, I thought I would give you an update of how we are progressing on our priorities and how confidently we feel on things at this stage. I'm happy to state that we are progressing well on all of them, and I continue to remain very enthused about the possibilities.

Also to reiterate what I'd mentioned last quarter, you can expect me to give you a full strategic roadmap for the company and firm guidances from next financial onwards and as we close next year's operating plan. On my priorities, I'd laid out my first priority was on accelerating gold, which our Chairman also talked about.

We are making good progress, and you would have seen from our results our AUM growth momentum has rebounded strongly. We continue to run multiple price sensitivity tests to determine the ideal scheme mix as we move into next financial year.

On gold, I talked about four sub-priorities. One was on improving our branch infrastructure.

Our new branch design is ready. We're in the final stages of negotiation with our vendor partners, and we are getting ready to next year completely transform our branches, the experience for our customers, and the controls we have in the way we work at our gold loan branches.

We talked about last quarter about building on our digital journeys and going paperless. We're making good progress here again, and targeting to go paperless for most of our customer acquisition processes in the next 1 to 2 quarters.

This should not just ensure better customer experience, but will help us improve our portfolio quality and controls also. I talked about introducing a new best-in-class AI security systems in our branches.

I'm happy to say that we have closed on our model and partners, and we are now getting into the implementation phase from this month onwards. Co-lending is a big priority for the group, and I'm happy to say that just this week we have gone live with co-lending, which will give significant returns profile to our subsidiaries also.

My second priority was on our consolidate-to-grow strategy for our non-gold businesses. As seen from our results, we have to significantly improve on our credit performance and profitability here.

Towards this, we have, as of now, significantly scaled down all these businesses and the geographies in which they operate, including for MSME and vehicle loans. We have additionally paused car loans, new and used, and farm equipment loans.

Underwriting norms have been tightened and our collection infrastructure is gaining momentum. We're also working on stepping up our LOS platforms for MSME and vehicle loans to ensure the processes are more streamlined and controlled.

We hope to go back to a growth mode from quarter one FY '26 sorry, FY '27 onwards after strengthening our systems, processes, controls, and teams. My third priority was around organizational effectiveness.

Our new delayered organization structure is beginning to show effectiveness in terms of operating rigor and ownership, and ownership by the teams is something which is very dear to me. I must say I'm very enthused that teams are adapting very positively to this change, and this gives me great confidence in delivering our growth aspirations.

We are also shortly rolling out a very comprehensive set of changes to our people and HR practices, which I'm confident will further enthuse and bring better business momentum and ownership to the organization. Simultaneously, we are mapping out all our processes currently towards making them simpler and more efficient.

Priority four: I talked about infusing top talent. I'd mentioned that we are onboarding a top quality leadership team.

A new group CFO, a group compliance officer, and a group general counsel have already joined us and are actively leading the transformation efforts, and that they're already making their presence felt in a very positive way. We are in the process of also onboarding new group heads of technology, risk, internal audit, operations, HR, and two group business heads.

Some positions and levels below are also being actively staffed where required. Priority five was getting ready for the medium to long term, even as the long term evolves.

Towards this, we have kicked off an engagement with a very large firm towards determining our go-forward technology stack. As this is expected to take a 2 to 3 years migration to fully evolve into a new age digital technology stack, we are also simultaneously working in determining various solutions that can be quickly plugged into even as the new stack goes live.

Our go-forward product strategy is also being worked on and when we talk to you about our new strategic plan in quarter one of next year, we will share the same with you. On our subsidiaries, which was my next priority, building our subsidiaries, I must say that Asirvad is showing very encouraging signs, and I'm confident that we are at the tail end of the negative credit cycle.

Business volumes are showing good growth, collections are improving, and our new book performance is performing very well. Our new book today is approximately 1/3 of our portfolio, and as we get into let's say quarter two of next year, it will be approximately 57 to 60% of our portfolio, which will add to the overall performance.

We used to have a lot of negative growth, which means we used to have higher degrowth than AUM build-up. I'm happy to say that we have largely taken care of that, and the degrowth as we end December is only 1%, and we'll go into positive territory as we speak.

A lot of credit parameters, including the number of customers of ours who have more than 3 loans, customers of ours with more than 2 lakhs, etc., are showing extremely good and encouraging signs. Business growth coming back even as we tighten our credit parameters is something that envisages me.

The organization is clearly being galvanized for strong growth and portfolio performance in FY '27. Our housing finance company, as I'd mentioned last quarter, is a strategic priority for us, and we have very strong plans for our housing finance company.

A top quality team is being put together for the same and should be in place by quarter one FY '27. Till then, you can expect low to moderate growth in the housing finance company.

I'm aware that these are fairly simple priorities that I have laid out for now, but I believe these will be the foundation of what is to come in the coming years. Thank you all for your continued support and for being a part of this transformation journey along with all of us.

Now we can go for the Q&A session.

Hello. Am I audible?

Yes.

Thank you so much for the opportunity. The first question is on our gold AUM growth.

I just want to understand if we look at the gold customers, there's a 1% increase quarter-on-quarter. The AUM growth is very good in that sense.

How should we think about how much of that is gold price-driven and how should we think about the gold AUM growth when the gold price stop moving up or gold falls

in? The ticket size during the quarter, we have seen an increase, especially our strategy with a lower yield for a high-ticket customers.

The AUM growth is almost 22%, but the growth in number of customers is not that much because of our strategy by shifting to higher-ticket borrowers.

If I could just add to what Bindu has stated, I think we must take into cognizance two, three other facts also, which come into play in the gold loan business. There is something called customer prudence also which comes into play because these are jewels of the family and these are very auspicious in our country.

Right? If you look at the LTVs, both weighted average and simple average LTVs of our portfolio, they remain the same prior to gold price increase and now.

They all hover between 57 and 60%. It's not that because the gold price is going up, our LTVs are going up.

To your question, do you see significant risk? Now, let's say the price of gold falls significantly, then we have for a short temporary period of time, yes, there could be a small correction that we have, but that is always temporary.

It has never been beyond at the most 3, 4 months and at 2, 3 months at the most. We don't feel too concerned about that.

I must say also, let me say worst-case scenario, gold price comes down also, I would say that our company is very strongly poised to be able to manage that situation because we have an advantage in our online gold loan portfolio. Our online gold loan app, which most of our customer transact on, it is very easy for them to repay and make sure that regulatory LTVs are met and our customers don't have to keep rushing to branches like a lot of our competitors will have to do.

I think they are fairly strongly poised, even if there is a correction, seems unlikely today, but you never know because the price has really gone up, it shouldn't really be too much of a worry to us other than as I said, 1, 2 months. We should be fine.

Another thing I must state is gold loan as an asset class has got fully established in India today. Over the last 1 year, it is the largest retail asset lending class in India.

Gold loan is today a great product not just for negative times in the economy, whereas normally in negative times in the economy, the price of gold goes up. It's a great product for negative economic times, it's a great product even for normal economic times because customers are saying this a fabulous product for them to take.

It's easy to avail, the repayment obligations are in their control, with how the product is structured. That's how it's already established as the largest retail lending class over the last 1 year.

Largely on gold, I think we have a good story in the country.

Yeah. That's very clear.

Thanks so much, sir. Just on the yields perspectives, how should we think about the gold yields going forward?

Should it go down further to 18% as we talked about earlier, or how should we think about that?

The yield will be similar to whatever is in the yield in the market, which is being charged by leading gold loan players. We will be with that.

The yield is in that range. We continue to be with the market.

To answer your question [unclear] Please go ahead.

It's 18.5 18.3% in terms of the gold yield. Are we in line with the market or the segment or because we are also on a shift to larger ticket size customer, right?

Just want to understand let's say 1, 2 quarters on the road, how should we think about the gold yield?

This is similar to the other leading players in the market. As I told, we will be maintaining more or less the same rate as other leading players.

They also have these larger tickets, the average will be like that. We don't expect much change.

Got it. Sorry, just one last question on borrowings.

If I'm not wrong, it seems that the borrowing has been a lot this quarter, much more than the loan growth. I'm just wondering given that the Bain is expected to inject capital, why do we need to take so much borrowing this quarter?

Bain approval is in the final stages with RBI. We got some interim approval, but Bain has sought some clarifications in that regard, etc., etc.

They have made some submissions also. That's why the final approval is yet to come through.

We expect the final approval to come through without much delay. Maybe we expect that to happen within another 1 month.

Got it. Thank you so much.

I'll jump back in the queue. Thank you.

Hi team. Congrats on the quarter.

Just a couple of things on the opening comments. Mr.

Reddy, when you said that you all are conducting price sensitivity tests to improve the scheme mix, can you just elaborate on what you mean by that?

Yeah. In the past, we used to be we had taken a strategy of pricing at the upper end of the market.

Now over this year, we realized that we had to, as our Chairman said, be benchmarked with competition, which is what we have done. We're having various tests, and that's a constant process, but we've run it very closely here in terms of geographies, customers, locations, tiers, and we to check what the sensitivity levels are.

This is what we have been doing to fine-tune it because we moved from a position of being priced higher than market to a strategic call to be priced at market.

Does this mean that in geography one let's say Tamil Nadu hypothetically, you're offering a 50,000 rupee loan at 19% and in Maharashtra you'll offer it at 18% because the crowd in Maharashtra is different? That's the

Yeah. Competition is different, Piran.

Competitive factors, density of branches, how evolved the market is in the state. All of these go into pricing decisions.

Typically, the early states were South Indian states of let's say Kerala and Tamil Nadu, where density of competition, our branches is very high. Competition levels are very high, and then you'll take different pricing strategy for different locations, right?

As I said, we are we are getting ready for we're already showing very strong growth. We're getting ready for much more significant growth.

That's a lot of tests that we're doing. The takeaway you can take back is from being priced above market, Manappuram you can be expect to price at market going forward.

We've shown that in the last quarter and the results will come through. You'll see that leverage benefits to come through very strongly in the quarters to come.

Got it. On a scale of 1 to 10, where are we in the journey of getting priced in line with peers?

We are already at 10, is it?

That's a tough question to put a number. I don't want to put a number, but you ask me, I would say around 8, around 8 or 8.5 I would say.

I would say we are yeah, we are close. We are almost there.

Got it, got it. Then secondly, you also mentioned a number of initiatives like transforming the branches next year to improve the customer experience, you're working with a consultancy firm to develop the tech stack.

How should we these are obviously very good initiatives for the long term and they're important, how do we think about how OpEx trends in that regard in FY '27 and maybe beyond?

There will be some investments. A lot more capital investments that we're going to put in, but we are in the process of making our budget for next year.

I don't think you should be overly worried about that. Of course there will be some investments, but the initiatives will also result in cutting of OpEx where required, in optimizing of OpEx where required, and also a leverage benefits coming in.

As I said, OpEx as a percentage is you should see all those leverage is coming in. I don't think you need to be overly worried about that.

The let's say the new structures we're putting in, new people putting in, will have to pay for themselves in much higher productivity.

Understood, understood. Just lastly, just repeating the same question of earlier and this is probably to Bindu, but like borrowing growth being higher than loan growth, is it just simply back-ended because borrowings have grown like at 28, 29%?

I'm just talking about standalone balance sheet. Is it just like a end of period phenomenon or was it like just throughout the quarter?

If it was throughout the quarter, then why was it so high?

It is end of the quarter only, and if you see our liquidity position, we have almost from 1,500, 2,000 tied to 4,000 crore, as we were getting a lot of limits at the end of the quarter.

Just an end of period phenomenon.

Yes. Yes.

Got it, got it. That's it from my end.

I'll get back in the queue and wish the team all the best.

Thank you.

Good evening, and congratulations on a strong gold loan growth. Again kind of circling back on the yields.

Sir, our yields have actually declined from 19.7 last quarter to 18.3 this quarter. While these are portfolio yields, what I'm trying to understand is what that essentially means is the gold loans that you would have done in this quarter would have been even lower yields, right?

Mostly somewhere around 17, 17.5. Earlier when CEO sir said that maybe on a scale of 1 to 10, we are at 8, 8.5.

Eventually we expect these yields to stabilize around that 17.5% mark, is it?

No, we would expect the yields at and the way the market is operating today conditions are, our expectations is to be in the range of 18%. That's where we expect it to be.

Right? To your question, this is let's say I must say because our we have a very unique and a very strong customer proposition in our in our online digital gold loan app, OGL app.

That as a result of that, our pricing transmission between onboarding and book yield is much faster than that of competition. I view that as a positive thing both for customers and us.

Our expectation is in the range of 18 18 18.1 up to maybe 18.15 depending on how things go, is my expectation as of now.

Got it. Essentially that also I'm guessing would be done by the end of this year, and then from next year onwards, we should look at stable yields there.

That's right.

Got it. The other question I had was on this Bain transaction.

I'm sure earlier in the call Nandakumar sir commented on it saying that we've received some kind of an interim approval, and the final approval is expected to come through in the next 1 month. Sir, I'm just trying to understand, you'll remember also a media article that came out and then we also refuted it or we clarified on that on the stock exchanges.

At least that problem which was highlighted in that article of RBI not being okay with Bain having a majority stake in two NBFCs, has that part at least been addressed with the regulator?

It is not majority stake, controlling interest. Controlling interest.

Right, sir. Right.

Controlling interest in both the NBFCs.

Controlling interest. That part Bain is working out something whereby this is addressed.

We are in discussion with RBI and they are and whatever RBI has told, Bain is ready to go by that. That will not create any problem with regard to promised investment in Manappuram as well as the joint control in Manappuram.

Got it, sir. Essentially sir, if I understand this right, whatever the RBI suggested, Bain is happy to go ahead with that so that we can get a joint control in Manappuram.

Bain

anyway anyway for

Whenever we get the information,

we will Yeah.

One thing is very clear. Bain is interested in Manappuram.

Got it, sir. Sir, then lastly rather two last questions.

One is we discussed about this number of customers earlier. Today what I'm trying to understand is when we look at gold loan NBFCs, right?

This thing around number of customers not growing a lot. See, tonnage we understand like you explained to all of us in the past that when gold prices go up, it is not important that the tonnage also goes up because customers are prudent and they borrow only as much as they want.

The fact that the gold loan customers are also not increasing at the industry level and despite that, if we are seeing gold loan growth, how should we read that? Is it like more number of gold loan players coming and which is where no one is seeing gold loan customer growth, or is it like these are the same set of customers who are taking gold loans just that they're taking higher ticket sizes now, which is what is driving the gold loan industry growth?

If I can take this question. It's an interesting question and I think I'd request you to view it from a perspective of growth cycles.

Now, so as I mentioned, in the past we our pricing in the past years was slightly higher than that of competition and for the at that time we thought it was prudent and right thing to do. As a result, some of our customers who for years for many were very loyal to us, some of them may have moved out of us.

Now the gold loan price has been going on for almost 1 year right now. This quarter you would have seen a significant take-up rate and catch-up with with our growth rates a big uptake in happening.

That's the first part of the cycle, right? Now the second part of the cycle is once the business growth comes, branches being enthused, right pricing that we have in the market, then that cycle the second cycle will now lead to much higher new customers also being acquired because the whole teams are getting galvanized.

I think what we're seeing last quarter growth of significant growth compared to our previous quarters is step one. Step two, you'll move into this.

We are fairly enthused at this stage.

Got it, sir. Then I just want to squeeze in one last question.

While we have said that our yields are now comparable to other prominent gold loan players and likewise margins and spreads are also comparable to the other gold loan players, is this OpEx bit, right? If I would look at our ROA tree, right, versus the ROA tree of our peers, I think it is that OpEx, right, which is significantly lower for some of our peers, right?

What is it that we are doing on the OpEx side? Is it just scale you think which will help you bring down the OpEx and then translate into better ROAs going forward and better ROEs as leverage comes, or are there also other things that you are doing, steps that you are taking for OpEx rationalization?

Thank you so much.

I think the answer is in your question. It is all of it.

It is both scale, which is very important of course, but also a significant process improvements, which as a result brings down our costs. Also are things that we are working on.

The answer was in your question, sir.

Got it, sir. This is very useful, and thank you for patiently answering all my questions.

I wish you and the team the very best.

Hi. Good evening.

Congrats on stable numbers. My first question is on the non-gold portfolios.

How deep can this asset quality NPA recognition phase go in vehicle and equipment finance, in MSME, personal loan, housing finance, because we are seeing spikes in the NPAs. When do you at what levels can they peak out and by when they can peak out?

Just to understand the credit cost impact incremental because of that, what is the current PCR that we are holding on the existing NPAs on each of these books? Would it be right to presume that you would want to address this in terms of provisions or recognition largely in Q4 itself so that you can start FY '27 on a lighter note?

On vehicle finance, is Q3, as the disbursement slowed down, it is more on account of the residual impact. The quarterly increase is only some 40 crore in the vehicle finance book, on which the provision currently we are doing ECL around 25 20 27%.

That is the provisions we are doing. At the same time, we are doing a current valuation of the assets and any kind of shortfall, we are providing.

About 730 days also, we are taking a 100% write-off. Similarly for MSME, all unsecured loans the net NPA is zero.

Digital personal loan or a small portion of unsecured, we took a 100% write-off. On the secured portfolio, as the average LTV is very low and the ECL with a 5-year realization period is around 5, 6%.

The assets in case of vehicle finance comparatively easy to repossess and sell, we will see improvement, but of course MSME will take more time, and the customers are servicing the EMI with delay.

Okay. In Asirvad, can you share the X-bucket collection trends?

If I were to look at your stage 2 and the net NPL figures, would it be right to assume that the credit cost in Q4 itself will come meaningfully down from what it was in Q3?

Yeah. We have shared the details in page on Asirvad bucket-wise details.

If you see, 32 the stage 2 as on 31st December is only 106. The trend shows a drastic improvement in decline in NPA in Q4.

No, no, I was asking about, ma'am, the X-bucket collection efficiency in Asirvad in recent months, how much that is? I know that we have a lesser amount of new portfolio, but how much is the leakage still happening?

Manoj over here. I'll just answer the X-bucket if you see, I would rather answer that question to address both the new book and the old book.

In our collection efficiency in our new book is at 99.78%, which is about which is roughly translating to 1/3 of my book. Like how the CEO had mentioned earlier, in the next two quarters, we expect this to reverse in the sense that we should be looking at 2/3 of our book, our entire book, running at similar collection efficiencies.

That is how robust it is currently. That's on the X-bucket.

Having said that, even the balance of the 1/3, which is the old book, we are seeing a collection efficiency increased by about 2% quarter-on-quarter, which establishes the fact that we've not let the old book slip away. We have put together a collection team from within the loan officers spread across our branches where they're dedicated to focus on this so-called old book and the hard book.

That should take care of our collection efficiencies.

Clear. Just one last on cost of borrowing.

Your standalone cost of borrowing has declined by 30 basis points Q-o-Q, but the consol has only declined by 10 basis points. When I look at Asirvad also, the cost of borrowing is actually flat.

Is it easy to reconcile this?

Almost 85% of the borrowings standalone at 8.80, and the balance Asirvad is around 12% of consol borrowing at 10.20, and home finance at 9.50. The weighted average is coming to 8.98.

Hm. No, but ma'am, that is actually declined only by 10 basis points because the standalone cost of borrowing has actually come down by 30 basis points and Asirvad is flat.

I was thinking that the delta improvement in consol level should have been higher than that.

One reason is towards quarter end, we have done a lot of borrowings. We will reconcile and get back to.

Okay. Thank you and best of luck.

Hey, thanks so much again. Just a few follow-up questions.

Number one is on the on the financial statements. In the other revenue, this is other supply, which was 27 crore last quarter, in December quarter, it jumped to 79, almost 80 crore.

Just wondering what was that about? If any one-off in there?

Can you repeat the question?

Could you repeat your question, please? We just missed you in between.

Yeah. Yeah.

In the other revenue, which is, if I look at a financial statement consolidated under the others with revenue from operations, there's a 79 crore revenue over there, which was 27 crore into September quarter. Just wonder why the large jump, and if any one-off in there?

We will share offline if that is okay.

Sure. Thank you.

Lastly on the standalone ROA, which is something about 3% right if you look at right now, in 1 to 2 years, how should we think about this ROA going forward since our yield is if we're just saying continuously stay here, how should we think about ROA trajectory on our standalone business?

ROA going forward.

We hope to maintain and improve upon ROA because per branch business is growing. This year also we have seen growth and we expect that momentum to continue.

There will be a huge volume push at the in the branches. The OpEx HR cost, etc., etc.

will not have much impact. We don't expect much increase in the borrowing cost.

The ROA, there will be

Around 4

4.

4.

I would say, yes, sir. We should definitely be looking at 4 4.25 to 4.5, I think we should.

Yeah.

4.25 to 4.5 standalone ROA.

Yeah.

Yes.

The credit cost

That means

Yeah. Credit cost issues in the non-gold books will also come down.

That will

I'm saying, this is where you want to be. The straight answer is no, but as I said, we have a non-gold book of vehicle loan, MSME, which is, for there will be some amount of impairment that you will see for 1, 2 quarters.

That's why we are factoring this when we talk to 4.25 to 4.5.

Got it. Thank you so much.

Hi. Thanks a lot for the opportunity.

Couple of questions first question is to Mr. Deepak.

Like you mentioned that you are also working on co-lending, right? This week only you have made it live.

Just a clarification on that. Is it the co-lending agreement with the Asirvad that has been done because I think on the website of Asirvad, something like that has been displayed that co-lending agreement with Manappuram?

We are working with multiple partners right now and Asirvad is one of them. All partners that we are working on, hopefully the minimum of three partners should go live over the next 1, 2 weeks, I would say.

Or 3 weeks at the most.

That's great. Second, I was referring this slide number nine of our presentation, right?

Gold loan, everyone in India who is studying financial sector nowadays aware that gold loan is booming, right, as an industry. For us as a company, right, every other segment where we are operating, whether it is vehicle finance, right, equipment finance, MSME lending, or even housing finance, our GNPA level, right, in housing finance we are approximately 5%, vehicle finance we are approximately 14%, MSME now we are touching around 6%, right?

Where things are going wrong? Because for the elevated level of GNPA, right, coming from a lender who is focused on gold loan, right, who knows that asset quality must be pristine, right?

Where things have went wrong? Have we analyzed that part while we have done all these course correction in last two, three quarters or something?

Some kind of an accountability has been set up, or how you would like to assure that whatever the balance assets we have, they are now remaining the pristine quality and not some other surprises which we might expect in a quarter or two down the line? That was my second question.

You could see the importance and seriousness of our thinking in the fact when I laid out my priority, my first priority was accelerate gold and my second priority was to follow a consolidate and growth strategy for non-gold. Right?

That's the order of the priorities to tell you how seriously we are taking this. I don't think we don't have to dwell on a postmortem of what went right, what went wrong.

It's a learning. We have obviously studied our entire models from acquisition to business to underwriting to risk to systems.

We are taking that all into cognizance and that's what we're strengthening. Till that's fully in place, that's why I told you MSME and vehicle loan, you will not see much growth even in the current quarter.

It's only as we get into next year, you'll start seeing growth. We've corrected.

Specific question that you asked, have we seen what went wrong? Obviously yes, we have because starting point was, if it is high, why is it high?

What do we have to do to control it? What are the controls you have to put in place?

What are the systems you have to put in place? What are the different processes and credit policies, underwriting policies, risk policies?

All of these have been taken into consideration. That's what we're working on.

That's why I said it'll be a slow take-up. These businesses are not something that they're going to overnight accelerate.

We'll get our processes in place, we'll be comfortable with it, and of course then we will grow. We intend to grow these businesses, but when we are confident that we have learned from the past and our go forward is strong.

That's great. That's great.

If you allow me one question within this within this just a follow-up on this, can you give some clarity if what percentage of within this GNPA segment across the products that we have, what would be the percentage of customers those who are defaulting in each of these categories, right? One customer who is defaulting in HFC, housing finance, also and to whom we have given the vehicle finance also, to whom we have given the MSME loan in for their business purpose also, right, or microfinance loan also?

Are there any a certain set of customers in percentage terms who are defaulting in more than two, three categories? Or these are exclusively a different set of customers?

No correlation over there?

No, you're talking about customer-level NPAs of customers across the group. I think they're very very very minuscule.

Offhand, I don't have the exact number with me offhand, but that's something that we look into very closely. Those are things which are monitored also very closely by us.

It's very minuscule. Our customer-level NPA policy takes that into perspective.

Okay. My last question, I have asked in my couple of interactions also in last con-calls, on branch expansion, right, specifically on the gold loan side.

Is there something which is stopping RBI to give us branch expansion approval or is it related to Bain transaction? Once that is done by RBI, then only the RBI will give us approval for branch expansion, or we are not going to the RBI for seeking approval for branch as of now?

What exactly is the roadblock or showstopper which is not giving us an opportunity to expand the branches specifically for the gold

loan? No, I think I explained that point at our previous earning calls also.

This is of course I can't speak on behalf of the RBI, why they're giving or not giving. That's not what I can speak about.

Our belief is also because it's a very significant transaction, with a new co-promoter coming on and I think that's the first priority which probably the regulator is also looking at. We don't see any reason why we will not get approvals shortly.

We hope to, we put up our proposals to RBI which we hope will be favorably decided upon. Is there any specific reason that you think that we have why we are not getting?

I think the answer is absolutely not, nothing at all. Okay.

Thank you. I will come in follow-up.

Thank you very much.

Hi, Deepak. Very very good to hear your voice here at Manappuram.

Given the fact that you are pretty much outlining to change the organization at various levels, one, if we can maybe in the medium term, 2 to 3 years from now, a second is you also spoke about LOS, LMS transformation. What are the tech partners we are looking at to have this changed?

Would this have different kind of LOS, LMS for various kinds of asset classes that we would be working on? The third part is, are we also look at rationalizing the manpower or have a different orientation for the present manpower?

Shubhranshu, hi. Good to hear your voice too.

Three questions, a lot of your question I must say came a little garbled to us, and so I hope I'm answering the questions right. One was of course on the strategy which you told us, and Shubhranshu, my request is, please bear with us as we move into FY '27 when we'll share our well thought-through strategy.

I request you to bear with us. On our tech architecture, what it is going to be, it will be premature at this stage because that's a journey we've just started with multiple tech partners, while study is going on.

Because we have to take into consideration multiple factors. One is what is the market today.

Two, what is the market expected to be in 3 years, 4 years? We have to build a tech platform not just for today, we have to build a tech platform that's going to last us for the next 10 years.

With the advancements which are happening out here, the solutions are quite complicated to make. It's not just plain cookie-cutter, but we are working towards that to put that in place.

We're working with multiple partners. It's not one partner.

Specifically, your question on LOS, LMS, will different products have different LOSs, LMSs? I think that's an output of our entire exercise when we will know.

What all I can assure you is whatever it is, each individual product will have individual workflows customized for themselves. It will not be one standard workflow that we will use for all products.

We will have strong LOSs for different asset classes which are also figurative of how our competitors also use it with a forward-looking lens also. Manpower was your next question.

I think that's a constant one, right? You will always have options to optimize, technology will come in when you optimize now, all that yes.

Will the actual manpower come down? Obviously no.

Because if you're going to talk about our AUM continuing to be 50,000 and then we are putting in technology and then people will come down. I don't think we're looking at that.

We're looking at a very, very strong future for the company where our AUM and our growth is going to be multiples of what we are today. I don't think there's too much to read into in this at this stage.

It'll be steady-state, well thought-through, well-calibrated and we'll take the long-term approach. It will not be a short-term approach.

It'll be a medium to long-term approach that we will take.

One last question if I can squeeze in. Bain Capital also holds a controlling stake in Fincare, which was erstwhile Adani Capital.

Is it into Manappuram Finance to have that controlling stake?

Bain Capital holds a controlling stake in Tyger Capital, which was erstwhile Adani Capital. Is it possible to have that company merged into Manappuram so that they continue to hold a controlling stake in that entity instead?

They are already working out some strategy whereby their interest and what assurance as far as Manappuram is protected.

You're talking about

and our Chairman rightly said, what are the options that they're looking at? Will it be taken?

I think that is completely not our prerogative. That's a question you should probably ask to Bain Capital.

I don't think is premature. You've seen our holding statements on this whole transaction.

There are certain questions asked which we've given responses to and we are awaiting clarifications.

Right, sir. Thank you so much.

Best of luck, Deepak, and best of luck to the entire team. Thanks.

Thank you.

Thanks for the opportunity. I had two questions.

One, I wanted to know the quarter gold auction number, and the second was what is the incremental yield of the gold?

Auction was around 32 crore during the quarter. The yield currently stands around 18%.

Hello?

Auction is around 32 crore during the quarter, our incremental current yield stands at 18%.

Hello? Yes,

we are.

Yeah. I just wanted the option number and the incremental yield in the gold.

The

auction is around 32 crore during the quarter, and our current yield at 18% on gold loan book.

Thank you.

Yes, hi. Good evening, and thank you.

Sir, one on OpEx again. If we go back 3, 4 years at similar branch productivity of about 10, 11 crore where we are right now, the larger peer Muthoot used to be materially lower than where we are.

If you can just highlight where is this mismatch? We are in the 5s, we were in the 3s at similar productivity, and I'm going back 4 years now.

If you can just highlight where is that mismatch, what can we do to improve between us?

Mr. Kothari, I think I've laid out our the various actions we're taking towards this.

As we roll out the strategy, as we roll out our operating plan for next year also, I think you'll have visibility, going back 4, 5 years and comparing with competitors, who did what, who did when, I don't think we want to produce all of all.

No, but do we agree there's a mismatch and we want to work on that, or this is how our business is structured and this stays as it is?

No, we've answered that question, right? We have very strong aspirations of growth of the company and when we lay out our strategy, you will see it for us.

Obviously, we are obviously not happy and we will never be happy with where we are. Our whole orientation will be always that we have to do better than what we are wherever we are at whatever stage we are, and that's our orientation.

There's a lot of work to do which we are working on, and the results will follow and we'll share with you the plan. As we get into next quarter, we'll share the plan with you.

Almost 40% of the AUM

You would have seen here even already you would have seen our per-branch AUM from the beginning of the year to this year, we've got a little behind. We know why we're behind.

We have also explained to you reasons because we also followed a different pricing strategy as one of them, and one important thing. We have taken those actions and you will see that we're here to be a dominant player in the market and which we will be.

Correct. Correct.

This 4.25, 4.5 standalone ROA, what timeline did you give for that?

As we move into second half of next year.

Fair enough. Thank you.

Hello.

Yes, please.

Yes. I have one question.

In Asirvad Finance, there is some impairment losses we are booking like each quarter we see the losses. This loss is complete loss or in the later quarter they will be cover up?

The collection efforts are going on for the NPA book also. You have seen that in MFI, once it is 90 DPD, the collection is very difficult.

A lot of effort is going on. We are taking the collection agencies also to improve the collection.

As the quality of book is improving, you will see reduced credit cost in the coming quarters.

Yes, you should see reduced credit costs. We've taken some impairment this time even on ARC book as a prudent measure even though we didn't have to, some small amounts, but and as I mentioned, an outlook is looking strong, sir.

Okay. My next question is now Bain Capital they are acquiring controlling stake in the company.

It will be from the promoter will be shifted to the Bain Capital, and also when this transaction will happen, there will be open offer. As I read that this open offer was price at 236, but now price for the stock is already increased way higher.

When this open offer will come, there is chance that Bain Capital will get more stake in the company?

These details are already given. Yeah.

See The promoters are not selling the stake. This is

Okay.

Yeah. This is entirely primary.

Right? This is already told to the market about the plan of 9% equity now once the approval is received, then 9% through convertible debentures which will be converted into equity in another 18 months.

They will have 18% stake, and at the present promoters will have more than 28% stake. It will continue.

It is a case of joint promoters, existing promoters along with Bain as a joint promoter.

Sir. Thank you.

Thank you so much for your active participation as usual. Now this time I hope you could hear more about the new CEO's strategy also.

I hope that definitely help you to understand what our company will be in the coming 1 or 2 years' time. Thank you so much for the questions.

Thank you.

Thank you. Thank you to all.

Thank you very much and thank you for your continued support.