Aptus Value Housing Finance India Ltd
NSE:APTUS
Earnings Call Analysis
Q2-2024 Analysis
Aptus Value Housing Finance India Ltd
In the Q2 FY'24 earnings call of Aptus Value Housing, orchestrated by Dolat Capital, the company articulated a steadfast commitment to its previously conveyed strategies, with all assertions rooted in cautious optimism, mindful of potential risks and market uncertainties.
The company reported a robust Profit After Tax (PAT) of INR 290 crores, marking a significant 20% growth year-on-year. The return on assets (ROA) and return on equity (ROE) stood impressively at 8.1% and 17%, respectively. Growth in the total live customer base was equally strong at 25% year-on-year, reaching 1,19,000 as of September 30th. The asset quality reflected an uptick with collection efficiencies rising to 99.70% for the quarter, coupled with improvements in the 30-plus days past due (DPD), which saw a reduction to 5.99% on a year-on-year basis. Furthermore, net non-performing assets (NPA) were contained at 0.89%, with provision coverage steadfastly maintained at around 89%. Aptus Value Housing displayed prudence in financial management, revealing a total borrowing spread across diversified sources and a robust on-balance sheet liquidity position of nearly INR 974 crores.
During the quarter, the company's operational footprint expanded with the opening of 19 new branches. Moreover, they've demonstrated agility by venturing into a new geographic market with the opening of their first branch in Maharashtra. This expansion reflects the company's strategy for sustained disbursement growth, expected to continue across the coming quarters. The management conveyed confidence in maintaining the disbursement momentum, intending to fortify its presence and capture greater market share.
Aptus Value Housing provides insurance loans, equivalent to 2-3% of the sanctioned loan amount, to ensure the customer's life coverage, designating them as non-housing loans on their books. This innovative approach expands their service offerings while maintaining safety nets for the portfolio. They also indicated an improved 'rollback rate' from 89% to 92%, representing the proportion of their first-bucket loans that revert to regular status, signaling effective credit management functionalities.
The company marked an AUM growth of 13% for the half-year, which was noted to be somewhat stifled by staffing turnover in Tamil Nadu. Nonetheless, the management anticipated overcoming these challenges, projecting a substantial AUM growth rate of around 35% for the current fiscal year, driven by strong performances in regions like Andhra Pradesh and Telangana and by amelioration of recruitment and retention in the pivotal market of Tamil Nadu.
Aptus Value Housing maintains a clear dividend policy, having declared dividends for FY'23 and with intentions to deliberate further in upcoming board meetings. The company seeks to position itself as a dividend-friendly entity, striking a balance between their after-tax profits and the imperative need for reinvestment within the business. Their approach to dividends reflects a long-term vision for creating shareholder value while ensuring sustained business growth.
The cost of funds for the company averaged 8.41%, influenced by borrowings in their Non-Banking Financial Company (NBFC) segment which tend to command higher rates than housing finance borrowings. The National Housing Bank (NHB) sanction was cited as a potential source of future savings due to lower interest rates compared to market borrowing. However, market fluctuations in interest rates present an element of uncertainty going forward. Additionally, the management has increased an interest rate for non-housing loan customers by 50 basis points effective 1st of September 2023, forecasting stable net interest margins (NIMs) for the subsequent quarters.
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Ladies and gentlemen, good day, and welcome to Aptus Value Housing Q2 FY '24 Earnings Conference Call hosted by Dolat Capital. [Operator Instructions]. Please note that this conference call may contain forward-looking statements about the company, which are based on beliefs, opinion and expectation of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Ms. Mona Khetan from Dolat Capital. Thank you, and over to you, ma'am.
Thank you, Yusuf. Good evening, everyone, and welcome to the earnings call of Aptus Value Housing Finance Limited to discuss its Q2 and H1 FY '24 performance. We have with us the senior management from Aptus to share industry and business update. I now hand over to Mr. Anandan, Executive Chairman of Aptus for his opening remarks. Thank you, and over to you, sir.
Thank you, Mona. Ladies and gentlemen, good afternoon to all of you. I am Anandan, Executive Chairman of the company. I welcome you all to the conference call to discuss the company's performance for the second quarter and half year ending September 2023. I have with Mr. P Balaji, MD, Mr. C T Manoharan, CBO, Mr. John Rayappa, CFO.The financial results and the investor presentations are available on the websites of the stock exchange as well as our company's. I hope everyone had a chance to look at it. Aptus, as you are aware believes in growth with due importance in the quality of the loan book with good financial [ metrics ] we are happy to record that Aptus had a decent second quarter and also first half year of FY '24. Sharp business focus, deep penetration in served markets, customer centricity has enabled the company to achieve good growth. The company's performance for this period demonstrates a sustained trajectory on stability, growth and diversified income stream. Our net worth [indiscernible] crores, indicating robust capital adequacy. This coupled with good support from National Housing Banks, Other Banks & DFIs on the borrowings side and with strong ongoing demand for both home loans and small business loans gives us confidence to pursue robust growth with sustained profitability in the years to come. I would now hand over the line to Mr. P Balaji to discuss business focus, operating and financial parameters. Thank you.
Thank you, sir. Good afternoon, friends. As we have been explaining in the earlier calls, we will continue our focus on these strategies, mainly growing disbursement and loan book, both in housing loan and small business loans considering the large headroom available in the lower middle income segments in tier-3 and 4 cities. Increasing penetrating and existing geographies by opening new branches and commencing operations continuously in the states of Odisha and Maharashtra. Strengthened analytic and digital adoption, about 17% of our business in Q2 [ FY '24 ] has come from construction ecosystem apps, [ customer ] referral and social media leads. Our focus shall be to -- our focus shall be to increase the leads through these channels in addition to the physical brands network. Continuing to focus on productivity, collection efficiencies, OpEx and cost of funds. Major performance highlights for the half year are as follows. AUM grew by 28% year-on-year to INR 7,604 crores. Disbursement increased by 28% year-on-year to INR 1,391 crores. Sequential quarter-on-quarter growth in disbursement was 15%. NIM was at 13.34%. OpEx to assets were there at 2.71%. PAT was at INR 290 crores, 20% growth year-on-year. ROA and ROE was at 8.1% to 17%, respectively. Total live customers as on 30th September was at 1,19,000, that presented 25% growth year-on-year. Given the period, 19 branches were opened and will be opening 3 more branches have got opened. Further, we'll be opening our first branch in Maharashtra this month.Asset quality, collection efficiencies improved to 99.70% in this quarter. Our 30-plus [ DPD ] has improved by 15 basis points to 5.99% on year-on-year basis. On sequential quarter-on-quarter basis, the increment was 28 basis points. This will be focused and improved upon in the [ interim ] quarters. Net NPA was at 0.89%. Provision coverage, which has been consistently maintained at [ 1.19% ] as of 30th September. We are carrying a total provision of INR 81 crores, and this when computed as a percentage of NPA works out to a coverage of 89%. Funding, we have well-diversified borrowings. Of the total borrowing 62% are from banks, 26% from NHB, 7% were from NCD and balance in the form of securitization. We have sufficient on-balance sheet liquidity of almost INR 974 crores, including an undrawn sanction of INR 300 crores from NHB and INR 290 crores from banks. Now with these remarks, I open the floor for the question-and-answer session.
Thank you very much. [Operator Instructions] First question is from the line of Manuj Oberoi from Yes Securities.
Audible to you, sir? Sir, I've got 3 questions. Firstly, just maybe your sense on whether there's strong and the improved disbursement growth momentum would continue in the coming quarters? What's the sense on that, sir?
The question is not clear Manuj, I am not able to hear.
Am I audible in here now?
Yes.
Okay. Sir, just needed your sense on whether the strong and the improved disbursement growth which we have shown in this quarter, what do you think momentum disbursement momentum growth momentum would continue in the coming quarters? What's your sense on that?
Yes. This is -- that's what we are aiming for and this will continue in the next 2 quarters as well. And that is the plan, and we are also opening more branches, which will also contribute to this momentum.
Sir, any outlook on the spreads or NIMs [indiscernible].
What was the question, Manuj?
Sir, any outlook on spreads or NIMs?
NIMs - We have increased the interest rate for the all live customers on the [indiscernible] basis points, and this is effective from 1st of September 2023. So the [indiscernible] reported are likely to be stable for the next 2 quarters as well. And if there is a reduction in the cost of borrowing because of the NHB borrowings being drawn, we like to get some increase in the NIMs as well.
Understood, sir. And sir, lastly, can we see further reduction in the Stage 2 bucket in the second half of this year?
Definitely, we are focusing on that. If you look at the collection efficiency, which is almost 99.72% if it becomes 100%, obviously, the Stage 2 assets is likely to come down. And the whole purpose of the organization and the collection team is to reduce that. So we will see some -- [indiscernible] good reduction in the Stage 2 assets.
Got it, sir. Best wishes for the next quarter, sir.
Yes. Next question is from the line of Subash Mishra from Phillip Capital.
2 questions actually. So the first one is about the insurance loans, which is around 2% of the AUM just wanted to understand what these insurance loans are. So the first, second is, what is Europe? -- this quarter and maybe a year back? And what are the rollback rates from the 30-plus bucket?
First, let me answer the insurance loan. Maybe these are the loans which are given for taking the insurance cover for all our customers. It is basically the credit chain premium. It is almost working out to 2% to 3% of the total sanction amount of that we are giving it to the customers because it is since amount of premium is going to be slightly bigger. This kind of customers will not be able to afford it. So we are giving it as a loan. And this will be transferred as non-housing loan in our books, and that is till the coverage of life of the customer.
Sir, just one clarification on the insurance loan. So essentially, if I take a home loan, it is -- you are essentially giving me another loan for the insurance attachment that is required for the home loan is that [indiscernible].
Yes, yes.
Sir, is this allowed under [indiscernible] regulations...
It is as long as it is not being transferred as housing loans. Is it getting classified as non-housing loan, it is allowed. Can you repeat the next question because you are not...
What is the 0 plus on this quarter and a year ago, sir? And what is the role that plays from 30 plus bucket.
Last time, it was almost -- last quarter, one plus was 8.5%. Now it is to 8%. And it was almost 10% last year at the same time.
And the rollback rates on the first bucket, sir?
What is that? I didn't understand that.
The rollback rate. So what is getting cured in the first bucket which rolls back and would be the regular.
It maybe a 94% -- sorry, 89% last time now to become 92%.
[Operator Instructions] Next question is from the line of Raghav Garg from Ambit Capital.
I have 2 questions. One is, what was your AUM growth in Tamil Nadu for this quarter?
The AUM growth for the half year was 13%. It is there in the presentation as well. And the growth in Tamil Nadu is 13%. We are seeing some attrition in Tamil Nadu. So that's why the AUM growth is not that high in this state. And there were problems in the recruitment level.
So sorry, I could not get you. The line is not very clear. Could you repeat the last part, please?
Actually, what has happened is there was some attrition in Tamil Nadu, both at the [ branch ] manager and the area manager level. Now because of that, just to add to what Balaji said, at the portfolio level, we had a growth rate of about 28%. And looking at Tamil Nadu, we had a growth rate of growth of 13%, whereas in Andhra, Telangana and other places, we had a growth of over [ 34% ]. In Tamil Nadu, in the first quarter the attrition of the branch level is slightly higher -- but then in both [indiscernible], resulting in is in the second quarter, our developments already down up to 15% for our first quarter, and we are very confident of maintaining this trend in the 3 and 4 quarters also, resulting in that we are content of meeting the projected growth of the indicator of around 35% for the current year.
But sir, if I look at last 2 quarters as well, 1Q ‘24 and 4Q '23, the growth was somewhere between 15%, 16%, still lower than what you're delivering at the overall AUM level. Why is that the case despite you just having about INR 3,000 crores of AUM in that state.
Our [indiscernible] was slightly lower in the first quarter, you must have observed that. We have discussed business about INR 645 crores. And that has gone up to INR 740 crores in the second quarter, and we are kind of improving it further in the third quarter. So [ September ], slight lower disbursement in the first quarter has happened in Tamil Nadu, as [indiscernible] mentioned that there is an attrition at the [indiscernible] level slightly higher than our budget, which has been corrected already. And now the investments of [indiscernible] are reflected in the second quarter itself. And going forward, if we improve it.
Sir, my question was actually pertaining to the previous quarters, but I'll take it another time. I'll get to my second question, which is, so you mentioned that you've set up one branch in Maharashtra. I just wanted to understand how are you building up business in Maharashtra. I mean have you hired a team from Maharashtra and as well if you're hiring a new person, a new business head for the expansion in West, just a flavor on this would be very helpful as to how you're building business in Maharashtra...
Yes. Our branch expansion strategy is always that we could be into a particular state. And also on a contiguous basis, we opened new branches. For example, we have opened our first brand in Orissa in a place called [indiscernible], which is almost very close to a place called [ Thakkolam ] in Vizag. So similarly, in Maharashtra we will be opening a branch in Nanded, which will be around 70-80 kilometers from a place called Nizamabad where we are already having operations. So the control will be from Nizamabad. Of course, the team has been set in Maharashtra. We have appointed a cluster manager there. He will be responsible for opening more branches there. And we have already set up the branch team and also the legal, technical and all of them are in place. So we just have to open the brand and start the business there.
Sir, is the team hired locally? Or have you...
It has always been our strategy to recruit people locally, whether it is Orissa or Maharashtra or any new state where we enter, we will take local people...
Thank you, sir. That was all from my side.
Thank you [Operator Instructions] The next question is from the line of Pranav Gupta from Aionios Alpha Investment Managers.
Congratulations on a good set of numbers. I have a quick question. So first one is like last quarter, we saw that Aptus declared dividend. I just wanted to check with you if there is any dividend policy that the Board has formulated -- if so, then what is it can you explain the issue dividend that you might pay out? [indiscernible]
Actually, as we have explained last meeting that the company, we do have policy of dividend. And as now, we have declared the dividend FY '23 and FY '24 also, the Board will take their dividend decision and they approve it possibly in the third quarter meeting or the fourth quarter meeting. And we do have a broad dividend policy in terms of considering we have our after-tax profit and also continue the need to really be seen as a dividend sale company, which we believe is in finding good stand. The board will the Board will decide on the appropriate percentage of dividend [indiscernible].
Okay. Just as a follow-up to that question. Like you had mentioned last time on the call that this dividend, the dividend payouts are largely to lead the business to an optimal leverage level that you think is okay. So is there any thought on when and if we might end up stop paying dividends? And any optimal leverage level that we're targeting eventually?
Okay. We cannot really -- I don't think we made a decision at the Board level to start making the dividend impact to start paying the dividend and all. And we have never had policy of dividend on a regular basis going forward. And on appropriate rates in line with our policy in terms of the dividend payout ratio, which is sustainable for us in the future as well.
Sure, sure. That answers my first question. So the second question is on the growth part. You mentioned that you started opening branches on a contiguous manner in Orissa and we will also be opening our first branch in Maharashtra this year -- sorry, this quarter. Could you talk about the process that we go through in terms of assessing the opportunities and we decide to open a new -- open a branch in a new state. Could you talk about the process and what sort of opportunity you see in these 2 new states that is Orissa and Maharashtra...
How you go about opening branches is that first of all, we do a market study? And what is the kind of market, what kind of people -- what is the culture of the people, what is the repayment ability and what is the retaining culture of the people and also the business done by other NBFCs and HFCs. And what are the kind of delinquencies they are experiencing and those kind of things. And then we come to a conclusion on what kind of industrial activities what kind of self-employed customers are there, which is other target segments. So based on that, we have the database and based on that, we open the branches. And not that we open branches [indiscernible].
Sure. Sir, just one last question. You mentioned that you've taken a 50 basis point pricing hike in this quarter, that of September of this year. Could you talk about what is the frequency with which we -- I mean, if this rate hike is taken in September, does it become applicable immediately? Or is there a repricing mechanism that close over the next couple of quarters?
No, the prices which we have taken is effective from 1st September. And it is not effective with the lag. I mean it has got implemented and it has been effective from 1st September.
Right. So any repricing, whether upwards or downwards in the future is typically done in to expect immediately?
See, normally, our velocity is to absorb the increase in the operational increase in the income so by way of operational efficiencies. -- in the inter cost is going beyond that and resulting in NIM compression, we get into this policy of increasing the interest rate. So with that in mind, we have done the 0.5% increase, and we will be observing the interest cost increase also very closely. And based on that, the decision will be taken on the other to increase the interest rate to our customers or decrease the interest rate.
Sure, sir.
Next question is from the line of Arul Selva from Independent Advisors Private Limited. Current questioner from the question queue. So we will move to the next question from the line of Sonal Gandhi from Centrum Broking.
The line is not clear. So I just wanted to understand what was it that we spoke about cost of funding? Do we expect it to go up from here? Or do you expect it to remain at a similar level? And what is the NHB sanction limit that you have at the moment?
Well, Let me explain you the -- if you look our corporate buildup, there are 2 companies. One is the housing finance company, the other one is the NBFC. And in the NBFC, we do the small business loan, we charge 21% interest there. And in the housing finance company we charge between 14-15% interest on the housing loans. So the interest cost depends on that, and the housing finance company, we have the benefit of the [indiscernible] refinance. And we -- the incremental borrowings, we are rating between 8.25% to 8.3% in the housing finance company and 0.25 – 0.50% more in the NBFC company. So it is a function of these 2 that is playing a part in the cost of funds that is getting increased to us. If you look at our June quarter in case it was around 8.3%. And after that, it has been 8.41%. This is basically because we have increased our borrowings in our NBFC where it is slightly expensive as compared to the housing finance companies borrowings. Now going forward, we have got this NHB sanction which is around INR [ 200 ] crores, which can -- which have an interest rate roughly 0.5% lesser than the market rate. So to that then there can be a savings in the cost of funds. But again, the market being market, the cost of funds are going up. So we actually do know how the markets are going to go up and we actually don't know how the markets are going to go up and what will be our cost of funds in the NBFC. So with the results, the cost of funds, which is a 4% because of the INR 200 crores funding, you can be drawn from NHB and also the NBFC volume, which is certainly around 8.45% to 8.5% [indiscernible].
Okay. Okay. Second, sir, in Tamil Nadu, I mean, there is another NBFC, which is growing very, very fast, very aggressive. So is there -- I mean, some attrition probably because of this NBFC wherein we are losing the talent and – that is impacting our disbursement, I mean -- or the or more aggressive, that's where we are kind of losing customers. And not losing that our growth rate has kind of come down. If you could just give some color on that?
Let me explain. See, I don't know which NBFC you are talking about if I'm able to get what they are talking. I think they are not our competitors first of all, let's be very clear on that because they are in a different segment, and there is a different, completely different segments. And we are not losing people to them. But the thing is that what has happened is 5 years back, there were not many companies operating in any of areas where we are operating. Now there is competition. So people want to go to some other companies. And then what has happened with after such places they come back to us as well. So that's what is happening. And attrition is normal -- I mean, in any -- even in banks that we can say it is very high. So it is actually how do we manage that attrition and how do we still grow is the one which we need to work on and we'll be working on that.
Our attrition rates are much lower at the senior level at the middle management level. Even at the branch level, our attrition rate is one of the best in the industry, one of the lowest in the industry. But then being a significant and well-known player in the southern markets. Any company wanting to enter, obviously, the [indiscernible] we look at the successful existing companies. To the actions, we had slightly reached more than the budgeted operation in the state of Tamil Nadu for a short period. And as I mentioned, that has been corrected -- and it has been also reflected in our business in the second quarter itself and in our conference level in the third and fourth quarter going forward. And the fact that we will be also there very conference of meeting whatever budgeted growth rate that we indicated in the divestment as well as in the loan book.
Okay. So sir, are we still targeting 30% plus in AUM growth. That's right.
Not clear, please.
Our AUM growth target remains at 30% plus. Is that understanding right?
Yes. Yes.
Next question is from the line of Jigar Jani from B&K Securities.
So on the interest rate hike, I believe we had also taken a 50 bps appetite on the non-SL portfolio and SBL portfolio from first orders. That is implemented, right? -- already?
It is actually effective on 1st September. There is only one increase in the interest rate hike, which is 0.5% on the non-housing loans, all live customers, but it is effective only from 1st September and not [ the third quarter ].
Okay. And this -- we are not doing any hike for the housing portfolio. This is only the one which you are mentioning is for the same one that we maintained in the last one or the last concall.
One second. If you look at the interest rate what we have done in November 22, we have done the 0.5% increase for the housing loan customers. After that, we have not done anything to the housing loan customers. In September 23, for all non-housing loan customers, we have increased the interest rate by 0.5%.
Okay. Understood. So whatever was given in 1st of August has been taken at 1st September, basically, but same Yes. So -- and on -- when you say that your disbursement run rates or trend would remain the same. So would it be fair to say that we are targeting 15% kind of sequential increase in disbursements going ahead as well, Q-on-Q?
Your question is not clear, we are not able to hear you properly...
So what I was asking is, basically, you said that the disbursement trend that you have seen in this quarter is likely to continue going ahead as well. So would that imply that you're targeting 15% kind of sequential increase over the next 2 quarters as well?
Yes. Yes.
Okay, okay. Understood. And just, sorry, the line was a bit heavy. So your borrowing cost for housing finance company is 8.25% to 8.5%. And for...
Yes. 8.2% to 8.3%...
Okay. And the NBFC is 25 bps higher than...
25 to 50 basis points more... .
Next question is from the line of Ms. Mona Khetan from Dolat Capital.
Just a few questions. So firstly, if you look at the spreads over the last 2 years or so, 2.5 years that this set is at higher levels versus in the past. So maybe almost 100 bps higher, partly also into the rating upgrade that you had during this time. So could we expect this kind of spread between 8.5% to 9% to sort of continue? Or could they normalize over time at a lower level?
No. As we have been explaining on the call, the yields which we are generating are attainable because of the product mix. So the result, the rate which you are having around 8.8% as of now is likely to be maintained between 8.5% to 9%. Yes, Mona.
Sorry. So you said that 8.5% to 9% should be…
9% is sustainable. Yes, yes.
Okay. Okay. Secondly, how are our incremental cost of borrowing, both on the NBFC and the HFC book?
Yes. Now we explained what was happening in housing finance company, we are getting funds between 8.2% to 8.3%. And probably NBFCs 0.25 to 0.5% more than the
This is the incremental borrowing cost...
This is the incremental borrowing cost. Yes.
Okay. Okay. And your OpEx was higher by about 20% sequentially. So is it largely to do with the branch expansion? Or there's more...
Yes. It is basically to do with the brand expansion where we have 20 branches opened and almost 350 people have joined additionally. That is one, we're saying that we are strengthening the middle management as well, both in IT, compliance, credit, demands, everywhere. So that has also added to the cost there.
Okay. And we intend to add about -- how many branches per year?
Around 30 to 35 every year.
Okay, okay. And if you could also talk about the BT out during the quarter.
If you look at the gross it is around 8%, the 43 cases. Of that, almost 5.5% is from own source of the customers. So the BT out is working out around 2.5%, which has remained consistent for the last 3, 4 quarters, and this is likely [indiscernible].
Okay. And across your -- just to touch upon the rate hikes. So across both your HL book and the non-HL book during the cycle, you've raised rates by 50 bps.
Yes.
Okay. Okay. That's all from my side.
Thank you. Next question is from the line of Arul Selva from Independent Advisors Private Limited.
Sir. Can you hear me? Am I audible? I have a few questions. The first one is regarding your disbursement for this quarter. I just wanted to know what would be the breakup of this disbursement between the HFC and the NBFC...
Around INR 500 crores out of INR 745 crores, around RS. 500 crores to INR 550 crores is in the holding finance company and the balance is in the NBFC.
Okay. Okay. Now the next question I have is in terms of your guidance, I understand that the overall AUM guidance growth for the full year FY '24 is about 30%. Now is there -- if I -- again, if I break that up between the HFC and the NBFC, is there -- what would be the number specifically for both of these segments?
Housing will be out of INR 3,400 crores or INR 3,200 crores, which we are targeting for this year, almost INR 2,200 crores will be in the HFC and the balance will be in the NBFC [indiscernible].
Okay. I understand, sir. Now another final question that I have is that, of late, I think there was some concern that the macroeconomic level, with RBI flagging certain risks of unsecured lending. I was just wondering if you were seeing any sort of spillover effects that are happening in your collection operation? Or are you kind of largely seeing relatively higher amounts of repayment rate? I understand. I'm talking about some guidance in the future instead of -- I know the numbers for this quarter. Some color about expected down rates, expected collection rates would be helpful up here.
So for me Arun, first of all, our secured loan, which is almost all the loans are secured by rental property. So we are not seeing any unsecured-- that's it. So there, we are not doing bad. So we don't have any of non-sales are consistent around 15% to 20% looks for us. And we don't see any variations in that in the coming quarters as well. [indiscernible].
I'm sorry, sir.
And the collection efficiencies are likely to go up only.
Okay. I understand. I understand. That is from my end and all the best for the future.
Thank you. [Operator Instructions] There are no further questions.
So should we go ahead and close the call? [indiscernible]
[Operator Instructions] I would now like to hand the conference over to the management for the closing comments.
Yes. Thank you, Yusuf and Mona for arranging this conference call. I would like to pay my sincere gratitude to all analysts and investor friends that have taken out time from their busy schedule today. Please feel free to connect with us in case we have any kind of [ questions ], we would be happy to get back to you.
Thank you. Thank you. On behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.