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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day, and welcome to Muthoot Capital Q1 FY '23 Earnings Conference Call hosted by Antique Stock broking. [Operator Instructions] Please note that this conference will be recorded. I now hand the conference over to Ms. Vidhi Shah from Antique stock Broking. Thank you, and over to you, Ms. Shah.
Thanks, Mike. Good afternoon, everyone. We have with us the management of Muthoot Capital Services Limited, represented by Mr. Madhu Alexiouse, who's the Chief Operating Officer; and Mr. Vinod Panicker, who is Chief Financial Officer. Without further do, I shall now hand over to Mr. Vinod Panicker for opening call. Over to you, sir.
Good afternoon, everybody, nice being on the call with all of you once again. We would want to get them the -- I've seen some bit of improvement in the current quarter compared to the previous quarter, and we are really happy to put in the financials to you. The current quarter total disbursement INR 328 crores versus INR 136 crores in the same quarter last year [indiscernible] the quarter then for about approxi to end of month [ didn't ] impact much of the business. Again immediate preceding quarter, we had -- we were slightly lower, but then in that immediately preceding quarter, there were other loans or roughly about INR 40 crores. Otherwise, the retail loans got slightly higher than the immediately preceding quarter. Then it was about INR 328 crores [indiscernible] INR 326 crores. The agent has seen our stock increase over the last 2, 3 quarters with the current year of about INR 2,082 crores versus INR 2,049 crores in the immediately preceding quarter and our INR1,964 crores in the same quarter last year. The interest income also haven't -- mainly, it has been more or less inline with immediately preceding quarter INR 108 crores in the immediately preceding quarter. The amount of INR 106.4 crores that was over INR 98 crores in the immediately -- in the same quarter last year. Our current quarter seen a lower income as if a couple of quarter or so. We went in that we did -- that was #1. Number 2 was the INR 107 crores in the immediately preceding quarter had roughly INR 2 crores of interest income from the [indiscernible] bank but was monitored in the current quarter. So I think others on the business end, it was more or less been equal to immediately preceding quarter been lower in the current quarter of about INR 32.7 crores versus about INR 34 crores in the immediately preceding quarter and close to INR 40 crores in the same quarter of last year. Within the same quarter last year, not to do with the reduction in the utilization of our roughly INR [ 271 ] crores versus the same quarter of last year. What was same quarter last year and some bit of interest cost reduction in terms of which were passed on the vendor it was roughly INR 7 crores a reduction of [indiscernible] over INR 6 crores and about INR 1.5 crores. That is how the inverted utilization and lower interest cost in the immediately preceding quarter is slightly lower, mainly on account of utilization of roughly about INR 60 crores to INR [ 58 ] crores, but the interest in the last quarter has gone up. So that has an impact of about 17 lakh and [ mainly exchange] the current cost will maintain roughly 34 lakh. So all in all, it was lower. It means that net interest income of the INR 73.7 crores, about INR 58 crore in the same quarter last year. Operating expense was about INR 44.5 crores, about INR 27.2 crores in the same quarter last year. In the same quarter last year, there was -- because of COVID, there was not so much of activities lower surging cost and affected negligible correction costs because the production was also certified in that quarter. So therefore, the business procurement process. Loan loss provision, we have about INR 9.4 crores, a combination of a loss on sale of [indiscernible] of about INR 6.7 crores. If we reduced NPA, that should have a reduction of roughly about INR 4 crores. But we decided to make an additional provision of roughly INR 6 crores, and against the accounts that we have in the NPA. We had a total cost of roughly INR 9.4 crores, bringing a INR [ 50 ] crores in the same quarter last year. And the core colors in the [indiscernible] in the immediately preceding quarter, but then they were [indiscernible] because of 2 large provisioning which we did to meet our [indiscernible]. This affected the profit before tax of to be over INR 19.8 crores and the profit after tax of over INR 14.3 crores. There's been a loss of INR 19.5 crores in the same quarter last year and there loss of about after tax of over INR 14.5 crores, of which it has been from last year. And then in the immediately preceding quarter, like I mentioned, because of the additional provision, we had a reported quarter before -- a loss before tax of over INR [ 204 ] crores, and the loss after tax of about INR 153 crores. We are [indiscernible] NPA that was only the large issue that we had last year. We have seen improvement on the ground implemented in [indiscernible] coming back to the original point. And all these things together should be helpful, I believe, in getting back to where we were in the pre-COVID stage. And barring God forbid if something of COVID comes up, that's the only challenge which we see. Otherwise, we don't see any operational challenges assets in the current financial year, and we have fairly good that we will go back to the pre-COVID kind of levels in terms of AUM, in terms of profitability and we will, on a quarter-on-quarter basis, that should be [indiscernible]
Thank you. I will now ask Madhu to give his comments before the [indiscernible] and [indiscernible].
Good afternoon, and thanks once again for joining us on this call. I'll also briefly work around what is happening in the market and then formally in the Q&A, we can have a sharper discussion on any of the points that needs to be clarified. I think from the industry perspective, what we have seen is that the wholesale that is happening for 2-wheelers is kind of stabilized over the last 4 months. We have seen it is hovering around INR 3,500,000 lakh per quarter. Q1 was about INR 36.66 lakhs, which was about INR 33.48 lakh. And just the quarter before that, that is Q3 '22, it was INR 35.8 lakhs, which I believe is a very good sign because despite all the headwinds, I think it has reached a level where it is kind of stabilized. On a month-on-month basis, [indiscernible] is something what is happening in wholesale. And the tough part of this year, that is monsoon is about to get over. And our confidence on the growth of two-wheeler market is very high with the festive season like [indiscernible] ahead on it and then next month. And of course, generally from Q2 onwards, the industry looks much better compared to previous quarters. The retail numbers that was around INR 35.3 lakhs, which was about INR 31.6 lakh as far as Q4 '22 is concerned. Retail registration numbers have seen a slight -- it has been slightly inconsistent in trend. It could be high petrol prices, inflation and you people know much better about what is happening in the global market in terms of inflation, interest rates and things like that. Again, and I keep on repeating that with the reopening of schools, colleges and revival of -- the removal of work from home facility. All these are kind of improving. And we saw that trend in Q4 as well in terms of better walk-ins on the dealer points. So at the ground also, we see that is a lot of movement as far as customer inquiry and the walk-ins and the dealer point is concerned. And so we believe that retail sales is supposed to stabilize and grow in Q2. And only thing that would pull back. This is fuel prices because vehicles run on petrol. So besides that, I think we see a very positive quarters ahead as far as sales is concerned. From a cheaper perspective, I think Vinod dwell also on that. So we were about INR 293 crores, which is about 37,000 units. And also, we have seen good contribution from our [ MCSL ] branches close to 14% of 14% of business has come through the branches, which is a very positive sign, and we are seeing a huge support from that side when ever business is impacted. We also have analyzed our portfolio a length breadth of it. And the portfolio after the first lockdown and after the second lockdown, whatever business we have done after this, we are seeing a very robust portfolio. So another confidence level as far as 2-wheeler business is concerned, while the top line should definitely lookup whatever corrective measures we have taken out of the first lockdown, after the second lockdown and weighting that risk into our credit parameters to take care of COVID impact and things like that. We are confident that portfolio is going to behave in a robust way and that data tells us. Of course, I mentioned about festive season. So we have already tied up with all the dealers that we had been doing business over the past many years when the festive season comes. Already, the marketing activities are lined up. It is business as usual for us as it was during the pre-COVID levels. I mentioned earlier also in terms of schemes, in terms of distribution and reach and things like that, we are calibrated across the country, all the schemes to target specific segment of customers with a good risk. Those are there in place, which would help us to continue to have a good and robust portfolio. Looking at the macroeconomic fundamentals, I think the MSP rise for Kharif crops announced by government, that should over very well for rural sector. I think Q1, one of the factor fro two-wheeler not picking was the rural growth. But I think that is -- that would get address with this particular issue. And so during the upcoming quarters, I think even the rural belt, which was impacted, should really look better. So this is the overall picture that I thought I should share with all of you. And if there's any specific questions, we'll address during the Q&A. So let me request Vidhi to -- kindly open up the call for the Q&A session.
[Operator Instructions] We'll take the first question from the line of Uttam Purohit from Perfect Research.
Yes, I might have missed some initial comments. Can you please tell me our disbursements have been released sequentially. Can you throw some light there?
[indiscernible] the disbursement in the immediately preceding quarter, the repairing disbursement was about INR 321 crores. And in the current quarter, INR [ 322 ] crores. But the overall disbursement in the immediately preceding quarter was about INR 368 crores. There is, I would say, in the current quarter INR 327 crores, like I said that on the retail front. Sorry, in the current quarter, the disbursement on the retail front is broadly in line that it was in the immediately preceding quarter. Last quarter [indiscernible] quarter, there's a lot of activities happen in the current quarter. Normally, in the first quarter, we don't see too much of disbursement that we had early. In the second quarter, then we have Onam and other festival which come up, where we do the expected much larger jumping the disbursement.
Okay. So sir, since we are back track in terms of ROE and ROA and an improving [ return ]. Can you throw some light on our long-term targets to achieve, let's say, in 3, 4 years?
I would possibly think in the current year and then talk about the next year 3, 4 years, so many things would keep changing on a rapid basis in terms of. Last year, we were done by the 2 [indiscernible] when COVID came up. I may not want to take that role, but definitely, we intend to be where we were in March '19 in terms of AUM by the end of the current year, current financial year. So fortunately, that which was something like INR 2,070-odd crores. So we are fully confident that we should be closer to that in the -- by the end of this current financial year. And we expect to be in the INR 3,400 crores in terms of this -- in terms of AUM by end of FY '22. So I would say that the AUM target that we have on and with us, we are currently going to do our estimation for two years at a time to fully implement [indiscernible] to 4 years [indiscernible] because so many things keep changing on a rapid basis. And we didn't want to take the risk of mixing [indiscernible] CAGR of more than 2 years.
Okay. So our expected AUM for the FY '23 end would be INR 3,400 crores or INR 3,500 crores, right?
No , I said FY '23, I expect about [ 2,150 ]. I said it would be in line with the FY '19 manual.
Okay. Okay, sir. What strategies is to keep the NPA impact going forward and it changes the chances to reduce it further?
Actually, the intention needs to reduce the NPA on an uncommon basis because we are advised to implement a circular and where the NPA -- in terms of NPA, because the standard account only is from the entire installments are collected. The reduction from the NPA and becoming a standard is a much tougher role as of today. I will explain that to you, if an account was in the 90 crore already collecting one installment was within us to take the [indiscernible] out for NPA. So that 1 installment that is emphasized, you need to actually collect at least 4 installments to achieve interest by out of product out of NPA. In that -- we have been -- therefore while, the collection from these accounts,SOF NPA, we use [indiscernible] of SOFT NPA accounts which are in the less than 90 [indiscernible] categories. From those, we are getting collections on a month-on-month basis [indiscernible] So in terms of [indiscernible] of the slides, that we have put up on the website is a movement over the -- on a quarter-on-quarter basis of the NPA, over the last 5 quarters. And you would see that in the last 2 quarters, we think we actually recognized less than 90 also as an NPA are the -- you will see the collections on this account of significance. From INR 8 crore, INR 9 crore, which was getting collected, this account moving out of NPAs. The last few quarters have seen a collection of from INR 36 and 32 respectively [indiscernible] the account is not part of NPA because the regulation fees that you have to collect all the whole installments. So overall number of NPA going down will happen but it will happen in, I would say, slow manner. But then on an overall basis, hopeful quality will keep on improving. And then we are talking about out of the INR 502 crores of NPAs that we have reported over the end of the quarter, there is about INR 128 crores of NPA growth. That's about INR 149 crores at the end of March, INR 128 crores were accounted lend [indiscernible] we can call -- we have to call the NPA because the regulation demand so. We need to be continue at 90, and some were paying on a month-on-month basis.
We have the next question from the line of Jatin [indiscernible] from RA.
Set of numbers for coming back into profits also. Sir, my first question would be on the credit cost. So in our income statement where we have put an impairment on financial instruments, that is INR 9 crores and INR 40 lakhs. And in the PPT, we are saying out of this INR 6 crores is kind of one-off. So can you please explain what is this INR 6 crores? And what is our plan for creditors for FY '23?
Thanks for being on the call. Historically, during pre-COVID, when we were doing reasonably good is good collection. Our credit cost used to be in the range of 2.45%. In the current quarter, we are expecting especial amount for reversals, which would happen from the soft NPA, which is something which I mentioned which currently end of June is about INR 128 crores. In the current quarter, the reduction in the Soft NPA of to the tune of INR 20 crores -- INR 20 crores, INR 21 crores. We are working that over the next 3 quarters mainly part of INR 128 crores lower rate because the collecting against the collection that is much easier from the part of the bucket or other NPA which is INR 90 crore. And therefore, I would say in the current quarter when we have our cost was over 2.29% is what we are planning that actually gets fulfilled. We would be -- I would say we could possibly see the net credit cost, next of all the reversals to be in the range of about 1% also, maybe it could be maybe lower.
So sir, only 1% credit cost for this year are net of the reversals?
Yes. That's our target, that's our plan, and we are [indiscernible] hopeful and we will work to achieve it.
That's very hardening to know. And sir, the next question would be in the PPT, you are seeing total sanction in hand as of 1Q FY '23, INR 1,550 crores. Can you explain what is this number be? Can you hear me?
[indiscernible] Again repeat the question please.
Sir, on Slide #3, in the PPT, you are saying total sanction in hand as on 1Q FY '23 is INR 1,550 crores. So what is this such sanctions on hand?
It is [ back to culture -- it's a combination of all the facilities purpose and functions of various vendors and it's a combination of what comes of WCDL, CP, CD term loan, all [ indicator ] . With the total sanctions that we have on this is about INR 1,550 crores.
This is the money we have taken from the financial institutions?
We have got sanctions from them. We would have taken some of it. Some of it, we would have not taken. It's a combination of both.
Sure, sir. And sir, what is our disbursement target for this year?
We got to be at a figure that we were in the -- actually, it's in FY '20, which was about INR 1,750 crore We extended. It should be around [ 2, 150 ] per target
So you're saying INR 1,750 crore disbursements, INR 2,700 crores AUM and only 1% credit loss for this year?
Yes. I also said this 1% basis reversals that we are seeing. Because in the current quarter, the reversals brought in the range of other I would say about INR [ 128 ] crores. And we are actually making a -- that we have made a provision of close to 80%. So a lot of things that will get reversed in the current quarter depending on how the NPA number come up.
And our net NPA now, sir, is 5.2%, right? So what is our target for net NPA by the end of this year?
The NPA target 5.2% is lot do with the provision that we lead to would do and the comfort we can give to the lender. So I would say that lenders would be comfortable if we are at about 4%. So we work towards that. In this part to our net NPA has been lower in the of 3% rate. But I'm sure some employees and a 4%, we could give a lot of comfortable lenders. And investment currently, the investment is to be comfortable in this.
Sure, sir. And we reported INR 16 crores of net profit after tax in this quarter. So what -- any guidance you would like to give on that front also for the full year, given all these our targets?
I will possibly rate or the second quarter because this is certainly the biggest quarter that we have out of this because open season is this quarter. We would be more comfortable giving a guidance. I'll give 2 other budget, which average and that I told you that we are looking at because of 2020 [indiscernible] and the disbursement of over 750 also. Basis that my assumption is we should be in the range of where we were in the pre-COVID level in terms of guidance to the bottom line.
[Operator Instructions] We have the next question from the line of Rishikesh from Global Capital.
So my first -- you have given the strong disbursement target this year ranging around INR 1,700 crores, INR 1,800 crores, which we saw in pre-COVID levels also around 2019. But during that figure, sir, the 2-wheeler sales were upward of INR 2 crores that year. Okay, so I wanted to know what is the basis for such a strong guidance? Okay. Are we seeing a robust 2-wheelers sales that you are seeing as seeing this year or what? Can you please explain?
On the guidance for the total [indiscernible] I think being fortune talk about it, but then that, you may need to understand that vehical cost was in the range of INR 75,000. Today we have costly because the vehicle cost in the range of about 100%. So I think that instance has increased the call. Madhu, I request if you could add on this?
Yes. I think -- so the key here is that in terms of -- I mentioned during my opening call as well in terms of distribution and in terms of the branch network that we have through our Muthoot Fincorp branches close to 3,500-odd branches are there. I think all the distribution network would really contribute to this journey. While the 2-wheeler sales during the pre-COVID, let's say, 2019 was 2 Cr plus and there can be an impact on whether the industry would have the same numbers, we really don't know. From COVID level, definitely, we are seeing there's a huge improvement. And what we believe is that wherever we were present and the good markets or strong markets where we were actually we had been gaining grounds in those locations. So very clearly, when we have budgeted, we have looked at the dealer point level at the location level and the pin code level we have projected in this time. Because we know that industry is not -- industry may not be like what it was earlier. But definitely, it would be going from whatever it was very low levels during the COVID times. We have that understanding that. Okay, industry would be under pressure. But definitely, we have the opportunity to go across all the places and especially non-south locations. Some 2018, '19, we were very gone all that we will be able to penetrate in those markets. We were successful also. But after the COVID, we had to consolidate our position, which we believe that we'll very strongly grow in these areas as well. So our unfinished agenda, which was around 2019 and end of 2020. I think that is something what we'll pursue this year, and that should enable us to get our number that we are seeking, too. In terms of -- in terms of our Muthoot Fincorp branches, that is a big opportunity that we have. We can grow that back like a 2018-'19 levels, that's the confidence and the kind of support that we from our flagship company. We have worked on a lot of initiatives how we generate business from there. So these things taken together should really help us grow our numbers. And there is no gain saying the fact that we looking at slightly higher market share what we were earlier and action is towards that. Another important thing is we operate -- we have mostly in Tier 3, Tier 4 centers, rural centers, and we are confident that even that sector should really grow well. Last couple of years, we saw that those areas also going down, but we are very confident it will bounce back this particular year. And we are seeing the positive signs in those markets. So market by market, location by location when we analyze that we are confident that these are the numbers that we should be chasing. And irrespective the industry goes that industry should bounce back now on except for fuel prices and inflation impacting people's pocket. But definitely, it's a basic I keep on repeating this, basic commuting thing for our country. And if you look at penetration, this is about not more than 100 2-wheelers for every 1,000 people, which is very low compared to the other developing countries. We should look at why by 2-wheelers per 1,000 people, that is the level that India can reach. And when that happens, or not. So it's a basic commuting and one of the -- even today most cost economic transportation for most of the population of the country especially in the Tier 3, Tier 4. So that's the opportunity that is there. opportunity is huge. And I think the fastest fast we should look. We are very confident in the future of this product.
Sir, 1 more question that I have. Can you just provide us a slippages number for this quarter? And what they were in pre-COVID Q1?
What number?
Slippages number.
Slippages Number, I think on Slide #23, we have actually given the slippages in the current cost was lower than the [indiscernible] because of about INR 56.91 crores. And the [indiscernible] fees, the number includes the [indiscernible] without possibly gone beyond 90, come below 90, which not gone to 0. So that's about INR 56.91 crores, which was about [indiscernible] were lower than the immediately preceding quarter , which [indiscernible]. And before the quarter before that, it was about INR [ 61.70 ] crores [indiscernible] INR 69.59 crores. So just going to give you a feel of the last 4 quarters, including the current quarter.
We have the next question from the line of Naveen Jain from 3N International.
I want to know like, like for 3 years, what are we targeting as a growth target? Any like 15% per annum. Any growth targets?
I think I am sure in my [indiscernible] someone that I will repeat this one second. We would possibly want to talk over 2 years right now. And I think we -- at the end of the day, our current year at about 25.50 also as we were in the -- at the end of Marach'19 and roughly about [ 3400 ] or so by end of March '24. But what I said, we have not said previous I said only 2 year for 4 years. We said currently see [indiscernible] at the time.
Okay. And my next question is like how are the collection efficiencies are improving?
Yes. Actually, collection efficiencies have increased significantly infact we setup . But if a [indiscernible] loan collection has been in the range of 100% plus against monthly fee. And it contributes to this core in the current quarter as in the current quarter means July-September quarter also.
Okay. 90-plus collections, what is the figure?
In 90-plus collection is improving in fact of the under that we collected roughly about [indiscernible] 90-plus in the current quarter in the immediately preceding quarter also, it used to be significantly lower before that 9,000, and the 3% was the collection. So I would say it has improved and we expect caution to improve further.
[Operator Instructions] We have the next question from the line of Vidhi.
Yes. Sir just [indiscernible] the reversals [indiscernible] this quarter with that in.
This is the operator. We were unable to hear the complete question, if you could repeat the same. Vidhi, Your voice is breaking up. Unfortunately, Vidhi,we will call you back. Management should please on hold as we reconnect Ms. Vidhi with the online. Over to you, Vidhi.
Yes. On the point [indiscernible]
I don't think I heard anything.
Your voice is a breaking up, Vidhi.
Let me take the phone in to random [indiscernible]
No. We are still getting a very muffled voice from your line.
I hope it's fine now. Sir, just wanted to understand that the INR 20 crores of -- do you see some INR 20 crores of reversal in provisions this quarter?
INR 20 crores of investment settles
Yes Okay. Soft NPA went down by INR 20 crores, and we see the INR 128 crores of NPA going down?
On INR 21-odd crores more of growth NPA in the current quarter, INR 9 crores, additionally, when for the resale of recourse into in terms of NPA and another INR 21 crores, INR [ 22 ] crores went down by below collection of the account continues to be the NPA. [indiscernible] collections of money is partially but not fully analyze because it's not the COVID have actually mentioned that ever since [indiscernible] there is because you can't collect all the EMI. So that continues to be an empty.
Okay. Sir, if you can give the breakup of the provisions for this quarter, like what is a standard? How much is for NPA? The breakup of INR 9 crores of provisions that you have made, if you can give a breakup of that.
Can you share that after this call?
Okay, sir. No problem. Sir, I think on the cost-to-income ratio. So do we -- expenses to be around 60% for the year? Or do we expect it to come down?
We expect it to conform because we expect the income to go up and comes to that. Therefore, the net interest income should be higher. And therefore, it's cost includes in the net of fixed cost and therefore, we expect it to come down or to come down the last, I mean. In normal years, we were in the 52%, 53% kind of rates. So we should possibly go back to that level, 50% to 52% at least that as we improve with the topline improved [indiscernible].
Okay. Understood. And sir, what is the outstanding restructured book now?
[indiscernible] but want a quality restructured book. While that we restructured today is the value of that is INR 85 crores. INR 130 crores of restructured COVID [indiscernible] INR 75 crores. And then today after 31stJuly after 1st of August, they are no longer restructuring because we had given it to a small portion of our customers. And therefore, we have given it only for a period of 4 months. So from 1st of August, 2021, we're in part of that. So unlike many of the entities will do restructuring upto 50% now its [ 22% ] of most waiting to follow that we gave only payment quality for over 4 months, or we may, june , july of last year. So it is something that has to happen on those accounts would have happened by October , November last year. So the value of that is INR 85 crores are against the INR 140 crores, INR 141 crores that we had restructured. I would not call it just a restructured.
Sir, you mean you said mainly part of the Stage 1 and Stage 2 assets. Is that correct?
It would be Stage 1. So it would be S1, S2 and S3 all the three put together. From those, I want see through not from [indiscernible] because [indiscernible] Stage 3.
35% is when stage 3
You can see 3 different versions, short term 3 version, there is in that 400 [indiscernible] And therefore, I would not -- and it's a part of the total in [indiscernible] 30%, it includes this also.
Understood. So we don't expect any significance from the restructure book part going ahead?
[indiscernible] I'm repeating this as part of my [indiscernible] and whatever will happen to the other parts of [indiscernible] which will happen to the results.
Okay. Okay. Understood, sir. And going ahead? Or you said that this like in this quarter, we has been INR 120 crores, where it got reversed this quarter. So do we expect this number to improve going ahead since we're expecting a lot of reversals in provisions? So do we expect this number to be mainly seen in Q2 or Q3?
This would be a continual focus and we expect to keep on reducing on a quarter-on-quarter basis. I mean over the next 2 to 3 quarters because [indiscernible] to possibly go back to 0, a lot of which will get collected in the normal course. Because we said that in the last few quarters, the current accounts have been INR 36 crores INR 32 crores respectively. So that correction will see coming. Amounting to become and the indicative sheet coming, and that will be increasing from the collection and because of the quality of the [indiscernible] where people have defaulted, but not -- they're delaying, but not before upon. I would say not being kind of care, we are not operators. So payments will keep coming up and payments and that will hold you to price of the book.
Okay. Understood. And sir, can you share the number of -- the market share number on retail sales that for this quarter? In March quarter, it was 1.18%. What will it be that number in this quarter?
[indiscernible] on that.
Yes, it is in the range of about 1.1 percentage.
So do has it decreased slightly quarter-on-quarter?
It wouldn't fluctuate a bit. What we are looking at is on the higher market share, but during the Q1, we'll recalibrate, rebudget and certain locations will go slow, certain locations will go high. So it would fluctuate compared to Q4. But definitely, as we go forward, the market share is collected or budgeted is much higher.
Sir, in this quarter, a part from Kerala, which geographies did really well for us, which geographies saw a better growth coming in?
So Kerala, another state where we did well Uttar Pradesh, we have done well. It has been kind of normal business as usual. Lot of locations we have restarted, which we had slowed down. We have restarted, recalibrated all our distribution that were there, so.
Sir, so what will be the touch point of your pre-COVID level of which we were at and now where in that number currently?
Touch point, I think there is no impact on touch points as far as Q4 and Q1 is concerned. The decision is which are the areas where we'll grow more and where we'll taper down depending on how that area, the portfolio will behaving. So there is absolutely no impact as far as touch points are concerned. In fact, when I said that there are -- during the first year, we have gone back to dealer points and kind of already taken a lot of commitments from them. It is a fact that already we are there, and we need to have the proposition in place where during the such season, we get the maximum counter share. So there is no impact on touch points. Only thing is that which one you want to grow and which one you want to kind of keep on and business as usual and be there in that area.
Understood. And sir, can you give any update on the coal lending arrangement that we are looking out for?
We are in the process of finalizing it. We will communicate that once we conclude on it.
We have the next question from the line of Uttam Purohit from Perfect Research.
Just to follow up that question. As we said, our retail disbursements have been in line with Q4. Can you tell me why our other disbursements are lower?
We are not -- I mean the year worst in the second quarter because even when we got the budgeted, we did didn't make anything in that. We have [indiscernible] in quarter because we try to do the revenues that is not our regular line of business, that is normal at 5%, sir. So 80% of our total disbursement. So we normally don't do it. And that is the very reason it was not budgeted also, we didn't do it. You'll see that in the booking call.
That was the last question. I now hand it over to the management for closing comments.
Thanks for being on the call with [indiscernible] very, very challenging in the last couple of years. It has gone through. I think while we had to across our body as India are still satisfied and then in the current quarter, they have any indices or things to come, we are definitely -- we possibly turn the corner and have we confident that the numbers will keep on improving quarter-on-quarter per year. We have gone through and I got where we put a happy that a lot of you or all of you have been with us well and that is what has been important thing for us because we do think, which we do -- we see this right and we continuously get support from all of your. It actually makes us doing things better -- how we are confident the second, third and fourth quarter will be even better than the first quarter. The request for the continued support. And with [indiscernible],we are fairly confident that we will do even in the next quarter and the other quarters to come there up.
Thanks for joining this call. And I think Vinod [indiscernible] we know some very wonderfully. The tough times really teaches lessons, which probably we would not have imagined during the pre-COVID levels. And today, we are -- we have a lot of learnings how to handle the situation when such black-swan event happens. And we have kind of corrected and doing a lot of corrections in the way we do business so that we are profitable and 1 of the quarters was Q1. And I think as we go forward, we have mentioned in the commentary as well that we have only good things to see ahead and market also is supporting in that way. At the same time, I think it is about how the support is around us, our ecosystem from our lenders, from our vendors, from our promoters themselves, their support and help. And of course, our entire team, which is intact, which drive this business I think from all sides. There have been very positive and the motivating contribution from them. And the only thing is that now as we get into the real action, I think -- and as a team, we are confident that we should bounce back and we've been telling that pre-COVID level is something what we want to benchmark. And we are confident that we'll be able to deliver that. And of course, our human capital is one of the greatest assets, and they have proved every time to us that during tough times, they can really bounce back and show that super performance. With that, let me close my commentary. Thank you very much, and thanks once again for joining us.
Thank you. On behalf of Antique Stock broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.