Finkurve Financial Services Limited (FINKURVE) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the SINCA Financial Services Limited Q1FY27 Earnings Conference Call. As a reminder, all participant lines will be the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this call is being recorded. I now hand the conference over to Ms. Fordham Ghoshir from Aspector PR. Thank you and over to you, ma'am.

Good evening, everyone. I am Poram Ghoshar from AdFactors. We are the director of relations. On behalf of Finco Financial Services Limited, it is my pleasure to welcome you all to the Q1 FY27 earnings conference call. Today, joining us from the management team are Mr. Priyang Kothari, Executive Director, Mr. Naveen Kothala, Chief Executive Officer, and Mr. Aakash Jain, Chief Financial Officer. We will begin today's call with opening remarks from the management, following which we will open the floor for Q&A session. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Finca Financial Services Ltd. undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments. With that, I would like to hand over the call to Mr. Priyam Kothari to deliver his opening remarks. Thank you and over to you, sir.

Good evening, everyone, and thank you for joining us for FinCurve Financial Services Earnings Call for the first quarter of FY27. On our previous earnings call, we had spoken about building FinCurve as a technology-enabled risk-cost, gold-owned franchise, with a strong emphasis on discipline growth, governance, and operational excellence. We had also shared a belief that long-term institutions are built by ensuring that systems Controls and underwriting disciplines remain ahead of growth. The developments witnessed across the industry during this quarter have only reinforced that conviction. The first quarter marked an important transition for the goal-on industry. The implementation of the revised regulatory frameworks has led organized players across the sector to align themselves with a common set of operating standards. Creating a more transparent and a disciplined operating environment. As with any significant regulatory change, there is naturally a period during which customers, distribution channels, and operating processes adjust to the new framework. While this may temporarily influence business momentum across the industry, We believe these developments are positive for the long-term evolution of the sector and will ultimately reward institutions, build on strong governance, prudent underwriting, and operational discipline. During the same period, gold prices, after witnessing a strong rally over the past year, experienced some correction and increased volatility. From our perspective, this has had no material impact on the quality of our portfolio or our risk management framework. Our conservative lending practices, disciplined loan-to-value approach, and robust collateral management processes continue to provide adequate protection across varying market conditions. Our response to such an environment remains consistent. We have never believed in pursuing short-term growth at the expense of long-term franchise quality. During periods of transition, our focus naturally shifts towards strengthening execution, improving branch productivity, enhancing operational efficiency, and reinforcing our underwriting standards. We believe these are the periods that ultimately define the quality of an institution. Throughout the quarter, we continue to make steady progress across our strategic initiatives. Our co-lending partnership continues to scale in a calibrated manner, while our cross-sell initiatives have begun gaining traction. As discussed previously, we remain focused on building a stronger free-income franchisee around our existing customer base in a measured and customer-centric manner. While these initiatives are still in their early stages, we believe they will gradually strengthen the overall economics of the business over the medium term. From a funding perspective, we continue to witness encouraging confidence from lenders and financial institutions following the recent rating upgrade and the continuing strengthening of our operating platform. Our balance sheet remains well capitalized, providing us with adequate flexibility to pursue long-term growth plans in a prudent manner. From a regulatory standpoint, we have also continued strengthening the institutional foundations of the organization. Following our transition into a middle-year NBFC, we have further enhanced our governance framework, internal processes, and control environment in line with higher regulatory standards expected of a larger institution. Alongside this, we have continued to institutionalize the organization by building a seasoned leadership team across all critical functions. During the quarter, we further strengthened our compliance and risk functions through the appointment of experienced leaders to head these verticals. Complementing the already leadership in place across finance and business. Today, Fincurve has an experienced management team leading each of its key functions with professionals bringing more than 15 years of experience in their respective domains. We believe having the right leadership depth is essential as we prepare the organization for the next phase of sustainable growth. Overall, our strategy remains unchanged. We will continue to scale the business in a manner where systems, technology, governance, and risk management remain ahead of growth. We are not focused on optimizing for individual quarters. Rather, our objective is to build an institution that delivers consistent performance across business cycles. Competition within the industry will continue to evolve, and market conditions will inevitably change over time. However, we believe enduring leadership in lending is not determined by who grows the fastest during favorable periods, but by who continues to execute with consistency when the operating environment becomes more challenging. We are pleased to have closed another quarter with continued progress across a key operating and financial metrics. More importantly, we believe the organization today is operationally stronger than it was three months ago. As we move ahead, our focus will remain on strengthening the franchise quarter after quarter, maintaining our discipline, and creating sustainable long-term value for all stakeholders. With that, I would now request our CFO to take you to the financial performance for the quarter. Following that, we will be happy to take your questions. Thank you.

Thank you, Priyank, and good evening, everyone. A warm welcome to all our stakeholders, and thank you for joining us today. Let me take you through the key financial highlights of this quarter. This quarter, our AUM has grew by 135% on a year-on-year basis. Our branch network has increased from 83 count to 118 network of branches as of 30th June, which is a 42% increase. Our revenues have increased by almost 89% and our PAT has increased by almost 65% on a year-on-year basis. Our NPAs have been pretty much stable, pretty much under control. It is at 0.54% gross NPA and 0.48% net NPA. Our ratios, key financial ratios in terms of RO LA has been 2.9. That's because of increasing leverage. Our average equity, return on equity has improvised from 8.1% of Q1 last year to 9.7% of Q1 this year. Our debt to equity has again, you know, it has, you know, multiplied by 3x almost from 0.7x to almost 2.9x as of 30th June. Our capital adequacy has remained healthy. We are at a 26.6% capital adequacy. With that, we also have a pretty comfortable liquidity position, almost 56 crores being cash in hand and almost 67 crores of being treasury investment made as of 30th June. Our, you know, so apart from, you know, these financial numbers, you know, we were able to, you know, have a few highlights that we were able to onboard, you know, the first ever institution onboard of FinCurve, which is Franklin Templeton. We have issued, they have subscribed to an entity of 50 crores, you know, received in two tranches. So, that's the first highlight. And, you know, we have also expanded our, you know, retail participation by having more than 24,000 bondholders as of 30 years. So, that also gives a lot of, you know, confidence on our, you know, entire set of team things and operations, the overall company per se. Thank you very much. So, these are the key financial highlights and critical developments of Q1. With this, we open the floor for Q&A.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Vedan Trivedi from Vinaya Capital. Please proceed.

Hello. Thank you, sir. Thank you for the opportunity. My first question is on your debt-to-equity ratio. So, debt-to-equity ratio has increased from 0.7 to 2.9. So, the company has escalated its loan book growth also. So, could you please provide some colors on the target leverage range for FI 27 and over the medium term?

So, see, our targeted range is about where the industry is right now, which is at 4X, right? And beyond that, we'll also have participation in terms of co-lending. So, our idea of having a co-lending proportion of at least 15 to 20% by end of this financial year. So, that's the overall target for FY27. And beyond, you know, 4X, we don't, for now, we don't see that happening in FI27. We would like to be in that range of 4 to 4.5.

Understood, sir. Understood. And also, sir, as your AEM scale, how much for the headroom do you have to increase the leverage?

No, I didn't get your question. As our AUM scale, how much is the headroom?

Yeah, do you, like, how much is the further headroom do you have to increase the leverage, and what level would you consider optimal while maintaining a comfortable capital and liquidity position?

That is around 1,600 crores on book, and we still have room for around 400 crores of off book. So, we still have a runway of almost 800 growth before we run out of, before we reach the optimal state.

So, sir, just to continue with it, is the current capital base sufficient to support your growth plans for FI27?

Absolutely, absolutely. So, if you look at our capital base, our net worth is about 350 crores, wherein 1x is still remaining. So, we can straight away add that 350 crores to our area. We have a 100 crore cash position, let that be as it is. Plus, there is a space for co-lending as well. So another, if we target another 15 to 20%, which is almost 300 to 400 crores, so on a 1,270 crores, we are almost adding 700 crores, which will again take us to 1,900 to 2,000 crores kind of an EO. The current capital. Plus, over and above that, there is a capital infusion from the promoters in the form of share warrants, which is about 30 growth is to come. The deadline is up to November. So, we will see that also happening in this financial year. So, that will again give us some cushion on the leverage for about 100 growth there as well.

That answered my another question. So, thank you so much. That's all from my side.

Thank you. The next question is from the line of 3D Sharma from Invest Advisor. Please proceed.

Yeah, hi. Thanks for giving me this opportunity. First, congratulations on a good set of numbers on a worldwide basis. I have two questions, and are both related to the regulation perspective. So, I wanted to understand that, you know, with RBI keeping a very close watch on gold lending, how are you making sure that all your processes, like, you know, gold valuation, ownership verification, custody, etc., are fully compliant? So have you all internally made any changes in your system or in processes to, you know, comply fully with the regulatory ask? And secondly, you know, in the next... One or two years, you know, based on any regulatory changes that you could think would impact your growth. So, is there anything of that sort in your, you know, I just wanted to understand that.

Yeah. So, see, both the new guidelines, which were very clearly drafted out and given by RBI. So, the whole industry is trying to implement that. For us, it was a different status altogether because we, at the same time, turned out to be middle-air as well. So, for us, we had to invest substantially in the compliance department. So, we have made our investments by adding, by strengthening the compliance team. We have got head of compliance. As well as the whole team under the compliance set, as well as we are investing in software to ensure that we are fully compliant for both, you know, mid-layer regulation as well as new RBI compliance regulations. See, however, I would like to tell you this compliance is an ongoing thing, and, you know, these days every... Two, three weeks, there is one or the other circular which comes in, but largely we keep track of draft circulars, and we kind of estimate that what all are the impacts for a gold-owned product. So, we have planned that, a year-long plan we have already in place, and we are executing that. However, it is an evolving framework, as if for everybody, we are also doing the same thing, and we are trying our best to comply fully to the RBI guidelines.

No, so that I understood. But I wanted to get more clarity on what are your internal processes versus goal valuation and, you know, priority checks and ownership verification and all of those. If you could just throw some light on what are these exact processes that you're following.

Yeah, so, see, goal valuation, if you are asking me, is there any change in the valuation process because of the guidelines? Then for the valuation process, the only change which in this guideline was that whenever there is a difference in valuation, then you need to inform the customer via an SMS or via a postal letter. That is the only change in the valuation process. And then there was one more guideline which says that you need to give us a valuation certificate, which anyways we were doing earlier as well. So, on the valuation process, there is no much change because of the guidelines. In fact, we were following all the things previously also, and there are very few changes which RBI suggested we are doing that. In terms of LTV, that is where the major changes have happened, wherein RBI wanted to segregate clearly between consumption loan and income generating loan. So, that we have implemented. So, income generating loans are underwritten separately and consumption loans are underwritten separately. So, that distinction we have made. And on the consumption loan, RBI has given a tiered with LTV, which is, they have given three tiers, 85, 80, and 75. So, those are pretty standard as per the regulation. We are following that. On the income generating loans, it is also the credit and risk policy, which is defined by the board approved policy. So, we are following that. So, these are the primary changes we ask us in terms of valuation as well as LD, and we are following all these, we have implemented these in our processes.

Okay, got it. I just wanted one more clarity on your expansion strategy. So, I believe that you all are, you know, quite dominant in the southern part of India. Do you have any plans of expanding in any other state or region, maybe central India or eastern, something of those sorts? If you could just give me some clarity on that.

So, we are currently, so we have already invested in the leadership in all these four states, so we are still not exhausted fully the potential of these four states. So, we will continue to do that, and then we will cater to adjacent states. So, just to give an example, we are already there till Vishakapatnam border. The next best location is Orissa. So, we will be expanding to Orissa. After these four states are fully completed, after the supervisory sent is fully exhausted, then we will move to Orissa. So, we will never, you know, expand to, you know, a very different kind of different region. So, we will grow organically.

I think that's about it. Thank you so much and all the best.

Thank you. Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Bhavya Garawan from Share India. Please proceed. Hello.

Hello. Yeah.

Yeah, hi, sir. Congratulations on good set of numbers. I have a few questions. My first question is that our net interest income grew YOY, broadly in line with the strong growth in AUM. But, you know, as a loan book continues to scale, how should we, you know, think about the trajectory on lending yields, stock funds and net interest margins?

Yeah, so if you look at yields, so yields have been pretty stable at 20%. So these yields are, you know, they will not go down, they will, you know, we are trying to increase these yields. So you can assume that it will stabilize somewhere around 20 or 20.5%. What is the other thing we are asking? Cost of funds. So, cost of funds, right now, we are a BBB plus rated organization. So, we are expecting a re-rating after a certain size, around 2000 crores. So, then we will definitely get a cost of funds benefit. But, currently, what we are doing is we are increasing our co-lending share, which is at a better cost. So, our current co-lending share is around 3%. So, our target is to reach around 20-25%, 15-20% at the end of the financial year. So, that will anyways reduce the cost of funds. So, on the yield side, you can expect a 50-bit growth, and on the cost of funds side, also, you can expect some reduction. So, that is the advisory only.

Also, on the cost of funds, you know, so far, we've just had one PSU. Our idea is to bring more PSUs on board with the larger, you know, ticket sizes. So, once PSUs are on board, I think, you know, our cost of funds will then come down, you know, reasonably. But it is all a function of our rating and, you know, size.

Got it, sir. So, you know, given an 50 basis point increase in yield and expected cost of funds decline, so can we expect an increase in margins, net interest margins?

Yes, definitely. Definitely. That's a straight function of NIMS. Increasing yield and decreasing cost.

If I have to estimate, it will be 3%. I'm sorry. In this, there are three parameters. One is your yield, the other one is your cost of funds, and the third one is your operation, OPEX, OPEX 2 AM. OPEX 2 AM, as we are growing number of branches, as well as the existing branches are growing the AEM per branch, this OPEX 2 AM will also come down. So, these are the three levers which will work parallelly to increase the NIMS. Correct.

So, sir, if I have to estimate what level of NIMS expansion are we expecting?

As we have given the guidance earlier, so we were expecting to grow this year by 60% as well as expansion as well as premium expansion.

Okay, sir. So, my next question is, sir, on return average loan assets, I mean, declined to 2.9% despite strong AUM growth. Could you help us, you know, return the same?

See, the growth that has happened on the AUM side is, again, you know, from the borrowed funds, you know, so it definitely has a cost associated, a finance cost associated to it. So, increasing AUM and increasing FAT has not been proportional. That's because, you know, our cost of funds today, so if our lending yields are at 20%, our average cost of funds or cost of borrowing, so to say, is about 11 to 11.5%. That's the range, with an OPEX cost of about average 6 to 7%, right? So, that hardly leaves us anything 100 to 200 bits kind of a free tax return, right? So, that is why increasing AUM and increasing FAT has not been proportionate. But once, you know, our yield increases, our cost goes down, definitely the spread will pass on directly because all these functions are now set. And, you know, we don't expect any significant increase on these and the expenses side.

Okay, sir. So, given this growth, when can we expect the return on access to how to stabilize and how back towards the targeted steady state?

So, at a steady state, so, see, in the short term, you know, it will not be stable, but on a steady state, we are targeting somewhere around 3% ROA. But that will happen only after, you know, we have, we reach a certain size and scale, which absorbs all the operating, you know, which gives us a better operating leverage.

See, we usually don't give a ROA, ROE guidance. What we've done is we usually, you know, look forward at least in terms of ROA, ROE for the next five years. So, if you ask us ROA, ROE guidance for the next five years, we ideally would want to be at a 3, 3.5% ROA and a 18% ROE kind of a number. That's what we are targeting.

My last question is that, you know, given the competition intensity in this space in India, so, you know, do we, are we seeing any, you know, pressure on the yield side? Or how are we tackling it?

Yeah, so, see, on the competition side, so, it is the same thing, you know, so, competition has always been there. It was always, you know, there were always players who have better cost of friends, better brands. There were banks, there were PSUs, there were big large NBFCs, and you know there were players like us, right, so with the smaller NBFCs. So the competition has been the same, just that the number of competitors have increased. So on the ground, nothing changed. The only difference is... So if you have a lower cost of funds, you can cater to another set of customers, which at this stage we may not be able to cater to. We are catering to a certain set of customers who give us a certain yield. So, these customers are also being served by competition. So, that is the only difference. So, for these customers, you know, so they're taking a loan from, let's say, a large NBFC, a bank, or us, the yield is same, right? So, there is no difference that way. So, increasing competition will eat away share of banks as well as larger NBFC rather than the smaller NBFC is what yield.

Got it.

Okay.

Thank you so much, sir, for your time and answering my questions.

All the best.

Thank you. The next question is from the liner Suraj Shinde from ES Security. Please proceed.

Yes, sir. Thank you, sir. So I just wanted to know on the corporate impact. So as we can see, particularly private and PSU banks are becoming increasingly aggressive in gold loans, with several players expanding their branch network and capabilities. How are we positioning ourselves in this increasingly competitive environment and are we seeing any meaningful change in the competitive intensity in key markets?

See, you mentioned two players, right? Banks and PSU. See, banks have always been there. In the recent times, they have been aggressive, okay? But that market is very different because they operate at a very low-yield kind of market. So, they give loans at a very low yield because the cost of funds is also very low. So, those were never our customers. So, we never get clashed on that, right? So our customer is India too, whose main purpose is, who is looking for, who is hungry for a better service, as well as a better, you know, optimum value for his collateral. Okay, so these are the two things. So in this, as the competition is increasing, three things are getting very evident. The differentiation now is primarily on product, product and scheme. Service quality, as well as, you know, post-disbersal service, which is there, right? Like, many competitors, they don't release gold on time and things like that. So, these are the nuances which matters a lot these days. In terms of pricing and branding, you know, pricing is same, right? Because even these customers are getting offered the same interest rate in our NBFC or in banks or in other larger NBFC. The pricing, there is no much difference. Okay? And branding, anyways, everybody is, you know, the loyalty of these customers to a brand is largely unseen. Okay? Except for large, you know, a large layer. So that's where it is. I hope you got the answer.

Mr. Suraj.

Hello, am I audible?

Yes, sir. Yes, sir.

Okay. So, also on the, like, gold loans part, so how do you accept the underlying demand, independent of the company? And also, if the growth price were to stabilize or collect from the current levels, what impact do you expect on looking growth, ticket sizes, and customer behavior? And what growth do we expect to remain driven by increasing concentration or could be some moderation?

We are not able to hear you. Can you please repeat yourself?

Okay. Am I audible now?

Yes.

Okay, so I'm asking how do you access the underlying mark for gold loans independent of gold price appreciation and if gold price were to stabilize or correct from the current level. So what impact do you expect on gold loan growth, ticket sizes and customer borrowing behavior and also what would you expect to remain driven by increasing penetration? There could be some moderation.

Okay, so if you look at historically, whenever the gold prices are corrected or subdued, the gold-owned industry did not grow to that extent. Okay, so it has a, you're right, it has an industry-wide, it has a direct correlation. Okay, so if you look at your steady-state book, which is already built, growing that will have a challenging time if the gold prices continue to decline. Okay, but since we are a very small NBFC and our focus is only on increasing the branches for new branches growth will definitely be there because there is a low base effect and as well as we continue to open branches, we continue to acquire new geographies. Okay, so for our size NBFC, the growth impact will not be there because we are continuing to acquire new collateral via new branches. Okay. So, what was the other question? Growth was one concern you raised. What was the other concern you raised?

On the loan growth and ticket sizes and customer journey.

Yeah, ticket sizes. Yeah, so during these times, the ticket sizes are subdued. So, if you look at, I'm thinking you will be looking subdued ticket sizes from Q4 to Q1 and Q2, you will find the major difference. That the ticket sizes are getting smaller. Okay. So that is a direct correlation with, you know, collateral price because the industry works on number of tickets per day, right? So if the gold price are high, the ticket size increases, the gold price is lower, the ticket size decreases. So ticket sizes, reduction of ticket size will also reduce the AEM as well. But that will have a major impact on already built books. But in the new branches, there is definitely scope for growth.

Okay. And what growth would we expect to remain driven by increasing penetration or there could be some moderation for the same?

No, so what we have committed, that 50 to 60% of AEM growth at the start of the financial year, we are continuing to pursue that.

Okay.

Also, one last question from my time. So, considering the technology and fast around time are increasingly becoming industry standards or capabilities on the industry front, but beyond factors, what do you believe are companies key competitive advantage in the gold loan market?

One is of course how well you're able to serve your customers like you rightly mentioned, but I think the other mode that the group has is that If you know about the group, Ogmont is one of the largest gold ecosystems in India, and the promoters, you know, carry almost 50 years of experience in the underlying asset. So, I would say that, you know, the family knows how the product, you know, moves across households. So I think that experience has given us a unique edge of truly understanding our customers and truly being able to understand them, to be able to serve them in the right possible way with the right possible product. So, I think we really understand how to deliver this, you know, product and services rightly to our customers. I think that would be our motive, other than technology, the advantage that, you know, all the other NBACs have.

Yeah, yeah. Thank you, sir. Thank you.

The next question is from the line of Anirudh Sharma from Econ Investments. Please proceed.

Hello, am I audible?

Hello.

Yes, yes.

Yeah, hi. So, I had a few questions from my side. So, sir, your age has grown strongly by approximately 135% of your own year. Could you help us understand the key drivers of this growth, particularly... What was your contribution from Newpunch customer additions, higher average ticket prices, rising gold prices, and deeper connections within the existing customer base?

Yeah, so if you look at the year-on-year growth, last year the prices have grown significantly. So if you look at the breakup of this growth, 50% has come from tonnage and 50% has come from price. Okay, so that's a simple breakup, if you ask me. Number of customers, even if you look at quarter-on-quarter, we are increasing around 15%, right? 15 to 20%. Yeah, 15. 800 per month, yeah. So number of customers are continuing to grow, but if you look at a simple breakup, then it is 50% rice and 50% tani. Our average ticket size has increased since last year. So from 1.31, it has become 1.87. But this is an industry-wide phenomenon because as I told you, it's a ticket size concept. So the collateral is same and also the branch expansion has happened.

Okay, okay. So, sir, if we normalize for the gold price appreciation, what has been the underlying volume growth in the gold loan book, and how sustainable do you see this growth rate going forward?

So, I told you, right? So, we, the 50% last year, 50% was the teenage growth. So, even in our guidance, which we have given, In Q1, if you look at, in Q1, there were no prices. In fact, the prices were correcting. It still grew our AUM by 15.9%, around 16%. So if you analyze it, this will come up to 50 to 60%. So this was our guidance. We are on the track for Q1. So we'll continue to pursue this for Q2, Q3, Q1. In fact, in our industry, Q3 and Q4 are a pretty strong quarter. So, even though, you know, if there is any disruption, we will cover up in Q3 and Q4.

Okay, okay. So, sir, for FI27, should we expect the goal on portfolio growth to remain at the current elevated levels or moderate as the base gets larger?

No, so, we consider base to be small at this scale. To call ourselves a large base is a long way to go. So what we are saying is that the guidance which we have given will continue to pursue this. And we are confident that we will lead somewhere there.

Okay, understood, sir. So, one last question from my side. With the branch network expanding, could you help us understand the targeted economics at the branch level? What is the steady state AOM or the gold loan book that you aim to achieve per branch? And what is the typical break-even period for the newly opened branch? Also, how long does it generally take for a new branch to reach its targeted productivity levels?

Yeah. So, see our average AEM per branch currently is 10.1 crores, 10.3 crores, and we wish to reach a number of 12 to 13 crores average AEM per branch. Of course, this also changes as we are opening new branches, so new branches will take time to reach this number. Even with the continuing growing new branches, we would like to keep a number somewhere around 12 to 13 crores. That is what we are aspiring for. In terms of new branch, it takes around 12 to 18 months to break even. Our break even AUM is somewhere around 5 crores, 5 to 6 crores. And we are, on a branch to branch basis, we are achieving that in 12 to 18 months.

Okay, okay. Understood, sir. Understood. So, that's it from my side. Thank you for your question. Thank you for your answer, sir.

Thank you. The next question is from the line of Varun, an investor. Please proceed.

Hi, sir. My first question is, do you see any regulatory changes potentially affecting the economies or growth potential of the golden business over the next 12 to 24 months?

As for regulation, I think RBI has given a very clear regulation equalizer for all banks, NDSS, CACS, all put together, so there are minor regulatory changes which are there, which are affecting other products as well, but these are like, we assume that these are regular course of business, so we are not expecting anything specialized for gold loans, I think whatever they had to give, they have given already.

Okay, so have we made any changes to our internal processor systems in response to this regulatory expectations?

Yes, we have done a lot of changes in line with the regulatory changes. As per the RDA norms, we have changed our process.

Okay, sir. Thank you.

Thank you. The next question is from the line of Sachin, Satya, an investor. Please proceed.

Hello. Thank you so much for giving me this opportunity. Firstly, congratulations to the management team on a very strong set of numbers and the growth that the company has delivered.

My question is far more from a shareholder perspective.

Despite the growth in revenue, the stock price is corrected by around more than 60-65% from its highs. Is there anything that you believe the market is currently misunderstanding or not fully appreciating about the company's fundamentals or future growth prospects and how the management address the disconnect between the company's operational performance and the share price performance?

So, we really don't comment on what happens in the share prices. So, we refrain from giving any guidance or any comments on that. But all we can say is that if you see the past performance of the organization, quarter on quarter, we've been performing consistently. So, our only commitment to the investors is that we've been consistently showing performance and we will continue to do so.

Okay. Thank you so much and all the best.

Thank you. That was the last question for today. I now hand the content over to the management for the closing comments. Over to you, sir.

Thank you to all the investors, you know, taking time and joined today, and we look forward to having you guys for the next quarterly phone call. Thank you so much.

Thank you. On behalf of Finca Financial Services Limited, we conclude this conference. Thank you for joining us, and you may not disconnect your lines.