Moneyboxx Finance Limited (MONEYBOXX) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call for Moneybox Finance Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ankit Jain from Stellar Investor Relations. Thank you, and over to you, sir.

Thank you, Palak. Good afternoon, everyone, and thank you for joining us today. To discuss the Q1 business performance, we have from the management, Mr. Mayur Modi, co-founder. Mr. Deepak Agarwal, Co-Founder, and Mr. Mipiral Sheth, Finance Controller. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risk and uncertainty. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made. The document relating to the company's financial performance, including investor presentation, has been uploaded on the stock exchanges and the company website. I would now like to hand over the call to the management for the opening comments, and then we will open the floor for Q&A. Thank you, and over to you, sir. Thank you, Ankit.

Good afternoon, everyone, and thank you for joining us for the Q127 Earning Conference Call of Moneybox Finance. I'm Deepak Agarwal, co-founder of Moneybox Finance. I'm joined today by my co-founder, Mayur Modi, and Viral Seed, our co-finance controller. I would like to begin with the broader operating environment and the opportunity we see in the micro-entrepreneurial lending segment, followed by our Q1 FI27 performance. Lending to the Indian? Micro-enterprises continues to represent a significant and under-penetrated opportunity. Despite the progress made in financial formalization, a large section of India's micro and small businesses continues to have limited access to formal credit. This is the segment Moneybox has been focused on since inception. Our differentiated approach combines proprietary underwriting models, a physical branch network, and technology-led processes, including AI, to serve this customer segment in a responsible and scalable manner. The micro-MSME segment continues to show encouraging signs of recovery, supported by improving rural demand and consumption, increasing formalization, and various government initiatives. We therefore remain confident about the long-term structural opportunity in this market. At the same time, we continue to monitor external developments, particularly geopolitical developments and their potential impact through oil prices, shipping costs, and customer confidence. While we remain constructive on the underlying opportunity, we are taking a calibrated approach to growth in current environment. Coming to Moneybox Q1-F527 was an important transition quarter for us. Over the last 18 to 24 months, we have made significant investments in underwriting, customer selection, collections, technology, portfolio mix, and overall team. These initiatives have helped us build a stronger foundation for the next phase of growth. During the quarter, we continued to deliberately shift the portfolio towards high-ticket secured lending and high-credit score customers. This transition has resulted in some near-term moderation in disbursements and income, but we believe it is the right strategic direction for building a more resilient, scalable, and profitable portfolio over the medium to long term. Our focus continues to be quality over volume, particularly as we operate in an environment where prudent customer selection and portfolio quality remains important. Our AEM stood at $8.32 crores as of June 2026. On an underlying basis, AEM grew price percent year-on-year, excluding the ARC impact. This worsens during the quarter to that 77 crores compared with The moderation reflects our calibrated approach to sourcing as we transition towards a higher quality and more secure portfolio. From April 26 onwards, we stopped disbursement of unsecured loans, except through partnership model and in the state of Punjab. We also stopped disbursement of secure loans below 5 lakhs, except in Q branches on or solar loans. The quality of our sourcing has, however, improved meaningfully. Secured loans accounted for 87% of our disbursements during first quarter, compared with 67% in F526. Around 70% of disbursements were in ticket sizes above 5 lakhs, while approximately 75% were to customers with zero score of 650 and above. The increase in ticket sizes. Along with higher secured mix is an important part of our strategy. We believe this will help us build a stronger portfolio while also improving operating efficiency as the business scales. Our objective is not simply to grow the book, but to grow with the right customers, stronger collateral, and better risk-adjusted economics. Alongside the improvement in sourcing quality, we have continued to remain focused on collection. Our overall collection efficiency during quarter 1 stood at 92.3%, broadly stable compared to 92.4% for FY26. This reflects the investment we have made in our collection infrastructure, free-level monitoring, technology, and customer engagement. Our legal efforts are moving in the right step with... With over-bailable warrants reaching a stage of 1,000 plus, so this is growing at a sharp pace and will start ending strong results going forward. Importantly, the quality of the incremental book that we are building today is materially stronger. Our secured book now represents approximately 75% of the EU, including loans backed by default loss guarantee programs, compared with 49% in June 2025. This represents a significant transformation in our portfolio mix, and we remain firmly on track towards our objective of approximately 80% secured a year by March 2027, including loans supported by appropriate guarantee programs. We believe that the combination of a higher secured mix Stronger customer selection and improved collection infrastructure will make our portfolio more resilient and support a more stable credit cost trajectory going forward. As we build the next phase of business, partnership-led sourcing is becoming an increasingly important part of our model. We had earlier indicated our objective of generating approximately Prodify to 30% of monthly business through direct partnership, and this channel is now gaining traction. The partnership model allows us to acquire customers more efficiently while reducing the traditional acquisition costs associated with branch-led sourcing. Importantly, all these partnerships are coming with default loss fee structures, providing additional credit protection. Therefore, while some of partnerships may carry a slightly lower headline need, the overall economics can be attractive because of lower sourcing costs and better risk-addressed returns. We believe this channel can become an important contributor to both growth and profitability as it scales. Another important growth opportunity for Moneybox is Renewal Energy Lending. We crossed Rs. 10 crores of cumulative Renewal Energy Loan disbursements till July 26, reflecting encouraging initial traction. In fact, in July, 15% of the disbursements are through Renewal Energy Loans, which is all partnership rate. We remain on track with our objective of taking renewable energy loans to approximately 10% of our AEM by the end of FY27. We are working with leading solar OEMs and few global climate foundations to scale this business. The proposition is attractive because we are financing productive assets for micro-enterprises, helping customers reduce their operating costs while creating an attractive secure lending opportunity for us. Talking about the investment made in technology, our proprietary Moneybox One loan organization system, which was launched in May 2006, 26, is now live. Fikha mobile application, Catal.ai, and MB Collect platforms continue to strengthen different parts of lending cycle. These platforms help us improving sourcing, underwriting, fraud detection, field productivity, and collection. Importantly, the technology infrastructure we have built can support a substantially larger portfolio. As AEM scales, we therefore expect these investments to increasingly translate into higher productivity, operating leverage, and improved efficiency. Our technological capabilities, together with our para-veterinary services, also help us build partnerships with global institutions like Rabo Foundation, Gates Foundation, Water.org, Shell Foundation, and a few others. These relationships provide us with access to new business opportunities, and in most cases, additional Credit protection or incentives. On the liability side, we continue to receive strong support from our vending partners. During the first four months of F527, we raised a total of 70 crores to NCD, including 50 crores during the quarter from Capri Global. This further diversifies our borrowing profile and reflects the continued confidence of our lending partners in our business model and the progress we have made in strengthening the portfolio. In fact, we added two new NBSPs, Samban Capital and Northern Ag, in the last quarter as our lending partners. We will continue to build relationships across banks and VFPs, capital markets and development-focused institutions. Our capital adequacy stood at 28.65% as of June 2026, providing us with sufficient headroom to support the growth plan for FI27. Additionally, we will look forward to institutional equity inclusion in H2 of FI27. Coming to our financial performance for the quarter, Q1 FI 27 financial performance reflects the deliberate transition underway in our portfolio, particularly the shift from unsecured towards secured lending and higher ticket loans. Total income stood at 52.12 crores, while net interest income and fee income stood at 31.02 crores. Compared to 38.52 crores in Q1, FI-26, the movement in income primarily lifted the transition in our lending mix with greater focus on secure products and higher ticket customers. Our net interest margins stood at 12.3% compared to 14.36% in Q1 of FI-26, while our interest spread stood at 12%. The movement in lending ease is consistent with the deliberate shift towards secure products, while our average borrowing cost remained at 12.5%. Though the incremental cost of borrowing is declining, our operating expenses stood at 28.59 crores compared to 29.75 crores in Q1 of last quarter. Operating expenses remained well-controlled in absolute terms despite continued investment in people, technology, credit, and collection infrastructure. The branch consolidation initiatives undertaking during the quarter have also helped us improve the efficiency of our operating platform. As AUM scales, we expect these investments to be absorbed over a larger portfolio, resulting in increasing operating leverage and improving cost efficiency. Our pre-provisioning operating profit stood at 2.43 crores during the quarter. Profit after tax stood at 0.21 crores compared to 0.24 crores in last year. While the reporting financial performance reflects the ongoing transition in our portfolio towards a higher secured mix, we believe the more important development during the quarter has been the continued improvement in an underlying operating matrix of the business. We are seeing stronger portfolio quality, a higher secured mix, stable operating expenses, and emergence of multiple growth channels. Therefore, we view Q1 FY27 as transition phase, where we have prioritized portfolio quality and right foundation for sustainable growth rather than pursuing near term volume. During the quarter, Moneybox was also recognized as the BW Disrupt Festival. of FinTech, where we received three gold awards and one silver award. This recognition is encouraging and reinforces our belief that the investment made in technology and our customer-centric lending model are creating a differentiated platform for the micro-enterprise segment. As we look ahead, our priorities for FY27 are very clear. First, we want to progressively increase reserves in momentum and grow AUN meaningfully while maintaining the improvement in portfolio quality that we have achieved. Second, we will continue to increase the secured share of our portfolio toward approximately 80% by March 2027. Third, we will continue to scale partnership-led sourcing, which we believe can provide efficient customer acquisition along with attractive risk-adjusted economics. Food. We see significant potential in renewable energy lending and digital lending, which will start soon, as significant growth engines over time. At the same time, we remain focused on improving operating leverage as our alien scale and our existing branch technology and organizational infrastructure gets utilized more efficiently. Our approach remains simple. We want to grow, but we want to grow with right customers, stronger collateral, better technology, and appropriate risk protection. We believe FI27 can be an important year for Moneybox as we translate the stronger foundation we have built into sustainable growth, improving operating leverage, and stronger co-operability. With this, I would like to thank all our shareholders, lenders, partners, and employees for their continued trust and support. We look forward to updating you on our progress as we move through FI27. As a part of summary, I would again, you know, come back to summarize what we have been doing. You would notice that unsecured lending has now, you know, from 100% of our lending when we started, has now come down to 13%. Because of the changes we saw post-July 2024 with guidelines on MFI, both the segments, which is one unsecured and the micro-lapse, suffered. So, one thing which we noticed is that on the unsecured side, we are now at a minimal level. On the secured side, again, because the last two years, while earlier, whether it was micro-lap or a large ticket loan, have a similar delinquency, but it has been seen that... Loans up to 5-6 lakhs have much higher delinquency versus a loan which are like 8 lakhs to 15 lakhs category or above segmental. So that is also the journey you are seeing that we are dispersing more and more loans with people with better civil score, with better houses, better collateral. So that is the other movement. Solar partnership is, again, giving a big boost, and, you know, this can grow to 20-25 crore business. In another six-month time, with just one partner giving us 5 crore business last month, and it's growing every month. So, this is one business, and to tell you, just after reaching 10 crore of dispersion in solar, we could get a term sheet of 100 crores from an impact lender. So, this is the early time that, you know, whether in terms of lending, whether in terms of loss guarantees, incentives, renewable energy is very much a focused area for large global institutions. So, that is a good direction we are moving in. You will also see in... Coming months, we will start some partnerships with the daily segment, wherein, again, we will not have to incur acquisition costs or collection costs. Digital lending will start because tech is extremely important. We had a good tech team, wherein, you know, now we have our own LOS, and we are able to deliver solutions very fast. So, soon, we will start lending with a good partner, the digital owners, as well. So, that's it from my side. Thank you very much, and you are welcome to ask any questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may please 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'll wait for a moment while the question queue assembles. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. The first question is from the line of Chenmai Parap, an individual investor. Please proceed with your question.

Hello, thank you for the opportunity. Am I audible? Yes, sir. Yes, yes, Chenmai. Yes, sir. So, if we look at some of the peers in the segment, they have delivered relatively strong AUM and disbursement growth, whereas we have seen a moderation. So, sir, from your perspective, where are we currently lagging them? Is it primarily the transition towards the secured lending, sourcing, or branch productivity?

So, Chimney, thanks for asking the question. The largest part is that, you know, we have made very significant changes. So, for example, from April onwards, We have stopped our unsecured business, which we used to do in MP, Chathasgarh, Haryana, Rajasthan. We completely stopped it. So that was one reason. The second is that while you will notice that most of our secured loans earlier used to be below 5 lakhs or, you know, 5 to 6 lakhs, we have now significantly moved up. I hope if you see the investor presentation, you will be able to see those numbers. So, this is a lot of adjustments we have made because, you know, at Moneyboxx, we are continuously analyzing those numbers, you know, how unsecured moved, and then the impact which came. And you will know from the peers, you know, that... Those segments, which are below 5 lakhs, below 6 lakhs, had a very similar kind of delinquency, which, you know, was noticed in the unsecured customer. So, that also we need to move. So, this is kind of more of a transition phase, you know, wherein, you know, employees sometimes needed to be changed. People need to be trained to, you know, solve those kind of crimes in terms of property papers and everything. So that is the lagging factor and because you know that will be April month only where we stop these loans. However, at the same time, I would say that, you know, last 18 to 24 months, we have spent a lot of time in, you know, this, you know, after this crisis happened and, you know, how to go about the portfolio. And now, you will start seeing this. So, like I said that, you know, we have, last month we deserved 5 crores. In solar segment with just five people. So, there is no sales team. There is no collection team for these loans. There is SLDG guarantees. There is impact fund support. So, again, we are starting one partnership in very, very soon. I mean, from next month, this version will start. Where again, we see, you know, three to five crores per month business without the team effort. Digital, we are starting. So there are these steps we are taking to grow the business. I agree, you know, versus the growth has been slowed. But I think we have very significantly changed the way, you know, because in the market now, this portfolio of in the last segment, which is 8 to 13 lakh or 7 to 15 lakh, or even 10 to 50 lakh, these are the areas which are considered to be the most prominent And beneficial in terms of lower credit costs and reasonable ease. So, even, you know, at 18 to 15 lakhs, you can make a good yield. So, that is the core segment which we are focusing on, and this transition has actually led to a lower disbursement number. But I hope the way we are going with the partnership models and many other things you said, too, things will start to grow up. Good now, the money box one, which is our... So, we can now even connect to several connectors who can just put in the data on the app itself. So, it will help us in generation of more and more leads. So, things will change over the next few months. And, you know, everything should be in the north direction in terms of AUM.

Okay. So, just wanted to know, are we completely stopping unsecured loans for good, or will we revisit it in the future?

So, what we are doing is, I would not say it's a completely stopping, but what we are doing is, we are doing it in a framework of some guarantee programs. So, for example, we have tied up with a very reputed and strong daily firm, wherein they will give us the lead, they will give us the connection, they will give us the FNDG. So that will be unsecured loan in the PSL category. But here, we are much more secured because we know all the pouring data, everything is there. So I'm not saying that we are completely stopping it. But yes, we are doing it under some or the other guarantee programs. So, we don't want to do it exactly the same way. And Punjab is anyway doing the unsecured category. I think given how the market has been operating in the last two years, we are still not comfortable with the older way of lending. But yes, as I said, we will soon start digital lending as well. These will be small ticket unsecured loans. Which will have a higher lead, much higher than our existing book. So that we will do.

That's enough? Okay. Just wanted to know that our fixed cost as we can see is relatively high. So this lower growth is also, you know, limiting our operating levels and keeping profitability under pressure. So, what steps are we taking to improve productivity and by when should we start seeing the existing customers to get better absorbed through AEM Growth?

Right, so I think the biggest concern today is AUM, you know, because it's not that our cost per se is high, you know, it's not that the employee cost per se is high, but yes, from the perspective of AUM, you know, the OPEX look high. Now, these are the steps, you know, Chinmay, we have taken that, you know, how to deal with this, that, you know, one, we have to have higher growth without hiring more people in the team. So, you will see that number of employees are not increasing. In fact, to some extent, they are decreasing. So, how we are doing it, that we are bringing these kind of partnerships. So, as I said that, you know, So that is one thing which we are doing, that bringing the partnership, wherein our OPEX, the incremental growth, does not require significant OPEX. So, that's one, you know, way we have identified, and a balance is that we have to make our branches more productive. We have also done some rationalization of branches. We have closed some branches which were in typical rural areas, and where we felt that this new lending of, you know, more like ATS of 10 lakhs is not possible, you know, in those segments or in those areas. We have taken some rationalization call there as well. So I think everything we are touching on the NPA side, we are taking very significant steps. On the OPEC side, we are taking very significant steps, you know, as I was told, you know, through these partnership tie-ups. And AEM ultimately, you know, because when these partnerships take time to build up, you know, the first partnership took the six to eight months to build up. But once this starts, it becomes forever. So, you know, that is the point that we have at least 5, 6, 7 partnerships, which can give us anywhere between, you know, 5 to 10 crore of business. And, you know, keep growing this number. So that is the strategy. But I agree that agent growth is very, very important. Somehow, you know, we needed to go back to the table and, you know, see what is not working for us. You know, as I said that you would notice that most NBFCs where they were lending to a customer which is similar to MFI, even though in a secured book, has, you know, suffered a lot in last almost two years.

So, thank you. Thank you for that. But I just wanted to understand what is the main challenge that we are facing of not being able to do the disbursement because peers are able to do it more, you know, the disbursement. So, can you shed some light on that?

So, kind of, I think a good part is kind of, you know, teams takes time, you know, because there was a team to do certain. So, peers who have been doing this for, say, several years, they have all the processes, they have all the employees focused on that particular thing. Here, it's like a continuous movement towards up and up, you know, which we have been doing. And I think that has some impact, you know, in terms of disruption. I think that is the main reason. And also, to some extent, our earlier cost of lending was relatively higher than peers, which now, you know, we have started adjusting. So, things will improve for better. I'm not saying in one or two months, but incrementally, things are getting better and better. And the portfolio of the partnership will actually support this recent growth a lot.

Can you have a timeline on that? By when do we aim to achieve those kinds of disbursements to the level of our peers? When do you think it would be for us?

I think in another four or five months, which is starting January. I mean, the way build-up is happening on these fronts, whether digital lending, solar, dairy, through partnerships. And, you know, now starting building up a connector base for the lab. I think by January, the fourth quarter of this year, should see very normalized business. And I would say maybe even sometimes better than peers in terms of productivity.

Thank you so much for your time, sir. I'll join with the queue and all the rest. Thank you.

Thank you, sir. The next question is on the line of Janvi Sharma, an individual investor. Please proceed with your question. Hello. Am I audible?

Yes, ma'am.

Yes, Janvi.

Yeah, okay. Thank you for the opportunity. Sir, my question is, you are targeting 20 to 25% of monthly business through partnerships. What is the current contribution from partnership, and what is the expected economics after factoring in lower yield, lower acquisition costs, and SLADD benefits?

So, Jandi, last month, 15% of the business came to partnership, and I believe in coming months, Say in September and October, this could reach 20% of the monthly business. And by January, 30% at least monthly business should be from the partnership level. Now, what I can say is that one, the yield is not that the yield is low. So like in solar, we are getting an yield of 23%. And again, for daily partnerships, we will be at an E-level, we will try to make about 22%, which is not less than our lab portfolio. And visitors will be much higher. So I will not comment on that as of now. But on these things, The OPEX, my understanding is that OPEX will be in the range of 1-1.5%. And because there is SLDG and SLDG guarantee programs, and sometimes even incentive programs, so numbers should look better. You know, as we increase these disbursements, EM build-up, this will really help us bringing down the OPEX level over a period of time.

Okay, okay.

Yes, we need to significantly grow our AUM at this stage. I think numbers will completely change in terms of profitability if we are able to, you know, cross 1,600, 1,700 crore kind of AUM. So that's the target that, you know, we increase our AUM. Through, obviously, increased disbursements, and maintain the OPEX level at the current level. So, while we control our OPEX at the similar level, and increase other numbers, basically the disbursement.

Okay. This is a follow-up question on that. Like a meaningful part of the partnership, this book is supported by FSBG or second loss guarantees. How should investors think about the underlying credit quality of this book once these guarantees are removed?

No. So, these are very much kind of, you know, so I tell you, for example, in solar loan, you know, if we see the competition, wherein they are not even doing without the guarantee program, credit cost is somewhere in the range of 3 to 5 percent. And then, you know, one, we see... That guarantee programs will continue for a longer time. And till then, you know, market will mature, and, you know, we will be able to see what kind of, and these guarantee programs will, you know, most likely to be, you know, continuing in nature, because, you know, right now, there are six global foundations are working with us on these programs. And there are more to be added. Plus, there are government programs, like CGFMU, which are continuing. So, the intention is, and also, I tell you, Sola loans are secured loans. They are secured by the asset, which is Sola. And also, it's a... In the sense that, you know, money does not go to borrower. It directly goes to the OEM or EPC. And, you know, there is a 20% contribution by the customer. So, it's not that credit quality is bad for these customers, but it is just that it gives us far more reassurance in terms of that, you know, we will be able to disperse this loan set up much better credit quality. And, or even, you know, NPA will not hit. So, even if I have... You know, say 5% going in the worst case, which is not likely now because we are seeing a significant support from dealers also in these collections. We will not have to book an NPA here, you know, because of the guarantee program. So, although you will notice that all the partnerships that we are making, you know, whether it is in digital lending, whether it is in daily or solar, these are very reputed clients with a strong business linkage. So, the daily partnership which we are doing is, you know, has raised 700 crore private equity from, you know, very good firms. It's a reputed name. The digital lending is again a very, very reputed need. So I think quality is going to be good, even otherwise.

Okay.

But then if there is anything change, because, you know, because of the guarantee, you know, we are giving some benefit in terms of yield. So if guarantee goes, that yield will change. Or, you know, we will re-look at how we have to do it. But at this stage, you know, I feel getting into a 300 to 500 crore kind of currency program is more difficult. That's my estimate as of now, but we will look into the future, how things shape up.

Okay. Okay. Thank you. Just a last question. Renewable energy lending is targeted at 10% of AUM, while cumulative disbursements have crossed 10 crore. What is the realistic path to reach 80 to 85 crore of AUM in this product within FY27, and what credit process are you underwriting for this portfolio?

So, two things. One is in terms of 10% of AEM. See, we started solar starting in April. First month, this was 30 lakhs. Then we deserved 1.8. Then we deserved 4. Then we deserved 5 crore plus. This month, target is 7. So, this is growing every month. And so, that's the thing, you know, by January, it should reach about 20 crore per month. So that's the reason we have said that 10% of the AUM for FY27. So that's one part. Really, you ask me, we don't see, I mean, more than, say, half a percent of credit loss in this segment for this year. You know, that is, because, you know, this is supported. I mean, the collections are supported by AUM, supported by EPCs. So, the way we are seeing that, you know, all installments are supported by EPCs, etc. So, we don't really see. And then, you know, again, it's a secure loan. So, we don't really see that, you know, higher trade costs will come in this event.

Okay. Thank you for your answers. Thank you.

Welcome. Thank you. The next question is from the line of Raj Toshi, an individual investor. Please proceed with your question.

Thanks for the opportunity.

So, my question is regarding the operating expense. So, currently, it is somewhere around 29 CR, and OPEX

AUM has also increased to 13.3. So, are you seeing any operating leverage that will come with the scale? Actually, that is the most important thing. So, you know, as I said, that OPEX now is not really increasing in terms of absolute time. So, OPEX is not really increasing. The key is to have a higher EUM now. Because, you know, if we are lending at, say, 24-25%, And, and Boranyi at 12%. There is that 12 to 13% spread, which is there, which covers, you know, helps in covering the OPEX. So the core now is to increase the disbursement and have higher yield. So that is what we need to do now, which is the most important task now. Other than obviously other things which we are working on, whether it is NPA management, you know, recovery from NPA, you know, these other things. But I think the whole focus now is that we don't see surprises and, you know, we build parallel things around these disbursements, which are more permanent in nature. So not to see surprises in terms of lower disbursements over a period of time.

So, now, Raj, if you see the

way things are moving, although, yes, the OPEX number doesn't look good, the AEM doesn't look good, but if you go into the matrix, you know, they are improving every quarter in terms of how companies should look like from that investor point of view, that, you know, lenders have this. Problem with the unsecured loans. Not everyone, but then a lot of lenders had this problem with unsecured loans. In the NDSC space, or even the investors, large institution investors. So that is now getting out of the system. Then, you know, people want to sue more because the largest opportunity is this MSME lab for NDSC like us. So that thing is also now coming up with a little bit larger ticket, better customer to find. And then there are these three channels which we set. One is on the renewable energy side, very much driven by foundations, partners, dairy again, and digital again. I mean, what we have spent on technology for the last one, one and a half year, now we'll start showing up results because we will be able to start our own digital lending journey. You know, first with a partner very soon, and then on our own as well. So, that is what, you know, all these investments will roll out to. And, you know, help us generate better margins and better profitability.

Okay, thank you for that. And also, regarding the branches as well.

So, you have mentioned that you have consolidated the branches.

So, can you quantify the cost savings we expect from the consolidation?

No, it would be early to say that, you know, but yes, we are able to contain our expenses. I would not say that cost saving immediately is very, very high. But yes, you know, on the OPEC side, you know, if you don't, so approximately, you save about 1.25 lakhs. When you, you know, because every branch is not closed, sometimes you have to still collect on those branches, but approximately 1 to 1.25 lakhs per month, which is what you save there.

Okay.

Which is the same expense on the sale price and the rental. Okay, got it. And so, again, we have also raised Rs. 70 crores through N3Ds in the last four months. So, what are the targets for EUM? Like, any additional debt and equity capital will be required to deliver

the F1 additional growth plan for EUM?

No, no, so that is the monthly requirement. So almost an epic road of debt is a monthly requirement. So that will continue and we will continue to raise that debt. So every month, I am saying this is 20 crores is not just the one debt. We raised 25 crores from Sammam, we raised from Northern Hark and we are continuously raising. Because every month there is a repayment of 30-40 crores and then we have to raise again. So that is what we do every month. As I said, there is one term sheet we have got from Global Impact Fund as well for 100 crores. This is a debt again. And then equity is obviously because for the last seven years, we have raised equity for seven times. So I don't think this year will be an exception. But the trial will be to raise from institutions this year. Okay, sure. So, that was from my side. Thank you very much for answering it. Thank you. Thank you.

Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. As there are no further questions from the participants, I now hand the conference over to management for closing comments.

Mayur. No, I think nothing's on my side.

Okay. So, thank you, everyone. Thanks for the support, and we really look forward to a long-term, strong journey in terms of growth. You know, these recent times have been tough in terms of even growth, I understand, but I think the way we are going is very, very differentiated. In the market, and, you know, this should definitely over a longer period of time, you know, give us good results. That's all from my side. Thank you again.

Thank you, sir. On behalf of Moneybox Finance Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.