Mufin Green Finance Limited (MUFIN) Q1 2027 Earnings Call Transcript

Good evening, everyone, and a very warm welcome to all of you in quarter 1 FY27 earning conference call of Muftintin Finance Limited. My name is Vishwas Kumar, Manager of Investor Relations, and I will be the moderator of today's call. On today's call, we have with us members of our senior management team, Mr. Kapil Garg, sir, our managing director, Mrs. Gunjan Jain, our CFO, and Mr. Mayank Pratap Singh, our compliance officer. So before we begin, I would like to draw your kind attention towards the safe harbor statements. Certain statements made during this call may be forward-looking in nature and are subject to various risks and uncertainties. I request you all to kindly refer the detailed disclaimer which is in our investor presentation and has been filed with NSC and BSC. It is also mentioned and available on our website that is www.muffingreenfinance.com. The financial results for quarter 1 FY27 were approved by our Board of Directors as its meeting held on 11th of August 2026 and have been already uploaded on the stock exchanges. These results have been a limited review by our statutory auditors. With that, I now invite Mr. Kapil Garg, sir, to share his opening remarks. Over to you, sir.

Thanks, everyone. Thanks, Vishwas, for arranging this call. Since this is an important event for any organization to present in front of their investors, in front of their shareholders, to describe what they are doing, how the company is growing, how the numbers are driving, and multiple other things. So, thanks everyone for joining this call of Mufin Green, a new journey, new numbers, new with a new vision. Vishwaj. So, to present the quarter one number, the number which has grown is really quite an important milestone in Mufin journey. I hope so, it is visible to everyone. So, the company performance in this quarter versus if you see the numbers in previous quarter, it seems a remarkable growth. Good morning, everyone, and welcome to the call. Thank you very much. We have changed our total model. We have been working on branch model and manpower intensive model for 3 years. We have been building some product based enabled products. We have been successful in this product. After that, we have been working on multiple factors. The first factor is cost of borrowing. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. We have a product profile, so we have innovative tech-based product, which is a medical and financing product, which is one of the largest players in this particular domain, and the numbers which are coming is really remarkable, it is a completely tech-based lending we are doing for medical insurance premium financing, and in this particular product, currently we are having a portfolio of approximately 700 crore, Which is completely NP-free. There is no delinquency. The entire market is in the portfolio zero. So the shift of traditional branch based model to the digital lending product with a minimal delinquency is the key factor which is driving Biffin Green in the new arena. Number two factor behind this remarkable numbers in this current quarter which we keep on growing in future journey is cost of borrowing. The cost of borrowing has reduced drastically. Third, our ratings are getting upgraded on a continuous basis. So for example, when you started in 2024, if I triple B, then triple E plus, then A stable, then A minus. Now we are already in discussion for a one-note rating upgrade to A rating, which we are expecting in fact in the next quarter itself, which will further reduce our borrowing. So, this is the third factor which is contributing to our growth, which is contributing to the numbers, which is contributing to the profitability of the company, which is contributing to the strong AUM of the company. The next factor which is very important is expenditures on salaries and other expenditure. The company has a remarkable growth, if we look at the number of employee companies, last year it was 390 approximately, 490, and now it is approximately 350, and we are further on a way to reduce it to 300 people, despite all the fact that our area is increasing multifold, our number of employees, Number of employee is continuously, this can be marketed from the chart, which is shown by the right now on the screen, that if you talk about quarter one, financially 2026, the number of employee was 499. So, now it is continuously, we are reducing number of employee. Currently, it is approximately 367, but by this year end, our target is for the number of employee should be approximately 300 employees, which we are targeting. So, this is a disbursement versus the employee base. So, if you compare this data, you will get to know that the company numbers and the company ratios in each and every domain is increasing multifold. For example, loan book, not this one, so if you compare with any ratio, I will just explain a few of the ratios which are very critical. For the analyzing of this data. So, for example, total borrowing has increased 120% and that too is reduced cost of borrowing. Total active lenders were 20 lenders in last quarter. Now it is 35 lenders, which is in itself is a very relevant data factor since more lenders are trusting on us. I have already told that it is due to 63 dips, and then debt-to-equity ratio in the last quarter, Thank you very much. Thank you very much, everyone, and welcome to the call. For example, if you compare it with the last quarters, the GNPA was more than 2%. Now it is 1.91%. If you talk about net NPA, that ratio has also been improved. The way company has shifted, the way company has pivoted, the way stronger AUMs are getting built, these numbers will keep on improving in future quarters, which is in itself relevant numbers for the company. Thank you. Our contracts with other states or its product may be total digital lending solutions and that too with the with minimal or nil delicacies or this product may have to medical insurance premium financing this may month-on-month quarter-on-quarter numbers are improving month-on-month quarter-on-quarter we are signing new contracts with the insurance companies we are building new tech-based product in an innovative way the second in the sense of other product which is the salary sati we are deeply integrated with the government state governments and the The volumes and the numbers which we forecast in future are relevant and are huge.

Thanks.

And I'm open to any discussion. I would love to answer any questions, any analysis or other data. We can take questions now. Any questions from the audience?

Uh, so thank you all of you on behalf of moving the finance limited, I would like to thank all of you for joining the quarter one FY27 earning conference call. Uh, we hope this discussion gave you a clear picture of our performance and the direction in which we are driving the company. We will continue to hold this quarter and look forward to staying connecting with you. For any further push, please free to write it as ir-muffinfinance.com or you can visit our website also. That is www.muffingreenfinance.com. Thank you once again for your time and continued support. Thank you so much.