Muthoot Capital Services Limited (MUTHOOTCAP) Q2 2027 Earnings Call Transcript

Good afternoon, ladies and gentlemen, and welcome to the conference call of Mutut Capital Services Limited, arranged by Concept Investor Relations to discuss its Q2 and H1FI27 results. Before we begin, let me mention a quick short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements made on the management are made on management's belief as well as assumptions made by the information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial quarter under review. Let me now introduce you to the management. We have with us today Mr. Matthews Marcos, Chief Executive Officer, and Mr. Ramandeep Gill, Chief Financial Officer. Please note that this conference will be recorded. I would now like to hand the floor to Mr. Matthews Markos, Chief Executive Officer. Thank you, and over to you, sir.

Thank you, Nirav, and good afternoon, ladies and gentlemen. Thank you for joining us for the Mutur Capital Services earnings call for the second quarter and H-1 for September 26. Let me begin by wishing all our shareholders, investors, lenders, and business partners a very happy Dhanteras and Diwali, and a great festive season ahead. Talking about the first half of the year, it's been a period of consolidation, strengthening of our institutional capabilities, and building a stronger foundation for a sustainable growth. But we have, along with that, made meaningful progress across several important areas like asset quality, credit underwriting. I wish to highlight some of the developments that we were able to achieve during the first half of the year. Firstly, our institutional strength and credit standing got a boost with the rating upgrade to AA from Brickworks. This reflects the company's improving financial performance, discipline, governance, and strengthening business fundamentals. It's a very, very important milestone for us because it reimburses our ability to access diversified funding sources, including going Pan-India for our FD product. As you are aware that we are depositing NBFC, and we were restricted to accepting deposits from the state of Kerala alone. But with this AA rating and through the digital platform, we are now allowed to go Pan-India, and we have already launched our Pan-India FD campaign. Secondly, on the business performance and growth, so the vehicle finance industry has witnessed a very healthy momentum in H1. Though there were apprehensions about the war and increasing oil prices, etc., but the industry has beaten all odds and shown a 21% growth in the first half of the year. Two-wheeler segment has recorded about 16% growth, and both passenger as well as commercial vehicle. has registered very healthy growth rate in H1. And against this industry backdrop, we achieved a cumulative disbursement in excess of 1,200 crores. More details on the numbers will be given by CFO Ramandeep. Our commercial vehicle and construction equipment disbursements increased significantly by over 100%, and so has been the case with our used car financing. Though the base has been small, but we've been able to make very significant stride in both these businesses, and those continues to be our core area of focus going forward, while two-wheeler will continue to be the war horse. Another milestone that we crossed in H1 was that our AUM crossed 3,500 crores as of September, reflecting a continued expansion of our core lending franchise. We are also consciously working towards a more diversified portfolio and channel mix by increasing the share of partners, getting into more OEMs by getting into preferred financial tie-ups, as well as increasing the product diversification. This is an important indicator of the improvement in our origination quality and collection effectiveness. We have also strengthened our early warning mechanism, improving collection interventions and focusing on resolution of the existing stress portfolios. Moving forward, our asset quality and collection remains a very, very important priority for us, and we have made encouraging progress in strengthening our collection. Collection efficiency in all our buckets have improved, and the most heartening part is that our forward flow to NPA. It has reduced by 31% over the last year, same time. So, earlier, in the last year, we had a forward flow of about 0.78%, which has come down to 0.5%, which is a very, very significant improvement. We have also made significant progress in strengthening our liability franchise. Our deposit book grew by over 100%. And lastly, because of the online intervention that we started in the beginning of this year. And with us going pan-India, as I mentioned before, this will further add weight to that. On technology, we've been continuously investing, and with the help of AI. We've been able to bring in-house a lot of the scorecards, BREs that we were currently outsourcing to various vendors. What it has done is that our time to market has significantly improved. Earlier, whenever we would want to make a change in any of our policies on the BRE's front, it would attract a change request with the vendor, and the request would be placed to the vendor, there will be a commercial involved, and there would be an internal approval to be taken, and therefore, all of these would delay the time to market. Now, on the entire two-wheeler piece, all the BREs and the scorecards have been moved in-house with our own data science team, and the risk separation has been much better than the scorecards built by the vendors earlier. So, I think it's a very, very significant milestone for us in that respect. This quarter, we will be also bringing all the BREs and the scorecards for commercial vehicles and used cars also in-house. And the timeline that we have taken internally is December for that. Looking ahead, you know, our priorities for the second half are accelerating disbursement, improving productivity across our channels, including dealer and alternate channels, scaling our commercial vehicle construction equipment and used car businesses, and building our Pan-India FD franchise. At the same time, we will remain disciplined on credit quality, collections, operating costs and capital efficiency. We don't intend to pursue growth at the expense of asset quality. Our emphasis will always be on a profitable growth, supported by stronger underwriting and better risk management. With that opening remark, I would like to hand over to Ramandeep Gill, who is our CFO, for taking you all through the financials. Thank you very much. Thank you, sir.

Good morning, all. So, in this quarter, the company has done fresh business of 677 crore. We'll do a detail as well, which has taken the company overall AEM to 3,500. With this, 25% year-on-year growth has been achieved by the company. Doing this, after this, doing this 3,530 crore of AUM, the total balance sheet size of the company has reached to 4,154 crores, making a total live customer base to 5,000, like 86,441 crores. The company is operating with total borrowings of 3,354 crores as of September end, with a borrowing cost, overall borrowing cost of 9.52 percentage. In this quarter, the shareholders fund, we have reported at 6.18 crore, and the part of the company was 0.11 CR. Now, with this, coming to the asset quality, which we have reported, the GNPA has been reported as 4.61 percentage, while the NNPA is 2.75 percentage. The company has an unchanged PCR, which is 50 percentage as compared to the previous three quarters. In this quarter, as we said, the co-lending, which we are not doing from last year or so, the only active partner was Grief Finance. That has also been closed in Q1 itself. So, the balance of the entire co-lending book has been dropped down to 382 crore, while it was 791 crore, same time in last year. So, this has been dropped by 52 percentage. This contribution for the AUM, the significant contribution has been done by Tuller Channel, wherein 122 crore has been contributed in this quarter, while the co-lending, as I said, has been dropped down by 115 CR. My best contribution came from the CV site, which is 70.23 CR is the growth, and then followed by my used car channel, which is approximately 40 crore. The portfolio has been evenly spread across various geographies. While the South is contributing approximately 40% of the total outstanding portfolio, the remaining portfolio has been evenly spread in West, North and East locations. This asset quality is set on a book of two-wheeler standalone, which was 2,636 crores. The company has reported a GDP of 135 crores. While for USCAR, which is having a book of 215 CR, the company is reporting a GDP of approximately 4 crores. With construction, equipment, and CV, the overall book outstanding is 350 crore. On that, the GNP of the company is close to 3 CR. With that, the total GNPA reported by the company comes to 145 crore. And then there is an up money case, which we have reported six months back, which comes to 15 CR. So the total GNPA comes to 160.11 CR. In this quarter, the percentage of my GNPA was 4.61 percentage. As compared to the last quarter, it has gone up. But last quarter, we also did one ARC deal. And whereas in March quarter, it was 6.84 crores. While doing the apples to apples comparison, last year, the GNPA was 5.76 percentage.

And in this year, it was 4.61 percentage.

Now, we tried to analyze the asset quality of the organization, that's from where the asset quality is getting good, and from which sources we are not able to get the good asset quality. So with that, the first thing, the entire business that has been sourced in this quarter, so this is the first quarter in the last 48 months. Wherein, the company has sourced the entire business through its MCSL only, and there is no contribution by any partner through co-lending or through co-plow. In this, so when we tried to analyze from which channel the asset quality has gone up, from the dealer channel, which is the topmost channel of the organization, and is contributing 2,453 to the overall AEM of the company. This channel is contributing 4.56% as the GNPA, while the group relationship, which is contributing 4.22 crores, this channel, it is contributing 5.70% as my GNPA, and while other channels put together, it is contributing around 0.34%. As compared to the four-wheelers, for my CV portfolio, on a total portfolio of construction vehicle, construction finance, this... My total outstanding book is 356 crore. On that, the GNP comes to 0.35 percentage. While for my used car, the portfolio outstanding was 215 crore. On that, the GNP is 1.31 percentage only. The company has taken our receipts from the installments which has been received by the company. It comes to 703 crore for this quarter. Out of those installments... 295 crore, which is 42%, comes from bank and electronic mode, while 285 crore, which constitutes 41% of those installments, comes through NACH, and remaining has come in the form of cash. So, 83% of the installments comes through bank, electronic mode, or NACH. While deep driving the financial of the company for Q2, we have seen that, yes, the impairment expense. For this quarter, it comes to 21.44 CR. Like, I have also shared a slide with the investor that it will be the first quarter where then what we have planned for impairment was 7 CR higher. But the forward flow of the company was significantly lower in this quarter, which comes to 0.50% on my total standard AUM as compared to 0.85%. Same time in last year. It means that the fresh NPA for the companies are significantly going down. The only thing is the recoveries from the old NPA, which the company is making strategies, you know, to work, and so that our overall impairment costs, at least for the upcoming quarter, should go down. And so this analysis... On the R&D of the company, the company is operating at a PVT ROF 1.04 percentage, while the profit after ticks are at a 0.75 percentage. In this quarter, the company has also done two DAs as well. That has also been reported as a note number four to the results that we have shared. The overall borrowing cost of the company in this quarter has gone down, specifically the bank loans, which has gone down by 0.61%, and the other costings are gone down by 0.15%. Incrementally, the company has borrowed 1,003 crore in this quarter. That is contributed by bank loans, 200 crores, NCDs, 400 crores, the PTC and the securitization of 353 crores, and fresh fixed deposit is 85 crores. This is the first quarter wherein the fixed deposit and fresh collection has come to more than 50 CR as compared to the previous quarter, which was in range of 18 percentage. Total deposit book, we have reported as 155 crore, marking a year-on-year growth of approximately 250 percentage in the fixed deposit book. The company has also filed the structural liquidity and the ALM to the RBI, and in both the statements, we are not finding cumulative mismatch under any stage or any bucket. The liquidity position for the upcoming months, in October, we have done a business of 306 crores, and that was the highest ever for October, and this is the first time the company has been able to scale up to 300 CR in a month. In November, and going forward, we are expecting 400 plus 400 CCR of the fresh business. With that, the fund planning of the company has already been done. Whatever is the new funding is required, and those pipelines have already been blocked. On the overall yield, with the investments, with the collateral deposits and the unincumbered deposits with the bank, the company is yielding a 6.79% while maintaining a liquidity of 148%. So, that's it from my side. Over to you for the questions.

Thank you very much. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and do. Participants are requested. Another question, Q Assembles. You may press star and 1 to ask the question. Progress to RN1 to ask the question. Please, go ahead.

Hello, sir. Congressive relations, sir, to the team on a good set of numbers. Hello. Yeah, I have to. Sir, my first question is, our own retail book has grown by like 25% year on year, and disbursements were up to 21% this quarter. So what is driving this growth and what AUM we are targeting by the end of FY27?

Thanks, Arshit. I will take that question, Raman. The changes that we have made, as I mentioned in my opening remark, we have revamped our credit underwriting now by bringing in an origination scorecard, which was completely built in-house from our data science team. And that has resulted in our approval rates going up significantly. Our approval rates are hovering around 45 to 50 percent, which was much lower than the industry.

So, sorry to interrupt. Harshal, can you please mute your line from your side?

Implementation of that, our approval rates have gone up to, in excess of 70%, closer to 75%, and that has, you know, resulted in us gaining market share in the last couple of months. And as CFO mentioned in his presentation, the October numbers have been very encouraging. The overall retail in October, vis-a-vis last year, October, was about 32% down. Last year, October, there was an overall sale of about 30 lakh units of vehicles, which has come down to 20 lakh units. One of the reasons for that is also because last year, both the festive occasions of Navratri and Diwali, Zanthira came in the same month, and therefore October was an inflated number. This year, we expect that number to happen in November. However, on a lower base of 20 lakhs, And that is because of the interventions that we have brought in our BREs and our origination scorecard. On the question of AUM, we have crossed 3,500 crores, and we would... or exit the year closer to 4,200 crores.

Okay, sir. So, and our two-wheeler yield has gone up from, like, 20% to 22% over the past year. Like, what has helped you improve this pricing, and can you maintain this level going forward?

So, actually, our internal MCSL yield has always been around the 21.5 to 22% mark, but what was pulling down the overall yield was that we had a significant share of co-lending all this while, and as again, as mentioned by the CFO during his presentation, we have stopped, we have taken a conscious decision to stop co-lending business overall, and that And that's the reason why... That is our NCSL book that is more or less reflecting in our overall yield, whereas earlier the co-lending share which was at a lower yield would pull the overall yields down. So we will be able to sustain this yield.

Okay, sir, and sir, one last question on commercial vehicle displacement grew like 62% and your growth grew 36% this quarter. How big do you want these segments to become in your overall book over the next two years?

Over the next two years, car and TV should occupy more than 50%, or closer to 60% of the overall book. That's the focus for us. Because these two are larger ticket size loans, longer tenure loans, which will help us build our EVM faster. And of course, at a risk level, much lower riskier as a product compared to a two-wheeler loan.

Okay, sir. Thank you. Thank you. Happy Devalu to you.

Thank you. Happy Devalu to you, too.

Thank you. Madhya Saban, Jimi Press, star and one to ask the question. I'm Lano Barbe Strain, individual investor.

Thank you so much, sir, for giving me the opportunity to ask the question. So our first question is, our public deposits have grown drastically, reflecting a strong traction in our deposit mobilization. So how do you envision the growth in the upcoming quarter and years?

There are two reasons for the public deposit to grow. One is, of course, as I mentioned, that we've got a rating upgrade to AA, which enables us to go pan-India. Well, that's been a very recent change, but during the beginning of the year, we launched our online FD platform. So that made us much more accessible to the customers. Earlier, a customer would have to walk into a branch of ours to place an FD. And there also we were not soliciting FD from all the branches because we had a restriction of doing it only in Kerala. So branches were not exactly sourcing locations. We would finally, FDs were booked only in the head office. And those kind of restrictions used to keep our overall access to customers restricted. But now with us going online, having a full... to end journey on our website with a video KYC on all the accessibility has increased and of course our rates are better compared to banks and other NBFC which has helped us grow. And we will continue to focus on this product because this helps us diversify our liability franchise and also have more control because this is a very, very granular deposit. Our average ticket size here is only about less than 5 lakhs. And that will help us already. And even it comes at a much lower cost than our current borrowing rates. So we'll continue to focus on this. And I'm sure that this going back in India, we should be able to, you know, really.

Sir, got the clarity on public deposits. Sir, my next question is on bank borrowing cost. It has also come from a basis point. So, how much more can it come then, and can you guide us going forward for the upcoming quarters?

So, bank borrowing cost has gone down. We have seen that 0.61% reduction we have already taken. Now, with this rating upgrade, I am expecting another 0.25% to 0.30%, but market these days behaving in a way wherein we are not expecting some cost to go down. Still, you know, we'll put all our efforts and our target is extremely simple that whatever is the next funding that we'll receive from the bank, it has to be lower than the previous funding which we have received. So with that target, I am expecting another 0.10 to come down by merchant.

Got it, sir. Thank you so much, sir. Happy Diwali to Madhut Capital team.

Happy Diwali to you. Happy Diwali to you, Madhut. Thank you.

Thank you. Participants, you may press star and want to ask a question. Next question is from the land of Amit from Robo Capital. Please go ahead.

Thank you. Actually, I was looking to get NII numbers quarter on quarter and year on year and compare that to the growth of Loanbook. Sorry, I joined the call late, but I was trying to find the same in the presentation. I couldn't find it.

So, in the quarterly financial parameters, you can see that there is a fourth row which is saying NII. That we have shared. So, last year, same time, I'll just read it out for you.

Last year, same time.

Sorry to interrupt you, sir.

I don't see any P&L in the presentation, you know, where I can compare quarter and quarter year and year for all lines.

It is there. Sir, it is there. Quarton parameter is there. So, I'll say it to you. No problem, sir. So, it is last quarter, it is 72.15 CR, while in this quarter, it comes to 94.46 CR. So there is an increase in the NII by 16.80 crore. That is the change.

Okay, and how was it last year? Same quarter last year? Same quarter last year was 72.15.

And Q1? So that is, Q1, it was 77.66.

And now it is 94.94.

I'll tell you this is because of two things, why it is increasing. Number one, we already did, we did one DA transaction as well. So that upfront interest of around 14 CR is there in this transaction. So if you make it down, it will be around 80.46 crores. Still, you know, around 11-12 percentage higher than what we have reported in the last year same time.

Right, Shadha. I think the NI is not growing in tandem with the... You know, in line with the advance of the loan book growth, is that fair to say and how? And when can we see the same type of NIR growth, you know, like suppose the loan book is growing at 25%, we would like to see NIR growing at 25%. Sir, just one thing.

If loan book is going by this pace, NIA can't grow like this. I'll tell you why. Because, see, loan book is a function of the sourcing plus there are repayments as well. For example, a two-year loan for a two-wheeler. Okay. Today, if I do 200 crore for a two-wheeler business, 150 crore would be my repayment. So on that 150 crore, I will not get any sort of interest income. I will be only receiving 50 crore as an incremental sourcing. On that only, I will be able to receive the incremental interest income. So maybe that is the reason wherein my NII might not, and then another reason, sir, as you have seen, finance cost is going down quarter on quarter, okay, and the interest income and the yields. Like in last quarter, if you see Q2 of last year, my co-lending portion was around 25% of the entire book. So the blended yield was only 18.5%. Percentage. Now, that portion, as an incremental portion, is almost zero now, and then the total holding of the co-lending books comes from 8-9%. So, I am expecting, even if you see the blended yield has also gone up by 2%. So, maybe when the effect of the entire book will go down, because that book is sourced at around 12-12.5%. So maybe the effect of the entire book will go down in the upcoming two, three quarters, and then we will be able to see pure increase in the two-wheeler business from the MTSL. On contrary, what has the impact of that two-wheeler business increase on my interest income? So I think at that point in time, you will be able to see the interest income proportionately growing with my two-wheeler book. I hope that will answer your question.

Yes, correct. Let me just clarify for next year. So, let's say we are at 80 crores now, and if you take it on the run rate basis, you know, we may end up the year at, say, you know, 330, 335 crores of run rate for NAI. Now, how do you see the loan book growth for FY28? Like, suppose the loan book, you know, we finish the year at, say, 4,000, 4,200 crore range. How do you see the loan book for FY28? In percentage terms, and then how do you see the impact on NIR? I understand, sir.

So, if you see now, if you see the book now, if you see the investor slides, the third slide says that the loan book mix. So, right now, if you see on a loan book of 3,500 CR, that portfolio of corporate loan, or I will say portfolio of the loans which are yielding lower. comes to approximately 400 crores. Now, that 400 crore effect will go down. Say, for example, it will go down as 200 crore in the next three quarters. Now, next financial year, when you see the opening book as 4,200 crore, on that 4,200 crore, you will be receiving pure interest income, which is a higher yield on the interest income of Sir, after you said off, we lost your audio.

Can you repeat that one sentence again, please?

Sorry, sorry. I'll just take it up now. So, in the two quarters, say, now the overall AUM is 3,500 crores. Okay. Of that, the lower yielding AUM contains around 400 crores approximately. Now, that 400 crore will get down, say, in approximately four quarters. So, by March, that 400 crore would be outstanding as 200 crores in the entire book. So, with 4,200 CR of the total outstanding, the 200 CR would be my lower yielding and 4,000 CR would be my higher yielding interest. If you compare that with my March 2026. Now, what happened in March 2026, my AUM, which I have closed at around 2,600 crore, of that 800 crore was my lower yielding, which compromise of my corporate loan and my co-lending. So, it was around 40%. Now, that will be gone down to 7 to 8% in March 2027. So, going forward, I will be earning the higher interest. Of that 2,000 CR of income. So, maybe in next financial year, we can see that the growth of the NII would be much higher than what we have seen in this year. So, I hope I am able to answer your question mathematically.

Thank you. Amit, I'll request to come back for a follow-up question. Participants, you may press star and 1 to ask a question. Next question is from the line of Divya Jain. From Safira Capital, please go ahead.

Hello, sir. Am I on a date?

Yes, but your voice is breaking a little bit.

What kind of art do we expect for this year and next year?

One second. Divya, I didn't hear you properly. Sir, credit cost, she's asking.

Sir, credit cost. Okay. So, shall I take that? Yeah, yeah, take it.

Sir, sorry.

We are already at a PBT ROI of one percentage, and the next six months, so now this season has been started for the company from October onwards. So, we are expecting whatever we have sourced in the first six months. That will be multiplied by 2, and then so as the jump can be seen in the interest income. Also, the parameters for asset quality has been arrested by the company. As I have said that, the forward flow of the company to the NPA has gone down to 0.50%, while it was 0.87% in last year and 0.67% in my Q1. So with that, the impairment cost is going down quarter on quarter. Right now, we can see that, you know, as of H1, 28 crore was my total impairment cost. Now, that cost, I will not say that it will become 56 CR as an additional cost. It will not be like that. So, we want to arrest that cost. And it has to be sub 2% as we close our March 2027 results.

We are unable to hear you. Next question is from Shadij Warma from Rest Assured Welt Advisors. Please go ahead.

Yeah, hi, good afternoon. Am I audible? Yeah, this is your audible. Yeah, sir, previously, you know, we had mentioned a few calls away that the ultimate goal of the company is sometime to get a 4, 4.5% ROA, blended ROA type return. So my understanding was I wanted to understand if we take a net yield of, say, 12%. You know, we'll be able to manage the OPEX and NPA within 6-7% because currently it's looking like a very difficult blight bar to that type of NPA.

Yes, you are right that our goal is about 4% and we stick to that number. Currently, what is happening is that we have two new businesses which is in an investment phase. Which is used car and CV. Both the businesses standalone don't make profit because it's investment time there. We are adding manpower there. We are putting credit collection, sales, infrastructure there. And therefore, it is burning cash, both these businesses. Also, we have made a lot of investment in IT, which is why today the entire heavy lifting is being done by the two-wheeler business. Gradually, as these two businesses grow, we expect TV to break even by the end of this year and car to break even by the first quarter of next year. Thank you.

Thank you, sir, for that. Just one more question. So recently, there was a presentation being done on account aggregators where they had mentioned a slide where loans were sourced via accounts aggregator versus non-accounts aggregator. And for our product lines, the NPA ratios, the experience there was much better because of much higher data touch points. So what is the management's opinion on this? Should we in future look at AA seriously or we will rely on our own, you know, data sets and our own points? That was my last question.

So, we are already using account aggregator for almost an year now. And in fact, on the two-wheeler business, we have almost 40-45% hits from the account aggregator. And on car and CV, we have in excess of 65% hits. So, it's a mandate. Every customer, we put him through the account aggregator mode. But the failure rates are higher on a two-wheeler profile, and therefore, we have been able to reach about 40%, which also, I think, is a very good number compared to the industry. Many two-wheeler players don't use account aggregator. Car and CV, we have already reached 65%. So, we have been using account aggregator for quite some time, at least a year now. Does that answer your question? Yes, yes, sir. Thank you so much. Happy Diwali. Thank you. Happy Diwali to you, too.

Thank you, Shiten. Next question is from 9 of...

My name is Rahul, and I just have a couple of questions. As the Phoenix ARC pool has already seen about 77% of its security received redeemed. So are the recoveries coming better than expected, and could this lead to any write-backs in the coming quarters?

Yes, you are right. The recoveries are much better than expected. And ride back, Raman, you want to take that on the ride back? At what point in time you will be ready for a ride back?

So we are expecting this Phoenix pool to get recovered, honestly, as of September of next year. It would be 100% recovered. Then when I said recover, which means the original pool size was 235 crore. Of that, my security receipt was only 102 crore. So the balance sheet will always say $102 crore, and that $102 crore will be able to recover the finish. Now the remaining pool between $102 and $235 crore that we originally sold, whatever recoveries will come, that will come only to MCSL. And if you see the trend, the recoveries from this pool, even for last 6-7 months, it is around $2.5 crore itself. So which means that, you know, in next year also we want to continue the same momentum, and these customers also exist. Next year, September 2027, we are expecting a good amount of chunk from all three ARCs. First, yes, ARC1 will get close. Then ARC2, next financial year, I'm expecting it will also reach to somewhere close to 80-85% of repayments.

Okay. One more question. You now have over around 5.8 lakh live retail loans across 23 states. Which new states or region do you see as the biggest growth opportunity going forward?

So we would want to go deeper into the existing states as of now because there is still a lot of scope there. We still are hovering around a 2.5% to 3% market share in two-wheeler and much smaller in other two businesses. We still have hope to go much more deeper into the existing states. We will consolidate our positions there and then look for any further expansion. I think we are adequately covered as of now. Happy Diwali to you, too.

Thank you very much. Ladies and gentlemen, we'll take that as the last question. I would now like to hand the conference over to Mr. Matthews Marcos for closing comments.

Thank you, everyone, for joining this call. Once again, as we go into the festive season, let me take this opportunity to wish all of you and your loved ones a very happy Dhanteras and a happy Diwali and a lot of prosperity ahead. Thank you for showing your confidence in Muthud Capital Services. And I request you to continue to stay invested. And from the management side, we are working hard to ensure that, you know, the company does well in all the parameters and really becomes an all-star. Thank you very much for joining us today. And once again, Katsui, wishes to all of you. Thank you.

Thank you very much. On behalf of Mutut Capital Services Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your line.