Shriram Finance Limited (SHRIRAMFIN) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Shri Ram Finance Ltd. Q1 FY27 Earnings Conference Call. 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 the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umej Srivankar, Executive Vice Chairman, Sriram Finance Ltd. Thank you, and over to you, sir.

Thank you. Good evening, friends from India and Asia, and a warm welcome to everyone joining us from the western part of the world. I'm excited to share our C1FI27 earning call with you today. Joined by our Managing Director and CEO, Parag Sharma, Joint Managing Director and CFO, Sundar, and Mr. Sanjay Kumar Mundra, our Executive Director and Industry Relations Head. Looking back, the first quarter of the year has been a positive one for Shiram Finance, especially given the current situation. Let us start by examining Some broad economic indicators that affect our business directly or indirectly. India's economy wrapped up FI 2526 on a strong note, with the GDP growth picking up to 7.8% in the fourth quarter, which was a comfortable beat to the market expectation of 7.3% for the growth trajectory. GDP growth rate of 7.7 with updated base gear. Colombia has lowered its efficiency. Effect 27, 2016. No money coming in for both domestic and imported goods. 65 lakh unit as against 2.24. 18 point. Passenger vehicle sales in Q1-F27 recorded a growth of 25.9 and stands at 12.74 lakh units as against 10.12 lakh units. 20.3 with Three-wheelers sales recorded growth of 29.7 in Q1 FI27 with sales of 2.14 lakh units sold versus 1.65 lakh units sold. Tractor sales recorded growth of 21.6% with 2.65 lakh units sold against 2.18 lakh units sold in Q126. Construction equipment recorded a growth of 8.8% with 25,176 units. One for seven minutes. 1.5 lakh unit against 1.9 lakh unit. Now, I shall ask my colleague, Parag Sharma, to take to the operational performance.

Thank you. Welcome, everyone, to our Q1 FY27 earning course, and I trust you had the opportunity to produce our results and the related investor presentation, which has been posted on the website of stock exchanges. We registered a disbursement growth of 19.51% YOY. Disbursement in Q1 FY27 this year aggregated to Rs. 49,974.49 crores versus Rs. 41,816.75 crores in Q1 FY26. Our asset under management, as on 30th June 2026, registered a growth of 15.26% over Q1 FY26 and of 3.81% sequentially. Our asset under management stood at Rs. 3,13,798.39 crores, as against 2,72,000. 249.01 crores a year ago and 32,273.75 crores in Q4 FY26. Our net interest income in Q1 FY27 registered a growth of 33.67% YOY. We earned a net interest income of Rs. 8,055.70 crores in Q1 FY27 this year as compared to 6,026.43 crores in Q1 FY26. Our profit after tax grew by 59.79% and stands at Rs. 3,444.56 crores in Q1 FY27, as against Rs. 2,155.73 crores in Q1 FY26. The profit after tax was 3,013.57 crores in Q4 FY26. Our net interest margin in Q1 FY27 was 9.04% as against 8.11% in Q1 FY26 and 8.61% in Q4 FY26. Our earnings per share for the quarter stood at Rs. 14.83 as against Rs. 11.46 in Q1 FY26. On asset quality, gross stage 3 in Q1 FY27 stood at 4.64%, and net stage 3 at 2.33%, as against 4.53% gross and 2.57% net in Q1 FY26, and was 4.58% gross and 2.33% net in Q4 FY26. Our credit cost to total asset for Q1 FY27 stood at 1.66% as against 1.64% for Q1 FY26 and 1.68% for Q4 FY26. Our cost to income ratio was 25.48 in Q1 FY27 as against 29.29% recorded in Q1 FY26. The same was 25.32 in Q4F526. On the liability side, this quarter we didn't borrow much, and overall liabilities have come down from 250,690 crores as of March to 2,32,639 crores because of use of capital in the current quarter. This was infused in April 2026. The overall liabilities have come down. The cost of liability has also come down from 8.59 to 8.56, three basis point reduction. The incremental cost is at 7.77%. The liquidity coverage ratio for the company was healthy at 262.54%, and liquidity is well maintained for Six months of liability repayment. The leverage ratio came down because of this large capital infusion. It's at 2.14 times versus 3.82 as of March. The capital equity ratio for the company was healthy at 34.17%. And I think with this, we can open the forum for question and answer.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. Your first question comes from the line of Ranish, Harish Bhai Boa with ICICI. Please go ahead.

Yeah, hi, sir. Call us on a good set of numbers. Just two to three things, sir. First on this AUM mix, right? So from a two to three perspective, how do you see the share of new vehicle financing shaping up in overall vehicle financing portfolio? And what is the current risk adjusted yield in this segment? I mean, it is better than the book risk adjusted yield or at par or maybe slightly lower. And also, if you can share how internally you estimate the return metrics for new vehicle, you know, as in, I just wanted to get a sense at product level, the new vehicle finance book, are we in a steady state business, will be upwards of 50-15% or it will be slightly lower.

Yeah, see, we are slowly increasing our new vehicle disbursement, focusing on existing customer upgrading, and see, our existing customers keep upgrading to new vehicle, and that's very common. Everyone has an aspiration to upgrade to new vehicle, and we have been financing them. Plus, we are also... When we are reaching out to our earlier customer, Shidam has been in this business for nearly 50 years. Many of our customers would have gone to the other players because we were not matching the interest rate in the past. Today, since we have capital and since our cost of borrowing is coming down, we are able to match the rates. So, not only they match the rate, we are also able to... The customer much better. Right now, on. Disbursement is a new vehicle, and increasingly it will go up next two days.

And, sir, any comment on the profitability?

The profitability, since we are passing on the reduced cost of borrowing to the customer, overall margins will not come down. So, our...

We will be able to It's a second on the growth side, right? So, while we were really cautious during our Q4 earnings call because of Russia war, and hence we were not guiding for higher numbers. But as you, you know, you did mention in your opening remarks that Q1 and spending a little bit further, you know, the volumes are better. So, are we aspiring for 18 to 20% growth in this year itself? We may want to see, wait for another quarter and then reassess the guidance.

We would like to wait for another quarter because the net impact of the deficit in monsoon is a little less known. So we would like to wait for that. But we are confident that we will be able to grow more than 15 percent at least for next quarter. Then onwards, if things are much better, we feel that we will be able to catch up and grow faster. Got it. Got it.

So, can you just share the full year guidance on growth for this year at this point?

Our earlier guidance of 18% will hold good unless, you know, after second quarter, we revise it.

Got it. Okay. Okay. That's it, sir. Thank you.

Thank you. Your next question comes from the line of Chintan with Autonomous. Please go ahead.

Hi, thank you for taking my question. The first one is on asset quality. You know, what kind of impacts are you currently seeing from the West Asia war? Are you seeing, you know, capacity utilization come down? Are you seeing signs of demand destruction? Like, what signs are you currently seeing on the ground?

So basically, we... But since the film, Operating margin for the... The demand for the vehicle remains good because we have not seen any stress. The way the sales have gone up. If the utilization levels were a little lower, then sales would not have gone up by 20 percent year on year, which is actually a positive surprise to us.

Okay, so it's holding up well just now.

Okay.

The second question is on margin. So your NIMS were 9% this quarter. How should we think about your NIMS over the next three, four quarters? And, you know, how should we think about the excess liquidity that you have on your balance sheet? So I'm kind of thinking about the next few quarters here, rather than long term with the new vehicle finance. Like, let's leave that aside, just kind of trying to think about, you know, how your balance sheet develops over the next three, four quarters.

See, at immediate two quarters, I think the current NIM will hold good because we are scared. The benefit we are getting because of the lower cost of borrowing, to some extent we are passing on to the new vehicle purchasers.

I mean, this is where I have a problem with your guidance. Like, I don't understand this 8.5 number. You're currently at 9. You've got excess liquidity on balance sheet, so that will probably go a little bit higher. And the mix shift, the way you're guiding on new vehicle loans, the mix is moving very slowly. So how does the NIM then drop from, say, 9.1, 9.2% back to 8.5? That just seems very conservative. Is it fair that you're just being conservative in this guidance?

See, I'm talking about a medium term. And in the short term, I said...

But unless the... No, no, fair enough. But unless the new vehicle book grows very fast, it's hard to see that much makeshift come through and then see 8.5 name again. So either your growth will really go fast, which you're not guiding to. You're guiding to more balanced growth. Then the makeshift would be more like five years rather than two to three years. But I can understand if you're being conservative.

Thank you. Yeah, we always.

Okay. And then finally, on the non-vehicle portfolios on asset quality, could you give us some sense what's happening in, you know, MSME, gold, PL, you know, these areas, we are seeing GS3 in shop a little bit. Can you provide some color on what's happening there?

And we expect it to... We are confident of the growth in the MSME book. So from around 15% of the portfolio, MSME will become around 20% of the book. Personal also, we would like to extend to other customers. These are two, we were focusing only on two-wheeler customers. Now, we will be offering this to other customers like gold MSME customers also. My personal own book also will keep growing, but we try to, as much as possible, keep it within our known customers, and we do not wish to...

And there's no worry about asset quality in gold and MSME at the moment, right?

Gold absolutely not. The NSME, we have been cautious in the last one year. We are now pretty confident.

Final quick one. Any guidance on OPEX? Because the revenues are now growing stronger because of the excess capital. Should we think about a stable cost-income ratio or should we think about an improving cost-income ratio?

Stable, I should say.

Thank you. The next question comes from the line of Kunal Shah with Citigroup. Please go ahead.

Yeah, thanks. Firstly, again, coming on to this entire deployment of liquidity question. So if you look at it, money was utilized in terms of repaying the borrowings. Borrowings are down, and then there is some liquidity which is parked in the cash bank balances and the investments. So, here on, do we assume that maybe now the repayment of the borrowing is largely done, we will not utilize the funds or the liquidity to repay the borrowings, and it will be more utilized towards the growth, and how long would it take to utilize this entire excess liquidity out there, which is currently issued?

Yeah, I think... Whatever liability repayment we targeted, we have achieved. So we will be looking at business growth only, utilization towards more of growth only. And we previously also used to maintain slightly higher liquidity, which will be close to around three months of our future liability repayment, which works out to close to around 7000 to 18000 growth. The balance, what we have surplus of that, will definitely come down because of higher disbursement. And we don't look at any utilization towards liability repayment. In fact, we'll be looking at mobilization towards the end of the quarter of fund mobilization also. Yes, what you're saying is right. No more liability repayment. More of growth and look at some mobilization towards the end of the quarter.

Got it. So, as this liquidity gets utilized into the growth, in fact, that should support the margins in the near term, and that's the reason you are confident that it will remain in this trajectory for a few quarters. Correct. Okay, got it. And secondly, in terms of the credit cost, given that it's holding on quite well, and you indicated that there is no stress reflected in any of the segment, do we stay with the credit cost guidance or would there be any risk to whatever we are indicating we are still hitting below our guidance of 2%? So any changes out there on the credit cost fund?

It will hold good, but our, see, our guidance has been around 2%, so it will remain around that in the near term or even in the medium term. Okay, so no risk out there. Okay.

And MSME, we have started to see the inflection. Maybe it has started to grow quarter on quarter. So, as you are indicating, the MSME proportion will also inch up. Should we see the accelerated pace in SME growth and getting towards the double-digit kind of a number on a year-on-year basis now? Or would it still take some time before we get the comfort on the overall environment?

No, I think it will start growing now. We are pretty comfortable and confident. And we would like to expand the market.

So sequential momentum on MSME will pick up?

Yes.

Okay, got it. And just last question in terms of the data point breakup of disbursements.

TV for the current quadrant was 19,556 crores, passenger vehicle 11,018 crores, construction equipment 792 crores, farm equipment 947 crores, MSME 6184 crores, two-wheelers 3548 crores, gold 5153 crores, personal loans 2773 crores. Total, 49,974.

Thank you. Thanks a lot.

Thank you. The next question comes from the line of Adarsh with PP Capital. Please go ahead.

Good evening, sir. Am I audible? Yeah, so I want to ask a question regarding the gold. As you know, our Prime Minister has requested our citizens to buy less gold. So, how this is going to affect the businesses for Sriram? And overall, I want to understand, like in the Middle East crisis and all, how this is going to affect the business of Sriram Finance?

See, basically, the whole thing is, again, It's the existing jewelry. It is not against the buying of the gold. So, and gold traditionally is not used for raising resources or borrowing. People have been hesitant to part away with the gold. And thanks to some of the NBFCs. Thank you. Some of this business will flow into NBFCs. So in that way, I think it will turn out to be a good volume. West Asia crisis, even though there were certain challenges, The petroleum product as their raw material, like plastic and all. So there the cost went up, and there were some challenges for the manufacturers to pass it on to the end customers. But I think that phase is over now. So one-time increase in cost has already passed on, and people have started living with it, and therefore I think there may not be further surprise. Unless the retail fuel price goes up further, and the government also have taken a lot of measures in managing this, by the higher ethanol mix, E-20 is going to be a norm now, and that is going to have, you know, to some extent...

Thank you very much, and congratulations for the good setup number.

Thank you. Your next question comes from the line of Raghav Garg with Ambit Capital. Please go ahead.

Sir, good evening and thanks for the opportunity. I just have two questions. Most of my questions have been answered. One, I know you said that your incremental cost of funds is 7.77. I just wanted to know what is the incremental cost of bank funds, if you can share that, please.

Yeah, so we're not borrowed from banks in the current quarter, but when we start borrowing, I think it will be in the range of around 8%.

Around 8%, okay. Superb. And the second question is on your MSME portfolio. So, see, I think at the time of the merger, the thought process was to expand the portfolio. As of today, where are you? Has the product been rolled out across all those branches that you were targeting, or there's still some more penetration to go there? That's the penetration.

Thank you. Thank you.

Can you share some numbers, maybe in terms of your percentage of branches covered, what would be right now in the West, and then as you go into North, Some idea on what is the opportunity out there?

Not all branches we were doing, even in the south, we were not using all branches for sourcing the MSM. In other branches, it's mostly lending tools. A trading activity. Manufacturing, MSMIs and all are mostly focused. All branches are processing in the few branches.

Thank you. The next question comes from the line of Rajiv Mehta with ES Securities. Please go ahead.

Yeah, hi, good evening. Congratulations on good numbers. My first question is on this very resilient CV growth that we are seeing even in Q1. So is it largely reflecting that the demand on the ground has kind of stood up? When, despite, you know, the movement in the fuel price and, you know, not so, you know, if the full pass on did not happen also in the quarter, but still, the demand for used vehicles was pretty healthy in your, you know, cohort on your vintage segments? Or is it also a reflection of some decline in competitive intensity which benefited us? Or did we use some flexibility in underwriting or pricing because our cost of funds is now moving down? Can you just elaborate on what have been some granular drivers of growth in use CV in this quarter?

If you look at the broad numbers, it's in line with the increase in sales itself. The CV sales have gone up by nearly 20%, both MNHCV and LCV put together. So, naturally, you know, any player in this market will grow by 20 percent very comfortably because market is growing at 20 percent. Even in used vehicle, the demand is quite good from the rural market. So, I think it's a very comfortable journey. We have not really made extra push for growing the CV. But, yes, we have been doing more new vehicle. So, naturally, Really, yeah. Because the ticket size of new windows are pretty large.

So, sir, for the remaining part of the year, would it be right to say that you are most comfortable as far as the growth outlook is concerned in CIGI per se? Because I think this segment grew well in Q4 last year as well as Q1 of this year. And would you expect this momentum of growth, you know, to last for the whole year?

With the current scenario in mind, yes, I feel the growth rate will be comfortable and we'll be able to go as per the guidelines. Second quarter for the actual impact of El Nino, because we will see... Right now, the indication is that rice cultivation, there may not be downtrend. It will be flat year on year. There will be some downtrend in the oil seeds and the pulses, because the central India got less rainfall, and that is the current estimation. But I think if there is a prolonged rain, then there may be delay in the output. So, there can be some kind of, you know, new surprises, like positive surprises, like rain continuing to hold longer and good output. Then, of course, we need to wait for the rabbi crop. So, ultimately, you know, there is a little uncertainty towards the output and the rural income. So, that is the only challenge we would like to wait and see. Otherwise, our guidance holds good.

And, sir, this revival in growth in used TV, right? I mean, last quarter, I think we went slow despite the market was pretty strong. And now in this quarter, I think we have accelerated growth when I look at how the portfolio has grown on a Q-on-Q basis. So, you know, what has changed in our approach between two quarters?

There's no change. I think, as I was telling you, the new vehicle portfolio has gone up, so volume has gone up.

Okay. And just lastly, on the gold loan portfolio, how have we kind of, you know, adjusted with the new guidelines, which came into place from 1st April? Because I think we've seen a good growth in portfolio in this quarter. And at the same time, on the asset quality side, we have seen some forward flows. Stage 2 has gone up and stage 3 has also gone up in the golden portfolio. So, anything, any connection with the, you know, new regulations or any change in the way you should have the business, you know, before and now for the regulations?

No, no, there's no fresh guidelines. The guidelines came a year back. I don't... Thank you.

Okay, sir. Thank you.

Thank you. The next question comes from the line of Aditya Vikram with TV security. Please go ahead.

Hi, thank you for taking my question. Good evening, sir. Sir, I wanted to understand of your NIMS, which is at 9.04, what percentage of this has come from the parked funds?

Around 500 crores of the NIA, which is being reflected, is out of the park fund, that 3,000, 3,000, 6,000 crores, what we received as fresh capital, that has contributed to the 500 crores of additional interest income.

Okay, and will that, so the guidance which you are giving for the shorter term, that the NIMS will hold at this level, And considering the cautious commentary, right, because of the uncertain, uncertain situation, that 500 will remain static for next quarter as well, right, this current quarter.

It will gradually come down. So what we were indicating earlier is that the operational NIMS will hold at around 8.5% and we continue to get that. And the benefit of the surplus liquidity, the equity that we had come in, will gradually subside over a period of time.

Okay. Okay. All right. So, my next question then is, sir, with this Iran war again flaring up, right, and the weather being uncertain and based on IMD prediction, July and August does not look very, sorry, August and September might actually lead to lower rainfall or, you know, impact getting heavier and heavier, right? So, are we confident that the...

No, right now we feel that we're pretty confident of similar growth as first quarter.

Okay. Okay. And last and the final, sir, the new loan portfolio, right? We currently, you said, if I heard you correctly, 16%, right, of the total numbers, or it has increased gradually. That ideally comes at a lower NIMS, right? Lower than the second-end purchases, right? So, will that be... Will that be NIM decorative for us? Or do you see still we will be able to manage everything as it stands because of the surplus liquidity, the 500 coming from there?

Basically, borrowing cost, which is lower borrowing cost is getting passed on to them. So it is not, you know, there may not be big change in the NIM because of that.

The only reason I'm asking, sir, is because some of the peers have suggested that the funding is getting a little tighter, right? And funding costs are increasing. You don't see any challenge or any negativity coming in from that front, because you are saying that our cost will go down, and in case if we take bank funding, it would be around 8%.

Yeah, in fact, previously we used to borrow as a double-related entity. And now we are getting the benefit of rating. That itself gives us some benefit of lower cost. Okay.

For this quarter, it was 3 BIPs, right? For this quarter, it was 3 BIPs.

3 BIPs is on the overall liabilities, which has come down. Talking about the incremental, we didn't borrow much, in fact. So overall liabilities have come down, and that has... Some high cost paid off and overall liability cost came down. But when we do incremental borrowing, which was at 770, 780 levels, it should be much lower than the cost of liabilities on balance sheet, which is 8.56. So incremental borrowing costs will be lower. That is why we are confident about overall costs still coming down.

And, sir, so the only thing I don't understand then is, you have surplus liquidity within your books, right? But you have again said that between August and October, you will be raising new funds. What is that going to use for?

No, in fact, what we said is, the overall liquidity, which is more or less of June, will be utilized for growth. We'll be utilizing excess liquidity in one, one and a half months, and then look at fresh borrowing.

Okay. Okay. Okay. Got it. Got it. Thank you so much, sir. Have a good day.

Thank you. The next question comes from the line of Bunty Chavla with Ask Wealth. Please go ahead.

Thank you, sir, for giving the opportunity, and congratulations on a good set of numbers. My questions have been answered just as to... First is that now we are seeing that their off balance sheet as a percentage of total AEM is coming down consecutively from last few quarters. So what is the thought process on this? Any change in the strategy? Are we not going for the securitization or assignment or there is not much of a demand from the banking sector? How one should see this?

Since our overall boring program was... Subdued for the quarter, we have not done transactions of securitization or direct assignment. Both the transactions were not done. But when you talk about fresh borrowing towards the end of the quarter, it will be in the form of securitization also. So we will look at opportunities. I don't think there is any dearth of demand for securitized instruments. It's only that because we were carrying higher liquidity, we didn't borrow in any format, and that is why whatever portfolio was there was on a monthly amortizing basis has been paid off and not replaced with fresh transactions, which will happen towards the end of the quarter.

Secondly, as you said, full year guidance still remains at 18%, and Q2 might be around 15% to 16%. So, it seems to be slightly heavy demand from second half. So, on that basis, what we have done in terms of branch expansion, employer-based expansion, because still we are guiding for the cost-to-income ratio as a stable entity. So, any thought process or any data point if you can share.

We'll be adding some branches and definitely we'll increase the manpower, but that will not come. That additional cost will be absorbed. So, we don't really see a big change in the...

So, total branches to be added for full year FI27, if you can share that number?

Tentatively around 150 branches.

Okay. Lastly, sir, just one, because as we are now moving more towards new CV portfolio, if you can share in a presentation out of this, at least from the CV portfolio, what is the new and what is the old used vehicle in the CV portfolio, that will be quite helpful.

Okay. Sanjay will provide that information offline.

Okay. Thank you. Thank you. The next question comes from Pranutsha with 3P Investment Managers. Please go ahead. Hi. Thank you for taking my question.

Just on your MSME work, coming back to the growth, I think you had 6,200 growth of dispersal this quarter. For the QoQ growth to pick up, you would need to sizably move up from 2Q and then hit the 7,000 crore run rate plus from 3Q, 4Q onwards. So, is that the kind of number that you're looking at?

Yeah, definitely, yes.

So, should your MSME growth for the full year be inline or higher than your overall book group this particular year, FY27?

No, overall book, we have given guidelines now as per the guidelines.

Okay, but no guidance as to whether MSME can surpass that 18% target for the overall...

MSME growth will be definitely higher than this because we are projecting CV at around 15%. So MSME book and gold will be...

Understood, sir. Perfect. And second question on the growth itself. Your construction equipment has steadily been coming off, and now it's been some 1,000 crore disperse for the last five quarters. What will give you confidence to pull this back up to that 2,000 crore run rate you used to have until FMI 25?

No, we are seeing that there is some demand slowly coming back.

You don't see any lingering AQ concerns in that space?

Is that something you wish to hide? No, we don't. We feel it's robust.

Understood. Got it. Perfect. Thanks a lot. Thank you. The next question comes from Mayank Mistry with antique stock properties. Please go ahead.

Hi, sir. Thanks for the opportunity, and congratulations on a good quarter. So, most of my questions are answered. Just wanted to know, you know, your long-term view of this used vehicle demand. Since you highlighted that over a near time, this E20-based, you know, petroleum has kept prices lower, and the demand is right now good. But there is also a theory that E20-based petroleum is impacting durability of the vehicles. So, do you see this as a long-term risk in the inventory, especially, which can also, you know, impact the borrower's demand later on, since borrowers will not be keen on buying these used vehicles if, you know, the vehicles are not so long, cannot be used for a long-term loss.

See, this is basically, I think, challenge with the cars. That's what I... Our personal car will have some challenges, but the OEMs have said that their cars are capable of running on the E20, so we really don't have a clear picture on this.

Okay, sir. So, basically, I was asking for this from, you know, maybe from a five to six years point of view, so.

Yeah, I agree, but I really don't see any challenge there. See, if the very old cars, we don't normally finance. So, there is no problem with the trucks there. Basically, on the personal cars. So, there may not be a big challenge, is what I feel.

Thank you, sir. Yeah, that's all from my side. Thank you.

Thank you. Our next follow-up question comes from the line of Aditya Vikram from TB Securities. Please go ahead.

Sir, just one more thing. So, this quarter, our phase 3 assets increased 18% by-oh-y and 5% 5.5% or approximately, yeah, 5.5% Q on Q, right? It seems some stage 3 assets have increased on the CV side. So what kind of challenges are you seeing or because now we have funds, we are trying to clean up our books a little faster?

Because it is a marginal increase only. From 4.58, it has gone to 4.63.

Because the number 18% looked higher, so just wanted to see if they're trying to, you know, books a little faster than they ideally would. But you think it's a seasonal impact? Mostly nothing to do with the uncertain weather or the crisis as such.

Ladies and gentlemen, we will take that as a last question for today. I now hand the conference call over to Mr. Umesh Yavankar for closing comments.

Thank you. We had a good quarter, I should say. The second quarter is normally a little tricky because depending upon the rainfalls, and of course there is an added uncertainty of West Asia crisis, but we are very confident that the company will do well. And we'll come out with a good set of numbers. Thank you for joining.

Ladies and gentlemen, on behalf of Sriram Finance Ltd., that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines. Thank you.