Repco Home Finance (NSE:REPCOHOME) Q1 2027 Earnings Call

0:09 Ladies and gentlemen, good day, and welcome to Repco Home Finance Limited q one FY twenty seven earnings call hosted by YES Securities Limited. Please note all participants are currently in listen only mode. There will be an opportunity for you to ask questions following the conclusion of the management's opening remarks. Please note that this conference is being recorded. I now hand the conference over to mister Rajiv Mehta from US Securities. Thank you. Hand over to you. Yeah. Thanks,. Good evening, everyone. Thank you for joining this q one f f twenty seven conference call of Repco Home Finance. From the management team, we have mister P. Karuna Karan, MD and CEO, mister P. K. Whiteyanathan, hold time director and chief development officer, mister M. Raja, chief business officer, mister A. Palapandi, chief operating officer, Mr. Ankush Tiwari, Company Secretary and Compliance Officer and Miss Shanti Shikanth, Chief Financial Officer.

1:08 With this, I hand over the call to Mr. Karnakaran for his opening remarks, post which we can open the floor for q and a. Yeah, mister... Thanks, mister Rajiv. Good evening to everyone. I would like to welcome to the earning call of our company for the quarter ended 06/30/2026. First of all, I thank you all for joining in this call. The detail in the financial results and operational highlights have already been shared in the investor presentation and published here earlier and also available in our website. For the benefit of entities, have not had the opportunity to review the financials. I will read the performance of our company before they move into clear new sessions.

2:03 Sanctions stood at 938 crores as against $90.07 crore in f I twenty six, and disbursements at $8.43 crores as compared to $8.29 crore in q one f I twenty six. In the month of April, we have... As a routine thing, we got transferred a few branch heads and second line offices. And in the month of May, we have promoted the eligible candidate to next to CADR. This is the process every year we used to contact this year, which is which is... This process affected our, you know, disbursement in June quarter. Now our people are settling the new places of posting.

2:54 Disbursements are happening as per our expectations. July disbursement and disbursement from August 1 to till date are in line with our expectations. And AUM stands at $15,009.90 crores as end of 06/30/2026. We have seen 8.9% year on year growth in the AUM. What I mentioned, the $159.90 crores is excluding this first check, but not realized. Almost 57% of the... My... Our book is coming from Tamil Nadu. Our book is well diversified.

3:46 We have not seen significant shift or changes in salary than... Non salary class profile of the borrower. The ratio of exposure between non salary than salary segments to that 53.546.5% respectively. The share of non HL, that is home equity loan is stood at 29%, and home loans stood at 71% as end of June twenty twenty six. In respect of book quality, we continue to maintain a strong focus on asset quality. As end of the June, our GNPS stood at, in absolute terms, stood at $427.27 crores with the GNPS ratio of 2.7% compared to 405 crores and 2.6% in the previous quarter of the same period.

4:53 On year on year basis, we have seen significant improvement in asset quality In absolute terms, NPS declined at the... Is it 485% of the June? Our gross NPS was 480% of the June. 06/26/2025, our gross NPA stood at 425 crores. We have seen substantial reduction in NPA on year on year pay... Year basis. In terms of percentage also, we have seen improvement on year on year basis. Our systematic and regular follow-up would result reduction in NPA in going forward. Our NPAs and the overdue in new loan book is under control.

5:44 Coming to the provisions, the ECL provision, the cumulative ECL provision as on 06/30/2026 to that 352 cross. Our PCR, that means stage three provision to to stage three gross assets is is about 54%. Coming to stage two, our stage two numbers are at 7.2%, broadly stable compared with 7% in the previous quarter and showing a significant improvement from 9.7% a year ago. In stage two and as well as NPA cons, we are recovering, but the recoveries are not sufficient to upgrade to accounts to account asset standards.

6:42 We are making a substantial recovery in both both assets as to stage two as well as stage three along with the penal interest, other charges we are recovering. But but recoveries are not sufficient to shift to assets to next... I mean, higher higher category. Well, coming to the borrowing side, the cost of funds of the company stood at 8.3%. The borrowing mix remains at 86% from banking system and 6.2% from NHP and 4.8% from Repco Bank. And out of total borrowings, the NCD contribution is about 1% and about point 5% from CPs and PTC.

7:35 During the current financial year, we have received a refinance support from National Housing Bank to the extent of 600 crores. Out of 600 crores, we already availed 106 crores in... During the first week of August. Remaining amount will be utilized shortly as and when we need funds. Coming to the profitability, our net interest income increased to 216 crores as against the 207 crores in last June. NIM for current quarter stood at 5.4. We are able to maintain a 3.4 spread for quarter ended June 2026.

8:26 Our net profit stood at 114 crores as against 108 crores in the previous year. Our ROE and ROA stood at 12.72.9% respectively. We have taken various steps to reduce our cost. If you see the if you see the numbers, we have seen reduction in cost year on year basis as well as sequentially. Our cost to income ratio stood at about 26%. As end of the June, our credit cost stood at 0.2. During the current quarter, we have not opened any new branches. Our branch count stood at 242 branches.

9:19 Out of 242 branches, about 32 satellites centers we are having. Our current financial year, we want to open another 12 to 13 branches, and the majority of the branches will be in places like AAP, Telangana, and Karnataka, and this side of our country. This is our performance of June quarter. Going forward, our priorities will be accelerate the disbursements. Our transfers and promotion exercise slightly affected our disbursements. Now our people are settled. So we will accelerate our disbursement while growing. We want to maintain the quality.

10:10 And that's it. We don't want dilution on compromise and the quality of asset for the sake of growth. It will improve our operating efficiency. We want to diversify our library side. We got the 600 gross refinance. I mean, that we are negotiating with our bankers for reducing our rate of interest. This is our plan for this current quarter. Guidance... In respect of guidance, I stick on a guidance of what I have given in my last con call. That is 5,000 crores disbursements and 13 to 14% growth in the AUM and reducing NPA by 40 crores.

11:05 This is the guidance what I have given in last call. We are sticking on the guidance all year. For current quarter, we are targeting thousand 200, $2,002.50 gross disbursements, and we set the target of bring it down June NPA to last March NPA level. That means our June NPA was about close to 427 gross. This number, we want to broaden it down to around 405 close. This is... This part part that we want to do it in current quarter. We thank each one of you for showing interest in our companies.

11:53 Just now, I opened the floor for q and a. Go to strategy. Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise an icon from the participants tab on your screen. We request participants to restrict to two questions each and then return to the queue for more questions. To rejoin the queue, you may click on the raise an icon again. We'll wait for a few minutes until the question queue assembles. Ladies and gentlemen, please remain connected.

12:54 We'll take a first question from Gurumurthy of HNI. Please unmute your connection and go ahead. Yes. Hi. Can you hear us?, can you please go ahead? Would you like to try it one more time? Can you unmute your microphone once? Yeah. Am I audible now? Yes, please. Okay.

13:41 So I just wanted to know if I check the long term growth of Repco Home Finance, I find it disappointing because the starting rate of interest of Repco Home Finance is something like 11 percentage for a lender. Am I right or wrong? No, sir. Sir, by lender, you mean the rate that we give to our customers? Or Correct. Correct. Customers. Sir, we start from 8.75, and our average is at 10.5%, sir, for housing loans. But you know what? What I find out across the home finance companies, some bank... Banks are giving, like, average rate of interest on home loans is something like 8.5 to 8.75 percentage.

14:27 And with respect to Repco Home Finance, I find it It's purely based on cost of funds, sir. It's purely based on cost of funds. Agree. No. No. No. No. I'm not connecting the cost of funds at all. Yes. I... I'm just saying that... Let... Let's say, for example, if I'm a customer, I come to Repco, I end up... I may end up paying 10.75, 11% also in certain cases. But if I go to a general home finance company, I will definitely get lower rate of interest. Please, sir. The rate of interest fixed based on your income, rating, CB score, and everything. So many factors are there. Agree. So depends on the customer. Sir, first of first of all, the rate of interest fixed on on on what customers depends on the cost of borrowing of each institutions.

15:16 Okay. Bank's cost of fund is entirely different. They are having a free... I mean, they are having a CASA for which they are paying around the 3%, three and a half percent or something like that. For for our company, it is not like that. I'm borrowing from the banking system. I'm borrowing from National Housing Bank and lending. So the... My average cost itself, it's for itself to eight point... Around... In and around 8.35 to 8.3 to 8.35. In this scenario, pending that PSU rate, it's not at all possible for me. It is not at all viable business for the company, number one. Okay. Number two, my set of target customer is not like PSU set kind of target customer.

16:05 PSU set up customer is entirely solid, pure solid class customer. My setup... So target customer is not like that. They are working in an organized sector. They are working in the business, doing the business. They will not have a sufficient income proof to show their cash flows and the income. That kind of borrowers, I'm targeting number two. Number three, the pricing of... The ultimate pricing is depends on the profile of the customer on risk basis. I'm ascertaining the risk of the buy... Risk of the borrower based on 16, 17 parameters. Based on that, price will be fixed. This is the system what we are following. Even some of the housing finance companies, NBX is also occurring at 17, 18% people are going.

16:58 That that is actually... I find... Because I thought economics will degree in post graduation. I find it amusing to hear this that the people are going for this. That is, again, like... Just like an unregistered money lender. Actually, one more thing I wanted to ask. If Repco Home Finance is not able to give returns to its shareholders, why is there any restriction on you to diversify your business? I'll give you an example. If if a shareholder has subscribed you to IPO of Repco in 2013 and you compare the current market price, he has hardly made any money.

17:50 Now with respect to myself, I'm one of the top 100 shareholders in the company. I hold a very high quantity of shares in Repco Home Finance because I believe that Repco may also diversify into other lines of business, which I find, it didn't... It could not do. So it is following the same old system of taking, at from banking system and giving it... Passing passing it on with a margin of two to three percentage. So, yeah, as a customer, I'm the biggest shareholders in... Amongst individual shareholders in Repco because I hold more than 2 lakh 25,000 shares. But I find it amusing that tomorrow if I have to buy a huge house, I may not be able to, you know, take the loan from Repco as a cuss...

18:38 Genuine customer, but I will be going to banking system because they are flush with funds, and the average rate of return is eight to 8.5 percentage. Not... Sir. Yeah. I will not... In in... As a policy, as a principle, I will not make any command on our share price in there. But my question again remains, since your system is fixed, are you going to diversify into other lines of business? Right now, we don't have any ideas. See, we are expert in the... We are in the field for twenty five years years. We know only housing finance business right now. We don't have expert and expertise in other business. Let... Let's see. Let's examine.

19:23 Right now, we don't have a plan to diversify our business. We want accuracy and we... Though we don't want diversify our business, we will be very aggressive in business disbursements going forward. But aggressiveness at a higher rate of interest is difficult. No. I I... See, I'm... See, tried... Mister Raja said my... I have his initial rate is... The beginning rate is 8.75. Yes. With that rate... Yes. Sabin, when Sir, Ashish, there is a market segment in this rate also, sir. Sir, what you are talking about is an vanilla product or what we call as an primary housing loan market, where it is at seven point five and eight percentage, but there is also a market in our country for our kind of products, and many players are there in that market.

20:12 We are trying to garner our own market share, increase our disbursement, and bring in more profit shares. We are working towards that, but we'll be more aggressive from now on, sir. That... That's what we have planned also, and our plan is in place, sir. So if you look at our disbursement number for last eight, nine quarters, we are seeing increasing trend now that everything is settled. I... We have done IT revamping. So many things will... Structural changes we have done. All the things are stabilized. Now we shifted to aggressive mode. Going forward, you can see substantial improvement in the disbursement as well as growth in the AUM. And also, sir, we have an HFC license, sir. So diversification is not going to be an off the cuff for us because foreign HFC license, we are allowed to do only housing loans or mortgage loans, if I can say that. Of course, we people only know housing finance.

21:08 What I meant was if you are Sorry. So, Gurumurthy, would you like to rejoin the queue? We have other participants as well. Alright. No. You can... Yeah. Sure, please. Thank you. Thank you. We'll take our next question now from of Investec., please unmute your microphone and go ahead. Yeah. Hi, sir. Thanks for the opportunity. So I just had one question. Like, this this was impacted by the check issue. So x of that, what is the what is the gross level disbursements that that we have done? Because the sanction also seems sort of low. So if you can give that bookkeeping quick. Yeah. On a monthly basis, my month end disbursement, which will be at around 33 to 40 crores month on month, would be carry forward.

21:58 So that is a cyclical for me. So except for that, that won't be much of an operation, sir, in the numbers whatever you have reported. That's a that's a business as usual for us. Every month, every year. Yes. Okay. So the first quarter disbursements, but they they have been impacted by the check Yes, sir. My my my June month number, which is part of the first quarter, my June month number would have that operation, sir. Yes. Okay. Okay. Thank you. Thank you. Requesting participants to please click on the raise an icon if you wish to ask a question. We'll take a question from Rajiv Mehta of, US Securities. Rajiv, please go ahead.

22:50 Oh, yeah. Hi. Sir, just to, you know, have, you know, the visibility clear about the group that you are talking that you will do, can you tell us some business numbers for June, July, whether the momentum is back to the normal levels? What is the monthly disbursement, you know, run rate we are, you know you know, exhibiting in August? Because you're talking about 12... You know, 1,200 crore and $12.50 odd crore from straightaway 40 crore. So can you give us more confidence about how June and July has been in terms of numbers? Yeah. I mean, on the June month and July month, this first one has been on track as whatever commitment we are getting of thousand 200 crores per month... Per quarter. Sorry. We are we are on track. First quarter as usual.

23:38 Every month, that is a trend for us. Whether we like it or not, that's a trend for us. But if this quarter is looking good, my June... Even in the first quarter, my June month numbers has been good. My July is even better. And August, hopefully, I'm I'm looking at clocking more than whatever we have done. So my Yeah. So my numbers are in track. And for the year, yes, we are in track for 5,000 crores. So, Amit, you are pretty sure that we are sitting... Yeah. Yeah. Yeah. Yeah. I'm pretty sure and confident that we are... We'll have been in the position to achieve a thousand 200 crores disbursements. Since since this is a price sensitive information, as per our own policy, I'm not supposed to disclose numbers right now. But the disbursement, what what has happened in July and till date from August to till date in line with our expectations and our...

24:29 I'm sure based on that, only we have about... Around a 200 close disbursements. And so between what you did and what you missed in, you know, first quarter and now the second quarter, the momentum is pretty much very good. Have you changed any of your policy with regard to pricing, with regard to customer selection? Or it's with the same policy, same pricing that you've been able to get the... I think as you are as you are aware, we have not made any major changes either in our policy nor in our organization setup. But in the sourcing, we have we have brought in more focus on sourcing channels. Like, there is a small alignment change in our sourcing channel from DSA to other ways and all those things. But those are all very, very marginal.

25:14 And now the focus is more... The pressure is more the team has been set in place now. So the the the the has started ticking. That's all. In connection with interest rate, as end of the June, we are maintaining about 3.4% spread. We want to grow, want to show... Mean, aggressiveness in the disbursements. Maintaining this level of spread will be really challenging. Though we have not changed the policy level changes up in the pricing system. Case by case, I may need I may need to sacrifice some portion in the part of fixing a rate of interest. So spread may slightly come down going forward.

26:03 Okay. And that is essentially from the fact that you wanna be slightly aggressive on disbursement and even the cost of fund will increase. I'm not foreseeing any increase in the cost of fund because NHP has sanctioned 600 crores refinance facility. Of course, I have undertaken 100 crores. With that, I will compensate whatever in... Increase in cost of funds. The cost of funds will staple at the present level. Sir, I also see, you know, this elevation in your runoff of the book. Right? Even in one queue, the runoff of the book is higher than four queue. Meaning that there is a significant indirect competition through BT outs.

26:50 So is is the reading right that the BT outs... BT out would have been higher in q one versus q four? And if the BT out is going up, what are we doing to ensure that wherever prudent, we can, you know, retain good quality customers by offering, you know, good rates or offering a a top up note? Yeah. Yeah. We already decided. We have seen spike in video out in the June quarter compared with the March. Yes. We decided to retain the good customer, those who are having a good track code of twenty four months and and a good source of income, and good LTV, and having a civil score, and all we decided to reduce...

27:38 Offer some good concession to retain the retain the customer to avoid the PTOs. Rajiv, this is the other side of my coin of being aggressive because when I am being aggressive in the market with my marketing activities, I become visible to every... To all my competitors and they start targeting me. So it happens. We are we are geared up, and we are we are... Stepped up our retention efforts. And that is... There's a bit of sacrifice on the rate of interest for BT out also. We are we are working on it. Of course, we have also rolled out a new incentive schemes for BT outs. Those who are putting efforts and convincing the borrower and retaining the customer. We have introduced a new incentive schemes. Definitely, I'm I'm... Hope it will work going forward.

28:29 We can see a reduction in BT outs. Mhmm. One thing I have to sacrifice... I I have to sacrifice my spreads, Maintaining the spreads and controlling BT outs, aggressive disbursements will be difficult. Got it. Aggressive disbursement and controlling BT out, I need to sacrifice some portion on spread. Understood. Yeah. I'll step back and, Swapi, we can go back to the queue. Yeah. Thank you, Rajiv. Requesting participants to please click on the raise hand icon if you wish to ask a question. We'll wait for the question queue to assemble. Participants are requested to click on the raise hand icon.

29:39 Ladies and gentlemen, please stay connected. We'll take a question now from Sanjana Shivram of DAM Capital. Sanjana, please unmute your microphone and go ahead. Yeah. Hi. Am I audible? Yes, please. Yeah. So, thank you for taking my question. There has been some asset quality deterioration across stage two, stage three. So is there any color you can give us on... Is... Was this business as usual, or is there something to call out over here? And maybe what... If there was any geography specific asset quality in shop? This is... I'll say, what I'm doing to order, this marginal increase in the gross NPA only because of the slight disturbance because of the transfers and the promotions.

30:45 But the... They were settled in June itself. So in June, we are showing a very good figure. We have... These press releases only because of this transfer and the promotions in two months. And that also very marginal increase. If you compare with the last year, last year also first quarter, we have shown marginal increase. That will be settled down in the coming quarters. Definitely, in the second quarter itself, we will bring down to March here. In addition to that, yes, recoveries are happening in the NP accounts. Recoveries are happening in stage two accounts even along with the penal interest and other charges we are collecting. But the amount what we collected from the borrower is not sufficient to upgrade to next category of asset.

31:33 Okay. So going forward, can we expect recoveries to outpace the provisions? Yeah. Recoveries will improve. Yeah. Recoveries will improve. In opening remarks, we... I told we want to reduce our NPA by 40 crores for current financial year. And for... By September end, we want to bring it down from NPL level of $4.25 as end of June to around 400 crores. That's what our target. I'm sure and confident we'll we'll we'll let you... What are the numbers we have right now. I've given the guide. That's the guidance. In addition to that, we have already bifurcated this A and P into two divisions. Number one, soft A and P and the other one is a chronic A P.

32:20 Soft NBA is the slippage is from the April 25 to June 26. We are monitoring those cases through separate particular called the regional practical managers. We have allocated around 40 accounts to each audience. Total accounts we are having is around 100 cases. Around 40 to 40 records allocated to each audience. So we are expecting even if we reduce at least 50%, we can easily reduce around 70 to 70 close. On the other side, we are also targeting the chronic NP also. We have strengthened our recovery agencies. So we have also revised their timeline and the pay structure for them. So on the other side, we are vigorously taking the legal actions under some policy. So simultaneously, we are attacking both the soft NPA as well as the chronic NPA.

33:20 With these steps, we are easily... Achieve our target of less than 2% NPA by the end of March twenty seven. Okay. Okay. So... And I have one more question. So we have already seen a little bit of, you know, spread compression this year. So as you do call out a little bit more for those, so how much do you think further this year we could see? And do you see that we've been doing around ballpark of 3% ROE for a bit? So do you see the spread compression to overall effect how we see ROE going ahead?... See here. Predict compression. Yeah. See, at end of the June, my return on assets stood at about 11.75 and cost of funds is about 8.31, and we are maintaining a spread of 3.44.

34:09 Of course, we got a refinance from National Housing Bank to the extent of 600 crores, 100 crores I already availed, which will... The refinance with what availed... Already availed and what I'm going to avail from from NHP in one... Another two or three months, which will help me to reduce my cost offense, number one. I mean, I'm also putting a lot of pressures to existing bankers to reduce their interest rate. We will be aggressive in the growth going forward. Our BT outs in first quarter are slightly higher compared with March. To arrest the BT out to improve the disbursement, we need to sacrifice some portion, some some basis points yield on as advances.

34:59 So, ultimately, my spread may... Going forward may come down by ten ten to 12... 10... Maximum of 10 basis points in next coming quarter. And post which you're expecting it to be broadly stable? Yeah. Okay. Okay. And any impact on Sanjana, the please would you like to rejoin the queue? Yeah. Thank you so much. We are taking our next question now from of LLP. Polarity, please go ahead. Yes. You have unmuted. Please, go ahead. We can hear you then.

35:54 Do you want to try it one more time? Please unmute your microphone. Yes. Am I audible now? Yes, please. Yeah. Great. Sir, just in the last couple of years, you had, what I can just spent, a lot of time in improving the technology, upgrading the technology, and also increasing the branch network. And then, also, you have hired a lot of people. If you can just take a step back and then guide us through what you have done and then where do you stand in this transformation journey, how it could help the company for the next couple of years in terms of the growth and bringing in the consistency. That will be really helpful, sir. Yeah. Growth. IT transformation, yes. We have carried out the entire IT transformation in two phases.

36:45 All the two phases, we have implemented successfully mobile applications. We got rolled out, really, which is helping us to improve our turnaround time in sanctioning of the loan. We have done lot of API in last three, four months, like linking with other applications applications like and like that. We have done a lot of integrations we have done, which is helping us to improve the... Our turnaround time, number one. Number two, the biggest of structural changes what we have done is verticalization.

37:34 Earlier, our branch had this responsible for all the activities like from marketing sourcing the proposal to recovering NPA initiating surplus. There's so many things he have to handle. That model is working for particular size of the book. We want to take the company to next level. We feel that the particular station or specialization is needed. We've done a particular stations. We establish a separate vertical for recoveries, collections, even NPL peer management for. We are having a separate vertical to take care of initiating. We are having a separate vertical for all the MP accounts. We put a separate vertical for...

38:28 To monitor new MP accounts, which are the ones slipped in very recent past. We got put a separate verticals. All those things are really helping us for sales. Our yearly branch is responsible for sales. Now we are having a separate sales vertical is there. We go... Had arrangement tie ups with few DSAs, market leading DSAs, bigger... Recruited DSTs. Now we are having a connectors also. So this structure change is really helping us the company to improve the performance, which is savings from the disbursement numbers. Quarter and quarter and barring June quarter quarter and quarter of our disbursements are going up. Now that settlement, whatever cases is gone. Now we shifted to aggressive mode going forward.

39:18 We will be more aggressive in the disbursement group... Growth in the area. You can see the numb... From the numbers, you can see the... Our aggressive unit forward. And so just the... My earlier question as well. In setting geographies, you added people. Even if I look at now the AUM by state, Telangana is doing well. Tamil Nadu is probably in the double digit, but the rest of the states, there is some uneven growth. Would you like to look at the business from the geography standpoint, or you are more comfortable looking at the overall NBFC level, how the growth is coming in? Yeah, Kiran. Say, last year, we were... We we were... We took a holistic approach, across the country, we were recruiting sales team, bringing in verticalization.

40:04 All those things has been done, and now we have got we have got a consistency of number overall. But this year, starting... We have started concentrating on non TN states. To start with the southern southern non TN states like Andhra, Telangana, Karnataka, we want to do good. Then we already have in type of Maharashtra, Rajasthan, Gujarat, and, of course, MP. That that also we are putting a putting a very, very strong team in place. So by this year and by the next year, we should have a... We should see a very, very considerable traction and growth in those areas also. That is what we are planning. Because Tamil Nadu, we know we are already there and our numbers are good in Tamil Nadu. But other than Tamil Nadu, we want to grow and we are already on on the track for this. It's a one last question from my side. How do you look at the competition at this point of time? Because we are seeing more HFCs coming in, and then also we hear that there is a lot of competition on the ground. What is your take on the competition, sir? Yeah. Kiran... Yeah. Kiran, say, looking at the vintage of twenty three years for us, there has always been competition either in one way or the other. We we we have tried with the competition, and I don't think that is going to stop us going going forward. Yes. Competition will be there, should be there, and we will grow. Yes.

41:17 Thanks, sir. This is really helpful. Thank you. Thank you so much, Kiran. We'll move to our next speaker. We have Nidesh Jain of Investec. Nidesh, please go ahead. Am I audible? Yeah. Yes, Nitesh. Yeah. So what are the target for disbursement for FY '27? And what are the reasons why the disbursement within q one is flat by o one? We were doing quite well on disbursement last year, but q one is flat by o y. So what is the reason for that? And what is the target for... Yeah. But I... That's briefed by my MD in the opening comments. My guidance or guidance for this year, FY '27 is $55,000 crores.

42:02 Q one, by our DNA, by our practice has always been slow for us because of... We have... We'll have all promotions and transfers in April and May. So that unsettles a lot of our branches and team. Now it has settled down. We are the same this year also. Now it has been settled down. My June figures... That is June month figures have grown up. My July is very good. August is also showing up. So that's that's our business as usual for us. We will we will make up whatever backlog is there in the q one. For the year, we are confident about achieving 5000% disbursement. For current quarter, yes, we are writing a piece at a target of doing thousand two hundred, two thousand two fifty crores of disbursements. That is what guidance. Nitesh, would you have any other question?

42:56 No. No. That's it from my side. Thank you. Thank you, Nitesh. We'll wait for a few moments until the question queue assembles. We have Abhijit here, with this question from Motilal as well. Abhijit, please go ahead. Yep. Thank you, sir. Just one question. I joined in a a bit late, so not sure if you already addressed this. If you have, let me know. I will look through the transcript. But a lot of housing finance company this quarter have moved to encashment basis of accounting when it comes to disbursements and annual growth. Have we done something similar this quarter or any plans to do that?

43:44 Sir, from last two, three quarters, it's still... Are moved to check handover date. So that is... As per our guidelines, we we we start booking the interest only from the date of check handover. And we are following up the same, and we are in line with the regulation on that. No. Which is correct, sir. But what I'm trying to understand here is the regulations, like you rightly said, are saying that start accruing interest income from the date of handover of check. But what we have seen of late in the last maybe one quarter to two quarters, most of the other housing housing finance companies have gone one step forward, and they have started booking interest incomes. They have started showing that loan as a disbursement as... And as part of their loan book only after the amount given to the customer gets in cashed.

44:41 Yes. We are always checking one key after the encashment into the... Not to pay. Just to pay issuing a check, we won't take it into the quote. So we have been doing this on the on the beginning. So, ma'am, just just to be... Just just for the benefit of everyone on the call, you are saying that we account for interest income as well as we show it as a disbursement or as part of the loan book only after the check gets encashed. Yes. Yes. Yes. Yes. Okay. That would be correct. That is that is that is our prac... That is our practice.

45:27 And since how long has this practice been there that account for interest income and account for that amount as disbursement only after the check gets in cash? For how long this practice has been there? Two, three, four quarters. For three, four quarters. Alright, sir. That that is all I have. Thank you so much for answering my question. Thank you so much,. Participants, if you wish to ask any more questions, please click on the raise hand icon on your participants tab. We'll wait until we have any questions in the queue. Requesting participants to please click on the Raizen icon.

46:30 It seems we don't have any more questions. I will now hand it over back to for his closing comments. Over to you, sir. Yeah. Thank you for all the participants for actively participating in this kind of call. We will make answer... I mean, post September results again. Thank you. Thank you so much. Ladies and gentlemen, on behalf of REPCOHOME Finance Limited, this concludes today's conference call. Thank Thank you all for joining us, and you can now click on the leave icon to exit the meeting. Thank you all for your participation.