Laxmi India Finance (NSE:LAXMIINDIA) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Laxmi India Finance Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Go India Advisors. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Deepak Bhat, Managing Director, LAXMIINDIA Finance Limited. Thank you, and over to you, sir. Good afternoon, everyone, and thank you for joining us for LAXMIINDIA Finance Limited Q1 FY 'twenty seven Earnings Call.

0:47 On behalf of entire management team, I would like to welcome our investors, analysts, lending partners and the stakeholders. Jointly... Joining me today are Mr. Gopal Krishan Sain, our Chief Finance Officer Mr. Piyush Somani, who heads our treasury function Mr. Kuldeep Singh, our Chief Business Officer and Mr. Sanjay Uja, who heads collection. I would like to begin to say that quarter one twenty twenty seven has been a strong start to the year of LAXMIINDIA Finance. The quarter reflects continued movements momentum across the business with healthy growth in our loan book and disbursements, improvement in margins and profitability, further strengthening two of our liability franchisee as well as capitalized balance sheet.

1:45 At the same time, we remain conscious that as we scale maintaining the quality of our portfolio and discipline our underwriting will remain the most important priority for us. Our asset under management stood at INR 17 and 21.7 crore as of Q1 twenty twenty seven, representing a growth of 28% year on year. Our own book increased by INR 31.7% to INR 1,626.9 crore. Disbursement during the quarter stood at INR $2.32 crore compared with INR 166 crore in Q1 FY 'twenty six.

2:33 Reflecting continued healthy business momentum, our MSME franchisee remained the core of our business with MSME AUM of approximately $13.95 crore at the end of the quarter. Our customer base also expanded to approx 43,946 customers, while our branch branches network increased to 194 branches across six states. The expansion of the network continues to be supported by our cluster based approach with a focus of building density in our existing market with selectively entering new geography.

3:21 We remain particularly focused on semi urban and rural market across Rajasthan, Madhya Pradesh, Gujarat, Chattisgarh, Uttar Pradesh and Maharashtra, where we continue to see meaningful opportunity to serve underserved MSME and self employed borrowers. The quality of growth is also reflected in our financial performance. Net interest income increased by 39% on year to year to INR 47.1 crore. Profit before tax increased by approximately 72%, INR 21.9 crore, while profit after tax increased by approx 70 to INR 16.4 crore.

4:12 Importantly, our ROA improved to 3.45% from 2.75% as compared to year to year. Our NIM expanded to 11.36% compared with 10.43% a year ago. The improvement has been achieved despite of broadly stable portfolio yield with the key driving being the continued improving in our funding cost. Our average cost of borrowing declined by 67 basis points year to year to 10.66%. This is an important area of progress for our company. Over the last several quarters, we have been steadily strengthening our lenders relationship, improving our borrowing mix and increasing our access to bank funding.

5:09 We believe the benefit of this strengthening liability franchisee will continue to support our margins and profitability as the business scale. Our network stands for INR 4 and 82.8 crore as on 06/30/2026. While our capital adequacy ratio remains stronger at 25.32 with Tier one capital adequacy at 24.82. Our debt to equity ratio stood at 3.1 times. And on net basis, after considering the liquidity position, net debt to equity is 2.57 times. We also maintained the liquidity approx INR 2 and 55.9 crore at the end of the quarter.

6:00 Our ALM position continue to remain comfortable with cumulative surplus across maturity buckets. On the borrowing side, the quality of our lender franchisee continued to improve. During quarter one, we have raised approx $2.96 crore of borrowing with banks accounting for more than 84% incremental borrowing. We have added new banks like ICICI at a very cheaper price, best price in fact I can say and during this quarter. The increasing participation of from banks together with our diversified lender base and improved credit rating from A minus to A is an important validation of the institute strengthening we have built over the last few years.

6:58 Let me now address asset quality, which remains one of our key priorities as we grow. Our gross NPA stood for 2.08 and net NPA stood for 0.93% as on 06/30/2026. Importantly, both metrics improved sequentially from March 2026 level. Stage two asset almost moderate during the quarter and at the same time, credit cost of the quarter was INR 3.69 crore or you can say 0.95% compared with 0.58% in Q1 FY 'twenty six.

7:46 The increase was predominantly attributed to our vehicle financing portfolio. We have started monitoring the segment closely with our core MSME and construction portfolio continues to show the more moderate credit cost profile. Our overall portfolio remains secured and underwriting framework continues to combine centralized credit assessment with local market knowledge, physical verification, collateral assessment and cash flow evaluation. Collection also remains highly branch led and field intensive with a strong focus on early identification of stress and proactive engagement with borrowers.

8:35 We believe this combination of secured lending, conservative underwriting and localized collection provide us with a strong foundation to manage portfolio quality as we scale. Our strategy for FY 'twenty seven remains unchanged. We intend to continue growth the business at the calibrated and profitable pace, while improving productivity from branch network that we have already built and meaningful part of our growth opportunity will come from the maturation of the branches opened over the last two years, particularly in a newer market such as Uttar Pradesh and Maharashtra, Along with increased density in our existing market, at the same time, we will continue to selectively add branches where we have attractive market opportunity and where our underwriting and collection capability can be replicated effectively.

9:44 We are not looking to grow simply for the sake of balance sheet expansion. Our objective is to build a scalable, high quality lending franchisee with sustainable return. Our investment in technology, credit infrastructure, collection and branch level operating capability are designed to support this objective. With the strong start of the year, we remain comfortable with the medium term framework that we have communicated earlier. We continue to target AUM growth approximately 30% to 35% annually. As our newer branch mature and operating level improves, we remain confident in our ability to deliver strong profitability growth.

10:39 We have earlier indicated PAT growth of approx 40% to 45% for the current financial year, while quarter one growth has been significantly ahead for this range. We believe this is prudent to maintain our existing guidance at this stage and assess the performance over the next few quarters before considering any revisions. Our focus remains on delivering growth while protecting asset quality, strengthening our liability, franchisee and improving returns over time. To summarize, quarter one twenty seven has been a strong quarter for LAXMIINDIA Finance.

11:28 We have delivered healthy growth, expanded margin, significant improved profitability, further strengthened our capital and liquid position and continue to deepen our banking relationship. At the same time, we remain watchful on asset quality, particularly within the vehicle financing portfolio, and we will continue to prioritize underwriting and collection discipline. We believe the combination of our branch led model, strong presence in underserved Tier two and Tier three market, priority secured prioritizing secured portfolio, improving funding franchisee and strengthening capital base provided us with a solid platform for next phase of growth.

12:19 With that, I would now request Gopal to take you through the financial performance in greater detail. Gopal, over to you. Thank you, sir, and good afternoon, everyone. I will take you through the key financials and balance sheet performance for Q1 financial year twenty seven. Net interest income increased by approximately 39% year on year basis to INR 47 crore. Operating expenses stood at INR 29.9 crore compared with INR 22.4 crore in corresponding quarter last year. The increase in operating expenses reflects the investment we continue to make in our branch network, employee base, technology and operating infrastructure as we build the platform for future growth.

13:10 Despite this investment, the strong growth in net interest income resulted in significant operating leverage with profit before tax increasing by approximately 72% to INR 21.9 crore. PAT for the quarter stood at INR 16.4 crore, representing growth of approximately 70% year on year basis. Our return on assets improved to 3.45% compared with 2.75% in Q1 financial year twenty twenty six. Our return on average network was 13.86%. The moderation in ROE should be viewed in the context of the significant strengthening of our equity base following the IPO and subsequent internal approvals.

13:56 Our portfolio remained broadly stable at 2.67%. At the same time, average cost of borrowing declined to 10.66% from 11.33% in Q1 financial year 'twenty six. As a result, earnings improved from 10.43% to 11.36%. We believe the improvement in our funding profile is an important structural driver of our profitability. Our asset quality gross income stood at 2.08% compared with 2.13% in March 26. Net NPS stood at 0.93% compared with 1.09% at the end of March. The Stage two asset reduced from INR 46.6 crore to INR 44 crore during the quarter, while Stage three stood at 33.5 crore. Refuge cost was INR 3.69 crore or 0.95% of average gross loan Our PCR stood at 55.22%.

14:59 Our liquidity position remained comfortable at approximately rupees 255 crore. Our annum continues to show a cumulative surplus across the maturity bucket with a cumulative surplus of approximately INR $4.40 crore at the five year bucket. We believe the combination of strong capital, liquidity and well matched ALM profile provide us with adequate financial flexibility to support the growth plan for financial twenty seven. With this, I will hand over to mister Piyush to discuss our borrowing profile and funding plan. Thank you, Gupal, and good afternoon to everyone. I will briefly take you through our liability profile and the progress we have made on the funding side.

15:46 Our average cost of borrowing for q one f I twenty seven declined to ten percent sixty six bps compared with 11%, 33 bps in Q1 FY 'twenty six. The decline in borrowing costs has been a key contributor to the improvement in our NIM during the quarter. Our focus continue to be progressively increase the share of... Sorry. Our focus continue to be on progressively increasing the share of the banking funding and diversification of our liability franchisee. As of June 30, banks accounted for approximately 70% of our overall borrowing mix, while bank contribute more than 40... 84% of the incremental borrowing during q one FY twenty seven.

16:33 During the quarter, we have raised approximately $2.96 crore across nine facilities. We have added ICICI Bank as a new lending partner during the quarter and continue to deepen our relationship with existing banking partners. Our q one borrowing includes facilities from IDFC First Bank, Studio Small Finance Bank, Bajaj Finance, DCB Bank, ICIC Bank, Kendra Bank, KBB Bank, and Union Bank of India. The majority of these facilities were raised at rates around 10% to ten percent forty four bps, reflecting the continued improvement in across access to competitive funding.

17:19 We also continue to actively negotiate rate reduction on our existing facility as repayment track record and lender relationship mature. Going forward, our focus on the liability side remain consolidation of our existing lender mix towards banks, excluding new source of funding, such as external commercial borrowing and trade guarantee back to the structure, continued use of direct assignment, and increasing our focus on PSL qualifying lending such as MSMA ticket size below 20 lakhs and weaker loans. We continue to believe there is another 20 to 25 basis point of reduction available in our cost of borrowing over the coming quarters, assuming global rate conditions remain stable, which currently are giving the RDI neutral stance.

18:20 We believe the combination of our pay rated profile, strong capitalization, diversified lender base, and consistent repayment track record position us well to support our targeted balance sheet growth. With that, I will hand over to mister Kundeep for the business and operating update. Thank you, Piyush, and good afternoon, everyone. Our operating model continues to be branch led with sourcing, underwriting, collection, all happening at the branch level, supported by our central credit and technology teams. As on 06/30/2026, we operate at one eighty four branches across six states. Additional 25 branches over the last year, Uttar Pradesh, where we added 10 branches this year, and Maharashtra, where we added six branches, are our two newest geographies, and both are progressing as per our expectations.

19:20 Customer base grew to around 43,946 from 37,122 a year ago. This is 3737% of our borrowers continues to be first time borrowers in line with our positioning of serving MSME, small traders, transporters, self employed customers that are largely underserved by banks and fintechs. On product mix, MSME remains our largest vertical at around INR $13.95 crores of AUM, followed by vehicle finance at around INR 131 crores AUM, followed by construction and loan against property at around INR 90 crores, wholesale lending at around INR 58 crores, personal loans at around INR 49 crores.

20:13 Our overall AUM has grown at CAGR of 32.68% since financial year 2023. On technology side, our sourcing, underwriting, servicing and collection process are now largely digitalized through our LOS, LMS platforms, CKYC integration, RCU based field investigation and digital collection through eNedge, auto dialer and payment aggregators. The only manual step remains in our process is physical signing of loan agreements, which we expected to move to eSign shortly. On the vehicle finance credit cost that Gopal mentioned, from our operations standpoint, this is specific to that segment and not a broader underwriting issue. We have tightened acceptance criteria and increased field follow ups frequency in this book specifically, while continuing to grow our other secured products as planned.

21:16 Going forward, our focus remains on improving productivity in our newer branches as they mature, continuing to deepen density in our existing states and maintain underwriting discipline as competitive intensity in MSME lending increases. With this, I would request the moderator to open the floor for questions and answers. Thank you. Thank you very much, sir. We will now begin the question and answer session. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question.

22:02 Ladies and gentlemen, we'll wait for a moment while the question queue is on. Yes, sir. Auditors? Yes, sir. You are audible. First question is from the line of Dipesh J. Sancheti from Mania Finance. Please go ahead. Hi. Am I audible? Yes. Please proceed. Okay. Yeah. The branch network has expanded from one fifty nine to one eighty four over the past year. How are the new branches performing versus a matured network? And what is the expected gestation period to... For for them to reach steady state gestation? So... Hi. This is Koli. The branches which we have opened last year, this... The the number was 25 branches.

22:54 Out of 25 branches, one is already in the breakeven space. And if we talk about the majority, this is linked with the breakeven only. So the branch expenses and the branch income, if we if we calculate both, it comes around seven to nine months to take the breakeven stage, where the AUM of our branch at around 1.522 CR. See, we have actually categorized our branches into three categories, tier one, tier two, tier three. So tier one is having a broader resources where five to six ROs are there, the branch manager, DO, and other stuff. Then the tier two where the five five to six ROs, then branch manager, then DO, and tier three is having two to five ROs and branch manager and DO. So there are three category...

23:43 Categorization which which are based on the population and the potential of that particular market. So depending on the category, it range from 1.5 crores to 2 crores when it achieves to the breakeven. I'm audible? Yes, sir. You are audible. Mister? Mr. Sanjay, can you hear us? I I can hear Yes. Hello? Yes. Yes. Please proceed. Saying that you are targeting at 30% to 35% AUM growth alongside 3.5 to 3.75% ROA and 13.5 to 14% ROE. Over the next three to five years, what needs to change for LAXMIINDIA to trans... To transition from a regional NBFC to into a larger pan India m s...

24:41 MSME franchise? And what do you see as the biggest constraint in this ambition? So we started with the Rajasthan way back in 1990, and then after when it it comes to the NBFC in two thousand two thousand ten. So after Rajasthan, we opened branches in Gujarat, then after in MP in thirty third, then after last year... Last to last year, we opened UP, and last year, we opened Maharashtra. So we are continuously growing in terms of the branches as well as in terms of the new territory. So this year, we will probably move into a new state as well as growing into the existing states. So by this, we'll grow up every every year, we'll grow up in new state, one or two new states, so that really it will move to the Pan India presence.

25:27 But what what is the area for the new branches for it to, I mean, self sustain or get into profitability? See, the profitability, I explained already. It takes around seven to nine months to to come over the breakeven. So this is the tentative guidelines. Some of the branches even profitable in... Within within five to six months and some takes nine to nine to twelve months also. But but the average average breakeven achieved in seven to nine months. No. But what what is the... I mean, what is the loan given amount at which it will breakeven?

26:17 Yeah. So that is what 1.522 crores. Once the AUM is built off a branch, then the branch comes on the... Start coming onto the profitability. Okay. And is the management really hell... I mean, happy with the kind of ROA we are doing? Because I think for for a smaller bank or a smaller, you know, NBFC like us, this is just too smaller number of ROA. ROE is our... Is almost 3.45 right now. And I believe if you compare with the third company, so we are very stable with it. And we are improving it. And as we scale... As we are scaling also, so it takes time to to build up. But, yes, if you want to see the graph, it is on improving side.

27:06 So we are we are targeting to 3.5 to 3.75. So I believe by end of the year, we will achieve that target. Next question is from the line of Vinit Sharma from Param Capital. Just wanted to understand a little bit more on the group strategy, both on the product and market side. So firstly, on the product side, would it continue to be... Would the share of MSME increase going forward, or would we be scaling the other products as well?

27:54 And on the market side, we saw some expansion in UP, MP, Maharashtra happening in this quarter. So how would the overall geographical distribution evolve as the EM scales up? If you could share some light on both these aspects. Thank you. So this year, we are planning to expand into 30 to 35 branches across the existing states. And in part one, we have already added 10 branches. And as far as the product side, definitely, the MSF will be the focused product. And simultaneously, we are looking for the other other products also. So we continuously doing the research and analysis for the new product edition. So recently, we have added a prime MSM product, which ranges from 25 to 50 lakhs with some improved credit guidelines with the the the asking of the documents are more into this this segment.

28:52 And continuously, we are also searching for new products. And going forward in future, we are... We probably will add some new products also. So with adding to this, our main focus will be on a secured s... SME, MSME lending. So... And to customers because... And to be our level since 2000, we have seen that secured business has given a best result in this in this... In any type of market. So we have a same strategy that our main core product will be and... Will be the same secured SME side and with the... Improve... Increasing the network across Bharat. So we have a presence in six stage six stage. So now still there are many states and union territory which is which is untouched.

29:47 So we have a plan to open those territory also and to open more branches over there in tier two, tier three cities of the state and giving loans to such a self employed customer over there and so that they can also be a part of a growth of Bharat. Thank you, sir. That's helpful. Just one follow-up on that. Going forward, say, in a year or two, what would be the proportion of the top state in terms of the overall year? I'm trying to understand this a little bit more from the diversification perspective. If you could shed some light on that. See, today, out of 194 branches, so the main mother state is Rajasthan.

30:35 So percentage of Rajasthan will be a little bit higher, but slowly gradually, the other states like Madhya Pradesh, Gujarat, their percentage of the... Is also increasing. So I believe in coming three to four years, Rajasthan will be major, yes, of course. But yes, other states where we have a good presence, we have open branches, so they will be also contributing handsome percentage in total AUM. So our if you want to see, we are very conscious on diversification also. So we are having that presence that presence in mind that we want to diversify our portfolio state wise also. So we are working on it. And coming years, we can see the changes in a percent holding of the states.

31:25 Understood, sir. Thank you so much. Thank you. Next question is from the line of Mikael Bartlewala from Laxmi Capital. Please go ahead. Hi. Am I audible? Yes. Please proceed. Yeah. So credit costs have gone up almost 1% in this quarter. What are the reasons behind this? Is this best coming from newer geographies, newer vintages? Yeah. So what is... So credit cost has basically increased in a Wheels portfolio. So we have a Wheels portfolio. So a little bit stress has come from there.

32:10 Otherwise, the main product, what we have is SME, secured SME and all. So there, the stress is... We can't see the stress. But over to, Kopal, if you can add some more points, please. Thank you, sir. Main reason to increase in credit cost in quarter one related to... We have increased 10 extra closing on UpMoney via transaction, for which we have already guided in March 26 as well as in March March... December 25. Till date, we have offered 70% of provisioning in our payment. Okay. This is a case based study, and this study is considered current stage of case, future accepted collection due to enforcement of activity. And if he... It seems the collection rights by the help of the court, that time, historical collection experience of the organization, most likely settlement.

33:05 So till date, management believe 70% of ECM broadening is more appropriate for quarter one. Subsequently, on each reporting date, we will observe further improvement of the case and act accordingly. So main reason, up money, despite of this core business of company, it remains stronger. Thank you. Okay. Thank you. Thank you. Next question is from the line of from Arisa India. Please go ahead. Hello,. Yes. Please go ahead. Yeah. Good afternoon, sir, and thanks for the opportunity and congratulation on good set of numbers. Few of my questions are already been answered.

33:53 I I have only one question left. So from the expanding branches or the expanding states, which which state or which geography show the highest number of, you know, guidance or revenue growth? So our main 90 odd branches we have in Rajasthan being Mother State. So, yes, of course, the major portfolio consists of Rajasthan. So... And because of the... You can say that the major... Because of the major portfolio, the revenue income is also generated from Rajasthan majorly. But other states, as I told before, that other states are also improving. They are also giving good support in disbursement.

34:39 So they will also be having a good percentage in future. So they will be also contributing the good numbers in fact in the coming years. Okay. That's it from my side. Thank you very much. Thank you. Before we move to the next question. Question is from the line of Shivam Rathod from MB Investments. Please go ahead. Hello? Am I audible? Yes. Please go ahead. Yes, sir. So for net worth increasing to $4.83 goron, while CRA are more than from 26 to 25 at the current growth trajectory.

35:30 How much balance sheet capacity do you have before incremental equity capital become necessary? So basically, our leverage stands... Net leverage stands for 2.4328, and we have a we have a handsome liquidity also with us in a quarter end that is $2.55 per road. So you're to further increase increase in AUM, of course, this is a capital oriented business. So we have to raise the capital. So we have a plan to raise capital in the next financial year. We will start... Next financial year, maybe we will start the process and all.

36:16 And we have a plan to raise further capital by around $3,300 odd crores. And by that time, I believe our leverage, we can easily extend to our leverage to 3.5 to 4%. And so so that we can have a good r o... ROE also by that time. And... But... By that time, I believe we will be we will be required. And still, Piyush, if you want to add anything to it, please. Yeah. Thanks, sir. So, basically, the group trajectory, Deepak, sir, has already addressed that. The need of the capital is always dependent upon the... Once we deliver our balance sheet, the capital that we are having.

37:02 So, technically, we will be thinking of once the leverage reaches to the level what we have had before going for an IPO, that is around four, four and a half from that. The time will be reaching in, we are seeing that one year, one point five year down the line from right now. We will be starting the exercises for the fund raising. So that the return on equity will be a factor of debt to equity in the ROTA We will translate it into the maximize return on equity that we will be getting so far. Once we reach that stage, definitely, we will be having order capital of $3,350 crores that we are planning soon. I hope... Is it is this fine? Hello? Any any questions?

37:54 Hello? Yes. Sir, my next question is that what is your growth guidance for FY twenty twenty seven and FY twenty twenty eight? And what are the margin guidance? Basically, are going on a year basis that is around 30% to 35%. We will be maintaining this pace of growth going forward as well. The margin depends upon the cost of borrowing and other factors as well, the yield that we are we are giving to the borrow... To the... Our borrowers. So in order to address the businesses, we need to squeeze our margin going forward basis, but we need to maintain in the pace of the profitability that we are seeing so. Once the cost of borrowing is inclined... Declining phase, we will definitely giving certain certain pass on to the borrowers, and definitely, we will maintaining the space of margin that we are having in order to address that business going forward as well.

39:09 Mr. Shivam, does that answer your question? Yes, sir. Next question is from the line of from BD Electrocom. Hello? Yes, you are audible. Please proceed. Yes, yes. My first question is regarding the alumina impact and the global uncertainties. Are we facing any issues in our portfolio? Or do we expect it to further impact in our Q2? So basically, the global score and all this is not much affected to us because our customer base belongs to tier two, tier three cities of a state where they don't have any like transactions between mothering country and transactions are there. So they don't have. But yes, the crude price increase especially impact everyone and to our customers also.

40:18 So that is little bit we can see the incrementing cost to our borrowers. And otherwise, if you're going to see the other things are not basically any impact on this. And coming quarters also, we see that the collection efficiency will be well maintained. And fact, we will try to improve it much better be able to do it in the coming quarters. Okay. And like considering the global uncertainties, so are we aggressively expanding our AUM or we are just are we just conscious regarding our AUM? So, yes, of course, as as I told in my speech also, so our main motive is not to increase the balance sheet size.

41:10 Have main motive is to worry also after disbursement. So we are taking... We are... We have a risk based disbursement and all. So wherever the stress we see in the business area or any any... Anywhere, so we take calls, we stop funding or reduce the LTV, and we keep on discussing on on this risk factors across points. So on the risk factor basis, we are taking calls on numbers, a cheap... On a disbursement and on a customer base and all. Okay. And just final question, what's our net slippage in this quarter? Slippage?

41:57 3.26, stretch slippage. Three point? Two six crore, which consists of Okay. Hello? Yeah. Okay. Thank you. Thank you very much. Thank you. Participants, to ask a question, you may press star and one. Next question is from the line of from RK Consultants. Please go ahead. Hi. Good afternoon, team. Thank you for giving me the opportunity to ask questions. Firstly, many congratulations on great set of numbers. And apologies, actually, I joined a bit late, so my questions might be a bit repetitive.

42:43 So my first question is that cost of borrowing declined by about 67 bps, if I'm not wrong, to roughly 10.66%, and spreads expanded to roughly 11%. So how much further headroom do you see for funding costs to decline? And what what is a sustainable NIM range for the business? If you could please let me know. Yeah. Hi,. This is. I'm heading the digital vertical. So the cost of is, as of now, is the... You can see it since last two, three years. We are all... Always on a declining phase.

43:31 And the best part is that the rating has been upgraded from e minus to a. And we have translated into slightly reduction in the cost of borrowing this quarter as well. But we've seen the last twelve months of incremental borrowing is to to 10.48 around as of now. Blendedly, it's 10.66%. I mean to say that another 20 to 25 bps that I am seeing so will be further reduced in this year going forward basis depending upon if in case there is a global scenarios is intact and there is no RBI hike in there. So we will be further reducing our cost of 100.25 to... Point two zero to point two five bps.

44:17 That's one. Secondly, translating to the business, I mean to say that giving the relaxation to the borrowers depends upon how the trade and asset qualities are there going forward basis. Once everything is intact, it's depending upon, I can say, the management call and the board call as well. We will we will be passing on to the borrowers as well. Okay. Okay. And so my second question is that operating expenses grew by roughly 34% y o y with employee cost of 36% versus 51% growth in total income. So as the branch network matures, how much operating leverage do you guys see ahead, and where could the cost to income ratio settle?

45:16 So, basically, see, ma'am, since we are in the growing phase, actually, so in the growing phase always, there is a OpEx will be slightly higher in comparison to the larger piece of India fees. But you can see since last twelve or eighteen months back, we are reducing our overall, I can say, that cost in terms of bill. But I can say since we are stepping into the new geographies, so OpEx in respect of opening the branches will be slightly, I can say, high in certain areas. So eventually, subsequent benefits will be fall on in the subsequent months only. That becomes part and parcel of the business. So cost to income ratio is below 50% as of now, but I am seeing so the healthy cost of income ratio that we address or we internally believe that it will be around 44% or 42% in between of that. We are trying harder, but still it becomes more challenging during the growing phase as well.

46:23 Okay. Okay. And my last question is that disbursements grew roughly 40% Y o Y to INR $2.32 crores ahead of 28% AUM growth. So actually, how should we read this gap basically? And does the current disbursement run rate give you confidence that AUM growth can accelerate from here? Over to Kundeepji. Yes. That current trend rate of disbursement giving us the confidence to the AUM growth also. As far as the growth and the and the disbursements are concerned, growth depends on the disbursement as well as the repayment and the closures of the loan. So that is how you can view the difference of it.

47:25 Okay. Okay. Thank you. Thank you so much. So that's all from my side. Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for the closing comments. So thank you everyone for your questions and for your continued interest in LAXMIINDIA Finance. To conclude, quarter one twenty seven FY twenty twenty seven has been a strong quarter for us with healthy growth across our businesses, improving strong profitability and continuous strengthening of our capital and funding profile. At the same time, we recognize that sustainable growth in lending requires constant attention to asset quality. We will therefore remain disciplined in our approach to underwriting collection, branch expansion and liability management.

48:25 Our objective remains very clear to build LAXMIINDIA PANAS into a scalable, well capitalized and sustainable lending franchisee serving India underserved MSME and retail borrowers. We thank all our investors, lenders, partners, customers and employees for their continuous confidence and support. We're looking forward to interact with you again in the next quarter. Thank you. Thank you very much, sir. On behalf of Go India Advisors, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.