So, my first question is that after a long time, we are doing some capex in the steel division in the pellet plant. So, are you seeing some changes , like what has prompted us to do that because we were holding the capex in this sector for a long time because it is deeply cyclical, some comments here?
So, the supply of iron ore in catchment areas will be good, so we'll get a chance to process them, right? That is the idea...
Thank you for taking my question. Sir my question is again on this SKS Power that -- now it's at least 3 months that we have the power plant in our hand. So what is the peak PLF that we can reach in the power plant now that you will have some more access to the power plant and how they work? So that is question number one. Question number two is, sir, you said the blended realization right now is around INR5 a unit. So what would be the EBITDA or PBT per unit that we can make? I'm not looking at an exact number, but just a range depending on own coal mine or coal which we are using currently from Coal India. What is the potential here? So these are the two questions, sir.
Yes, so PLF can be 85%, you are saying or even more?
Sir, I had one question. See, the macros are very uncertain and we may not want to guide, that's perfectly fine. Sir, but just wanted to know that in all the products that we have, basically saw pipes, seamless pipes, ductile iron, stainless steel and HDPE, do you see any overcapacity in the system? Like if the demand bounces back say water in the next 12 months and oil and gas after, say, another 6, 9 months, will we again go back to the old levels of profitability? Or is the capacity in the system high that we may need a higher level of demand to go there? If you can just segment-wise explain, how do you see the overcapacity or in each of these segments where we operate?
Got it. Got it. And one data point is how much sales did we lose because of the Middle East war, like not getting ships, not delivering products? How much would -- we did like 13.76 lakh tons of volume this year. Like how much would we have lost -- just in this quarter, how much would you have lost in terms of crores of rupees like what would be the revenue loss?
Vishal, first question is that, see, the third quarter, markets were weak and we had a lot of new opex coming in on wealth and even the capital markets division. So would it be safe to say that we have probably reached a trough in terms of profitability in these two divisions? And you know as markets recover, our businesses recover, the profits may grow actually faster than the revenue. If you can just highlight on these two divisions?
Perfect. Second question is on the Private Credit division. The income line item has actually started moving up. It's positive after a long time. Just wanted to hear your thoughts on when does this loan book also start moving up. Our focus loan book is still around INR4,200 crores. At what stage does this also start moving up?
Yes. Firstly, congratulations on this capital market and advisory d ivision, you've done strongly well and good to see the pipeline also growing. And secondly, even this interim dividend is a very welcome change. Now I have three questions. So first question, Vishal, is on the Wealth Management side. Like how do we track t he Wealth Management business going ahead in the sense, have we made most of the opex, like most of the opex flowing through the P&L or we have more opex to come? And then can we see this recurring AUM growing at a much faster clip than what it was in the past? And then 1 more thing is that our profits in this entire division is say INR80 crores to INR100 crores, which is much below the potential of this business, right? So when can this start scaling up? Like will it be FY '27, '28? Any thoughts here? That's my first question?
All right. Chirag, so just on this recurring AUM a bit like if you can just hi ghlight us like what are the plans in terms of launching, say, new AIF or the private equity -based funds? Or how does this recurring AUM grow? Like we have to do certain things to make it grow. So if you can just highlight that strategy?
Firstly, congratulations to the team. I think this quarter; a lot of things have started moving in the right direction together. So, I'll try to just ask one by one because there's too much to ask. So, the first question is, especially on this wealth management team that despite such strong addition in the sales and the relationship manager teams, I'm sure the opex would have gone up a lot. But even then, our profits have shown significant jump. So just wanted some color on what have we planned for these new hiring that we have done? And as investors, do we start saying that, okay, this quarter was the base and we'll see continuous improvements from here in terms of the recurring AUM and the profits both?
Okay. Just a follow-up on this. So, you mean the cost still will get loaded up over the next 2 or 3 quarters and then maybe the productivity comes a little later. Is that correct?
Hi, team. Congratulations on a good set of numbers. So , Vishal, the first question is, there is a bit of positive surprise in the Corporate Advisory business because this was the worst quarter for the stock markets, you know, this January to March quarter. And we have perhaps done like the best profits in the last four quarters. So, I am assuming this entire surprise would have come from the M&A and transaction advisory business. So, if any color you can give on what did we do in the quarter and like how does this part of the business behave in terms of growth over the next two, three years? That's my first question.
All right. Thank you for the detailed answer. Vishal, the second question is on this entire pivot which we did from last June when we announced moving to this asset light model. So, now the first leg of that pivot was the balance sheet running down and consolidating our stakes in Credit Solutions and ARC. So, I think that has happened pretty well. And now probably a lot of money has come back. So , we are sitting with a good amount of cash. More cash will come over the next 18 months. So, if you can give more color on how we will use this in the private syndication business, number one. And number two is, we have given good dividend this time, but as I can see from the balance sheet, there is still scope for doing a lot more on the dividend part as well. So, any thoughts here would be appreciated.
My first question is because we've started reporting two formats, one, is the focus business and one is a regular, old format. I just wanted to check that the investment banking revenue, it looks like we have declined Y -o-Y. Is it largely because of our lo an books running down, especially on the capital market financing, FI financing? Is that impact there? And if you can just say that you said that in QIP, we have been the number 1 bank. But, like, did we lose out on some IPOs or some deals because we had some regulatory action or restrictions which happened in March last year? If you can just quantify in terms of market share and where have we been? And was there any handicap because of that? And like do we do better in the coming years? That's my first question?
My second question is now on this mortgage finance or the JM Credit Solutions, NBFC, our NPAs have been steady at that INR650 crores to INR700 crores kind of a range. But we have been making provisions almost at INR80 crores to INR90 crores a quarter run rate for the last 6 quarters, and our PCR ha s gone up to 90%, 95%. So, Vishal, if you can just give some colour, like are we preparing for some write -offs here or if we think that some assets may not reach resolution.
Good to see the performance in Investment Banking and the AWS division. So, congrats on that. My question is on the loan book rundown. So, we have probably run down almost INR2,500 crores this quarter if I look at the consolidated loan book. If you can just help us like did we sell down? Was it a natural rundown? And did this accelerated rundown lead to certain additional provisions that we took in the Credit Solutions. Any colour on what's happening there? And what in next two quarters look like in this particular piece, that would be great.
All right. Yes, that's good colour. And on these provision s on SRs that we had to make on the ARC. Do we think that for the time being we are done or we have to like assess, reassess every quarter and make those provisions?
Vishal, one question to you. I just seeing that we have always operated with very good capital adequacy right from, say, 2014 when we started this NBFC business and now once we shut this down or once we run this down, we'll be sitting with even more capital. So just any thoughts. I heard your last call where we said we will be doing AIFs and private credit. But still the quantum of capital that is going to be released is going to be quite huge. And any thoughts on will we accelerate more on the investment banking, institutional equities, mutual fund , wealth those businesses? That's my first question.
One last question, Vishal, I had. I saw the slide number 5, 6, 7, a good summary of how the next 2 years rundown will happen. Are all our customers -- everybody is aligned to the fact that this rundown will happen, and you don't expect any knee jerks in this rundown?
The first question is that in the gold loan space, we have seen good growth Q-o-Q. But I see that our yields have dropped from, say, 22% to, say, 20.5%. So is this like a conscious strategy? Or is it because of competition? Or if you can just give some idea on what's happened here?
Got it. And just like we are at 20.5%, maybe 200 bps more versus competition, we are higher. So you're saying that we'll eventually reach that 18%, 19%, which the general market, right?
My first question is this 1,800 movies a year, this n umber has been probably there for the last 10 years. But has the number of films who can do good at box office, like that number, has it stabilized? Like it's been on a downtrend, but has it stabilized? So that's question number one. And question number 2 is, sir, if you can give some idea on how this Bollywood content creators are thinking? Because see, how much ever we may say it does not affect this Bollywood boycott thing is probably big. And we saw this during the war period also that there are so many Bollywood actors who are either -- like people do point out their Pro Pakistan behavior or things like that. So is that realization finally dawning upon Bollywood that they'll have to give up their old ways, probably figure out new things? Any comment you can make on this part?
Okay. Okay. That's very clear. And my last and second question is, sir, on the cost side, we have done quite well last 3 years. What line item of the cost do we still have some levers like will it be the rent, trends, or will it be the CAM or what line items still has some levers left for us on the cost side?
Sir, I was invested in tracking your company in the last decade. At that point of time, we used to have working capital as a percentage of sales would be around 30% - 35%. We were more or less a debt-free company, maybe INR 200 crores, IN R 300 crores of debt. I did not track it for the last 3 - 4 years, but I have recently restarted it. So sir, just wanted to know that what has led to this situation, where working capital has gone up to 45% of our revenue consistently for the last 4 years, plus we have reached a borrowing figure of close to INR 1,800 crores, INR 1,900 crores. Is it just the coffee price cycle? Or is it that in the B2B coffee segment, we have become 7% - 8 % of the entire world market, and now we are finding it difficult to maintain those economics. Sir, any highlight on this would be great.
My second question then would be that if the coffee prices remain stable for 1 or 2 years, maybe our working capital naturally comes down because the markets will be more accepting of these slightly shorter payment cycles. Is that a correct assumption?
Yeah. Hi, sir. Sir one question I had that even in South India, which is continued as a matured market for gold, are your so much drop on growth, all the small, small banks, cooperative banks. So this somehow this entire gold loan industry is seeing very, very vibrant growth. Any reason you can point out for this. The gold price is on even, but anything else you can tell us?
Right. Very good that is good to hear. Sir, but in that case, shouldn't you revise our guidance, I know you just said that after H1 you will do, but you start the year with 15% guidance. This year, we started the quarter with 15% growth in just one quarter. So maybe is it time or you just to be cautious because maybe the competition will bounce back again and whatever.
Congratulations on this strong growth, especially on the gold loan side. Sir, question is that we are seeing two things. One is gold prices strengthening by the month, by the quarter. And on the other hand, this whole cash disbursement and regulatory scrutiny on the sector has slightly gone up. So in that interplay of these two things, how do you see the growth panning out in FY'25?
Sir, gold help you more here. You have to -- gold will help you so much this year, the gold price.
Sir, does that affect our...
Am I audible?
So my question is, sir, the last time in the call, you said that the improved p rofitability that we have seen over the last 4, 5 quarters is not because of abnormal profits on e -auction, but it is because of efficiency in the whole Coal India ecosystem. Sir, can you just elaborate more that is this efficiency just coming out of the l ower employee cost? Or is our mining operation getting more and more efficient? And how much more can we get out of just this efficiency part? That's my question one, sir.
Okay. Okay, sir. Sir, and the second question was that if we do reach our target of 1,000 million by -- in the next two, three years, do you see that there will be enough demand for so much coal in India itself? Or we'll also have to look for more routes like export or something?