Hi. First question, we kind of moved on to the finance business to around 17% of the ROE for this year and now with the merger, again your ROE will come down. So, what kind of ROE guidance would you give us for the next three years?
See Nischint right now, we are not making any ROE guidance. What we are focused on is that each one of the businesses is we continue to improve our operating performance. As we mentioned earlier also, Rakesh has been saying that the ROA that we have in the NBFC at 2.5% broadly right now, our endeavor is to expand it to about 3% over the next three years. So that's what we'll be focused on. ROE will be a resultant of the overall capital structure and I think that we will have to wait for how it will emerge.
I know. But if you really go back 3-4 years in time there was a very strong concerted effort to improve profitability, take the ROE to sort of 17-18% levels and we have actually achieved that. And now you know with this capital coming in probably we will probably take a couple of more years to get back to these levels. And that's where I think the question was.
So, Nischint it's very natural that when you augment your capital and there is an augmentation in capital base, in the interim, the ROE may look in the mid-teens, but eventually it will directionally move towards high teens as the leverage keeps on going up.
Just a second small question was essentially in the GS2 and GS3 in the consumer unsecured business we are seeing a fairly sharp rise on sequential and a year -on-year basis. So, any color or any commentary on this?
Nischint your question is on personal and consumer the Stage-2 and Stage-3 increase?
Yes. ABCL – Q4 FY24 Earnings Call Page 13/27
See if you look at that has gone from 2.2 % to 2.9% in GS-2 and 2.2% to 2.8%in GS-3. But that's primarily on the reduction in the book. So, if you see in Q3, our personal and consumer book was Rs. 19,600 crore and it came down to about Rs. 17,000 crore. So, that is a denominator effect, and we haven't seen any increase in delinquency in personal and consumer.
So, if I look at the numbers, your loan book in this segment is down 11% quarter -on-quarter, but your GS2 is up 17% quarter -on-quarter and GS3 is up 13% quarter -on-quarter. So, the point essentially is that, do you see these ratios going up when you're really looking at the static pools probably that you have access to?
So, it's primarily a denominator effect and as we had mentioned earlier that we looked at the small ticket unsecured loan and we calibrated below Rs.50,000 ticket size and that's what we had really and we continue to grow our personal loans through our branches, through our ecosystem and now the ABCD App which we have launched, we will continue to grow this.
So, is this like the bottom end or do you expect it to sort of run down a little bit more before the book starts growing and the ratio starts improving?
So, Rs. 50,000 and above, there is nothing which is left now. So, if you look at our BNPL book is less than 1%, say 0.7% of personal and consumer loans. So Rs.129-odd crores is left and that also by April it would have gone off. So, there is nothing, it's not there in the portfolio now, the small ticket less than Rs.50,000 loan.
And the final one on the life insurance side if I can see them and the margin compression that we've seen this year, is it purely because of the increase in share of ULIPs or would you also kind of say that payouts to distributors have gone up which is one of the things that some of the other peers in the industry have been talking about?
It has no bearing because of any payout to the distributor that has gone up. That's not the trend that we are seeing, largely on two factors, one is that ULIP for the year went to 24%, which obviously means for the last quarter it would have touched about 30%. So larger ULIP ABCL – Q4 FY24 Earnings Call Page 14/27 share in the last quarter and the fact that in Q4 the G -sec was lesser than where it is even standing today. Some impact of that on gross margins and product mix on account of ULIP is where the VNB is now at 20.2%.
Perfect. Thank You so much and all the best.
Thank You. We'll take our next question from the line of Avinash Singh from Emkay Global. Please go ahead.
Hi. The first question is on your acquired portfolio. If I see you have almost acquired like 4.5 thousand odd crores consisting of 1.5 lakh accounts over the last one year. If you can just help us understand about some sort of what kind of a loan from, what kind of lenders you have acquired this portfolio so that’s the question one? The second question would be if you were to look in the housing finance business I mean, of course the AUM is growing but you are still sort of investing in branch and people so that cost ratio also is right. Right now, of course the negative credit cost has kind of driven the ROA comparable to where it was last year. So, if you can provide clarity or color on how these cost-opex ratios are going to behave over FY'25?
We understood your second question well. If you can reframe your first one, it will be helpful.
So first one, I mean, if I look at our NBFC disclosures you have acquired nearly 4.5 thousand odd crores of loan in the last one year consisting of some 1.5 -1.6 lakh number of loan accounts. So just wanted to know what kind of product, customer you are acquiring in these sorts of loan and what kind of lender / originator from which you are acquiring?
Okay Thanks. Rakesh.
So, these are small ticket loan against property primarily that's the nature of the loans which we would have acquired. These would be seasoned , where we do 100% sampling and we cherry pick the portfolio. So that's how we really look at it and this can be done across different institutions. ABCL – Q4 FY24 Earnings Call Page 15/27
But the average ticket size if I look at 1.5 lakh loans acquired, the average ticket size, works out to be close to 3 odd lakhs and also if I look at the disclosure in terms of the security cover, it suggests less than 100%, that means there's reasonable size of unsecured also, that is where my question was that I mean if some mix of unsecured and secured then what kind of unsecured book you're acquiring?
So unsecured, if you look at, out of this, is a small portfolio of unsecured which is I can get back to you with the exact, but there's a small portfolio, Rs. 798 crores out of this is unsecured, remaining is secured.
Okay. And my question on housing finance opex?
So, I think the question that you asked was about the ROA and how we've managed the credit cost and how is it going to be like.
No operating costs despite performance.
Yeah, I will come to opex also. As I have observed, I think the growth trajectory is clearly back at ABHFL and last year (FY23) we grew by 14%, this year (FY24) we have grown by 33%. So, while that is clearly happening, you would have also seen that the NII for us versus 5.30% of last year, we have actually grown it to 5.39% this year, which is of course a combination of how we have been able to price our loan products, and also the other income that you know we are kind of capturing through what we are sourcing. So, the way I think we've been articulating earlier as well, I think the strategy for us has been to focus on opportunities across the spectrum. So, across the segments, prime, affordable, informal and CF, I think we are looking at maximizing the opportunity. And when we do that, I thi nk we are very conscious about a) working on our existing portfolio and therefore you would have seen that the credit quality has significantly improved in the last almost six quarters both sequentially as well as on a YoY basis. That gives us of course ro om as far as credit cost is concerned. So, the strategy for us really was to get the growth momentum back which is a double tick that we have kind of got. Got a very, very clear hold as far as the credit cost is concerned both on portfolio and also on orig ination and if you would know each time, we've been talking about what percentage of customers do we originate at 700 -plus in NTC and clearly that is significantly better as compared to the market. ABCL – Q4 FY24 Earnings Call Page 16/27 So, while we have established both the origination as well as portfolio quality that we are talking here, the idea is you know as the book grows further, of course, the fixed cost will get apportioned towards the larger book, we will get an operating leverage in times to come and of course then the ROA will stabilize further. So that's kind of the guidance. Of course, in the short term, it may slightly come down as we have seen in Q4. If you look at the ROA, it's at 1.76% in Q4 versus 1.92% in FY24. So, we are seeing some NIM compressions, but as the book grows with the right portfolio quality, I think there are lots of reasons for us to come to the conclusion and we're really, really focusing towards getting ROA back to the trajectory of 2 - 2.1% in the next 24-36 months.
Okay. So just one follow up on life insurance. So, if you can just help sort of a breakdown of your operating and economic variances which are also changing, and also, I mean your rate of unwinding at 9% plus is relatively higher to your peers. So, if you can shed some color on that?
So, 18.8% roughly is unwind, obviously our operating variance has been positive of about contributing 1.5% and it has been positive for the last three years consecutively. The remaining part is the net VNB contribution of about absolute 700 crores. So, 18.8% is RoEV which has roughly 9.5% of unwind profit, about 8% is from net VNB contribution and 1.5% is from the operating variance. The reason the unwind on the book is a little higher because we carry a reasonable book on non -PAR and if the non -PAR book for a portfolio was slightly higher, then obviously the rate of unwind in that you will see slightly abo ut 100 to 150 basis points higher than some of the peers. That's the rough break up in the ROEV of 18.8%.
Yes, and in operating variance, if you can sort of provide some breakup like how much is coming from cost, persistency and mortality, because it is reasonably a big number?
So, our mortality assumption is positive, but the bulk of the upside actually is coming from all our variances, which are better in terms of lower lapses, better persistency. So, bulk of the operating variance is coming from our assumptions, experience bei ng better than what we would have planned for, and mortality is not giving any negative thing in the operating variance.
Okay. Thanks. ABCL – Q4 FY24 Earnings Call Page 17/27
Thank You. We'll take our next question from the line of Manoj Bahety from Carnelian Asset Management. Please go ahead.
Hi Vishakha. First of all, congratulations on a good set of numbers and as well as good asset quality. So, I have two questions. First is i f I see like the last four -five quarters, the kind of acceleration which we have seen in our overall loan growth and especially a large portion of the loan growth is coming from retail, personal, SMEs as well as the unsecured portion. So just wanted to get some understanding, like with this phase of growth, obviously you need to introduce new risk controls, whether it may be technology-driven, whether it may be like some other measures of control. So, if you can help us understand what kind of additional risk controls at a corporate level you have introduced which will tackle your balance sheet, which will be like 3x of its size in the next few years?
So, if you look at the growth in fact and that's what I have mentioned it in my opening remark on the personal and consumer segment, especially the unsecured small ticket segment, we have really dialed down. And if you look at December'23, our book was Rs. 19,606 crore which we have brought it down, we tightened our underwriting, we tightened our scorecards and sourcing and we have brought it down to Rs. 17,434 crores. So, it's almost 11% decline QoQ. And if you look at, we were growing quite strongly in Q1, Q2 and the trajectory has moderated because of this dialing down of the small ticket unsecured credit. So, we are very mindful of the credit quality. We will continue to grow within our risk appetite and in terms of managing our portfolios through the cycle. So, tightening of underwriting, tightening of our scorecards also, the collections infrastructure and the capacity building which we have done in collections, so we have taken all the right calls in terms of building a very strong and robust underwriting process for our retail and MSME business.
Manoj, now of course at the platform level that is our approach. Clearly, we had said that return on capital is important, but return of capital is going to be the cornerstone of our strategy. So, a couple of things. One is controlling the origination as Rakesh said. So, we are very focused on to say t hat which class of asset we originate. So, if you see we on our own before even the whole thing started on the small ticket side unsecured loan, we had started bringing down that portfolio for us in the last f our quarters. We had also brought it out in our September call to say that most of these loans are less than 30 to 60 days and we would be able to wind down that portfolio. As Rakesh said, today that portfolio is virtually nil in our book. So, one is identifying the allocation of capital to which class of asset is very critical and taking those swift decisions. Second is actually controlling your underwriting models and we continuously look at our underwriting model, look at our experience and really try to fine tune them as we go forward. ABCL – Q4 FY24 Earnings Call Page 18/27 So that is the second thing that we keep doing. The third important thing is monitoring of the portfolio. So, we have a separate team, whether it is on the retail side or an SME side or on the corporate side who continuously monitors our portfolio to say if we need to intervene and take certain decisions. And the fourth, as Rakesh said, is now we have virtually in-housed our entire collection. We have something called pre -delinquency management. That is by using the data, digital, we try to identify the customers whom we believe will have the propensity to default and start actually allocating those customers even before the due date. So, we start our engagement with the customer almost 30 days before even the payments fall due. And of course, there are vari ous other initiatives that we have taken on the digital and analytics side to identify the customer. We also have i n case of many customers; we do the scrubs much more frequently. We look at the total liability that the customer has at their level. We look at what are the loans that they have, of us and on us. So, these kinds of measures that we have taken. I think will go a long way in managing our portfolio and I am very happy to say that it has already reflected in our asset quality, but I think these are the four steps that we will continue to follow as we go forward.
Great that is very insightful Vishakha and Rakesh. I have two more questions. The first one is a quick one for our health insurance. What is the path to profitability? Already I think we are at almost Rs. 3600-3700 crore kind of GWP. So, when can we expect this to start contributing on a bottom-line basis?
Yes, so a s I have mentioned earlier and even Vijay mentioned that we're looking at 100% CoR by FY26, the next 24 months. The fact that like in the last quarter of F Y23, we had a marginal loss, in the last quarter FY24 we had a profit of Rs. 88 crores, clearly showing that our unit economics are working very well, which should put us well on course for this guidance that I've just given.
So, in the next 24 months, we can expect this entity to start generating profits, right?
Yes.
Okay. And the last question is on our distribution strategy, especially personal loans for BNPL or SMEs. So earlier I think everybody in the system was aggressively using fintech partners. With RBI tightening norms on fintech partners, is there a significant cha nge in our strategy and how we are dealing with the situation, if you can help me some insights into this? ABCL – Q4 FY24 Earnings Call Page 19/27
So, our distribution for personal loans, if you look at, as I mentioned in my opening remarks, we are looking at our branches, the branch distribution which we have, the direct sales team which we have, the entire ecosystem platforms which we have created, now ABCD which has gone live, it will have the entire lo an journey end-to-end on this platform for personal loans and for business loans. So clearly, we are looking at in -house distribution for building our personal and consumer business. We will still leverage some ecosystems where we have comfort and where we h ave 100% ownership of the customers and 100% ownership of the processes, we will still look at those. But as we have mentioned clearly, post the DLG guidelines and all, we looked at all our partnerships and BNPL you can see the numbers that's come down significantly, it's almost negligible at this point in time. So, we don't have these small ticket sizes. So just to answer, we will look at our internal ecosystems, branches, ABCD app, Udyog Plus, all of these platforms on which we will really to source business.
Great. Thank you so much for taking my questions.
Thank You. We'll take our next question from the line of Anuj Singla from Bank of America. Please go ahead.
Thank You. Good evening, everyone. So, I think a couple of questions on the lending business first. So, I don't recall if I missed the growth target for NBFC and HFC side for the next year. Have you articulated any numbers there?
On the loan book growth?
Yes, AUM growth for FY25.
We have given a guidance that we will double our loan book in three years from March'23 to March'26.
Okay got it and Rakesh, the second question on the personal and consumer loan, obviously ABCL – Q4 FY24 Earnings Call Page 20/27 you have managed the book well on the small ticket size loans and these now constitute 17%. How should we look at the growth trajectory from here, should the proportion stabilize here in terms of the percentage of the AUM? And secondly, what does that imply for NIMs because this is obviously the hig her lending book and we also have seen some cost of funding pressure, so how should we see the NIM trajectory maybe for FY25?
So, we are quite positive on the loan book growth, and we will continue to focus on MSME and retail and consumer segment. Yes, the small ticket unsecured loans comes at a higher margin, so higher yield, so you have a better margin on that. But I think the credit cost also is associated in similar proportion. So, if we slowdown that and we will dial down on that business. The other business which we will onboard have similar kind of margins, not high unsecured margins or yield, but our B2B and MSME unsecured business which we are growing now and if you look at the B2B platform which we have built and we are really looking at growing our small business loans on that platform, that also comes at a very attractive rate and the credit cost also is quite well within control. So, we don't see any challenge on both growth and the margins. We should be able to manage both growth and margins.
Okay got it. Secondly, on the health side, so just one question. Y ou have guided for 100% combined ratio by FY26. Can you also give some more details, is there some kind of price hikes we are building in this guidance or this is more driven by gaining sale and operating leverage?
No, I mean our growth has been consistent; as I said we've had a growth of about 42% CAGR in the last three years, that growth will continue given the opportunity. Price hike is the subject of regular action that insurance companies take and like all other health insurance companies, if the medical inflation does demand, the claims ratios are going up and we need to reprice, which has always been in line with market. We will do that. So, it's not something unusual. All insurance companies do. In fact, our price hikes have been generally slightly below what you see in the industry, which means that we have managed our portfolio and the quality of it and the related loss ratios reasonably well. In fact, this year also our retail claims ratio has trended very well because of all the actions that we have taken.
Yes Mayank, the context here is that one of the largest S AHI companies has taken a 25% price hike in one of the major products. They're talking about more price hikes in the coming quarter. So, I thought that given that the industry price levels are going there, you might also be contemplating. So just to understand is that one of the key drivers towards moving that 100% combined ratio? ABCL – Q4 FY24 Earnings Call Page 21/27
No, I will not be able to comment on the other company. I can only say that we have managed our portfolio quality, business mix, and product mix reasonably well for us. In fact, our last price hikes have been in the range of 10% to 12%, which is actually well below the medical inflation that we've seen.
Okay got it. Thank You.
Thank You. We'll take our next question from the line of Bhaskar Basu from Jefferies. Please go ahead.
Yes thanks. Good evening. I have three questions. So firstly, just dwelling back on one of the earlier questions essentially around the portfolio acquired. This quarter, it seems you've acquired about Rs. 2,300 crores, works out to average ticket size of about Rs. 6.5 lakhs with an average tenure of about 12 years. So just wanted to understand and this seems to be almost 50% of the sequential growth if I assume this is all secured and coming from SME. So, if you could give a little more texture around these loans, what kind of yields do they generate because at the ABFL level there seems to be a yield compression on a sequential basis? So that is my question one.
Yes, go ahead.
Yes. Secondly, in the same context, what is the product mix or loan mix in the next three years, given that you're dialing down on the personal side? And third was just a housekeeping question on the write-off number for the quarter?
So, first of all, the buyout portfolio these are in Q4 all secured portfolio which is what we have acquired. And in terms of what yield it will differ. But it will be in the range of what we acquired. So, the customer yield will be 11% to 12% for these portfolios. Your second question was how do we see the product mix? We have guided for 75% of retail and SME product mix in the next two to three years. We continue to stay guided on that. We have dialed down our consumer and personal loan business primarily on the small ticket unsecured business, especially below Rs. 50,000 ticket size. We will continue to do business on the consumer ABCL – Q4 FY24 Earnings Call Page 22/27 side, especially personal loans, business loans and all. So, we don't see any change in our guidance from 75% of retail and SME business.
Okay and just the write-off number, please?
It's around Rs. 400 crores. It's in line with the earlier quarter, it's Rs. 411 crores.
Okay thanks. That’s all from my side.
Thank You. We'll take our next question from the line of Sameer Bhise from JM Financial. Please go ahead.
Hi. Thanks for the opportunity and congrats on the good quarter. I just wanted to make sense on the coverage levels at ABFL. How do you see it moving ahead? We've stabilized at around 50% level. So, some direction here would be helpful. And also, if you could share Stage -1 and Stage-2 coverage on an overall basis?
So, if you look at and w e have provided this segment wise provision cover which we have provided in our presentation. And if you look at personal and consumer, we have a provision cover of 83%, unsecured business is 35.3%, but this is we have to take into account that business loans and that also we have mentioned on a slide and where 43% of this book is covered under CGTSME, which is a guaranteed premium which we pay to SIDBI and 75% of the principal is guaranteed. So, if you exclude that then the provision will look quite good in the unsecured business as well. Secured business is 38.8 %. This is as per our ECL model and our data which has been there over the last 5 -6 years. On the corporate and mid - corporate, it's almost close to 50%. So, since our close to 70% of the portfolio is secured by real estate collateral and listed securities, we believe this is quite an adequate provision cover.
So fair to assume that 50% is a good threshold to have over the medium-term? ABCL – Q4 FY24 Earnings Call Page 23/27
Yes, it also depends on how things pan out, but at this point in time it looks quite adequate.
Okay. That’s helpful. That’s it from my side. Thank You.
Thank You. We'll take our next question from the line of Pranuj Shah from J.P. Morgan. Please go ahead.
Thank you for the presentation. So, three questions here. The first one is on construction finance. That book has grown very sharply quarter-on-quarter and year-over-year. So, could you give a sense of the average ticket size over here and what kind of vintage of the developers that you look at when you finance? And also, is there any difference in the customer profile between the NBFC construction finance and the housing finance book?
Yes, I think there will be a difference between the two entities. Construction finance in the NBFC is primarily to Category -A developer and this is primarily in Bangalore, Chennai, Mumbai, Pune. So that's where the segment is. See, this business you might see from a 18%, it might have gone to 20% above, but this is we sanctioned it throughout the year depending upon when the construction and when the pickup demand is , that the customer utilizes. So that's how it is. If you look at overall of our corporate book, this is about 20% and the average ticket size will be around Rs. 60-70 crores in this segment.
For us, Aditya Birla Housing finance portfolio contribution is about 11% of the total book and the ticket size is quite granular here. So, our ticket size on disbursement is about Rs. 24.5 crores and AUM it is Rs. 9 crores. So typically, developers who are doing projects, the cost of construction is about anywhere between Rs. 150 to 200 crores typically for whom the requirement of the CF will be about Rs. 25 to 30 crores are the average profiles that we look at. Of course it's very diversified. So, across all the major centers of the country, starting from Ahmedabad to Bombay, Pune, Bangalore, Hyderabad, Chennai, Delhi, I think we have presence in all these markets. And I think when I was talking about the digital platforms, I think one thing that we have realized is that of course, we have to make sure that monitoring in this portfolio has to be top of the line and therefore we have launched a platform which is FinCF which actually helps us to monitor the platform both on event -based and frequency - based triggers. So, I think that gives us the confidence to keep growing this book, of course with fully keeping in mind return on capital. ABCL – Q4 FY24 Earnings Call Page 24/27
For NBFC this portfolio is around 6% of our overall loan book.
Is there a vintage of developers that you also look at like they need to have minimum x number of years of development experience and then you sort of lend to them or there's no such criteria?
So, there are two things. One, we've kind of created a proprietary model which has both qualitative as well as quantitative aspects when we look at the developer, and we look at it from both the dimensions, one is the developer profile, which includes the vintage, which includes the number of square feet that they have and have already built in the market, we also look at type of projects that they have also undertaken, the quantum o f residential units that they have done, the experience in commercial versus residential that the experience that they have in a particular catchment. I think all of the things that we anyways look at and then we also look at the viability of individual projects. So, it's going to be underwriting, which is two dimensional. One is developer profile and second, it is to do with the project viability. And I think both those dimensions are considered and extensive interacti ons happen. And the basis of the model that we have created, we actually rate these developers internally and then we appropriately take calls on the developers.
And similar for NBFC, these developers are all A+, A category developers, primarily the top developers in these markets, which I have mentioned.
Thanks a lot for that. Second one was on the yields like what the average yields we are at, assuming the RBI guidelines are implemented as it is , as there is no relaxation over here. And if you pass it on 100% to the developers, what could be the rise in yields from there on if there is some sort of a calculation that's already done?
So, these are still in the draft guidelines and the RBI has asked for input from all the institutions. Since we are on Ind AS and also, we don't see any impact on our books.
But there would still be a capital requirement if I am not wrong? ABCL – Q4 FY24 Earnings Call Page 25/27
No, it's a provisioning.
No, it's a provisioning requirement which has to be taken over the next three years, that’s the recommended one.
It’s a provisioning requirement.
Okay I understood. And one last on the unsecured business loans, your disbursals have moderated a bit quarter-on-quarter and year-on-year is also 6%. So, is there a call that you're making at a company level just to stay away from unsecured loans in general be it business or personal?
No, we are not saying that. And again, I mentioned that if you look at personal and consumer portfolio was growing quite strongly and if you look at Q4 of not last year before that year was, we were growing at 21%, then we brought it down to 15%, then 9%, then 1% and last quarter was negative 11%. And the reason for that was because of the risk weights and the noise around small ticket unsecured loans because we had not seen any performance deterioration on our books, but still looking at the environment, we dialed down, and we tightened our sourcing on this book. But we still continue to be bullish on the unsecured business and we will continue to do that in a much more c ontrolled environment as I mentioned through our branches, through our digital platforms and through our ecosystem.
I was looking more from an unsecured business loan perspective. Consumer, I think you well explained it even earlier. Just on the unsecured business loans?
So unsecured business loan, we will continue to grow that business. If you look at its in Rs.10,000 odd crores of portfolio which we have in unsecured business . Out of that if you look at Rs. 2000-2500 crores is supply chain business, which is a very short term 60 -90 day loan sourced from the ABG ecosystem also. So remaining if you look at, the business loans which we do almost 80% odd of our business loans is backed by a credit guarantee provided by SIDBI. So, we pay a guaranteed premium for these loans. So, we are quite confident, and we have seen over the last 6 -7 years during COVID also we have seen the performance of this portfolio and we have managed it quite well. ABCL – Q4 FY24 Earnings Call Page 26/27 Looking at the way the formalization of economy is taking place and the way the GST collection is growing, we have also built a B2B platform Udyog Plus to really onboard small businesses which grow as the economy grows. So, we are quite confident and bullish on this segment.
Understood. Thank you so much for answering the question. That’s it from my side.
Thank You, we will take our next question from Kunal Shah from Carnelian Asset Management. Please go ahead.
No. My questions have been answered.
Thank you, ladies and gentlemen, due to time constraints, that was the last question for today. I would now like to hand the conference over to Ms. Vishakha Mulye for closing comments. Over to you.
Thank you, everybody for joining us today evening, and if any of you have any questions, please feel to reach out to any of us. Thank you.
On behalf of Aditya Birla Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
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By prepari ng this transcript, neither the Company nor its management undertakes any obligation to provide the recipient with access to any additional information or to update this transcript or any additional information or to correct any inaccuracies in any such information which may become apparent. This document is for informational purposes and private circulation only and does not constitute or form part of a prospectus, a statement in lieu of a prospectus, an offering circular, offering memorandum, an advertise ment, and should not be construed as an offer to sell or issue or the solicitation of an offer or an offer document to buy or acquire or sell securities of the Company or any of its subsidiaries or affiliates under the Companies Act, 2013, the Securities a nd Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended, or any applicable law in India or as an inducement to enter into investment activity. No part of this document should be considered as a recommendation that any investor should subscribe to or purchase securities of the Company or any of its subsidiaries or affiliates and should not form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. T his document is not financial, legal, tax, investment or other product advice. To the extent permitted by law, the Group and their respective directors, employees, advisers and representatives disclaim the liability (including without limitation any liabil ity arising from negligence or otherwise) for any loss or damage whatsoever, which may arise by placing reliance on anything contained in or omitted from or otherwise arising in connection with this transcript. The Company, its shareholders, representatives and advisors and their respective affiliates also reserves the right, without advance notice, to change the procedure or to terminate negotiations at any time prior to the entry into of any binding contract f or any potential transaction. This transcript contains statements of future expectations and other forward -looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognised by the use of words such as “expects,” “plans,” “will,” “estimates,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results, performances or events may differ from those in the forward -looking statements as a result of v arious factors, uncertainties and assumptions including but not limited to price fluctuations, actual demand, exchange rate fluctuations, competition, environmental risks, any change in legal, financial and regulatory frameworks, political risks and factor s beyond the Company’s control. Neither the Company, its affiliates, advisors, representatives, any of their respective affiliates or any such person's officers or employees guarantee that the assumptions underlying such forward -looking statements or manag ement estimates are free from errors nor does any of such persons accept any responsibility for the future accuracy of the forward -looking statements contained in this transcript or the actual occurrence of the forecasted developments. You are cautioned no t to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. This transcript also contains certain financial and operational information relating to the Group that is based on management estimates. These estimates are based on management's past experience and subjective judgment, and the manner in which such estimates are determined may vary from that used for the preparation and transcript of similar information provided by other companies engaged in the similar industry in India and globally. The Company does not assume any responsibility to amend, modify or revise any forward -looking statements, on the basis of any subsequent developments, information or events, or otherwise. These materials are not an offer for sale within the United States of any equity shares or any other security of the Company. Securities of the Company, including its equity shares, may not be offered or sold in the United States absent registration under U.S. securities laws or unless exempt from registration under such laws