Thank you. We will now begin the question-and-answer session. Our first question comes from the line of Varun Ahuja with BlackRock. Please go ahead.

Thanks so much for the results. A couple of questions. One is obviously a great outcome on the onshore agencies, from rating agencies, any thoughts or discussions with the offshore agencies? Any color on that would obviously be helpful given that you do have a fair amount of bonds in the offshore space. So that's one. Secondly, I noticed that your cost of funds, t hey are falling, but obviously, it's a slow kind of decline over the next few years in your business plan. Can I presume that, that's more because you can't do much liability management exercises and they are non-call fixed maturity nature of instruments and which is why they have to fall only when they mature?

Yes, thank you, Varun. Thank you for sparing time to attend this call and thanks to BlackRock for being a true rock as far as the support to Sammaan is concerned, both on the debt and th e equity side. We are, Varun, engaged with international credit rating agencies. Both Sammaan's management team, as well as IHC’s management team has had multiple meetings. And now that the financial results are out, our engagement would continue. And I would imagine that the positive rating trajectory that we have witnessed with our domestic rating agencies should get replicated with the international rating agencies as well. For them, a very important metric is the cost of funds. Approximately 90% of ou r borrowings happen onshore. And it is but logical that as an outcome of these upgrades, our marginal cost of funds would decline by approximately 160 basis points. I mentioned that our current return on asset is 160 basis points. So just as an outcome of this upgrade, our return on asset automatically doubles, very high-level math. So this would obviously go into whatever modeling international rating agencies would do. And I am fairly optimistic that given how our overall conduct has been, as well as now with such a strong promoter as IHC, much like the first 50 days have resulted in the domestic rating agencies upgrading, I would imagine the next 25 days would result in a similar action from international rating agencies. On the cost of funds, we have been extremely cautious. We have looked at all of our borrowings. And whatever is long-term maturity and most of our borrowings would be 3 to 4 years maturity, that stock would stay. We have a fair amount of borrowings from banks. We would like to negotiate with them. Let's see how it goes. We are a very attractive borrower from them, having repaid almost 80% of the loans which were given to us by banks on an absolute basis. So banks, like we have seen terminal credit costs on our portfolio. Banks have seen how money lent to Sammaan comes back. And that is obviously giving a lot of credit comfort to them. And that should result in possibly us being able to also negotiate our stock cost of borrowings as far as banks are concerned, which may accelerate the decline in the cost of funds. The bonds can't be negotiated, and they would also have a similar 3 to 4-year maturity. It's our incremental borrowings, which will come in at a lower cost. So the cost of funds in that slide is a mathematical outcome of how we feel that this trajectory would go down. Today, AAA borrows at sub 7.5%. So as we move in that direction, our cost of funds have to move in that direction with a lag of a couple of years given the existing stock of fund borrowings. I hope I answered your question.

Thank you. The next question comes from the line of Renish from ICICI Bank. Please go ahead.

Yes, hi. Thanks for the opportunity. Just one thing, I mean, we are aiming at touching AUM of INR2 trillion, But our experience historically has been going through mortgage. Now to reach 18% aspirational ROE, I'm sure we want to grow more in non -mortgage portfolios. So just on that, I mean, how we are thinking as a management to build some of these portfolios? And more importantly, who are going to drive these products because internally, our experience has always been on the mortgage side. So to build a non -mortgage book on a scale would obviously require different skill set, etc. So how we are thinking to build some of those portfolio? And as far as investment is concerned, you did mention about we'll be very focused on cost-to- income bringing down. But just wanted to understand what will be the maths, right and when we are investing in building such portfolios, how we will manage cost, yes.

So, just as a high -level reaction to that and I will then come down to specifics. As Dalia had mentioned, this is a people's business. We well recognize that. The management team here has managed and we persona lly have managed secured and unsecured loans, personal loans, commercial vehicle loans, loans against securities, all done at scale running into tens of thousands of crores. So these products are not new to us. What is a great enabler now is that tech allo ws you to control and continuously monitor the decisions being taken either by your system. So a lot of the unsecured lending actually happens on your app, which is a continuously learning process. And the second thing is we obviously have to invest in people. It is clearly not possible that I expect the mortgage team on the ground to now start doing personal loans or the personal loans team to start doing gold loans. The branch network has to be unique for gold loans. The personal loan business is more an outcome of how well is the experience as far as the app is concerned. And on top of all of this, the huge amount of profitability is also derived by how successfully are we able to sell other products. Like today, we very successfully sell insurance to over 90% of our borrowers. So that type of cross-sell, which is also not something which is trust on the borrower, but helps borrower manage their own risks is also very, very important. So, we would invest in people. We would invest in tech. What is going to enable this in terms of our ability to be probably as good or better than some other players. One is the fact that we are already starting when we start to grow towards a INR2 lakh crore s book, we already have a profitable INR53,000 crore s book, which is giving us earnings and steady earnings and is not giving us headaches. So whatever has been done has freed up, and it has been done very thoughtfully to ensure that the management bandwidth is fully dedicated to growth. The second part, which I would like to highlight and which probably underscores the overall strategy of Sammaan. In my personal experience, this business is not about asset management. This business is about liability management. This business is about, firstly, understanding that the real asset of this business or the real strength of this business comes out of the way that you manage liabilities. Liabilities could be having a very diversified portfolio from where you borrow in terms of both lenders, as well as the instruments that you utili ze, as well as heading in the direction of the lowest cost of funds. It is known to our promoter. It is known to us that cost of funds is the most significant competitive advantage that we will have, which will enable all and every growth that we are taking up on ourselves and committing to all of you in the presentation that I made to you guys. This cost of funds is obviously supported by a strong promoter, but it has to be executed every day by the management. The most important thing is we don't try and do any cute stuff, which is why these guardrails have been built, liquidity principles have been built, capital principles have been built. All of this will ensure that we have a very stable liability franchise, which frankly is going to be the single biggest competitive advantage, which will continue to accrue to us over a period of time. I strongly believe in the India growth story. I strongly believe India is underserved. It may be a cliche, but I believe Bharat is more underserved. So as we go into Tier 4, 5, 6 cities, we would be presented with opportunities where the asset growth is almost endless. It is about being able to push the last mile credit. Nonbank finance companies, the well-governed nonbank finance companies have been able to grow by pushin g the last mile credit. Our further learning is that we have to do this in collaboration with banks and not competing with banks, which would also allow us to pursue prime assets and continue to leverage on the partnership that we have built with banks. All in all, I believe between investing in people, investing in tech, ensuring consistently reducing cost of funds and having the guardrails, which will sustain the steady compounding, we will get to the INR2 lakh crores or the 18% ROE target or the NIM targ et, the ROA target, the cost to income target. Each of those would eventually result in the profit targets being met. Without a key focus on any of them, nothing will happen. But we are in no hurry, which is why voluntarily before anyone asking me this question, we said growth for this year and growth for next year would largely be via mortgages. They are also higher ticket loans while we build capacity, reduce our cost of funds and build the other enabling factors. I hope your question is answered.

Thank you. The next question comes from the line of Bhanu Chauhan with Barclays Bank.

Congratulations to the IHC and Sammaan Capital teams on the successful completion of the transaction. I wanted to check, given the ambitious AUM growth targets outlined through FY '30, could you help elaborate on the execution road map as well? Specifically what proportion of growth is expected to come through the existing core segments versus the new product lines?

Thanks, Bhanu, and thanks to Barclays as well to have supported us through this journey. The next couple of years, which is fiscal '27, '28, 80% of the disbursals would be dedicated to existing products, which would continue to come down as the other products increase. By fiscal '30, we would probably be having 50% of the disbursals through mortgage-backed products and 50% through other products. The direction in which we will head to irrespective of which product is how much of the overall proportion of disbursement has been articulated in guardrail number 1, which is that 80% of the disbursals would be retail, 60% of the overall book would be secured and a large part of that would be mortgages. The other secured product that we see at scale operating is gold. So the mortgage products and the gold products would be the secured products and unsecured business loans and unsecured personal loans would be the major drivers of the unsecured product. All in all, I think the mortgage products would give us the size. And the other products would help bring in the franchise by increasing the number of customers. And then as an Order 2 impact starts the cross -sell opportunity. Each of these activities have been thought through all in terms of people, branches, tech and the mid-office variety of other assurance functions and work is ongoing in all of that. We want to do it slowly yet steadily and which is why we've said the front-loading of the business growth would be from what we have already been doing, which can be done at much, much greater scale. I would like to bring back to everyone's attention that the quantum of disbursals that we are talking about in the year year '29 is INR72,000 crores, which is roughly INR6,000 crores. In the calendar year '17, calendar year '18, we had disbursed INR50,000 crores. So we've already seen this kind of scale. The scale that we have to do this year and next year is something that we have done 8, 9, 10 years back. So we know how to handle the scale. And we have the experience of being able to navigate the new products, especially with all the tech-led enablement, which is available today.

The next question comes from the line of Avinash Singh with Emkay Global Financial Services. Please go ahead.

Hi. Thanks for the opportunity. Just one question, I mean, around your business projections. Given that, I mean, yes, the rating upgrades will probably follow. But yet, I mean, if we look now, we are in a situation where we have, I mean, AAA rated, strong parent impact, so many, I mean, large NBFCs and well capitalized, many of them have excess capital as well. In this kind of a market competitive scenario, how do you see I mean because this is very, very different than, I will say, say, 8, 10 years back to your Indiabulls scenario, again, that time you were AAA, but there were not so many AAA. Today, you have a large list of AAA, strong and large NBFCs. In that scenario, how do you see this competitive scenario playing out? Because your projections are not just growth, it is a massive increase or improvement in profitabili ty. So that is my question one. Second, if I look again at the projections, I mean, the kind of the ROA, ROE numbers that have been talked and if I look at the cost to AUM or cost to income, that is something, I mean, not many NBFCs even at that scale have done. I mean there are very few and far. So what gives you sort of a confidence about these projections that, okay, this time you are going to achieve these numbers? And on that front, I mean, I guess there is some kind of error, I guess, in your FY '30 ROA projection because that's suddenly going to 8 -odd percent. I think there something is odd there. Thanks.

Sure. So I will certainly check on the FY '30 number. And if there is any correction, I will try and make that live here or update this presentation. Yes, there is an error, and that number is 4.4% in financial year '30. We will update the presentation and resend it to you or also update that on the stock exchanges. Thanks for bringing that to our attention. So the ROA, just so that everyone is clear, fiscal year '27, we expect that to improve to 1.8%, fiscal '28 to 3.7%, fiscal '29 to 4.4% and in fiscal '30 also be at 4.4%. So we are targeting around 4-plus percent ROA on a steady -state basis. You're right, there are now not ma ny, a handful probably of AAA rated NBFCs. Several of them have emerged as AAA rated NBFCs in the very recent past. They have built this business from a relatively small scale over the last 6 to 7 years. So if we are to look at most of the conglomerate -backed NBFCs apart from one, they were of significantly smaller size to where we are right now. Some of these NBFCs are already adding and doing disbursals of the quantum that we are talking of 5 years later. And obviously, they don't control a very, very large market share. Nobody in a well-diversified financial system like India controls a very large market share. So there is a market to be taken. The front ending would happen via mortgages. We have a material hold on mortgages. And now with the asset-light strategy being more an enabler than a compulsory type of a strategy, our productivity almost instantly month-on-month. So between March and April, our productivity has gone up 2x. So that's the quantum of improvement that we are seeing. And we would disburse in the first quarter at least 50% to 60% more than what we disbursed in quarter 4. First quarter, all of you know, is a slower quarter. And then we will probably use that as a base and increase that by 30% to 40%. So all of these numbers are reasonably thought through. We've gone through days and days of discussion with the IHC team. These numbers are also getting consolidated at various levels. And therefore, they have gone through a reasonable degree of review from a doability perspective. From an oppo rtunity perspective, very clearly, the play field is becoming larger and larger provided your cost of funds are lowering, which is why there is so much of an emphasis on credit ratings. The AA+ is just the first stop. AAA is the destination. We will get there much quicker than what may be captured in these sheets. We are working very hard to ensure that we build that compulsive case. I'm sure, at least within my team, nobody was thinking that a AA+ would happen in the first 50 days itself. In our projections, we had thought of this as a quarter 3 event, but we've achieved it in the first 50 days. So very clearly, the journey is towards AAA. The direction is upward. We have a strong promoter. We have a very, very strong operating team. And with that, we will get to AAA. Then it becomes a question whether there is opportunity in India to be able to disburse INR50,000 crores next year, which is INR4,000 crores with other AAA players or 3, 4 other AA+ players. We strongly stand behind these disbursals, these yields. And the cost/income ratio is obviously going to be an outcome of the existing team becoming more efficient. Currently, my productivity is at 0.6 loans per person per month, which will go to 2-plus loans per person per month. That itself is a huge reduction in the cost -to-income ratio. The entire centralized team or the senior management team, that cost gets amortized over those many disbursals and that much larger book that also drives down the cost-to-income ratio. Is it possible to run a high-teen ROE company in India. Yes. Is it very easy. No. Therefore, our unique ability of having managed liabilities, having managed assets, scale them down, scale them back up, scale them up to very significant levels, scale them down again. No one in this country, and I say this with great pride. No one in this country has handled cycles like we have. India will go through cycles. And if we continue to do steady compounding, we will in year here or there, get to 18% ROE. That I am super, super confident of.

Thank you. The next question comes from the line of Naintara Ghosh with Deutsche Bank. Please go ahead.

Thank you and firstly, congratulations on the IHC transaction and the rating upgrades, Gagan. So my question is on the new product suite that you're expanding into. How much investment do you expect is required for setting up these new products? Thank you.

Thanks, Naintara, and thanks to Deutsche Bank again, has been a core banker to us the last few years. I appr eciate the bank's support to us. The investment is less in terms of how much of upfront investments in something, so this is not a great grand factory that I need to set up or a big power plant that I need to set up. I have to invest in branches. A bran ch of gold loan takes about INR20 lakh of to set up. It takes about 3 years before it becomes fully productive and profitable. Our 240 branches are already sized up to do the other products. So in physical distribution, we would have to invest, but these are not investments which are running into tens of hundreds of crores. The expensive part is in expanding the workforce, which we will do at a steady clip over the next few years. But again, there, given the core management team is there, we will require to do more assurance function handling, hiring and product level hiring. So that's again something which we feel is with our earning trajectory r ight now, we can well afford. So whatever are these investments in terms of per person cost, per person productivity per branch, how much will it take, how many loans will it be able to do? What is the tech investment? How many loans will our LMS be able to take and how many more will we have to do? We invested in CRM upgrade. We invested in Salesforce 6 months ago in anticipation of this. So that cost is already taken. It is typically a huge cost. So these costs are all built in are all , none of them ar e, so to say, capitalized. They're built in, they would run through the P&L. And the P&L as a result of these costs would throw up the profits that we have projected. If you would want a more product-level ROA or something like that, you can always engage with the team and they can run you through the ROA for each product for your knowledge.

Thank you. The next question comes from the line of Vineet Sharma with Param Capital. Please go ahead.

Thank you so much for the opportunity and many congratulations on the successful closure of the transaction and the rating upgrade. My question was largely around the NIM expansion that we are seeing in FY '27 to FY '28. It's projected to go from 3.5% to 5.8%, whereas the cost of funds is not declining to that measure. And the leverage also on the book is increasing despite what I think is a bit of equity infusion also, which has been assumed during FY '28. So just wanted to understand what are the levers which are actually leading to this such a significant yield expansion, which is leading to this increase in NIMs?

So the cost of funds that you see are cost of debt funds. These are not blended for equity. The equity which comes in is a very significant $1 billion, whic h directly impacts the P&L. And while I have the highest regard for shareholder money, from a P&L perspective, it does not come with any added cost. The other enabler of the ROA is if you just go 2 lines below , just go to ROA and then more importantly, go to return on managed asset. Since the strategy for the first 2 years is to continue to do mortgages. And on mortgages, we would continue to do a fair amount of sell-down. As the return on managed asset goes up, it has a direct impact on net interest m argin from a perspective of our net interest margin. My colleague, Ramnath, will just explain the calculation to you.

Yes. See, what also adds to the NIM is our sold on book. So the spread that we make on the sold on book directly adds to the NIM. And hence, you see that expanding. So in FY '28, if you see the difference between the AUM and the loan book, that's about INR 30,000 crores, which expands to INR45,000 crores. So this boosts the NIM. The cost of funds mentioned here is only the cost of funds on the borrowings that is on our balance sheet.

So that does not factor in the additional equity, which has come in, which is liquidity. So there are 2 aspects of equity which is coming in. One is the cost the equity which is liquidity, and then there is the capital buffer. We've consumed the capital buffer, but we still have the liquidity, which we will continue to enjoy.

Thank you. The next question comes from the line of Arun Antony with JM Financial. Please go ahead.

Hi team. Thank you for the opportunity. Congratulations, first of all on the transaction and the rating upgrades that were received recently. harping back on the cost of fund side. I think in the previous conference call, it was mentioned that over FY '27, around 270 bps decline in cost of funds is expected. So in the current backdrop of the West Asia conflict and yields hardening currently, do you think this 270 bps reduction in cost of funds is still achievable for FY '27?

Yes. So what we had said is 270 bps of cost of fund improvement will happen as we complete our journey from AA to AAA. It can't obviously come in on the overall stock of funds and AA to AAA is not a direct journey. It will come with a stop, which is probably a pit stop, and we will be able to move up with a very strong case, both operational as well as the promoter once we are able to demonstrate to rating agencies that we have settled in as a AA+ credit, and we are ready for AAA in all aspects. The balance sheet is very, very solid. It is as strong as when I look at it very dispassionately and compare it with any of my AAA rated peers, peer NBFCs, then we are there as far as all aspects of the balance sheet are concerned. So operationally, we are ready. Financially, we are ready. From a promoter perspective, we are ready. It's just a matter of time. We stand by the 270 bps number. That on a marginal basis would require us to go from AA to AAA. As we go from AA to AA+, we would capture about anywhere from 120 to 150 basis points out of that. And then the next 120 to 150 basis points would come via the AA+ to AAA target migration and upward movement. Now the last question, please.

The last question comes from the line of AS Raju, an Individual Investor.

Good evening Gagan ji. I'm shocked with your write-offs. What is the total outstanding write- off as of 31st March road map for writing? What will be the percentage of recovery from write- offs as the projections include all these writings or not?

So the projections, Mr. Raju, do include recoveries. We would recover close to about INR7,000 crores from what we have provided. And that has been baked into all of these projections in due course of time. I would refrain from calling this w rite-off. These are credit costs, which will enable management to focus on bandwidth. So yes, we have dipped into our capital one time to be able to add much more to that capital in due course of time via growth. A lot of time has been spent by the management team in consolidating the company. Companies don't go anywhere by just hanging in there, either they have to grow or the phase of consolidation would lead to something which is not very positive. We've navigated that, and I'm fairly confident that with whatever buffers we have on the balance sheet, as we have shown to you in the past, even if we, for example, do sales to asset reconstruction companies, we recover 70%, 80% of that. And all of that has been discussed in various calls in the past. So this is just a technical step to make sure that we have the right buffers, we can fully focus and the INR53,000 crores of assets are painless assets, which give us full bandwidth to focus on growth and support us with the earning power of the 1.6% ROA, which will continue to expand as the cost of funds reduces. So that is my humble submission to you. Recoveries will be very comfortable and recoveries are part of the numbers that we have presented to you.

Thank you. Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to Mr. Gagan Banga for the closing remarks.

So thank you, everyone. May I request Dalia and Peter, if you would like to say any concluding words and then what I have to say I have said. So thank you. Dalia, Peter?

Thank you, Gagan. Look, I just would like to reiterate, it's our pleasure. It's a wonderful opportunity for both IHC and Sammaan. We think that this relationship will benefit bo th organizations, and we see nothing but a very bright future. I want to thank you for the opportunity. It was great to listen to a number of people who have spoken today. It's wonderful to see their support for the bank. And I think that we look forward to working closely together with you. And I think there is nothing, but strong prospects as we move forward. Thank you.

Thank you, Peter.

Thank you, Peter. Thank you, Gagan, and thanks for everyone who's participated with us today. Of course, this is the start of a number of series of calls that we are going to be coming back, and we're going to be constantly giving updates on. So we are looking forward to working closely with the management team, as we've mentioned, in order for us to ensure that we have the operational and the product efficiency and to transform and to set all these trajectory KPIs going forward. So we thank you all for your participation and looking forward to a great journey together.

Thank you, Dalia. Thank you everyone for participating, supporting us. And we are, as a team, very, very optimistic about the future and look forward to engaging with you next quarter. Thank you.

Thank you. Ladies and gentlemen, on behalf of Sammaan Capital, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.