Ladies and gentlemen, good day and welcome to Housing and Urban Development Corporation Limited Q1 FY 2027 Post-Earnings Conference Call hosted by DAM Capital. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanket Chheda from DAM Capital Advisors. Thank you, over to you, sir. Hi. Very good morning to all of you. We have with us the entire management team of HUDCO to discuss the Q1 results. From the management side, we have Mr. Sanjay Kulshrestha, who is the Chairman and MD; Mr. M. Nagaraj, who is the Director of Corporate Planning; Mr. Daljeet Singh Khatri, who is the Director of Finance; Mr. Achal Gupta, who is the Executive Director of Finance and IRO. Without further ado, I'll hand the call over to Mr. Sanjay, sir, for his opening remarks. Followed by question and answers. Over to you, sir. Thank you, Sanket, good morning to all of you. If you have seen the results, I'm sure that you had already seen the results, I will not go to the numbers. I will start with the ecosystem and the policy of the company, as well as how we are aligning with the policies of the country towards Aatmanirbhar. As we all know that HUDCO is a sector-agnostic company, there is a lot of potential into the urban infrastructure. It is not the potential, it is the need of the hour that our cities need that kind of infrastructure. If you have observed the last 10 years' progress and the infusion into the urban infrastructure, starting from the basic urban infrastructure of PMAY or AMRUT or Swachh Bharat Mission, graduating to metro, RRTS, airports, ports, industrial policies, semiconductor mission. Everything, every industry, I think they are attracting more of a planned urban ecosystem and infrastructure because it's a capital and human-intensive kind of industry that we are working upon. All these things are creating potential business for the company. It may be ring roads, it may be the regional ring roads, it may be multi-sector kind of infrastructure, multi-model corridors. All these things are very capital intensive, we are working with lot of state entities for creation of these assets. Our numbers are the reflection of all these policies of the company. At the same time, if you see on a larger level from the Government of India, there is a sense of leveraging of the infrastructure which is already created in last 10 years, whether it is road or whatever it is. At this point of time, there is a change in thought also from the subsidy or the grant-based schemes to the bankable projects. With this perspective, a slight iota of reform has also started into the urban infrastructure. We have seen the schemes or the projects. I will not say it's a scheme or project. Rather, it's a fund-based approach. The way Urban Challenge Fund has been propped in, which is one of the very proactive kind of initiative taken by the Government of India, where the 25% to the extent of INR 1 lakh crore has been earmarked as a subsidy, or you can say VGF for the urban sector project, and another 25% has to be propped in from the state sector. Balance 50% to the extent of INR 2 lakh crore has to be created by the private sector player towards the bankable projects. Now the focus is towards the bankability, viability, and the sustainability of these assets. It's a sea change in the thought, and a lot of states are coming forward with this thought, and they are contributing lots of projects and two apex committee has already sanctioned around more than INR 30,000 crore. If you see the SASCI facility from the Government of India, there also there are reform conditionalities towards the urban infrastructure, and lot of money has been provided for by state sector. If you see the Finance Commission also. The allocations towards the urban spectrum has enhanced to the maximum. All these things, if you see, whether it is the policy, whether it is a thought, whether it is a capital expenditure, or whether the preparation of the state towards creation of the new cities, planning new cities, like in Delhi, the Jewar Airport has came in near Delhi. New cities are being planned in and around. Bombay is coming with this airport, and a lot of urban conurbation is concentrating towards that side. Naya Nagpur is being coming. In Bangalore also, we are talking. Even the northeastern side, if you see the Meghalaya, the new Shillong is being planned in. New Bhubaneswar is being planned in. It is not only the organic kind of infrastructure which is required for the country, but as we all know, the urbanization level in next 20 years will be to the extent of 100%. Presently, if it is 40 crore of the urban population, it will be doubled in next 20 years. It will be to the extent of 80 crore. It is 50% of the total population which is projected. The kind of urban capital which is required for the country, it is giving lot of potential, and our results are the small reflection of that kind of commitment and that kind of planning for the country. I will stay with these initial comments. Thank you so much. Should we begin with the question and answer session now? Yeah, you can. Sure. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sandeep Agarwal from Naredi Investment. Please proceed. Hello. Yeah, Sandeep. You are audible. Sandeep, are you there? As there is no response, I'm taking the next question from the line of Vijay Singh from Mirae Asset. Please proceed. Yeah. Hello? Hello. Yeah, Vijay, you are audible. Yeah. Hi. Good morning, sir, and congratulations on a good set of results. My question is, just I wanted to understand a bit more about foreign exposure, short-term foreign exposure. Second one, on our lending rates. These are two my questions. Regarding the short-term foreign exposure, that is very minuscule. We had retarded all short-term foreign currency loans. Whatever we have, more than 99% is the long-term, that is five-year borrowings. Company has planned to take the advantage of this RBI Forex window and. We had already borrowed around $700 million, we have a tie-up of around $2 billion under this facility, and we are trying to enhance this number. At the same time, we need to see two things. The availability and the cost. We need to balance on these two aspects, at the same time, if you see, the domestic loans has also started melting down. We need to be very wise in deciding the levels of the foreign currency loans going forward. I should understand, we were getting some of bit challenges on foreign exposure, higher hedging cost and all. That cost is not likely to come up in terms of payment and all short-term foreign exposure. Am I correct, sir? Yeah, you are correct. Finally, we are getting some good funds because our approach is to work with all the lenders. Okay. We had started this work at least two months back, and now we are getting that kind of advantage. That is for short-term, because in our real calls, you told we are going to proactively manage a short-term foreign borrowing as we should not have, as you know, currency depreciation impacted on some higher hedging cost and et cetera. I wanted to understand that point. It's not short-term. It's five-year loan since RBI has come with the window that if you are raising dollar-denominated loans for five years. RBI will be taking care of part hedging cost and we have to take only 1.5% of the hedging cost. It is coming out to a very attractive kind of a proposition for lenders like us. Correct. My second question is, sir, how is our portfolio yield and how this is related to interest rate? Portfolio yield or passing on benefits or. Portfolio and lending ratio. I think it is very relevant, it is continual kind of statement that I can make, that our spreads will remain around 2% and our NIMs will be around 3%. You can have back calculation of that, whatever results in a very short-term, maybe by end of this financial year, we will be resting at around spread of 2%. You have to understand that the ecosystem in which the HUDCO works. It is not a kind of where the bankable projects are almost ready and lot of cash flows are coming. We are very diligent in choosing our projects and at the same time choosing our entities also, so that there should not be any risk of NPA. 2% is the spread, which is well acknowledged by our borrowers and we will be maintaining that kind of spread. At the same time, we will be continually working towards cutting down cost of funds, cost of borrowing. Be it the RBI Forex window, be it the internal cost, be it the bank loans, be it the proposition that how we are retiring the high cost loans, or we are dissolving our assets or monetizing some of our assets. All these efforts will be continual and will be going through, and at the same time, spreads will be around 2%. Okay. Thank you so much, sir. Yeah. Thank you. The next question is from the line of Sumit Rohra from Smartsun Capital. Please proceed. Hi, sir. Very good morning. Firstly, sir, I am happy to say your results have been extremely strong, so congratulations on that. Now, sir, just couple of things I wanted to understand. We were facing issues last year of basically the FCNR, et cetera, for which basically our last financial year, our core numbers were quite suppressed. Is it safe to assume now, sir, all those issues are now behind us in terms of all the accounting losses of the foreign exchange? That is my first question, sir. My second one is that in the month of June, you have signed two MoUs, which I see, sir. One is with Gujarat and one is with Bihar. They both are in excess of INR 1 lakh crore. Can you throw some light on how basically this is going to shape up in the overall sanctioning and disbursement? Sir, these are big projects which you have got into. Can you just explain slightly that today our existing MoU is about INR 7 lakh crore or something of that sort, or INR 8 lakh crore, I do not recall, but this will further add INR 2 lakh crore. Are these confirmed ones which are going to be disbursed? Or, sir, can you just throw some light and then I will ask you a little bit further, sir. Regarding FCNR, our Director of Finance will comment, I will take, because it will take slightly a longer time for me to elaborate on these two MoUs. Over to Director, Finance. Good morning. I'm Daljeet Singh Khatri. This side, Director, Finance. Morning, sir. I think the earlier question was also related to short-term foreign currency borrowings. As CMD sir has said, we do not have any FCNRs in our books which are going to mature in the current financial year or the next financial year. We have a very small portion of FCNR, $200 million? $200 million. $200 million which are going to mature in 2028. We do not foresee any foreign currency losses in the current financial year. The $200 million which is going to mature on 2028 is also adequately secured. We have taken higher protections, and we do not foresee any Forex losses on that. Rest of the borrowings are long-term borrowings, five years ECBs, which we have taken, and mostly they are going to be covered under the special window of Reserve Bank of India, where we are going to take POS, that is full protection on the Forex. Sure, sir. Thank you, sir. That's helpful. Regarding the second part of the question, the MoUs, the philosophy of the company is to work across the country. Presently, we are more intensively working in around 12, 13 states, some of the states were not taking that kind of bigger capital-intensive project. Now our emphasis is to work with these kind of states. I think that Gujarat is the first state to start upon because lot of bankable projects are coming in, starting from the metro to the roads and the infrastructure for the sports. As we all know that the International Police Games are coming in 2029, the Commonwealth Games will be there in Ahmedabad in 2030, Ahmedabad is also bidding for the Olympics 2036. All these things require lot of infrastructure. After lot of discussions and the deliberation at the government level, the state government level, Gujarat government, we had signed this MoU, which is backed by lot of projects which are identified, which includes the infrastructure for the Olympics, finally, and the metro systems, RRTS also since Gandhinagar, Ahmedabad, and the Sabarmati has to join and that kind of infrastructure has to come on. Lot of road projects also, the highway projects also, they are planned by the state. I think it's way to go in Gujarat. The projects will start coming from the next month. In this quarter, we will be sanctioning some projects in the Gujarat, so I'm very hopeful for that. Secondly, regarding Bihar, as we all know that all these states has to come forward, now Bihar has come up with a Visit Bihar kind of statement, which is very clear. When we were discussing with the state, they were more focused towards creation of this capital infrastructure and primarily the urban infrastructure, looking at the resources of Bihar. That's why we had signed an agreement for creation of 12 satellite towns. We are also discussing some road projects, some tourism projects, and the metro project as well, beyond the housings as well. Some housing projects are also in the pipeline. There is a lot of leverage, lot of headways in the state government, for understanding how these capital projects can come up in Bihar. They want to take the facilities of the Urban Challenge Fund also, which invariably says that the project needs to be bankable. The role of lender will also be there. HUDCO will remain there as a lender for Bihar government. On these lines, we have signed this MoU. At the same time, if you see the journey of last 55 years, starting from the consultancy to training to lending, I think we are the best bet for the state government, and I will request our Director of Corporate Planning to, which is more on the subject of how 360 degree kind of solutions we are providing to the state. Good morning. Let me give you a small example. Immediately after signing an MoU, the Government of Bihar has come out with a road project which is almost to the tune of INR 21,000 crore. Believe me, there's a stiff competition for financing states like Bihar from NABARD, NaBFID, commercial banks, and the rate of bid has also gone down so much. There is a huge potential for getting a scheme. Now second phase is coming with itself, as our CMD has said, whole satellite towns. Even smaller cities like Assam, even Patna, they're all coming with the satellite towns, completely independent, integrated, self-contained townships. Government has started a big way in acquisition and also master planning. HUDCO is likely to work with both in consultancy as well as in financing and also acquisition. I feel that there is a huge potential in tourism, industrial parks and also satellite towns. Yeah. One more example also, small state like Arunachal Pradesh, which is bordering Assam. There is a new airport has come out with. The young IAS officer came and she has projected such a wonderful new concept c alled as small c ity integrated complexes, commercial complexes bordering a town. That shows that each state is competing with the other state, and there's a lot of scope for developmental works. Sir, if I may just ask one thing. The matter of fact is that you have visibility on these projects, and each of them are INR 1 lakh crore nearly. Can we safely assume that today your growth rates which you're talking about are extremely conservative, right? Because if you've got clear visibility from Gujarat and Bihar for nearly sanctioning and disbursing INR 2 lakh crore, that means, sir, this guidance of ours which we've given of INR 3 lakh crore by 2029-2030 looks extremely conservative, right? Because there is clear visibility which I'm seeing from exactly what you're saying, right? Is my understanding correct, sir? To some extent you are right, because the progress of the project, we didn't extend money like anything. We need to see the outcomes also. We need to see the progress of the projects. There are a lot of things that the state needs to comply before awarding the contract. The process is not an easy process because land acquisitions, the social issues, and political issues. A lot of things are there. Here the arithmetic fails that it will be done by 2029. I am sure once the project starts, there may be here and there, but finally, generally these large projects are completed within five years of the time. It is better to take five years kind of thing. Got it, sir. Great, sir. Thank you so much, and wish you all the very best, sir. Thank you so much. Thank you. The next question is from the line of Divyam Ketan Doshi from 9To3 Capital. Please proceed. Hello, sir. Congratulations on the great set of numbers. I just wanted to know, since board has discussed the guidelines about starting PPP Project Finance Division. I wanted to know what's your internal target book size for FY 2028, 2029, or what's the plan with that? We have repeatedly advised the market that there will not be any target for the private sector sanctions of the disbursement. It will be on the case-to-case basis and in line with the strategy of the company to support the various sectors, and we have started with the five sectors. Two projects we had already sanctioned in Q1 and Q2, the part of Q2. I think in Q1. Q1. Q1 we had sanctioned two projects amounting to around INR 6,000 crore or so. INR 7,000 crore. INR 7,000 crore. Maybe the disbursement will start in the latter part of this financial year. If you see the loan outstanding, because sanctions are different. We can sanction any number of projects, but at the same time, the maturity of the project, the documentation, the disbursement has to start, and finally, they have to accept our financial closure. In private sector, if you want to go for good entities, the best entity, there are a lot of discussions on the terms and conditions of the loan and other players are also there. That's why we had not kept any target. At the same time, I can assure you that we will go very safe on the private sector. At the same time, we will be supporting the sector also. Under UCF, lot of PPP projects we are expecting, maybe it's water or desalination plants or stormwater treatment, drainage, sewerage, where we are expecting good PPP players and government has also, under UCF, is extending 50% VGF. For 50%, we need to check the bankability, and we are discussing with the states to have a user fees kind of framework also. We are very open for the private sector. It may go as high as possible, but at the same time, the principles will remain same. Good entities, good projects, good concessionaire, strong concessionaire agreement, and lot of collaterals. Okay. Thank you. One more question, sir. Can you give me a breakup of the yield on loans separately for urban infra and affordable housing? That comes to 8.78% something. Can you please give me a breakup? Actually, there is no separate breakup. Again, I will come to the same point. We are here to support the sector. At the same time-- I'll add, sir. At the same time, once states are coming for a counterpart requirement under housing, which is not happening so often now, that's why our housing portfolio is reducing. We are extending that around our MCLR of around 8.6% and for other infrastructure, we have a different kind of rates as per the sectors, as per the requirement of the project. I cannot say that, but our-- More or less. It is not one rate or two rates, but at the same time, our priority or our attraction or our commitment towards supporting the housing will remain there. That too under PMAY. It's not coming so often for us now. Okay, sir. Thank you so much. That's it. All the best. Thank you. Thank you. The next question is from the line of Arul from Ksema Wealth. Please proceed. [audio distortion] As there is no response, I'm taking the next question from the line of Sandeep Agarwal from Naredi Investment. Please proceed. Hello. Yeah. Thank you for the opportunity. Hello. Am I audible? Yeah, you are audible. Yeah. Just to add on the question regarding the MoU we signed. Sir, as per your presentation, we have currently approx six MoUs, approx INR 6.5 lakh crore. Just again, sir, what is the timeline of all the projects? Roughly approx three to five years or something more. How we raise the fund. What is the plan of the borrowing mix? We had signed the MoU. This is an intent to work together with the states. The MoU is valid till five years. I am very hopeful that the works on this MoU will start maybe in the last quarter of this financial year, or maybe in some of the projects maybe before that also, like in Metro of Gujarat, we are expecting very soon. The disbursement will go for another five years. It will take some time because they are very capital-intensive projects and lot of project formulation, project structuring, and lot of time is required for financial closure, to have that kind of feeling that how the servicing will be done. Similarly, for other MoUs also, it will take five years. The validity is for the five years. Disbursement or sanctions will start in the first year, and last disbursement may go up to five years or so. What is the next part regarding the borrowings? Regarding the raising fund, regarding the project and what's the borrowing mix we plan? Borrowing mix, I think it will remain same. Presently, we have around the domestic loans, bank loans. We have the bonds also, domestic bonds, around 40% + 30%, so 70% is the domestic borrowing, more than 70%. Then we have around 10% ECBs we had already done. Out of INR 150 crore- odd of the borrowing, we have around 10% of the foreign currency loan and the balance is a domestic loan. There is a possibility because of the RBI Forex window that for another five years, that ECB loans will be higher, maybe. It may go from 10%-20% of the total portfolio. Let's see how things will unfold. Yes, there is a lot of potential in the ECB side. We are also planning some bond, but it will be a fractional contribution, looking at the rate of the dollar and the other facilities. Finally, the cost will be the key for deciding all these kind of borrowings. Okay. Sir, currently, in current quarter, we have a tax for approx 20.16%. Why this low for the full year tax rate guidance? DF will be answering this. Yes. Tax rate is like 20.61% because, now earlier we used to create deferred tax liability on special reserve, which we are required to create for sustaining the long-term financing. To align ourselves in line with the other government sector and private sector NBFCs, now the board has decided not to create any DTL on the special reserve. That is why my effective rate has come down. Okay. Okay, sir. Thank you. Okay. Thank you. The next question is from the line of Parth from DAM Capital. Please proceed. Hi, sir. Thank you for the opportunity. Am I audible? Yeah, you are audible. Sir, congratulations on a great set of numbers. Sir, I want to just double-check on the growth aspect here. The disbursements have been really strong. The sanctions growth has been really strong for us. What kind of growth, at least in the near term for 2027 and 2028, are you kind of projecting or internal targets you have on the disbursement and AUM growth, sir? We had not worked out for 2028, but of course, for 2027. FY 2027, we are planning to have a disbursement of around INR 65,000 crore. Last year, we had achieved around INR 52,000 crore. On the basis of the INR 65,000 crore, board has approved the borrowing plan also. It is around how much? INR 70,000 crore. INR 70,000 crore. In the next year, we have not planned, but 2030, we had planned a loan book of INR 3 lakh crore, and I'm very sure that we will be achieving that INR 3 lakh crore loan book. At the same time, in mid of FY 2028, we will be reviewing on the basis of the achievements of FY 2027. In case it is required to have a mid-course correction, we will be definitely informing to the market. Understood, sir. Sir, secondly, one more thing. I was just looking at the presentation where you have given some breakup of the sanctions. Currently, the sanctions have been kind of concentrated on the water sanitation side of it, and other segments have just kind of started to pick up. Sir, what's the outlook on sanctions for the other segments as well? I think you are talking about the sustainable finance. Am I right? Yes. Sustainable finance is not all inclusive finance. Beyond sustainable finance also, we are sanctioning lot of projects. If you see the sustainable finance, you are right. The water and sanitation are the basic things that we are considering because they are on the priority of the Government of India and MoHUA also. Off late, the states are also progressing very well. We are supporting these sectors because if these sectors will be supported, lot of other capital projects will also come. You can say it's a seed kind of investment that we are making to support the state, and they are coming from the Government of India program of AMRUT. That's why we are supporting. Understood, sir. Just last two things, sir. Can you give some color on the kind of sanctions you have done for this quarter, and what's the total sanctions outstanding yet to be disbursed with us? Lastly on, sir, when you guided for spreads of 2%, right now it spreads up closer to 1.8%. We should believe that this spread has kind of bottomed out this quarter or maybe because of business must have taken place on the later part of this quarter. Sir, just two questions and how to think about it. Yeah. If you see what we had sanctioned, there are some ring road, expressways, some irrigation projects, water grids, the drinking water solutions, the industrial development corridors, something in generation and the distribution power side. Urban infrastructure also in Telangana. Water supply and sewerage projects are there. These are the kind of projects that we have financed in first quarter. Regarding spreads, yes, I think we will be maintaining this 2% spread. I think it will easily come to us. The compression is on only account of the accelerated growth within the company. We will be resting at around 2%. Maybe in the third quarter, you will see that all these disbursements, which we had done in Q4 of last FY and the Q1 of this FY, they will be capitalizing and creating that kind of spreads for us. Got it, sir. What's the total sanction outstanding for us? The total sanction outstanding, if you see it, is around INR 2.5 lakh crores, which is already there. In last quarter only, we had sanctioned more than INR 60,000 crores. Last year we had sanctioned INR 1.24 lakh crores. Lot of sanction pipelines are there. Now we are into the phase of starting the disbursement in some of the projects. In some of the project, disbursement is already started. We are in the good space. We had created a very decent or rigid kind of a pipeline in terms of the sanctions, and there are lot of projects which are under consideration. Regarding the sanction pipeline, we have no question. A lot of potential is there across the states. Understood, sir. Thank you so much, all the very best. Thank you so much. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Sumit Rohra from Smartsun Capital. Please proceed. Sumit, are you there? Yeah. Hello. Yes. Yeah, sorry. I was on mute. Sorry. Sir, if you can just talk a little bit about the NPA. I think it's zero right now. Sir, secondly is that, can you just throw a bit light on how do you basically do due diligence on loan, et cetera? Because we got such a great pipeline. If you can just talk a little bit about that process also, then it'll give very high clarity on us, sir. Thanks. Our gross NPA is slightly more than INR 1,600 crore, and our net NPA is around INR 82 crore. Out of the INR 1,600 crore, around INR 1,100 crore are at different stages of the NCLT, where we are funding these projects way back previous to 2013. I'm very sure that we will be resolving these assets during this financial year. They are into the advanced phase of resolution. All the lenders are on the same page. Some of the projects has already gone under the liquidation and the orders had already came, and the revenues are continuously coming in parts and the trenches. Outside the NCLT, there are around INR 34 crore of the projects. Three accounts are there, I'm also sure that all these accounts, since they are outside the NCLT, very soon they will be resolved. There are some non-consortium project in NCLT to the extent of INR 29 crore. That is also in the advanced phase. Now we have changed our strategy, and we are continuously working with the promoters, the NPA developers to understand their point of view. We are not only dealing with them in DRT and just sending some figure. It's a mutual kind of understanding, and we are taking them online and understanding their point of view and how to resolve these assets, understanding their capacity and the capability to resolve these assets. Because of that, we are nearing zero, not zero net NPA. We are trying hard to resolve all these assets, I'm very hopeful that most of this part will be resolved during this financial year. Excellent, sir. Thank you. Thank you. Thank you. The next question is from the line of Kishore Agarwal from Bajaj AMC. Please proceed. Hi, sir. Thank you for the opportunity. I have two questions. One, you talked about the disbursement number for the full year. Can you also talk about the repayment pipeline that is there for the full year? I think in Q3, you talked about INR 4,000-INR 5,000 per quarter run rate. Does that still hold true? That is my first question. Okay. Balbir, do you want to answer? Yeah. Okay. Yeah. Good morning, Balbir this side. Actually, total repayment for the year will be approx INR 20,000 in the current financial year. Out of that, already INR 4,000+ we have received for the current quarter. Accordingly, for coming up quarters in the current financial year, we will be receiving around INR 15,000-INR 16,000. Accordingly, our total loan outstanding will be on that basis only. Already, the projections for the release are as already discussed. Thank you. I'm very sure that you must be having a number of the loan book by now. Sir, can you please come closer to the device? With this answer, I think you have understood what will be the kind of loan book we will be having by this financial year. Next question. We can go for the next question. Thank you. The next question is from the line of Vaibhav from Nirmal Bang Securities. Please proceed. Hello, sir. Yeah. Thank you for the opportunity. In this quarter, we reported the yield on loans of 8.78%. What are our expectations for the upcoming quarters and what is our strategy to protect our yield for in the coming quarters? Yield is around 8.78%. At the same time, our cost of funds is also reducing, and we are continually trying to cut down cost of funds. Beyond yield, I can make a statement that we will maintain our spreads, as I am repeatedly advising that our spreads will be 2%. Yield is a function of a lot of things. If our cost of borrowings are increasing, we are passing some part to our borrowers also because we are into that spectrum where we need to support the urban infrastructure. For sure, our spreads will be maintained at 2% and NIMs will be at 3%. Okay. Thank you. Thank you. The next question is from the line of Vishal Gajwani from Aditya Birla AMC. Please proceed. Hi. Thanks for the opportunity. I just wanted to check on the borrowing profile. We have raised, I think, INR 1,800 crores from this RBI Forex swap window. What is the kind of full-blown loans that we can get from this window over the next couple of months? I will again answer this. We had already borrowed around $700 million under this facility. We have a tie-up to the extent of around $2 billion. The total $2 billion tie-up is there. We are targeting to enhance this number, but I cannot comment on this enhanced figure. There are a lot of discussions that we are doing with lot of banks, domestic bank as well as the international banks. Okay. This $2 billion is something that we would plan to utilize fully, if not more. $2 billion will be the minimum figure. Okay. Sure. Thank you. What is the cost of borrowings here, including hedging cost? Cost is since RBI is taking care of entire hedging and we have to only have a provision of 1.5%. It is coming at around ± 6%, you can say, 10 basis points here or there. Okay. Perfect. 5.5%-6.5%, our finance department is telling me. It is between 5.5%-6.5%. Okay. Sure. This is helpful. Thanks a lot. Okay. Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchtone telephone. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. I think if there is no question anymore, we can conclude this earnings call. Yeah, Sanket. Yes, sir. You can give the closing remarks now. Thank you. Thank you so much. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.