Good morning, ladies and gentlemen. Welcome to the Satin Creditcare Network Limited Q1 FY 2023 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 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. HP Singh, Chairman cum Managing Director of Satin Creditcare Network Limited. Thank you, and over to you, sir. Thank you. Good morning, everyone, and thank you all for taking the time to join us and discuss our financial performance in Q1 FY 2023. I hope you and your family are safe and keeping healthy. I'm hoping you have already seen our quarterly results and investor presentation. Those who have not seen them can do so via our website and stock exchange notices. The microfinance sector in India has traversed a turbulent journey. However, we are pleased to inform you all that the company has witnessed a turnaround, and we are confident that the difficult times are behind us, as evident in the performance of the quarter under review. Further, we are confident of having a very good year in terms of growth and profitability. Now let me start with the key developments that took place during the quarter. As a progressive institution, we have proactively envisaged strategies time to time and have demonstrated resilience in the challenging environment. Optimizing our business acumen post demonetization in 2016, we strategized to diversify out of unsecured MFI portfolio to secured product offerings through rolling out our subsidiaries. The strategy to diversify portfolio yielded results for the company, and the subsidiaries have taken great shape over the years. In order to better reflect the embedded value of the investment in these three wholly-owned subsidiaries, we have revalued our investment in the subsidiaries through our profit and loss and recorded an increase in fair value of INR 351 crore in the standalone financial results. During COVID-19 pandemic, many of our clients and their family members lost their lives while countless lost their livelihoods. This, coupled with lockdown, affected the marginalized sector and in turn repayments. As a measure to provide relief to the impacted clients, the company restructured 21.4% of the loans amounting to INR 1,151 crore and provided moratorium wherever was necessary. Restructured book is reduced to 11.6% of on-book AUM as on Q1 FY 2023, amounting to INR 584 crore with an ACL provision of INR 295 crore and collection efficiency of 72.1%. The company monitored the performance of this portfolio and realized that certain set of clients are still economically unstable and hence are unable to repay their loans. Therefore, the company decided to write off loans amounting to INR 275 crore, which is 5.4% of the on-book AUM during the quarter under review. Post write-off, the GNPA of the company has reduced to 4.3% as on June 2022, as compared to 8% as on March 2022. Despite this write-off, our gross AUM remains on similar levels as of March 2022 at INR 6,389 crores on a standalone basis and INR 7,569 crores on a consolidated basis. Furthermore, we have created sufficient provisions to address any contingency in our portfolio, maintained on-book provision of INR 398 crores as on June 30, 2022, which is 7.9% of our on-book AUM. The profit and loss account of the company now stands insulated from any additional stress that may come in. The profit for the quarter stood at INR 60 crore. The company is well capitalized with a healthy CRAR of 22.6%. The company has maintained sufficient liquidity of INR 1,017 crore as on June 30th, 2022, and has undrawn sanctions worth INR 350 crore as of quarter end. However, as per the consolidation procedure set out in Ind AS, this increase in profit is due to the fair valuation of investment in subsidiaries of INR 351 crore, which has been eliminated in the consolidated financial results. Due to this, the consolidated results has net loss as per the accounting standards. The fair value has been determined on the basis of independent valuation report obtained from Category I merchant banker. Also, we are elated to share that all the group companies have reported profit during quarter one of this financial year. During the quarter under review, with our conviction of being determined, definitive and decisive, supported by our robust in-house technology, we were able to adapt the new RBI regulations swiftly into our system and started disbursing from April 2nd onwards under the new regulations. As a responsible organization, we are guided by our long-standing resolve of reaching the underserved sections of the society, cater to their needs and economically uplift them. Going ahead, the organization aims to ensure a healthy growth with a risk-adjusted cornerstone. We, as one of the industry's leading players, are expected to regain our growth trajectory and advance strongly. Now let me run you through the financial and operational highlights of our company. Starting with the consolidated operational highlights. Our AUM as on June 30th, 2022 stood at INR 7,569 crore. We have a customer base of more than 27 lakh as of June 30th, 2022. Our disbursement for the quarter stood at INR 1,709 crore as compared to INR 282 crore in quarter one FY 2022. Our assigned portfolio stood at INR 1,304 crore. We are seeing disbursement activity to pick up, and we had one of the best first quarter in the last few years in terms of business. As of J une 30th, 2022, 100% of our disbursements are made through cashless mode, while cashless collections stood at about 6%. We have also adopted website payment option and UPI auto debit. Now on the standalone operational highlights. Our standalone disbursement for the quarter stood at INR 1,554 crore as compared to INR 222 crore in quarter one FY 2022. With disbursement back on track, we expect growth to come in the coming quarters. Our average ticket size of MFI lending for the quarter stood at INR 41,000. We have made adequate provisions of INR 398 crore, including INR 295 crore assigned to the restructured portfolio. Our collection efficiency for the quarter stood at 97.3%, excluding the restructured portfolio. The collection efficiency on restructured portfolio for Q1 FY 2023 stood at 72.1%. Collection efficiency for July 2022 stood at 98.5%, excluding restructured portfolio, showing all the signs of improvement. We have a well-diversified customer base, a well-penetrated branch network across India, 76% rural exposure. On-book GNPA reduced from 8% as on Q4 FY 2022 to 4.3% as on Q1 FY 2023, from INR 412 crore to INR 217 crore. Out of this, INR 105 crore pertains to Assam. New pile addition of loans disbursed from July 2021 onwards was 0.6%, representing 70% of our on-book AUM as of July 2023, which is very encouraging. Geographical expansion. As of June 30th, 2022, our total branch network stood at 1,224 branches, which is spread across 397 districts. We have a total state and UTs count of 23, which makes us a well-diversified pan-India microfinance player. As of June 30th, 2022, 96.5% of our districts have less than 1% of portfolio exposure. Exposure to the [top 24 states] contributes 53.6% in Q1 FY 2023, at 77.3% in FY 2017. Our well-thought-out diversification strategy has enabled us to sail through difficult situations and capitalize on our idea of enriching our clients' lives through financing of various products, which includes loans for bicycles, solar products, home appliances, consumer durables, and water and sanitation. An update on subsidiaries. Satin Housing Finance Limited has now reached an AUM of INR 331 crore, including DA of INR 27 crore, having a presence across 4 states with 3,810 customers. SHFL has a 100% retail book comprising 66% affordable housing loans and 34% of LAP. The company has 16 active lenders, including NHB refinance, CRAR of 54.7% and gearing of 2.2x. Total equity stands at INR 101.6 crores. The quality of portfolio remains intact with GNPA of 0.09% as on June 2022. Satin Finserv Limited, our MSME arm, reached an AUM of INR 176 crore with three consecutive profitable years. Business correspondence services under Taraashna Financial Services Limited has reached an AUM of INR 674 crore as of June 30th, 2022. The company operates through 155 branches and has more than INR 3.4 lakh active loan clients. To update you on amalgamation of the two wholly owned subsidiaries, Taraashna Financial Services Limited and Satin Finserv Limited, the order against the first motion application was pronounced on hearing dated May 17, 2022 by the Honorable NCLT, but the board of companies have filed joint second motion application with Honorable NCLT on May 25, 2022. The said joint second motion application was admitted by Honorable NCLT in its hearing dated July 8, 2022, and issued necessary direction of serving notices and newspaper advertisements, which are under process. With this, I would like to open the floor for questions. Thank you. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your 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 on the line of Varun Ghia from Dimensional Securities. Please go ahead. Hello. Yeah. Yeah. I wanted to know. I have two questions. One is if you could tell us about the slippages this quarter. Pardon me. Hello. Yeah. Can you repeat the question again? Yeah. I wanted to know the slippages this quarter, and secondly, if there were any interest reversals? On the slippages, as we mentioned that the new portfolio that we have created, which is representing, 70% of the portfolio that we have created from July 2021 onward, which has run on a, on, you know, one year kind of a tenure, there the PAR 1 is about 0.6%. We are confident that the new portfolio is behaving well and there's no concern. Whatever were the issues with regard to the old portfolio on moratorium on restructured book, that has already been taken care of in the result. There are no major concern on the fresh slippages. What was the second question? What is the amount of slippages this quarter? As I said, that, you know, our gross NPA has come down from 8% to, close to 4.3%. There are no major- There are no fresh slippages, and if I can give you this thing, 0.6% of, you know, the which is at par, which is PAR 1. Technically, there is no GNPA, technically from whatever we disbursed since the last one year. If you can counter that, you can probably look at that. Okay. Any interest reversal? We are doing it in line with the NHB. Wherever we are writing it off, so to that extent, interest has also been reversed. Okay. Thank you. Thank you. A reminder to the participants, anyone wishing to ask a question may please press star and one. The next question is from the line of Abhishek Agarwal from [audio distortion]. Please go ahead. Hello. Sir, my question pertaining to cost to income ratio. When we look at cost to income ratio, our cost is quite high, okay, compared to other industry peers in our same industry. How we are looking to bring it down? Because, like, specifically, talk about employee cost is quite high compared to other players with the same AUM size. In the future, how we are planning to reduce it? Secondly, on the provisioning side also, because with this kind of costly things, how our business will be profitable in the future? This is the first question. Let me give you an answer to that. You know, two things which you have to bear it in mind. One, because of the write-offs and all, our denominator has probably been flattened for the last four quarters, even for this quarter, has probably been flattened. That is the reason why when you look at it, the cost to income ratio probably is slightly higher as compared to what it was. That's point number one. The second is because of the COVID pandemic and whatever recovery was being done, we had to deploy additional resources now, technically who were looking at, getting money back from the PAR clients as well as from the write-off clients as well as from the other clients. That is probably also one of the reasons which has been there now with write-offs happening across to a large level and, we are just left with now a portfolio which is technically very, very clean. You know, there is collection efficiency, as we mentioned earlier in our, previous statement, which is close to about 99.0, 99.4%. I think, for us now this will start coming now and, if you really look at it because of the latest guidelines of, risk-based pricing, technically the profitability which never used to arise earlier to a, maybe to a lower extent because of the margin gap being there, I think that has been freed up. That will also look at in a positive way of enhancing our profitability in the future as well as in this quarter. Sir, can you particularly guide about your employee cost? As you said that it was one time kind of because of COVID employee cost has increased. At the AUM percentage, what percentage we can take as employee cost? I don't have a reference on the employee cost, whatever it is, but I think if we only look at numbers, how we can probably bring it down. My own sense is I think that out of the total, you know, OpEx of, close to about whatever it is, about 6-7%, I think 70% is the employee cost. You know, I think, that is what we, and that is what the entire industry probably works on. That will probably be the same for us also, you know. Okay, sir. Second question, like, in the next four-five years, what the AUM size we are targeting? Because, we have already a pan-India presence right now, which were earlier five-six years back, we are mainly catered UP and Bihar, but now we have the pan-India presence. So how we are looking to shape our AUM size in next five years? You know, what we are looking at is about a 25% growth year-on-year for the next five years. That is what our benchmark is, and that is what we will achieve. Going forward, because of the pan-India presence and all these things which are put together, I think, for us, achieving 25% is not something which is impossible. That is what we are looking at, including this contribution. Okay, sir. My last question, we have allotted some equity to some new PE fund, okay. So are they only financing business or they will take some board seat or how it is? That is something which is probably, not there then it's not in public. You know, right now there's no board seat technically. The warrants have to get converted and I think, you know, when they come in, I think, we'll get that one. In future it will be possible that they will take some seat? I can't comment on that right now. Okay, sir. That's from my end. Thanks a lot. Thank you. Thank you. The next question is from the line of Rajiv Mehta from YES Securities. Please go ahead. Yeah, sir. Hi, good morning. Am I audible? Yeah. Rajiv. Sir, a few questions from my side. Firstly, sir, if you can share the PAR 0 number because we have done good amount of write-offs in this quarter and we know the reduction in gross NPA. Overall PAR 0, how should we look at the movement between two quarters? Have you seen any reduction in the intermediate buckets because of better collections? If you can just give that flavor. Rajiv, the PAR 0 for last quarter was 9.54%, and this quarter is 9.2%. It has slightly reduced. Okay. The PAR 30 is around 7%. Okay. When I look at our disbursement in the first quarter, we have done really well in terms of disbursing a significant amount of volumes, and we had this implementation also of the new guidelines kicking in from April 1st. So I mean, was it not leading to any significant changes for us in the systems and we were able to kind of navigate that more smoothly as compared to others? Because when I reflect on other players, you know, disbursement activity in the first half, they would have done much lesser disbursement or their momentum would have slowed down significantly. But for us, that has largely continued. Rajiv, frankly, I will not be able to comment on the other players of ours, you know. We were very upfront the moment the guidelines had kicked in. You know, our process policy team as well as the IT team was set in motion and we had fixed up our target that we will not lose business technically because of this. Thankfully so that we were able to disburse within a couple of days. You know, the moment, this came there in our LMS, and also I think, we've always taken and as we said earlier, we've got a very strong process as well as a technology team. Yes. I would like to give it to our team, basically to have done it in probably the shortest period of time. Sir, any changes in rejection rate? Because I don't see, since the disbursement rate has continued, so there was no major change in the rejection rate after the process change and before the process change? No, the rejection rates have increased. They have increased by about 5%-7%. They are higher now. But you know, we are sourcing more in terms of to have maybe the 25% growth which you're talking about for this year. That is on track, you know, for us. Correct. Sir, pricing related changes. Whatever price increase we would have taken, just to recollect, we would have taken what? 1.5%-2% price increase and would that be uniformly applied to all geographies and all customers or there is some differentiation? No, there's no differentiation. The same is applied to all the geographies basically and that came in from April onwards. Right. What was the lift in pricing that we took? Sorry? What was the increase in price that we took? Up to 2%. Okay. Got it. Okay. Sir, with regards to our restructured accounts of INR 580 crore and then we also have NPLs of INR 220-INR 270 odd crore. I'm sure there will be an overlap here also because a lot of restructured would have, flown to NPL buckets in the recent months because of non-payment. What is that overlapping pool, a year? Technically, what we are tracking, you know, which is probably the stressed asset, which is a restructured pool of INR 584. Correct. Rajiv, you know, we are working on that. As we mentioned earlier that, you know, the 70%-72% collection efficiency is still there. Though we overprovided, basically, to be very, very frank, you know, and we wanted to insulate our P&L basically. That's the reason why we've stepped up our provisioning to a large extent. Our sense is once this pool, because this got restructured last September. Right. By September, we'll probably have a year ahead. You know, we could have probably, also, not been able to really look at it, from that angle. The moment one year, passes by September, we'll have a fair idea. That is the reason why we were able to build up that provision, and, insulate our P&L. That is where it is, as things stand. Rest of the other things are probably going as normal, as I told you. A new asset class is absolutely fine. Correct. With probably no GNPA coming in. Our sense is t he pain is over. We have adequately provided as an institution. We've brought our GNPAs down. We are profitable. I think, whatever we possibly could do, we have done it in this quarter. Correct. You mean that if the current collection efficiency holds up, then we may not require more provisions in the coming quarters? You are right. W e probably would be able to release provision, in fact not build in more provision. That is the positive, which we have been trying to let people understand. That would be because a lot of, a bulk of the customer pool in restructured asset and even right now in NPL after write-off must be paying, right? Because we used to typically give that breakup between paying and not paying. You know, we've taken a flat just saying that about 73%-75% are paying and let's say about 25% would be irregular in paying. Correct. I'm not saying that they are not paying, they would be irregular in paying, you know. They probably would remain in NPA for some point of time and after a certain time may also probably be, come down to PAR 0 once their, demands and everything finish off. Right. Sir, just lastly on Assam. Sorry, Rajiv. Then one more thing, you know. Yeah. 50% of the gross NPAs are from Assam. You know that, as of today, there's all the, so to speak, probability that money will come from government slightly early, slightly late. That is also to be kept in mind that, you know, 50% of the growth is from Assam. Yeah, exactly. Rajiv, if you really look at the complete picture as such, including 2% of Assam, which is there, we hope that the money will, which the signs are that the money will come from the state government. Technically, we don't have. Practically, we have huge provision now, which is about 180% of our own book, whatever the NPLs are, you know. If you really look at it is all positive down from here, which has been captured, in the results of this quarter. Correct. Sir, I have a few more questions. I mean, if there is a queue, I'll come back or else I can continue, if you permit. No, please go ahead. Yeah, Rajiv. Yeah, o kay. Thank you. On this Assam situation, I know it's a very small part of our portfolio, but in the last couple of weeks, have you seen any major improvement in collections in Assam, and when do you think can it fully normalize? Yeah. Just to give you an update, so whatever we've disbursed again in Assam, we've started disbursing about six months back. That portfolio is behaving absolutely fine. Okay. What happened is for people who were under stress, because of the government, whatever the Assam thing has been going on. There has been improvement, though it has been slight. I can just probably, you know, I don't have benchmark numbers as such, but it was over 5%-10% increase in the collection efficiency even for the Assam portfolio also over there. Probably goes on. We're just waiting for, you know, once whatever has been decided by the state government and everything, once that starts releasing. Yeah, yeah. I think, probably we'll have Assam windfall also coming in. Yeah. Sir, more specifically, I was wanting more color in the recent weeks because we had m ajor floods in May, and in June. July was a stabilization month. Maybe towards the second half of July, have we seen improvement? There has been no disruption in terms of floods. That is very key. There has been no disruption because of floods in Assam. Okay, great. Great. Sir, in terms of liquidity, now that we had to kind of address the stress in the book and we took upfront provisions, and which led to a loss. First quarter, we started off with a meaningful loss in the book. Would it kind of impact liquidity availability for growth? While we would want to grow at 20%-25%, but with this loss, do you anticipate some kind of, you know, moderation of liquidity availability or, I mean, otherwise I think the decision was taken, taking the lenders into confidence and the liquidity should then come through. Rajiv, when you talk of loss, which loss are you talking about? The consolidated loss? Yeah, consolidated. Yeah. Consolidation has no bearing. Let me give you a perspective. I think, you know, Jugal will give you a very clean perspective about it. Mm-hmm. People have really not been able to understand because I think you are also mentioning a loss. There's no loss as such. E ven if we take out the unrealized gains through the fair value of the investment. Let Jugal clarify this to you with numbers. Sure, sure. Yeah. Sir, Rajiv, there are two things that I think everybody should understand. One, that the valuation gain that we have booked is not theoretical, it is actual valuation gain. We have been investing into these businesses for last three, four years. Slowly we have invested that money. Then we have not specifically raised money to invest into subsidiary. That money has gone out of our borrowed funds towards equity. You know, the approximate cost of funding that we have invested into subsidiary over a period of time is close to INR 100 crore on cost. In case we take it on lending basis, it is almost double. You know, INR 100 crore as cost and INR 200 crore on revenue side has impacted our PNL for the last three, four years, which is purely accounting. On the other side, we have actually created value in those businesses. To that extent, the value that we have created, we have accounted for that to show the real picture as to what the actual financials are. If we are talking about standalone financials, there is a INR 70 crore PBT, INR 69 crore PBT and INR 60 crore of PAT,, which is not theoretical. On a consolidated basis also, you know, that value has been created, though because of the accounting standard we cannot reflect it there. That is the one point that, you should be convinced that this is the actual profit which is being accounted for, technically for this financial and financials. On the other side, in case we eliminate both the credit cost and the valuation gain, we are still operating Into profit, you know, close to about INR 45 odd crore of profit. Operational profit is there in case we eliminate both the valuation gain and this, 5% of loss. There's no loss as such. The value that we have created, we have brought it onto record to show a right picture. Correct. Jugal, how frequently we'll keep on revaluing the investments in subsidiaries? This was the first time we did to reflect the fair value of our investment. Would this be an annual phenomenon? How do we go about, taking incremental, you know, up or down in the value in the P&L going forward? We are still in the process of discussing it with the auditor. As per standard, it has to be done on every reporting date. But we are still in the process of finalizing that, unless there is a meaningful up or down, should we do it at every reporting date once a year and on? We'll have more clarity by the end of next quarter. Got it. I think sir spoke about 35% growth. Sir, even in this year, are we looking at 25%-30% growth, FY 2023? Yes, sir. Okay. If that comes through, would we require capital by the end of the year? I don't think so. I think, you know, we are profitable technically. The other thing which we will probably have to do is the warrants have to get executed. Yeah. If required, we will probably prepone our warrants because the end date is sometime in July 2023. If required for growth, I think we'll prepone the warrants before that. Technically, we do not require any further capital. Got it. Sir, just last question about ROAs. ROAs in FY 2024 because I believe that the true franchise, e fficiencies will reflect in FY 2024 when the credit cost will normalize and when also our spare operating capacity will come into play because with growth coming, the cost will not increase, along with that. In FY 2024, what should be an ROA number that one can expect on a reasonable basis? It's all positive the way. I think if somebody reads the result truly, I think it's all been positive. My own sense is, it'll be north of about 2.75%-3%, you know, ROA, for sure. Okay. Sure, sir. T T hank you so much for answering all my questions. Thank you, Rajiv. Best of luck, sir. Yeah. Thank you so much. Thank you. A reminder to the participants, anyone wishing to ask a question may please press star and one. The next question is from the line of Vishwanath Singh, an investor. Please go ahead. My question is basically just wanted to know, can you shed some light on the INR 5,000 crore funding which you recently mentioned? How is this going to be utilized? Specifically, now that you have subsidiaries also, right? Can you also give us the breakup? Like, if you're going to raise INR 5,000 crores, how are you going to utilize and what exactly would be invested in the subsidiaries? You know, that is an enabling resolution that, w hatever money we borrow, and then, whatever money we want to borrow through NCD route, we need to have an annual approval from the shareholders. That was more like an enabling resolution that we want shareholders to pass that. You know, that is the same amount. At no point in time our outstanding NCD can go beyond INR 5,000 crore as on today. So that is more like an enabling resolution that we have to pass every year at the shareholders meeting. But to achieve this year's budget, we have to raise close to about INR 6,500 crore of money. We have already raised INR 1,300 odd crore in the first quarter and have received another, INR 500 odd crore till date for first quarter. We are on track and then sitting on INR 1,000 crore liquidity. On track to raise the money to achieve our this year's budget. Okay. Also within subsidiaries, I think, I mean, as an investor, we are expecting more from the Satin Housing Finance because as we understand there is a lot of scope of growth from this business. Can you shed some light on, I mean, what is the expected growth in terms of percentage, in terms of AUM, which we can expect, by the end of this year or maybe for next two years? How much growth do we expect in the Satin Housing Finance loan book? Housing, has been growing at about 50-odd% year-on-year. Our sense is I think they will continue to do that in the next couple of years too, you know, about 50%-60% growth because the base has been small. That will keep on continuing. I think, whatever we require in terms of capital for them, I think, we'll be able to put it across to the parent company. Okay. You like mentioned 50%. I mean, just by tracking the financials or the numbers for the competitors, I think as the portfolio where we stand, right, shouldn't we expect like 100% growth year-on-year? Or is it that we are being more conservative just to see how the market goes, and then go for the full. You're talking about housing? In housing? Yeah. Specifically for housing finance. Yeah. Correct. See, we've always been very prudent and conservative in how we go forward because you never know when crisis do arise and everything. Thankfully during this crisis, since we had built up a very solid portfolio in housing, we had 100% collection efficiency. There was absolutely no collection efficiency going down or GNPA coming in. I think, that is probably the pure reason why, yeah, I think housing has been one of our stars and which reflects in the valuation which we've done. I think, going forward, we would like to have more stress on portfolio quality rather than looking at, numbers. You know, numbers we'll achieve in any which ways. Maybe two years hence or maybe one year hence. Portfolio quality is probably the best thing which we want to really look at across all the industries as well as the parent company. Correct. Like 50% which you mentioned, I mean, it's on the conservative side, right? I mean, we can- Well you can interpret it any which way. No. I mean, just wanted to like I mean, so you're saying it's a reasonable 50% growth which we can expect or it's the maximum growth which Yeah. 50% is something which will happen definitely. I think any, say more than that, I think, you win on that, and I lose on that. No, I mean, as an investor, I mean, I have high hopes from Satin Housing Finance because I've been tracking this business closely and I see a lot of potential in the next few years. I was particularly interested in how we are trying to drive the growth for this positive growth. Hopefully we won't let you down. I think, that probably can be seen in the valuation which has probably come in. I think, it'll definitely be very good. Definitely. All the best for the future, sir. Thank you so much for answering. Thank you so much. Thank you. The next question is from the line of Ronak Sanghvi, a retail investor. Please go ahead. Hi. Good morning. Good morning, sir. Good morning, everyone. Morning. I had most of my questions answered in your conversation with Rajiv Mehta from YES Securities, but I have a few other questions. One is on this fair value revaluation which we have done or valuation we have done. From a regulatory and lender's perspective, will they sort of look at from a positive perspective in terms of increase in net worth? Because otherwise, adjusted net worth has come down considerably due to the write-offs and the INR 328 crore of provisioning which you had taken in the current quarter. That is an important point which I just wanted to understand. You know, our understanding is that the regulation permits that, and as I explained in reply to Rajiv's question that this is the actual valuation that we have created and because of accounting, the notional cost of that fund that we have invested is close to about INR 100 crore on cost and INR 200 crore on revenue side. Unless we do this kind of accounting, we'll continue to have negative carry in the standalone financials, and then to that extent, the standalone numbers will always be understated. T hen we have tried to explain that in our investor presentation and then we'll communicate and explain that to all the stakeholders that this is the right way of looking at the performance of the company, both on standalone and consolidated basis. The value has actually been created, and we want to scale up these subsidiaries out of our own resources for some more time. We feel that this is the right approach to do the accounting. We don't see any change from, lender side or regulator. We will explain that we have discussed it with the auditor and then taken all the, financial help to reach at these conclusions. We'll be able to communicate that to all the stakeholders for this reason. Sure. Thank you. Just also wanted to understand the write-offs of INR 275 crores and ARC sale of INR 100 crores this year, which is like close to INR 375 crores was being taken off the book from practically. So just wanted to understand on the INR 375 crores, how much has been from the restructured book, or these are all from the GNPA? I think, t he restructured book out of this INR 375 was close to about INR 225. About INR 225 crores basically. Okay. Because I was seeing that the slippages in the quarter from primarily from the restructured book would be then around a net of INR 180 crore and some 40, some 45 crore would have sort of come back. I'm just doing the basic math from INR 217 crore. Yeah, exactly. That is what the real math, you know, works out to be, right now, basically. The pre-provisioning operating profit, and I'm just talking about operating profit because in the press release, the pre-provision operating profit income also includes the fair value. It is obviously not an operating profit per se. It's coming at around INR 47 crore. Is my math correct there? Broadly, yes. You know, our PBT is about INR 70 crore. If we exclude both the fair valuation of INR 351 crore and credit cost of INR 324 crore, so this number is close to about INR 45-INR 47 crore. Your understanding is correct about this change. Okay. Yeah. Thank you. Thank you very much. Yeah. I think just to add up, basically, I think, when you look at these numbers, I think, this is what, we mentioned it to Rajiv and to you also, I think. This is exactly what it is, you know. Technically, it's not an operational loss. It's an operational profit of about INR 45 crores, practically, pre-operating profit of about INR 45 crores. Where people do understand that it's an operational loss, it's not that. Yeah. Thank you very much. Thank you, sir. All the best. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Ms. Aditi Singh, Head Strategy for closing comments. Good morning, everyone. I take this opportunity to thank everyone for joining this call. It was a very intense call, and I hope we've been able to address all your queries and explain everything to your satisfaction. However, should you still need some more information, you can reach out to me. My name is Aditi Singh and I head the strategy for Satin Creditcare. You can also reach out to my colleague, Ms. Shweta Bansal, DGM Investor Relations, and we shall be able to provide you with whatever information we shall be able to within the permitted limits. Any clarification you want, we're happy to discuss. Stay healthy, stay safe. Have a great day. Bye-bye. Thank you. Ladies and gentlemen, on behalf of Satin Creditcare Network Limited, that concludes this conference call. We thank you for joining us and you may now disconnect.