SHRIRAMFIN — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
Moderator · Conference Operator
Ladies and gentlemen, good morning, and welcome to Shriram Finance Limited Q3 FY '23
Questions and answers
Moderator · Conference Operator
The first question is from the line of Shubhranshu Mishra from PhillipCapital.
Shubhranshu Mishra
Just quickly, if you can give out the disbursements as per product?
And sincere request if it can be part of the presentation going forward, sir.
It will be slightly easier because we have so many products now.
That's the only question I have.
S. Sunder
Okay.
The disbursement for the quarter is Rs.
29,245 crores and as against the previous Q2 number of Rs.
25,789 crores.
And coming to the segment-wise, the commercial vehicle segment, we had done Rs.
11,750 crores.
The passenger vehicle was Rs.
5,057 crores, construction equipment was Rs.
1,808 crores, farm equipment Rs.
527 crores, MSME was Rs.
2,870 crores, two-wheeler Rs.
3,230 crores, gold loans Rs.
2,131 crores and personal loans contributed to Rs.
1,842 crores and others around Rs.
17 crores.
So this is the broad breakup of the segment wise disbursements, and we will definitely take your suggestion and then try to incorporate the same in the future presentation.
Thanks.
Shubhranshu Mishra
Within CV, sir, what is used and new, sir?
S. Sunder
It will be roughly, say, around 10% will be new and the balance will be used.
Moderator · Conference Operator
We have the next question from the line of Nischint from Kotak Mutual Fund.
Nischint
This is Nischint, from Kotak Securities.
Just one question to Parag.
What gives you confidence that cost of borrowing will not increase next quarter?
You mentioned that we are at 8.4% and it will not go up from this quarter?
Parag Sharma
Nischint, I said, it is 8.77%.
Currently, whatever we are borrowing is at much lower level.
We are borrowing at between 8.5% to 8.6%.
So I don't expect the cost to go up.
It can only come down.
We did repay some of the high-cost debt in the month of October end, towards October end.
So I don't expect, because incremental cost is lower than the on-balance sheet cost as of now, that is the reason I am confident that it will not go up for this quarter.
Shriram Finance Limited February 01, 2023
Nischint Chawathe
No, but I would assume that some of the bank borrowing, as you would see...
Parag Sharma
Bank borrowing is happening, Nischint, at the rate of around 8.5% to 8.65% range only, nothing beyond that.
And overall liability cost is around 8.77%.
That is why I'm confident it will not go up.
Nischint Chawathe
No, I understand that, but I'm saying that some of the bank borrowings that you're currently having, let's say, if something is like at this point of time, let's say, 7.5% or 7.7%, when it -- and I believe this is one year before repricing.
So when it comes to repricing maybe next month or two, three months down the line, then it probably gets repriced at a higher rate, depending on what has been the rise in MCLR in the last 12 months?
Parag Sharma
Yes.
So there is nothing called annual repricing, when it comes to the large borrowing which is from public sector banks, that is all MCLR-linked.
And there was nothing, at around 7% level there is no borrowing.
All the borrowings stood at around, MCLR at that point of time will be around 8% to 8.25% only.
So I don't expect there will be a major change.
We do expect to increase our securitization volumes.
We do expect to increase our bond offerings.
And even bonds what we are currently borrowing at are not at the levels which is the balance sheet cost as of now.
That is why I'm confident about cost not going up.
Nischint Chawathe
Can you just remind last quarter, I mean, we can -- maybe let's look at standalone Shriram Transport, what would have been the cost of borrowing as against to 8.77%?
Parag Sharma
The incremental was around 8.25% to 8.30% only.
Nischint Chawathe
Outstanding, if you are at 8.77% in December.
Parag Sharma
Yes, that includes Shriram City Union liabilities also.
And also, whatever we have borrowed from the offshore, everything included was 8.77%.
But incremental what we have borrowed is between 8.25% to 8.30% range only.
That is why I'm saying it will not go up.
Nischint Chawathe
And outstanding last quarter only for standalone Shriram Transport would be how much?
Parag Sharma
That was at around 8.5%.
8.54% is what we reported for the September quarter.
Moderator · Conference Operator
The next question is from the line of Mahrukh Adajania from Nuvama Wealth Management.
Mahrukh Adajania
So what is the quantum of one-off in operating expenses?
S. Sunder
This quarter, there was no one-off.
The one-off was in the previous quarter of Rs.
65 crores, which was on account of write-off of the earlier litigations regarding the sales tax.
There was an amnesty scheme launched by certain state governments, and we had availed of it.
And whatever was the amount payable, we had paid and written-off in the books of accounts.
That amounted to Rs.
65 crores in the previous quarter.
And that was a one-off.
Current quarter, there is nothing to this.
Shriram Finance Limited February 01, 2023
Mahrukh Adajania
And the merger-related expenses, have they come in opex?
S. Sunder
Yes.
The expense related to merger is around INR 19 crores, and it will be deferred over a period of five years.
And whatever is pertaining to the current quarter has already been factored and it's not significant compared to our size of the expenses.
Mahrukh Adajania
So it will be deferred over five years?
S. Sunder
Yes, correct.
Mahrukh Adajania
Over every quarter, okay.
And then just in terms of credit cost, so this is where it settles, is it?
The Q3 level, is that where it settles now?
Or how do we look at it going ahead?
S. Sunder
We have been -- yes.
Umesh Revankar
The credit cost, we always have given an indication that it will be around at 2%.
So this current year, it is 1.94% as of -- for the nine months period.
And we should be around 2% at any point of time, which is our long-term history if you go up 10 years back and also forward-looking also we have always been indicating that it will be around 2% credit cost.
Mahrukh Adajania
And when you expense the intangibles of Rs.
100 crores every month, is it tax deductible or it's not?
S. Sunder
The intangibles we will be adjusting for impairment.
And it's most likely that it will come maybe after a couple of years only, not before that.
That is what is our estimation, but it's up to the independent valuer to take a call, but we'll be testing for impairment every year-end.
Mahrukh Adajania
But whatever is written-off through P&L or expense there, is that tax deductible or not?
S. Sunder
The goodwill is not tax deductible, but the intangibles, yes, it is tax deductible.
Moderator · Conference Operator
The next question is from the line of Param Subramanian from Macquarie.
Param Subramanian
So my first question was on understanding this NII that you've reported on the merged basis, so if I just do an addition of the 2Q NII of Shriram Transport and Shriram City Union and compare with what you have reported for pro forma, there's a gap of -- or an incremental addition of about Rs.
180 crores.
So could you explain what exactly is giving this delta?
S. Sunder
See, as I telling you in the opening remarks that as per the accounting standard, on merger, we have done some fair valuation of the liabilities, the loans that we have borrowed as well as loans that we have given.
And roughly around Rs.
1,000 crores is the fair value that we have taken a hit at the time of, in the opening balance sheet.
And the benefit will come over a period of three years; maximum will come in the current year.
That's what we were indicating that it will be around INR 100 crores per quarter will be the addition to the NII in the next couple of quarters, three, four quarters, at least.
Then it will come down.
Shriram Finance Limited February 01, 2023
Param Subramanian
Rs.
100 crores per quarter for the next three, four quarters?
S. Sunder
Correct.
Yes.
Param Subramanian
You said it is a hit to the balance sheet, so how is it giving you credit on the P&L?
S. Sunder
No, it is a credit to P&L and opening balance, we have taken a hit.
It is adjusted against the reserves.
Param Subramanian
And what is the corresponding impact on net worth?
Because even if I do a net worth comparison even adjusting for goodwill, is it also added to your net worth, this...
S. Sunder
See, the net worth, if you see the standalone STFC and standalone SCUF, as on 31st March and add your current nine months profit minus dividend what we already paid, and there will be difference of around INR 2,800 crores is on account of the goodwill and intangibles that we have created, which is kept as an asset.
That is the difference.
Param Subramanian
So goodwill is 1,400 and the remaining 1,400 is also...
S. Sunder
1,300 is the goodwill and 1,500 is the intangibles.
And these primarily have been bifurcated to get a benefit of tax claim at least as far as this is concerned.
And it is supported by independent valuer’s assessment and all those things.
And the charge to P&L may happen maybe after the next couple of years, not before that.
Param Subramanian
Sir, if I can just ask, so considering the one offs you are seeing post-merger in the P&L currently, so what is the sustainable level of RoA and RoE.
This time, you are reporting 3.4% RoA, but what is on a sustainable basis, what do you think where should these numbers stand?
Umesh Revankar
RoA is 3% on a long-term basis, and RoE will be anywhere between 16% to 18%, depending upon the environment.
Moderator · Conference Operator
The next question is from the line of Umang Shah from Kotak Mahindra AMC.
Umang Shah
Congratulations on a good quarter and the merger.
Sir, a couple of questions.
One is on the merger-related expenses, just wanted to reconfirm the expenses which you mentioned were just about Rs.
19-odd crores, is it?
S. Sunder
Yes, Rs.
19 crores.
Umang Shah
And if I recall correctly, initially when the merger was announced, we were anticipating some merger-related costs to the tune of about anywhere between Rs.
200 crores to Rs.300-odd crores.
Does that still stand or has that number got on revised downwards?
S. Sunder
When we announced the merger at that time, there was a likelihood of an amendment in the Stamp Duty Act in Tamil Nadu.
And foreseeing that we had indicated that it will be around 200 crores to INR 300 crores.
However, as on date also the amendment has not taken place.
And Shriram Finance Limited February 01, 2023 since our merger is already in place, so there's unlikely that there will be a retrospective impact of the same.
And hence, the management is confident that no further expenses on account of stamp duty is applicable to the company.
Umang Shah
Sir, the other question was on the growth outlook.
And ideally, how should we now look at our AUM mix shaping up progressively maybe a year or two years out from here.
Should we assume that the share of vehicle finance business gradually just keeps coming off in the overall mix?
Or how should we look at it?
And what's broadly the growth outlook over the next 12 to 18 months?
Umesh Revankar
See, the overall AUM growth, which we had earlier indicated of 15% CAGR growth should continue is what we feel very confidently because Indian economy is growing.
And with this growth, 15% CAGR growth is a possibility.
We are leaders in commercial vehicle and two- wheeler.
So our leadership will continue to remain.
We are trying to reach out for SME business in the geographies which we have not been servicing till now.
Earlier, the SME lending was focused mostly in the South and Western part.
Rest of India, even though there is enough growth opportunity in the SME business, especially large states like UP, MP, Rajasthan and Punjab, Haryana, we had not been doing much.
So with that network being available today across and having the experience and the expertise of both customers and the expertise of doing SME business in the Southern part, Southern and Western part, we would be expanding it.
There may not be a significant shift in overall ratios, but slowly and steadily, SME growth will be much faster than the CV and two-wheeler is what we feel.
So it may not alter immediately in two years, but over the 10 years, you can expect because SME industry is so large and ability to reach out to these sectors and segments through the branch network is possible.
So next two years, there may not be a big change, marginal change.
But over the 10 years, there will be a significant change.
Umang Shah
And on the cost to income, just to reconfirm, in our opening comments, we mentioned that the steady state cost-to-income ratio should be close to about 22%, 23%-odd.
Did I hear that right?
Currently, we are at about 26%, 27%-odd?
Umesh Revankar
Yes, we had earlier said 26%, but this quarter, it has been 22.45%, but in the long run, it will be 24%, 25%.
Umang Shah
And just last one.
On the housing finance side, now that the merger is behind us, how should we look at it?
Will that continue to operate as a wholly owned subsidiary or at some point of time, we look at some value unlocking happening in via that subsidiary or a separate listing something, any plans on that front?
Umesh Revankar
No such plans.
It will continue to run as a wholly owned subsidiary.
S. Sunder
So it is not wholly owned, it is 85% stake is with SFL.
Umesh Revankar
Yes, 85%, right.
Shriram Finance Limited February 01, 2023
Moderator · Conference Operator
The next question is from the line of Shweta from Elara Capital.
Shweta
Congratulations on great quarter.
Sir, what cross-sell opportunities across products do you think that you can derive from the synergistic benefit due to merger?
Umesh Revankar
Okay.
See, we have the two businesses, if you look at, the Shriram City Union businesses, they were mostly in the south and western part.
They did not have reach across the country.
Now with Shriram Transport branch and the experience in these geographies being available, you would be able to take the Shriram City Union product across all the geographies.
So that loan products get expanded in the both sides.
Even in Shriram City Union branches, you will be able to offer CV and construction equipment, on agriculture equipment lending.
So we'll be expanding the loan product across all branches and all products depending upon the potential in each of the geographies.
So that is the synergy benefit.
Additionally, since we have a large customer base, we would be able to cross-sell insurance and other investment products.
Apart from sourcing deposits, we would be able to cross-sell insurance and other investment products.
That will give us additional fee income.
So that is the total synergy.
Moderator · Conference Operator
The next question is from the line of Abhijit Tibrewal from Motilal Oswal Financial Services.
Abhijit Tibrewal
Sir, again, just going back to the merger-related opex, merger-related expenses.
I was going through the call that we had hosted at the time when we announced the merger.
That point in time, our expectation was including the stamp duty cost which is not there, something around Rs.
350 crores.
So I mean, is it that, I mean, merger-related expenses have actually come in much lower than what we anticipated?
You already said that we are not required to pay that stamp duty that we anticipated of about Rs.
190 crores, Rs.
200 crores.
But other than that, I think we talked about HR integration cost of about Rs.
60 crores, Rs.
70 crores, branding and advertisement cost of about Rs.
70 crores.
So those expenses are not really coming or I mean, they are being capitalized now and they will be expensed over the next two years?
S. Sunder
When we guided one year back, we had expected a high stamp duty expenses which not there now, as I had mentioned to the previous caller.
When it comes to the other expenses, the Rs.
19 crores that we are talking about is the advisors and immediate merger-related expenses, which has been deferred over a period of five years.
And the advertisement and other charges will be on ongoing thing, which will be debited to the P&L as and when it is incurred.
And the cost of advertising, which we had guided maybe around Rs.
50 crores to Rs.
100 crores, will be happening over a period of time, and it has not already happened.
Abhijit Tibrewal
And your guidance of 24%, 25% cost-to-income ratio takes that into account?
S. Sunder
Yes, it takes into account.
Yes.
Abhijit Tibrewal; And sir, just one more question here.
Just wanted to understand, I mean though it's one merged entity now, the branding is Shriram Finance.
But wanted to understand, there are still employees who are part of either Shriram Transport or Shriram City and who are maybe people who Shriram Finance Limited February 01, 2023 understood the respective products a whole lot better.
So I mean, what incentives have been put in place to kind of drive this cross-selling?
Umesh Revankar
See, incentive programs are, our business model, if you look at all our field and branch team is where the variable component is quite high.
So both in Shriram Transport and Shriram City Union business model, that was factored in, and that's how we have been functioning.
So same thing is continuing.
The incentives would be given for own product and also in cross-selling products, whether it is insurance or whether it is investment product tomorrow or whether it is a multiproduct today, the variable component will continue to play a major role in our business model.
Moderator · Conference Operator
The next question is from the line of Uday Pai from Investec.
Uday Pai
Can you quantify the amount of interest expense saved on account of buyback done in October?
S. Sunder
Okay.
We don't have the number right now.
You can just touch this with Mr. Mundra.
He will help you out offline.
Moderator; The next question is from the line of Rahul Jain from Goldman Sachs.
Rahul Jain
Just two or three questions.
Number one, on this cross-selling bit, can you give us an indicative sense as to how the loan book would look like a couple of years down the line?
Would it be, would the CV proportion come down over a period of time as the other products we cross-sell to other customers?
Umesh Revankar
Rahul, I think I just answered it just five, 10 minutes before, See, we are leaders in CV and two- wheelers.
So there, it will not change much.
Overall ratio will remain.
The SME focus, we will increase because SME business, which we are mostly doing in the southern part, we'll be taking to the rest of India.
And scope and opportunity to grow will be faster.
So we may grow there at around 20%, 25%, where in other businesses, we may still grow at 14%, 15%.
So it will not...
Rahul Jain
The other question was on goodwill.
So over how many years will this goodwill need to be written-off?
S. Sunder
Goodwill will be tested for impairment by an independent valuer and basis that it will be provided.
But the management feels that at least for the next two years, there will not be any impairment on this count.
Rahul Jain
The other question was on cost of funds in Shriram City Union.
Would there be any benefit if there's any rating upgrade.
I mean, of course, now you'll borrow in Shriram Transport, but the incremental borrowing should be a lot lower on that portfolio also, right, as you do disbursals in the Shriram City Union portfolio, how much benefit can we get out of that?
Shriram Finance Limited February 01, 2023
Parag Sharma
Shriram City Union was AA, and now the labilities will get repriced to AA+ level.
So there should be 25 to 30 basis point benefit, which will come out of repricing of Shriram City Union liabilities.
Rahul Jain
And then that's the reason why next year, you're saying cost of funds would not increase much.
I mean some benefit will come from here as well.
Is that a fair insight?
Parag Sharma
I said for the March quarter, it will not go up.
But if RBI increases rate, that has to be adjusted for next year.
But this quarter, it won't be up.
Rahul Jain
Just a last question in terms of the fair value that you were talking about earlier.
Can you explain how do you arrive at this?
Is there an element of NPV calculation also that goes in there and that's why you had to sort of adjust the book by INR 1,000 crores or there is something else?
S. Sunder
See, the last quarter that is March quarter of '22, whatever was the loans disbursal and liabilities mobilized, the benchmark rate is considered, and it is restated for the earlier entire book.
And basis that, based on the NPV calculation, the fair valuation arrived.
Moderator · Conference Operator
The next question is from the line of Ankur Jain, an Individual Investor.
Ankur Jain
I have a question on capital allocation.
So Shriram Finance has paid an interim dividend of Rs.
15.
And in the past, both Shriram Transport and Shriram City Union have given healthy dividends.
So my question is, has the management thought about the idea of doing a buyback with some part of the money, which could be more beneficial to the shareholders?
Umesh Revankar
See, finance companies or banks normally don't do any buybacks because the capital is always required in the business.
Ankur Jain
Even with the large amounts that you are paying, which are not required because ultimately, they have been paid to the shareholders?
Umesh Revankar
So dividend is an expectation.
There are some shareholders who are invested for a steady dividend.
So that is a different aspect altogether.
So rewarding shareholders continuously with good dividend is part of a good governance and also appreciating the shareholders, that's all.
Moderator · Conference Operator
The next question is from the line of Chandrasekhar Sridhar from Fidelity International.
Chandrasekhar Sridhar
I have a few questions.
Parag, just how do you think of liquidity right now?
So as I see, I think, on the merged entity also the excess liquidity has actually stayed constant as you've moved on and you actually cut it by one month.
How do you see that over, on a sustainable basis, one?
Secondly, Shriram City Union had a liability duration, which had extended pretty reasonably over the last few years, longer, much longer than the asset duration.
Now that we are working on a merged entity, how do you just think on liability durations given we have a merged balance sheet?
For Mr. Sunder, I have a couple of questions.
One is, even if I understand the fair Shriram Finance Limited February 01, 2023 valuation, but if I look at the GNPLs also on a combined basis, I mean, the pro forma numbers in the GNPLs also, there's a difference of 40, 50 bps. So what would explain the differential in the GNPLs?
And for Mr. Ravi, just in Shriram Housing, was there any portfolio buyout done during the quarter?
Parag Sharma
On liquidity, we always had a stated policy of maintaining three months of liability repayment as a liquidity buffer, which we enhanced during the COVID period to six months.
Now we are at around five months, but I think, we'll continue with the liquidity buffer of Rs.
17,000 crores until the March quarter and then based on market scenario, we will look at diluting it or continue to maintain slightly higher liquidity.
But as of now, until March quarter, I think we'll continue to have Rs.
17,000 crores of liquidity.
When it comes to duration, I think duration in Shriram Transport also, the assets is not longer, that is, used vehicle is typically three to four years.
So there's not too much of duration difference which comes because of Shriram City.
And Shriram Transport also, the liability was longer than the assets.
So that doesn't change.
Sunder?
S. Sunder
Yes.
Coming to the Gross Stage 3 numbers.
If you recollect, the AUM of Shriram City Union Finance around 31, March was Rs.
33,000 crores, and they were carrying an ECL provision of close to -- slightly more than Rs.
2,000 crores.
So net Rs.
31,000 crores was acquired by Shriram Transport by way of the merger transaction.
And this Rs.
31,000 crores was accounted as a loan outstanding from the customer.
And hence, this amount is added to the Gross Stage 3.
And you would find that the normalized, if you take one plus one, had it been taken at a gross level of Rs.
33,000 crores, the NPA would have been at around 25 bps higher than what we are reporting.
And that explains the reduced number of the gross stage 3 of 6.29% in the current quarter.
The same thing has been restated in the previous quarters also.
Ravi Subramanian
And on the housing finance side, out of Rs.
1,000 crores gross disbursement, we've,the bought out portfolio was about Rs.
6 crores, hardly anything.
Chandrasekhar Sridhar
Sure.
Maybe if I could just follow up with a couple of more questions, Umesh, one is just how do we think of just right pricing now, how much we're charging to the insurance business on a sustainable basis.
This has stepped up like a couple of years back, but didn't seem to go anywhere after that?
What's your thoughts on that?
And second is we are still carrying the COVID provision buffer at this point in time.
Now the buffers were created in Q4 FY '20 and Q1 FY '21 and then some later.
Now obviously, the contracts are, and our understanding was they'll be utilized over a period of time once the contracts mature.
Given the duration of the book, the contract should be maturing by now, but they're still carrying a large buffer and we have utilized very little.
So what do we think of some of these provision buffers which you're carrying?
Umesh Revankar; Yes.
See, as far as the insurance is concerned, the insurance cross-sell is done to help the customers to get better claims and quicker claims.
That is the main objective.
The earnings out Shriram Finance Limited February 01, 2023 of it, the commission occurring out of the insurance, whatever is statutorily available or can be given, that we are getting from the insurance companies, both life and the general business.
So our focus has been to provide better service to customers.
For example, earlier, we used to get claims on accident at around 180 to 200 days, after 180 to 200 days, putting customer into a lot of difficulties.
By providing the insurance service now in-house, we're able to get the claim in 20 days.
So that's the benefit customer gets.
And indirectly, company benefits because of quick settlement of the claim.
So there is no NPA due to, or there's no delay due to the claim being delayed.
So that is the biggest advantage.
So the benefit will improve over the period as we penetrate more.
Today, the penetration level of insurance cross-sell is much lower, both life and general.
Once we increase it across, then benefit will get more pronounced, and then bottom line will reflect very healthy growth in the fee income.
S. Sunder
And on the COVID provisioning, we had created a provision of Rs.
2,850 crores in Shriram Transport books.
And as we have been guiding everyone that it has been allocated to the respective contracts, and as and when the contracts settle, it will be written back or charged off is what we have been indicating.
And as on 31st December, an outstanding of Rs.
1,651 crores is available in the books.
And we expect this to be cleared maybe in the next one year or so, by March '24, maximum will come out.
Chandrasekhar Sridhar
But I mean, that should actually extend beyond the contract duration, just given the duration of the book by now, that should have been flushed out, right?
It was my understanding.
S. Sunder
No. See, if you recollect, we had also given a moratorium of six months and hence, entire book was postponed by six months.
So in a normal scenario, it would have been maximum should come to an end by September '23.
So that's likely to be pushed beyond close to March '24.
So this I am saying, majority of the book, but still there can be some provision lying still.
Moderator · Conference Operator
The next follow-up question is from the line of Nischint from Kotak Securities.
Nischint
Can you share what was the absolute valuation of Shriram City considered during the merger, if you can share the number of rupees in thousand crores.
S. Sunder
Yes.
Nischint, I'll just take this question offline and give it to you.
Moderator · Conference Operator
The next follow-up question is from the line of Mahrukh Adajania from Nuvama Wealth Management.
Mahrukh Adajania
Can you please quantify the fair value gains in NII and then through other line items of the P&L in this quarter?
S. Sunder
Fair valuation gains in the current quarter?
Okay.
I'll do one thing, I'll just send it across through Sanjay, both the impact on the PAT as well as the NII.
Shriram Finance Limited February 01, 2023
Moderator · Conference Operator
Thank you.
As that was the last question for today, I would now like to hand the conference over to Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited for his closing comments.
Over to you, sir.
Umesh Revankar
Thank you.
Thank you all for joining this call.
We had a good set of numbers in this quarter.
And going forward, we feel that fourth quarter should be equally good or maybe even larger, because demand seems to be quite good in the fourth quarter.
And going forward also, we feel that post, since all merger-related integration issues are addressed, we should be able to continue to grow and do our business very comfortably and keep growing our bottom line and good progress.
Thank you, everybody.
Moderator · Conference Operator
Thank you, sir.
Ladies and gentlemen, on behalf of Shriram Finance Limited, that concludes this conference call.
Thank you for joining us, and you may now disconnect your lines.