Mgmt reply:

Some questions cannot be answered since this is confidential information and not in public domain.

Digital Lending Guidelines restricting 5% FLDG is for digital lending, for other partnerships the FLDG is restricted to 20%.

We have started doing Business Loans (Unsecured) with few of the PSU Banks, now we have CGTMSE cover for Co Lending as well.

We do not have any cash collection.

Normalized Life Time Credit Cost is around 1.25% Annualized. For more than 21 MOB we are seeing the credit cost to remain below our targeted range.

“Unsecured is 30% with GNPA of 4%, and Secured is 70% with GNPA of 1%, is the overall GNPA of 2% a decent assumption?” – Yes that is what we have designed our asset engine for.

We have a very small portion of unsecured loans in Micro segment.

Almost 95% of our business is to anchor customer in supply chain finance.

We finance the retailers associated with the Anchors so the risk on anchor is very limited, still we have program level limits on anchors.

Ticket Size – We are graduating from higher ticket vendor / Distributor financing to Dealer and Retailer Financing, whenever we onboard a new program the first level of financing happens with Distributor which is normally little higher ticket size and then they on board their retailer which granulises our portfolio.

SG Finserv, CSL – We are highly digital retailer finance which is driven by out GRO Score platform, as far as we understand these companies are still focused on their captive network and mostly vendor financing.

Number of anchors – We do not provide this data being its tracked by competition.

“In Q4 FY23 PPT, Slide 10 where you talk about Default rates across score bands – the disbursed default rate of D & E is higher than not-disbursed A and B. So why even disburse to D and E? You can disburse to only A, B and C?”
Some time in D & E Band the score deterioration is due to wrong reporting where as the data is verified and curated thus making customer eligible and also it is a function of price + collateral as well.

“And in 6 months, Q2 FY24 PPT, Slide 11, now the disbursed default rates for D and E are much lower than not-disbursed B and C. What changed in 6 months since this data is ‘all customers since inception’? Does it mean significant deterioration of not-disbursed customers and that the UGro score is working to tee?”
This means that our hybrid model of Score + Credit Underwriting is working better.

@hitesh2710

Sir, are there any visible indications or patterns on charts that could mean froth, or it is not possible to identify froth on charts, and one has to rely on fundamentals alone to gauge?

Thank you.

refer Q4FY23 Concall Transcript…

Thanks @hack2abi for sharing your thoughts, some great insights. Do you think the unfavourable credit cost base from last year along with higher funding cost are likely to result in depressed PAT growth at least in the short term (Q3-Q4 24)?

As per my understanding…all EV batteries are Li ion batteires and the graphite is used to make electrodes of the batteries.
Since China/Korea/Japan dominates the manufacturing of batteries …i presume the graphite opportunities, for indian mining projects, are in terms of graphite exports…yes ?