Capri Global Capital Ltd
NSE:CGCL
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Capri Global Capital Ltd
Earnings Call Analysis
Q1-2025 Analysis
Capri Global Capital Ltd
In the first quarter of FY '25, Capri Global Capital Limited (CGCL) experienced remarkable growth, with Assets Under Management (AUM) reaching INR 17,457 crores, marking a substantial increase of 56% year-over-year. This growth was primarily fueled by a 40% rise in home loans and an impressive growth in gold loans, which surged significantly, reflecting the company's strong positioning in the retail lending sector.
The company's disbursements soared to INR 5,619 crores during the quarter, which represents a staggering 109% year-on-year growth. This robust performance underlines CGCL's commitment to expanding its retail lending operations, with over 80% of its portfolio dedicated to this segment.
During the quarter, CGCL continued to build a well-rounded portfolio focusing on MSME lending, housing finance, and gold loans, while also introducing micro Loans Against Property (LAP) for smaller ticket sizes. The average ticket size in its MSME financing reached approximately INR 19 lakhs, and the company aims to maintain a careful risk management strategy with these diversified offerings.
CGCL's net interest income (NII) rose to INR 301 crores, marking an increase of 18% quarter-on-quarter and 27% year-over-year. The yield on advances improved to 16.3%, up by 70 basis points, while the net interest margin strengthened as the cost of funds remained manageable. Additionally, non-interest income rose by 35% year-on-year, bolstered by a staggering 126% jump in co-lending fees.
The company has rolled out several technological initiatives aimed at improving efficiency and service delivery in its loan processing. As the tech-driven model stabilizes, CGCL expects to enhance its turnaround times and decision-making processes, contributing positively to its operational efficiency and ultimately, profitability.
Looking ahead, CGCL has set ambitious targets, with an aim to achieve INR 30,000 crores in AUM by FY '27. The management anticipates maintaining a strong growth trajectory across key products including MSME, gold loans, and housing finance. Furthermore, an expected return on equity (ROE) of 10.5% to 11% for FY '25 is projected, with aspirations to reach mid-teen ROE levels by FY '27.
Despite the positives, CGCL acknowledges challenges such as seasonality effects and the impact of transitioning to a new loan management system, which may have temporarily stabilized growth in certain segments. However, the management is confident these challenges will resolve as new systems are fully integrated and operations ramp up.
Furthermore, CGCL is committed to environmental, social, and governance (ESG) practices, indicating a strategic alignment with international standards as they evaluate their operations through an ESG lens. This intent aligns with growing investor interest in companies with sustainable practices.
Capri Global Capital Limited's impressive growth metrics, an expanding portfolio of diversified products, and strategic emphasis on technology illustrate the company's solid position in the lending sector. The management's forward-looking guidance and adherence to sound risk management practices suggest that CGCL is poised for sustained growth and represents a compelling consideration for investors.
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Ladies and gentlemen, good day, and welcome to Capri Global Capital Limited Q1 FY '25 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please that this conference is being recorded. I now hand the conference over to Mr. Hardik Doshi from Capri Global Capital Limited. Thank you, and over to you, Mr. Doshi.
Good afternoon, everyone. This is Hardik Doshi. I shall read out a brief disclaimer for today's call. The discussion on today's call regarding Capri Global Capital Limited earnings performance will be based on judgments derived from the declared results and information regarding business opportunity available to the company at this time. The company's performance is subject to risks, uncertainties and assumptions that could cause actual results to differ materially in future.
Given these uncertainties and other factors, participants on today's call may observe due caution while interpreting the results. The full disclaimer is available on Slide 42 of Q1 FY '22 investor presentation. Participants are requested to note the same. I now request our Managing Director, Mr. Rajesh Sharma, to present the opening remarks. Over to you, sir.
Yes. Thank you. Good afternoon, friends. I hope you all are doing very well. We declared our unaudited consolidated results for Q1 FY '25 on Saturday, 3rd August 2024. I hope you had a chance to go through the investor deck.
As you all know, Capri Global Capital Limited continues to have a strategic focus on serving the large and fast-growing addressable market, maintaining a retail franchise to the granular book and high-quality fee income. We have distinguished ourselves through our robust presence in the lending sector, focusing on secure MSME lending, housing loans, gold loans, construction finance and indirect lending.
We have also ventured into micro LAP, focusing on smaller ticket size loans to self-employed customers. We are dedicated to using a digital fast technology-driven strategy to provide last-mile financing to the unbanked population. To achieve this, we have made substantial investment, which I will discuss subsequently.
I'm pleased to report that all our technological initiatives have successfully gone live in the first quarter of FY '25. This positions CGCL to reap significant long-term benefits. I shall now move the commentary on business and earnings performance.
As regard to business, please refer Slide 4, 5 and 6. We maintained a strong growth momentum in Q1 FY '25 with our AUM reaching to INR 17,457 crores, with an increase of 56% year-on-year. This growth was primarily driven by a 40% year-on-year increase in home loan and a strong growth in our gold loans.
Our disbursement is INR 5,619 crores during the quarter, reflected 109% year-on-year growth. We remain focused on retail lending with retail AUM constituting over 80% of our portfolio. We are well positioned to drive growth and are on track to achieve our target of INR 30,000 crores AUM by FY '27.
Our co-lending AUM continued to surge during Q1 FY '25, increasing to 16.4% of AUM compared to 11.7% in Q4 FY '24 and 6.2% in Q1 FY '24. We have further strengthened our bank partnerships, significantly increasing the acceptance ratio of loans with our partner banks compared to a year ago. With new technology in place, we expect this momentum of co-lending to continue to grow.
We continue to build a granular and well-diversified portfolio for MSME and housing finance with the average ticket size of about INR 19 lakhs. Due to seasonality effect and transition of a new loan system and loan management system during the first 2 months of the year, the MSME and housing finance yield a temporary stabilization. However, we are confident that our growth momentum will be back from Q2 onwards and will continue in coming quarters.
Our gold loan AUM increased by 55% quarter-on-quarter to cross INR 5,400 crores, supported by our extensive gold loan branch network of 750 branches spread across 9 states and union territories and co-lending partnership with 4 banks. These branches has started to scale up and have reached the productivity of INR 7 crores AUM per branch. Share of construction finance and indirect lending disbursal remained steady during the quarter driven by the existing pension pipeline. The combined AUM share for both construction finance and indirect lending stayed at 20%. Further, we are committed to our cautious risk management strategy keeping the mix below 20%. Our focus will remain on residential projects within the affordable housing sector while maintaining a granular look in indirect lending.
Now coming to the earnings, let me first start with our core earnings. Our yields were at 16.3%, an increase of 70 basis and our spreads reached to 7%, increase of 60 basis quarter-on-quarter. Driven by our diversification into high-margin venues, the increase in marginal cost of funds were more than offset by the improvement in yield for advances. The net interest income or NII during Q1 FY '25 came in at INR 301 crores, an increase of 18% quarter-on-quarter and 27% year-on-year.
Our non-interest comprises of 3 components: car loan distribution fee, co-lending income and [ non-other ] loan interest income. Our noninterest income increased by 35% year-on-year, supported by strong fee income from co-lending, which increased by 126% year-on-year and 17% quarter-on-quarter.
With the momentum of our AUM remaining robust, our distribution franchise for car loan origination is now spread across pan-India. We anticipate this strong foundation will sustain the impressive growth trajectory of non-interest income. This strategic partnership and widespread distribution network position as well to capitalize on emerging opportunities and further enhance our fee income stream.
On the insurance distribution front, we have already tied up with about 11 insurance companies and started accruing fee income. They're looking to generate more than INR 20 crores in net fee income from insurance distribution in FY '25. Following our branch expansion, we are now shifting our focus to improving the efficiency and productivity, the affect of this already started to reflect in our cost-to-income ratio, which is improved to 64.6% in Q1 FY '25, down from 17.5% in Q4 FY '24, marking an improvement of 5.9% in this quarter. Additionally, we are implementing advanced analytics to streamline our operation and enhance decision-making processes, which we believe will drive further gains in efficiency. We expect further benefits will accrue as the operating leverage will kick in. As a result, our pre-provisioning operating profit increased significantly to INR 145 crores, up by 33% quarter-on-quarter.
Our credit cost increased in Q1 FY '25 due to one-off slippages in our construction finance book, resulting in a technical write-off of INR 28 crores. However, based on our experience, we are confident of returning the entire amount. Our GNPA ratio and NNPA ratio remains broadly flat at 2% and 1.1%, respectively. Our Stage 3 [indiscernible] stood at 43%. As part of our resource diversification strategy, the company has initiated market borrowings in Q1. We successfully raised INR 500 crores valuation for commercial paper, getting A1 Plus by CRISIL rating. This demonstrates our strong credit [indiscernible] and enhance our financial flexibility to support future growth initiatives.
Our Board has also approved fund raise of INR 20,000 -- sorry, INR 2,000 crores by way of equity, debt or convertible securities through rights issue, [indiscernible]. This fund raise will support our growth momentum and will further strengthen our balance sheet. Our gold loan business has now become profitable at operating level, and we reported a consolidated net profit of INR 75 crores, which increased about 19% year-on-year. The gains from higher NII and flat OpEx was partially offset by higher credit costs. Our efforts to diversify our business income still -- past few years are now beginning to yield significant results as seen in Q1 FY '25 performance.
Now coming to technology and ESG. Technology has been a critical focus area for us, and we implemented several key initiatives in FY '24. Our entire end-to-end loan life cycle is now completely digitized and tech driven. We have made significant investment in technology, including our in-house developed loan origination system called [indiscernible] for MSME and home loan and [indiscernible] for gold loans. Flex Cube, which is a loan management system developed by Oracle; Capri Loans as for omnichannel customer engagement; Pragati sales app for digital on-boarding by our sales team; CollectXpress, an efficient tool for collections and Capri business partner at for our business partners. These platforms are currently stabilizing and have already started to yield positive results.
These initiatives will lead to improvement in turnaround time, especially for our MSME and [ front ] housing businesses by enabling seamless distribution that enhances sales productivity. We will also optimize cost by reducing per file processing expenses, facilitate risk-based pricing through AI-driven credit underwriting, scorecards and digital collateral valuation and enhance portfolio quality with sophisticated dashboards and live monitoring and efficient collection tools.
We look forward to sharing quantitative outcome of our tech initiatives in a couple of quarters. Capri has established a systematic ESG practice, internally has crafted policies as per international standard and ESG guidelines. We are currently in the process of obtaining ratings from global agencies. Furthermore, we are conducting training more our internal team and aligning our business processes with ESG requirements.
Going ahead, we shall immediately keep our stakeholders updated on the progress we make on the ESG assessments. With that, I conclude my remarks. We shall now take questions. Thank you.
[Operator Instructions] We have our first question from the line of Satyaprakash Pandey from Haitong.
I have 2 questions. First is on your insurance business. What was our net fee contribution from insurance business during the quarter? And if you can explain a little more on the 11 tie-ups for insurance distribution we have done. This is the first question.
And the second is we've been discussing our target to achieve mid-teen ROE in the midterm, driven by higher fee income and operating leverage. Can you provide a clear time lines for when we might start seeing this improvement reflecting in our numbers? Especially when do you anticipate reaching a sustainable 15% ROE? Because it's been some time that you've been guiding for mid-teens ROE. Yes, these are my 2 questions.
So as far as the insurance contribution is concerned, in quarter 1, we have achieved about INR 12 crores insurance income. And the tie-up about 11 insurance companies are the different, different products for different kind of a customer, for medical and for health insurance, for life, for accident cover, like that so we have -- for the variety of the product, we are kind of with 11 insurance companies.
Now coming to by when we will start our mid-teen ROE and how this ROE is looking this year? So as compared to ROE, which was less than 8%, the FY '25, we are likely to report ROE, in the range of about 10.5% to 11%. And we believe that next year, ROE further should be improved by another 2% to 2.5%. And from -- once we achieve a scale of about INR 25,000 crores plus, by then, I think we will be more or less will be in a steady state in terms of our branch expansion also on the increased investment in the technology and data science capability, we should be able to achieve about 15% ROE in FY '27.
We have our next question from the line of [ Satyam Vadera ] from Profitmart Securities.
I have a couple of questions. Could you explain the impact on net interest margin during the quarter in the gold loan business following the RBI regulations? Additionally, you mentioned that the gold loan segment has turned profitable. Could you provide the insights on your expansion plans, given that you previously indicated the temporary pause because resuming branch operations? And my another question is car loan originate continue to be down for past couple of quarters. What could be the reason behind the decline?
So coming to net interest income, net interest income has improved in quarter 1 as compared to -- yes, so it has improved. If you talk about our net interest income, it has come to INR 301 crores. If you talk about the Q4 FY '24, it was INR 255 crores. So there is a significant increase, about 18% in this.
And if we compare to the year-on-year basis, it has come from INR 237 crores to about INR 301 crores. So that interest income has been contributed largely from all the segments, but more from the gold loan side. If we talk about gold loan profitability, gold loan has become profitable because we have crossed INR 5 crores AUM in all the branches. And normally gold loans become -- started breakeven above INR 4.5 crores. So all the gold loan branches, which is 750, have started contributing.
And [indiscernible] compared last year we were incurring the operating losses in the gold loan because AUM was at lower side, and that is the journey that every branch has to achieve profitability only after 12 to 15 months depending on when they achieve their AUM of INR 4.5 crores or so. So gold loan this year will contribute significantly on the profitability side compared to the losses last year.
If you talk about the car loan. Car loan, we are shifting the business from the capital limit to the newly formed entity. So if we talk about the Q1 FY '24, car loan net interest -- net fee income was INR 31 crores. But [ Q1 ] FY '24, it was INR 24 crores. However, the preceding quarter, because of the January, February, March is always high, and April, May, June is a little -- is a soft quarter always for all the traditional services, that [indiscernible] INR 27 crores in Q4 FY '24, the fee income from the car loan has been INR 24 crores.
And sir, for branch expansion, any plans further for gold loan segment?
So gold loan segment, we might add about 50 branches in the coming year. So that expansion will not be as aggressive as it was earlier because we already reached one threshold of 750 branches, so now large expanse will be gradual. So about 50 branches or so we will add in the current financial year.
[Operator Instructions] We have our next question from the line of [ Sohail Kanalil ] from ULJK Financial Services.
Congratulations on a good set of numbers. I would like to ask, how much is the -- how much of the book is floating rate currently? How much of the total book is on floating rate?
Your question is, you are asking the composition of assets or the anatomy, home loan side in the floating and non-floating?
Yes, mostly on because gold loan would be fixed, right? So besides that, whichever segments that we are in, how much of that would be in floating, I mean?
So gold loan and the construction finance, gold loan line, it is a rate of interest we pre-decide based on the scheme of debt by the customer. Construction finance, it is all 100% floating. And home loan and MSME, we offer both the option to the customer. So there are about -- exact percentage, I think we will be able to tell you separately. You can send a mail to IR and they'll share the exact data.
Got it. Got it. Got it. And 1 more question I would like to ask. So we have seen a huge rise in yield on advances. Any light you would like to throw on that, sir?
So yield on advances, if you see Q4 FY '24 yield on advances was 15.6%, which has gone to about 16.3% on a portfolio basis. And the contribution because the gold loan AUM, the overall portfolio is increasing. So -- and gold loan yields are better than all the other products. So that is the reason where the improvement in the overall yield on advances by about 70 basis have happened.
Got it, sir. Got it. I would like to ask 1 last question. How do you see the loan book shaping up going ahead? Like is there any particular segment you see a bit more exponential growth or higher growth than others? Or is there any other book that you would like to cut out of your -- or like reduce a portion from your loan book?
So I think on the overall loan book, our key growth drivers will remain this retail products comprises of home loans, gold loan, MSME. And this year, we added the micro LAP, the smaller loan of about less than INR 5 lakhs against collateral in rural areas. So these are the products which will give the contribution towards the growth. And there has been no single product, which will be come out disproportionately higher than others.
So I think MS is already about -- our MSME is about 28%, 30% is gold loan and then 23% is housing. So they will remain by and large in this proportion.
[Operator Instructions] We have our next question from the line of Jai Daxini from IIFL Securities.
Yes, I want to ask 2 questions. First would be, what will be your cost of borrowing or market borrowings that you borrowed in this quarter? And the difference of debt versus your bank of borrowings from banks -- from bank borrowings? And what will be your agri borrowings post 1, 2 years?
So the recent capital market borrowing are in the range of about 9%. And overall cost of borrowing is about in the range of about 9.6% -- 9.3%. And ideal borrowing mix, I think still, the majority of borrowing will keep -- continue to happen from the mix of bank and some borrowing we will do from the refinancing from the larger institutions. So NHB Refinance, SIDBI, NABARD and all these kind of refinance institutions.
Okay. And what is the breakup of bank borrowings for MCLR linked and EBLR linked?
So all the bank borrowings are MCLR linked. .
Got it. And there is a significant decline in disbursement in MSME and HL loans. So what factors growth has declined in disbursement?
Since we have gone live in new our technology platform for origination called, this loan origination system. And because of that, taken some time to stabilize. The first quarter was training our on-ground team to [indiscernible] system. So I think that system, by and large, is stabilized now in the month of July. So this month, this quarter onwards, we will see the growth coming back. And by the October onward, we'll see full-fledged benefit of the new technology also start coming in.
And so we will see the change happening because of technology, which was getting adopted on the ground, first quarter was a little softer.
[Operator Instructions] We have our next question from the line of [ Aryan Oswal ] from Finterest Capital.
So my first question is regarding the cost of funds. Do you expect it to increase even further in the coming quarter? And when do you see the trend reversing? And also what are we doing so that our cost of funds doesn't cross a certain limit?
So I think cost of funds in the -- this year should remain by and large in this range. We are not yet clear how the interest rates will pan out because of various things. But I believe that cost of funds should not increase. If at all it increases, it will not be more than 10 to 20 basis, and which we should be able to pass on to all the new lending, which are happening now. So it should not have an impact on our expense.
Okay. And sir, a lot of bigger names from the NBFC space have turned their focus on granular retail loans. So can you shed some light on the increasing competition in this space? And how are we different from the competition?
So I think this space is quite competitive, not from now, even last 2, 3 years, we have seen that there is competition. The only way that you keep focusing on giving a better turnaround time to your customer. And the only way to help this is the technology and your decision-making should happen based on the data science capabilities on various things. So I think automated processes and data science-driven decision-making, these are the 2 aspects which we are confident that we'll have an edge over most of the competition and able to have a faster processing, better decisioning and better outcome in terms of asset quality and all.
[Operator Instructions] The next question is from the line of [ Dipesh Sancheti ] from [ Manya ] Finance.
Yes. Finally, we have crossed the breakeven mark in our gold loan business. Are you trying to expand in the Southern and Eastern parts of the country? Or are we planning to deepen our presence in the existing markets?
Yes. In gold loan, our expansion will continue to be the North and West. We do not intend to go in South because we believe that South is already hugely penetrated and already there, the competition is in much larger areas. North and West still have a lot of scope. And besides that, our entire current network of branches of home loan and MSME are in the Northern belt. So even behind the costing perspective, the branding perspective, credit perspective, that is going to be helpful to us. .
Are we facing a lot of competition from the PSUs also? Because in between, the government has mandated the PSUs to go aggressive on gold loan?
So competition in retail segment is always there. So I still believe that we have to focus on our service delivery and our origination and our customized product. Not that there's not a adequate competition. Competition is there. Within that competition, we have to be aligned our offerings and continue to grow.
Okay. What is the impact of import duty on gold? With the cut on import duty, the prices decline. What is the impact on -- do you see on our gold business happening due to this? And do you expect the prices to decline further or start increasing as we enter the festive season?
So gold loan reduction on the import duty have enabled the gold loan prices going softer. And so on the existing portfolio, your LTV has gone up, so that is where we have to see that our LTV come within the acceptable range. So we will do the collection call and all that.
But having said that, how the gold loan prices behave? We are not focusing on that. This is an impact because of the custom duty reduction. And that is in control because it is not more than 5%. But going forward, the gold loan will behave based on various other factors, which I don't think we are competent to comment on that.
So how much more margin requirement is required with every 1% decrease in gold prices?
If the gold prices increase 1%...
Decrease, decrease.
Decrease. If they decrease 1%, and our LTV is 0.75, then 75% of that amount, our LTV will increase. And to that, actually, either the LTV should remain within the acceptable range and we have to recover from the customer. And being these are the customers in the range of [indiscernible] about INR 90,000. So the impact that way, time to recovery is very, very low.
Okay. Just a last question from my side now. With the new fundraising, which we have done, what would be the impact on our book value?
It's pretty mature to say because it depends on what quantum and what shape and when you raise. And it is just enabling provision, we have yet to take shareholder approval and also discuss various options. And then we decide which option, which instrument and what point will we be finally doing.
Okay. So just a follow-up on that. So in case if you're going for preferential warrants or maybe preferential equity. We, as investors, retail investors, can -- or institutions, can we also participate? And whom do we have to contact if that is the case?
As I said, we have not yet clear what instrument and what time it will be. So if anyway it happens, that will be, in any case, will be disclosed to the stock exchanges in time to time various announcement. But in this moment, we are not yet clear and no further progress has been done till the -- after the shareholder's approval.
I'm sure. But if there is a participation from proprietary houses like us, then what is the point of contact of the company?
I think this -- as l said, whenever the [indiscernible] this, everybody will be informed via [indiscernible] announcement and various other ways.
Okay, sir. I'll contact you regarding this again.
[Operator Instructions] The next question is from the line of Ajit Kaushal from Royal Global University.
Yes. I am late joining to this particular conference. Can you let me know, my question is regarding the FX impairments from this sector from maximum asset impairments you are looking...
Yes, this -- actually, this includes 2 part: one is the ECL and the other one is -- so ECL is a provisioning expected credit loss and the other one is write-off. So there is almost INR 28 crores of write-off in the rest of [indiscernible].
Okay. Yes. Another part of my question is again, related to the asset impairment. So most of the write-off on nonperforming assets, it is coming from MSME or gold loan or housing? From which sector...
So it is more from the construction financial. It's a technical write-off.
What is the meaning of technical write-off. What is meant by technical write-off?
So recovery will continue. The efforts for the recovery will remain continue. It's not like that it's a completely write-off -- so technically, we have taken the impact. But yes, definitely, our efforts will remain continue.
Okay. Okay. So may I ask what you are expecting, to what percent you will be able to recover, if you can have any kind of estimate regarding that?
Almost 80%, 90% we'll be able to recover.
Okay. Out of this INR 28 crores?
Yes.
Yes. What -- I missed something, sir, because of the voice disruption, sir. What about the rest of the INR 18 crores? I think, if I'm right, I saw it is INR 46 crores around the assets impairment.
Yes, provision on the assets.
But the rest of the INR 18 crores is provisions?
More or less, yes.
Yes, rest of the INR 18 crores is actually provisioned. As a part of normal course of business, when the loan book or the book rolls, AUM rolls, as an NBFC business, they will have to continue to make provisions also against that. So that's a normal course of the business. So that INR 18 crore is a ECL provision and INR 28 crores is onetime write-off, which sir also mentioned earlier.
And it's a technical write-off. So technically, what happens is we write it off and then we initiate the recovery process. And in our -- based on our experience from the past, we will be able to recover 80% to 90%.
Yes. So last year also saw that it was showing around INR 23 crores, INR 24 crores of write-off in the first quarter of '23-'24. Again, you have written off in the first quarter of '24-'25. So whether it is being done strategically as far as provisioning of this technical assets impairment are concerned?
Yes. I think -- see, we will have to check about the Q1 number which you just mentioned. We have written down your question. Why don't you reach out to us separately and then we'll be able to give you the exact details.
So across INR 13 crores was the write-off and the rest of the provision in ordinary course of business.
The next question is from the line of Marazbaan Dastur from Emkay Global.
Yes. Sir, just I have a couple of questions. So could you help us understand this new micro LAP segment. Like is it a part of the existing MSME business vertical? Or is it different in some way? Aside from the ticket size range given that the MSME segment also has a ticket size of around 1 million to 1.5 million?
So it is a completely different segment, different team, different branches. So it is a different vertical. So MSME, currently, we have average ticket size of INR 19 lakhs. However, this micro LAP will be -- average ticket size of INR 5 lakhs, all the loans will be below INR 8 lakhs. And these are the loans which are happening in the range of about 22% yield as against the MSME which is happening in the range of 15.5%.
So this is to serve our customer segment in the rural areas and branches are also getting opened accordingly. We intend to open about 70 branches in next 3 quarters. And already 27 branches are gone live, and you will start seeing some portfolio, but initial few months are the phase where we will build up these branches. Actually, you will see full benefit from these branches will start coming in.
Okay. Okay. And secondly, on your guidance of INR 50,000 crores AUM over the next 3 years, could you help us understand better your plans in terms of scaling the business and what verticals would you see higher growth?
So Higher growth will, of course, will be coming from MSME, gold loan and housing and construction finance because by that time micro LAP is a shorter tenure loan for a lower amount. And this year, we closed INR 15,000 crores -- already we reached INR 17,000 crores. So when we achieve INR 20,000 crores, INR 21,000 crores in FY '25, I think we are well within our target to reach INR 30,000 crores by FY '27.
[Operator Instructions] As there are no further questions, I will -- now I'd like to hand the conference over to the management for closing comments. Over to you, sir.
Thank you, everyone, for your time today in attending the first quarter FY '25 Capri Global Financial results. We look forward to continuing to engage with each one of you. And we look forward to kind of again speak to you during second quarter [indiscernible].
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.