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CSL Finance Ltd.

BSE: 530067 Sector: Financials
NSE: N.A. ISIN Code: INE718F01018
BSE LIVE 12:37 | 24 Aug 565.00 0.90
(0.16%)
OPEN

570.00

HIGH

570.00

LOW

559.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 570.00
PREVIOUS CLOSE 564.10
VOLUME 752
52-Week high 626.50
52-Week low 150.00
P/E 18.62
Mkt Cap.(Rs cr) 264
Buy Price 560.00
Buy Qty 100.00
Sell Price 565.00
Sell Qty 51.00
OPEN 570.00
CLOSE 564.10
VOLUME 752
52-Week high 626.50
52-Week low 150.00
P/E 18.62
Mkt Cap.(Rs cr) 264
Buy Price 560.00
Buy Qty 100.00
Sell Price 565.00
Sell Qty 51.00

CSL Finance Ltd. (CSLFINANCE) - Chairman Speech

Company chairman speech

Dear Shareholders

India's GDP grew 7.6 per cent in 2015-16 up from 7.2 per cent a year ago. India now isthe world's fastest growing major economy outpacing even China. Inspite of this growthIndia has been facing a number of headwinds - deficient monsoons for the last 2 yearssluggish capital investments and a comatose real estate sector.

Since 2008-09 our focus has shifted from making long term strategic investments insmall and midsize companies to investment strategies & structured lending productsthat gave us annual compounding of between 18-24% with low risk. We focused on arbitrageopportunities like participation in open offers opportunities arising from specialsituations on account of merger and demerger delistings and buybacks.

In 2011 we started providing short term funds to small and midsize companies speciallyin real estate and education sector and over last 5 years we have increased ourpenetration in the NCR region.

Your company has performed very well in the year gone by given the challenges in itscore area of operations - secured lending to small & medium sized builders andeducation sector.

Since our operations are in two segments secured lending and investing in capitalmarkets (special situations like mergers demergers buybacks and open offers) our overallrevenues historically have been volatile. Going forward we have substantially scaled downour operations in the capital markets and are increasingly focused on scaling up ourlending operations.

Our Revenues declined by 52% to Rs 44.67 Cr in FY2015-16 compared to Revenue of Rs93.77 Cr in FY2014-15. This was largely due to scale down in activities in the capitalmarkets. Our Profit Before Tax increased by 51% to Rs 18.49 Cr in FY 2015-16 compared toRs 12.26 Cr in FY 2014-15 and Profit After Tax increased by 63% to Rs 13.06 Cr in FY2015-16 compared to Rs 7.99 Cr in FY 2014-15. Our total Lending book increased by 55% toRs 106.47 Cr in FY 2015-16 compared to Rs 68.51 in FY 2014-15.

This change in profitability was driven by our efforts to enhance our lending book andfurther increase our operational efficiencies. We have build our team in this segment andhave also shifted to a larger premises to support the future growth.

We have changed our Company's name from Consolidated Securities Limited to CSL FinanceLimited to better reflect our core area of operations. The Company has divested itsnon-core assets to make the balance sheet more capital efficient and cleaner.

We are in the process of merging our holding company with the company to make the shareholding pattern more transparent. This is being done without increasing the share capitaland in a totally transparent manner.

We are enthused by the opportunities emerging for the NBFCs in India given the hugefocus of the government to provide financial services to the unbanked segment of thepopulation. The rapidly falling costs of transactions and increased usage of technology isdriving huge innovation and rapid emergence of new business models. Going by the mediareports India has become a fertile ground for hundreds of Fintech companies which aretrying new business models. Over the last year we have tied up with 2 fintech companies tohelp them validate their business models. We are working closely them to help them rapidlydeploy their offering in the market and tap new customer segments.

We aim to further grow our lending book by 25-30% in the coming financial year and arelooking at other lending segments where we can grow meaningfully.

I would like to thank our employees for their efforts to drive our growth and all ourshareholders for their continued encouragement and support.

Rohit Gupta

Managing Director