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Octal Credit Capital Ltd.

BSE: 538894 Sector: Financials
NSE: N.A. ISIN Code: INE513C01010
BSE LIVE 12:27 | 28 Apr Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 12.40
PREVIOUS CLOSE 12.40
VOLUME 5
52-Week high 15.20
52-Week low 11.88
P/E
Mkt Cap.(Rs cr) 6
Buy Price 11.78
Buy Qty 3.00
Sell Price 12.40
Sell Qty 95.00
OPEN 12.40
CLOSE 12.40
VOLUME 5
52-Week high 15.20
52-Week low 11.88
P/E
Mkt Cap.(Rs cr) 6
Buy Price 11.78
Buy Qty 3.00
Sell Price 12.40
Sell Qty 95.00

Octal Credit Capital Ltd. (OCTALCREDITCAP) - Chairman Speech

Company chairman speech

Indian economy grew at a five-year high growth rate of 7.6% in FY 2015-16 on improvedperformance in manufacturing and farm sectors. According to the Central Statistics Office(CSO) the GDP growth is estimated at 7.3% in October-December quarter of this fiscal. TheGDP growth estimates for April-June and July-September quarters have been revised upwardsto 7.6% and 7.7% from earlier calculation of 7% and 7.4% respectively. The real GrossValue Addition (GVA) is projected at 7.3% in this fiscal against 7.1% in 2014-15. For theNBFC sector it was another difficult year adhering to tight provisioning norms from RBIhowever demand was seen improving particularly in the latter part of FY 2015-16. NBFCshave steadily grown in number and have enhanced their market share giving a strongcompetition to banks and financial institutions. According to CRISIL NBFCs help fill thegaps in availability of financial services with respect to products as well as customerand geographical segments. NBFCs have evolved as an important segment of the Indianfinancial system operating across a variety of segments including car and commercialvehicle finance loans against property gold loans and unsecured retail loans. Althoughthe NBFC sector has shown consistent growth in terms of net profit over the past fewyears the asset quality has been under duress due to the economic slowdown and a weakoperating environment. According to the Financial Stability Report released by the RBIthe asset quality of the NBFCs-ND-SI sector has been deteriorating since. The FY 2015-16once again saw a decline in global growth following fall in global commodity pricesdeclining trade flows increased volatility in exchange rates and capital flow. Slackeningdemand from China amid lower growth prospects as the country transitions from an exportled one to consumption driven has pressured on prices of key commodities. Large emergingeconomies notably the Russia and Brazil exhibited muted economic performances beingcommodity exporters. Majority of developing and emerging economies lowed to its weakestpace since the global financial crisis of 2008-2009 while modest recovery continued inadvanced economies. However OCCL faced a challenging year. Though there was nearly 11%decline in our Revenue in comparison to 2014-15 and a provision for diminution in value ofinvestment amounting to Rs 4.90 Lacs (approx) there was no impact on the profitability.OCCL reported a Profit of Rs. 8.87 Lacs (Profit Before Tax) during the year against aprofit before tax of Rs. 0.89 lacs 2014-15. If the exceptional item of provisioning in thecurrent year is removed OCCL reported PBT would be 21.68 Lacs. In this Financial Yearalso OCCL did not borrow external funds owing to high interest rate and the operationswere funded out of our internal accruals. The average lending rate remained at in range of12% to 18% ensuring that net interest margins remained significantly high. Looking aheadin FY 2016-17 we will capitalize on the improving demand and look to improve theperformance of the Company. India is at the tipping point of a new era of growth andopportunity led by increasing economic activity the exciting ‘Make in India’initiatives and a demographically well-placed aspirational society. At Octal CreditCapital we continue to be a partner in India’s ongoing journey towards economic andsocial development and remain committed to the country’s long-term growth potentialand is committed to delivering long-term value creation for all its stakeholders.

At Octal Credit Capital the year 2015-16 was a creditable one as we reported atremendous growth in bottomline. One of the other high point of the year is that we didnot borrow external funds on account of the high interest rates and continued to fund ouroperations out of internal accruals. Finally I would like to thank all my colleagues fortheir dedication commitment and contribution towards strengthening our Company. I wouldlike to place on record my sincere appreciation to the Board of Directors for theirguidance and express my gratitude to all our stakeholders for their continuing faith inour Company.

Regards
Dilip Kumar Patni
Chairman