Dear Fellow Members
A heartily welcome to all the existing and the new shareholders whohave joined the SRG family. I believe our association will strengthen the company toachieve new heights of success.
FY17 was an eventful year for SRG. We got funding from reputed playerslike LIC Housing finance Limited Oriental Bank of Commerce Andhra Bank National HousingBank State Bank of India MAS Finance Services Limited and DCB Bank.
I am delighted to present past year's performance to you. In financialyear 2016-17 your company has outperformed in almost all aspect of business. Let us seesome of the performance highlights of the year in comparison with previous year.
Net Interest Income grew from Rs. 6.23 Cr to Rs. 8.97 Cr marking agrowth of 43.98%. Pro t After Tax grew from Rs.1.87 Cr to Rs. 2.71 Cr registering a growthof 44.92%. The Revenue from Operations increased from Rs. 10.22 Cr to Rs. 14.53 Cr markinga growth of 42.17%.
The Loan Portfolio of the Company rose from Rs. 53.28 Cr to Rs. 81.83Cr marking a growth of 53.58% with increasing participation of Housing Loan and LAP loanand decreasing participation of Builder's Loan as compared to previous year.
During the year there was some slowdown seen in disbursement in Q1 dueto funding constraints and in Q3 due to Demonetization. However a robust Q4 witnessed adisbursement of Rs. 25.71 Cr which helped end the year with total disbursements ofRs.47.37 Cr as against Rs. 27.31 Cr in the previous year registering a growth of 73.45%.
The five year compounded annual growth rates of the company in variouselds have also been extraordinary such as 60.97% in Loan Portfolio 61.52% in Net InterestIncome and 52.98% in Pro t After Tax.
In terms of creating long term value for our shareholders I would liketo inform you that Earning per share (EPS) of your company has increased from Rs. 1.65 toRs. 2.38 this year despite of the increase in number of shares. Further MarketCapitalization which was Rs. 79.19 Cr as on 31.03.2016 rose to Rs. 158.08 Cr as on31.03.2017 with a growth rate of 99.62%.
Your company also raised funds worth Rs. 15 Cr by way of privateplacement of equity shares which led to an increase in Net Owned Fund (NOF) to Rs. 33.97Crores Vs Rs. 15.99 Cr leading to a growth of 102.50% and the total Capital Adequacy Ratio(CAR) to reach 72.71%.
Your company started its corporate office in Mumbai in May 2016. Thisdecision had contributed to a great extent towards the growth of the company. In July2016 itself your company got revised its rating and managed to stood at the stage ofInvestment grade. Company could also secure sanctions worth Rs. 88 Crores from multiplebanks and financial institutions during the year 2016-17.
I would like to congratulate you all that your company got re nancefrom National Housing Bank (NHB) and that too twice in one financial year i.e. in April2016 and January 2017.
Looking at the awards and recognitions segment your company receivedSkoch Order of Merit Award from Skoch Group in 47th Skoch Summit for qualifying amongIndia's Top 100 SMEs.
Talking about the geographical expansion your company has expanded itsgeographical presence and now the company has of ces across 4 states namely RajasthanMaharashtra Madhya Pradesh and Gujarat.
As a concluding note wish to state that we are pleased with ourperformance in the year gone by but not satisfied. We continue to be hungry for growthbut remain adamant on following the best quality standards of lending. Our understandingin the geographies we operate in will help us scale business further while maintainingthe asset quality.
We have established a strong platform for growth and with demandexpected to remain robust due to Government's constant focus assistance and schemes forHousing we feel there is a huge runway for growth. The capital infusion done during theyear will help us eliminate the funding troubles - like we faced during FY17 and gear usup to take SRG into the next phase of growth.
I would like to express my gratitude to our Board of Directors fortheir support and guidance. I am also grateful to all our stakeholders including NHB RBISEBI MCA the Stock Exchange (BSE) Depositories Bankers Shareholders RTA ServiceProviders and Counselors and Employees of the Company who have reposed their trust in usand given us constant support.
|With best wishes |
|Vinod K. Jain |
|Managing Director |
|DIN: 00248843 |