Dear Shareholders and Friends
Your Company has a mission to help fulfil the dreams and aspirations of fellow Indiansno matter how much they earn what occupation they have or where they live.
I am glad to report that Dhani the flagship app based product of your Company was oneof the top 10 fintech apps of the world for the year 2018. We want Dhani to be a lifestyleapp anchored around credit and have a very high use case for customers for fulfillingtheir transactions based lifestyle solutions. We are making rapid progress towards that byintroducing multiple Lending Products & Transaction Products like Dhani Pay MobileWallet Dhani Pay Rupay Cards.
We want to impact maximum number of lives by providing them with a wider access tofinancial services through use of technology and by putting in trust in our customers.
We have served over 2 million customers so far since the start of our business in 2017and aspire to serve 10 million customers by 2020 and 100 million customers by 2023.
The Company is focused on building a fee based and nonbalance sheet business modelwhere the Company would originate retail loans & sell it to third parties. The overallfee income generated through this business model is the aggregation of processing feecollected at the time of origination upfront fee booked at the time of sell down of loanassets and fees generated though cross selling of multiple products like Insurance DhaniClub Dhani Pay wallets etc. The bouquet of these product offerings has resulted in thecompany's product per customer increase to 1.81 from 1.00 in FY18.
The Company is equipped to grab the opportunity of origination of loans and being anintegral part of an un-served Indian individual and SME lending market in India
The Company has a cutting edge digital lending platform and wide range of products totap this opportunity available in un-served individual and SME customer's space withcustomised credit solutions across different tenor and ticket sizes. The Company continuesto launch new products to cater to this wide market opportunity.
Daily user engagement and monthly user engagement
The Company is focussed on building a deeper relationship with customers beingmonitored by the number of people using the Dhani App on a daily and monthly basis.Through our product range we aim to maximise the number of customers visiting us dailydeepen the customer engagement by offering solutions to our customer's daily financialneeds. Our Daily and monthly user engagement are at par with leading apps and continue toimprove. We are on course to become a one stop platform for present day customer's day today requirements including travel bookings bill payments credit lines for individualsand SMEs etc.
I am pleased to share that your Company has performed well during the year under reviewwithin stressed conditions of NBFC sector. The Company has diversified its borrowings andreduced dependency on term loans by increasing focus on sell down of loans and publicissue of NCD's.
The Company's funding mix is well diversified and has kept the leverage ratio below 2which safeguards Company against any ALM mismatch or liquidity issues. The Companythrough its strong risk management framework has been able to maintain the risk profileof asset portfolio and resultant credit costs under control at par with the industry.
Consolidated total Revenue grew by 101% year-on-year from Rs 9.95 Bn in FY 2018 to Rs19.97 Bn in FY 2019. The Company has been able to pass on the increase in cost of funds toits customers and thereby maintained its net interest margin.
The Company has kept its credit costs under control and Gross non-performing loans(GNPA) of the Company as at March 31 2019 amounted to Rs 0.84 Bn which is equivalent to0.75% of Asset under Management.
Your Company has posted consolidated profit before tax of Rs 6.29 Bn for FY 2019 ('2.81 Bn for FY 2018) YoY growth of 124%. The consolidated profit after tax has alsoincreased in the same growth tandem of 119% to Rs 4.6 Bn FY 2019 (' 2.10 Bn FY 2018).
Keeping in mind investor's expectations and after considering the adequacy of profitsthe Company had declared interim dividend of Rs 1 per share of face value Rs 2 /-amounting to 50% in the board meeting held on April 25 2019.
The way forward
The company is progressing on the path of prominent and sustainable business growth byproviding best customer service in consumer and SME finance segment on a platform whichtakes care of all funding and transactional financial needs of the customer.
I would like to conclude by thanking to our regulators customers business partnersemployees bankers Board and shareholders. The support extended by all of ourstakeholders allowed us to achieve more and more.
Chairman and Founder