AS WE MOVE FORWARD WE INTEND TO STAY ANCHORED TO OUR BELIEF THATGROWTH ALONG WITH QUALITY IS THE KEY TO ENHANCE SHAREHOLDERS' VALUE.
The year gone by has been marked by recovery in the economy. It hasalso endorsed your Company's ability to deliver a strong performance in good and badtimes. Although the country experienced two waves of COVID-19 during FY2022 thesecond and third wave which resulted in partial lockdowns in various states andhealth and economic hardships for citizens we stayed strong and continued to support ourcustomers.
We resumed our growth path with a 16.27% growth in AUM in FY2022 to Rs6246.8 crore while our revenue increased from
Rs 593.9 crore to Rs 657.5 crore and our PAT climbed from Rs 143.5crore to Rs 157.8 crore. I am pleased to declare a final dividend of Rs 1.75 per equityshare as an endeavour to reward the shareholders who have put so much faith in usthroughout this journey of more than 25 years.
With respect to our liabilities management your Company withstood thelitmus test very successfully during this most challenging period. The composition of ourliability mix ensured healthy ALM and a well diverse resource mix providing a testimonyto its very efficient liability management. Our capital adequacy ratio as on 31st March2022 stood at 26.35% against regulatory norms of 15% and our Tier I capital was 23.08% asagainst requirement of 10%. Our Tier II capital was just 3.27% which will increase fromtime to time depending on the requirement and also as a source of structural liquidity tostrengthen ALM.
Around 75% of our portfolio is channelled towards MSME loans whichqualifies as Priority Sector Lending. Through direct assignment and co-lendingtransactions with door-to-door maturity and derisking we are further strengthening ourliability management. There are sufficient tie-ups for the line of credit under thesearrangements also.
Over a longer term horizon too despite economic up-cycles anddown-cycles and various micro and macro headwinds including demonetisation GST the NBFCliquidity crisis and COVID amongst others we have displayed resilience and deliveredrobust and sustainable growth. During the past 15 years since we first raised capitalour AUM has increased at a CAGR of 24.58% between FY2007 and FY2022 while our PAT and NetWorth have grown at CAGRs of 23.21% and 31.62% respectively. Our Net Stage 3 Assetsremained below 2.00% over the period and we maintained a healthy return on assets andequity. Most importantly our growth journey was fuelled predominantly from internalaccruals which clearly differentiates us in the industry where capital is raised veryfrequently. All these strong enablers have given us the confidence to expect consistentand steady growth momentum in the future too.
As we move forward we intend to stay anchored to our belief thatgrowth along with quality is the key to enhance shareholders' value. We anticipategrowth for the next five years to be in the range of 20% - 25% with scope to recalibrateit depending on the macro situation prioritising asset quality and profitability therebymaintaining healthy ROA and ROCE.
We will continue serving the informal LIG and MIG class of customersspread over rural semi urban and urban areas leveraging our experience of two and a halfdecades and striving to add value to our clients.
We also believe that the SME and Housing finance sectors offers hugepotential and we plan to maintain adequate focus on these as they are expected to be ourkey growth drivers. Our distribution network within our current states in operation willbe strengthened and we will endeavour to provide one of the most efficient financialservices which we term as the Power of Distribution. We will also explore thepotentiality of entering into new geographies. Our distribution through various NBFCswhich has exhibited an immaculate track record over a long period of more than 10 yearsalso plays an important part in serving the underserved efficiently. However swiftexpansion of our own distribution network will result in a progressively larger percentageof business being sourced and serviced through our own network.
Technology plays a very important role in increasing reach andefficiencies. Our focus on technology will result in digitising our product cycles. Thisalong with selective tie-ups with fintechs will enable us to create an optimum technologyplatform which will enable us to deliver the last-mile of credit to our borrowers veryeffectively and also increase our penetration.
With respect to liability management we will continue to maintain anideal debt resource mix ensuring continuous flows of funds while maintaining optimumutilisation of capital. The assets created by the Company are expected to generate goodsecuritisation/assignment/co-lending demand and this will enable us to de-risk andmaintain the off-book portfolio. Towards achieving operational excellence we willcontinue Learning and Unlearning' which is a constant endeavour at MAS andwill strive to improve the efficiency in all areas of operation. I would like totake this opportunity to thank all our stakeholders for the confidence that they haveplaced in us and we look forward to rewarding this trust with sterling and sustainableresults. I would especially like to thank our employees and our core team in particularfor being the bedrock of strength on which we have been able to stay resilient throughouttough times. I sincerely acknowledge the support of all the stakeholders.
Before I sign off let me reiterate on behalf of Team MAS ourcommitment to our mission of "Excellence through Endeavours" and maximisingshareholders' value.
|Kamlesh C. Gandhi |
|Chairman and Managing Director |