Dear Valued Shareowners
Hope you and your family continue to be in a good health and spirit in this situationof COVID -19 pandemic. It is my pleasure to present you the Company's overall performancefor the financial year 2019-20. With continuous efforts and consistent execution of ourstrategies the Company has steadily expanded its scale strength and reach throughout theyear. As known to every one of us financial year 2020 has remained volatile andchallenging for various industries with several macro-economic concerns like escalation inUS-China trade tensions lower investment activity fall in oil prices etc. Neverthelessequity markets have enjoyed a bull run for most part of the year with Sensex and Niftytouching an all-time high in January 2020 before crashing down in March'2020 by over 38%from its all time high witnessing one of the fastest crash in stock market history.Despite all challenges we continued to create meaningful value not only for our clientsbut also for co-owners by enhancing our branch network and providing wide range ofinvestment solutions.
Indian economy has faced various headwinds during the year such as tighter liquidityconditions slowdown in consumer demand default of major housing finance companies aswell as the relentless Covid-19 pandemic. There are uncertainties around economic recoveryand seems it will take the better part of the year for our economy to return tonormalcy.However I am optimistic on our growth potential. It is rightly said that "whengoing gets tough tough gets going". Despite many challenges during the yearMonarch stood up and continued its march towards achieving consistency in business growth.
Our Company has achieved respectable growth during the year under review and KeyHighlights of our achievements are as under:
1. Expanding Client base: We strive to develop and sustain a relationship with ourclients through multiple channels. It is evident from the fact that our aggregate clientbase has reached to 249766 in FY 2020. There has been an average 6% YoY increase in ourclient base during past four years.
2. Wealth Management: We obtained NPS license in 2017 for distribution of pensionplans. Besides our average MF distribution AUM has increased by average 14% during pastfour years.
3. Merchant Banking: Company which was targeting retail IPO's till now hassuccessfully ventured as a Lead Investment Banker for Institutional Public Offers and hasraised funds for a large corporate. Though revenue from Merchant Banking division reducedin FY 2020 due to dry primary market revenue from this division reported an average 145%jump in past four years.
4. Insurance Distribution business: We have expanded our Insurance distributionbusiness during the year which is reflected in 27% higher Premium collection figure in FY2019-20 as compared to FY 2018-19.
5. Expanding our Wings: Our physical branch network plays an important role inserving our customers' Investment needs. Through a PAN-India network of branches andcustomer touch points backed by our digital infrastructure we provide a comprehensiverange of financial products and services to our customers. We own 61 branches and 575business associates across India with a presence in 218 cities across 22 states. Duringthe year the Company has set up six additional branches across the country.
6. Number of sub-brokers partnered with us are 575 as at 31st March 2020 as compared to578 as at 31st March 2019.
7. Product baskets:
Monarch offers a wide range of products within the BFSI gamut such as
Stock Broking services in Equity Commodity & Currency Stock markets;
Distribution of Initial Public Offer (IPO) FPO QIP products;
Distribution of Mutual Fund products Bonds FDs and NPS;
Distribution of Life Insurance & General Insurance Policies of variousInsurance companies
Depositary (Demat) services
Investment Banking Services.
8. Digital Progression
Digital progression is a journey and Monarch is continuously evolving its digitaltrading platforms mobile apps and web portals. The Company is committed to providesecured and seamless trading platform to its customers. Gradually number of clients usingMobile apps has increased.
Technology has brought the whole world at our fingertip and hence We believe thattechnology is an important growth driver of all our future strategies. We thrive to investin tech nology and enhance our clients overall investment experience.
9. Awards & Recognitions:
Awarded by NSE as Best Regional Retail Broker 2018;
Awarded as Times Retails Icon 2016-17 in category of Investor - Advisory inEquity Currency & Commodity.
Awarded as Top performer in NSE Cash Market in 2015-2016.
Awarded as Top Performer in Active Accounts (Big DPs) of NSDL star Performer in2013 & 2015.
Awarded as Top Performer in New Accounts - Opened (NON - Bank Category - 2ndPosition) of NSDL Star Performer in 2014.
Award for Leader in GOGREEN Initiative of NSDL Star Performer in 2014.
CREATING VALUE FOR MY C i/VNERS
At Monarch we value our Stakeholders and we thrive to create value for all of us.
Shareholders and Investors
ROE: 4 year average 21.63%
ROA: 4 year average 4.13%
PAT: 4 year average 14.26%
Wide product range to provide one-stop financial solutions
Right Investment advice through robust research wing
Availability of Online / digital platforms for Client for investments andpayouts and for other information
Availability of PAN India Branch and Sub broker network
The Stimulating and rewarding work environment
Equal opportunity and diversity
Strong culture of learning and development
High employee engagement
Government and Regulatory bodies
Accountable and Responsible taxpayer
Ethical and transparent business practices
Compliance with the relevant regulations and guidelines
Contribution to industry and regulatory working groups
Contributing via CSR to Society at large
At Monarch our clients are at the heart of everything we do. We are committed tocontinuously upgrade our service standards in alignment with the constantly evolving needsof our clients. We aspire to provide a secure convenient and hassle-free investmentexperience to our clients.
Technology will drive the force
The cumulative impact of the slowdown in global markets rising trade barriers oilcrisis geopolitical conflicts and of course the corona pandemic (Covid-19) resulted inweakened economic activities lower private consumption private investment and exports.While the Government's fiscal packages are expected to help economic recovery uncertaintylooms over the timeframe. In the midst of all this all of us have experienced how we livelife is transforming rapidly. A few signs of these include the renewed level oftechnologies that can today help us to work or run our offices from wherever we are. Manyof these trends are indicative of future adaptations and will also stay with us even afterthis storm has passed. In all of this we believe businesses that are already leaningtowards technology should stay ahead and in some cases rise forward. We believe that inToday's era digital trading platforms and user-friendly mobile applications will drivethe business.
Hence in upcoming years the Company will keep investing in Technology and digitaltrading platforms to provide a secure and more user-friendly investing experience to ourclients.
Expanding Customer base
Your Company is an example where despite the lockdown we have been able to providetimely services as well as witness a surge in business revenues during Q1 2021. In theupcoming year we will strengthen our e-KYC process and aspire to increase Client base.
Good corporate Governance
At Monarch good corporate governance has always been by choice rather than by rule.Our focus for effective corporate governance is marked by transparent processes andethical values. Strong governance is the foundation for establishing trust and promotingengagement between the Company and its stakeholders.
Going forward our focus on technology knowledge talent processes brand &culture and intersegment synergies will pave the road for achieving milestones across allbusiness verticals.
Finally I would like to thank my fellow Board members and our young and energeticC.E.O./C.F.O. and the entire Monarch team for their efforts and valuable contribution andthe stakeholders for their continuous support in our vision.
Vaibhav J Shah jr
- MNCL Group of Company.