My dear fellow Shareowners
It gives me great pleasure to share with you the highlights of our Company'sperformance during 2017 - 18. Reliance Capital made significant progress during the yeartowards improving operational performance across its core businesses and is fully gearedto capitalise on its growth aspirations. We continue to move forward in fulfilling thevision of our legendary founder and my father Padma Vibhushan Shri DhirubhaiAmbani to attain financial empowerment for millions of ordinary Indians and in theprocess enable Reliance Capital to become one of India's leading financial services'players. Reliance Capital Limited a part of the Reliance Group is one of India's leadingprivate sector financial services companies. It ranks amongst the top private sectorfinancial services and banking groups in terms of net worth. The Company is a constituentof MSCI Global Small Cap Index.
Reliance Capital has interests in asset management and mutual funds pension fundslife health and general insurance commercial and home finance stock broking wealthmanagement services distribution of financial products asset reconstruction proprietaryinvestments and other activities in financial services. Reliance Capital Limited is aconstituent of the Reliance Group which is a prominent business house widely recognizedin India and abroad as one of the leading creators of projects of national importance - ininfrastructure power generation transmission & distribution financial servicesdefence manufacturing entertainment and telecommunications amongst others. The RelianceGroup has the largest investor base in India with over 15.5 million retail investors.Reliance Group has over 75000 employees and serves over 200 million customers. TheReliance Group has assets under management of over Rs 4.5 lakh crore and alsomanages Government of India's Employees' Provident Fund Organisation (EPFO) Pension FundRegulatory and Development Authority (PFRDA) and Coal Mines Provident Fund Organisation(CMPFO) funds.
Currently the Reliance Group has assets worth Rs 350000 crore net worth of Rs70000 crore and cash flows of over Rs 21000 crore.
The key financial highlights on a consolidated basis are:
Total income of Rs 19898 crore (US$ 3.1 billion) against Rs17640 crore in the previous year an increase of 13 per cent
Net profit of Rs 1309 crore (US$ 201 million) against Rs 1086crore in the previous year an increase of 21 per cent
Earnings Per Share (EPS) of Rs 51.8 (US$ 0.8) against Rs 43.0 inthe previous year
Total assets of Rs 93851 crore (US$ 14.4 billion) against Rs82209 crore in the previous year an increase of 14 per cent
Total net worth of Rs 16605 crore (US$ 2.6 billion) These robustfinancial numbers have enabled us to recommend a dividend of Rs 11 per share against Rs10.50 per share in the previous year.
Highest credit ratings
Our Company's short-term debt programme enjoys a rating of "A1+" by ICRA thehighest credit quality rating assigned to short-term debt instruments. Instruments ratedin this category carry lower credit risk in the short-term. CARE assigned the long-term debt programme a rating of "CARE AA+". Instruments with this rating areconsidered to be one of the best credit qualities offering high safety for timelyservicing of debt obligations. Such instruments carry lower credit risk.
Achievements during the year across key operating businesses Reliance Nippon Life AssetManagement managed over
Rs 396370 crore (US$ 61 billion) across its mutual funds pension funds managedaccounts and hedge funds an increase of 13 per cent. The income from operations rose by26 per cent to Rs 1815 crore (US$ 279 million) while profit before tax was at Rs 726crore (US$ 112 million) as against Rs 581 crore in the previous year an increase of 25per cent. Reliance Commercial Finance is amongst the leading SME lenders in theIndian non-banking finance space with a focus on transforming itself into a diversifiedand new-age finance solutions provider both in the commercial and consumer finance space.Reliance Commercial Finance offers a wide range of products which include SME LoansMicrofinance Loans Against Property Infrastructure Finance Agriculture Loans SupplyChain Finance Two-wheeler Financing and Used Car Loans. Disbursements rose to Rs 10061crore (US$ 1.6 billion) while the Assets Under Management stood at Rs 16475 crore (US$2.5 billion) as on March 31 2018. This loan book is spread across 51400 customers fromtop 39 Indian cities.
Reliance Home Finance (RHF) provides a wide range of solutions like Home Loansincluding Affordable Housing
Loans Loans against Property (LAP) and Construction finance. RHF also providesproperty services that help customers find their dream homes / properties. The AssetsUnder Management increased by 47 per cent to
Rs 16379 crore (US$ 2.5 billion) as on March 31 2018. The total income increased by46 per cent to Rs 1671 crore (US$ 257 million). The business achieved a profitbefore tax of
Rs 272 crore (US$ 42 million) as against Rs 138 crore for the year ended March 312018 an increase of 97 per cent.
Reliance General Insurance (RGI) is amongst the leading private sector generalinsurance companies in India with a market share of 7.7 per cent. RGI's gross writtenpremium for the year increased by 28 per cent to Rs 5122 crore (US$ 788 million). Theprofit before tax was at Rs 165 crore (US$ 25 million) as against a profit of Rs 130 crorein the previous year an increase of 27 per cent.
Reliance Nippon Life Insurance (RNLI) is amongst the leading private sector lifeinsurers with a market share of 1.5 per cent in the private sector. RNLI's total premiumwas
Rs 4042 crore (US$ 622 million) in the year. Renewal premium for the year rose by 6per cent to Rs 3154 crore (US$ 485 million). RNLI's New Business Achieved Profit(NBAP) margin was at 37.7 per cent for the year. The total funds under management stood atRs 19096 crore (US$ 2.9 billion) an increase of 11 per cent. The Embedded Valuerose by 6 per cent to
Rs 3220 crore (US$ 495 million).
The broking business consists of Reliance Securities one of the leading retailbroking houses in India provides a varied customer base with access to equities equityoptions and wealth management solutions. We had nearly 957550 broking accounts as onMarch 31 2018. The average daily equity broking turnover was approx. Rs 5335 crore (US$821 million). In wealth management the AUM rose by 47 per cent to over Rs 6060 crore(US$ 932 million) as on March 31 2018. The distribution business is a comprehensivefinancial services and solutions provider assisting customers with access to mutualfunds insurance products and other financial products having a distribution network ofapprox. 100 branches and 1300 customer touch points across India. The business achievedrevenues of Rs 350 crore (US$ 54 million) for the year ended March 31 2018. The profitbefore tax rose to Rs 49 crore (US$ 8 million) for the year ended March 31 2018.
Transformational initiatives being undertaken by
Government JAM (Jan Dhan Aadhaar Mobile) Yojana the constitution of IndiaStack Start-Up India and GST and an unrelenting focus on financial inclusion - areredefining financial services in the country.
We at Reliance Capital have been investing in technology analytics and distribution totake advantage of an increasingly digital and formalising economy and provide simple andeasily accessible solutions to the millions of hitherto underserved Indians.
Over the coming years we will accelerate our investments in emerging technologiesbig-data analytics and AI/ML and deeper digitisation to offer a comprehensive andcompetitive suite of solutions across the life-style needs of the common person.
We will also leverage the digitising economy to enhance our distribution network witha mix of physical and digital architecture such that our products are available acrossthe country including semi-urban and rural India.
We believe that these initiatives will further strengthen our position as a leader inproviding innovative and comprehensive financial solutions in the country.
Reliance Capital has always maintained the highest governance standards and practicesby adopting as is the norm for all constituent companies of the Group the "RelianceGroup - Corporate Governance Policies and Code of Conduct". These Policies and Codeprescribe a set of systems processes and principles which conform to the highestinternational standards and are reviewed periodically to ensure their continuingrelevance effectiveness and responsiveness to the needs of investors both local andglobal and all other stakeholders.
The Company continued to contribute actively to community welfare activities and tookup several initiatives and measures related to education and healthcare.
Our founder the legendary Padma Vibhushan Shri Dhirubhai Ambani gave us a simplemantra: to aspire to the highest global standards of quality efficiency operationalperformance and customer care. We remain committed to upholding that vision. Dhirubhaiexhorted us to think big. With your continued support we will think bigger. Indeed notjust bigger but better creating ever greater value for all our stakeholders.
|Anil Dhirubhai Ambani |