My dear fellow Shareowners
I am happy to share that our Company has completed 10 years.
Financial Year 2017-18 has been an iconic year for us. Let me share with you thehighlights of the Company's performance. The Company made significant progress during theyear towards improving operational performance across its core segments and is fullygeared to capitalise on its growth aspirations. We continue to move forward in fulfillingthe vision of our legendary founder Padma Vibhushan Shri Dhirubhai Ambani to make surethat every Indian who desires a home can own it and we at Reliance Home Finance act asenablers.
While the world economy grew by 3.2 per cent and 3.7 per cent respectively in 2016and 2017 the Indian economy expanded by a sharper 7.1 per cent and 6.7 per centrespectively making it the fastest growing large economy in the world.
While the housing finance companies have been able to grow at a faster pace owing totheir focus on niche segments such as self-employed and affordable housing segments whichhave huge growth potential the initiatives and economic reforms taken by the Governmentsuch as implementation of Goods and Services Tax (GST) Jan Dhan Yojana Demonetizationetc. have been very positive for financial services sector; particularly for the housingfinance sector.
Owing to the growing housing finance sector the government's initiatives like"Pradhan Mantri Awas Yojana (PMAY) and Housing For All" by 2022; better accessto the capital markets your Company's equity shares were successfully listed on BSE andNSE with effect from September 22 2017. The existing shareholders of Reliance CapitalLimited ("Reliance Capital") the Company's holding company; were given one freeshare of RHF for every share held by them in Reliance Capital.
Today your Company is reckoned amongst India's leading housing finance companiesserving over 45000 customers and has a clear focus on creating value by expanding thebook size along with a robust growth in the net worth and superior asset quality. Overthe period we have developed our expertise in Home Loans including Affordable HousingLoans Loan against Property (LAP) and Construction Finance product segments.
Reliance Home Finance Limited is a constituent of the Reliance Group which is aprominent business house widely recognised in India and abroad as one of the leadingcreators of projects of national importance - in infrastructure power generationtransmission & distribution financial services defence manufacturing entertainmentand telecommunications amongst others.
The Reliance Group has the largest investor base in India with over 15.5 million retailinvestors. Reliance Group has over 75000 employees and serves over 200 million customers.
The Reliance Group has assets under management of over Rs 4.5 lakh crore andalso manages Government of India's Employees' Provident Fund Organisation (EPFO) PensionFund Regulatory and Development Authority (PFRDA) and Coal Mines Provident FundOrganisation (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 are:
Assets Under Management increased to Rs 16379 crore against Rs11174 crore in the previous year an increase of 47 per cent
Total income of Rs 1671 crore against Rs 1145 crore inthe previous year an increase of 46 per cent
Net profit of Rs 181 crore against Rs 173 crore in the previousyear
Total assets of Rs 15684 crore against Rs 11347 crore in theprevious year an increase of 38 per cent
Total net worth of Rs 1744 crore as against Rs 1032 crore in theprevious year an increase of 69 per cent
Considering the strong performance of your Company the Board has recommended adividend of Rs 1 per share in the first year of Listing.
Highest credit ratings
Our Company's short-term debt programme has been assigned a rating of "A1+"both by ICRA and Brickwork the highest credit quality rating assigned by the respectiveagencies to short-term debt instruments (Instruments rated in this category carry lowercredit risk in the short term). CARE and Brickwork ratings assigned our long - term debtprogramme a rating of "CARE AA+" and "BWR AA+" (Instruments with thisrating offer investors a high degree of safety for timely servicing of debt obligations).
Reliance Home Finance has always maintained the highest governance standards andpractices by adopting as is the norm for all constituent companies of the Group the"Reliance Group - Corporate Governance Policies and Code of Conduct". ThesePolicies and Code prescribe a set of systems processes and principles which conform tothe highest international standards and are reviewed periodically to ensure theircontinuing relevance effectiveness and responsiveness to the needs of investors bothlocal and global 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 greater value for all our stakeholders.
Executive Director & CEO