Moneycontrol Be a Pro
Get App
SENSEX NIFTY
SRG Housing Finance Chairman's Speech > Engineering - Heavy > Chairman's Speech from SRG Housing Finance - BSE: 534680, NSE: N.A
YOU ARE HERE > MONEYCONTROL > MARKETS > FINANCE - HOUSING > CHAIRMANS SPEECH - SRG Housing Finance

SRG Housing Finance

BSE: 534680|ISIN: INE559N01010|SECTOR: Finance - Housing
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Oct 22, 16:00
80.00
0.4 (0.5%)
VOLUME 4,289
SRG Housing Finance is not listed on NSE
Mar 16
Chairman's Speech (SRG Housing Finance) Year : Mar '18

Dear Shareholders,

I welcome each one of you, my shareholders on this auspicious time when India as a Country is on the cusp of achieving GDP growth that can exceed 7% in 2018 and 20191.

The year 2017-18 for your Company was earmarked by robust growth in business operations aided by strong demand in the housing loans. When we look back at our past and reflect on our accomplishments, it only reinforces our belief of the diligence and commitment towards building a business with strong foundation that has long term enduring qualities. We began our journey more than a decade ago and decided to choose a path which not many had ventured into. We want to say this aloud that we have successfully addressed an overlooked section of the society. It was a dream to fulfill the joy of owning a home for the economically lower and weaker sections of the society. Although at the very beginning of our journey, there were several hurdles that looked insurmountable in the form of the funds and people required to carry out the operations. The anchors of strength, confidence, resilience and grit with wealth of experience and knowledge amassed helped to build a unique housing finance business model. It is heartening to know that your Company has capitalized well on this opportunity and registered a stellar performance on all parameters.

A holistic growth in an economy such as India can be achieved and bolstered through the strong pillars of housing, infrastructure, agriculture, etc. The housing finance industry is fragmented as the market is addressed by not only banks but also by a large number of housing finance companies (HFCs).This has given the customer a wide variety of choices to pick from in availing a home loan. While this has promoted competition; it has also created efficiency within the industry

The traditional means of informal lending, in the rural places, by the so-called ‘Sahukars’, gold merchants and other lenders are available at a huge cost. We are witnessing a marked shift to formal mediums of borrowing which offer attractive rates of interest with transparent terms and conditions. This has enabled HFCs like your Company to address a larger section of the rural market and tap the new and existing demand for loans.

The Indian housing finance industry yet again witnessed a growth of around 16%10 in the year 2017-18. Growth can be attributed to the steps implemented by the government towards real estate viz. RERA Act and government thrust on Housing-for-All by 2020 via the Pradhan Mantri Awas Yojana (PMAY). These initiatives have begun to yield benefits to the industry.

At SRG, we are focusing our efforts towards increasing our housing finance portfolio. To highlight our Company’s achievements, our Assets Under Management (AUM) have increased 26 times in span of seven years from Rs. 7.57 Crores in FY12 to Rs. 200.28 Crores in FY18. This is a quantum leap which indicates two things - demand for housing loans far exceeds the supply and preference towards formalized channels of housing loans in rural areas. This opens up the doors of opportunities to be tapped by SRG thus giving us confidence to better our financial performance in the years to come.

SRG’s business activities are bifurcated in three business segments viz. Housing Loan, Loan Against Property (LAP) and Builder/Project Loans. The bulk of business is garnered from housing loan which constitutes 79.08%. As for the borrowings, we have about 70% from Banks and balance is a mix of Non-Convertible Debentures (NCDs) and Financial Institutions (FIs).

Some of the key developments in FY18, which I would like to point out are:

- Issued Non-Convertible Debentures of Rs. 25 Crore on private placement basis in FY18; for the first time since incorporation of the Company

- Appointed Deloitte Haskins & Sells LLP for Management Audit of the Company.

- Credit Rating upgraded from BWR BBB- (BWR Triple B Minus) Outlook: Stable to BWR BBB (BWR Triple B) Outlook: Stable by Brickwork Ratings.

Our performance for FY18 was stellar and we are gratified with the efforts which are bearing fruits. We at SRG will continue to keep up the momentum.

The Income from Operations rose from Rs. 14.55 Crore in FY17 to Rs. 34.26 Crore in FY18, a robust growth oRs. 134.47% YoY. Net Interest Income grew from Rs. 8.31 Crore in FY17 to Rs. 18.12 Crore in FY18 marking a growth oRs. 117.93%YoY. Profit After Tax (PAT) grew from Rs. 2.71 Crorein FY17 to Rs. 9.62 Crore in FY18 registering a strong growth oRs. 256.29%YoY.

The Loan Portfolio witnessed a rise from Rs. 81.83 Crore in FY17 to Rs. 200.28 Crore in FY18 registering a growth oRs. 144.75% with high growth in the Housing Loan and LAP loan products. The compounded annual growth rates in housing loan segment was 74.02% and that for the nonhousing loan segment was 46.36% between FY14-FY18.

The Shareholder’s Fund increased to Rs. 41.49 Crore; a growth oRs. 22.13% YoY. The Capital Adequacy Ratio (CAR) reached 33.38%. Your Company has been able to improve its operational efficiency as witnessed from the drop in the Cost to Income ratio from 53.44% to 42.78%.

Your Company considers it important and necessary to look after its stakeholders and ensure they participate in the growth of SRGHFL. I would like to announce that the Market capitalization has increased nearly 7 fold from Rs. 43.76 Crores in FY14 to Rs. 302.90 Crores as on FY18.

I am pleased to share with you that your Company was felicitated with awards in FY18. Your Company was adjudged amongst the “Top-100 SMEs in India” by Skoch Group and Awarded with Skoch Order of Merit on 51th Skoch Summit and it was awarded as “The Fastest Growing Housing Finance Company of the Year” by ET NOW BFSI Award.

This was a result of our focused efforts in providing best-in-class services to our esteemed customers and also educating them on the process of availing the loan facilities with SRG.

Your Company has always looked to spread its footprints and has done so after careful evaluation of markets SRG expanded its geographical presence and as on FY18 the Company has 29 branches/offices across 4 states viz. Rajasthan, Maharashtra, Madhya Pradesh and Gujarat.

I am happy with the performance of the Company, however, I believe we have just begun this growth journey. We will continue to strive to perform better in the future. We will look for newer avenues of growth, remain prudent in our lending operations and will keep improving our serviceability towards our customers both existing and new. The demand catalyst continue to be strong and with the thrust from the government schemes to support growth in the real estate and infrastructure industry makes a Company like ours a key beneficiary.

I would like to express my gratitude to our Customers, Employees who have made your Company what it is today, and all our stakeholders including NHB, RBI, SEBI, MCA, the Stock Exchange(BSE), Depositories, Bankers, Financial Institutions, Trustee, Shareholders, Debenture holder, RTA, Service Providers and Counselors of the Company who have reposed their trust in us and given us constant support.

With best wishes,

Sincerely,

Sd/-

Vinod K. Jain

Managing Director

DIN: 00248843

Date: - 28.05.2018

Place: - Udaipur

Source : Dion Global Solutions Limited
Quick Links for srghousingfinance
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.