Dear Shareholders,
As we step into another fiscal year, I would like to reflect on our journey over
the past year. With a deep sense of commitment to reinforce our growth strategies and pave
the path for fulfilling homeownership journeys, we are stepping up efforts to reinforce
our commitment towards customers, rebuild the organisation for the future and reach
higher.
Macroeconomic Outlook
A number of favourable macroeconomic factors are driving the growth of the Indian
housing finance sector. India's aspirational population, with over 58% of it under the age
of 35, prioritises financial independence as a key to economic prosperity. For a large
section of this population, homeownership is a major milestone, often considered a
reflection of individual success. Besides, growing urbanisation and government initiatives
such as Pradhan Mantri Awas Yojana (PMAY) aims to make affordable housing easily
accessible for middle to lower income segments. With options for availing home loans at
subsidised rates, the dream of homeownership is no longer a far-fetched aspiration.
Benefitting from favourable policies for the growth of housing and infrastructure,
Housing Finance Companies (HFCs) have uncovered tremendous growth potential. At Can Fin,
it gives us the confidence to capitalise on these opportunities and reinforce our
commitment to simplifying homeownership journeys.
Financial Performance
In FY 2023-24, we continued to focus on long-term stability and growth. While we faced
temporary challenges with disbursements mid-year, due to the implementation of new
processes, we successfully achieved an increase in disbursements in the last quarter.
Importantly, these process improvements have strengthened our ability to monitor and
manage portfolio quality. Our financial ratios remain strong, with a return on assets
(ROA) of 2.28%, return on equity (ROE) of 17.28 % and a healthy debt-to-equity ratio of
7.34%. Looking forward, we are confident in our ability to capitalise on these
improvements and target a 15% growth in Assets Under Management (AUM) for the year ahead.
Prudently Progressing
We prioritise prudent risk management policies to protect our company's economic health
and stability. We closely monitor and manage prepayment trends and potential slippages
from restructured loans. With an emphasis on leveraging our core strengths, we
particularly focused on the home loans vertical and aimed to lower exposure by limiting
the amount disbursed for loan against property (LAP). The CIBIL scores have also improved
in favour of a strong loan portfolio that reaffirms a thrust on long term, low-risk
lending procedures.
Rebuild. Reinforce. Reach Higher.
Our legacy of over three decades in the housing finance sector lends us the ability to
promote homeownership across India with a focus on friendship finance and customer-centric
service. We are continuously reinforcing our strength with a thrust on growth, asset
quality, profitability and liquidity. Building on our efforts to ensure good governance,
transparent and ethical practices, we continue our pursuit of excellence.
Backed by an experienced team, we strive to attune our services with evolving customer
preferences. Prioritising customer needs, we customise financial solutions and enable
quick approvals and disbursements to ensure convenience at every step of the process. We
also realise the importance of building a future focused Company. As a result, we are
evolving further by adopting latest technology and embracing digitalisation across the
organisation. It has not only improved customer service but has streamlined internal
processes. Besides, it has expedited loan processing, document verification and helped to
safeguard sensitive customer data.
Going beyond business profitability, we realise our responsibility towards communities.
Our Corporate Social Responsibility (CSR) initiatives revolve around healthcare,
education, livelihood generation and women's empowerment. It enables us to strengthen the
foundation of socioeconomic development of communities and bolsters our commitment o make
lasting change a reality.
Looking ahead, our Company is poised to expand its reach and seize new opportunities of
growth. We recognise technology as a key driver of progress and expect continued
investments in our IT infrastructure to improve our operational efficiency. Our
disbursement performance is also promising, with the average loan ticket size increasing
from 22 lakhs to 25 lakhs in FY2024. By FY2025, we intend to take it higher, to 27 lakhs.
I would like to thank our stakeholders, including the National Housing Bank, RBI,
Canara Bank, and regulators for their constant support. I also deeply appreciate the
hardwork and dedication of our people. With renewed focus on strengthening the foundation
of a progressive Company, we are ready to scale and succeed.
Regards,
Suresh S Iyer
MD & CEO.