Dear Shareholders,
It gives me great pleasure and immense pride in placing before you the
31st Annual Report of your Company for the financial year 2023-24, marking yet another
remarkable chapter in our journey together.
Global economy continues to present a mixed picture. Multiple factors
like the on-going geopolitical conflicts, wide-spread elevation of debt, extreme weather
conditions and elections in many parts of the world continue to contribute to the
uncertainty of the Global Economic Outlook. Encouragingly, inflation has softened over the
highs of the previous year and is expected to continue to moderate. Global GDP growth is
expected to remain low at 3% for 2024. Country variations will continue, with different
parts of the world growing at varied pace. The Indian economy was among the
fastest-growing in the world before the onset of the COVID-19 pandemic. In the years
leading up to the global health crisis, the country's economic indicators posted gradual
improvements. The twin deficits, namely current account and fiscal deficits, narrowed,
while the growth inflation mix showed a positive and sustainable trend. As the country
progresses, demand for credit is likely to remain strong, especially among Micro, Small
and Medium Enterprises (MSMEs) and retail, and is projected to grow by 13.5-14.0 per cent.
Expansion of business operations into newer loan segments under the New
Brand name
“GrowU. Money” has received positive response under its pilot
project in the areas of lucknow and Kanpur, it is now inter alia expanding further into
central and eastern Uttar Pradesh covering Prayagraj, Varanasi, Sonbhadra, Ayodhya, Deoria
and Gorakhpur regions. The Company had also entered into various Business Correspondent
Agreements for expansion of its business. The Company has also digitalized the onboarding
disbusrement process of small ticket sized Loan with the monthly run rate of approx Rs.
100 Lakhs with an interest rate ranging between 24-33% p.a.
“GrowU. Money”, founded with the mission to democratize
financial access, has consistently focused on providing innovative financial solutions to
individuals and businesses. From its inception, the company has embraced cutting-edge
technology to offer services such as personal finance management, investment advisory, and
secure digital transactions. This commitment to innovation has not only attracted a broad
customer base but also garnered significant investor interest.
In the rapidly evolving landscape of fintech, the Company emerged as a
formidable player, setting new benchmarks for growth and innovation. As the company
reports its latest financial performance for the stock exchange, it is evident that
strategic vision, technological prowess, and customer-centric approaches have propelled
the Company to new heights.
We are committed to maintaining the highest standards of corporate
governance credit scoring model, to leverage data analytics and modelling techniques to
help assess clients' credit worthiness. We have also expanded our team of experienced
professionals, who bring their expertise to bear on our operations in order to enhance our
capacity to serve our customers better. Your Company strong financial performance has
solidified its position as a leader in the fintech & NBFC sector. The company's
innovative solutions and strategic foresight position it well to capitalize on emerging
trends in digital finance. Looking ahead, several factors are expected to drive further
growth:
Expansion into New Markets: Plans to enter new geographical markets and
diversify service offerings are likely to open
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up new revenue streams.
Enhanced Product Offerings: Upcoming product launches and enhancements
are set to attract a wider audience and
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increase user engagement.
Sustainability Initiatives: A focus on sustainable finance and ethical
investing is expected to resonate with socially
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conscious investors and users.
Your Company has developed a new strategic plan for growth in order to
achieve transformation in its preparation for the future. The Company intends to continue
its efforts of mainstreaming financial inclusion and providing affordable credit to
customers in the lower half of the socio-economic pyramid. The Company aims to create
value for its customers, employees, and shareholders, by expanding operations in existing
areas, expanding to newer geographies through organic, as well as inorganic opportunities
and exploring new ways in its journey to the 'next'.
At the heart of everything we do, we try to deliver excellent service,
making customers connected with us, feel recognised, respected and valued with each
interaction. Over more than three decades of rich knowledge enables us to develop products
and services according to the specific needs of our customer across various locations. Our
continues focused on stringent credit norms has helped us in maintaining assets quality
over the years. Quality and Profitability has been the underlying philosophy that has
guided your Company over the years and shall continue to do so in the future as well. As
always, preservation of asset quality will remain a key imperative.
The year 2023-24 has been a great one for us, as we ended the year with
the highest ever disbursements and portfolio size, with the fully capacitized and diverse
management team by Company's expansion into central and eastern Uttar Pradesh and many
more. We are constantly building on our existing strengths, while at the same time
envisaging our business priorities to reach new
horizons of growth and opportunities and also re-assured stability and
soundness in terms of overall business performance by achieving revenue from operations of
12,185.29 Lakhs as against 5,557.17 Lakhs in the previous year and recorded profit
before tax of 8,437.63 Lakhs as against 1,110.86 lakhs in the financial year 2022-23.
At U. Y. Fincorp Limited, employees are an integral part of the
organization's journey isn't a trite saying. Every HR strategy that we adopt, aims at
helping employees contribute at the highest, perform at their peak by building the right
skills, eliciting the right attitude. In an increasingly competitive market for talent,
the Company continues to focus on attracting and retaining right talent. It is committed
to provide right opportunities to employees to realise their potential. Your Company
focuses on widening organisational capabilities and improving organisational effectiveness
by having a competent and engaged workforce. Our people are our partners in progress and
employee empowerment has been critical in driving our organisation's growth to the next
level.
On behalf of the Board and on my own behalf, I place on record my
sincere appreciation and gratitude to our Bankers, RBI, SEBI, MCA, Registrar and Share
Transfer Agents, Registrar of Companies, Stock Exchanges, Depositories, Customers,
Business Associates & Auditors for their continued support and the confidence they
have reposed in the Company. I record my special appreciation of the tireless efforts of
Team U. Y., a dedicated and loyal band of people who have displayed unswerving commitment
to their work in these challenging times and helped the Company deliver strong results. I
owe my gratitude to the Company's valuable shareholders for their continued patronage
& co-operation and seek their continued support and cooperation in future.
Sincerely,
| Sd/- |
| Udai Kothari |
| (Chairman & Managing Director) |
| (DIN:- 00284256) |