DEAR SHAREHOLDERS,
It is my pleasure to address you through this Annual Report for FY 2022-23.
Backed by our consistent and steady growth philosophy, our FY2023 consolidated assets
under management (AUM) increased by 29.64% year-on-year and crossed Rs.8,500 crore mark
while our total income increased by 43.27% year-on- year to Rs.990.26 crore and PAT grew
by 27.68% year-on- year. I am happy to share that your Company has achieved an important
milestone of crossing Rs.200 crore profits after tax (PAT) in FY2023 by registering a
consolidated PAT of Rs.205.82 crore. I am happy to share that the next important milestone
of crossing '10,000 crore AUM is within the striking distance, and we are confident that
will be there by the end of the year 2023-24.
On standalone basis for FY2023, AUM increased by 29.55% to Rs.8,092.56 crore while
total income grew by 44.44% to Rs.949.09 crore and PAT grew by 27.55% to Rs.200.96 crore,
on year-on-year basis. Our standalone gross stage 3 assets were stable at 2.15% and net
stage 3 assets at 1.52% of AUM as on March 31,2023 helping a sound return on assets and
equity.
Our subsidiary, MAS Rural Housing & Mortgage Finance Ltd, reported robust
performance for FY2023 with 31.57% growth in AUM to Rs.413.34 crore and 29.66% growth in
PAT to Rs.6.34 crore, on year-on-year basis. The portfolio quality of subsidiary remained
stable at 0.70% gross stage 3 assets and 0.52% net stage 3 assets of AUM as on March 31,
2023. The capital adequacy ratio (including Tier II capital) of subsidiary stood at 38.53%
of which Tier-I capital was at 28.21% as on March 31, 2023.
The Housing finance company MAS Rural Housing & Mortgage Finance Ltd. with its very
strong enablers of serving the huge affordable market, high level of capitalisation of the
company accompanied by the increased focus on its processes, operations and distribution
will be a strong value accretive preposition for the parent company in the years to come.
Post COVID-19 pandemic, FY2023 was the first full year of operations without any
interruptions in terms of lockdown and health challenges. However, the year witnessed
major global headwinds, owing to several factors that included rising inflationary
conditions among others. Amidst all these, our Company displayed resilience while
maintaining our steadfast focus on delivering robust and sustainable growth and continued
to support our diverse customers' evolving needs.
Going by our performance of the past 16 years when we first raised capital, our
standalone AUM, PAT, and Net Worth have grown significantly between FY2007 and FY2023,
showing an increase in CAGR of 24.88%, 23.46% and 30.53% respectively.
We are pleased to recommend a final dividend of Rs.1.85 per equity share thus taking
the tally to Rs.3.65 per share for the whole year, in consonance to our policy of
rewarding and commitment to shareholders who continue to trust our capabilities as we move
forward on our journey together.
As on March 31, 2023, our capital adequacy ratio on standalone basis stood at 25.25%
against the regulatory requirement of 15%. Tier I capital stands at 20.79% in comparison
with the standard norm of 10%. Tier II capital is at 4.46%. This, as maintained over the
decades; accords a robust enabler to the future growth of the company.
Our liability composition demonstrates diversified resource mix, helping us to address
the business challenges successfully. The diverse resources of liability ranging from
availing term credit, direct assignment, placing listed NCD attracting wide range of
investors and co-lending, ensures sufficient liquidity, ALM, de-risking and optimum cost
of funds which is very vital to the robust and profitable growth of the company. Our 85%
of the assets being from the MSME sector which is the key area of focus of the economy and
hence the banks and the financial institutions also, creates strong enablers for raising
our liability very efficiently.
Concerning our liability management goals, we aim to maintain an ideal debt resource
mix, which can drive a continuous flow of funds and optimum capital utilisation. Our
assets are expected to cater to securitisation/assignment/ co-Lending demand and aid
de-risking while we manage our off-book portfolio.
On the distribution front, the contribution through our own centres remained robust
during FY2023. We have expanded our reach to potentially more than 9,000 centres through
the network of 149 branches in the country. The same is further enhanced via strong
co-lending partnerships and Fintech collaborations.
We will continue our endeavour to strengthen and enhance our current distribution
network while exploring new geographies. We will also progressively move towards having a
larger chunk of business sourced and serviced via our own network. We will continue to
serve LIG and MIG customers across the nook and corner of India to enhance our customer
value. Our continued focus on the high opportunity SME and Housing Finance sectors are
expected to be key growth drivers.
Our technology-oriented goals are also right on track. We are happy to share that we
will be completing the first phase of our digitisation by the end of June 2023. Under this
initiative, all processes will be digitised end-to-end, reducing turnaround time.
With technology at the forefront, we will focus on our second phase of digitisation,
with AI to complement our credit decisioning, based on our product mix and data analysis
available. Technology will also help in increasing outreach, reducing operational costs,
improving efficiency, enabling seamless processes.
Our ongoing effort towards ‘Learning and Unlearning' will continue to help us
improve operational efficiency and achieve excellence across our overall operations.
Over the next five years, we anticipate a growth ranging between 20% - 25% on the
backing of maintaining high asset quality and healthy ROA and ROCE to enhance our
stakeholders' value.
I would like to thank all our stakeholders for their continued faith in our
capabilities. We strive to reward our stakeholders with robust and sustainable performance
year after year. The core leadership team at MAS deserves my heartiest compliments for
their unwavering commitment to excel and dedication demonstrated for over two decades now.
I would also like to thank all our employees and for their endearing support and
engagement towards achieving our broader goals, even during challenging times.
Our Company has exhibited a very robust and consistent growth over a long period of
more than 25 years. As we move ahead, team remains dedicated to its mission of
"Excellence through Endeavours" and I trust Together We Can and We Will.
Kamlesh C. Gandhi
Chairman & Managing Director.