Esteemed Shareholders,

It brings me immense pleasure to communicate with you all via our inaugural Annual Report following our recent debut on the stock exchanges. In the face of various hurdles, the preceding years have been a whirlwind for the world economy. The financial sector, in particular, encountered its share of turbulence due to geopolitical tensions. These complexities trickled into surging commodity costs and the unpredictable ebb and flow of foreign exchange and equity markets. In the midst of these challenges, the year 2022-23 stood as a pivotal juncture for Abans Holdings as we stepped into the next phase of our expansion.

In the year 2022-23, we adeptly maneuvered through the uncertainties posed by the erratic market conditions and achieved substantial growth. This accomplishment was a result of our steadfast dedication to aligning with our clients’ financial aspirations, maintaining an unwavering focus on progress, and upholding rigorous operational excellence. Our belief in our capabilities shines not just through our financial figures, but also in the faith our clients entrust in us. I extend my heartfelt gratitude to our shareholders, clients, partners, team members, and other stakeholders for turning this aspiration into a tangible achievement.

Unleashing Market Potential

As an integrated player in the financial realm, we are fuelled by the immense possibilities the industry presents. India’s financial landscape has undergone significant transformations, ushering in a new era of prospects for both individuals and businesses. This transformation underscores India’s relentless pursuit of its economic promise.

The burgeoning financial capabilities of Indian consumers have notably fuelled the demand for asset and wealth management services. Data from the Boston Consulting Group predicts that India’s wealth management industry will witness a 10% annual growth rate, projecting it to reach USD 5.5 trillion by 2025, a leap from USD 3.4 trillion in 2020. Aligning with India’s growth narrative, estimates from AMFI indicate that the Assets Under Management (AUM) of the Indian Mutual Fund (MF) Industry have quintupled in just a decade, soaring from INR 7.01 Lakh Crores on March 31, 2013 to INR 39.42 Lakh Crores on March 31, 2023.

Presently, India’s AUM-to-GDP ratio is around 14%, markedly lower than the global average of 75-80%.

However, with the growing participation observed in the Indian financial markets, the nation is primed to unlock substantial value in the years to come. CLSA India predicts that between 2021-22 and 2024-25, equity AUM will surge by 18% annually, escalating from INR 13 Lakh Crores as of January 2022 to INR 30 Lakh Crores by the close of 2024-25.

Beyond asset management, our strategic positioning in the remittance market also stands out. India holds a remarkable position as one of the world’s top recipients of remittances. In 2022, it secured the leading spot among recipient countries, welcoming a significant influx of USD 111 billion. Following closely were Mexico at USD 61 billion, and China, the Philippines, and Pakistan. This data underscores the pivotal role we play in facilitating cross-border financial flows, cementing our presence in this vital and growing sector.

Sustained Excellence in Performance

At Abans Holdings, our remarkable growth and stability in the past year manifested vividly in our financial performance for 2022-23. Our net profit experienced a remarkable 14% year-on-year growth, ascending from INR 62 Crores in 2021-22 to INR 70 Crores in 2022-23. Our operating profit similarly witnessed a robust 15% year-on-year growth, reaching INR 76 Crores on March 31, 2023, up from INR 66 Crores on March 31, 2022.

Our total AUM underwent a striking expansion, nearly doubling compared to the prior year, reaching INR 1,665 Crores during 2022-23, a noteworthy climb from INR 995 Crores in 2021-22.

This upward trend extended to our agency income, which soared by an impressive 83% year-on-year, culminating into INR 43 Crores on March 31, 2023, compared to INR 24 Crores on March 31, 2022. Moreover, the profit from our agency business experienced a staggering 354% year-on-year growth, surging from INR 5 Crores on March 31, 2022, to INR 21 Crores on March 31, 2023. Amidst this advancement, our capital business took the lead this year, attributed to our business’s high net worth. However, we anticipate that asset management and remittance businesses will serve as primary growth drivers in the future.

Our lending business demonstrated a commendable 107% year-on-year profit increase, achieving INR 12 Crores at the close of 2022-23, compared to INR 6 Crores in 2021-22. Our loan book also exhibited impressive expansion, growing by 13% year-on-year, reaching INR 167 Crores on March 31, 2023, up from INR 149 Crores on March 31, 2022.

Notably, our non-performing assets (NPA) remained at zero, reflecting our meticulous risk management practices. Furthermore, as of March 31, 2023, our debt-equity ratio impressively stood at 0.12, underscoring our prudent financial stewardship. Our Earnings per Share (EPS) advanced to INR 14.8 on March 31, 2023, from INR 13.4 as of March 31, 2022.

Fostering Sustainable Expansion

Our uniquely structured business model, consisting of 17 subsidiaries, empowers us to offer an array of financial services through dedicated entities. Our subsidiary, Abans Finance Pvt. Ltd., is currently in the process of establishing a wholly-owned subsidiary within Gujarat International Finance Tec-City (GIFT City). The intent is to strategically expand our lending operations, bolstering our presence and influence in the lending sector.

Furthermore, as an integral part of our growth blueprint, we are actively navigating the path towards securing a license to operate as an asset management company in India to enter the mutual fund industry. This strategic endeavor serves as a testament to our unwavering commitment to excel within the financial services industry. It embodies our resolve to unlock substantial avenues for growth and position ourselves as a prominent force within the landscape of asset management.

Under this banner of strategic expansion, our subsidiary entity, Corporate Avenue Services Ltd. (CASL), domiciled in the UK, has triumphantly secured a remittance/payment license sanctioned by the esteemed Financial Conduct Authority (FCA) of the United Kingdom. This offering lies at the heart of our Group, facilitating seamless cross-border transactions. It empowers high-net-worth individuals and institutional investors to execute fund transfers with swiftness, security, and cost-effectiveness. As we tread into this new market, we pledge to leverage our acumen, technology driven innovations, and unswerving commitment to customer satisfaction.

Our aspirations extend beyond our current standing as a holding company. We envision ourselves as investment stewards entrusted with the responsibility of overseeing a diverse array of schemes encompassing a wide spectrum of Alternative Investment Funds (AIF). By erecting an investment management arm, our goal is to craft an all-encompassing suite of services tailored to the needs of both individual and institutional investors who are keenly interested in exploring the realm of AIFs.

To fortify our assets under management (AUM), we have inked a Memorandum of Understanding (MoU) with SATCO Capital Markets Ltd. (SATCO). This strategic accord entails the acquisition of the SATCO Growth and Momentum Portfolio. Within its confines reside a history of exceptional performance, a cadre of investors, a substantial AUM presence, and adept fund management. The SATCO Growth and Momentum Portfolio currently commands an impressive INR 60 Crores in AUM, charting a Compounded Annual Growth Rate (CAGR) of 21.6% since its inception. These strategic alliances through mergers and acquisitions are poised to propel our growth trajectory and further amplify our presence.

Concluding Remarks

In closing, our commitment to create value reverberates across the entire spectrum of stakeholders - be it our valued customers, esteemed shareholders, esteemed clients, dedicated employees, and every individual who contributes to our voyage. Anchored by a robust foundation, I stand resolute in the conviction that our journey will flourish, surmounting challenges and seizing forthcoming opportunities. The combined force of our entrepreneurial spirit, innovation, nimbleness, and unwavering dedication fuels our ambition to assume a vanguard role in shaping the tapestry of India’s financial services landscape. The combined force of our entrepreneurial spirit, innovation, nimbleness, and unwavering dedication fuels our ambition to assume a vanguard role in shaping the tapestry of India’s financial services landscape.

Mr. Nirbhay Vassa

Whole-Time Director and
Chief Financial Officer