Dear Shareholders,
Despite popular lore, the world's journey coming out of the Covid-19 pandemic wasn't
particularly rosy. While we crossed one major hurdle, we were faced with another one. If
last year was about the Russia-Ukraine war, this year is about inflation, the resulting
increase in interest rates by Central Banks in some major economies of the world and
recession. While a fear of an impending recession in the United States creates ripples of
fear across the world, our Reserve Bank, along with our Government, have been able to rein
in inflation. Although occasionally, we do have our share of exorbitant tomato prices and
unseasonal rainfall, which takes a toll on various crops, the Government's timely
monitoring and resolution measures are able to tackle the problem before it becomes
unsolvable.
Additionally, this year a recurring adverse weather phenomenon known as "El
Nino" has plagued the world more than usual. To put it simply, El Nino is the unusual
warming of the surface water of the Pacific Ocean, which can cause dramatic changes to the
weather in the surrounding areas. In India, El Nino has wreaked havoc through unseasonal
rainfalls, which has severely affected the crops, as is visible through the sky high food
prices.
Lastly, the financial world in which we operate, is witnessing strong growth on the
back of largely clean balance sheets, despite the sharp rise in repo rates over the last
year. The unsecured and vehicle loan segments witnessed the highest growth, clocking in
growth rates above 25%, which is not only good for your Company but also great for the
economy. High credit offtake means high consumption, which means high confidence of the
general public in the economy.
Economic Outlook
Maintaining our long term average, the Indian economy, measured by the GDP growth rate,
expanded by 7.2% in the last year. No small feat by any standard. Additionally, the
prospects for the coming year look particularly bright and a reasonable fillip in the
economic activity can be expected leading upto May 2024, given the election year.
Further, it is noteworthy to mention a recent statement by Goldman Sachs Research which
predicts that given our growth trajectory, India will be a larger economy than the United
States by 2075.
Across major countries in the world, high interest rates, inflation and the risk of a
recession presents a cloudy image of the future. India, however, dubbed the golden bird,
continues to outshine.
Intec Outlook
As last year, the Company continues to work profusely to repay its lenders, whose
relentless support has been reassuring as the Company weathers these tough times.
Undoubtedly, when one enters a downward spiral, it takes time to get back up. Our
competent team, however, only continues to strengthen their skills - resolving complex
NPAs at a breakneck speed - during these times. The task of recovering money from
substandard assets is nothing short of climbing Mt. Everest; there is a peak. It just
takes extraordinary energy to get there. But our team labours on and to us, the peak is
starting to appear.
We have no doubt on the skills that we as a company have been developing. Shareholders,
your patience has not and will not be in vain.
On behalf of the Board of Directors, I would like to extend my gratitude to our
Shareholders, Customers, Bankers and all other Stakeholders who continue to support us. I
would also like to thank our team members who remain laser focused on producing meaningful
results.
Sanjeev Goel
Managing Director
DIN:00028702.