Dear Shareowners,
Financial Year 2011 represents our third full year as a publicly listed
company, and I am happy to say that this third year has been another
great year for us. We increased our US Dollar revenues by just under
40%, substantially faster than last year, and profitability by 67%.
Over the past three years, we have maintained a compounded annual
growth rate of 42% in revenue and 40% in net profit. Interestingly,
over the past 13 quarters that we have been public, we have experienced
sequential quarter on quarter revenue growth in each quarter bar one -
the one in which one of our important clients filed for bankruptcy.
This you would agree is an incredibly consistent performance, and even
more so in the context of the trials and tribulations that our clients''
economies have endured in that period.
Our client markets have continued to evolve. In our Financial Services
business, clients are gearing up their businesses to address the slew
of new regulatory initiatives being rolled out across the world, and
this is leading to increased business and IT investments. Companies
such as ours that are able to demonstrate problem solving ability
combined with deep business understanding are benefiting from this
increased spend. Our Sales and Marketing Services clients are
substantially increasing spend on migrating and scaling their on-line
presence, and in using new online tools like social media to enhance
their brand and to improve customer perception. Our specialization and
proven expertise in these areas is providing numerous opportunities for
growth. These industry trends are broadly very supportive for us.
In the past year, we have further strengthened our client markets team
and increased our investment in marketing. These investments have
helped us expand our service offerings and offer our expertise and
capabilities to a much broader prospect audience. . As a result, we are
deepening our footprint with existing clients, and finding increased
traction with new clients as well.
Our business is complex and a positive referral from an existing client
continues to be the best way to close a business opportunity with a new
client, so I am especially pleased to say that our customers continue
to think and speak very highly of our quality of service and our
commitment to them - all direct results of our investment in people. We
ended the year with 3658 people on payroll, and we continue our
investment in training and career development by expanding the coverage
of our curriculum for imparting critical industry, product and process
training. Our people and our training programs continue to be the envy
of our clients and competitors, and the key ingredient of our success.
Our focus on technology as a key strategic differentiator in how we
deliver our services continues. Automation and process reengineering
has helped eliminate redundant steps from our business processes, and
maximized the efficiency of our services. This has helped us present
our clients with cost savings which exceed those from simple offshore
wage arbitrage, whilst also helping us reduce the need for costly, high
skilled resources and giving us the ability to scale solutions quickly.
Our clients like the way we run their business and our constant focus
on efficiency and productivity.
Our commitment to our business also manifests in the number of
successful assessments as an organization we today have - ISO 27001 for
information Security, CMM iii for software services, PCMM 3 for Human
Resources practices. These help certify and communicate the soundness
of our business to all stakeholders.
All of this has meant another year of great accolades, recognitions and
awards. This year, we ranked in the Top 50 overall - and Top 10 of IT /
ITeS - of INC 500''s Mid-Cap Companies. We were ranked top Financial
services KPO and top 20 Outsourcer in the Black Book of Outsourcing, we
were runners up in the Best Outsourcing Practice, National Association
of Outsourcing, and Global Services selected us in their Fastest
Growing 100 Companies list. Our people practices were recognized by the
Asia-Pacific HRD Congress and the Most Admired Knowledge Enterprise,
and our technology adoption by the Asia Retail Congress in for Use of
Technology in Operational Excellence. Finally, you will be happy to
learn, we are now a part of the Bombay Stock Exchange Mid-Cap Index.
And now, something I am particularly proud of. Some of you may already
know that as a firm, we have made charitable contributions from net
income in each year of our existence. Last year we formalized this
initiative by setting up eClerx Cares, our philanthropy organization,
run by a group of senior managers. As a people business, we recognize
the importance of education and upbringing, and eClerx Cares has a
mandate to partner with charities aimed at improving the livelihood and
education of children. Last year, we partnered with a number of
charitable organizations such as Child Rights and You, Aseema, Nanhi
Kali, SSRVM, MPSM, Goonj and sponsored numerous events aimed at
bringing support, comfort and joy to the lives of underprivileged
children. For instance, with the CRY-PREM project reaching out to 30
villages in the Melghat region, eClerx contribution helped enable
changes to ensure 100% child-labour free villages and 100% enrollment
of children in formal schools. I am happy to say that the eClerx Cares
initiative has been a great success, with many of our employees
volunteering time at events and programs to give back to the society
that has helped their success.
We thank you once again for your support and encouragement, and look
forward to continuing our growth and performance. Sincerely
V. K. Mundhra,
Chairman
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