It gives me great pleasure to report the highlights of the Company''s
performance and achievements for the year 2011-12 just gone by.
Our consolidated revenues, at INR 1,214 million, were up 46% over the
previous year and Net profit at INR 113 million, grew 508% over the
previous year. The performance was all the more creditable as it came
against the backdrop of two years of flat growth primarily due to the
general economic conditions. In view of this performance the Board of
Directors decided to announce a final dividend of INR 3 / share, taking
the total dividend to INR 5 / share.
To put things into perspective, it is pertinent to note that the
company has demonstrated a 24.72 % CAGR of revenues over the past 10
years (2002-2012) and also maintained an unbroken dividend record. This
has been achieved in the face of stiff competition from the scale
players, buyer behavior biased towards favoring mega vendors and
periodic market unresponsiveness arising out of dot com bust in the
year 2000, the 9/11 attacks and the financial crisis of 2008/09.
From all accounts the IT services market seems to be evolving in the
direction of demanding increasing quality levels and also of
rewarding value delivered. This is taking many forms including
independent testing services becoming part of the mainstream value
chain and by the fact that many specialist players are being invited to
hitherto forbidden bidding tables. Our company will definitely benefit
from this, as it plays into our conventional strengths. Anticipating
this, we had triggered a number of initiatives in the past one year and
have expanded our specialist offering space (building testing expertise
and Centre of Excellences in BFSI mobile app testing, and for the much
larger and complex payments processing area). The Company has also
successfully completed pilot projects in the area of mobile testing
using the concept of working with cloud platforms and using
remote test centres.
It is not surprising therefore, that the Company has been selected by
the Reserve Bank of India, through a rigorous selection process to be
its preferred testing partner for the countrywide rollout of one of its
major transformational initiatives. We are also participating in
bidding for comprehensive testing of a strategic payment platform being
undertaken by an apex body. The Specialist BFSI testing space is
growing at 30% annually and we are well positioned to be a significant
player with a good market share. We are cementing sales partnerships
with domain specialist firms to address mid tier clients and
working on our new branding strategy to capitalize on these trends.
We also view our investment in building functional expertise and
associated technology skills as a key strategic differentiator in how
we deliver our services. With our constant focus on efficiency and
productivity, we have eliminated redundant steps from our business
processes, and thus maximized the efficiency of our services which
helps our clients derive cost savings.
The past year witnessed the uncovering of a number of mega scams and
citizens discontent at the endemic corruption and poor quality of
governance in many spheres affecting daily life. The regulatory policy
and environment has also been very ambiguous and confusing for the
business sector. While responding to these challenges, your company has
been maintaining the highest standards of corporate governance by
implementing clear and transparent corporate policies and following all
the norms and guidelines laid down by RBI, SEBI, Stock Exchanges, CBDT
and other regulatory bodies both in letter and in spirit. We are proud
to be counted among the companies which have this kind of track record.
The Company has also initiated the process of implementing an ERP
system and is in the final stage of cutting over to live status
for the finance and associated functions. We have also increased our
investment in our training and talent management processes, adding to
and improving our capabilities for imparting critical industry, product
and process training.
Before I conclude, I would like to mention that our focus remains on
sustaining the momentum we have achieved this year and building on the
traction that the business has seen from different quarters. We are
confident that the investment in people, process and technology would
propel your Company to greater heights in the forthcoming years.
On behalf of the Board of Directors'', I take this opportunity to
express our gratitude to all our stakeholders, who have reposed trust
in us and look forward to your continued support to help keep the
company on the growth path in the coming years.
A VAsvini Kumar
June 15, 2012