From the Chairman’s Desk
Dear Valued Shareowners,
It is my pleasure to share with you our 29th Annual Report for the financial year 2018-19. Growth this year has been challenging but the year has been exciting on many fronts. As we look ahead to the thirtieth year, I am joined by a new leadership team that is all geared up to lead the Company through the next phase of growth.
I am excited to have Mr. Christopher (Chris) O’Connor take over as the Chief Executive Officer of the Company. Having worked with Chris for over ten years, I am confident that he will build on the rich heritage of the Company and further establish business, brand, visibility, and respect for the Company going forward. I am also delighted to welcome Mr. Sandeep Kalra to the leadership team.
During the year, our revenue was Rs.33,659.41 Million (USD 480.97 Million) and the net profit was Rs.3,516.79 Million. In February 2019, we initiated a share buyback plan to acquire shares from the market, worth Rs.2,250 Million over a period of six months. On March 31, 2019, the cash and equivalents were at Rs.14,798.26 Million.
While acknowledging that this was a difficult year, we believe that the market for our services continues to grow and our differentiated offerings provide us opportunities for sustained growth. In addition to a new leadership team, we set up growth and solutions teams focused on establishing leadership and creating unique differentiation. These initiatives have started to deliver targeted growth for the business.
Digital transformation continues to be the core theme for our customers. Businesses are under pressure and need to improve efficiency and effectiveness to compete against technology savvy upstarts. Businesses realize that to present a new face to their customers, they must leverage technology, become agile and flexible so that they can respond decisively amid rapidly changing conditions. By setting up systems that are software driven, businesses get the opportunity to present different personalities by simply reprogramming the components that hold the business together.
Software systems use agile processes and are built and deployed iteratively and incrementally. Incumbents are investing in infrastructure to facilitate the integration of large volumes of existing data to intelligently drive actionable insights. Our heritage of working on product development for technology companies has provided us an opportunity to partner with technology leaders and bring this technology to our customers. We continue to add new partners which allows us the flexibility to express different personalities to our customers.
We pride ourselves in being responsive to customer needs and requirements. Our experience in product engineering has become relevant to enterprises on the digital transformation journey. Our Software 4.0 methodology helps build robust software that can be deployed in complex and rapidly changing environments. Our work will continue to shape the future of software driven businesses while we continue to navigate through the technology shifts.
Our customers and partners continue to be our coaches and mentors and we appreciate their support and guidance. Customers have encouraged us to go beyond technology solutions to delivering business value. We responded by creating new business models and by extending our growth and solutions teams with domain experts in three industry segments - banking & financial services, healthcare & life sciences, and the industrial sector. We believe that strong technology capabilities are fundamental to delivering business value and we also continue to invest in technology areas like cloud computing, data & machine learning, and identity & security.
I am proud to share that, in May 2019, our total strength crossed 10,000. This is a significant milestone for the Company. With 29% women, our global population of 10,000 is diverse and is spread over 18 countries across the world.
Our team is our strength and I am grateful to the hard work and the efforts of our team that is dedicated to ensuring that our customers are completely delighted.
The Life at Persistent program that we launched three years back has continued to expand in scope and substance. We have extended the programs to include families of our employees and are focused on helping employees take a holistic approach to careers at Persistent and life beyond.
Our commitment to the community continues to be strong and I take this opportunity to congratulate the Persistent Foundation team for completing ten years of dedication to the community. Their efforts have enthused employees to participate and contribute to help the less fortunate. They have ensured that the financial contributions made by the Company towards corporate social responsibility extend beyond the mandatory 2% to make significant impact in the community. I am proud of what the Foundation has achieved in the first decade and I wish them all the best in the future and hope they will continue to be the catalyst for change.
In my new role as the Executive Chairman, I look forward to working closely with Chris and the new management team. I am confident that the strong foundation that we have built over the first twenty-nine years will set us up well to launch bold, new initiatives that will take the Company to new heights.
Finally, I thank my fellow shareowners for being part of the Company even through a difficult year. I assure you we will do our best to ensure that your confidence in Persistent is rewarded.
Anand Deshpande, Ph.D.
Founder, Chairman and Managing Director