It has been yet another year of superlative performance by your Company. From excitingnew acquisitions to winning new clients from excellent financials to exceptionalprogress this year has indeed been remarkable. It is my privilege to welcome to the 31stAnnual General Meeting of 8K Miles.
Let me briefly discuss the economic backdrop for the year 2016-17. Despite facingchallenges at the domestic level along with a rapidly transforming global landscape theU.S. economy is still the largest and most important in the world. The U.S. economyrepresents about 20% of total global output and is still larger than that of China.According to the IMF the U.S. has the sixth highest per capita GDP (PPP) surpassed onlyby small countries such as Norway and Singapore. The U.S. economy features ahighly-developed and technologically-advanced services sector which accounts for about80% of its output. The U.S. economy is dominated by services- oriented companies in areassuch as technology financial services healthcare and retail.
India continued with its economic surge with 7.6% growth in GDP making it the fastestgrowing major economy in the world for the second year in a row. The government'slong-term initiatives like Make in India Housing for All and Digital India have revivedsentiments and confidence for consumers and investors alike. India is the most attractiveinvestment destination in the world according to a survey by global consultancy firmErnst & Young (EY). Sectors projected to do well in the coming years includeautomotive technology life sciences and consumer products.
As far as the IT industry is concerned data from NASSCOM indicates that IT-BPMindustry (global) grew by 0.4% in CY 2015 to US$ 1.2 trillion. Of this IT Servicescomprise US$ 650 billion. India's share in global sourcing market (IT Services) of US$97-99 billion stands at 67%. NASSCOM projects revenue of US$ 175-190 billion for Indiafrom IT services market with a focus on bimodal IT gaining share in both traditional anddigital markets increased emphasis on value addition and innovation gaining customerexperience building digital talent pool. The future of the industry is in ManagedServices and for that to become reality collapsible infrastructures such as CloudComputing and low- cost affordable technologies will make it a key priority on enterprisecustomer's mind.
Cloud continues to dominate the overall IT spending. According to Gartner theworldwide public Cloud services market is projected to grow to a total $204 billion at16.5 percent in 2016 up from $175 billion in 2015. The highest growth will come fromCloud system infrastructure services (infrastructure as a service [laaS]) which isprojected to grow 38.4 percent in 2016. Public Cloud services market in India is expectedto grow by 37.5 percent to touch US$ 434 million. India's economy picked up in Q4 FY 2015driving growth for the full fiscal year to accelerate to a six year high.
2015-16 has been an excellent year for your Company. The Company continued itsfastpaced progress with two new acquisitions. The Company continued its dominance of LifeSciences Pharmaceuticals and Healthcare sectors. The strong IP in CloudEzRxCloudEzCare EzIAM and EHR Recon provide the Company with strong platform forgrowing its project revenues as well as its annuity revenues.
During the year Total Revenues increased to Rs 272.14 crores compared to Rs 125.13crores in the last fiscal year an increase of 117%. EBIDTA for the year rose by 130% toRs 88.72 crores against Rs 38.55 crores in the previous year. PAT for the year was Rs53.23 crores compared to Rs 23.09 crores last year a rise of 130%. EPS for the year wasRs 36.34 per share compared to Rs 18.35 per share in the previous year.
Your Company has deep domain expertise in Life Sciences Pharmaceuticals and Healthcaresectors. It is helping the highly regulated customers rapidly move to Cloud with variousCloud solutions and services including Real World Analytics Genomics Big Data projectsand new IoT efforts. Large enterprise customers are starting to utilize public Cloud tomove existing and brand new applications that require business agility elasticity andscale at a fraction of the cost. This will require newer DevOps processes to be adopted bythese organizations to keep up with demand and scaling requirements and face the rapidlyshrinking innovation cycles. Your Company continues to work with enterprises to leverageCloud for faster innovation increase in productivity and decrease in costs leading to asignificant transformation and edge.
Our recent acquisition of NexAge Technologies one of the principal regulatorycompliance and technology solutions firms in the U.S. with more than 15 years ofexperience in computer systems validation quality review vendor audits data analysisand migration as well as process governance for the life science and pharmaceuticalindustry has brought significant experience in system validation mandated for regulatedsystems and working with GxP guidelines. This helps to provide services that helpPharmaceutical companies achieve gold standard in compliance improve quality and bring inoperations efficiencies across the entire product development lifecycle.
It is estimated that by 2018 more than 60% of all enterprises will have at least halfof their infrastructure on Cloud-based platform.
Financial services is the sector we are focusing on as financial service providers movelegacy systems to the Cloud for fast online growth. Functionalities including datawarehousing and electronic business processing systems are poised to replace paper-basedapplication systems. Some of the customers are even moving their entire retail bankingplatforms to the Cloud to reduce complexity and costs while improving agility making thebanks much more responsive to changing customer demands. Another area is moving storage tothe Cloud which cuts costs in half. Similar savings can be achieved by moving applicationtesting and development to Cloud. Major Cloud providers such as Amazon Web Services (AWS)has scooped up significant business from financial services firms which have been earlyadopters of Cloud. Amazon Cloud is able to run credit risk simulations for its customersin 20 minutes down from 23 hours before. Adopting a Cloud model will provide the banksmortgage and insurance agencies with a platform that is secure scalable and can handlemission-critical workloads while offering greater flexibility and performance. We seeinteresting potential and opportunities in financial services like:
1 Card and mobile payment processing -- Visa MasterCard and trusted 3rd parties
2 Marketing and Customer Relationship Management
3 Internet and mobile Channel banking
4. Customer Analytics and Big data workloads
5 Infrastructure as a Service (IaaS)
6 Wealth Management
7 Mortgage and Insurance Applications
As The Cloud Specialists 8K Miles can take a leadership role for financial serviceproviders by providing the digital transformation services and Cloud solutions in bankinginsurance and mortgage industries.
As I look ahead I am confident and convinced that your Company is poised for a phaseof long-term growth and expansion. We have all the right building blocks in place in termsof experience and expertise capacities and competencies and people and partnerships toemerge as the leading Cloud Specialists in the world with our clear differentiators -Simplicity. Security. Scalability.
I thank you all for your sustained faith and trust in the 8K Miles journey and assureyou we shall continue to strive for yet higher trajectory of growth in the coming year.
Chairman & CEO