Letter to Shareholders
Dear fellow shareholders,
Your company continues to stride forward on its growth path and the fiscal 2011 -12 wasanother year of significant progress for Glodyne. We executed several complex initiativesand continued to make great strides in delivering on the strategic initiatives that wehave been working on for more than three years to improve the solutions we offer to ourcustomers.
Your company is a unique technology services company that delivers value to itscustomers based on their business outcomes using its innovative platform based solution,We leverage our comprehensive footprint in India and N America to enhance value throughits bouquet of outcome based platform solution to increase availability and efficiency ofIT infrastructure assets. The company has been one of the fastest growing technologycompanies with strong specialization in social and financial inclusion solutions in Indiaand a leader in Technology services and solutions provider in North America.
For the financial year 2011-12, Glodyne has registered revenues of Rs.2652.56 cr on aconsolidated basis, 81% growth over FY 2010-11. The EBITDA grew by 45% over FY 2010-11 to460.60 cr. Net profit for FY2011-12.wasRs.198.18cr. up 13% over FY 2010-11. The basic EPSfor the year is at Rs.44.84 against Rs. 40.32.
Glodyne is using its platforms to implement large technology led social inclusionprograms. These platforms also enable exceptional services delivery in the areas offinancial inclusion which ensures accountability and transparency in social projectstargeting the bottom of the pyramid.
During the year, Glodyne completed the pilot project for the Labour Management Programand started full fledged State wide roll out of the program. The Company Is registeringthe unorganized labour force In the State to ensure that the labour laws are adheredstrictly and millions of people get empowered. The Company is also creating bank accountsfor them under the financial inclusion program which will lead to their empowerment andensure transparency in the system.
Our social and financial Inclusion programs have been accepted as benchmark and havereceived awards and recognition by leading media and associations.
We continue to add footprints. In the financial inclusion space In the country. Duringthe year we Initiated relationship with a large private sector bank for deliveringfinancial Inclusion services.
The acquisition of DecisionOne enabled Glodyne to add fortune 100 client base, longentrenched relationships, and a business where there was huge opportunities to work oncost optimization and revenue expansion plans The detailed integration plans were delayeddue to certain operational hurdles which are being worked on continuously. The team hasbeen working relentlessly to bridge the gap and is confident of putting this glitch behindand has now re-calibrated Its plans and are on course to achieve what was planned for thegeography,
Glodyne DecislonOne Corporation has been working on building a good pipeline for thebusiness and we are confident of adding new deals in the coming years. Few of the largedeals in the Technology Services, Healthcare and Manufacturing space are expected toexpand the revenues of Glodyne DecisionOne Corporation.
Key growth drivers in India and North America
Today, Gtodyne's businesses are either in services focused or platform driven solutionfocused. There are some common themes that run through the businesses which are - out comedriven business model, long term contracts, predictable revenue streams, goodprofitability and an opportunity to expand presence within the existing customer set. Thekey factors that build our businesses are long term contracts, predictable recuringrevenue model, focusing on untapped markets, variable cost model which is aligned withrevenue highermargins, and lower incremental cost for additional services
The differentiators of the business model we have built over the years are uniqueoutcome based revenue model, cost optimization and revenue expansion in US operations,high growth potential and strong market position in India, operating leverage - minimalIncremental investment required to scale up In the high value technology solutionsimplementation projects ensuring better ROI and operational diversification - presence indiverse sectors including IT/ITES. BFSl e-governances manufacturing & retail,education, healthcare, services & media
The Way Forward
We had identified huge opportunity to drive growth by executing on our strategy totransform the marketplace In select sectors in India and North America. We have builtinsights, innovative solutions and footprints in the social transformation programs inIndia and ln strengthening our managed services portfolio in North America.
We are uniquely positioned to lead in these areas given (ne breadth of our expertiseand services portfolio, as well as our large, global partner and fortune 500 customerbase.
It is a new era at Glodyne which provides opportunity for our businesses to reach theirfull potential as we also face challenges which are macro as well as micro as we grow.However, we see an unprecedented amount of opportunity for both near and the long term.Although we still have a lot of hard work ahead, our services and solutions are generatingexcitement and are becoming benchmark in selected areas, I am optimistic for the future ofGlodyne as we move forward with lessons from the past and plans for the future.
As always. thankyou for your support.
Chairman and Managing Director