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Majesco Ltd.

BSE: 539289 Sector: IT
NSE: MAJESCO ISIN Code: INE898S01029
BSE LIVE 15:40 | 18 Aug 360.05 -3.15
(-0.87%)
OPEN

357.90

HIGH

364.00

LOW

354.95

NSE 15:52 | 18 Aug 360.40 -2.70
(-0.74%)
OPEN

358.00

HIGH

364.30

LOW

354.60

OPEN 357.90
PREVIOUS CLOSE 363.20
VOLUME 37225
52-Week high 543.50
52-Week low 300.00
P/E 184.64
Mkt Cap.(Rs cr) 848
Buy Price 360.05
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 357.90
CLOSE 363.20
VOLUME 37225
52-Week high 543.50
52-Week low 300.00
P/E 184.64
Mkt Cap.(Rs cr) 848
Buy Price 360.05
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Majesco Ltd. (MAJESCO) - Chairman Speech

Company chairman speech

Dear Shareholders

Fiscal 2016 was Majesco’s first year as a separate entity after our demerger fromMastek. I am pleased with the progress we made during the year and especially enthusedabout the many opportunities which lie ahead of us.

Majesco is exclusively focused on serving the global insurance industry by providingcore technology solutions and services that help modernize and bring change to Propertyand Casualty (P&C) Life and Annuity (L&A) and Group and Employee BenefitsInsurance carriers. Our core offering is a software platform covering Policy Billing andClaims which are considered "Systems of Record" that run our customers’core insurance businesses. We also offer data and digital solutions consulting and otherservices that support both the insurance carriers’ technology and businesstransformations.

The insurance industry is undergoing dramatic and rapid changes. Across our industrywe see new and emerging technologies evolving customer demographics and changingindustry boundaries. These disruptive and innovative trends are creating a renaissance inthe insurance industry. As a result carriers are significantly increasing theirtechnology modernization initiatives.

Insurance carriers look for vendor partners with the ability to support their businessobjectives and technology transformation initiatives over a long period of time. At thesame time the vendor landscape in insurance technology is getting consolidated. I ampleased that Majesco is continually recognized as one of the leading vendors in a majorityof our solution areas.

This is due to our sustained focus and investment over the past eight years in productdevelopment insurance talent and brand building. Fiscal 2016 created a solid foundationand path to scale our business plan as we ended the year with 164 insurance customers andrevenues of Rs. 757.2 crore. We see attractive growth opportunities for Majesco in thefuture as we leverage our global footprint comprehensive product offerings and industryleading customer service.

We experienced strong momentum in terms of new client additions increased revenuesuccessful client implementations and growth in our cloud business. We are humbled andthankful for the opportunity to serve the insurance industry and each of our customers asthey prepare shape and change their business for future growth and success.

Revenue for fiscal 2016 increased 43% which was driven by our team’s ability toexecute our organic and inorganic growth plans. Over the last two years our insurancebusiness has grown at a 23% compound annual growth rate. We added 19 new customer logoswhich is very significant in powering our market momentum and helped increase our 12-monthexecutable backlog by 47%.

Our delivery teams continue to focus on client program success. We had 34 clients golive and into production with our solutions.

As planned we increased our R&D investments by 57%. We launched new productsincluding Majesco DigitalConnect Majesco Business Analytics and Majesco Testing Servicesall of which are experiencing good market traction. With accelerating focus on product andmarket innovation the industry is experiencing increasing adoption of cloud basedsolutions. We are actively embracing this trend and I am pleased to announce we ended theyear with over 30 clients on Majesco’s cloud platform. We are making additionalinvestments to provide customers with enhanced speed to value variable cost platformsand flexible engagement models.

During the year we also completed the successful integration of Cover-All Technologiesand Agile Technologies into the Majesco business. The success was demonstrated byMajesco’s client and talent retention as well as the joint new logo wins for ournewly combined offerings. As the industry consolidates we will continue to look forfurther accretive acquisition opportunities in the current year and beyond.

Our industry is taking notice of Majesco’s evolution and market position. Duringthe year we expanded our partner ecosystem with 10 new partners and deepened ourrelationship with our System Integration partners IBM and Deloitte.

The insurance market is large and growing with nearly US $4.8 trillion in globalpremiums - 56% represented by L&A premiums and 44% represented by P&C premiums. Tosupport their annual business requirements global L&A and P&C carriers’invest approximately US $181 billion on IT software services and support. Of this overallinvestment carriers spend US $25 billion annually on software and services directlyrelated to Majesco’s offerings creating a large and compelling addressable marketfor our products and services.

As a top three solution provider with a track record over the last two years oforganic growth and acquisition success we are confident about our market position andlong-term growth opportunities.

It is a privilege to serve our broad and diverse set of customers. Today we work withall types of insurance companies - from large established global carriers to emergingstart-ups. Delivering solutions to a wide range of customers provides us with a valuableperspective on the changes underway in our industry which guides our plans and prioritiesfor the future.

We sincerely thank our customers for their confidence and trust. We will continue todirect our energy innovation and effort on proving their confidence was well placed.

Delivering and delighting our customers today is the foundation for continued growthand success. It requires a fully engaged highly energized and knowledgeable staff.I’d like to thank our employees for their customer focus teamwork and support.

I am confident that we are on the right track to achieve profitable growth in the yearsahead. Majesco’s management team and board of directors have high expectations forour newly combined company in fiscal 2017 and beyond and I look forward to sharing oursuccess with you in the future.

Thanking You

Ketan Mehta

Co-founder and CEO of Majesco Limited