It gives me great pleasure to welcome you to the 28th AnnualGeneral Meeting of your Company.
The IT industry is at an inflection point due to disruptive emergingtechnologies. This has resulted in IT companies getting opportunities for rapid growth.
As per a survey done in 2022 by a leading Indian IT industry body FY2022 is a tipping point for the IT industry the year in which the industry crossed $200 Bnin total revenue and 5 Mn in the total workforce. It also says the focus areas will bearound customer service supply chain and sales & marketing. end-user enterprises areemerging as technology job creators about 30% of respondents intend to increase theirtechnology team by over 15%. The pandemic has further disrupted the entire world. The ITindustry has provided innovative solutions to overcome this disruption by giving the WFHoption.
FY 2023 growth opportunities: Infrastructure and managed servicesconsulting; Platform BPM data management & RPA; ER&D will see deeper penetrationof the engineering Cloud. The software product segment will see a greater off take ofproductivity software and cybersecurity solutions. Finally the eCommerce industry is setto get further disrupted by the fast-growing interest around metaverse driven by the needfor more personalized experiences.
India's GDP for FY2022 is estimated at 9.2% as per the Governmentof India's Economic Survey 2021-22.
As a result of the shifts forced by the pandemic 2021 saw theemergence of six major global mega trends that will refocus policies strategies andinvestments on a global scale not just in 2022 but for the coming 5-to 8 years and evenbeyond. These trends include Global Talent Pool Transformation Global Supply ChainReplanning Global Big Tech Regulation ESG-Led Business Models Formalization of CircularEconomy Industrial Revolution 4.0
As stated earlier Allied Digital has transformed and we had envisageda "Disruption Driven" model since January 2020 due to rapid change in emergingtechnologies. In March 2020 the world was affected by the Corona Pandemic whichaccelerated disruption in all business models.
Our philosophy of the "Remote First" model since 2007 hashelped us in a big way.
When the industry was laying off people we hired 1000+ employeesduring the pandemic. We believe in the adage "Small pain and long gain" and haveundergone a complete internal transformation which has put our company on the fast growthpath to address the newer challenges enforced by disruption. Our financial results in theyear in question have been stellar with a 217% increase in PAT on a Y-O-Y basis and EPS isRs 11.66 with face value of Rs 5 per share.
Hence I am pleased to announce a 20% dividend to ourshareholders.
We have restructured the company's Line of Business into 6 towersnamely:
|1. Cloud Services ||4. Infrastructure Management Services |
|2. Cybersecurity ||5. Software Solutions |
|3. Smart City Solutions ||6. Workplace Management Services |
There is a megatrend to move technology platform from on-premises tocloud and from a CAPEX model to OPEX model in this new trend one must pay on use basiswhich reduces CAPEX costs Cloud technologies are very robust and mature now hence thereis a mad rush to move most business to Cloud Cloud technologies have also changed in anunprecedented way rapidly by creating Cloud-native platform.
Cloud-native has created humongous opportunities to re-write thesoftware to modernize their applications and this change is inevitable and unstoppable. Wehave fully geared up to address these new opportunities of Cloud migration and Managedservices.
Virtualization under Cloud and WFH has exposed all to cyberthreats.Threat actors are rapidly growing by creating the latest and very sophisticated attackslike ransomware to siphon off money and MSME/Large companies are also not spared. This hascreated big opportunities for IT companies like us to combat such threats by incorporatingseveral measures starting from consulting audits implementation of cybersecurity andManaged security services from Security Operations Center (SOC). Your company iswell-positioned by pre-empting this well in advance and had created SOC in 2007 and putitself ahead of its competition. There is a significant opportunity for everyone and therewill be non-discretionary expenditure to avoid and combat cyberattacks. Your company ispoised to have significant growth in this space with its readiness and by taking an earlymover advantage.
Smart City Solutions
Allied Digital has been reckoned as a Master Systems Integrator in thiscountry and is also considered a pioneer and market leader. The 1st Safe/Smartcity was implemented in 2014/15 by making the entire Pune & PCMC cities digital. Theworld-class state-of-the-art Command and control center (CCC) has been implemented tomonitor the entire city.
We have created the best world-class practices and capacity to addressseveral Smart City project opportunities under Central Government initiatives of making100 Smart Cities. We have already bagged several Smart city projects till now and are onthe verge of exponential growth.
Infrastructure Management Services (IMS)
Allied Digital was incepted in 1984 and started supporting mainframecomputers in the pre-PC era and was amongst the first 3 IT companies in India with a focuson IMS as a 3rd party support provider and created an annuity business model bysigning multi-year contracts.
DNA of Allied Digital is technology and it provides IT services whichis a high-margin recurring revenue annuity business. Your company has already bookedRs.2000+ crore pure services revenue for the next 5 years across the globe. We haveestablished NOC/SOC and a Global service delivery center in Mumbai to support companies.This is our legacy business since its inception. Currently many large companies areconsolidating their multiple service providers to a single service provider by novation ofall existing contracts. We have bagged 1 very large contract in the USA to support one ofthe largest auto manufacturers across the globe by replacing hundreds of contractors.Similarly we have also bagged a large multi-year contract of IMS of one of India'slargest conglomerates having 11 group companies.
Novation of several contracts has been done with Allied Digital as anIMS service provider. This trend is going to grow which will open large opportunities foryour company to address this lucrative business. We have world best practices and servicegovernance which is exemplary.
Today Allied Digital can boast to have created 2 large patentedplatforms "ADiTaaS" and "FinoAllied".
ADiTaaS is a homegrown comprehensive service management platform thatis used globally by many customers and certified by PinkVERIFY certifying authority and ispart of an elite club of 53 global PinkVERIFY certified companies.
We have created a path-breaking FinoAllied platform by developing aninnovative Conversational Banking platform in the fintech vertical. This platform can getextended to insurance and other industries where transactions could be done by usingconversational bots. This platform uses emerging technologies like NLP AI/ML BlockchainData Analytics and Data Science.
We are highly excited to look out for opportunities by using thesedisruptive technologies with its specially trained and reskilled teams. We will be a partof Industrial Revolution 4.0 to solve complex industry problems.
We have heavily invested in a skilled workforce and are very optimisticto reap the benefits by leveraging these disruptive digital technologies.
Workplace Management Services
The pandemic has created a new normal and proved that the physicallocation from where you operate is no more important than it was earlier. The new norm ofWFA has become the new normal.
Remote First concept which we created in 2007 has helped us to move theworkforce to WFA seamlessly and our brilliant measures have also helped customers to movethe workforce to WFA without any disruption. Allied Digital was amongst the first ones tounderstand this challenging environment during the pandemic to help address clients towork under "Zero trust" "PAC" privilege access rights Single Sign-on(SSO) and endpoint security etc. We believe that edge devices including Workplacemanagement will not be owned by Cloud service providers and such business will always betaken care of by experienced companies like Allied Digital. We are very bullish about thistower and hence we have opened wholly-owned subsidiaries in the USA Australia SingaporeUK Brazil China Ireland and Japan.
We have a very strong belief to provide the best support since we havea direct presence. Effectively we have a direct footprint across the globe. This hascreated a pull model for us to be leveraged by multiple service providers.
NEW CHAMPION at World Economic Forum
Allied Digital is now recognized under the New Champions program bythe_ World Economic Forum (WEF). The New Champions program is one of the latestinitiatives of the Forum where technology companies like Allied Digital can make adifference in the world in the coming years. Several white papers created by us have beenpublished by WEF. This will help us collaborate with players globally to penetrate thewider business opportunities and increase our global visibility.
SDG and ESG
The Sustainable Development Goals (SDG) or Global Goals are acollection of 17 interlinked global goals designed to be a"blueprint to achieve abetter and more sustainable future for all". The SDGs were set up in 2015 by theUnited Nations General Assembly and are intended to be achieved by 2030.
Environmental social and corporate governance (ESG) is an approach toevaluating the extent to which a corporation works on behalf of social goals that gobeyond the role of a corporation to maximize profits on behalf of the corporation'sshareholders.
SDGs are global goals set out by the United Nations whereas ESG is arating system used by companies to measure their environmental and social credentials.
As a Global Corporate Citizen Allied Digital has been doing severalsuch activities and has adopted fair governance as its core value in its value pyramid of7 layers and plays an active role in public-facing technology projects such as smartcities. Your company has been listing these activities but from this year plans toformalize and report these activities under the global ESG metrics framework. To achieveNet Zero carbon emissions we will be conscious to control carbon emissions to achieve ourcorporate goals.
Your company firmly believes in its Corporate Social Responsibility andis helping the community with suitable donations and assistance towards needy causes likefood education healthcare religious nature etc.
The Padma Pragna Private Trust set up in 2008 helps students fromhumble backgrounds get an education and offers healthcare facilities for theunderprivileged. We ensure that 2% of our net profit is utilized for CSR as per governmentnorms.
Awards and Accolades
Our progress has been appreciated and has resulted in several awardsand accolades being given to your company. (See details on Page No. 9)
The world is moving towards Digital which is reflected in our Company'sname - Allied Digital and our genes giving us an early mover advantage for DigitalTransformation. Metaverse is the exciting new phase that would help transition the worldfrom physical to Digital. By providing various digital solutions to take care of clientneeds we foresee a market leader status in the digital world.
We are thankful to all our investors for supporting our endeavours andare looking forward to continued support for our bright future. With warm regards
Chairman and Managing Director