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Aurum Proptech Ltd.

BSE: 539289 Sector: IT
NSE: AURUM ISIN Code: INE898S01029
BSE 00:00 | 30 Sep 131.30 -1.65
(-1.24%)
OPEN

133.00

HIGH

135.95

LOW

126.60

NSE 00:00 | 30 Sep 130.65 -2.20
(-1.66%)
OPEN

134.90

HIGH

134.90

LOW

129.45

OPEN 133.00
PREVIOUS CLOSE 132.95
VOLUME 13337
52-Week high 162.65
52-Week low 59.74
P/E
Mkt Cap.(Rs cr) 376
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 133.00
CLOSE 132.95
VOLUME 13337
52-Week high 162.65
52-Week low 59.74
P/E
Mkt Cap.(Rs cr) 376
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aurum Proptech Ltd. (AURUM) - Chairman Speech

Company chairman speech

FROM THE DESK OF THE MD & GROUP CFO

We are confident that our integrated solutions executional brilliance and strongrelationships will continue driving our brand prominence globally.

THIS REPORT IS A TESTIMONY TO THE PILLARS WHO RESPONSIBLY BEAR THE WEIGHT OF OURPROGRESS 'INNOVATION PARTNERSHIP & GROWTH'

Dear Shareholders

It gives me immense pleasure to share with you my thoughts at the end of a satisfyingfinancial year for Majesco Limited. Lastfew months have been unprecedented in more waysthan one. The Covid-19 pandemic has been instrumental in bringing about a change rightfrom the way we live to the way we conduct our businesses. Challenges sure are plenty. Butso are opportunities to learn and surface upstronger.Acrisis can never be bigger than itslesson and howwe interpret these lessons is for us to decide. Ourclients' undeterred trustimbibed in us and ouremployees' constant commitment towards ourgoals are reflected in ourextraordinary results during FY 2019-20. This report is a testimony to the pillars whoresponsibly bear the weight ofour progress 'Innovation Partnership & Growth'.

I dedicate this report to all our partners employees and other stakeholders whoseunflinching support has resulted into our innovative prowess and sturdy and reliablepartnerships that have together charted the course of ourgrowth.

INDUSTRY OVERVIEW

2019 was a year that spoke of strong demand. It was largelycharacterizedbyamarketwithcontinuousshift from traditional legacy services to digital technologiesDevOps andAs-a-Service models. In this fast-paced and ultra-competitive businessenvironment acquiring the best technology to deliver optimum performance is critical tosuccess and sustainability. The emerging technologies likeAl ML RoboticAutomation loTand AR among others are helping enterprises improve productivity monitor performanceautomate processes and reduce costs. There is a wave of rapid adaptation of automation tofully tap the potential of Industry 4.0. Organizations are getting ready for the nextlevel of their digital transformationjourney. And this is where Majesco's Cloud-basedsolutions are stepping in to help execute their digital transformation strategies.

FY 2019-20 UNDER REVIEW

Against a backdropofavolatileglobal and Indian economy the strong growth in toplinesustainable profitability and healthy margins validate Majesco's strong business model.OurCloud-based productstrategy was well received by our clients.

The primary growth contributors for such a stellar year included ourcontinued focus onimproving digital capabilities and consistentlyworkingwithclientson large transformationprograms. Our strong relations and enhanced overall performance helped us retain ourleading position. The yearwas also defined by our unabated attention towards bringing inoperating discipline while transitioning into the next legofourjourney. Our new businessmodel reflects a fundamental shift from service- based (on-premise installations andperpetual licenses) to product-based (SaaS-based annual recurring revenue subscriptionfees through cloud). We continued embracing ourvalue-centricand customer-focusedmodelthrough API-enabled microservices-based offerings.

Our Cloud-based subscription revenue continued its onward march witnessing an overallgrowth of 35.6% y-o-y. With the total number of Cloud-based clients touching 65 Clouddeployment has experienced an increase and project implementation timelines havedecreased. Our subscription business model allows us to rapidly generate Cloud servicesrevenue during the implementation phase itself. Overall our recurring product businessnow represents over 40% of the total revenue. The product business growth has more thanoffset the decrease ofon-premises services. Using products and swifter technology ourSaaS-based model has brought about stability increased volumes and growth innumberofusers.

Our products in various geographies have also been performingwell. Duringtheyear.webagged new deals carried out product upgradations and explored expansion opportunities.Our continuous efforts strong execution timely payoffs and strongfinancial prowess hasled us to become a debt-free company. The year was also underpinned by other marqueeevents including upgradation of solutions to the latest versions; acquisition ofInsProTechnologies; partnershipwith DataRobot to accelerate adoption and an alliance withCapgemini amongothers.

FINANCIAL PERFORMANCE

Ouroperating revenuefortheyear FY 2019-20 stood at Rs.104048 Lakhs reflecting agrowth of5.3% as compared to FY 2018-19.Adjusted EBlTDAfortheyear stood at Rs.13961Lakhsfor FY 2019-20. Increase in profit was substantiallydue to improved revenue profilewith higher Cloud-based revenues and enhanced operating efficiencies. Monetization throughnewer models cost efficiencies and various other cost controls measures led to anincrement in Net Profitfrom Rs.1YJA Lakhs in FY 2018-19 to Rs.9022 Lakhs in FY 2019-20.

AGILE AND RESPONSIVE

Although FY 2019-20 was quite a busy year the last few days presented uswithnever-seen-before experiences. Our lives both personal and professional underwentdrastic changes due to the outbreak of the Covid-19 pandemic. There sure were hurdles butwe picked up lessons and moved on.lam happy to state that we as a Company were amongstthe earliest few to respond and adopt remote working. All our employees swiftlytransitioned to a work from home setup. Backed by our team's seamless focus and agilitywe stood by our commitments to projects and services irrespective of whatwashappeningoutside. Even amidstthese testing times our focus entailed the safety ofouremployees timely delivery of service to our clients and the financial well-being of ourCompany.

RISING HIGHER

With a record-breakingyear behind us our Cloud product-based strategy showcasedtremendous success. An increasing number ofcompanies are turning to partner with us ontheir journey to digital transformation. I am more excited than ever about theopportunities ahead the future of Majesco and the large untapped potential of theinsurance industry. Our persistent focus on delivering innovation and customersuccesshasfuelled ourgrowth and solidified our leadership positioning. In addition we areanticipating higher revenues from our Cloud offerings while growing at a faster pace ascompared to other areas of the business.

CLOSING THOUGHTS

Ourwork is well surrounded by the optimism of opportunities. The growth we haveachieved through our Cloud services proclaims the right direction ofour growth storylextend my sincerest gratitude to all our employees for their immense hard work. I expressmy regards and appreciation for all our stakeholders including my fellow Board membersManagement team Partners and Customers for their continuous support. I am confidentthrough our commitment and efforts we are perfectly positioned to grow and createsustainable value for all.

Regards

Farid Kazani

Managing Director & Group Chief Financial Officer.

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