It is my pleasure and honour for having this opportunity to present the 27thAnnual Report to the esteemed shareholders of Cadsys (India) Limited. We have successfullycompleted another year with positive growth. I on behalf of the Board would like tothank you all for being here and bestowing your trust yet again in the Company. I writethis letter with a sense of pride to express how well your Company performed this yearnot just in financial terms but also in terms the revenue is atof what we accomplishedfor customers employees shareholders and communities across the world. During the yearYour Company has stood strong and formidable to all the challenges that came by and hasadapted openly to the constant changes. The management and employees of the Companyclasping strongly to the Vision and Mission goals have moved your Company a step closer tothe zenith of success.
This year your Company had to witness the sudden demise of the Independent DirectorLate Shri. Nandachary Mudumbi.
I would like to acknowledge and remind everyone about his invaluable contributions tothe growth of this Company. Subsequently Mr. Appalacharyulu Chilakamarri was appointed asthe Independent Director to discharge the duties and provide his expert knowledge to theCompany. Over the past couple of years your Company focused on reducing the operationalcosts by implementing proprietary software. In addition your company focused to bestowsuperior customer satisfaction to build a long term and sustainable business growth. Thisstrategy strengthened our customer vendor relationship which laid path for inflowof continuous business wherein your Company in the year FY 2019 achieved long term MSAswith two global Telecom giants. Apart from that your company has also been awarded repeatWork Orders from existing clients. I believe this is true a manifestation for strongCustomer Vendor relationship and the credibility your company has built. Overallduring FY 2018-19 your company added new customers. I believe this is a major milestonefor the Company paving way to explore and expand the Company's presence in the FieldServices market.
I would like to now present to you all the financial highlights for FY 2018 19.Your Company had a 17.20% of revenue growth as opposed to 4.38% in the preceding year. Interms of revenue performance and business growth under Consolidated financials yourCompany in the current year achieved a revenue of 5338 Lakhs as compared to 4555 Lakhsin FY 2017-18. Under Standalone financials 2152 Lakhs as compared to 3280 Lakhs in theprevious Financial Year 2017-18.
The current year Profit After Tax (PAT) under Standalone is 277 Lakhs as compared to353 Lakhs in the year 2017-18. This faint slump in the Standalone Profit After
Tax (PAT) is due to the company not taking up project from domestic market. However inthe consolidated financials the PAT for current year is 1241 Lakhs to 739 Lakhs of
PAT in the previous financial year. As mentioned above the automation of certainoperational functions have facilitated in reducing the overhead costs and aided theoverall profitability of the Company. Your Company is continuing to work extensivelytowards building strong operational efficiencies and further expand its market in the USA.
The listing of equity shares on the Stock Exchange has laid down a path for strongCompany and shareholder relationship and we perceive as a huge motivation factor to strivefurther to secure the interest of the stakeholders of the Company. During the year yourCompany witnessed an increased momentum in strategies execution resulting in signing for akey acquisition. During the firsthalf of the year Your
Company entered into entered into Strategic Business Deal with First Call Services LLCUSA to execute the projects in Field Services. However utilising the operationaladvantage and the opportunity to outsource the jobs off-shore your company signed an LOIto acquire the Business of First Call Services LLC.
Some of the highlights on the business front are as follows:
Your company added 3 new customers one of them being the Global Telecomgiant AT&T.
Your Company's subsidiary in USA has signed an LOI to acquire the businessFirst Call Services LLC a Tennessee based Company which is into the business of Fieldsurveying.
Your Company has signed a Sale Agreement with DSL
Infrastructure Pvt Ltd to purchase new office facility at DSL Abacus Arena Hyderabad.
Obtained building permissions for construction of new facility at theMangalgiri site in Andhra Pradesh state.
Top 10 customers contribute 72% of the revenue compared to 85 % lastfinancial year.
The current number of employees increased to 55 in the Apex AdvancedTechnology LLC. The forecast in terms of business growth and outlook for the forthcomingFinancial year 2019-20 is expected to be as follows:
The analysts at Wall Street research firm- Cowen estimated that there will be 275000small cell nodes deployed by 2023 and if each generates $500 to $1000 per month inrevenue then the overall small cell opportunity creates $20 billion in "valuecreation" for backhaul suppliers. Your Company understands the dearth for theinnovation in this segment and is looking forward to provide end to end solutions to thecustomers by utilising the in-house technologies to the optimum levels and gain the marketedge. We believe that the adoption of these in-house technologies gives us a uniqueopportunity to significantly increase our value proposition and create differentiatedpositioning in the market
Going forward the management is confident that your
Company through this acquisition will build traction with the customers and build theright platform to tap onto other emerging technologies such as the 5G small cell business
Internet of Things (IoT) Artificial Intelligence Data Analytics etc. With thesestructural changes in the operations your company will witness an accelerated stable androbust growth in the coming years. Finally I would like to conclude my speech thankingour Shareholders Merchant Bankers respected officials of National Stock Exchange EMERGEplatform Share Transfer Agents Senior Management customers vendors auditors companysecretaries and all the employees of the Company for extending their continuous supportand encouragement towards your Company. We aim and hope to continue to invest more effortsand hard work in building a strong family and generate.
Thank you once again.
With warm regards
Nallani Chakravarthi Venkata Rangacharya
Founder and Managing Director