Cigniti Technologies Ltd.
|BSE: 534758||Sector: IT|
|NSE: CIGNITITEC||ISIN Code: INE675C01017|
|BSE 00:00 | 03 Jul||269.05||
|NSE 00:00 | 03 Jul||269.50||
|Mkt Cap.(Rs cr)||749|
|Mkt Cap.(Rs cr)||749.30|
Cigniti Technologies Ltd. (CIGNITITEC) - Chairman Speech
Company chairman speech
Welcome to the twenty first annual general meeting of CignitiTechnologies Ltd.
I am happy to share that your company has posted a robust result for FY2019 with healthy margins. In FY 2019 our revenue on consolidated basis is Rs. 816.08crore v/s. Rs. 693.28 crores in FY 2018 resulting in a growth of 18% year on year basis.The EBITDA for the same period stands at Rs. 132.77 crores v/s. Rs. 52.04 crores in FY2018 and PAT at Rs. 147.36 crores v/s. Rs. 32.17 crores in FY 2018. For sustaining ourvalue creation we have initiated several steps to improve our return on invested capital(ROIC). These initiatives include identifying and nurturing high margin services andclients divestment of unviable customers and geographical expansion. We also continue toimprove the average yield per sales person for effective growth I thank the team Cignitifor aligning with our organizational vision and making this healthy performance possible.
To be an agile company we continuously vary our approach generating arange of strategic options to test. We carefully select the most successful option toscale up and exploit and as the environment changes we rapidly iterate on thisevolutionary loop to ensure that we continuously renew our advantages.
As most of you are aware we operate in a technologically dynamicenvironment driven by the advent of emerging technologies and these technologies aretransforming our lives at an unprecedented rate. These technical disruptions are enabledby inexpensive computing power increasing mobility and access to large data sets.Machines are already doing a better job than humans in several areas.Intelligence' is moving away from central server farms into devices and things many of which will soon become part of our everyday lives. These devices willpotentially negotiate their own way in our world via smart contracts' andwithout significant human intervention. Perceptual information overlaid on thesereal-world objects will help us break out of the mobile devices that have captured ourattention in this post internet world. What seems unique about this current moment is therapid adoption of many of these enabling technologies and their potential to work witheach other to change our lives. of play is Withthe advent of the digital era the fieldbeing disrupted by both existing and new players from different sectors to redefine valueservices and customer experience. In particular healthcare travel and financialservices are industries most affected by this convergence. Traditional automotive playersare being challenged by the entry of technology players and the ongoing shift towardselectrification autonomous driving diverse mobility and connectivity. Leading thistransformative age are key emerging technologies such as Artificial Intelligence (AI)IoT Robotic Process Automation Robotics AR/VR and Blockchain. These tools are helpingaccelerate experimentation "democratize" innovation boost agility and powerorganizations' digital transformation journeys.
Ever increasing customer expectations are making enterprises demandapplication delivery faster than ever. They expect applications to be highly availablereliable and secure. Against this scenario deployment of Agile and DevOps are risingacross organizations for accelerating digital transformation and meeting the fast-evolvingneeds of the customers. Hence there is a continuous opportunity for the business ofSoftware Quality Testing/Engineering. According to a study by NelsonHall the currentglobal software testing services market size stands at $42.6bn and is expected to reach~$48bn by 2023. Growth will primarily be led by the adoption of next-gen testingnon-functional and other specialized testing services.
As I mentioned in the beginning of this letter Cigniti works in atechnology driven environment which is neither predictable nor malleable. When predictionis hard and advantages are short lived the only shield against continuous disruption isto remain agile - which is readiness to repeatedly change oneself. To be an agile companywe continuously vary our approach generating a range of strategic options to test. Wecarefully select the most successful ones to scale up and exploit and as the environmentchanges we rapidly iterate on this evolutionary loop to ensure that we constantly renewour advantages.
In this annual report in the relevant sections we have elaborated indetail the crucial phases adopted by the company in sustaining and achieving the growthrates.
Cigniti as a global leader in independent software testing industry hasbeen helping its clients across thirteen countries to assimilate their digitaltransformation journey. We offer a wide variety of QA & QE services including TestingAdvisory & consulting services leveraging our IP (BlueSwan) for Digitaltransformation. As on date we have 200+ active customers including 50+ Fortune 500Customers.
Awards and Recognitions
Everest Group for the 4th consecutive year has positioned Cigniti asthe Major Contender' in Everest
Group PEAK Matrix 2018. Cigniti Technologies Limited is appraised atCMMI-SVC v1.3(Staged): Maturity Level 5 for the second time. Leadership development atall levels is our people strategy. I take this opportunity to congratulate SrikanthChakkilam our CEO for wining "CEO of the Year" Award for 2018 at the FutureLeaders Summit & Awards 2018.
Governance & Responsibility
With respect to governance we are led by an experienced and dynamicBoard of Directors and our senior management team. With focus on best sustainablepractices we have been building a culture of transparency in the organization along withpeople industry and social responsibility.
As a leader in software testing and digital assurance segments Cigniticontinues to strengthen its position by disseminating industry insights through researchedarticles webinars blogs white papers events magazines and other publications toprovide deep insights for the readers especially for people aspiring for a career in thetesting industry.
On the CSR front Cigniti has associated with GMR VaralakshmiFoundation a CSR arm of the GMR Group. We have supported school children of a Govt. GirlsHigh School and a Govt. Primary school near Hyderabad by building toilets developingKids smart centre upgrading computer and science labs etc.
Outlook & Concluding remarks
Software Testing Services has become a mission crucial board roomtopic. By 2023 software testing is going to be a $48 billion industry and with all the newage technologies and devices entering the market
QE and QA business is poised to grow further. Enterprises can no longerignore quality aspects of products and applications before they are released.
Globally specialized software testing services (STS) is growing fasterand the traditional testing services are declining.
At Cigniti we continue to see a positive outlook for the sector and arepoised to benefit from these emerging trends.
We continue to progress by forging partnerships with leading softwaretesting tool vendors which in turn helps us offer a wide variety of solutions to ourclients.
On behalf of Cigniti's Board of Directors I take this opportunityto thank our clients technology partners shareholders various governmentalorganizations and statutory bodies for their continued support and guidance.
C V Subramanyam
Chairman & Managing Director