Hope you and your loved ones are all keeping safe in these unprecedented times.
We are dealing with a major global challenge as the COVID-19 situation is continuing toevolve. As we move into FY-21 the entire world is engulfed with the problems created bythis crisis. But this situation has also opened up new opportunities for us and it is allabout how quickly we adopt to the new normal and move forward.
I am happy to update you that we at Cigniti have collectively adopted to the newnormal thus ensuring business continuity to our clients.
While the COVID outbreak has caused several trends to derail it also has led many totransform. Organizations that were still doubtful about the necessity of digitaltransformation are now speeding up their digitalization journey & looking to scale uptheir digital capabilities. Digital Transformation is no longer a choice but a necessity.Being digital enables businesses gain resilience and achieve continuity amid the crisis.Enterprises thus need to digitize everything internal and external. This requiresassurance of online and secured transactions and would need the backing of AI and othersmart technologies.
Post COVID industries such as Oil & Gas Retail Banking Healthcare LogisticsRetail Hospitality & Transportation Tourism E-commerce EntertainmentTelecommunication and more will all undergo a tremendous change in terms of theirstrategies for go-to-market automation and growth initiatives. They would need toembrace cutting-edge technologies to make their products and processes resilient. Onething that will be common to most of these industries would be the need to adopt digitaltransformation that can help them create low/zero-touch products & services forambient wellness resilient practices and supply chain continuity.
Let's quickly recap our financial performance for the year 2019-20. Our revenue for theyear stood at Rs. 871.97 Cr vs Rs. 816.08 Cr on consolidated basis resulting in the growthof 7%. The EBITDA for FY 20 stood at Rs. 128.7 Cr and the PAT at Rs. 121.6 Cr.
A few of our big wins of the year include the world's largest retailer the largestoilfields company a leading entertainment company a Europe-based automobile company andmore from 70+ new logos. These accounts will yield good returns in the years to come. Tofurther accelerate our growth by winning large deals we have come up with a new sales& marketing strategy by bringing leading deal advisors who will help us win keystrategic accounts. We continued to improve our return on invested capital (ROIC) byidentifying and nurturing high margin services and clients and increased the average yieldper salesperson. We have entered into strategic partnerships with leading tool vendorsthat will not only help us in offering better solutions to the clients but also put us infront of large deals where our partners have exposure.
I am proud to update you with two notable recognitions. We have won the 'CorporateLeader of the Year' award at the 15th Indo-American Corporate Excellence (I-ACE) Awardsand have been ranked as 'one of the fastest growing Indian companies in the UK'.
Several leading analysts have continued to recognize us thus reiterating that we arethe leading players in the independent software testing and quality engineering space.NelsonHall positioned Cigniti as a "Leader" in the Mobile Testing Capabilitymarket segment in its 2019 NEAT charts and also recognized us as one of the top twolargest testing services pureplay globally. Everest Group positioned Cigniti as a 'MajorContender' in the Everest Group PEAK Matrix Assessment 2019 for Next Gen QA ServiceProviders. While Gartner positioned Cigniti in its Magic Quadrant for Application TestingServices for the 5th time in a row it also positioned Cigniti as a 'Niche Player' for2019. Zinnov mentioned us as a 'Leader' in the Zinnov Zones 2019 ER&D services forQuality Assurance Engineering Ratings and ISG recognized Cigniti as a 'Contender' forSecurity services category in the ISG Provider Lens for Cyber Security Solutions &Services 2019.
Notable investments in terms of time and efforts have gone in our innovations that arehelping us in creating a better value for our clients. We have received our 2nd US patentfor overall test tool migration pipeline. We have augmented BlueSwan with AI capabilitiesand the team is continuing to build several automation tools.
Being the leaders in the industry we are always at the forefront in terms of ourthought leadership. We invited senior quality engineering leaders to be part of ourinitiatives to share their rich experience with the QA community.
On the CSR front Cigniti associated with GMR Varalakshmi Foundation a CSR arm of theGMR Group and provided support to school children of several Govt. Schools near Hyderabadby building toilets classrooms developing Kids smart center upgrading computer andscience labs providing scholarships etc. We are very happy to have contributed Rs. 50Lakhs to the CM Relief fund to tackle the Corona crisis.
Outlook & concluding remarks
A major portion of Cigniti's revenue comes from Travel & Hospitality sector that iscurrently reeling under the impact of COVID-19. While this is a matter of concern Cignitialso has significant exposure in industries such as Banking and Finance HealthcareE-commerce and Communication apart from hi-tech products & public sector industriesthat are emerging due to the pandemic. Having served enterprise accounts Cigniti also hasrich experience in virtualization security RPA UX zero-touch technology and AI - allof which will play a critical role in business resilience and growth post-COVID. Apartfrom our existing test centers of excellence we also plan to establish new centers ofexcellence for Security testing Cloud Migration loT testing Embedded testingIntelligent Process Automation and Application Layer testing. Setting up CoEs in theseareas will enable us in helping our clients achieve scalability and faster go-to-market.
Before COVID it was estimated that the software testing market would touch $48 billionby 2023. I am confident that the market will bounce back after seeing a decline for next 2quarters.
On behalf of Cigniti's Board of Directors I take this opportunity to thank our clientstechnology partners shareholders various governmental organizations and statutory bodiesfor their continued support and guidance.
Yours Truly C V Subramanyam
Chairman & Managing Director.