INDIA IS THE HOTSPOT OF DIGITAL INNOVATION AND AT THE CUSP OF THEFOURTH INDUSTRIAL REVOLUTION WITH THE NEW-AGE TECHNOLOGY GAINING IMMENSE MOMENTUM. CLOUDCOMPUTING IS THE NEW BUZZWORD OF THIS ERA AND WE ARE GEARED UP FOR THE NEW WAVE OF GROWTH.
It's a moment of great delight for me to communicate with youabout yet another year of enhanced growth. The year 2018-19 was marked by new sign-upsaddition of new members to our reseller network and extension of our reach to newerlocations across the nation with enhanced product offerings for the end-users.
The influx of digitisation spreading across all the segments ofindustry and community is leading to a strong opportunity for the technology distributionspace. With our diversified business model impressive product portfolio and betterservicing reach to the end-users we are well-poised to grow further in our space.
We continuously gear up to support our partners by identifying theright solution for them at the right time.
COMPANY'S PERFORMANCE IN 2019
The year 2018-19 at the macro-economic level was a bit challengingowing to tightness in the availability of credit and general slowdown in terms of overalleconomic growth. Amidst this backdrop we have reported a net sales of `451483.37Lakh as against `407440.78 Lakh in 2017-18. EBITDA stood at `9344.96 Lakhas compared to `8485.16 Lakh in the previous financial year. We have recorded aPAT of `2258.34 Lakh in 2018-19 as against `2054.36 Lakh in 2017-18. Wehave distributed products of leading global brands to over 600+ cities and towns acrossthe nation through a strong network of 12000 resellers. During the year under review wesigned two new brands Altec Lansing and CBC Ganz and around 15 Cloud brands.
EVOLVING ON THE GROWTH PATH
Today technology is evolving at a faster pace than we have everwitnessed. Humans have embraced this change of the digital age. Our country is undergoinga digital transformation in a big way. Whether it is big metropolitan cities or smalltowns a well-connected India has the potential to usher in economic and welfareopportunities for its citizens. With the same Government being elected for its secondterm the push for digitisation is going to strengthen further.
The massive reach of mobile connectivity and the deeper penetration ofinternet in the smaller cities & towns provide a big opportunity for the mobile andconnectivity devices. The Government's strong steps towards Digital India'will have huge potential in driving demand for PCs and computer peripherals segment. Theneed for physical safety and security devices such as CCTV cameras is ever-increasing fromthe offices malls hospitals schools and even individual homes. This has marked thebeginning of an irreversible journey from small to being large and larger.
EVOLVING WITH THE CUSTOMERS
The ever-evolving technology will continue to drive consumeraspirations. Customers' standards for modern engagement are a far cry from thetransactional one-size-fits-all experiences that were once de facto. Tailoredcontextualised engagement across multiple touchpoints is the benchmark. We are nowentering an era where a Company's ability to provide innovative experiences is asimportant as the quality of its products. Innovation is accelerating across theindustries thanks to emerging technologies like Artificial Intelligence (AI) and theInternet of Things (IoT). With many consumers and business buyers willing to pay a premiumfor differentiated first-to-market products and services that enhance their experienceswe at Compuage remain relevant with the evolving customer expectations and demands.
We see a huge potential for the IT products and services in the yearsto come. With the digitisation wave the technology will become an integral part of eachand every household irrespective of whether it is in a city or a village. Like smartcities India will soon have smart villages in the years to come. As a Company we arealigned with all the leading brands across our areas of offerings and are well-positionedto reach out deeper to the countrywide clientele and leverage the advantage.
We always keep checking the changing market dynamics which provides uswith opportunities to take a refreshed look at our offerings and revive the basket as perthe need.
STRATEGIC PRIORITIES AND OUTLOOK
For us the passion for growth is contagious. We strongly believe thatif all our associates on this journey grow then we are really set on the right path. Asan industry player we remain razor focused on the key areas that have potential stronggrowth in the future. Some of our key strategic priorities for the near term include:Explore opportunities in the cloud-based products being relevant to the changesContinue to work as a true value-added distributor by working closely with our channelpartners and resellers Guide partners to the newer venues of growth Grow inorganically inthe existing brands by including new product lines Enhance reach across the nations byadding more resellers and penetrating into newer geographies within the interiors of IndiaBuild the hardware service division to 100-owned service centres over the next three yearsWith this clarity and conviction I am confident that your Company will climb new ladderson the growth path and deliver maximum value to our esteemed stakeholders. I hereby takethis opportunity to thank all our Shareholders Board Members Employees Partners andResellers for being a part of this journey of growth. We look forward to your continuedsupport going ahead.
With warm regards
Atul H. Mehta
Chairman & Managing Director