Dear Fellow Shareholders
First of all I wish you and your families a safe and healthy 2021 and beyond. Thewell-being of CyberTech's extended family of employees stakeholders vendors and clients;well-wishers and the citizens of the world is at the top of my mind. I pray and hope youare all well.
Starting in February 2020 the outbreak of the COVID-19 pandemic adversely impactedpeoples' lives and business across the globe. And this year the second wave of COVID-19in India has impacted our people and their socio-economic condition. Our hearts go to themillions who were impacted by this pandemic. While I am pleased no CyberTech employee isaffected I can't say the same about their immediate families. My heart goes to them.
I created a COVID-19 response task force to support our employees and customers inMarch 2020. I have personally communicated with all our major clients assured them ofCyberTech employee safety the actions taken by Indian governing officials and the utmosturgency and importance I pay to employee well-being. Meanwhile CyberTech has arrangedCOVID-19 vaccination drives for our staff and their family members. I am pleased to reportthat 'no balls' were dropped while delivering some of the most complex projects. We havegraduated from "Work from Home" to "Engaged and Successful from Home"I could not have achieved this without our Executive Director Shri Raman Subramanian andother Senior Managers. My heartfelt appreciation to CyberTech employees who have workedtirelessly and beyond their roles; to ensure functioning of business-critical activities.
Our business has been good all through this. Cloud revenues are at the centre of ourgrowth. Digitalization "Work From Home" and Employee Safety has meant moreCloud work for CyberTech.
Below are my thoughts on the financial year 2021 performance. Despite challenges weended a strong financial year with a substantial increase in both margins and growth. OurEBITDA grew by 21% to Rs. 297 million and PAT grew by 82% to Rs. 241 million. Although ouroverall revenues dipped in the first quarters our booked orders have come back robustlywith an overall 5% recognized revenue growth. We achieved superior operational efficiencyand maturity over the past year.
Let me first share key financial highlights of FY21 with you:
Our total revenue stood at Rs. 1247.8 million in FY21 as compared to Rs.1191.6 million in FY20 reflecting a growth of 4.7%
Our operating revenue stood at Rs. 1178.0 million as compared to Rs. 1128.2million in FY20
Our reported EBITDA for FY21 was at Rs. 297.2 million (23.8% of total revenue)as compared to Rs. 245.2 million (20.6% of total revenue) in FY20 reflecting a growth of21%
Our net income for FY21 was Rs. 240.9 million as compared to Rs. 132.2 millionin FY20 reflecting a growth of 82.2%
Our total Comprehensive income for FY21 was Rs. 230.9 million as compared to Rs.140.9 million in FY20 reflecting a growth of 63.8%
We continue to have a strong balance sheet with reliable long term profitstreams and no debt
Our US-based business continued to grow which can be primarily attributed todeal wins from both new and existing customers.
Cloud and digital transformation have become a necessity in this pandemic era. Thecloud industry is projected to see huge growth and I am happy to report that our company'sstrategy is focused towards enterprise cloud transformation; and we are perfectlypositioned to be part of this growth.
Our deal pipeline is quite strong for our three key offerings - SAP S/4HANA and SAPCloud Offerings Managed ArcGIS Cloud Services and Spatialitics Cloud Software Solutions.We will continue investing in these offerings as well as our digital marketingcapabilities that have created a strong demand generation engine.
I manage our company based on a 8 Step Transformation roadmap. Let me touch on a 4 ofthe important steps that are driving our transformation:
1. Fiscal Strength and Strong Balance Sheet- You can read clearly how the company hassuperior balance sheet cash position EBITDA margins. We are strong.
2. Customer Enterprise Lifecycle- We focus on long term recurring revenues multi-yearcontracts and productized offerings. Each customer has a measurable lifecycle value basedon cash margins renewal rates interest and growth. We add value.
3. Employees Women Human Capital: At the end of the day we are a technical company.We are 2nd only to Esri in the depth of our GIS expertise! We hire great gradsfrom IITs and IIMs. We have our own CyberTech Geospatial leaders program (CGL). This teamalone can drive our success in Cloud Transformation. We care for our employees.
4. Sales and Digital Sales: It is not just consumer business Enterprises also dependon Digital Sales. Our IIM Managers led team are doing great work here. We sell.
SAP means SAP S/4HANA- SAP in the Cloud. This focus is the centre ofour cloud transformation strategy. We have just become SAP Reseller for Cloud Products(July 2021). Our SAP BTP/HANA Cloud offerings continued to gain traction and we havebeen awarded several HANA cloud migrations as a result of our strong relationship withSAP.
Esri means ArcGIS Enterprise- Cloud Kubernetes and Level 1 GIS systems. OurManaged ArcGIS Cloud Services offerings have significant momentum having closed threedeals this year. These deals have recurring revenue over a long period of time. We are inadvance stages of discussion for new opportunities. Our "DataSafe" securityapproach is unique due to the depth of our experience ; our senior Cloud team are expertsin security and web scale complex systems.
Spatialitics LLC is growing and is cloud native. The newer version of SpatialiticsGeoShield product is capable of integrating multiple disparate data sources includingvideo camera streams coming from different camera sources on a real time basis. We arewitnessing strong demand from our existing as well as new customers for GeoShieldproducts. Spatialitics Utilities and Spatialitics Health product suites are also seeingincreased demand. We are in discussion with various US water utilities about implementingSpatialitics Utilities product suite.
We have participated in many conferences including SAP Sapphire SAP UtilitiesEsri Global User conference Esri partner conference and Esri Infrastructure Managementand GIS (IMGIS) Conference this past year. I thank our SEs who presented excellenttechnical papers and their sessions were well received by attendees.
We continue to see increased adoption for secure and complaint cloud and digitalinfrastructure. CyberTech is the partner in digitalization journey; and our unparalleledexpertise in geospatial engineering cloud transformation and cybersecurity. Our closepartnership with Esri including our becoming the 1st ArcGIS Cloud Service Specialtydesignation awardee made a difference.
I thank my eminent Board of Directors Shri MP Bharucha Esq. for his support andfriendship Shri Sudhir Joshi for his hands-on style and counsel. I am grateful to Ms.Angela Wilcox Dr. NL Sarda and Dr. Shreepad Karmalkar for helping me during thisdifficult year. I thank all our clients my fellow shareholders and our CyberTechcolleagues for their support. I believe we have strong momentum and will continue to seebusiness growth in the coming years.
Finally I want all of you to be safe. This year the AGM is once again virtual ; but Ido hope to meet you all in person at the 2022 AGM or earlier.
Vish Tadimety Chairman
Place : Trevose PA USA
Date : July 23 2021