The financial year gone by witnessed the expansion of our new invigorated brandExpleo Solutions part of the Expleo Group of companies focusing exclusively on businessassurance quality assurance and software testing for the Banking Insurance and Financialservices industries. In this communication I would like to share with you our performancefor the financial year 2019-20 update on business operations new opportunities and ourresponse to combat Covid-19.
During the financial year 2019-20 we have reported total income of INR 2780 Mn (INR278 crores) compared to INR 2888 Mn (INR 288 crores) in financial year 2018-19 reflecting a drop of 3.7% on year on year basis. We achieved a Net Profit Margin of 14.2% anincrease of 13.7% over the previous year. Our net cash position stood at INR 872 Mn forthe financial year 2019-20 compared to INR 987 Mn in financial year 2018-19. During theyear 21% of our business came from the Expleo Group as against 19% in the previous year.
We were able to achieve this performance in the financial year 2019-20 despite the mainmarkets of United Kingdom (UK) and Europe witnessing some headwinds in terms of growth. Onthe positive side the markets in Middle East and Asia where we are offering our servicesdirectly continued to grow. Some of the key European clients also showed increasedbusiness activities. However the United States (US) continued to remain a weak market forus despite its huge potential. Your company opened a branch offi ce in Philippines andreceived necessary approvals from various Statutory Authorities in Philippines to commencecommercial operation from this branch offi ce.
Expleo was recognized as a Leader' in the overall market segment for nextgeneration software testing services in the Nelson Hall's April 2019 report.
Additionally we were also positioned as a Leader' in mobile testing AI-basedautomation and other cognitive & testing capabilities. This is a testament to theexcellent work of our teams and an encouragement to continue to deliver effectivesolutions for our clients. As the technologies keep evolving we are keen to remain at theforefront of the next generation of quality services especially in mobile AI-based andRobotics Process Automation (RPA). We will continue to invest in Quality Engineering andQuality Assurance (QA) around embedded software Internet of Things (IoT) and Product LifeCycle Management (PLM) in coming years. The Banks and Financial institutions have startedrecognising the need to evolve from traditional models to a fully agile approach toaccelerate the pace of digital transformation. They are facing signifi cant disruptionled by changing consumer demand and proliferating new technologies. They are alsochallenged by intense new competition from nimble FinTech start-ups and digital nativechallenger banks. Agility and speed to scale have become more business critical than everbefore. Businesses are getting a taste of the benefi ts that process automation canprovide them to meet these critical demands.
Our clients are increasingly adapting to new age digital technology to operatesuccessfully in today's disrupted world. Most banks have embarked on digitaltransformation initiatives in their quest for innovation shorter new product developmentcycles and reduced costs. We work closely with global banks and institutions helping themto navigate these challenges. We are well positioned to hand hold our clients in theirjourney of transition by helping them to create test and scale digital solutions andoperationalise them at a rapid pace.
During the year we saw strong demand for digital and new age services such as RoboticProcess Automation (RPA) Application Programming Interface (API) Banking Artifi cialIntelligence (AI) and DevOps. We continue to increase our service footprint and offeringsin these areas. Rapid digital transformation and rising test automation for loweroperational costs along with enhanced quality assurance are key drivers for clientorganizations to adopt digital assurance. We will continue to explore strategicpartnership with technology and platform providers who would help us reach a larger set ofsuch customers in coming years. Most importantly we will continue to invest in upskillingand right skilling of our employees and getting them trained and certifi ed to adapt tothe new age technologies. We have set a target for transforming at least 50% of employeesinto techno-functional employees by end of 2020. We believe such a transformation willposition us better to face the dynamic changes in market conditions post Covid-19. The newage services offered by Industry 4.0 technologies have already proven to be a great boonduring the tough times brought on to the business world by Covid-19 pandemic.
We are tending towards a new normal even as the Covid-19 pandemic is continuing tocreate disorder across the globe. We have two priorities right now protecting ouremployees and securing our business during this crisis. The safety of our employees is ourfi rst concern especially for those who are still working or are going back to work onour or clients' sites when remote working is not possible. We want to recognise theircommitment to our clients and continuity of our company critical services. We areincredibly proud of the agility and commitment demonstrated by Expleo community to adaptto this new normal in the face of great uncertainty.
As the pandemic develops we continue to provide our services in all the 30 countrieswhere we have operations and we are delivering most of our client activities remotely. Wehave been able to switch over 95% of our employees to deliver our client services remotelywhile maintaining high standard of cyber-security. Due to high uncertainty it is tooearly to say how Covid-19 will affect Expleo Solutions' business and financial performancein the financial year 2020-2021. As for the future our topmost priority is to make surethat your company exits this period strong better placed to accompany our clients throughtheir recovery and back to growth. We are confi dent that we will overcome this situationtogether.
On behalf of Board I would like to take this opportunity to wish our customers aspeedy return to normalcy in their business operations and also to thank them for thetrust reposed in us. I would also like to congratulate our staff for the exemplarycommitment and hard work demonstrated by them. I would like to thank you our valuedshareholders for extending your continued support and reposing your confi dence in yourcompany.
Stay safe healthy and take care of your families. Yours Sincerely
Prof. K. Kumar