The building blocks that we created in the last three years for a solid and sustainableFinancial Technology product company out of India are now yielding the results we desired.These include signi cant investments in enhancing our rich suite of products bycontinuously driving innovation to remain at the cutting edge of rapidly changingtechnology. This is truly a remarkable time for everyone in your Company and I feel yourCompany has done exemplarily well.
Your Company made signi cant investments in strengthening the sales and marketinginfrastructure execution capability and leadership pipeline across our 4 business linesnow manned by independent CEOs. These have resulted in our brand being recognized globally including academic institutions such as iGTB Oxford School of Transaction Bankinginternational Analyst endorsements from Gartner
Forrester Celent and Aite. IBS Intelligence a leading global research rm in its 2018Sales League Table ranked Intellect #1 in Retail Banking Systems & Payment Systems and#2 in Lending Systems. And above all we are also expanding our footprint into some of theworld's best known banks across US Europe and Asia.
At present four technological trends dominate the banking space globally: Arti cialIntelligence and
Machine Learning for building intelligent and relevant algorithms Cloud technologiesfor rapid deployment API based open architecture precipitated by Open Banking initiativesin Europe and Robotic Process Automation. Your Company's digital architecture encompassesall four and is focused on providing real time and contextual experience keeping thecustomer at the center of all we do. We will also build a sizeable presence in SaaS modelto augment the existing product license based business model and thus provide moreflexibility to our customers.
It is my belief that these would position us very uniquely far ahead in terms of thegeneration of technology vis--vis our competition in the relevant domain.
Each of your Company's products follow an in-house pattern that has ensured its successin the market. What we begin with is spotting an opportunity and work towards developing aproduct. We then move on to having this validated by clients. Stage three involves go-tomarket strategy development and fourth is where we garner analyst rating that contributesto commanding premium pricing and nally we are ready for partnership.
The financials reflect the result of these focused initiatives. Specifically yourCompany's revenue crossed Rs. 1000 Cr with a 3 year CAGR of 21% Gross Margins were steadyat 50% and EBITDA saw a sharp upswing from a loss of (Rs.25 Cr) to Rs. 79 Cr over the pastyear. Your Company has been pro table at the PAT level for 5 quarters in a row with theyear ending at Rs.47 Cr. The cash position is comfortable post a successful rights issueand collections exceeding revenue for the year.
Software License revenue grew at an impressive
CAGR of 32% an aformation of our strategy and direction as well as our executioncapabilities apart from a validation and endorsement of our Leadership position inthe Fintech Product space. License revenue grew to Rs. 199 Cr. in current year from Rs.156Cr last year registering 27% percent growth last year.
In view of the above and my outlook of the technology trends mentioned herein I amvery optimistic of Intellect 2.0 our journey over the next three years till 2021.The agenda has been set and during this period plans have been laid to attemptmonetisation of our product strengths by improving license pricing and deal size upsellto our increasing customer base and ensure focused entry along with expansion strategiesin speci c countries through strategic alliances where appropriate. This would becomplemented by institutionalising various functional processes building a learningcommunity to have ready access to continuous innovation including third parties which arepart of the eco-system and strengthening organisation capability for a rapid andsustainable growth.
I thank you for your con dence in Intellect and for your support through the formativeyears which encouraged and strengthened our resolve to move ahead towards our goals. Ilook forward to the future with a huge sense of optimism and enthusiasm as we continue tobuild a global products company out of India which has been my dream for manyyears.
Chairman & Managing Director