Letter to Shareholders
The business impact led by COVID-19 reached an inflection point during fiscal 2020-21.The scale of change was unprecedented. Kellton Tech demonstrated its ability to pivotrapidly and enable sustained growth at a rate above the market average with growingprofitability.
Our workforce one of the greatest and most important assets delivered on clients'commitments unfailingly and exceeded all expectations reflecting their passion forachieving performance excellence. We take pride in the team we have built and remainthankful for their steadfast support and contribution in the company's growth more so inthe past year.
At a time when the coronavirus was racing through the globe triggering a health andfinancial crisis Kellton Tech formed the COVID-19 taskforce to provide timely assistanceto our employees in need. With our employees and their family facing one of the mostharrowing times we established a plan to ensure a steady supply of resources that theymay need to cater to the demands of the crisis. For volunteers in the taskforce toaddress queries coming in large numbers was a tall order to meet but their dedication tosupporting the community they work in was praiseworthy and paid off in a huge way. Thesense of empathy and compassion that our COVID-19 taskforce had shown in such staggeringtimes was unmatched and will continue to inspire us for years to come.
We are proud that during fiscal 2020-21 we focused our efforts on gaining knowledgeand digital capabilities to build tomorrow's enterprises. From services and solutions thataccelerate our clients' digital journeys to incubating next-generation technologies weworked relentlessly to script an enduring success story. We captured new growthopportunities in cloud blockchain AI/ML security supply chain and digital workforce.
As the tide turned with COVID-19 we embraced an agile transparent and future-readyarchitecture to ensure value generation without any hiccups and help our customers turntheir transformative visions into reality. We ensured seamless collaboration acrossvarious business endpoints and helped our people achieve their mission-critical right intime. Our employee focus and a flexible operating model were what helped us surmount thechallenges and ensure business continuity.
We experienced strong headwinds of disruption of 2020-21 inthe due to the COVID-19outbreak and the selling-off low-profit-making business divisions generated 30% lessrevenue than what they contributed in the corresponding quarter. However we emergedstronger from the downturn mainly in the last two quarters reporting a 45% increase inrevenue generation.
THE FINANCIAL HIGHLIGHTS OF FISCAL 2020-21:
Our digital commitments increased by 4.28% on a Y-o-Y basis comprising 79.34% of ouroverall revenue in FY21.
Our Earnings per share was at INR 7.34 a decline of 4.68% on Y-o-Y basis
We had operating cash flowsof INR 794.8 Million that grew at 41% for the year.
During the crisis we maximized the scale of our capabilities to help our customersbuild their digital core and generate revenue while adapting to the shifting marketscenarios. As COVID-19 struck in our close quarters we worked together with oursolution-finders across geographies to enable our thousands of people to connect andcommunicate in a remote environment. The net outcome of our approach was a simplifiedorganizational model underpinned by leaner operations an adaptive digital core scalabledata architecture and cybersecurity that helped spark agility resilience and trust inour working relationships and lead clients' objectives in a frictionless manner. Weinvested significantly in our people. We strategically spent on training of our andreskilling our workforcesubsidiaries. A which was few crucial of our to deliveringsuperior experiences for our customers and us. Besides our teams were better positionedto leverage and expand our global and local innovation centers to nurture an optimaldelivery pipeline for our customers and extend value.
In FY 2020-21 we tapped into the potential of our existing partner ecosystem and weresuccessful in entering new tie-ups with leading technology providers in the industry. Wedrove outcomes for our clients with our strong and positive working relationships withpartners including
Amazon Web Services (AWS) Google Apigee SAP MuleSoft IBM Jitterbit WorkatoSoftwareAG Automation Anywhere and many others.
Appreciation and accolades from our customers always corroborate the confidence we havein our digital capabilities. During the fiscal year 2020-21 we won recognition fordriving meaningful experiences and leading our clients to their business differentiation.We optimized the workings of the core-critical Physical Access Control Software (PACS) forone of our leading clients thus helping them align their approach to product excellenceand market expansion. In the words of the client the impact of our deliverables on theirbusiness was much palpable' and consistent.' Another client a fast-foodgiant in South Africa with a strong global footprint congratulated our team for designingand deploying a Digital Success Routines Platform that helped them improve the quality ofrestaurant ops dramatically. The client deeply valued the extra time' we put in todrive anticipated results and identified us as the trusted technology partner' forthe future.
We view 2021 as a year of growth acceleration. We set the following benchmarks andcontinue to build a firm foundation that leads us to our objectives:
Fundamentally a promising pipeline underpins our future. After gaining ground in theUS markets we plan to expand our customer base and revenue size in Europe and the UK.
We are determined to implement new organizational strategies that focus on repurposingrestructuring and achieving higher redefined goals.
We aim to reach $300 million revenue from $100 million in the present day.
We plan to onboard approximately 400 new talents across all technology realms andreinforce our commitment to diversity and inclusivity.
We are ready for the next disruptive change and stay committed to riding the newtechnology cycle to build differentiated solution-centric capabilities that augment ourreach as the preferred transformation partner' for the customers.
As we close a challenging year we express our gratitude to all the stakeholders including clients partners employees and Board of Directors for placing theirfaith and confidence in Kellton Tech. We thank you for your continuous support and lookforward to a lasting relationship. May we thrive together!