Letter to Shareholders
It gives me immense pleasure to share with you an update on the performance of yourCompany for the year 2018-19. It was a challenging year as the geopolitical eventsthreatened to drag down major economies and disrupt global trade and commerce. Whileeconomic conditions remained volatile the GDP growth rate fell to a five year low whichmeant that the business environment remained unstable.
Against this backdrop your Company was successful in delivering stable results. Whilewe were not able to shape the external environment we believed in our focused strategyand took a number of constructive steps to grow strongly in a sustainable manner anddeliver industry-level growth in FY20. During 2018-19 your Company was successful inclosing a number of enterprise-level deals and became increasingly client-centric toconvert many of our projects into multi-year contracts. We also steadily invested inpeople built a strong leadership team and stayed at the forefront of technologies todeliver business value for our clients. All these progressive steps helped make yourCompany's business resilient and well-positioned to weather any storms and increase ourfootprints in the enterprise market.
We have been transforming into a truly next-generation IT solutions and servicesprovider. In the year 2018-19 our revenue was 8191.51 Million and the net profit was769.42 Million
Our focus on emerging technologies helped us grow stronger and increase market share inthe digital business. The digital revenues registered a growth of 9% annually and industryanalysts and experts started recognizing our capabilities. In FY2019 your Company wasrecognized for the fourth time as one of the fastest-growing technology companies in theDeloitte Technology Fast50 program. In my opinion this industry valuation is the outcomeof our technological capabilities and deep domain knowledge which has helped us become thepreferred and trusted partner of choice to all forward-thinking enterprises in theirgrowth and transformation journeys.
As a "Born Digital" company we have been growing stronger in thedigital space and mak-in skill development ingsignificant training programs and newhigh-growth areas that have helped us drive differentiation and competitiveness. YourCompany has become immensely entrepreneurial agile adaptive and innovative over theyears and these attributes have helped us build a healthy pipeline and improve ratios invarious verticals and geographies.
Progress During 2018
For the past several years Digital Transformation has been a dominant theme of change.Enterprises are investing heavily to drive digital reinventions and improving efficiencyto effectively compete against industry incumbents. By virtue of unmatched digitalexpertise and unique skill-sets your Company capitalized on every force of disruption andadopted new capabilities at scale in an effort to thrive in a Business 4.0 world.
During the fiscal year 2018-2019 we further strengthened the foundation for our roadahead by making strategic investments in building two innovative platforms that helpedheadways inus build strong presence in the markets.
We launched our unique frameworkKellton-
4Mediawhich is focused on generating new transformative value for the mediaindustry. This framework helps in building an ecosystem where businesses can holisticallymanage the complete media supply chains through a unified fully-in -tegrated platform.
We also launched a full-suite human capital managementsolutiontHRivewhich aims to help the HR department outgrow boundaries and workto meet challenges in the business environment. tHRive serves as an anchor point for theHR and administrative teams to effectively manage decentralized systems onboard toptalent into the business and ensure optimum performance across all fronts.
Our business is focused on not resting on the laurels achieved but improvingrelentlessly and expanding the full spectrum of services. The strategic and continuedinvestment in innovative technologies including IoT AI-ML AR/VR SaaS PaaS Big DataAnalytics and Robotics among more have helped us drive our competitive position andpowerfully steer the future of digital. In addition we are driving strong differentiationfor our clients through our long-standing partnerships with SAP Software AG IBM andMuleSoft. We are collaborating in new ways developing promising proof of concepts (POCs)and delivering leading-edge solutions. We are also making significant with AI and
Digital Twin technologies and leveraging our position as a leading contributor to thefourth Industrial Revolution.
Driving Differentiation by Being Agile
At Kellton Tech business agility is an important cornerstone of everything we do. Ourmethodologies are lean and focused on enabling solid foundations for agile transformationthereby empowering our clients to shift mindset act faster and grow at pace with thechanging world.
Your Company facilitates its clients' journey of Agile Transformation by adopting anapproach that's cohesive holistic and business-sensitive. Our experts develop a thoroughidea regarding the client's business model find out the most provocative opportunitiesalong the way and create an actionable plan that intends to solve the challenges whilemaximizing impact. By leveraging an iterative planning cycle your Company ensures thatclients are relentlessly pursuing the change and responding to market needs with greaterpassion.
Research and Innovation
Fostering research and innovation has been crucial to the continuing success of yourCompany. We are proactively engaged in creating innovative business strategies andintegrating them in our business units.
With every passing year we are increasing our investments in next-generationtechnologies with a view to building more holistic digital experiences. We are leveraginginsights to deliver business value.Your Company understands that the digital of today maynot scale exponentially in the futurewhich is why we are building leading-edgecapabilities across the globe with the help of our Center of Excellence and experimentingby building prototypes and see how new experiences are playing out.
In FY19 we began moving aggressively and strategically to evolve our technologicalcapabilities and stay relevant to our clients in the new digital world. Our research andinnovation team has taken up promising themes and collaborated with domain experts todevelop a number of innovative POCs for our various esteemed clients at our innovationcenters strengthening their business for the future.
We made progress in 2018 by positioning ourselves effectively in the IoT space.We helped the world's largest access and security solutions provider combine IoT edgeanalytics and cloud to streamline device management and enable real-time access control.
We rolled out Permissioned Blockchains by capitalizing on the ultra-modernDistributed Ledger Technology in a bid to enable highly secure and seamlesscross-functional collaborations across organizations. It was a product of vision and thefruition of good planning. We replicated the success of Permissioned Blockchains in thehealthcare sector and the results were pleasantly smooth.
We forayed into the world of Augmented Reality to build an application thatprovided users with information on cars by visualizing the exteriors and interiors of thevehicles through simulated experiences.
We developed sophisticated Propensity Models using advanced Machine Learningalgorithms to suit the evolving demands of e-commerce tele-com and agriculture sectorsand drive actionable customer insights.
We ideated and created an applicationComputer Visionpowered byConversational AI which was aimed at facilitating employee engagement programs acrossorganizations and encouraging a close-knit culture that enhances productivity.
We developed a high-performance simulation game for Nintendo's bestselling videogame console Nintendo Switch. As an innovation-led company creating a dynamic gamingexperience has been a remarkable learning experience and reflected our specialization inthe gaming niche.
Your Company's organizational value is underpinned by talent and innovation. In FY2018-2019 we attracted talent from top management and engineering institutes. Besidesthis your
Company also madesignificantinvestments in training existing employees to boost andenhance their specialized skill sets and stay relevant in the era of rapid change. Everysingle opportunity was leveraged to improve employees' competencies across verticals. YourCompany also undertook innumerable development programs which helped employees' acquirenew relevant skills that are required to grow and succeed in the digitally driven world.
Other than investing in the hiring of highly-experienced employees we also createdopportunities for the budding talents in the industry. We introduced various on-jobtraining sessions for undergraduate and post-graduate students from science engineeringand management colleges. The training sessions were comprehensive; wherein the experts andmentors at your Company helped the young talent learn pragmatic approaches of work as wellas improve their technical abilities.
Outlook for 2019
In FY2020 your Company will continue to learn from past experiences and make progressin our efforts to address issues invest in innovative ideas and strategize and plan wellto lead the company through the next phase of growth. We strongly believe that in order tocontinue lean growth we must keep pace with what is happening in the world and continueinvesting in building capabilities using emerging technologies and people to deliverinnovative solutions to our clients. The company will also invest heavily in strengtheningsales and delivery teams across different geographies to deliver targeted growth for thebusiness. I believe Kellton Tech is prepared for the future and our underlying strengthswill provide a strong foundation for success.
In the end on behalf of the Board of directors of Kellton Tech I would like to thankour clients shareholders and stakeholders for your trust and confidence in ourcompetences and our abilities to deliver fantastic results. I would also like to thankKellton'ites for their continued efforts in helping us become strategic partners to ourclients who are market leaders in their sectors.
As we move into the New Year we are confident that we will be able to disrupt themarket with our innovative solutions maintain our growth trajectory and handlechallenges with ease in FY20.