It is my privilege to present to you the Annual Report of Mastek for the year ended 31March 2018. We achieved robust growth in revenue operatingprofitand earnings pershare and continue to generate consistent and sustainable value for our shareholders.More importantly we are successfully executing against the roadmap outlined under ourthree year plan to become a global leader in enterprise digital transformation.
Businesses across the globe recognise the imperative to leverage new and emergingtechnologies to drive efficiencies. While in many cases existing legacy business systemsare being modernised yet in other cases new disruptive business models are beingembraced to achieve the desired outcomes. In fact it would be fair to say that almostevery corporate company is pursuing digital transformation at some level. As per a recentglobal study large organisations are annually spending around USD 400 billion on digitaland analytic business transformations. However according to Forbes more than 84% ofdigital transformation projects fail to meet expectations. As businesses struggle toimplement digital transformation at Mastek with our proven capabilities in deliveringlarge and complex enterprise-wide transformation projects we are well-placed tosuccessfully partner businesses from end-to-end in their transformational journeys.
The global momentum is also skewed in our favour. Major global economies arepoised for sustained recovery in the next couple of years with the US a growing marketfor Mastek already showing a strong revival in recent times. While in the UKeconomic activity is likely to be subdued owing to uncertainty over the outcome of Brexitnegotiations the withdrawal of UK from the European Union offers significant opportunityfor Mastek. Over 27 new government departments will be created all requiring digitalplatforms and an experienced software engineering partner able to deliver mission-criticalapplications. Having worked with the major central government departments in theUK our experience and expertise will place us at a vantage point for new contracts.Further there's already a shortage of approximately 69000 engineers a year in theUK which will be exacerbated by Brexit. With our strong talent pool of highly qualifiedand experienced software engineers we are ready to help plug that gap.
John Owen our Group CEO came on board in November 2016. The past financial year hasbeen the first full year of performance under John's able leadership. He has strengthenedthe executive team and inspired the organisation to reach higher under his "Vision2020" agenda. The consistent growth and predictability that he and his teamhave delivered bear testimony to the quality of vision and leadership that John hasbrought to Mastek.
While the UK and the US continue to be our key geographies our business model iswell-diversified and de-risked. In these markets the revenue from government projects isspread across many programs and we have been successfully winning new deals insidethose accounts. We are steadily enhancing our clientele in sectors such as financialservices retail amongst others and revenue is being generated from multiple serviceofferings.
Vision 2020 articulates our ambition to be a global leader in digital transformationservices. We have been steadfast in our pursuit of this vision. Innovating developingbespoke solutions and serving clients in a rapidly changing marketplace have enabled us toreposition Mastek from a commodity Indian-offshore IT services to a high-valueimpact and trusted digital transformation partner. On the financial front wecontinue to move towards our target of returning to industry benchmarks and providingfinancial stability and sustainable growth. In a similar vein on the operational frontwe simplified our operating model and aligned all resources to a common shared plan.Our people have been the most important catalyst in enabling us to provide a compellingvalue proposition. During the year we remained focussed on ensuring a high-performanceculture while protecting our core values and purpose.
The Company paid an interim dividend totalling to 40% (` 2.00 per share) for FY18. TheBoard of Directors have recommended a final dividend of illustrates our confidencein the long-term prospects for the business and its underlying strength. The totaldividend for the year including interim dividend works out to 120% (` 6.00 pershare).
I would also like to emphasise the Board's commitment to upholding the higheststandards of corporate governance. Since our inception adhering to high ethicalstandards have been part of our culture - starting at the top and permeating everylevel of the organisation. Passionate about the business while staying true to integrityand transparency your Board remains committed to creating shared value.
At Mastek we also understand the importance of promoting businesssustainability. Reducing our water usage energy consumption food wastage and e-waste areamong the small but measurable steps we have undertaken giving testament to ourculture of making a difference in our world.
This is an exciting time of opportunity for the Company. Guided by our strategycapabilities and financial strength we remain confident of delivering higher growth andexpanded profitability. On behalf of the Board I thank our clients partners andshareholders for their trust and support. I would also like to extend the deepestappreciation to our employees who consistently demonstrate their hard work and dedicationto Mastek's success. Mastek is an excellent Company with a bright future and we firmlybest is in the offing.
Vice Chairman & Managing Director