I am pleased to present the financial statements for the year ended March 31 2017 andto report that your Board has recommended a 10% dividend. For the year under reviewconsolidated revenue was up at Rs. 341.66 crore from last year at Rs. 311.63 crore. Netprofit stood at Rs. 15.19 crore as against Rs. 20.78 crore for the previous year. Weremain pleased about our progress during these highly competitive disruptive anduncertain times and look forward to a growth-driven year ahead.
Celebrating a milestone year
On July 25 201 6 we reached the twenty-fifth milestone year and marked the occasionwith office celebrations around the globe.
Back in 1991 when Mindteck was established the technology landscape was rapidlychanging as it is so though even more today. Through the years we withstood multiplechallenges made every attempt to keep pace with market demand and maintained theclient-centric focus required to stay on course. Having been with Mindteck over the lastfour years I have experienced first-hand the extraordinary foresight and resilience thathas attributed to our longevity and strength. As such I am confident that we are enteringa new chapter in our history with the capacity capability and confidence to achievepredictable profitable and sustainable growth.
Innovative smart city solution development
As you may recall over the past several years Mindteck has invested in R&D inorder to develop our smart city readiness and gain traction in IoT This has resulted inseveral successes including the implementation of an intelligent lighting solution thedevelopment of an FDA-approved remote patient monitoring device and the execution ofeNagarpalika - providing citizens with access to municipal services on a unified webplatform.
During FY 2016-17 we furthered our capabilities in implementing fast effective andconnected smart city solutions for government bodies and companies. A key highlight forthe year was a pilot project for New Delhi Municipal Corporation (NDMC) which encompassedthe implementation of India's first smart parking solution using Wi-Fi cameras with anembedded video analytics server and battery-operated wireless sensors to capture carparking occupancy data with a date and time stamp. The solution also includes a smartparking mobile app enabling motorists to locate the nearest parking spot in real-time.
We also announced a collaboration with a renowned Indian technology institute toimplement a smart city home automation Advanced Metering Infrastructure (AMI) and systemintegration solution to help consumers manage their energy consumption more efficiently.Additionally in South India we executed the first smart grid project along withsoftware back-end integration for a large electricity supply company.
Positive outcomes across the globe
Aside from continuing to build on our momentum in deploying smart city solutions wefocused on further developing our niche strengths cultivating more knowledge and skillsand deepening bonds with our long-standing clientele. We also sought to improvecross-functional team processes and more effectively target markets and prospects. Notablehighlights for the year around the globe include:
Expanded our footprint in the US-Midwest region.
Signed an agreement with a leading global manufacturer of electronic instrumentsand electromechanical devices for the aerospace power process and industrial markets.
Set up an ODC in product automation testing for a global storage company.
Showcased our IoT-based Wi-Fi Thermostat and Lighting Control System with ROHMSemiconductor at Sensors Expo 2016. These solution accelerator demos encompassed our EDScapabilities in multiple domains such as product engineering hardware and firmwaredesign IOS app development cloud connectivity IoT and smart energy.
Mindteck Academy continued generating revenue from previous client-driventraining sessions and it also began conducting select internal training sessions. Therewere also key inroads made toward establishing public and private partnerships. In thecoming year Mindteck Academy hopes to introduce new courses broaden its footprint andhelp advance learning and development at Mindteck.
Won new business with a worldwide IT technology and enterprise products andsolutions company in Germany as well as a contract with a Belgian company in the meteringspace.
Obtained more business with an existing client in the areas of medical lightingand Solar PV.
Executed an offshore project for a utilities organization that operatesSingapore's wholesale electricity market - Asia's first liberalized electricity market -for migration of their software license and upgrades.
Completed a new software quality assurance project from offshore within a spanof five weeks for a leading car audio company.
Won a new order with a semiconductor foundry for a wireless notification device.
Initiated a new engagement with an established software services company thatprovides a myriad of business and technical solutions to commercial and federal governmententities.
Renewed a multi-year resource contract for one of the largest aluminumsmelters in the world.
Implemented a large big data analytics project for one of India's major globaltelecom companies.
Won an order with one of the global leaders in connected car technology andlifestyle audio innovations. This included the design of a network node and gateway withfirmware programming as well as a gateway with communication on a ZigBee and LoRa module.
Secured a new order with a large automation company to build an application fora home automation solution.
Upward trend in partner and alliance relationships
To expand our IoT offerings in the industrial space and to provide clients with addedinsights and analytics we joined the GE Digital Alliance. We also became an Oracle GoldPartner to further our development and implementation across Oracle's entire portfolio.Additionally during the year we joined the Smart City Council (India Chapter) andcontinued our partnerships with Thread Intel IoT Global Network ZigBee and severalother component providers.
During the year we were proud that Mindteck became a Capability Maturity ModelIntegration (CMMI) Institute Partner. This authorizes us to provide official CMMIInstitute services in CMMI and Data Management Maturity (DMM). We also maintained our CMMILevel 5 Appraisal for our Bengaluru and Kolkata locations across industries.
Though relatively new our collaborative alliance with a global lighting efficiencycompany to create retrofit solutions for commercial and government entities holds muchpromise.
Corporate Social Responsibility
In FY 2016-17 Mindteck allocated more than 2% of its last three years average netprofits toward India CSR activities ranging from education economic independence andSwachh Bharat Abhiyan as follows:
Bengaluru Samarthanam Trust for providing technology- enabled learningtools for the visually impaired.
Government Girls High School and Government Pre-University (PU) College forGirls in Hoskote for improving sanitation facilities.
Gandhi Old Age Home for ambulance and infrastructure support.
Western Railways Mumbai for upgrading toilet blocks on suburban railwaystations.
The US CSR initiative that was launched last year provided targeted local giving toseven organizations across the four US regional territories we serve. Child hungercomputer science learning for children cancer survivors and their families and the blindwere among the efforts supported.
New leadership at the helm to steer future growth
Over the last several years we have strengthened our continuous improvement effortsacross the organization. We ended this momentous year by separating the top two executiveroles in keeping with our Corporate Governance standards. In my new role as Non-ExecutiveChairman I welcomed Sanjeev Kathpalia as the new Managing Director and Chief ExecutiveOfficer on March 012017 to take on the helm to spur growth and provide further value toour stakeholders in the years to come.
We also signed the lease for our new India headquarters at Bengaluru's AMR Tech Park.
We embark on a new year with optimism and appreciation to everyone who contributed toour longevity and success. On behalf of Mindteck's Board of Directors I would like totake this opportunity to thank our valued clients for their enduring confidence ourshareholders and partners for their continued support and our employees for theirtireless efforts and commitment every day throughout the entire year.
|Yusuf Lanewala |
|Non-Executive Chairman |