We are pleased to present the financial statements for Mindteck'sfiscal year 2018-19. The Company reported standalone revenue of Rs. 107.63 crores ascompared to Rs. 88.42 crores for 2017-18. Consolidated revenue stood at Rs. 299.41 croresas against Rs. 296.84 crores for the previous year ended March 31 2018. Standalone netprofit after tax stood at Rs. 7.19 crores while consolidated profit after tax was Rs.2.74 crores. The Board of Directors has approved a 10% dividend payable 30 days from thedate of declaration to shareholders appearing on the Register of Members as on August 072019.
During 2018-19 against the backdrop of continued market competitionmargin compression and talent scarcity the Company achieved progress on the strategicpath set forth last year: Aligning our business around the expectations of our clients;Embracing the emergence of a reimagined Mindteck; Furthering our growth through a wideexpanse of opportunities and Sharpening our focus on our competitive strengths. Notableinroads were made building new competencies for clients to complement our legacy expertisein embedded systems enterprise applications and testing. Just as importantly we gainedground building a digital core becoming more agile and staying relevant.
Along the Digital Continuum
Over the course of the year our discussions with both clients andprospects increasingly elevated to topics related to their journeys along the digitalcontinuum such as modernizing legacy applications upgrading outmoded process and testingframeworks and applying model-analyze-build' methodology in productdevelopment. This bodes well for near and long-term growth since it positions us closerto becoming a strategic enabler in the current transactional environment. We are pleasedto report that Mindteck's design and development methodologies practices andprocess framework approaches are continually evolving to be on pace with ongoingtechnological change. The transition began a number of years ago when we moved oursoftware development process from the sequential waterfall model to the agile developmentmethodology. This transition resulted in improving our clients' ROI and productquality and reducing project risks thus enhancing customer satisfaction overall. We alsoinstituted model-driven engineering to simulate components for a pre-check on feasibilitydevelopment and performance before the system is built. This provides a more integrateddevelopment environment for future incorporation of big data AI and the like. Next weincorporated automation and testing to enhance the throughput and reliability of softwareverifications cloud enablement of applications as well as data visualization andanalytics to help identify patterns of product utilization.
We are also pleased to report that our portfolio of offerings expandedto include cloud analytics automation test frameworks for platform and storage testingas well as Robotic Process Automation (RPA) a technology that harnesses artificialintelligence to transform business processes. With RPA software robots are configured toemulate and integrate human interactions to enable organizations to rapidly automate andbenefit from significant cost and time solutions RPA leverages existing infrastructurewithout disrupting underlying systems to optimize an organization's digitaltransformation journey.
During the year we entered into a partnership with UiPath an industryleader in RPA. The company provides the most widely used RPA platform in the worldcombining elite enterprises and partners committed to excellence in implementation andproduct innovation with the largest RPA developer community. Our partnership is a criticalstep forward in demonstrating our commitment to delivering niche knowledge that matters intoday's rapidly evolving technological environment to help our clients propelcompete and innovate as they move forward along the digital continuum. As part of thiscommitment during the year we also established a dedicated Research and Technology Group(RTG) to augment our existing R&D group with SMEs in focused technologies such asAnalytics RPA IoT and Cloud. A Center of Excellence for Automation which is currentlybeing developed will help support the Group's effort in best practices and thoughtleadership.
Year after year we remain relentless in our pursuit to cultivateadvocacy and trust from our clients. We know that our success is very much dependent uponour ability to consistently execute on the deliverables our client expects to ensure thattheir R&D and technology investments are optimised and to improve our capacity toanticipate their future needs. Moreover we know that doing all that we can do to ensure apositive experience all around is essential. While there is a long way to go we tookmeaningful steps toward this effort during 2018-19. Strengthened Leadership: AnandBalakrishnan Mindteck Chief Financial to July 2017 rejoined Mindteck to serve as ChiefOperating Officer. He is a seasoned results-driven professional who is settingoperational priorities to increase efficiency and productivity with an eye toward ensuringpositive contributions to both our financial performance and client experience. RaviRamaiah also joined Mindteck as Head of Quality Assurance. He is a change managementexecutive who is re-engineering the department to enhance QA information security and ITgovernance. Improved Processes and Frameworks: We are incubating the aforementioned RPAinto the organization in order to speed up transactional activities all the while beingmindful of the value of human expertise. The Quality Group initiated simplification ofand enhancements to existing processes related to project management engineering andsupport using the Lean Principle and ETVX (Entry Task Validation and Exit Criteria)along with swimlanes. This helps in sequencing process activities and their interactions;brings better clarity to initiate process improvements initiatives; and in transitioningto CMMI Version 2.0.
Fortified Talent Management:During 2018-19 several steps were taken toensure employee readiness for the near and long term including competency mappingcentralized HR partners to needs and soft skill training.
Introduced New Engagement Model: Early on in the year we workedclosely with a long-standing client to develop a new business relationship hinged onoutcome-based projects. To date we have successfully executed three such projects.
Improved CSAT Ratings: In 2018-19 our Customer Satisfaction ratingswith IT Services Electronic Design and Storage clients improved to 9.0 from the 8.9ratings over each of the last three years.
Key Project Highlights
We are very pleased to report that the Company added 25 new clients toits roster with projects spanning across domains and geographies includingimplementations in IoT big data cloud and analytics. In IMEA we secured an importantproject with a leading state-run school system in support of the Indian government'sinitiatives to bring 21st century technology to the country's educational system.This will enable Mindteck to digitally transform the municipalities' secondary schooland higher education frameworks and impacts approximately 40000 students 572classrooms and 55 labs operating in a total of 72 schools. The project encompassescloud-based centralized analytics and ERP solutions best-in-class facilities and amobile app for students and parents.
Other highlights for the region include: ? Building a smarthazardous waste disposal solution for a leading medical client that specializes in IVtherapy products systems and services. The project includes prototyping hardware andmechanical design software development and functional testing. ? Developingfront-end analytical dashboards for a Fortune 500 storage client. ? Won newbusiness with a government healthcare entity in Qatar.
We expanded business in the APAC region by securing engagements from aglobal industrial automation company a car audio manufacturer a utilities company and aleading multinational communications provider. Additionally we are: ? Redesigningan E3-Interface Card targeted for use in the telecom sector for one of Asia'slargest defence and engineering companies. ? Designing and developing astate-of-the-art smart street lighting system module for harsh environments for a leadingworldwide industrial solutions provider. The advanced miniaturised module enables poweroptimization and is reusable for a range of lighting controllers. It also addresses a widearray of challenges faced by the OEMs including inventory reduction increased costreduction.energy ? Developing and testing embedded system drivers for a leadinglife sciences analytics client. In Europe we won a significant product developmentproject from one of the premier global biopharmaceutical companies; expanded existingbusiness with a UK-based medical device client; started work with the largest Europeanindependent IT systems integrator; and established a new customer relationship with aEuropean medical technology company. Other highlights include: ? Won new businessfrom a premier health technology company. ? For a leading power electricalequipment manufacturer Mindteck will provide real-time indoor location tracking andproductivity analytics for forklifts and other mobile equipment within their manufacturingfacility.
In the US we started a three-year project with a national leader incloud software and hyperconverged infrastructure solutions. The engagement encompassescomplete test framework development and product platform testing for the company'slatest cloud services offering that enables seamless solution deployments. Additionallywe secured: ? A capillary electrophoresis instrument control software developmentproject for a US-based global leader in mass spectrometry. ? New professionalservices clients for the US state governments of New York Virginia and Michigan.
During 2018-19 we prudently increased investment in sales andmarketing activities to support a variety of brand-building endeavors: ? Joined theNetApp Alliance Partner Program as an Advantage Alliance Partner. This partner communitywill provide access to NetApp training tools and resources to support the integration ofpartner solutions as well as enhance the data-driven cloud services portfolio we offer toour clientele. ? Participated in NetApp Insight 2018 as a silver sponsor andjoined other storage and data professionals in discussions about NetApp's innovationsin cloud data management software storage and partner solutions. ? Exhibitedfor the first time at Pittcon the most attended annual conference and exposition onlaboratory science in the world. IntelliLab our laboratory data analytics softwaresolution which provides a 360-degree view of lab activities was well-received along withthe other engineering and technology solutions showcased to the select audience. ?Participated in Zinnov Confluence 2019/Santa Clara an invitation-only thought leadershipand networking platform for CXO-level engineering digital technology and businessleaders from around the globe. Mindteck conducted the masterclass on automation andautomated testing. ? Presented our IIT BHU Smart Grid Solution at the Smart GridConclave at IIT Delhi. The event was attended by the Ministry of Power as well as variousother utilities. ? Hosted the T/E/N Storage Meetup in partnership with the StorageNetworking Industry Association (SNIA). ? Participated in job fairs in BerlinHamburg and Stuttgart in conjunction with our T5 Karriere Portal partnership whichprovides access to a dedicated online portal to attract freelance computer scientistsengineers and scientists.
Last but not least we were gratified to be identified as a niche andemerging player in the Zinnov Zones 2018 Engineering R&D Services ratings. Zinnov aglobal management and strategy consulting firm has been annually assessing the prowess ofglobal service providers in overall horizontal and vertical-specific ER&D servicescapabilities since 2009.
Specifically Mindteck was rated in five Zinnov Zones: Emerging Zone inOverall ER&D and Quality Assurance Engineering; Execution Zone of leading serviceproviders in Computer Peripherals and Storage as well as Enterprise Software; and theBreakout Zone of leading service providers in Medical Devices. Factors underlying theZones ratings include clientele R&D delivery engineering capacity niche capabilityinnovation frameworks and specific industry alliances partnerships and membership inglobal forums. This acknowledgement is a testament to Mindteck's long-standing clientrelationships and strong niche capabilities as well as our smart investments in peopletraining new technologies and other emerging growth opportunities.
Mindteck's social responsibility commitment is part of We Care. Webelieve that through our successes around the globe we should give back in kind and deed.We do what we can to create shared value and steward resources to create hopeful tomorrowsfor others. In 2018-19 we fulfilled our commitment again with three funding allocations:Gandhi Old Age Home: In November Mindteck donated a commercial washing machine that wasmuch desired by its approximately 50 residents who are elderly blind or mentallychallenged. Swami Vivekanand Shiksha Samiti: In conjunction with Women's Day 2019Mindteck inaugurated three dedicated pink parking sites for women in the city of Bhopal.Mantra4Change: Once again this year Mindteck contributed toward the SchoolReadiness Program' for Early Childhood Education (ECE).
United and Determined
Though challenging times persist in this increasingly complex world weremain united and determined to grow and thrive. Our most sincere thanks to all of thosewho continue to contribute to our longevity and success; our clients for their enduringtrust and confidence; our shareholders for their continuing commitment; and our employeesaround the globe for their unwavering dedication and hard work.