the Managing Director
"Winning isn't everything but wanting to win is." Though Vince Lombardi Jr.expressed this thought several years ago in the context of sports it is equally apt forthe world of business. In this era of extremely challenging business environment givingit everything necessary and putting in 100% effort is important. In the year gone by weas a team did exactly that. Though our efforts may not have delivered the desired resultswe are very much in the game determined to re-double our efforts towards reaching ourgoals in the years ahead.
Times have changed and with it the way businesses operate. The world is moving fasterand events are happening quicker aided by dramatic technological developments resultingfrom humongous volumes of information available at warp speed and on tap; somethingunimaginable even a decade ago.
This is bringing about significant transformations in the way Distribution businesswill be conducted in the future.
Engulfed by ebb and flow of a rapidly changing economic environment FY 18 was aneventful period. Introduction of the unifying Goods and Services Tax (GST) in Indiareplacing most of the statutory levies on sales saw a massive transformationalrestructuring of indirect taxes promising a much simpler regulatory regime forbusinesses. Your Company was prepared to undertake this transformation well ahead of timein cooperation with its vendors and business partners and was quick to get off the blockonce GST was rolled out on July 1 2017.
Introduction of GST and the resultant change in the taxation structure did lead tolower revenue compared to the previous period and the impact of translation loss due toappreciating Rupee was also felt in the financial results for the year. Your Companydelivered consolidated revenue growth of 5.7% and a PAT growth of 3.7% despite all theodds faced in FY 2017-18.
It would be pertinent to note that the overseas business grew in revenue by 10.6% andPAT by 15.6%. A relatively subdued performance in the domestic market was more thanadequately compensated by this strong performance in the overseas markets whichcontributed to 64% of the overall revenue during FY 18. The strategy of having strongbusiness operations in diverse markets has helped your Company overcome the challengesposed by one market by taking full advantage of opportunities presented in othergeographies helping it grow at a consolidated level.
Since its listing on the bourses your Company has exhibited a compounded annual growthin Revenue EBITDA and PAT at 16% 14% and 15% respectively.
Remaining steadfast in the objective of delivering the best possible value to ourshareholders in the form of consistent dividend payments the Board of Directors haveproposed a final dividend of Rs. 2.40 per share for the financial year ended March31 2018.
Financial Year 2017-18 will remain an important landmark in the history of yourCompany. It will be remembered as a year in which we evolved from a promoter-led to aBoard governed and professionally managed entity as our erstwhile promoters HarrowInvestment Holding Limited divested their entire shareholding in the company. I take thisopportunity to thank them for their continued support over these years.
Redington Gulf FZE has maintained its dominant market share in the MEA region and hascontinued its phenomenal growth curve. You would be pleased to know that it has beenadjudged as one of the "Top 25 Great Places to Work" 2017 in the UAE.
For yet another year the Turkish market went through a very rough phase with thecountry facing severe political and economic challenges.
In the context of Indian Subsidiaries ProConnect Supply Chain Solutions Limited(ProConnect) demonstrated a stellar performance during the year delivering double-digitgrowth in Revenue and Profit after Tax. ProConnect acquired several new customers duringFY 18 and managed to enhance business with a number of existing ones. In the coming yearswe plan to accelerate ProConnect's growth even further through Organic and Inorganicinitiatives.
Ensure Support Services (Ensure) delivered muted results for the year ended March 312018. It is now going through a correction phase. We are repositioning the Company frombeing just a break-fix and repair services provider by moving it up the value chain andproviding value-added services. We expect this business to scale operations going forward.
During the year we unveiled our new brand identity. The new identity carries with itthe legacy of the company's "Values" which have been painstakingly built overthese years. Be it our vendors or our partners these Values have been instrumental inbuilding long-lasting relationships paving the way to a legacy of continued success
The amount of faith and trust these stakeholders have on us is immense. This newidentity signifies the new energy with which we shall address the burgeoning newopportunities as we graduate your Company to the next level of growth and expansion.
When I think of the way forward I recall the quote by Robin Sharma - "Until yourmission becomes your obsession your craft will never become your genius". YourCompany's mission is to craft a technology platform that would offer a seamless deliverychannel for a bouquet of products and services to its diverse customer base.
Amidst this 4th industrial revolution we are witnessing an unparalleled change intechnology and business arena.
'Perform or Perish' has been re-coined as - 'Rebrain or Rot'.
In this era of disruption we as an organisation constantly seek to sense thechanges respond to them and re-build the organisation as an adaptable and resilientCompany guaranteeing its longevity.
We are focussed on revamping the organisation structure centred around customerexperience. As a part of Redington's digital transformation journey we are planning tobring together all our systems processes operations and infrastructure onto a commonenterprise business platform.
Our focus for FY 19 is to optimise our operating expenses to maximise the operatingleverage of our infrastructure and human resources.
Your Company is strongly committed to giving back to the society in which it operates.I am gladdened that our efforts in creating value by promoting employability skilldevelopment health and wellness are having a positive impact on societies. Our CSRactivities have touched the lives of more than two lakh beneficiaries.
During the year Ms. Suchitra Rajagopalan Independent Director and Mr. Lin Tai-Yangresigned from the Board due to personal reasons. I thank them for their contributionsduring their tenure on the Board. I would like to welcome Ms. Yi-Ju Chen arepresentative of Synnex who was appointed on the Board as Non-Executive Nominee Director.Mr. Ramaratnam who was hitherto a Non-Executive Director has been designated as anIndependent Director as he fulfilled the requisite statutory criteria subject to theapproval of the Shareholders.
I extend my hearty thanks to every Redingtonian for their dedication and commitment todrive the Company's business objectives. My sincere thanks to all the stakeholders fortheir immense support which has been a major contributor in our journey towards continuedgrowth.
With warm regards