Im proud to present to you die yearly report 2019; one more year of amazingperformance by your company SoftTech Engineers Limited.
Bettering expectations your company has registered fantastic growth figures. Thecompany has also bagged some prestigious projects. You would be proud to know that yourcompany SoftTech Engineers Limited is contributing a lions share towards Ease ofDoing Business (EODB) and Digital Initiatives by the government of India. I personallytake immense pride in reiterating the same.
Not to feel content by its past laurels your company is totally focused on the future.By adopting emerging technologies and pursuing new opportunities SoftTech EngineersLimited is all set to strengthen its position as a leader in Building Permit SystemsInfrastructure Project Management and solutions for Digital Construction. Continuouslyinnovating and investing strongly in R&D your company is committed to offer cuttingedge software products to its customers and generate greater wealth for the stakeholders.
Domestic & Global Economic Developments
The AEC (Architectural Engineering & Construction) Industry in India continues toreceive a strong boost. Indias construction industry is expected to grow at acompounded annual average of 6.44% to US$690.9 billion in 2023. This is further to aregistered output growth of 8.8% in 2017 up from 1.9% (source GlobalData). Additionallythe Central Government initiatives like Ease of Doing Business (EODB) Digital IndiaSmart Cities Mission (SCM) and AtaJ Mission for Rejuvenation and Urban Transformation(AMRUT) have maintained a strong focus on automating government processes in India. Yourcompany considers this as an opportunity worth capitalising on.
AutoDCR and PWIMS continue to meet the requirements of the construction industry andyour company is witnessing a sustained demand in e-Govemance projects for construction& infrastructure software. With the introduction of RERA the private constructionindustry is evolving into a much more organised sector. This has advertently created ademand for the construction ERP like Opticon. Considering the potential to grow inoverseas market and upbeat response to initial market survey your company has set upsubsidiaries in international market with the objective of tapping into the internationalgrowth and demand for software in construction industry. Your Company is looking atinfusion of investments to feel the growth entering in International market.
I am happy to report that during the financial year 2018-19 your company has furtherreinforced its position as a leader in the implementation of "Building Plan ApprovalSystems" in India. Its flagship product AutoDCR is at the forefront of enablingfaster construction permits in India and has bagged the order for implementing AutoDCR onSaaS model in the largest state in India - Uttar Pradesh which is the first of such kindof state-wide initiative
Your company delivered a healthy financial performance and all-round growth across allparameters. The future looks equally positive with improving trends. The company isperfectly positioned to be the key beneficiary of industry opportunities as evident fromour total revenue in FY18-19 at Rs. 62.76 CR achieving a growth of 22%. By concentratingmore on quality and high profit revenue by tapping into new opportunities and betterutilization of our resources the Profit after Tax has gone up by 15% in comparison to FY17-18. SoftTech Engineers Limited bagged a prestigious new orders for state-wideimplementation of AutoDCR in the state of Uttar Pradesh and PWIMS for the state of AndhraPradesh. The company has also enhanced our on-going business relations with State ofTelangana.
Technology Vision and product roadmap
The world is moving towards cloud-based solutions on SaaS model and your company isfully geared up to offer its solutions utilizing on cloud. Our project for theimplementation of OBPAS (Online Building Plan Approval System) for Housing & UrbanPlanning Department Govt of Uttar Pradesh is a project based SaaS methodology. With thisproject SoftTech shall be entering into the lucrative cloud-hosted portal-based servicedelivery approach from earlier license based on premise server based approach. The SaaSbased approach has great advantages; payments will be collected directly online from theapplicants on the basis of per square meter of approved carpet area of buildings.Were receiving informal inputs from many customers to opt for SaaS model instead ofthe traditional license model. I envision this shift in business model is a positivedevelopment with continuous revenue stream on a long term basis.
During FY-18-19 your company has established its subsidiary in USA focused towardsgaining business from both government and corporate businesses. The team is now working oncustomizing software products to meet the specific requirements of the US market.
Additionally your company will be leveraging latest technologies like Internet ofThings Artificial Intelligence Machine Learning Virtual & Augmented Reality and BigData Analytics in enhancing existing products and launching new products like Rulebuddyand IBPS.
Your company is looking forward to further consolidate its leading position in BuildingPlan Approval Systems in India at the same time widening the reach of its other productsin the market and making significant penetration in private sector.
We are now motivated to enter the international market; having established subsidiariesin the United States and signing agreements with US based partners. Apart from the USA weare in the process of signing agreements with Partners in countries in Asia Pacific. Thiswill help your company to make entry into the international market increase its salesrevenue and achieve higher profits. On the whole we shall continue to drive theCompanys Revenue and Profitability increasing Return on Capital Employed andresource utilization and improving cash flows for our business with strong ethical andcorporate governance practices.
Your company remains guided by the values and culture it believes in. with a team of500+ members is bound by high Company values and ethics which translates into valuegeneration for its customers. Im confident with the continued growth focus; yourcompany will reach even higher summits.
Last but not the least I would like to thank you for your constant support andincreased faith in your companys abilities to make further progress and earnestlyseek your continued participation in your companys upcoming success stories.