The year gone by has been an eventful year in many respects. It was a year ofre-imagining and laying the foundation of the new TechM. Our journey of re-inventingourselves has been challenging and fulfilling but I am happy to report that we have begunthis journey well. I am proud of the resilience we have demonstrated as a company and amconfident we will continue to build on it.
Last year we restructured our organization to be more agile and responsive modernizedour service offerings by focusing on new digital technologies while driving automationand productivity through our platforms. We also expanded our capabilities by creating newand innovative partnerships in our quest of pursuing our vision of the connected world andconnected experiences. As I review FY18 I believe we have done reasonably well. We endedwith a revenue growth of 6% at Rs 30773 crores and our profit after tax was Rs3800 crores up 35% YoY. In dollar terms our revenue was USD 4771 m up 10% and ourprofit after tax was USD 588 m up 40 % year on year. One of the notable achievements lastyear was the EBITDA margin expansion of 550 basis points through the year which I believeis a reflection of the dedication and hard work that the team has put in. Overall ourDigital business grew much faster than the Company's average and stood at ~27% ofrevenues. The Enterprise business grew 19.1% YoY while the growth in Communicationbusiness was muted due to market conditions as well as our exit from certain low yieldingbusinesses. Some of our portfolio companies saw a strong recovery in revenue growth andmargins including the Digital Healthcare consulting company The HCI Group which weintegrated in the first quarter of Fiscal 18.
Disruption the biggest challenge and the biggest opportunity!
Technology has become the central enabler for most businesses today. The ongoingevolution of the digital economy abounds in great opportunities but also brings severalnew challenges. As an industry we need to shift from being a technology facilitator to aprovider of innovative connected experiences for our clients' businesses. We need tobridge the gap between the physical and digital world we need future ready associates whocan deliver to expectations and lead the charge on future-defining technologies such asartificial intelligence augmented and virtual reality. The pace of invention isstaggering and so is the pace of change making it doubly important for businesses to beFuture ready! How can we as an organization do it?
FUTURise to the new normal
FUTURise is our clarion call to become relevant for the future. How are we stayingrelevant in the future : OUR TECHNOLOGY BETS
We are building a connected ecosystem that will enable us to create customer valuethrough innovation and most importantly ensure our associates are future proofed and havefulfilling and long careers. Based on our core strengths and the market demands and builton our brand philosophy of creating connected experiences for a connected world we haveidentified four key technology areas :
Customer Experience Management
Internet of Things (IoT)
Software Transformation and
Networks of the future
Our recent announcement on ACUMOS - our tie-up with AT&T and Linux Foundation tomake AI accessible to all is a reiteration of our focus and investment in technologiesfor the future. One of our key focus areas last year was talent management and we havetied up with world-class content partners such as edX & Pluralsight with AI basedpersonalized learning aggregators like Edcast among others to ensure we provide ourassociates with best-in-class learning and they get the opportunity to get reskilled tobecome the workforce of the future. We have launched an organization-wide CareerCounselling Program which has already enabled our associates to chart a better careerpath. These are exciting times for the industry and I truly believe we can lead this wavethrough our connected culture and FUTURise. And I know we can because we have the mindsand might of a 112800 strong army of TechMighties with us. An army that's never acceptedany limits and has only Risen higher each time.
As we build and prepare your company for the future i.e. TechMNxT we are focussing andemphasizing on the need for "Platforms" and collaborative disruption. Wetherefore launched this year with 130 + global analysts our work so far and vision forTechMNxt. This consisted of our "343" strategy 3 trends 4 tech bets and3 focussed business outcomes of Run Change and Grow. We also are driving aggressively thecreation and acquisition of platforms this combined with our eco system of partnershipboth our traditional ones and the startup ecosystem in silicon valley Israel UK andIndia we feel confident that your company is well on its way to be ready for the futureneeds of our customers associates and shareholders.
Rise For Good
Tech Mahindra Foundation - the CSR arm of Tech Mahindra Ltd has been working tirelesslyin the areas of education employability and disability with a keen focus on corporatevolunteering. We have established various programmes over the last 10 years to takeforward our objective of Empowering Through Education'. Our flagship programmeSMART that aims at skilling youth trained more than 16000 youth through 100 vocationaltraining centres this year with the placement rate of nearly 70%. The Foundation's SMARTAcademies for Healthcare and IT are also doing good work in Delhi Chandigarh andVishakhapatnam and are aimed at creating a cadre of well - qualified trainedprofessionals in the field of allied healthcare and IT sector. The Foundation supported 68schools under its education programme and reached out to 20498 beneficiaries throughmunicipal corporation schools this year.
Before I conclude I want to highlight a few notable recognitions: During the year TechMahindra was identified as the global leader for its actions and strategies to managecarbon and climate change across the supply chain and has been awarded the supplierengagement leader board by CDP the non-profit global environmental disclosure platform.Tech Mahindra happens to be the only Indian company which got such a recognition. TechMahindra has received the "2018 AT&T Supplier Award" for its OutstandingPerformance and Services to AT&T during the past year across a broad section ofselection criteria including suppliers' diversity creative cost management teamworkcustomer service product service producer service performance and sustainability. Thecompany is committed to driving innovation and the thought leadership across all lines ofbusiness. I sincerely thank all our stakeholders our customers our employees and ourshareholders for their unstinting support and guidance. I am re-energized and excitedabout the opportunities and look forward to the new Fiscal 18-19 as we continue to leadthe change!
| ||Sincerely |
|Place: Mumbai || |
|Date: May 25 2018 ||C. P. Gurnani |