Speech of Mr. Annand Sarnaaik, Chairman and Managing Director of Glodyne Technoserve Inc, at the 14th Annual General Meeting of the Company held on September 15, 2011.
Ladies and Gentlemen
Good Afternoon, on behalf of the Board of Directors, I extend to each and every one of you a very warm welcome at this Fourteenth Annual General Meeting of your Company.
At Glodyne, we tell employees that success is truly a journey not a destination. Glodyners instinctively recognize that past accomplishments don't guarantee future successes without raising the bar continuously in today's business environment
Over the past several years, your company's vision of becoming one of the largest technology services provider is rapidly taking shape.
Last year, we talked about of becoming one of the largest Technology Services providers from India, that we will be class leaders in the managed services space; that we will participate in market opportunities that give us long term profitability and predictable revenues; that we will enhance our commitment to high growth markets and reap rewards from it.
I am very pleased to state that we have been able to fulfil our own expectations in these areas. Our acquisition and subsequent seamless integration of Decision One has provided us with technology platforms and substantial global scale for class leadership in the managed services space in both centralized and distributed computing platforms. This acquisition not only provided access to the world's largest managed services market in US but also has potential to boost our business because of the global contracts we hold with several clients.
We are powering our focus on growth markets- Financial Inclusion, E Governance and Education by way of innovative technologies, investments in people and upgrade of our process. In these markets, our clients are increasingly providing us with not just technology ownership but also business process ownership so they can focus on their core business while we create technology driven manage services platforms for them. This has increasingly allowed us to scale up the value chain, drive higher margins and fuel growth in the organization.
Of course the only place where success comes before work is in the dictionary. All of this has been made possible by untiring efforts from your management team and the passionate employees at Glodyne. These efforts have resulted in development of a tighter organization focus, refinement of processes to achieve higher scale and development of innovative technology platforms.
Our financial performance for the year, has been as per our expectations and we have been successful in bettering the guidance provided by us at the start of the year. For the financial year 2010-11, Glodyne has registered revenues of Rs 1,750 cr on a consolidated basis, 133% growth over FY 2009 - 10. The EBITDA grew by 87% over FY 2009- 10 to Rs.323.23 cr. Net profit for FY 2010- 11, was Rs 177.29 cr, up 77% over FY 2009-10. The basic EPS for the year is at Rs 40.46 against Rs 24.56 which is adjusted for the share split from face value Rs 10 to face value Rs 6. Our company’s geographical mix for the year was 58% India and 42% North America. We are working relentlessly towards our billion dollar revenue milestone to be achieved in the next few years.
To summarize few highlights for the year were:
- Our Acquisition of DecisionOne. With DecisionOne, now we also have significant presence across North America, and an opportunity to do a lot of transition and transformation across processes, services and delivery mechanism. Having successfully completed the integration, we intend to re-align the cost matrix in the short term, in the long term we intend to expand the services across our clients in the geography, as there is a lot of opportunity to provide them with innovative technology services which are more responsive and provide better value.
- We embarked upon the largest and first of its kind urban Financial Inclusion project for 20mn labour force in the state of Maharashtra. It is a comprehensive and automated system designed to interlink the industries, the shops & establishments, the construction contractors and other unorganized sector’s employees through the Labour department and Banks. This would help in bringing accountability and transparency in the system to ensure the implementation of the various labour laws
- Our path breaking E-shakti project has implemented MNREGA by guaranteeing employment to poor and giving them banking facilities. The banks also gave us great support and we were able to provide end to end service to them. E-shakti is a perfect example of our ability to bring diverse elements together to provide end to end solutions that justify a broad spectrum of objectives. I am pleased to share with you that this project has been awarded as the best e-governance programs by many bodies.
- We were also proud to associate with the UIDAI in the launch of the first set of ‘Aadhar’ numbers in the Country from the Tembhli village of Nandurbar district, which was inaugurated by the Prime Minister. UID is a transformational and a historic project being implemented in the country and Glodyne is committed to provide all possible support to the program, having earlier done the proof of concept for UIDAI in the state of Bihar.
Our India businesses stand at an important juncture where we have gained adequate foothold on some of the most crucial sectors of the Indian economy. Owing to the market growth, these sectors: financial inclusion, education and e-governance are termed as sunrise sectors of the economy. Each of these sectors witnessed sharp increases in spending by the customers. With our strongly developing legacy and body of work we built over the past several years positioned us well to take advantage of the expansion in the marketplace.
Overall, the global Glodyne Corporation is in a strong position to capitalize on the opportunities created by market trends and acquisitions. To prepare for such opportunities, the corporation is investing significantly in making its processes and capabilities robust in each of the focus areas. We have our growth levers in place and a clear strategy to become leaders in the space we operate in which will be achieved through The Glodyne Way, which is based on Transformation, Innovation and Excellence.
Glodyne has always been focussed on delivering performance to enhance our shareholders value. I trust all of you are pleased with the results for the year ended March 2011 and our recommendation for a 70% dividend which is Rs.4.2 per share .
On behalf of the Board of Directors, I take this opportunity to thank all our shareholders for their confidence and faith in the company, our customers and vendors for their continued co-operation and support. I would also like to thank all the employees of the Company, for their dedicated service - and for their continued contribution in building a stronger Glodyne.
Chairman and Managing Director