Dear Fellow Shareholders
It gives me great pleasure to share my thoughts on the Financial Year 2019 performance.It was a great financial year that observed robust top line as well as bottom line growthmainly driven by our US business. We continued to invest in people IT systems andsoftware platform to strengthen our capabilities for future growth. We continued to investin our strategic partnerships with esriR and also SAPR and CiscoR.
Let me first share key financial highlights of FY19 with you:
Our total revenue stood at Rs. 1031.1 million in FY 19 against Rs. 952.1 millionin FY 18.
Our net income for FY19 was at Rs. 102.3 million as against Rs. 31.7 million inFY18 reflecting a growth of 222.8% over previous year.
Our operating revenue stood at Rs. 967.6 million in FY19 as against Rs. 870.5million in FY18 reflecting a growth of 11.2% in rupee terms. The growth was mainly drivenby growth in US business which constitutes 91% of revenue.
Our EBITDA for FY19 was at Rs. 198.7 million (19.3% of total revenue) as againstRs. 114 million in FY18 (12% of total revenue) a substantial growth of 74% on YoY basisand 21% operating margin in FY 19 shows our operational discipline
We continue to have a strong balance sheet with reliable long term profitstreams predictable business and no debt.
Our US based business maintained growth of 19% for the year primarily led byorders from both new and existing customers.
Change in India based operations relating to GeoCivic and focus on softwaresales through channel partners.
During the year we won an important contract for SAP S/4 HANA implementation from alarge chemical company. We will continue to focus on deepening our SAP relationship andsee SAP S/4HANA move as a great opportunity for us going forward. Our joint workshopoffering with SAP Database Migration Factory in India is gaining traction from severalIndian enterprises. Our product portfolio continues to be promoted through our strategicchannel partners - CiscoR MicrosoftR esriR and SAPR. During the year your company was honoured as an esriR CornerstonePartner at the esriR Partner Conference 2019 which validates our commitmenttowards the GeoSpatial community. Our long term partnership with Esri has consistentlydemonstrated that with strong and unparalleled GeoSpatial expertise we can help ourcustomers to derive tremendous GeoSpatial insights. Our partnerships and alliances are thekey growth driver in Company's future growth.
We have recently launched our second technology support centre for esri's cutting-edgeGIS products and technologies in Pune. The new location will focus on expandingCyberTech's world-class capabilities in offering support for ArcGIS product suite to usersglobally. We are privileged to have Esri as an invested partner and look forward to notonly continuing to provide high quality technical support services but also delivercomplex solutions based on large geographically enabled data sets. As a 20 year partnerwe are committed to invest in bringing to the market latest Esri's GIS solutions Cloudbased Enterprise Analytics along with Spatial SAAS Services.
Our US-based subsidiary Spatialitics LLC which was formed to focus on our spatialanalytics based fabric and product portfolio is growing in line with our strategy. We arein process of discussion with several leading Utility players to become our"Lighthouse customers" for our product suite. We see significant momentum in ourHIPAA-Compliant Geocoding service and Spatialitics Utilities Apps suite. We will continueto invest in our engineering product developments under the Spatialitics brand.
During the year we formed an Industry Advisory Board for Spatialitics with prominentindustry leaders from various domains. Captain Brandon Gillespie from Modesto PoliceDepartment joined the Advisory Board as our Public Safety expert. His advice will help usto revolutionize the public safety sector with the use of spatial analytics. Also Mr.Mike Armstrong GM of WaterOne joined as the Chairman of the Advisory Board. Hisleadership will help us deliver superior value to regulated industries such as Utilitiesusing spatial analytics and establish Industry user groups.
We will continue to focus strongly on marketing to generate demand. During the year weparticipated and showcased our SAP offerings and Spatialitics products in SAP FKOM (SAPField Kick-O_ Meeting) 2019 and GeoSpatial World Forum 2019. Our experts were part ofpanel discussions in several SAP and Esri events. We have also become a member of AmericanWater Works Association (AWWA).
We continue to focus on reducing cost and improving operational efficiency. Our targetto complete existing GeoCivic accounts by FY20 is on schedule. GeoCivic continues to be apowerful product for municipalities to manage their property taxes efficiently and hencewe are trying to change our business model from existing Service Industry to pure SoftwareSeller through Channel Partners.
Today's enterprises are sitting on oceans of data and meshing up this data can offersignificant strategic advantage. Unfortunately in most of the cases either the datasources are operating in silos or are not structured in meaningful way failing to offerthis competitive advantage. Also the amount of risk involved in transforming existingdigital systems to new age ERP's are stopping enterprises investing in such initiatives.Zero Risk transformation approaches and ability to connect disparate data sources togenerate ready-to-act insights are the need of the hour for modern-age enterprises andyour company is moving towards right direction as we have this mix in our offerings. Iwould like to conclude by saying that we see good growth momentum in our business guidedby the clear articulation of our strategy the strong support of our Board and thecontinual commitment of the management team to make this a reality. We stay committed tohelp our customers in achieving better performance in their respective industries and todeliver enhanced value to all our key shareholders. On behalf of CyberTech's Board Iwould like to thank all our shareholders customers and employees for reposing their faithin us. We are confident about our bright future for CyberTech.
Vish Tadimety Chairman
Trevose PA USA
Date: August 12 2019