The year was marked by the introduction of Goods and Services Tax (GST) hailed as thebiggest tax reform since independence. This one nation one market one tax'heralded a revolutionary change in the tax structure of the country.
GST was introduced on 1st July 2017 and resulted in a sharp decline in thetop line of many companies including ours and we had a first half of deceleratingproduct revenue growth. But our company aligned swiftly to the new environment andresponded to the challenges well with a strong second half performance. The impressiverecovery in the second half of the year largely made up for the sharp decline that tookplace in our business on account of the new tax structure. I am glad to share that we arenow well aligned and equipped to commence our next phase of growth.
Our Total Income on standalone basis declined marginally to Rs 6437.76 million from Rs6892.28 million in the previous year while Profit for the year from continuing operationsdeclined to Rs 157.54 million from Rs 233.13 million in the previous year.
On consolidated basis the Total Income for the year stood at
Rs 6619.90 million as against Rs 7085.91 million in the previous year while Profit forthe year from continuing operations clocked Rs 126.92 million as against Rs 166.73 millionin the previous year.
D-Link India designs develops and markets networking products to enable customers tobuild reliable secure and cost effective network for their homes and businesses. Our highperformance networking product and service offerings span the entire range of routingswitching security and surveillance technologies.
We are recognized as a leading player in network innovation and strive to constantlybuild products incorporating cutting edge technologies that transform the experience ofnetworking and significantly improve customer economics by lowering the capital requiredto build networks and operating expense required to manage and maintain them. Theperformance reliability security and cost effectiveness of our products provide us witha distinct competitive advantage; all of which is well enshrined in the brand D-Linkwhich has emerged as a leading brand in the country with top of the mind recall.
We continued our leadership position in the WLAN category and also healthy marketshares in most of the other categories in which we operate. We also continued our dominacein Structured Cabling products with respectable growth in revenues. As per IDC we are theNo.1 player in the Ethernet Switches category in terms of number of port counts deployed.Our unified wireless networking solutions enables small and medium sized businesses tocreate highly mobile and highly productive work environment at a low total cost ofownership.
During the year we launched a range of new products in many promising categories. Ourstep into the Analog Security-CCTV market place was a major stepping stone which isexpected to garner good growth for us in the coming years. In developing these productswe took into account the feedback received from our customers to build best in classproducts and solutions to meet their needs. We continue to expand our understanding ofcustomers' demands and that enables us to design additional capabilities into ourproducts.
The performance of each of our product categories has been described in detail underOperational Review' in the Management Development and Analysis section of thisAnnual Report.
Committed to Innovation
We are committed to invest in R&D at a level that drives our innovation agendaenabling us to deliver highly differentiated products and outstanding value to ourcustomers.
Our subsidiary TeamF1 Networks specializes in developing high-performance networkingand security software products which help in future proofing the digital networkconnectivity and security roadmap for embedded devices. It is actively developing softwarefor new and innovative products for D-Link India D-Link Corporation Reliance JioInfocomm as well as other established players.
During the year we introduced the IoT (Internet of Things) range of products thatenable homes to be interconnected to information and smart enabled in an integratedservice environment to make Smart Home a reality. Our products like Smart Plug enables theuser to control devices and appliances from anywhere Audio Extractor allows streaming ofmusic from any smart phone or tablet on the network to any speaker or sound system in thevicinity and Wireless Sensors and Home Surveillance Cameras are all making waves in themarketplace.
We are aligned to the needs of the various segments that are uniquely positioned toimplement unified networking solutions that integrate capabilities in switches wirelessbroadband storage IP & CCTV surveillance cloud based network management andstructured cabling.
We will focus on bringing technology and products that deliver new value for ourcustomers in the areas where we see greater opportunities for growth.
Reaching Out To Our Customers
We ensure that our products and services are accessible throughout the country. We goto the market through multiple channels and our customer base ranges from largecorporations to SMBs and SOHOs to individual homes. Our distribution and service networkis fully geared and we invest much time and energy to ensure that they are equipped with athorough understanding of our products and their capabilities by imparting relevanttraining to them.
We lay great emphasis on service and we have 11 D-Link Direct Service Centers 45Partner Service Centers and 207 Courier Collection points across the country. D-Link Indiahas coverage in 140 locations with 263 Service Points across the nation.
Growing Market. Huge Opportunity.
We are fortunate to be operating in India the world's fastest growing major economywith a projected growth rate of 7.4% in 2018 and 7.8% in 2019. The outlook for medium termas well remains positive according to a recent IMF report.
The IT industry in which we operate contributes 7.7% to the country's GDP. Today it isfueling the growth of start-ups and this sector is attracting nearly 37% of the totalprivate equity and venture investments in the country.
Several initiatives being taken by the government like the laying down of the NationalOptical Fibre network the Digital India' and Smart City' initiatives andpenetrating broadband into tier II and tier III cities as well as rural India all pointtowards rapid growth in the size of the IT market. In fact according to Gartner spend onIT in India is expected to grow over 9% to reach US$ 87.1 billion in 2018. All thesealongwith the focus on cashless transactions e-commerce boom and Internet of Things wouldcreate tremendous opportunities for the networking segment.
We believe that our understanding of high performance networking technology and ourstrategy position us well to capitalize on the industry's growth.
Meeting customers needs with passion
We are excited to build on the momentum and to pursue opportunities that lie ahead bycontinuing to evolve with the aim of providing technology the way our customers want toconsume it. While we continue to invest in innovation and expand our market opportunitieswe are also maintaining our commitment to shareholder returns.
For over 31 years now D-Link India has earned the trust of the nation by buildingprogress with responsibility. We continue this legacy and our unrelenting focus oncustomers is a particular source of pride. To support our growth strategy we havefostered a culture that focuses on achieving the highest levels of performance. I aminspired by the passion that our employees bring to meet customer needs.
When I reflect and see the year gone by I am proud of the progress we have made bothin continuing the transformation and the new alignment to the structural tax reforms aswell as the new challenges in the economy and how we are empowering customers to transformdigitally.
I am grateful to our Board of Directors for their continued guidance and support.Looking ahead I am fully confident that we have the right strategy and the right talentto advance our leadership in the networking industry while delivering superior long termvalue to our shareholders.
|Thank you. |
|Tushar Sighat |
|Managing Director & CEO |