Your Company delivered another strong result in 2015-2016: revenues up (23%) toRs.2642 million; net profit after tax up (71%) to Rs.369 million and EBITDA up (30%) toRs.541 million. These results combined with a high cash conversion ratio of 122% enabledyour Board to recommend a dividend of Rs.20 per share. Combined with the interim dividendof Rs.4 per share this represents a payout ratio of 80% of Profits after taxes in ourthird year under the SQS Group umbrella. Revenues from other Group entities increased from3% to 12% year-on-year and we anticipate this trend continuing.
Banking remains our strongest market sector at 51% of revenues but we saw encouraginggrowth in cards and payments now 34% of revenues. By geography Europe at 51% ofrevenues remains our strongest territory. The Middle East exceeded expectations.
At the year-end we served 84 active clients with the numbers of $1million revenueclients and $3-$5 million revenue clients rising. Our top ten clients account for 65% ofsales down from 71% in the previous fiscal year and the value of repeat business droppedfrom 91% to 82% as new clients and new projects emerged. We value our relationships withall our clients new and old large and small and thank them for their support andconfidence in our staff our services and our delivery. We now employ 1076 staff andanticipate that number growing as we serve additional clients and larger projects. Anadditional 250-seat facility at our Prince Info City HQ in Chennai will be operational inJuly 2016
The Board pays tribute to the hard work energy enthusiasm and above all the clientcommitment of our staff which lies behind our 2015-2016 results.
Shareholders are aware from our postal ballot in March 2016 of changes to the Board.Dr. Martin Mller who led the executive leadership team from December 2013 to March2016 resigned as Managing Director & CEO to return to Germany with his family wherehe has taken up a new CEO position. We thank him for his significant contribution to thesuccessful integration of Thinksoft into SQS and wish him well in the future. He leavesbehind a strong management team from which we have made two new Board appointments.
Ms. Aarti Arvind who takes over as MD and CEO and our CFO Mr. Vaidyanathan becameExecutive Director on April 1 2016. Both were instrumental in our successful integrationand success in the last three years. Ms. Aarti Arvind has been with the Company since 2004and was previously Executive Vice President in Thinksoft handling HR CommercialManagement and Delivery Process. With her detailed knowledge of our industry businessclients and staff she is well positioned to lead our Company through its next developmentphase. Mr. Vaidyanathan has over 39 years of experience in finance accounting corporateplanning and administration. He joined the Company in 2005 and has proved an exemplary CFOand compliance leader for all shareholders past and present.
Mr. Gireendra Kasmalkar resigned as a non-executive director at the financial year endand also as Managing Director and CEO of SQS Pune. We thank him for his support andcontribution as a non-executive director and wish him well in his new ventures.
On April 28 Mr. Reji Cherian was appointed as an additional (non-executive) directorsubject to your approval at the Annual General Meeting. He has over 25 yearsexperience in the IT industry especially in the transportation and telecoms sectors fromprevious senior roles with Siemens Deutsche Telecom and Cap Gemini. He joined SQS as headof India in January this year.
I would personally wish to thank all my past and present executive non-executive andindependent colleagues on your Board for their hard and often unseen work unstintingcommitment to your Company and contribution to the effectiveness of your Board.
As a Board we sincerely thank our clients our staff our advisors and of course youour valued shareholders for your support. It is a tough time to be macro-economicforecaster or geo-political analyst but as a Company we shall continue on our growth pathas a specialist and independent quality assurance Company with confidence in what we candeliver for our clients and their ever more complex and inter-dependent businessprocesses.
Chairman of the Board