SAAS TO KAAS.
Software as a Service to Knowledge as a Service
I am pleased to present our performance during the year under review.
Virinchi reported a 20% growth in revenue 28% increase in EBITDA and 78% growth inprofit after tax in 2018-19.
In the knowledge economy that we are living in today the competitive edge is derivedonly by creating incremental knowledge and using that knowledge to enhanced value to thecustomer. Virinchi operates in the domains of healthcare and fintech that are relevantwhether economies are buoyant or weak whether people are affluent or in need; there willalways be a demand for superior medical treatment and a need to discover and create newassets to leverage. We believe that Virinchi is attractively placed at an inflectionpoint where a paradigm shift is happening in the global economy in general and thefintech & healthcare domains in particular.
During the last few years mobile-based customer discovery engagement and fulfillmentcombined with unlimited storage broadband and computing power to moderate costs down toalmost nil. This has lead to creation of an ocean of useful data about every singleindividual on the planet. Never before in the history of mankind has such precisepersonalised temporal data been available for businesses to serve their customers. Thisdeluge of data has created an unprecedented market for data science to deliver immensevalue directly to the customer accessing him or her on the mobile.
Data science Virinchi & Healthcare
In the area of healthcare doctors have traditionally relied on over a dozen ofdiagnostic readings that were easily accessible. They would use these readings to arriveat conclusions before proceeding with the next round of treatment. As medical scienceimproved the number of relevant diagnostic parameters multiplied from ten to hundred orprobably even a thousand. A deluge of useful data is engaging care givers who earlier didnot possess the wherewithal to decipher the correlations.
The entry of data science has revolutionised this segment: machines are now able tocapture patient's medical reality at a cell level and machine learning can cross or matchthis data over a number of existing and evolving hypotheses to arrive at deeperconclusions which are specific to the patient. Besides in some cases this deeperpattern recognition capability is empowering doctors to pin-point the diagnosis andprescribe targeted personalised therapies supported by much-needed evidence.
Optimism in our heath care business
At Virinchi we are not just a standalone hospital company but a data science-drivenorganisation integrated to deliver healthcare to patients. We see this as a synergiccomplement feeding on each other: the Hospital business provides us with precious patientdata which can be then crunched by our data science team to derive disease cum treatmentpatterns and trends. The learning from these patterns can then be relayed to thehealthcare businesses even beyond our own captive entities to make treatment improvementsin real time.
We believe that this is how hospitals & healthcare companies of the future willemerge: enhancing clinical outcomes using historical patient data by using the tools ofmachine learning and data science in real time. Virinchi is probably one of first fewhealthcare companies in India to initiate the use of data analytics and machine learningas an integral part of caregiving. There is little doubt that the future of medicalscience world across will be completely driven by data science as future electronicmedical record safe-keepers cannot be just passive warehouses of records but need tobecome active knowledge factories producing precision therapies based on patientsimilarity patterns. I am pleased to report that Virinchi has already moved ahead in thisdirection.
Optimism in our fintech business
In the modern world if there is one thing in the fintech world more important than theneed to discover a customer it is the need to know how much to lend to the customer withpotentially zero delinquency based on future potential and complete past data.
In a world where accurate credit analysis is critical to the long-term health of banksfinancial institutions and other intermediaries there is a premium on the ability to lendright (to who and how much and when ) recover on time and engage in the next disbursementround. Virinchi comes with proven credentials in this area with its longstanding exposureto the US fintech space where it has processed no less than 25 million lending casesbuilding a large repository of knowledge to understand how credit behaviour changes basedon age income address marital status location profession race and even family size.The result is that the Company has developed a deep learning of multi-parametric dynamiccredit rating knowhow that can make accurate lending decisions enhancing the quality ofloan assets of lenders. This unique strength makes Virinchi the "first choice serviceprovider" to potential lenders in the US who wish to discover new customers andoffer various lending products as we provide credit assessment knowledge as aservice' than simple credit delivery software as a service'.
At Virinchi we believe that our healthcare and fintech businesses have great potentialfor growth. Our Company is braced to meet the challenges of a knowledge economy on thestrength of the underlying data science platform which can graduate the Company into aleader in the two segments in less than a decade from now.
Founder & Chairman Emeritus