We deeply thank all our retail and institutional investors for their participation inour IPO. We take this opportunity to assure the investors of our commitment and dedicationtowards value creation. We have infused the net proceeds of the IPO for purchase of IThardware and network equipment towards our new development centres in Kolkata andHyderabad. We also have plans to service our working capital requirements and generalcorporate purposes.
To explain in brief what we are all about Xelpmoc is primarily a data-ledArtificial Intelligence and Machine Learning company. We are constantly leveraging ourknowledge and strong foundations in data science mathematics statistics and coresciences. We nurture a robust research and innovation ecosystem to address the emergingchallenges on the frontiers of data-led AI and ML for socio-economic development. Being acutting-edge technology company we foster innovation across all the spectrums. We possessthe ability to serve the masses particularly those who do not use technology suchas farmers and truck drivers.
HOW WE PERFORMED
Our total operating revenue stood at Rs 60.9 million compared to Rs 53.6 million inthe previous year growing by 13.6% during FY 2019 and reflecting good growth momentum.EBITDA was reported at Rs (49.8) million compared to Rs (35.1) million in the previousfiscal year of FY 2018. EBITDA margins improved from -188.09% in FY 2017 to -65.50% in FY2018 but declined to -81.82% in FY 2019. Improvement in EBITDA margins in FY 2018 was onaccount of an increase in revenue and recovery of other overheads.
In the last couple of years we have been building our capabilities and productportfolio to generate revenue in the following period and hence we incurred losses. Wealso added employees with higher experience and employee costs which also led to thedecline in EBITDA margins.
PARTNERING WITH CUSTOMERS
At Xelpmoc we are focused on building the next-generation of technology in ArtificialIntelligence and Machine Learning Space with a keen interest in Natural LanguageProcessing & Data Analytics. We help our customers simplify automate and transformtheir businesses.
Innovation has pervaded every corner of our business. We foster innovation across thespectrum of start-ups corporates and the government. All these three verticals present astrong play for us to serve those relying on new technology for their tech requirements.Ours is a differentiated tech services play with the ability to identify unique businessmodels and partner with entrepreneurs. We have an acute vision to partner with and supportstart-ups.
TURNING COMPLEX AROUND
Our credo is to find appropriate solutions to serve the next 5 billion world citizenswho do not use technology as much as they could have. And what differentiates us fromcompetition is our capability to turn complex around for each of our partners whethercorporates start-ups and government. We hope that our products and services will continueto play a key role in bridging the technology gap in India even while we continue toexecute our growth-oriented business plan and enhance the partner ecosystem.
BUILDING A CULTURE OF REDUNDANCY
Redundancy is a must-have to foster growth of any company. An attitude of redundancycreates the right balance to grow an organisation. When a new employee joins Xelpmoc thefirst lesson they get is that they will have only two roles to make the personreporting to redundant which means they should have no work once he joins; and two tohire and train good enough people to make them redundant.
It is this cycle of redundancy that makes people think of growth at every level in amore important way. If everyone is made redundant in the growth phase it leads to a chaingrowth reaction which is very important for the stable growth.
During the year we added employees with higher experience and capabilities and alsoinvested
MD & CEO