Mr Sanjeev V. Manrakhan
Work in progress!
It has indeed been a very challenging year in all respects. While growth has been present in most of the areas under review, it has also been a year where, through the impulsion of the Chairman and Board of Directors, the management team has been encouraged to review who we are, what we do, how we create value and profits, but, most importantly — where we are and where do we see ourselves in 2018.
On that count, we believe that with the dedication and hardthinking of our Senior Management team and colleague managers as well as external consultants, we have been able to present our Strategic Plan 2015-2018 that is already under implementation, with results expected as early as the FYE 2016.
For the year under review, the Group achieved significant growth over last year, despite suffering forex losses due to the significant depreciation of the rupee vis-a-vis the dollar, facing challenges in geographical expansion, and encountering an increasingly competitive environment in the smart devices market, amongst others. Gross profit grew by 26% over FY2014 to reach Rs 85 million in FY2015 while group revenue reached Rs 339 million in FY2015, up 31% from last financial year, driven mainly by a robust performance in data centre services — a strategic area which is expected to receive a significant boost from our geographical expansion plans going forward.
Although considerable resources were allocated to the review of operations, strategy and future expansion we have been able to reach most of our objectives. However our targeted 10% PAT as a percentage of revenue under-performed at 5%. The MUR 16Mn shortfall is mainly due to:
• Losses incurred in our ERP/CRM businesses representing 45% of the shortfall
• A number of write-downs in our trading business, representing around 10% of the shortfall
• Currency loss when the US$ appreciated from MUR 30 to 36 in Q1:2015
Momentum is the name of the game and we need to ensure that the strong momentum continues unabated. In this context, regional expansion and investment in emerging technologies become critical as traditional markets come close to saturation levels. In the face of intensifying competition, profit growth will come from better procurement, best practices and strict management of overheads.
While competition is critical to our growth and efficiency, the intensity of competition varies within different markets as do products and services offerings. However, in view of our geographic expansion from Southern to Northern Africa, we have started reaching out to some of our direct and indirect competitors – specially those with specialised skill sets – to complement our service offerings in different geographies. While we compete in some geographies, we will cooperate in others to the ultimate benefit of the clients and local economies in terms of technology transfer and knowledge sharing.
Our outlook on the future is contained in the following sections in more details and has been defined based on our strategic orientation which will re-shape the different areas of our organisation. A reminder of these include our five Strategic themes which are as follows:
• Driving Growth through our African Expansion and investment in Emerging Technologies
• Engaging Customers towards becoming an End-to-End Provider, with cost-effective solutions and exceeding customer expectations
• Empowering our People through Competitive Remuneration and Human Capital Development,
• Enhancing Partnerships by increasing level of business and achieving highest level of Certifications with our business partners
• Embedding Best Practices by implementing relevant Quality Assurance frameworks and ensuring active IP Harvesting in all our operations.