Fellow Shareholders,
We have concluded another challenging yet exciting year in 2021, which started with the
most challenging peak of this pandemic, trembling the foundation of the global healthcare
infrastructure. Prioritising our employees' wellbeing and their families during these
unprecedented times became a strategic priority for us at R Systems. We have implemented
several strategic initiatives to help us achieve this goal. These initiatives included
organizing vaccination camps in our offices to support our employees and their families to
get vaccinated as per the guidelines, urgent health care support to our employees and
their families and conducting several health seminars to raise awareness about COVID-19.
We are fortunate that the Omicron variant has turned out to be less severe than previous
variants. The efficient rollout of vaccines and strengthened global health care systems
have helped gain considerable control over the situation. We now seem to be moving towards
a renewed sense of normalcy.
This pandemic has globally transformed the dynamics of business operations. It has
exposed a dependency on physical infrastructure as a core weakness in business models
across verticals and emphasized opportunities to digitalise business operations through
the adoption and integration of digital technologies. At R Systems, we are well equipped
to understand these limitations and offer systemic and strategic services and solutions to
our clients.
Every business faces different sets of challenges. These may include constraints in
scaling sales operations, inefficient enterprise collaboration, or the inability to
receive actionable business insights on time. This range of issues means that a successful
digital transformation solution needs to handle challenges specific to a business segment,
while also considering the industry in which it operates. R Systems' services portfolio
brings together our technical expertise from design to platform and mobile to cloud to
intelligent Automation. Our domain experts speak the language of "business" as
fluently as that of "technology". This proficiency effectively enables us to
translate specific business goals into coherent technology solutions that help our
customers overcome their business challenges.
Furthermore, we find that businesses usually possess vast volumes of enterprise data,
the size of which grows exponentially. Generally, most of these Data Sets are not
streamlined and as a consequence are not monetised to provide powerful business insights.
Our AI, big data,
ML, and data analytics services and solutions enable businesses to generate actionable
business insights, which have a significant positive impact on their business outcomes.
We ended the year at '1,155.6 Cr. (US$156.5 mn.) revenue, representing +31% growth year
on year, surpassing the critical milestone of US$150 mn. in annual revenues. We attribute
this robust performance to an increased demand for our product engineering and digital
offerings, a deepened relationship with existing customers, and a decent flow of sizable
new deals. We are currently serving customers with contracts worth more than a million
dollars, including six accounts contributing more than three million dollars in revenues
on a run- rate basis.
Furthermore, we improved our EBITDA margins from 13.3% in FY 2020 to 14% in FY 2021
amid the attrition challenges in the industry. We also strengthened our human capital by
onboarding 900+ associates to support the strong sales funnel, especially for our digital
and technology services and solutions.
We also have incentivised key talent sets to offset attrition challenges in the
industry to pursue our growth journey seamlessly.
Our Net Profit after taxes was '141.4 Cr. (US$19.2 mn.) during FY 2021, which amounted
to a year on year growth of 73%. The resultant EPS was '11.8 against '6.8 in FY 2020.
We rewarded our shareholders with dividend of '68 Cr. and a buyback of '37 Cr. last
year for their ongoing support. We continue to have a strong balance sheet with a net
worth of '460 Cr. including a cash and bank balance of '277 Cr. to support liquidity and
business growth.
This strong performance has given us momentum to unleash a next-gen digital evolution.
We have partnered with leading ISVs, enterprises and early-stage companies across
industries to achieve their digital transformation goals. Our collaborations with leading
technology giants like Microsoft, Salesforce, AWS, Automation Anywhere and Dell Boomi,
along with smaller niche players, ensure that we are well-positioned to offer cutting edge
solutions to solve the most pressing business and technology issues.
As the pandemic continues to ease, we have commenced hybridworking in our overseas
offices and planned to start work-from-office or hybrid-working at our India centres, in
line with government guidelines. We are also expanding our Greater Noida SEZ delivery
centre by 48,000 square feet to facilitate work-from- office along with catering to our
growth aspirations.
While we advance ourselves and prepare R Systems for the future, we are equally focused
on driving value for the communities that surround us. We believe that not only can
businesses co-exist with society, but they can also uplift each other in times of need. As
a purpose-driven organisation, we have continued to contribute towards promoting
initiatives in the areas of education, welfare, and sports. By supporting the next
generation in education and sports, we hope that they will be able to handle new
challenges and build a happy and agile society.
The world is now facing another geopolitical challenge in Eastern Europe. I would also
like to take this opportunity to extend my sympathy and support to millions of innocent
people who are suffering due to this conflict. I am hopeful that the relevant political
leaders can resolve this conflict in a peaceful and diplomatic manner.
In closing, I am thankful to all of our shareholders, business partners, customers,
employees, and all the government agencies for their much- needed support and faith in R
Systems.
Sincere Regards,
Dr. Satinder Singh Rekhi
Managing Director and CEO