Dear Shareholders,
Trust you and your loved ones are doing good.
At the outset, I want to congratulate each of you for being part of a
stupendous financial year 2023. It was a year of several milestones and transformations as
your company:
• Crossed the revenue milestone of $200 million (at Rs. 1,647.58
crores)
• Forayed into the Digital Engineering services space in pursuit
of becoming an AI & IP-led digital engineering and digital assurance services provider
with the acquisition of Apaara Digital (RoundSqr) last year.
• Renewed our vision of 'Together, we build a better future
through technology- led transformation' and set a mission to become a $1B company by 2028.
• Unveiled a new brand identity reflecting its renewed vision to
be a trusted digital transformation partner for its clients including Fortune 500 and
Global 2000 companies.
I take this opportunity to sincerely thank our employees for their
support, the board of directors for their guidance, and all our clients and shareholders
for their continued trust in us.
To remain nimble and succeed in this environment, your company has
expanded into emerging Digital Engineering services, like AI/ML, Blockchain, Intelligent
Automation, Product Engineering, Data Engineering, and more with the acquisition of Aparaa
Digital (RoundSqr).
In 2020, when we redrew our strategy to focus on other growing
verticals like Med-tech, Healthcare, Retail, and BFSI that have been paying the returns
for us. Travel & Hospitality has bounced back and now we are witnessing great revenues
from all the above verticals. We have built capabilities in Energy & Utilities and are
serving global enterprises in the USA and the UK. The sector is expected to grow by 12% in
2023 as per Nasscom. Additionally, in FY2023, we won 43 new logos including Fortune 500
companies.
Our focused approach to upsell and cross-sell in existing key accounts
helped us grow 40% to 60% in a few accounts. We converted 4 clients into $10 Mn+ accounts,
contributing to the 32.7% overall growth in revenue this year.
Our renewed analyst relations strategy with a focus on digital
assurance, digital engineering services, IP, and industry verticals garnered great
recognition and strengthened our position as the company laying a long-term roadmap to
fuel growth. A few of the mentions by leading analysts are:
• Global analyst firm recognized Cigniti in the Execution Zone for
Intelligent Automation Services and RPA Mid-Tier Service Providers, Intelligent Automation
Services: BFS, Retail, and Manufacturing categories in Intelligent automation for H1 2023.
• ISG recognized Cigniti as Contender in Client Development,
Manufacturing Supply Chain Digital Transformation, MedTech Digital Transformation, and
Pharmacovigilance and Regulatory Affairs quadrants for the ISG Provider Lens™ for
Life Sciences Digital Services.
• ISG recognized Cigniti as a Leader in Continuous Testing in the
ISG Provider Lens™ report for Next- Gen Application Development & Maintenance
Services, the US 2022.
• Gartner recognized Cigniti as a Sample Vendor for API Testing
Services in the 2022 Gartner? Hype Cycle™ for Managed IT Services, 2022, and for API
Testing Services in the 2022 Gartner? Hype Cycle™ for APIs, 2022.
We continued to invest in our IP by augmenting BlueSwan™
(Cigniti's next-gen Digital Assurance platform) with the launch of iNSta™, an
AI-powered low-code/no-code test automation platform. Cigniti's ZastraTM, an
active learning-enabled Computer Vision-based annotation platform, enables AI-led digital
outcomes of credible, measurable impact for clients.
Awards & Recognitions
Throughout 2022-23, your company has received several prestigious
awards, including the Prestigious Brands of India 2022 Award for IT Services by BARC Asia,
recognized as Dallas Business Journal's 50 Fastest-growing Middle Market Companies in
North Texas for 2022, won 'Company of the Year' in the IT services category for Digital
Assurance & Digital Engineering services at Outlook Business Spotlight's Business Icon
Awards 2022. Cigniti has also won the "Best IoT Healthcare Platform" in the 2023
MedTech Breakthrough Awards Program. These accolades showcase the dedication of over 4200
Cignitians globally and your unwavering commitment to delivering exceptional service to
clients.
DE&I
Your company is committed to creating an equitable and gender-neutral
workplace and has implemented several initiatives to promote diversity and inclusion such
as the DE&I council, which fosters a welcoming environment for all employees and
customers, as well as the Women in Tech roundtable and herDIGITALstory™, both of
which aim to promote gender diversity and inclusion. The Economic Times recognized Cigniti
as the Best Organization for Women. These efforts reflect your company's values and
vision.
Financial updates
During FY2023, your company delivered good results by reporting record
revenues of Rs. 1,647.58 crores with an EBITDA of 14.4%. The revenue growth stood at
32.7%, backed by the strong demand for Digital Assurance and Digital Engineering services,
while the rising need for Digital Transformation enhanced the momentum of our business. We
have a strong balance including cash and cash equivalents to support liquidity and
business growth along with rewarding shareholders for their continued support. Your
company's performance in the past fiscal enabled the Board to recommend a dividend of Rs.
3 and an additional special dividend of Rs. 2.50 on the company's successful completion of
25 years.
CSR
We continued to focus on Education, Healthcare, and Sustainability. In
the year FY2023, we improved access, inclusion, and infrastructure in 9 schools, provided
digital platforms for science and technology education, supported 100 young women from
rural backgrounds through upskilling and job placement programs, supported medical
equipment for a gynecology unit at MNJ cancer hospital in Hyderabad, and promoted green
initiatives through 200+ saplings plantation. Cigniti employees actively participated in
teaching and mentoring programs, continuing our commitment to giving back to society.
Outlook
Despite macroeconomic turbulence, Gartner predicts a 5.5% increase in
global IT spending to $4.6 trillion in 2023 and it's expected to be driven by 9.1% growth
in software and IT services segments. Many reports suggest the IT sector is driven by
smaller ($5Mn to $20Mn) deal wins that work in our favor as we are best positioned for
such deals due to our offerings, size, agility, and high customer intimacy.
We are reinventing ourselves and have expanded our horizons into
Digital Engineering services with more capabilities to help clients achieve market
leadership in the digital world. In FY2024, we are emphasizing proactive Quality
Engineering, Data Engineering, Data & Insights, and Digital Engineering Services. We
remain committed to delivering exceptional value to our stakeholders and strive to be the
partner of choice for digital transformation initiatives. The recent strategic appointment
of Dr. Srinivas Kandula, ex-Chairman and CEO of Capgemini India as its Executive Director
on the Board will help Cigniti accelerate its journey towards becoming a $1 billion
quality-first software and Digital Engineering services company. His appointment brings a
wealth of experience that will help to propel the company further into the digital orbit.
Finally, I express my gratitude to the committed 4200+ Cignitians
globally for advancing our values. On behalf of Cigniti's Board of Directors, I extend
sincere appreciation to our clients, technology partners, shareholders, governmental
organizations, and regulatory bodies for their unwavering support and guidance.
Yours Truly,
C V Subramanyam, Chairman & Managing Director