Dear Shareholders,
The global pandemic caused by COVID-19 has resulted in 'the new normal', which has led
to a disruption in lives, livelihoods, and businesses, worldwide. Despite the challenges
posed by the pandemic, I am pleased to say that the management, through active guidance
and support from the Board, was able to navigate through the uncertainty adeptly. Today,
as a standalone company, we are a zero-debt Company and as a Group we stand strong with a
healthy balance sheet, giving us considerable scope to plan, invest and capitalise in
various exciting avenues, despite the challenging environment.
I am humbled by the way that the people at Decipher Group have come forward and risen
to meet every challenge and opportunity during these times. On behalf of the Board, I
thank them for taking the company to new heights during the last year. Their determination
and passion have not only ensured that our progress was steady and un-interrupted but has
also cemented our values of commitment to adapt to challenges, especially at a time when
our clients needed us the most.
The Journey
The 35 years of the Company have been a roller coaster as it has seen and withstood
several storms; Losses, failed expansions, declining revenues, negative cash flow, and a
damaged reputation. It was a tumultuous period for all stakeholders during which all had
expected the Company to reach the stage of being defunct. Despite the hardships the
Company had to face, the faith of its customers and shareholders and the struggle of the
erstwhile promoters kept it going and managed to steer the company through that period.
In the year 2017, upon completion of the open offer, wherein majority stake in the
company was acquired subsequent to requisite approvals from all Govt agencies, changes to
the management were made, and a fresh look was given to the strategic focus of the
business. It took us a while to get the know how of the things and in 2018 the company
decided to strategically restart its Information Technology business and extended into new
areas outside the core products of revenue management. This also brought us a chance for a
strategic acquisition to grow in these areas. A chance target was identified for growth
for the business, in close discussions with the board and the acquisition has yielded
great success.
Financial highlights FY21
The Company performed well in the financial year 2020-2021 and closed the year with
growth and profitability. The revenue for the year stood at Rs.55.56 Crores as against
Rs.23.99 Crores in FY20, which translates to a 100% growth. EBITDA margins ended at
Rs.4.10 Crores as against Rs.2.74 Crores in FY20. Profit after tax was at Rs.1.40 Crores
in FY21.
Shareholder's Dividend - On the path to Rewarding your patience
The Company's performance and cash position have consistently been improving since FY19
onwards. The Company today has a healthy balance sheet compared to the past. However,
despite the overall improvement in the performance and healthy balance sheets, your board
felt it was prudent to withhold the temptation to reward the shareholders for their
immense patience and support to the company over the years. With continued improvements,
we envisage a possibility of a healthy dividend in the near future.
Business update - FY22 Outlook
We are making good progress in the new areas, and I am also excited with prospective
targets for our acquisitions leading to a path towards a successful business as we
continue to strive to make investments in new areas and these investments will help us
identify the next set of products which will help us grow faster and also take our
products and solutions to various verticals. As the industry continues to focus on
enhanced efficiency and reduced capital expenditure, the prospects of Decipher continue to
be brighter than ever, indicating better performance ahead with the clarity of purpose and
mission of stability.
I take this opportunity to thank all the stakeholders once again for standing by the
Company. The Company remains committed to deliver enhanced value to all stakeholders and
feels confident to achieve results through our focus on core and growth areas.
With Warm regards,
Janakiram Ajjarapu, Director & Promoter