E2E Networks Ltd

Dear Shareholder(s),

Last few years have been rough for everyone due to the pandemic. As life is coming back to normal it opens up new opportunities for growth of your company. The pandemic era changes in the way we do business with most infrastructure on the cloud continues to hold good.

The abilities gained by the SME segment during the pandemic era to scale up on demand and scale down as demand subsides has led to their cloud transformation in the truest sense.

Your company continues to play a critical role in this transformation by providing accelerated Computing on the Cloud which supports modern machine learning/deep learning driven applications and other critical workloads at an affordable price. Our cloud infrastructure is used for solutions in the fields ranging from Data Science, NLP, Computer Vision / Image Processing, Observability, Consumer Tech, and much more. E2E provides end to end simplified cloud computing services so that developers and data scientists can spend more time delivering solutions than on management of multiple layers of compute infrastructure from the ground up and SME entrepreneurs can scale their businesses faster at a reasonable cost.

FINANCIAL PERFORMANCE

During FY 2022, your Company has made dramatic improvements across every key operational and financial metrics. We believe we are now well-positioned to achieve durable revenue growth with significant free cash flow generation in the long term.

In FY 2022, your company has crossed INR 50 crores benchmark in revenues, experiencing strong growth of over 40%. Even more satisfying was the fact that this growth has come with an operating margin (EBITDA) of 44% and PAT margin of 12.5%. This growth is the source of our energy and vibrancy. We achieved this through continuous investments in development of our Cloud Platform, targeting product market fit for our customer needs on our Cloud platform, maintaining our existing customer base along with increasing our customer base.

THE ROAD AHEAD

We are in the midst of a multi-year technology upgrade and cloud adoption cycle that provides strong, structural growth drivers for the next few years. We are very excited about the increasing reliance on the accelerated computing workloads on the cloud and are working on deepening our partner ecosystem and customer relationships, our goal is to gain more market share in the SME and data science segments to help power the growth in the medium term.

We believe in earning the trust of all our stakeholders, and the communities we operate in and that entails delivering value for our customers and our team members. The interests of our shareholders are automatically served when the customers and our team members are happy.

We are grateful for your continued support and the trust you have placed in the company.

Chairman & Managing Director.