Dear Investor,
Something remarkable has happened since the inception of ITCONS.
The chart represents the number of employees with ITCONS each year. We have grown at a
CAGR of 50% since we founded our institution and have been one of the prime drivers in
creating employment in a new and emerging India. Today, we are one of the fastest growing
private sector employers in India with a headcount of 1600 employees and looking forward
to achieve a remarkable growth scale in next 3 years' time.
The previous year has been a year of significant strategic progress with its own set of
challenges. We have delivered a strong performance in majority of our businesses. Our IT
staffing and recruiting business continues to deliver excellent performance and this year
we have added two new sources of revenues and business growth in staffing & recruiting
business by means of general staffing and govt projects bidding with help of GEM. We
expect these new sources will not just add number the numbers of staffed employees but
also multiply the revenue numbers. In addition to this, we are also aiming to do couple of
acquisitions of mid to large size staffing/recruiting firm to give boost to our revenue
number/PAT and increase our staffed employee base across different Industry domain PAN
India basis.
India - A Growth Story
We live in exciting times where India is one of the fastest growing economies. India is
projected to grow at about 7.5% in the future which we expect to result in more people
joining the workforce. Last year, India moved 23 places to be ranked 77th in the World
Bank's report Ease of Doing Business owing to the robust economic reforms.
This provides us an opportunity, both in terms of skilling and placing the workforce to
create value for ourselves and the nation at large.
Business Services
Business services as a percentage of GDP today stands at 2.0% in India which is
significantly lower than BRIC nations where it stands at 6.0% or in developed economies
where it stands at above 11.0%. As economies mature and grow, the share of business
services grows at a faster pace than the rate of growth of the economy itself and should
become between 5% & 7% over the next few years.
Formalization of the Economy
The introduction of GST has set in motion the process of formalization and
consolidation in the sector. Apart from the incentive for organisations to choose the
services of tax-compliant staffing firms, which allow them to claim input tax credit,
customers are also driven by the need for superior services and a need to associate
themselves with brands that are ethical and compliant with all regulatory requirements.
There is therefore, potential to grow in the underpenetrated market for organized players
who offer predictability and standardization to their customers.
Solving New Age Problems
Business disruptions in terms of innovative ways of working are emerging each day and
we are transitioning from a traditional job to a gig economy where
workforce and services are availed just-in-time. This makes it imperative that we keep
identifying and providing critical talent in an efficient manner enabling staffing
companies to evolve and become strategic workforce solutions partners.
Digital Transformation
In a disruptive tech world, businesses are evolving to remain ahead of the curve by
leveraging technology effectively to improve employee outcomes, enhance customer
experience and improve profitability. This year, we are in process of full digitize to
improve productivity and efficiency. We are now transforming our core business by
optimising, digitising and automating processes. We are in process of deploying newer
technologies like digital attendance monitoring etc. to improve our efficiency while
providing enhanced user experience to our major stakeholders - employees and customers.
Our Structure
We operate in a decentralized manner yet in centralized manner to support our staffing
business by keeping a close watch on Capital allocation, Performance goal setting and
Leadership planning. During this year post IPO, we have strengthened our senior/ Middle
management leadership by hiring several new leaders. We believe now we now have sufficient
strong leadership team who will act as a key catalyst for ITCONS next phase of growth,
though our hunt for strong leadership folks is continuously on and will add them in line
to growth of business.
Highlights for the Year FY 2022-23
The financial highlights of the year are as follows: - Revenue grew 55% YoY to Rs.
2820.31 Lakh and EBITDA grew 46.83 % YoY to Rs 264.56 Lakh - EBITDA Margin stood at 9.31 %
PAT stood at Rs. 172.66 Lakh - PAT Margin stood at 6 % - Diluted EPS stood at Rs 5.23
- Cash flow from operations stood at Rs (79.76) Lakh in FY23 (up from Rs. 0.84 Lakh in
the previous year) Our general staffing business within the People Services segment
continues to deliver impressive performance. We have added about 700 associates during the
year thereby further strengthening our leadership position in the market with an overall
staffing headcount of over 1600+ associates.
Creating Value for the Stakeholders
As the centre of our business are our customers, we look to explore opportunities to
deliver more value to them each day and are in a constant pursuit of customer delight.
Adding 100+ employees every month, we have been instrumental in putting individuals to
work in our country. Apart from providing them with employment opportunities, we are
bringing them into the fold of a formalized economy which promises predictable income,
social security benefits, and health benefits among others. Our Shareholders have been
pivotal to our business and we are on a constant endeavour to create long term shareholder
value through prudent capital allocation that would deliver superior financial outcomes.
Journey Ahead
Since inception, we have built a diverse portfolio of service offerings that have gone
a long way to shape ITCONS in its current form. The economic, business and technological
disruptions are compelling organizations to evolve continuously. Going forward, we
envision ITCONS as multiple platforms enabling us to provide end-to-end integrated
services to our customers and to be present across the value chain. In the forthcoming
year we will align ourselves into three main platforms: Workforce Management and Tech
Services. Workforce Management would comprise of a diverse suite of offerings in the
employee lifecycle management space ranging from - training and recruitment to on-boarding
and off-boarding employees both in the general staffing and professional staffing
businesses. Operating Asset Management would provide a one stop shop for all assets - real
estate, industrials and telecom. Tech Services would comprise of business process
management, aftersales services and online-recruitment portal. Capital allocation
continues to be a key focus area for us. We have an established inorganic playbook of
successfully identifying and integrating value accretive acquisitions. We are entering
into a phase where we will allocate capital strategically to derive superior financial
outcomes for our company. Our focus on Balance Sheet Management has yielded tangible
results during the year. We believe in the short to medium term, we should be able to
generate higher amounts of operating cash from our business.
Creating a Better Tomorrow
We at ITCONS believe in creating a better world where everyone has access to
opportunities and has a right to have a better life. Through our Trust, Mahakal Maharaj
Bikaner Sewa Mandir, we are supporting free education of 300+ students in our DiViNiTi
Schools. This note will be incomplete without thanking our 100+ clients for the belief
entrusted in us, which has enabled the company to grow thus far. I am also thankful to the
dedication of our employees who drive the outcomes for our clients and have created a
solid foundation for our institution. As we navigate into a new year, we at ITCONS feel a
unified sense of purpose and pride in seeing the institution that we have built over the
last 16 years. I am thankful to all our shareholders who have steadfastly stood by us and
helped us scale this company. I look forward to interacting and meeting you at our annual
meet for shareholders.
Best Regards,
Gauravv Mittal
Chairman & Managing Director
ITCONS e-Solutions Ltd