Mr. Kamal K Singh, Chairman & Managing Director of Rolta India Limited at the Annual General Meeting on November 24, 2010
Ladies and Gentlemen,
I have great pleasure in extending you all a warm welcome to the Nineteenth Annual General Meeting of your Company.
The Financial Results of the Company for the year 2009-10 have been with you for sometime and, with your permission, I take them as read.
The fiscal year under review was a very crucial year witnessing the re-emergence of the economies across the globe post a global slowdown. Although the situation is more reassuring than it was a year ago, uncertainty about the shape and pace of global recovery still persists. Though global output increased by over 5% in Q1 of 2010, still the global economy has hit asoft patch thereafter due to concerns stemming from the sovereign debt situation in the euro area.
The Indian economy has registered a stable growth of 7.4% in FY 2009-10 as against growth of 6.7% in the previous year driven by robust performance of the manufacturing sector on the back of government and consumer spending. The recovery set in the earlier year is consolidating in the current year with economy registering a growth of 8.8% in Q1 of 2010-11. Exports have grown steadily during the first half of 2010-11, showing an increase of 27.6% over the corresponding period of last year. Taking into account the good performance of the agriculture sector and a range of indicators of industrial production and service sector activity amidst the prevailing global macroeconomic scenario, the Mid Term review of macroeconomic and monetary review of Reserve Bank of India has projected the real GDP growth for 2010-11 at 8.5%.
The Indian IT/ITES Industry continues to show buoyancy and the Indian software and services exports including ITeS-BPO are estimated at US$ 50 billion in year 2009-10 as compared to US $ 47.1 billion (Rs.2162 billion) in year 2008-09, a 5.5% growth in dollar terms and 8.7% in rupee terms. Though the IT-BPO sector is export driven, the domestic market is also significant. The revenue from the domestic market (IT Services and ITeS-BPO) is also estimated to have grown to US$ 14 billion in the year 2009-10 ascompared to US$ 12.8 billion in 2008-09, a growth of about 9% in dollar terms and 12% in rupee terms.
According to NASSCOM, the industry will witness a healthy growth in this year, led by growth in the core markets and supplemented by significant contributions from emerging markets. Growth drivers include a thrust on platform BPO,Analytics, Finance & Accounting, Remote Infrastructure Management, ADM and Cloud Services. The Indian IT-BPO Industry is expected to exceed US$ 70 billion in FY2010-11.
I am pleased to inform you that your Company has been able to grow its business across all segments, both in India and internationally. Your Company has been able to sustain its path breaking position in a competitive business environment by prudently leveraging its unique domain knowledge. A combination of your Company’s domain knowledge, IPRs and deep understanding of the needs of the customer for innovative solutions has empowered it to meet the most complex and demanding requirements of global market.
Today,Your Company has transformed its business- from being services-centric to one that is increasingly Rolta IP-centric.Your Company has been able to address much larger markets worldwide by launching innovative solutions that ingeniously blend the capabilities of our acquired and partner technologies, with our bank of exceptional IPRs. Your Company’s acquisitions of companies, business divisions or technologies-that are at the cutting edge and synergistic with the Rolta lines of businesses, have provided the Company additional impetus, in moving up the value chain. ROLTA owned IPR platforms like Geospatial Fusion and iPerspective and your Company’s robust BI solutions such as Rolta OneView have opened significant new markets.
Your Company achieved a creditable performance during the year 2009-10. The Company’s total consolidated revenue for the year 2009-10 was Rs.1, 532 crores representing a growth of 11.6%.
The Company’s net worth increased to Rs.1,609.12 crores as on June 30, 2010 from Rs. 1,441.56 crores in June 2009,reflecting the inherent strength of the Company. The book value per share as on June 30, 2010 is Rs. 99.82 as against Rs. 89.53 at the end of June 30 of last year signifying substantial enhancement in shareholder value.
At a time when Indian corporate sector is moving towards convergence with International Financial Reporting Standards (IFRS) norms by 2011, your Company in line with its avowed practice of voluntarily adopting best international regulatory practices and high standards of corporate governance has published its consolidated accounts for 2009-10, drawn under (IFRS) as audited by Grant Thornton.
During the year, your Company further repurchased Foreign Currency Convertible Bonds (FCCBs) amounting to US$ 15.0 Million at a discount of 15.25% which resulted in a gain of US$ 2.80 million (approx. Rs.13 crores). The aggregate principal value of bond outstanding after this repurchase is US$ 96.69 million.
Your Directors have recommended a higher dividend of Rs.3.25 per share for the year 2009-10.
Your Company has always looked beyond immediate opportunities to create businesses with long-term prospects and relevance. Rolta has built a solid business that reflects its established track record, empowered people, domain knowledge,world class infrastructure, enduring partnerships, exceptional IPRs and healthy financials. Your Company’s capabilities,today, stand expanded significantly and Rolta is poised to serve markets much larger than ever before.
From the beginning, we have understood, accepted and implemented that ‘change is the only constant thing’. Through the intelligent extension of expertise and knowledge acquired in one business, we have successfully launched new businesses. We have remained relevant by anticipating market needs, embracing change and ensuring that our businesses are not ‘me-too’ in character.
I believe that your Company will continue to grow significantly thanks to its very strategic positioning in specialized markets like Defense, Security and Infrastructure that are expected to remain strong for many years to come. Your Company’s empowered people, its drive, innovation, domain knowledge, established track record, world-class infrastructure and sound financial health enable it to remain resilient and to compete and excel consistently. I am confident that your Company will continue to prosper by consciously building upon its existing strengths and providing better value proposition to customers globally.
I express my sincere appreciation to my colleagues on the Board, the Management Team and Roltaites at all levels for their invaluable contribution in steering your Company towards greater heights of excellence. I also thank our Bankers, Business Partners and Customers for their support and co-operation.
Finally, I thank you shareholders for your consistent support and I look forward to your continued support in achieving our goal. I particularly thank all of you who have come personally to this meeting, sparing your precious time.
Kamal K Singh
Chairman & Managing Director