It has been yet another year of superlative performance by your Company. From exciting new acquisitions to winning new clients, from excellent financials to exceptional progress, this year has indeed been remarkable. It is my privilege to welcome to the 31st Annual General Meeting of 8K Miles.
Let me briefly discuss the economic backdrop for the year 2016-17. Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest and most important in the world. The U.S. economy represents about 20% of total global output, and is still larger than that of China. According to the IMF, the U.S. has the sixth highest per capita GDP (PPP), surpassed only by small countries such as Norway and Singapore. The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its output. The U.S. economy is dominated by services-oriented companies in areas such as technology, financial services, healthcare and retail.
India continued with its economic surge with 7.6% growth in GDP, making it the fastest growing major economy in the world for the second year in a row. The government''''s long-term initiatives like Make in India, Housing for All and Digital India have revived sentiments and confidence for consumers and investors alike. India is the most attractive investment destination in the world, according to a survey by global consultancy firm Ernst & Young (EY). Sectors projected to do well in the coming years include automotive, technology, life sciences and consumer products.
As far as the IT industry is concerned, data from NASSCOM indicates that IT-BPM industry (global) grew by 0.4% in CY 2015 to US$ 1.2 trillion. Of this, IT Services comprise US$ 650 billion. India''''s share in global sourcing market (IT Services) of US$ 97-99 billion stands at 67%. NASSCOM projects revenue of US$ 175-190 billion for India from IT services market with a focus on bimodal IT, gaining share in both traditional and digital markets, increased emphasis on value addition and innovation, gaining customer experience, building digital talent pool. The future of the industry is in Managed Services and for that to become reality, collapsible infrastructures such as Cloud Computing and low-cost affordable technologies will make it a key priority on enterprise customer''''s mind.
Cloud continues to dominate the overall IT spending. According to Gartner, the worldwide public Cloud services market is projected to grow to a total $204 billion at 16.5 percent in 2016, up from $175 billion in 2015. The highest growth will come from Cloud system infrastructure services (infrastructure as a service [laaS]), which is projected to grow 38.4 percent in 2016. Public Cloud services market in India is expected to grow by 37.5 percent to touch US$ 434 million. India''''s economy picked up in Q4 FY 2015, driving growth for the full fiscal year to accelerate to a six year high.
2015-16 has been an excellent year for your Company. The Company continued its fast paced progress with two new acquisitions. The Company continued its dominance of Life Sciences, Pharmaceuticals and Healthcare sectors. The strong IP in CloudEzRx™, CloudEzCare™, EzIAM™ and EHR Recon provide the Company with strong platform for growing its project revenues as well as its annuity revenues.
During the year, Total Revenues increased to Rs. 272.14 crores compared to Rs. 125.13 crores in the last fiscal year, an increase of 117%. EBIDTA for the year rose by 130% to Rs. 88.72 crores against Rs. 38.55 crores in the previous year. PAT for the year was Rs. 53.23 crores compared to Rs. 23.09 crores last year, a rise of 130%. EPS for the year was Rs. 36.34 per share compared to Rs. 18.35 per share in the previous year.
Your Company has deep domain expertise in Life Sciences, Pharmaceuticals and Healthcare sectors. It is helping the highly regulated customers rapidly move to Cloud with various Cloud solutions and services including Real World Analytics, Genomics Big Data projects and new IoT efforts. Large enterprise customers are starting to utilize public Cloud to move existing and brand new applications that require business agility, elasticity and scale at a fraction of the cost. This will require newer DevOps processes to be adopted by these organizations to keep up with demand and scaling requirements and face the rapidly shrinking innovation cycles. Your Company continues to work with enterprises to leverage Cloud for faster innovation, increase in productivity and decrease in costs, leading to a significant transformation and edge.
Our recent acquisition of NexAge Technologies, one of the principal regulatory compliance and technology solutions firms in the U.S. with more than 15 years of experience in computer systems validation, quality review, vendor audits, data analysis and migration, as well as process governance for the life science and pharmaceutical industry has brought significant experience in system validation mandated for regulated systems and working with GxP guidelines. This helps to provide services that help Pharmaceutical companies achieve gold standard in compliance, improve quality and bring in operations efficiencies across the entire product development lifecycle.
It is estimated that by 2018, more than 60% of all enterprises will have at least half of their infrastructure on Cloud-based platform.
Financial services is the sector we are focusing on as financial service providers move legacy systems to the Cloud for fast online growth. Functionalities including data warehousing and electronic business processing systems are poised to replace paper-based application systems. Some of the customers are even moving their entire retail banking platforms to the Cloud to reduce complexity and costs while improving agility making the banks much more responsive to changing customer demands. Another area is moving storage to the Cloud which cuts costs in half. Similar savings can be achieved by moving application testing and development to Cloud. Major Cloud providers such as Amazon Web Services (AWS) has scooped up significant business from financial services firms which have been early adopters of Cloud. Amazon Cloud is able to run credit risk simulations for its customers in 20 minutes, down from 23 hours before. Adopting a Cloud model will provide the banks, mortgage and insurance agencies with a platform that is secure, scalable and can handle mission-critical workloads while offering greater flexibility and performance. We see interesting potential and opportunities in financial services like:
1 Card and mobile payment processing -- Visa, MasterCard, and trusted 3rd parties
2 Marketing and Customer Relationship Management
3 Internet and mobile Channel banking
4. Customer Analytics and Big data workloads
5 Infrastructure as a Service (IaaS)
6 Wealth Management
7 Mortgage and Insurance Applications
As The Cloud Specialists, 8K Miles can take a leadership role for financial service providers by providing the digital transformation services and Cloud solutions in banking, insurance and mortgage industries.
As I look ahead, I am confident and convinced that your Company is poised for a phase of long-term growth and expansion. We have all the right building blocks in place in terms of experience and expertise, capacities and competencies, and people and partnerships to emerge as the leading Cloud Specialists in the world with our clear differentiators - Simplicity. Security. Scalability.
I thank you all for your sustained faith and trust in the 8K Miles journey, and assure you we shall continue to strive for yet higher trajectory of growth in the coming year.
Chairman & CEO