INDIA IS THE HOTSPOT OF DIGITAL INNOVATION AND AT THE CUSP OF THE
FOURTH INDUSTRIAL REVOLUTION WITH THE NEW-AGE TECHNOLOGY GAINING IMMENSE MOMENTUM. CLOUD
COMPUTING IS THE NEW BUZZWORD OF THIS ERA AND WE ARE GEARED UP FOR THE NEW WAVE OF GROWTH.
Dear Shareholders,
It's a moment of great delight for me to communicate with you
about yet another year of enhanced growth. The year 2018-19 was marked by new sign-ups,
addition of new members to our reseller network and extension of our reach to newer
locations across the nation with enhanced product offerings for the end-users.
The influx of digitisation spreading across all the segments of
industry and community is leading to a strong opportunity for the technology distribution
space. With our diversified business model, impressive product portfolio and better
servicing reach to the end-users, we are well-poised to grow further in our space.
We continuously gear up to support our partners by identifying the
right solution for them at the right time.
COMPANY'S PERFORMANCE IN 2019
The year 2018-19 at the macro-economic level was a bit challenging
owing to tightness in the availability of credit and general slowdown in terms of overall
economic growth. Amidst this backdrop, we have reported a net sales of 4,51,483.37
Lakh as against 4,07,440.78 Lakh in 2017-18. EBITDA stood at 9,344.96 Lakh
as compared to 8,485.16 Lakh in the previous financial year. We have recorded a
PAT of 2,258.34 Lakh in 2018-19 as against 2,054.36 Lakh in 2017-18. We
have distributed products of leading global brands to over 600+ cities and towns across
the nation through a strong network of 12,000 resellers. During the year under review, we
signed two new brands – Altec Lansing and CBC Ganz and around 15 Cloud brands.
EVOLVING ON THE GROWTH PATH
Today, technology is evolving at a faster pace than we have ever
witnessed. Humans have embraced this change of the digital age. Our country is undergoing
a digital transformation in a big way. Whether it is big metropolitan cities or small
towns, a well-connected India has the potential to usher in economic and welfare
opportunities for its citizens. With the same Government being elected for its second
term, the push for digitisation is going to strengthen further.
The massive reach of mobile connectivity and the deeper penetration of
internet in the smaller cities & towns provide a big opportunity for the mobile and
connectivity devices. The Government's strong steps towards ‘Digital India'
will have huge potential in driving demand for PCs and computer peripherals segment. The
need for physical safety and security devices such as CCTV cameras is ever-increasing from
the offices, malls, hospitals, schools and even individual homes. This has marked the
beginning of an irreversible journey from small to being large and larger.
EVOLVING WITH THE CUSTOMERS
The ever-evolving technology will continue to drive consumer
aspirations. Customers' standards for modern engagement are a far cry from the
transactional, one-size-fits-all experiences that were once de facto. Tailored,
contextualised engagement across multiple touchpoints is the benchmark. We are now
entering an era where a Company's ability to provide innovative experiences is as
important as the quality of its products. Innovation is accelerating across the
industries, thanks to emerging technologies like Artificial Intelligence (AI) and the
Internet of Things (IoT). With many consumers and business buyers willing to pay a premium
for differentiated, first-to-market products and services that enhance their experiences,
we at Compuage remain relevant with the evolving customer expectations and demands.
We see a huge potential for the IT products and services in the years
to come. With the digitisation wave, the technology will become an integral part of each
and every household, irrespective of whether it is in a city or a village. Like smart
cities, India will soon have smart villages in the years to come. As a Company, we are
aligned with all the leading brands across our areas of offerings and are well-positioned
to reach out deeper to the countrywide clientele and leverage the advantage.
We always keep checking the changing market dynamics which provides us
with opportunities to take a refreshed look at our offerings and revive the basket as per
the need.
STRATEGIC PRIORITIES AND OUTLOOK
For us, the passion for growth is contagious. We strongly believe that
if all our associates on this journey grow, then we are really set on the right path. As
an industry player, we remain razor focused on the key areas that have potential strong
growth in the future. Some of our key strategic priorities for the near term include:
Explore opportunities in the cloud-based products – being relevant to the changes
Continue to work as a true value-added distributor by working closely with our channel
partners and resellers Guide partners to the newer venues of growth Grow inorganically in
the existing brands by including new product lines Enhance reach across the nations by
adding more resellers and penetrating into newer geographies within the interiors of India
Build the hardware service division to 100-owned service centres over the next three years
With this clarity and conviction, I am confident that your Company will climb new ladders
on the growth path and deliver maximum value to our esteemed stakeholders. I hereby take
this opportunity to thank all our Shareholders, Board Members, Employees, Partners and
Resellers for being a part of this journey of growth. We look forward to your continued
support going ahead.
With warm regards,
Atul H. Mehta
Chairman & Managing Director