Dear Shareholders,
It is with immense pride and great pleasure that I present to you the
annual report of your company for the year ended 31st March 2024.
The past year has been challenging for the global economy impacted by
the Russia-Ukraine war and the Israel-Palestine conflict. Amidst the global uncertainties,
the Indian economy has remained surprisingly resilient. In India's evolving landscape, IT
and IT services has emerged as a powerful force driving the economic
growth and forging the path towards a brighter and more inclusive
future. India's growth story is characterized by a dynamic interplay of economic
expansion, changing consumer preferences and evolving aspirations. Growing affluence is
leading to new trends like rise in demand of premium products and brand consciousness. The
networking industry is well positioned to capitalize on the upcycle with investments
fueled by cloud, cyber security and emerging technologies like generative AI and 5G.
Smartlink Holdings Ltd. had a steady year and its Standalone Revenue
from Operations stood at INR 1,253.72 lakhs, a growth of 31% from over INR 954.49 lakhs in
the previous year. The Standalone Profit after Tax for the year was INR 320.44 lakhs
(previous year INR 1,774.08 lakhs). The Revenue from Operations on Consolidated basis
increased by 28% to INR 20,918.02 lakhs from INR 16,305.26 lakh in the previous year. On a
Consolidated basis, Profit After Tax for the year was INR 705.95 lakhs (previous year INR
1,923.94 lakhs). The Profit after Tax figures are not comparable as the previous year's
profit was bolstered by an exceptional income (sale of land) of INR 2,091.57 lakhs.
Smartlink Holdings Ltd. is a NBFC having investments in mutual funds,
bonds/deposits and other immovable and movable assets. It has two independent subsidiaries
viz. DIGISOL Systems Ltd., the networking products brand company and Synegra EMS Ltd., the
manufacturing company.
On February 9, 2024, the Board of Directors approved the Scheme of
Amalgamation of Synegra EMS Ltd. with Smartlink Holdings Ltd.
Post the proposed merger, Smartlink Holdings Ltd. will function as an
ODM manufacturer with its own R&D and supply branded products to DIGISOL and other
companies worldwide.
The merger will result in ease of raising funds, economies of scale,
greater integration, flexibility and market reach and in simplifying, streamlining and
improving the efficiency by reducing administrative costs and making optimum use of
resources.
India has emerged as a beacon of hope led by the government's vision of
‘Viksit Bharat'. This has been powered by remarkable progress in digital
infrastructure as well as the thrust in establishing the country as a manufacturing and
services hub in a globalizing world economy. The country offers exciting opportunities for
growth as it marches into the future with a young and dynamic demographic profile, rapid
urbanization, rising incomes, growing consumption, technological leadership and
accelerated digital adoption.
The IT networking industry is growing at a rapid rate and brands assume
great importance in this scenario. In a fiercely competitive market, the brand will hold
the key to our long-term success. Based on the quality and strengths of our world-class
products, we are able to offer fantastic user experience to the users in the home
networking, SOHO as well as Enterprise categories. Our brand building efforts include
aggressive marketing activities, loyalty programmes for our partners and delivering
quality training programmes that are in sync with the market demand. I am confident that
DIGISOL will assume its rightful place as one of the prominent brands in the Indian
networking industry.
I wish to put on record my sincere appreciation for the Government's
initiatives in promoting local manufacturing by offering production linked incentives as
well as mandating public sector companies to give preference to ‘Made in India'
products.
In conclusion, I would like to express my sincere gratitude to the
members of the Board for their continuous guidance and support. I would also like to thank
the government officials, partners, associates, customers, employees and our shareholders
for their valued cooperation, trust and support. We will strive to build a better tomorrow
for our stakeholders.
Thanking you,
Yours sincerely,
| K. R. Naik |
| Executive Chairman |