At the end of what has been a defining year for Alletec, I'm honoured to present our
annual performance report for FY'24. The year has been defining in more than one ways. The
revenue went well past the INR 100 Cr. mark and we saw some transformation in our business
pattern as a result of strengthening cloud business. Revenues grew QoQ for each of the
quarters, and so did the margins. While one cannot claim these trends to be perpetual in
nature, they are nevertheless an indication of the growing robustness of the business.
Last year witnessed the imagination of individuals and corporates being put on fire
with easy accessibility to unimaginably powerful Large Language Models like GPT4 and BERT.
Ironically, this has resulted in both, excitement and fear. Excitement about the potential
of what technology solutions can provide, and fear of what 'missing-out' could potentially
result in. The dramatic impact of these developments has resulted in acceleration of the
digital transformation momentum for businesses. We have consequently been experiencing a
distinct shift in our customer conversations.
The Data & AI initiatives are frequently becoming part of our very first
conversation, as against the post-go-live (of ERP : CRM) conversations a couple of years
ago. In Alletec, customers see a partner who can hand-hold them through the entire digital
transformation journey, and get them ready for AI Transformation.
Having a world-class ERP system deployed alongside the customer engagement systems for
sales, customer service, field service and marketing; having business intelligence
dashboards for data visualization; customer & vendor facing portals; point
applications for quick data capture, and all this with the scalability and security
provided by cloud infrastructure are quickly becoming table stakes. Businesses need little
convincing, if any, for the adoption of these solutions. The conversations quickly shift
to - what next? This is where Data & AI comes in. The theme of this year's report, 'Getting
Businesses Ready for AI Transformation' captures the essence of our vision and the
strategic direction we are committed to pursuing in the coming times.
Businesses looking to leverage AI for transformation must have in place the foundation
of transactional and customer engagement systems. For years Alletec has been at the
forefront of providing these digital transformation solutions with Microsoft Business
Applications, including Dynamics 365, Power Platform, and Azure. Our expertise spans
diverse industries, across geographies, and customer segments.
Business performance
Alletec grew its revenue by ~32% YoY, and the EBITDA growth YoY was ~70%.
While both the India and International businesses stayed robust, the increase in EBITDA is
a reflection of the increasing international customer engagements. The year saw us add ~50
new customers, ~20 of which are international customers. Most importantly, the year
saw us beginning to win customers in Americas in the face of competition not just from
other local Microsoft partners, but also from competing non-Microsoft solution providers.
Alletec sustained sales and pre-sales engagements some of which prolonged for several
months. This is the beginning of our journey of being seen as a local company.
Durable competitive advantage
Warren Buffet once said - The key to investing is not assessing how much an industry is
going to affect society, or how much it will grow, but rather determining the competitive
advantage of any given company and, above all, the durability of that advantage.
Modern : Reliable : Affordable - are the pillars that will secure durable competitive
advantage for Alletec. By steadfastly growing the organization on these three pillars we
will find ourselves heads and shoulders above the competition. Our customers increasingly
expect this from us.
What's next
Alletec will continue to progress on its mission of 'enabling enterprises do more with
digital transformation'. While the interest and demand for leveraging Data & AI for
business advantage will most certainly continue to strengthen, a vast majority of
businesses still need to put in place the foundation of transactional and customer
experience systems.
The gradual increase in our Data & AI engagements underscores our commitment to
getting our customers ready for a future where data-driven insights fuel strategic
decisions, automation drives operational excellence, and personalized experiences redefine
customer engagements. Alletec is committed to being the catalyst for this transformation.
While maintaining our leadership position in India, Alletec will continue to push
international business growth. Our experience of over 2 decades of having worked with over
a thousand customers from 30+ countries, our investments into new products and
technologies, our business model, and our value system will keep strengthening our
position of being Modern : Reliable : Affordable.
The dedication and team effort of all members of Alletec, the trust of our customers,
the collaboration of our partners, and the unwavering support of our shareholders has
been, and will always be at the foundation of what Alletec accomplishes. As we continue
our journey to scaleup, we seek your continued guidance, encouragement and support.
-Warm Regards
Dr. Ajay Mian