athena global technologies ltd Management discussions


AN OVERVIEW

Your Company is a global provider of Software Application Development, Digital Transformation and QA & testing and services to enterprises.

Our AI services encompass everything from tailored and real-time customer interactions to dedicated processes, followed by less to no errors, virtual predictive and diagnostic applications. We exploit blockchains Internet of Value to deliver a more sustainable and secure digital foundation for your business. Our data scientists facilitate frictionless and rapid call to actions to design models that can bring "art of the possible" solutioning to your business. We leverage IoT-based solutions and services to dramatically enhance your engagement with customers. With the help of data analytics and digital connectivity, we design actionable intelligence to fuel higher levels of efficiency, innovation and new business models. Right from robotic process automation to building chatbots, we offer a varied range of business process automation solutions powered by cognitive technologies. We build Chatbots and Voicebots that will help consumers find solutions irrespective of device, time, and location. Boost your business grade with our enhanced application development services. We help you build future-proof products with our powerful product engineering capabilities. We are the custodian of your production environment. We ensure frictionless business processing and will not let any bugs get through.

INDUSTRY OVERVIEW

Global GDP in FY 2023 was affected by the Russia-Ukraine war and resultant dislocations in supply chains, leading to surging food and energy inflation. Central banks raised interest rates sharply in response. As a result, the global Gdp is estimated to have grown at a more subdued 3.4% in 2022, versus 5.9% in the prior year.

Global technology spending on Enterprise software and IT services crossed the $2 trillion mark in 2022, growing 5.5% YoY IT services grew 3.5% YoY to $1,250 billion. This growth was led by accelerated cloud adoption, preference for external expertise due to severe talent scarcity, and expanding scope of digital transformation to cover more back-office operational areas. The global IT services industry continues to be a highly fragmented one, with even the largest provider having a mid-single digit market share.

ECONOMIC OVERVIEW

The Indian economy remained remarkably resilient to global challenges in F.Y 2022-23. This is evident by robust domestic demand and upbeat investment activity. Sectoral analysis reveals that growth was driven by robust construction activity aided by increased infrastructure investment both by the Central Government and State Governments, which paved the way for large-scale employment opportunities. Building on the gains of first half of the fiscal year, the second half continued to see a gradual upswing in demand and economic activity. While post-covid, private investment recovery is still at a nascent stage, there are early signals, which indicate that India is poised for a stronger investment upcycle in services sectors.

BUSINESS OUTLOOK

Global growth is projected to moderate from 3.4 percent in 2022 to 2.8 percent in 2023, weighed down by central banks raising interest rates to fight inflation, and Russias war in Ukraine. In major economies, the heightened risk of a recession - made worse by a banking crisis - has led to uncertainty in enterprise decision-making, affecting spending on capex and certain discretionary programs.

Despite this, spending on IT services has been resilient so far. Cloud migration programs are continuing apace, and clients continue to launch new G&T projects. The higher level of uncertainty in the business environment has made clients more receptive to proactive proposals around IT and business operating model transformations that can not only deliver significant efficiencies but also help them become more agile and resilient.

INDUSTRY STRUCTURE AND DEVELOPMENT:

IT SECTOR:

Global IT service providers are equipped to support Enterprises across various industries to overcome the current challenges, with a wide range of offerings in software development, digital transformation, IT business solutions and consulting, research and development, technology infrastructure and business process services.

The IT services industry is expected to accelerate and drive decisions in fiscal year 2024 based on investments made by clients in cost optimization, operational excellence, digital transformation, vendor consolidation, productivity improvement, customer experience programs, innovation in products and services, talent management, future of workplace and workforce, and environmental, social, and governance initiatives.

According to the Strategic Review 2023 published by NASSCOM ("NASSCOM Report"), revenue for the Indian IT services sector is expected to witness growth of 8.3% year-on-year in fiscal year 2023, led by IT modernization including application modernization, cloud migration and platformization. Digital revenues are estimated to account for 32%-34% of total industry revenue, growing at 16% annually in fiscal year 2023. IT services contracts will include a significant digital component, led by digital transformation, cloudification, platform engineering, AI, building software-as-a-service ("SaaS") enabled products and associated consulting services.

According to the NASSCOM Report, next-generation technologies, such as sensor technology, smart robots, autonomous driving, computer vision, deep learning, autonomous analytics, AR/VR, sustainability technology, edge computing, distributed ledger, spacetech and 5G/6G are expected to witness twice the average growth in fiscal year 2023.

REAL ESTATE SECTOR:

Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS:

As per International Monetary Funds World Economic Outlook report, India continue to remain the fastest growing major economy of the world. The global economy is projected to grow 6.1 per cent in 2023 and 6.3 per cent in 2023.

ATHENA GLOBAL TECHNOLOGIES LIMITED focuses on IT core activities i.e., enterprise information management, enterprise integration services, Data Ware housing services. We leverage expertise in Artificial Intelligence, Bloch chain, Data Science, Internet of things, RPA, Chatbots and voicebots, Application development, Product Engineering, QA & Testing and other allied services to its Clients. Its clients include organizations from various sectors of the economy such as financial, healthcare, oil, and pharmaceuticals, retail, business services, education, IT and government.

As per the economic survey 2022-2023, Start-ups in India have grown remarkably over the last six years. The number of new recognised start-ups has increased to over 84,000 in 2021-22 from only 733 in 2016-17. As a result, India has become the third largest start-up ecosystem in the World after China and US.

By considering the above stats, the growths that Indian start-ups delivering are remarkable. We can say that the operations of our wholly owned subsidiary named as Tutoroot Technologies Private Limited which is a start-up of our listed entity is considered as one of the oppurinities for the consolidated growth which in turn results to improve the consolidated income and improve segment wise revenue at the end. And as the Government of India has also providing various incentives and schemes to the star t-ups which are helpful for the betterment of the start-ups.

Athena Global has also a material subsidiary named as Medley Medical Solutions Private Limited (Medley) which operates its business in a unique way. Medleys primary objective is providing health related services which majorly includes development and promotion of telemedicine and distant medical facilities in remote areas and to provide communication amongst medical community by dissemination of specialized knowledge through a technologically advanced network and to develop various means of integration of technological advancement in various data transmission fields with various modes of medical facilities electronically.

Tutoroots Primary objective is to carry on the business of imparting training, education in the field of online and digital and all types of school, university or any recognized institute courses, the business of both formal and informal education. to train students in both India and abroad for various educational programs including training for all competitive examinations

In todays fast growing economy, services based on internet has emerged as major oppurinity for many companies. Medley which works for various health care activities are completely online which can be considered as one of the major oppurinity for the growth of our company at the end.

RISK MANAGEMENT

Athenas Board of Directors and executive management promote a risk-aware and risk free environment to protect the stakeholders of the company and ensure timely and quality delivery of projects/services to our client. Your executive management ensures transparency.

As the risks posed by the Covid continued to change and evolve, which resulted most of the techies to adopt work from home. Your management took various steps in reshaping options for returning to the workplace. Your management provided flexible options

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

Revenue is recognized, when the company satisfies a performance obligation by transferring a promised good or service to its customers. The company considers the terms of the contract and its customary business practices to determine the transaction price.

Performance obligations are satisfied at the point of time when the customer obtains controls of the asset.

The Segment wise performance of the Company is reported as follows:

IT Segment & SEZ

Instability and uneven growth in the global economy have had an adverse impact on the growth of the IT industry and may continue to impact it in the future. The Russia-Ukraine conflict has caused global and domestic economic implications. Consequently rising in the energy prices, corrections in the stock market, fluctuating currencies are impacting economies worldwide.

The Companys IT Segment has performed well during the year and has reported a growth of 21.7% from previous year. The Growth was a result of transferring a promised good or service to its customers which in the end also resulted in customer satisfaction.

The property of the Company situated at Manikonda is being developed by M/s. Phoenix Techzone Private Limited, the Developer, (formerly known as Phoenix Embassy Techzone Private Limited), for the setting up of an IT Facility pursuant to the terms of the Joint Development Agreement entered into by the Company with the Developer.

The property of the Company situated at Manikonda (financial District) has received the final approval of "Completion of Project" on the Land Admeasuring 5 Acs at Sy No. 203 Part of Manikonda Jagir, Rajendra Nagar Mandal R R district-Development though Joint Development with M/s Phoenix Tech Zone Private Limited from Government of Telangana Information Technology, Electronics & communications Department.

The company has actively started the process to lease or rent the above property, which will have a positive impact on the revenue of the company in the coming period.

OTHER BUSINESS SEGMENTS

Athena Global Technologies Limited has five segments reporting on consolidated basis. The five segments include, Software services, Real Estate, Online pharmacy platform services, Online Trade of pharmaceuticals products, Online Education services.

As Indias largest digital platform for pharmacy businesses and virtual patient care solution, MedleyMed has helped pharmacies and virtual care providers by providing optimal solutions to help them manage their day-to-day business for more than 20.

Headquartered in Hyderabad, Telangana and Austin, Texas, MedleyMed is now expanding its operations in the United States, Africa, and other nations with a focus on serving virtual care and prescription companies as well as independent retail pharmacies with flexible, market-neutral solutions.

Today, the MedleyMed platform is poised to become the worlds leading customizable, integrated pharmacy and telehealth solution with features that stand out from the rest including better pricing and better margins based on data-driven, real time comparison shopping, advanced supply chain management, contracting, and inventory controls.

Our Wholly owned subsidiary company, Tutoroot Technologies Private Limited which is a start-up company serve as online education provider to the students. These days due to the advancement in the technology, everything has become online, today there are many online education providers in the market, but our business is different in approach among the other players in the market. We undertake various innovative procedures for the teaching, that kept us different among the other players.

INTERNAL CONTROLS AND THEIR ADEQUACIES:

The Internal Control System comprises of exercising controls at various stages and is established in order to provide reasonable assurance for:

• Safeguarding Assets and their Usage,

• Maintenance of Proper Accounting Records and

• Adequacy and Reliability of the Information used for carrying on Business Operations.

The key elements of the system are as follows:

a) Existence of clearly defined Organizational Structure and Authority.

b) Existence of Corporate Policies for Financial Reporting and Accounting

c) Existence of Management Information System updated from time to time as may be required.

d) Existence of Annual Budgets and Long Term Business Plans.

e) Periodical Review of Opportunities and Risk factors depending on the global/Domestic scenario and to undertake measures as may be necessary.

HUMAN RESOURCES STRATEGY:

The Human Resources (HR) strategy is focused on creating a performance-driven environment in the company, where innovation is encouraged performance is recognized and employees are motivate to realize their potential.

HR is the core of the company, influencing change, building cultures and capabilities. The HR processes are continuously evolving and aligning with the changing business requirements. HR is structured into the specialized business units to enable them respond to the needs of their customers and get more strategic advantage.

FUTURE OUTLOOK

As highlighted in the economic and industry review, external factors such as world economy, geo political and policy environment is likely to be a mixed bag with no net impact on performance potential. The Indian IT players have made a transition to remain relevant, skilled and strategic partners to their customers. The overall IT industry and Indian IT services business is expected to show a moderate growth trend.

To further sustain and nurture this growth potential, the Company will be taking critical new initiatives going forward. Continued investments in talent development, enhanced infrastructure and an accent on new approaches based on design thinking capability built across organizational levels will be invested during the next fiscal. Strategic mergers and acquisitions that add leverage to the Companys growth potential will also remain on the radar. The Company is well placed to sustain its performance trend going ahead. The Company has good prospectus in the coming financial year and management is confident of getting new projects.

The Company has good prospectus in the coming financial year and management is confident of getting new projects.

By Order of the board
ATHENA GLOBAL TECHNOLOGIES LIMITED
Sd/- Sd/-
M. Satyendra M.Sunitha
Place: Hyderabad Chairman & Managing Director Director
Date : 29.08.2023 (DIN: 01843557) (DIN:06741426)