Company performance:
During the year, your Company earned total revenues of 10535.31 lacs compared with
7764.54 lacs during the previous year, reflecting a growth of 35% over the previous year.
The profit before tax stood at 103.17 lacs as compared to 83.87 lacs in the previous year
reflecting a growth of 24%. The Company has made a provision of tax totaling to 34.40 lacs
and the profit after tax stood at 68.76 lacs for the current year. The Operating Profit
(earnings before depreciation and interest and tax) grew from 358.77 lacs to 418.24 lacs.
Your Company has continued to delivery strong performance and further strengthened its
position in the market. The performance was achieved in the background of a fast changing
industry landscape and a challenging economic scenario. Your Companys growth has been a
result of its customer centric approach and a balanced portfolio of integrated solutions
and services. Core focus areas during the year have been customer acquisition and
engagement of strategic customers to ensure products aligned with customer expectation and
market requirements for sustained growth.
Industry structure and developments:
The year under review was one of the most challenging ones in recent years. The year
saw continued volatility even in the midst of positive factors like declining oil prices
and US economy showing signs of revival. The market for IT services is growing in the
midst of continued volatility in large global economies in spite of oil prices showing a
declining trend. In India although the sentiment continues to be positive, demand on the
ground has not picked across product categories.
There is an increasing trend seen in customers both in India and in the Global context,
embracing Social media, Mobility, Analytics and Cloud (SMAC) to drive growth and derive
competitive advantage especially with analytics and mobility becoming integral to IT
strategy. This has led to a dynamic value ecosystem digitally connecting products and
services that combine to meet customer needs and deliver more business value.
Review of operations:
Dynacons Enterprise Services offerings include a wide spectrum of Enterprise IT and
Office Automation Services including Infrastructure Managed Services, Breakfix Services,
Managed Print Services, Cloud Computing, Systems Integration Services, and Applications
Development and Maintenance. The Company provides end-to-end technology and technology
related services to corporations across industry verticals. The Company has deep domain
knowledge across industry sectors and technology expertise across traditional and new age
technologies.
Dynacons undertakes all activities related to IT infrastructure including
infrastructure design and consulting services, turnkey systems integration of large
network and data centre infrastructures including supply of associated equipment and
software; on-site and remote facilities management of multi- location infrastructure of
domestic clients. The Companys domain knowledge and technology expertise combined with
its delivery capability offers unique advantage to its customers. The Company has built a
strong customer base, variety of talent and a competent service delivery infrastructure.
The systems integration business focuses on creating solutions and providing services
for the IT infrastructure requirements covering infrastructure architecture, design and
consulting services; turnkey system integration of large network and data centre
infrastructures. The scope of services includes supply of associated equipment and
software; On-Site and Remote Support Services for multi-locations for the IT
infrastructures. The Company has undertaken several solution deployments such as National
Payments Corporation of India, IDBI Bank, Reserve Bank of India, State Bank of India,
Central Bank, Bank of India, etc. Your Company undertakes large scale network setups and
rollouts. We have successfully completed the networking setup of the 2 new lounges at the
new Terminal 2, International Airport at Mumbai. This included setup of a wired and Wi-Fi
infrastructure alongwith deployment of the server infrastructure.
Your Company made several wins in the state of Madhya Pradesh. Notable wins are the MP
Advocate General Case Management System, Public Examination Board, IGRS and Water Resource
Department. Services offered include Application Development, Data Centre build, System
Integration, Digitization, Project Management, Networking and support over multiple years.
Your Company continues to develop deeper, more strategic relationships with global
customers like H & M, British Airways, Sita, Zoetis, Levis, Schindler etc. Your
Company is also working on several projects with the Tier I System Integrators like TCS,
Tech Mahindra, Atos, UST Global, L&T Infotech etc.
Infrastructure Management Services: This is a key growth engine of our Enterprise
Services business. The business significantly increased its annuity contract bank backed
by multiple deals in BFSI, Manufacturing, Hospitality, & Government verticals in
India. In FY14, we launched many productivity and customer service improvement initiatives
including field force automation, spares cycle time reduction, traveltime reduction
through optimalroute planning, remote resolution improvement, etc.
We recognise that for most organisations the management of their ICT infrastructure
must balance the need for availability, flexibility and security against the need for
keeping the cost of ownership as effective as possible. All of our services and operations
are fully aligned with the worlds most respected standards and frameworks. Our processes
are based on the IT Infrastructure Library (ITILR) service management framework with a
focus on continuous service improvement and customer satisfaction. Your Company has
developed and refined its Service Delivery Model to ensure a consistent and controlled
service process.
Your Companys Service Delivery Model is an integrated Service Management process
delivery model, with the objective of enabling delivery of high quality, standardised,
repeatable and consistent services for our customers. Our teams provide first class onsite
and remote support services including logistics management and full equipment lifecycle
management. Fully integrated into our service management solutions, our engineering
capability enhances workspace delivery across the nation.
The Companys relentless focus on delivery excellence and customer satisfaction has won
the Company multiple awards and recognitions in the marketplace. Your Company has won
awards for work undertaken in the Managed Services, Data Centre, Storage and Security
domain. These awards are testimony to the commitment of our team for the hard work and
dedication which ensures that we deliver an extraordinary experience to our customer.
Our key differentiators include an end-to-end services and solutions driven model with
a strong focus on quality in every aspect of service and product delivery. Dynacons has an
established nationwide support network to provide multi location multi platform support
for organisations. Our ability to align our teams to the customers business goals,
together with our extensive domain and technology expertise, has helped us to remain
relevant to our customers.
Strengths
The Companys market strategy is to offer the full range of IT services, have presence
in all industry segments through a diverse range of products and service offerings, and
continue expanding geography presence. The product and service portfolio is based on
providing end-to-end solutions in the Systems Integration and Managed Services space. The
Company maintains a competitive edge through a wide spectrum of technology skills,
including niche areas.
Your company has unique end to end servicing and solution capabilities that
differentiate it from the traditional vendors in the market place. Dynacons has a team of
specialists with experience in leveraging technology to help improve efficiency. The
Company provides dynamic technology solutions and has the capability to address the
increased complexity, cost and risk associated with these technology platforms. Your
Companys offerings span across areas relevant to each organization.
Quality
Sustained commitment to highest levels of quality, best-in-class service management,
robust information security practices and mature business continuity processes helped the
Company attain significant milestones during the year. Your Company continues to strive
towards maintaining sustainable growth through the philosophy of business excellence
Recognizing that workforce competency is a powerful growth engine, competency mapping and
development was completed for the workforce with appropriate interventions through a
learning and development plan.
Your Company continues to strive towards process improvement for ensuring high quality
delivery and high levels of customer satisfaction. A strong emphasis is based on quality
in every aspect of the companys activities. In line with this philosophy we have designed
our quality management program and have defined several key parameters for measurement of
quality levels to ensure improvement in the quality of the deliverables.
Customer satisfaction and excellence in quality are key elements for succeeding in the
competitive global market. Review of key business processes like business planning,
reporting and communication has been done to make them more effective in meeting business
objectives. The Companys ERP system enables the business to yield higher employee
productivity, save time and our employees can focus their energy and time in providing
enhanced services and capturing new clients. Moving forward your company shall continue to
further strengthen its processes by adopting best in class standards.
Outlook
We are at the beginning of a new era - the Digital Revolution - which is resulting in
the Consumerisation of IT fuelled by a set of technologies referred to as Social, Mobile,
big Data and Cloud. This began as a technological change but is rapidlity transforming and
impacting every facet of our lives and work. Such transformations are drivings businesses
to change and adapt. Going forward, new concepts like service as a software, agile
platforms and artificial intelligence will play a bigger role in enterprise IT and your
Company is well positioned to play a significant role in this journey.
There is a rising intensity of technology adoption across industry verticals which are
fuelling adoption of newer platforms. The technologies themselves have a shorter shelf
life now than ever before. This leads businesses to move from committing and investing on
a technology platform to making use of technology on an Opex model. Therefore, there is a
greater propensity to outsource which is showing no sign of tapering off. Overall the
objective is to minimise the overall transaction costs by appropriate and customised use
of Technology. IT companies like ours are already well positioned and ahead of the curve
intaking advantage of the emerging opportunities.
Indian IT industry would continue its growth path and will weather any volatility in
the global economy on the back of strong domestic market which is still largely unserved
and has unmet needs. The IT skills supply is marked by some very high levels of skills and
cutting edge web technologies. In addition there is a strong trend towards digital and e
commerce based start-ups indicating a healthy innovative culture building up which would
foster IP led as an add-on to services led growth so far witnessed.
The Companys strategy for long term growth continues to be to (a) expand its
addressable market by investing in newer geographies and newer businesses and (b)
strengthen and deepen existing client relationships through a customer-centric approach,
superior execution that gives clients an experience of certainty, a full services
capability and a scalable global network delivery model. Your Company will continue to
invest in the three horizon portfolio of derivative innovation (improvements on current
offerings), platform innovations (near term advancements) and disruptive innovations (long
term or new market focused investments). With the maturity of technologies around the
Internet of Things, your Company has scaled up its efforts to build competencies in that
area.
As an organization, your Company continues to be driven by a strong performance ethich
and a strong set of values and behaviours and is committed to delivering excellence. Our
investments in our people, capabilities, technology and infrastructure continue to ensure
that your Company remains the partner of choice for customers.
Opportunities and threats
Opportunities
(1) Domestic market to get boosted due to Government focus on "Digital India"
and "Make in India" and "Smart Cities".
(2) Increasing penetration of Internet in India with the rapid expansion of broadband
spectrum availability is enabling businesses to look at Tier II/Tier III cities not only
for addressing newer markets but also for IT companies to look for delivery centres in
these places. As a result, IT and network Infrastructures services and associated value
added services would therefore be a growth area.
(3) The adoption of SMAC technologies is expected to drive growth in all the segments.
Cloud and client maturity are the major drivers for across the industry verticals.
(4) E Commerce is driving rapid growth with unprecedented levels of funding. This will
bring in opportunities for IT services and associated opportunities for provision of
skilling services.
Threats
Competition is the main threat to most tech outfits, considering the relentless product
cycles, the typically rapid move towards commoditization in the sector and also changes in
technology and markets, changes in government policy or regulations / legislation etc.
also brings challenges and treats to the smooth functioning of the Company. Since the IT
sector is exposed to high attrition rate due to more opportunities available in market for
the employee, retaining existing talent pool and attracting new talented manpower is a
major risk to the Company. The Company has initiated various measures to enhance the
retention of employees during the year.
Risks and Concerns
The Companys objectives and expectations may be forward looking within the meaning of
applicable laws and regulations. The competition from large international and Indian IT
companies is increasing in the domestic market space. Actual results may differ materially
from those expressed. Important factors that could influence the Companys operations
include change in government regulations, tax laws, increased competition, economic and
political developments.
The growth in the economy and IT industry is expected to lead to higher job
opportunities and increased demand. This is leading to higher attrition across the IT
industry. The speed of technology obsolescence has increased as a natural reaction to fast
changing technologies. The productive life of IT resources and competencies is shrinking,
thereby increasing the level of investment needed to meet the market requirements.
Internal control systems and their adequacy
Your Company has an effective internal control and risk mitigation system, which are
constantly assessed and strengthened with new/revised standards operating procedures. The
Companys internal control system is commensurate with its size, scale and complexities of
its operations. Dynacons Systems & Solutions Limited have a well-defined delegation of
power with authority limits for approving revenue as well as expenditure and processing
payments.
Dynacons Systems & Solutions Limited has an audit committee, the details of which
have been provided in the corporate governance report.The Audit Committee of the Board of
Directors actively reviews the adequacy and effectiveness of the internal control systems
and suggest improvements to strengthen the same. The Company has the robust Management
Information System, which is an integral part of the control mechanism.
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