The management discussion and analysis present the industry overview, opportunities and
threats, initiatives by the Company and overall strategy of becoming a market driven
Service Provider of a range of offerings. The company is very optimistic of capturing a
substantial share of global and domestic market in the midst of the threats faced due to
the liberalization and increased competition from well established companies from India
and abroad.
OUTLOOK:
Your Company continued to achieve new heights during the FY 2022-23 too and has
established a proven track record in IT staffing industry. Alongwith existing clients, the
Company has added new clients for IT staffing and Digital business. The Directors of your
company have been able to establish a management system which is efficient in the overall
development of the Company, including its employees and other stakeholders.
With successful track of staffing and IT consulting offerings, new digital marketing
offerings have also witnessed as success. It has also enabled us to deliver holistic
digital solution to our customers. Although there is slow down in US & Europe but your
Company has been able to maintain an efficient performance throughout the year. The Board
of your Company has taken due care of all the factors affecting the performance, keeping
in mind the work from home requirements and necessities.
OPPORTUNITIES:
The Indian IT staffing industry has grown significantly over the years and has become a
major contributor to the countrys economy. With the advent of new technologies and
changing work trends, the industry is constantly evolving, and its important to stay
ahead of the curve. As we approach the year 2023, its crucial to understand the trends
and insights that will shape the future of the industry. In this blog post, we will dive
into the latest trends in Indian IT staffing and what it means for the industry in the
coming years. From the rise of gig workers and remote work to the increasing use of
artificial intelligence and automation, we will explore the key factors that will shape
the future of Indian IT staffing. Whether you are a business owner, an IT professional, or
simply interested in the industry, this post will give you valuable insights into what the
future holds for Indian IT staffing.
The Indian IT staffing industry has tremendous opportunities and growth potential in
the coming years. With technological advances and digital transformation, companies are
constantly seeking skilled professionals to help them stay ahead of the competition. This
has created a huge demand for IT staffing services in India, and this trend is expected to
continue in the future.
One of the key growth drivers for the Indian IT staffing industry is the increasing
adoption of cloud computing, big data analytics, and artificial intelligence. These
technologies require specific skill sets that are in high demand, and companies are
willing to pay a premium for qualified professionals. As a result, IT staffing firms that
can provide these specialized skills are poised for significant growth in the coming
years.
Another area of opportunity for the Indian IT staffing industry is the emergence of
niche sectors such as healthcare IT, e-commerce, and fintech. These sectors are growing
rapidly and require specialized IT talent to meet their unique needs. IT staffing firms
that can provide talent with expertise in these areas will be well-positioned to
capitalize on this trend.
Finally, the Indian governments push for digitalization and the "Make in
India" campaign are also expected to drive growth in the IT staffing industry. The
governments focus on building a strong digital infrastructure and attracting foreign
investment will create new opportunities for IT staffing firms to provide specialized
services.
Overall, the future looks bright for the Indian IT staffing industry. With the right
strategy and focus on emerging technologies and niche sectors, IT staffing firms can
capitalize on the opportunities and drive growth in this dynamic industry.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Standalone Performance: During the year under review your company reported a good
rise in revenue from operations amounting to an amount of INR 3,390.72 Lakhs as compared
to an amount of INR 2,202.95 Lakhs earned in the previous Financial Year. The Company has
marked a growth of 54 % in its turnover during the FY 2022-23 as compared to a growth of
121.51 % made during the FY 2021-22 as an effect of planned and executed operations of
expanding its client base and business in India. Considering the downfall in overseas
market, the Company has witnessed a downfall of around 80% in the export turnover during
the period under report, whereas the turnover from domestic sale has made a substantial
growth of around 150%.
The Company has recorded a Gross Profit (PBT) of INR 90.50 lakhs as compared to INR
52.63 lakhs earned in the previous financial year marking a growth of approx. 72% and
Profit after tax (PAT) of INR 64.46 Lakhs as compared to a profit of INR 45.92 Lakhs
earned during the previous financial year.
The EPS for the FY 2022-23 is reported to be INR 1.52 as compared to INR 1.08 in FY
2021-22, showing a growth of 40.37%.
Consolidated Performance: The Company has shown a proven record of consistency and
is efficient in its performance. However, the Consolidated Revenue during the period under
report aggregates to an amount of INR 4582.07 Lakhs as compared to an amount of INR
4,847.37 Lakhs earned during the previous financial year resulting in a reduction of 5.5%,
the Company has recorded a decline in its profit after tax (PAT) and has recorded a Loss
of INR 13.33 Lakhs during the year under report as compared to Profit after Tax of an
amount of INR 96.05 Lakhs in the previous year 2021-22 resulting in a reduction of
113.87%.
The temporary slowdown in the performance of the wholly owned subsidiary of the Company
i.e. Mindpool Technologies INC, USA and therefore has resulted in downfall during the
second half of the FY 2022-23. The decrease in profits can be attributed to the looming
possibility of a recession in the US, which are causing unfavorable market conditions that
are affecting the business operations. Therefore, the speculations detailed above has
resulted in adverse impact on our overall performance.
Subsidiary Performance:
Mindpool Technologies Inc.- The wholly owned subsidiary of the Company generated a
Revenue of USD 1.479 Million (INR. 1,191.35 Lakh) during the period under report as
compared to an amount of USD 3.513 Million (INR 2,644.43 Lakhs) earned during the previous
financial year resulting in a reduction of approximately 58%. Also, the Company has
recorded a Loss of USD 96 Thousand (INR 77.79 Lakhs) during the period during the year
under report as compared to Profit after Tax of an amount of USD 66.60 Thousand (INR 50.13
Lakhs) in the previous year 2021-22 resulting in a reduction of approx. 245%.
INDUSTRY STRUCTURE & DEVELOPMENTS:
The Indian IT staffing industry has come a long way since its inception in the 1990s.
With the growth of the IT industry, the demand for skilled professionals in India has been
on an upward trajectory. According to a recent report, India is currently the
third-largest startup hub in the world, with over 50,000 startups. This has resulted in a
surge in demand for IT staffing services in the country. The Indian IT staffing market is
projected to grow at a CAGR of over 8% during the period 2019-2023, driven by the
increasing adoption of digital technologies and the growing demand for specialized skills.
The industry is also witnessing a shift towards a more flexible workforce, with companies
increasingly relying on contract staffing to meet their talent requirements. As we move
towards the future, it is evident that the Indian IT staffing industry has a lot of
potential for growth and innovation.
During the first week of March 2023, IT industry body NASSCOM made a statement that
Indian technology sector is set to grow at 8.4% in FY 2023 to reach $245 billion market
size. The growth trajectory: The IT staffing industry is a crucial part of the IT sector
in India.
1. Continued Growth in Remote Work: Remote work arrangements might have become more
widespread, influencing the types of IT roles in demand and the locations from which
candidates are sourced.
2. Upskilling and Reskilling Initiatives: To address skills shortages, companies and
staffing agencies may have invested more in upskilling and reskilling programs to groom
talent internally.
3. Automation and AI: The use of automation and AI technologies in recruitment
processes might have increased, improving the efficiency of matching candidates to job
roles.
4. Hybrid Work Models: Companies may have adopted hybrid work models, blending remote
and in-office work, requiring IT staffing agencies to adapt their recruitment strategies
accordingly.
5. Cybersecurity and Data Privacy Focus: The increasing emphasis on cybersecurity and
data privacy might have led to a surge in demand for IT security professionals.
Ethical AI Hiring Practices: IT staffing agencies may have adopted ethical AI practices
to minimize bias and ensure fair hiring processes.
RISK AND CONCERNS:
The Board of Directors of the Company has implemented a Risk Management policy to
monitor the Risk Management plan for Mindpool. The Head of Departments (HODs) are
responsible for assessing the risk management strategies and safeguarding their
effectiveness and report the same to the Board of Directors. All Strategic Risks,
Compliance Risks, Operational Risks, Financial Risks & Reputational Risks are
systematically addressed through mitigating actions on a continuous basis.
The immediate need for staffing companies is to acknowledge and understand the evolving
dynamics of the business and accordingly transform or adapt to the new changes. This can
facilitate staffing companies in transforming from just being labour market intermediates
to future drivers of business for IT companies in India.
While the Indian IT staffing industry has seen tremendous growth in the past decade,
its not without its challenges. One of the biggest challenges facing the industry is the
shortage of skilled talent. With digital transformation taking center stage, companies are
looking for professionals with the latest skills and certifications. However, the supply
of such talent is limited.
To overcome this challenge, companies need to invest in training and upskilling their
employees. This will not only help them retain their existing talent but also attract new
talent to their organization. Additionally, companies can partner with educational
institutions and industry bodies to promote IT education and training.
Another challenge is the increasing competition in the industry. With the rise of
startups and the entry of global players, the competition has become intense. Companies
need to differentiate themselves by providing unique services and solutions to their
clients. They need to focus on building strong relationships with their clients and
delivering quality services.
Finally, the industry is also facing challenges related to data privacy and security.
With the increasing number of cyber threats, companies need to invest in robust security
measures to protect their clients data. They need to comply with the latest data privacy
regulations and ensure that their employees are trained in data security best practices.
In conclusion, the challenges facing the Indian IT staffing industry can be overcome by
investing in talent development, building strong client relationships, and prioritizing
data privacy and security. Companies that can successfully navigate these challenges are
poised for success in the years to come.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:
Moreover, we report that there are appropriate systems and processes in the Company
corresponding to the size and operations of the company. Our legal and compliance team
ensures compliance to all the laws, rules, regulations and guidelines. We further report
that during the period under report, we have undertaken the best practices &
significant corporate events/actions that have a bearing on the Companys affairs towards
fulfilment of the referred laws, rules, regulations, guidelines, standards, etc. The
report submitted by the Internal Auditor on the controls and functioning of the various
departments further ensures that a system of proper checks and balances is maintained
within the Company.
A Year of Excellence in Compliance and Client Relations : The year has been marked by
significant progress in knowledge acquisition and understanding, with our teams actively
engaging in training and upskilling initiatives. This commitment to continuous learning
has empowered our workforce to adapt swiftly to changes in the business landscape.
Our unwavering commitment to compliance has been the bedrock of our success. Throughout
the year, we have ensured timely fulfilment of all legal and statutory requirements, and
there have been no delays or overdue in any compliances. Our implementation of the
"doer and checker" principle has resulted in the delivery of accurate reports to
our clients, minimizing the likelihood of non-compliances during audits. We are proud to
share that one of our key clients, with whom we engage regularly for compliance reporting,
has reported no instances of non-compliance. This achievement is a testament to the
dedication and professionalism of our compliance team.
Moreover, our client-centric approach remains at the heart of our operations. Regular
calls with our finance and compliance teams facilitate swift resolutions to any client
queries, ensuring a seamless and productive collaboration. We deeply appreciate the trust
and support of our employees, clients, and stakeholders, and we look forward to building
on this success in the coming year. Together, we will continue striving for excellence in
all aspects of our business operations.
HUMAN RESOURCES & INDUSTRIAL RELATION:
We have maintained very cordial Industrial relations throughout the year. Measures for
welfare of employees, Training
& Development were given great importance by the management. Our HR team
implemented effective practices such as employee empowerment, goal setting and open
communication, resulting in a positive culture that leads to the workforce delivering
better client experiences.
Empowering Growth through Learning and Engagement: At our core, we understand the
value of continuous learning and development. Throughout the year, we conducted 10
insightful learning sessions, with our senior members and leaders contributing
significantly. This investment in our employees growth equips them to thrive in any
situation, setting them on a path to success.
Employee engagement is vital to us, and we are proud of our comprehensive engagement
charter, which extends its reach to those working from home (WFH). Exciting events
organized by Team Hunarsource, including Silent Parties and treks, added a special touch
to their experiences. We also introduced sports sessions for our female employees,
fostering a happy and productive work environment.
Recognizing outstanding contributions, we introduced "Best Recruiter" and
"Best Account Managers" awards, alongside our existing recognition programs. Our
performance tracking system, Zoho, has enhanced talent retention significantly, while
attrition remains low at 9% YTD. As we embrace the future with enthusiasm, we celebrate a
year of growth, learning, and unwavering dedication
ENVIRONMENT CARE, SOCIAL ACCOUNTABILITY AND QUALITY SYSTEM:
Mindpool is committed to maintain the highest standards of social accountability &
quality standards. We believe that ensuring sound corporate governance is imperative to
improve and retain investor trust.
We have implemented several social accountability benchmarks to create value for
multiple benefits for the society.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:
Mindpool has been carrying out its business operations in the areas of IT Enabled
Services and support services to other organizations. All the services provided by the
Company are relating to support services to other organizations and accordingly the
revenue can be segmented into five heads, i.e. Staffing Services, Digital Marketing
Services, Routing Services, Offshore Development Center (ODC) and Others. The revenue and
profit bifurcation of the Company based on the abovementioned segments are as follows:
| Sr. Segment |
Revenue |
Revenue Percentage |
Profit/(Loss) |
Profit |
| No. |
(INR Lakhs) |
|
(INR Lakhs) |
Percentage |
| 1 Staffing Services |
1979.44 |
58.38 |
61.28 |
55.63% |
| 2 Digital Marketing Services |
115.75 |
3.41 |
7.91 |
7.18% |
| 3 Routing Services |
1014.35 |
29.92% |
37.00 |
33.58% |
| 4 Offshore Development Center (ODC) |
66.97 |
1.98% |
3.99 |
3.62% |
| 5 Others |
214.20 |
6.32% |
- |
- |
| TOTAL |
3,390.71 |
100% |
110.17 |
100% |
| 6 Interest Cost |
- |
- |
(19.67) |
- |
| Total Deduction |
- |
- |
(19.67) |
- |
| Net Result |
3,390.71 |
100% |
90.50 |
- |
DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE
IMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH EXPLANATIONS
THEREFORE, INCLUDING:
| Financial Ratio |
2022-23 |
2021-22 |
Change % |
Reason |
| Debtors turnover ratio |
1.71 |
2.05 |
-102.55% |
Deviation is due to increase in turnover |
| Inventory Turnover ratio |
NA |
NA |
- |
No inventory as Company provides services |
| Interest Coverage Ratio |
4.93 |
19.62 |
81.5% |
The deviation is due to increase in use of borrowed funds. |
| Current ratio |
3.16 |
3.97 |
-80.92% |
The deviation is due to increase in turnover |
|
|
|
|
The deviation is due to increase in Bill |
| Debt equity ratio |
0.36 |
0.22 |
13.87% |
Discounting balance outstanding as on the last day of year |
| Operating Profit Ratio |
6.66% |
4.13% |
79.63% |
The deviation is due to the rate of increase in Revenue and compared to employee cost |
| Net Profit Margin (%) |
1.89 |
2.04 |
-0.15% |
The deviation is due to increase in Tax due to increase in profitability |
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS
FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF
| Ratio |
2022-23 |
2021-22 |
Change % |
Reason |
| Return on Net-worth (ROI) (%) |
4.73% |
4.10% |
0.63% |
Deviation is due to increase in turnover |
FUTURE PROSPECTS OF COMPANY:
Looking forward, Mindpool will continue to seek out new and improved ways of
efficiently delivering the services that our clientele needs. We have formulated a sound
corporate vision and long-term management plan, while ensuring that we have constantly
evolving management and business structures to respond quickly to the market needs &
globalization. We strive to create new avenues for adding more value for the
"stakeholders" being investors, business partners, employees, consumers, and
communities as well.
DISCLOSURE OF ACCOUNTING TREATMENT:
The Company has followed all the treatments in the Financial Statements as per the
prescribed Accounting Standards.
CAUTIONARY STATEMENT
This management discussion and analysis contain forward looking statements that
reflects your Companys current views with respect to future events and financial
performance. The actual results may differ materially from those anticipated in the
forward-looking statements as a result of many factors.
|
By Order of the Board |
|
For, Mindpool Technologies Limited |
|
Sd/- |
|
Ritesh Ramavtar Sharma |
|
Chairman & Managing Director |
| Date: 05/08/2023 |
|
|
DIN:02676486 |
| Place: Pune |
|
+91-9892691696
