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Mindtree Limited (Mindtree) is a leading digital transformation and technology services Company headquartered in Bengaluru, India and New Jersey, US. We deliver digital transformation and technology services from ideation to execution, enabling clients to outperform their competition. We deal in e-commerce, mobile applications, cloud computing, digital transformation, data analytics, enterprise application integration, and enterprise resource planning. Mindtree was founded in August 1999 to focus on delivering business benefits with technology and to become trusted partners to its clients. With the help of our digital strategy framework, organizations can make sense of digital disruption and outpace competition.
As we celebrate our 20th anniversary, we also achieved few historic milestones this year. We clocked a revenue of $1 Billion, up 18.3%, and reported profit after tax (PAT) of $100 Million+. This is a validation of our expertise-led, culture-backed, great delivery excellence, to transform our customers business problems. Leadership in Digital, along with strategic investments in collaboration with enterprises, Start-ups and academia, have been a strong influencing factor in our performance.
Global economic growth slowed down in the second half of 2018 in comparison to the first half. 2018 is estimated to have grown by 3.7%. According to the International Monetary Fund (IMF), 2019 is expected to witness a growth of 3.5% and 2020 to witness 3.6%. Potential factors that resulted in the moderation are a persistent decline in growth rate of advanced economies and a temporary decline in emerging market economies and developing nations. Tariff increase in the US, the introduction of more stringent fuel emission standards in Germany, financial and sovereign risks affecting domestic demand in Italy, the lack of confidence in financial markets stability in Turkey, and trade tensions in China weighed heavily.
The US economy trended up moderately in 2018 to 2.9% from 2.2% in 2017. However, its unlikely to sustain the uptrend and is projected to grow at 2.5% in 2019 and 1.8% in 2020, as the governments fiscal policies to stimulate the economy take a backseat and the federal funds rate overshoots the neutral rate off favorable tax policy changes and an interest,partially all-time low unemployment. Current account deficit is expected to widen as robust domestic demand leads to higher imports.
The Euro area grew at 1.8% in 2018 as compared to 2.4% in 2017. It is expected to grow at 1.6% and 1.7% in 2019 and 2020, respectively. Growth rates have been marked down for many economies, notably Germany (due to soft private consumption, weak industrial production following the introduction of revised auto emission standards, and subdued foreign demand); Italy (due to weak domestic demand and higher borrowing costs as sovereign yields remain elevated); and France (due to the negative impact of street protests and industrial action).
UK is expected to grow at a modest 1.5% in 2019, despite favorable fiscal policies announced in the 2019 Budget, as uncertainties continue to loom over the Brexit outcome. Growth in emerging and developing Asia will dip from 6.5% in 2018 to 6.3% in 2019 and 6.4% in 2020. Chinas economy will slow down due to the combined influence of necessary financial regulatory tightening and trade tensions with the US.
Global growth projections
|Other Advanced Economies||2.8||2.5||2.5|
|Emerging Markets and Developing||4.6||4.5||4.9|
Source: International Monetary Fund (IMF) January 2019 update
India emerged as the worlds fastest growing major economy in FY18, despite facing external macro headwinds. The US monetary tightening, trade wars among major global partners, and rising oil prices were more than offset by robust domestic demand, a successful GST rollout, continued reforms, and increased investments in infrastructure. Inflation is contained well within the target, fiscal consolidation is on the right track, and foreign investment flows are growing. Moreover, during the past few years, the government has undertaken various reforms, and streamlined budgetary allocations amplify inclusive growth and sustainable development of the economy.
Indias economy is poised to pick up further from 7.3% in FY18 to 7.5% in FY19 and 7.7% in FY20, driven by GST implementation in the exempted sectors, promotion of businesses at grassroots levels, and improved digital initiatives. The governments continued thrust on infrastructure should enable India to attract more investments while boosting consumption, aided by Indias favorable demographics and continued investments in education, public health, and large-scale sanitation programs.
Indias IT industry contributed about 7.7% to the countrys GDP. The IT-BPM sector in India expanded at a CAGR of 10.71% to $167 Billion in FY18 from $74 Billion in FY10, outpacing global IT-BPM growth by nearly four times. The size of the industry is expected to grow to $350 Billion by FY25. Revenue from
IT-BPM exports is expected to grow 7-9% annually to reach $135-137 Billion in FY19.
The IT-BPM sector accounts for 45% of Indias services exports.
India is one of the major forces in the global software market with its young and skilled manpower. As an outsourcing destination, India accounted for approximately 55% of the $185-190 Billion global services sourcing business in FY18. The industry is expected to add 1,00,000 jobs in FY19 and is currently undergoing transformation with the emergence of Internet of Things (IoT), virtual and augmented reality, automation, AI and big data.
Indian service providers face a significant opportunity as digital technologies continue to be embedded in an ever-widening range of products and services. The challenges continue around economic volatility, protectionism, competition, labor mobility, and inertia going forward. Digital business has matured a lot and will be a driving force in the Indian IT industry going forward. Blockchain, IoT, AI/ML projects will also be the next frontier in the global IT services space.
Having established their capabilities in delivering on-shore and off-shore services to global clients, top Indian IT firms have geared up to capitalize on significant opportunities emanating from emerging technologies. Strong demand from different geographies should revive IT exports in the near future. However, unfavorable INR movements could impact profitability. NASSCOM stopped providing guidance from FY19 onwards. Instead, the trade body released the findings of a survey of 100 IT sector chief executives. The survey showed that global economic uncertainties were leading to "a cautionary outlook" among industry leaders, even as they expect digitization initiatives to continue with the same momentum in 2019.
Source: IMF; World Economic Outlook (WEO), January 2019 update; Indian IT, ITeS & BPM Industry Analysis, February 2019; NASSCOM Press Release; Bloomberg Quint, February 20, 2019
In FY19, our strategy and investments are resonating extremely well with customers, resulting in a growing pipeline and improving win ratios.
Our customer survey scores continue to be high. Some of the highlights of the survey customer centricity & Mindtree Minds of digital clients prefer Mindtree as their strategic anchor partner and service provider. We continued to win deals across both run and grow side of our business. All the wins we reported throughout the year ramped up as expected. Digital pipeline grew by a healthy 32% in FY19 compared with FY18. We continue to see a very strong traction across all our verticals Banking, Financial Services and Insurance (BFSI), High Technology and Media (Hi-tech), Travel and Hospitality (TH), and Retail, CPG and Manufacturing (RPM).
Strengths and opportunities
Build Digital next Intelligent enterprise for future possibilities
Just as improving customer experience is becoming imperative for all businesses, so is the need to go digital. With emerging technologies defining every business segment, the battlefield for customer experience is opening new doors never imagined before. To make our business more service and loyalty led, we have juxtaposed design, edge, and intelligence with an aim to deliver connected customer
Service models to experiences. We are prepared to build a Digital Next enterprise with four pillars and give shape to this customer experience economy. Presently, our digital business vertical contributes over 50% of revenue, and further advancements in this segment will result in a significant increase in our topline and share of revenue. Using AI, we are focusing on modernizing our core businesses, delivering IoT-led solutions and services, and providing our customers with a 360-degree transformative experience. What gives us an edge over our competitors is our consulting-based and human-centric approach powered by the strong Mindtree culture and value systems. From an IT services industry perspective, the Digital business is estimated to touch $225 Billion by FY20, with Indian IT services firms accounting for $48 Billion; in the next five years, 90% of all incremental spend on IT will come from Digital-led businesses. Our vision is to Make Digital Real. We have positioned our Digital business across five areas:
Strategy and consulting
Making AI pervasive
We have reorganized our digital business team. The new team focuses on cloud-based turnkey solutions with faster customer reach. Our digital innovation hub, Digital Pumpkin, serves as an interactive space for multi-disciplinary teams to come together and brainstorm innovative business solutions and products around IoT, AI, cognitive solutions, virtual and augmented reality, ML, and conversational, cloud and big data.
We have automated a few of our business processes to improve our service delivery and bring efficiency to our overall operations. Our workforce is now a combination of Mindtree Minds and BOTs. We are proud to report that we now have 576 BOTs working in tandem with our Mindtree Minds. A look at our talent pool will give you a sneak peek of the changes prevailing in the global IT landscape.
To deliver tailor-made solutions to our client base and make them future ready to face disruptive changes, we have seamlessly integrated various phases of our IT lifecycle. We launched our end-to-end IT services called Integrated Services in June 2017. Since then, Integrated Services has become a default ask and a key differentiator in every deal of Mindtree, especially large and multi-service line deals.
Integrated Services is powered by Mindtree Composable Automated Platform for Enterprises (CAPE), an enterprise-class plug-and-play platform that integrates enterprise technology landscape and accelerates end-to-end automation. This is one of the prime accelerators of our integrated services approach and has gone through a series of enhancements in the past year. Some of the unique aspects of CAPE:
Umbrella automation platform to serve IT Lifecycle needs of enterprises (plan to run)
Hybrid integration platform enabling plug-and-play solutions
Democratizes automation in an enterprise and is scalable vertically and horizontally
Provides data-based views into the automation-driven value streams
Our integrated services approach helped us deliver significant value across multiple customer engagements:
Effort optimization between 15% and 25% by integrating IT
Lifecycle tool chain and automation initiatives
Faster time to market achieved via faster feedback loops, shorter sprint cycles, automation of daily builds, deployment, and testing
Real-time metrics captured through CAPE Insights dashboards and real-time visibility of unified metrics from multiple tools (raw and derived metrics)
Up to 20% reduction in defect leakage into production and up to 20% increase in code coverage by automating review process
Improved application security
With these accomplishments in integrated services and CAPE, our leading value proposition in the coming year will be to evangelize our product IT operating model. This model will help customers shift from project and functional silos to integrated product teams and deliver both engineering and operations, applications and infrastructure, development and expert thinking.
Enterprise Re-imagination Business (ERB)
ERB, our entrepreneurial business unit, is on a mission to reimagine businesses across industries by leveraging the next generation of digital technologies. We help enterprises reimagine their business models, processes, offerings, market segmentation, sales channel, and enterprise experience with a combination of domain, technology, creativity, and context.
A glimpse of the industry-leading customer engagements led by Mindtree ERB practice:
Retail Point-Of-Sale fraud detection and loss prevention powered by AI for one of the largestgroceryretailersinAsia-Pacific.
Bold vision to automate 80% of backend operations for one of the largest telecom operators in the world with more than 150 Million customers. The goal was to dramatically improve customer experience and efficiency through use of Robotic Process Automation (RPA) and AI technology.
Ambitious vision to create digital twins offshore platforms in order to break into the maintenance business for a global leader in engineering and construction for the oil & gas industry. This included a modern IoT architecture with heavy use of AI and vision technology.
Three-year vision to completely reimagine Business Process Outsourcing (BPO) with Automation and AI-based solutions for a leading value-added distributer.
Alliance and partnerships
We were born as a digital company. With time, we have evolved as a trusted player in the IT ecosystem. Across diverse industries, we have proved our tech expertise and domain capabilities on both run and grow sides of the business. Our proven track record to execute and deliver has been further strengthened by an array of enterprise grade partners. We have more than 90 partners aligned to service lines, industry groups, and technologies.
Customer satisfaction is the most important measure of success in our industry. All the effort we put in everyday gets translated into our high Customer Satisfaction Survey (CES) scores. CES is our annual survey where we reach out to key influencers from our customers to get their feedback about our services. In addition, we seek inputs on their future roadmap and priorities. This helps us measure the health of our relationships with our clients, and what we can do to add value.
Mindtree has always stayed strong by its core values of Collaborative Spirit, Unrelenting Dedication, and Expert Thinking. Our clients spread across different geographies and industries trust our knowledge and proficiency to develop their future technology roadmap. Our digital capabilities along with traditional services empower us to delivery technology customized to address specific customer needs. We do not believe in working in silos. Hence, we involve our customers at every stage and co-create solutions with them. This collaborative spirit stands true to our core value systems. This customer-centric approach, coupled with the ability to leverage emerging trends and transform ideas to reality, helps us stand tall in spheres of satisfaction, advocacy, loyalty, and value for money.
|Quarterly Project||Annual Customer|
|Feedback Survey||Experience Survey|
| On closure of a milestone or defined frequency for selected projects|| Once a year|
| Includes only mid-level contacts|| Includes CXO and senior level|
| To check on latest project executed or transaction completed during the defined period of the relation|| To check overall health|
Our strategy to remain at the forefront stems from our deep domain expertise in our chosen verticals and our customer-focused approach to business solutions. An enviable client list and a strong leadership team are two clear advantages for Mindtree; we intend to leverage them to engineer meaningful technology solutions to help businesses and society flourish. We continue to focus on four strategic pillars, which enable Mindtree to establish market leadership and provide industry-leading returns to our stakeholders.
Great Quality Delivered Faster is our core strategic theme, which gives us competitive advantage in our core business verticals and allows us to create differentiated value propositions to address dynamic market needs.
Consolidated financial results
|Particulars||Rs in million||% of revenue||Rs in million||% of revenue||Growth %|
|Income from operations||70,215||100.0||54,628||100.0||28.5|
|Employee benefits expense||44,212||62.9||35,641||65.2||24.0|
|Earnings before Interest, Tax, Depreciation and Amortization|
|Other income (net)||626||0.9||1,660||3.0||-62.3|
|Foreign exchange gain / (loss)||267||0.4||242||0.4||10.3|
|Depreciation and amortization expense||1,641||2.3||1,715||3.1||-4.3|
|Profit before tax||9,868||14.1||7,423||13.6||32.9|
|Profit for the year (PAT)||7,541||10.7||5,701||10.4||32.3|
|Key financial ratios|
|Days Sales Outstanding (DSO)||70||67|
|Interest coverage ratio||341.276||44.923|
|Debt/ equity ratio||0.0003||0.1099|
|EBITDA margin (%)||15.2||13.6|
|Net profit margin (%)||10.7||10.4|
|Return on net worth (%)||24.9||21.4|
|Diluted earnings per share (Rs)||45.85||34.28|
Improvement in the interest coverage ratio, current ratio, and the debt / equity ratio was mainly attributable towards the repayment of working capital loan of Rs3,000 Million from HDFC Bank during the current year.
USD revenue for FY19 grew 18.3% to $1,001.4 Million while INR revenue rose 28.5% to Rs70,215 Million. We analyze our revenue (in USD terms) based on various parameters:
Revenue by vertical: Travel and Hospitality (TH) grew 29%, followed by High Technology and Media (Hi-tech) by 24%.
Revenue by geography: US grew 25%, while India grew 26%.
Revenue by service offering: Infrastructure management and tech support grew 28%, followed by independent testing and application, development and maintenance, which grew 23% and 20%, respectively; Digital grew 32%.
Revenue by mix: Onsite was up 19%, while offshore was up 16%.
A graphical representation of revenue analysis based on various parameters is given below.
Our active customers list as on March 31, 2019 stood at 349 against 338 in the previous year. The number of $10 Million clients increased from 17 to 23.
Other income (excluding foreign exchange gains)
Other income for the year ending March 31, 2019 was down significantly fromRs1,660 Million during FY18 to Rs626 Million in the current year as the Company wrote back earnout payable towards acquisition of business amounting to Rs916 Million during the previous year.
Foreign exchange loss / gain
Foreign exchange gain for the year ending March 31, 2019 was Rs267 Million versus Rs242 Million in the previous year, as the INR depreciated against the USD.
|Currency||As at March 31, 2019||As at March 31, 2018|
Employee benefits expense
Employee benefits expenses account for 62.9% of our total revenue and are a major part of our total expenditures. The expenses include fixed as well as variable components of employees salaries, and contribution to provident fund and gratuity. Stock-based compensation and staff welfare expenses also form a part of that cost.
Table showing employee benefits expense
For the year ended March 31, 2019
For the year ended March 31, 2018
|Particulars||Rs in million||% of revenue||Rs in million||% of revenue||Increase/ (Decrease) %|
|Salaries and wages||40,985||58.4||33,207||60.8||23.4|
|Contribution to provident and other funds||2,829||4.0||2,100||3.8||34.7|
|Expense on employee stock based compensation||162||0.2||195||0.4||-16.9|
|Staff welfare expenses||236||0.3||139||0.3||69.8|
Total employee benefits expenses increased by 24%. As a percentage of revenue, employee benefits expenses decreased from 65.2% in FY18 to 62.9% in FY19.
Other expenses comprise all other incidental costs apart from employee benefits costs such as travel, sub-contractor charges, rent, and computer consumables.
Statement of other expenses
For the year ended March 31, 2019
For the year ended March 31, 2018
|Particulars||Rs in million||% of revenue||Rs in million||% of revenue||Increase/ (Decrease) %|
|Legal and professional charges||452||0.6||552||1.0||-18.1|
|Power and fuel||302||0.4||289||0.5||4.5|
|Repairs and maintenance|
|Rates and taxes||266||0.4||225||0.4||18.2|
Other expenses increased by 32.6% year on year mainly due to higher sub-contractor charges and travel expenses. The rest of the expense increase could be attributed to higher recruitment expenses, project hardware / software expenses, and other expenses. However, these expenses, as a percentage of revenue, increased marginally by 0.7%.
Profitability and Margins
PAT grew 32.3%, and as a percentage of revenue, marginally increased from 10.4% to 10.7% in FY19.
EBITDA margin increased by 160 basis points, from 13.6% in FY18 to 15.2% in FY19.
Effective tax rate was at 23.6% in FY19 as compared to 23.2% in FY18.
The CEO & MD of the Company has been identified as the Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Groups performance and allocates resources based on an analysis of various performance indicators by industry classes. Accordingly, segment information has been presented for industry classes.
The Group is structured into four reportable business segments Retail, CPG and Manufacturing (RCM), Travel and Hospitality (TH), Banking, Financial Services and Insurance (BFSI), High Technology and Media (Hi-tech). The reportable business segments are in line with the segment-wise information that is presented to the CODM. Each segment is gauged at the measure used to report to the CODM for the purposes of making decisions about allocating resources to the segment and assessing its performance.
Geographic information is based on business sources from that geographic region and delivered from both onsite and offshore. America comprises the United States of America and Canada, Europe includes continental Europe and the UK; the Rest of the World comprises all other geographies, except those mentioned above and India.
Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that while the remainder of costs is apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segment as the underlying services are used interchangeably. The management therefore believes that it is not practical to provide segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocated and directly charged against total income. The CODM does not review assets and liabilities at reportable segments level: hence, segment disclosure relating to total assets and liabilities are not provided. Geographical information on revenue and industry revenue information is collated based on individual customer invoices or in relation to which the revenue is otherwise recognized.
Statement of income
Rs in Million
|For the year||For the year|
|March 31, 2019||March 31, 2018|
|Segment revenue from external customers|
|Segment operating income|
|Depreciation and amortization expense||(1,641)||(1,715)|
|Profit for the year before finance|
|expenses, other income, and tax||9,004||5,690|
|Foreign exchange gain / (loss)||267||242|
|Net profit before taxes||9,868||7,423|
|Net profit after taxes||7,541||5,701|
Significant changes in Balance Sheet items
Movement in other equity of Rs5,644 Million is primarily due to the following:
Balance in the statement of profit and loss increased from Rs25,179 Million to Rs30,265 Million due to current year profit of Rs7,541 Million, which was (including dividend distribution tax) of Rs2,183 Million. segment,
There is an increase in the foreign currency translation reserve due to gains on account of translation of foreign operations of Rs262 Million.
Non-current liabilities increased to Rs179 Million from Rs94 Million in the previous year mainly due to the liability arising on straight lining of lease rent.
Current liabilities decreased by Rs1,307 Million mainly due to the repayment of working capital loan taken from HDFC Bank of Rs3,000 Million, partially offset by an increase in employee benefits payable by Rs654 Million, an increase in trade payables by Rs421 Million, and an increase in current tax liabilities by Rs434 Million, in line with growth in business and profits.
Our cash and investments (net of short-term borrowings and book overdraft) increased from Rs7,476 Million as at March 31, 2018 to Rs9,390 Million as at March 31, 2019, mainly due to cash generated from operations of Rs6,305 Million, offset by dividend payout (including dividend distribution tax) of Rs2,180 Million and the Rs3,000 Million working capital loan repayment.
Days Sales Outstanding (DSO) as at March 31, 2019 was 70 days as compared to 67 days as at March 31, 2018.
At Mindtree, we keep people at the core of our service delivery framework. Mindtree runs various initiatives to nurture and celebrate this diverse talent on a recurring basis. Here are the key highlights from FY19:
1. Women In Tech Program to encourage and groom Lady Mindtree Minds to be future architects.
2. Mi-Footprints Initiative to create an ecosystem that enables coaching, mentoring, and career crafting for Lady Minds in certain competencies.
3. ASCENT Program to identify and groom high-performing C2 competency minds who can be coached and mentored to be
Architects in CTO/CAG.
4. Sales Fellowship Program Highly successful Sales Fellowship Program curated and carried out, where 35 (out of the 78 applied) Mindtree Minds are on their way to become key customer-facing business development professionals.
5. Leadership Development Top leadership (sales, delivery management, and architects) talent reviews conducted to take critical talent deployment decisions. For the first time, a system has been internally designed and deployed by CIS to manage talent profiles, and critical leadership traits were identified by the CEO for Mindtrees Global 100+ leaders used for evaluation.
6. Succession Planning A new online system that looks at subjective decision-making and objective psychometric assessment as fitment criteria to critical roles as defined by top management and the Board.
7. Reward and Recognition (a) Chairmans Award revisited and repositioned with the much appreciated Consistently Extraordinary theme. The award was opened up for all competencies / roles without any categorization, and aligned to our core belief that ordinary people can do extraordinary things. (b) Launched Mindtree Fellow, a title for top technologists, covering top flights techno brains who represent Mindtrees technical thought leadership.
8. Delivery Management Program & PM Unit Unique Learning Program rolled out for close to 100 delivery managers with CDO as the sponsor. This is the first time that an exclusive program for delivery managers have been deployed to ensure that they perform their role better. PM Unit a system and process cell to control the quality of PMs and the development planning for this cohort was institutionalized last year through the Delivery Excellence and OD Teams. The focus has been to improve hiring processes and create learning programs.
9. Future Leader Meant for the mid-level hi-potential managers / technologists / engineers, this program was designed and launched for the top 5%. This is fundamentally a leadership and soft skills development program, achieved through collaborative action, learning opportunities, and coaching for entry-level leaders. The Future Leader program is the first pit stop where the organization can provide appropriate leadership roles to the right talent.
10. Exuberance This initiative for unearthing Lady Leadership talent continues; this year, we included the top 10% from Exuberance batches in our Leadership Talent review.
11. First Five One of the most significant change management initiatives launched in collaboration between various key functions this year to identify, groom, and allocate Campus Minds through their first five years in Mindtree and evolve as leads. At present, this initiative runs across the two largest practices Digital and Test Engineering.
12. Culture Tree Culture is a prominent reason our beloved Mindtree Minds and Mindtrees esteemed clients stay and love Mindtree, and are so passionate about being part of the grand family. Mindtrees Culture Tree site https://culture.mindtree.com/ and the app can be used by all to capture / share Mindtree stories virtually from anywhere in the globe and for all to watch / listen to these fascinating stories.
13. Arboretum The initiative has morphed to a more digital, analytical, user-experience-driven initiative that applies to two of the CEOs important charters of Making Mindtree Agile and Digital Inside.
|As at||As at|
|March 31, 2019||March 31, 2018|
|Total Mindtree Minds||20,204||17,723|
|Attrition (last 12 months) (%)||14.2||12.5|
|Women employees (%)||31||30|
*Nationalities represent the count of countries to which Mindtree Minds belong to.
**A BOT is defined as a software that acts autonomously, free from any interference, human or otherwise, to perform a significant task which will otherwise be performed by a human.
Internal control systems
Threats, risks, and concerns
Mindtree is exposed to a wide variety of connected and interconnected risks. To ensure suitable risk prioritization and mitigation, we identify the internal and external events that may affect our strategies and potentially impact our results, capital and reputation. Enterprise risk management (ERM) enables the management to efficiently deal with uncertainty and the associated risks and opportunities together with enhancing the capacity to build shareholder value.
Pioneering the Digital First wave, the key differentiator in the future is bringing in customer experience to deliver connected experiences and operations using edge, intelligence, and the cloud coupled with a human-centric approach. Mindtree relies on its guiding vision, a well-defined mission, and a culture that encourages every employee to explore new ways to create value for all stakeholders. The capabilities of our people have taken us far, and we will continue to invest in developing our teams to enhance their efficiency and introduce industry-leading practices.
Our outlook for FY20 is delivering a revenue growth in low-teens along with margin expansion of 100 to 120 basis points through various initiatives such as pricing and cost efficiencies. The coming year brings in exciting opportunities as well as challenges, but we are confident of maintaining our trajectory of growing faster than our industry.
Readers are cautioned that this discussion contains forward-looking statements that involve risks and uncertainties. When used in this discussion, the words anticipate, believe, estimate, intend, will, and expect and other similar expressions as they relate to the Company or its business are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actual results, performances, or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. This discussion and analysis should be read in conjunction with the Companys financial statements includedinthisReport and the notes thereto. Investors are also requested to note that this discussion is based on the consolidated financial results of the Group.