BSE:532348 | NSE:SUBEXEQ | 58888:subex | IND:IT Consulting & Software - Small Cap | ISIN code:INE754A01014 | SECT:IT Software
It gives me great pleasure to address and update you on the progress made by Subex in the last financial year.
The two areas of focus that were of primary importance to me since I took over the role of CEO in last year was revenue growth and a vibrant Subex. And to do this, we rediscovered our purpose, values and set our vision to be the largest player globally in the space of Digital Trust. This vision further dovetailed into our three-horizon strategy wherein horizon 1 consisted of our core areas; horizon 2 consisted of high-growth areas of IoT security and analytics; and horizon 3 consisted of aspirational areas of automated multi-vertical anomaly detection and digital identity.
I am happy to announce that both from a strategy and execution perspective, we did well during the course of last year. We closed the year with revenue of Rs.348 cr which was a growth of 7.3% over the corresponding number of Rs.324 cr in the last fiscal year. The Profit After Tax also saw a jump of 21.7% to finish the year at Rs.25.2 cr. While we do understand that these are small beginnings, what gives us confidence is the fact that our outlined strategy is definitely taking shape and we see a strong traction for growth going into the next fiscal year.
Let me provide you a brief view of how we did in each of these horizons. The market segment of telecom BSS i.e. Business Support Systems software that predominantly covers horizon 1 areas is expected to remain flat. As a global leader in most of the areas that we operate in this segment, our effort was to perform better by increasing our market share with differentiated offerings. We embedded purpose-built AI/ML into our products, leveraged technology to effectively manage huge data volumes, compute requirements, and thereby created significant competitive advantage during the course of last year. We are competing very well with a strong pipeline of new opportunities further strengthened by a phenomenal last quarter that resulted in a 30% increase in new business bookings over the previous year. The Q4 FY19 results reflect the impact of these higher new business bookings.
Horizon 2 is our key growth area at the moment. With this target, our intent was not only build on the initial advantage that we have from a technology perspective but also increase the coverage of as many segments as possible. Towards this end, we have secured customers in a diverse range of verticals like smart cities, oil and gas, connected cars, manufacturing and IoT connectivity providers to name a few. Our honeypot lab has been enhanced and we have also carefully extended it to top research facilities in Singapore, Dubai and Europe. This proactive approach of generating threat signature is becoming a key differentiator of our digital security solution. ACT our Analytics Center of Trust, the other product offering in the horizon 2 portfolio has now been extended to two customers and both are being driven very strategically at this point.
However, the proof of the pudding is the fact that we have met the internal target of US$5 million contracted business in the very first year of operation on horizon 2 products.
On horizon 3, which is the aspirational areas, we are working on much larger use cases and have launched CrunchMetrics, an AI/ML based multi-vertical anomaly detection in January this year. After successful completion of PoCs, we have now started engagement with two Tier 1 telcos in Europe and APAC. We have also started POC with a large Fintech player in India and are confident of showing good results soon. The second product in horizon 3 addresses digital identity management, and this product will be ready for launch in the first quarter of FY 20.
Subexians, our people continue to be the greatest asset to Subex. I am pleased to announce that we have added some exceptional talent during the course of this year. We brought a new COO, CFO and a Company Secretary. We also strengthened the domain and business consulting side by bringing heavyweights in the industry with over 20 years of hands-on experience. We now have a well-oiled team that is committed to drive the growth strategy. We have also executed the first phase of ESOP allocation and have all key Subexians covered.
So, what does the future hold for us? Based on the market reaction and general feedback, our growth strategy seems to be right and on mark. Our focus going forward will be on execution of this growth strategy. There are three key global trends that we are tracking and intent to leverage for our growth. The first is increasing importance of Digital Trust,;
second, the onset of 5G and mobile-edge computing and finally digital identity becoming central to digital economy. With access to state-of-the-art technology and also the biggest bank of digital threat signature and extensive coverage, we believe we are well positioned in our pursuit of being the leader in Digital Trust. We intend to invest heavily to scale the coverage, both on the technology and market coverage factor to drive value not only to our customers but also to our associates and shareholders.
Finally, I want to place my deep appreciation to the Board who stood behind us and supported us in every step of this long and exciting journey in front of us. My thanks are also due to the Subexians, without whose commitment and zeal we will find it hard to accomplish the growth targets in front of us.
"A journey well begun is half done", goes the saying. We believe we are in that spot and I am confident that the remaining part of the journey will be one that we will cherish in the foreseeable future.
Vinod Kumar Padmanabhan
& Chief Executive Officer
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