Ladies and Gentlemen,
It gives me a great pleasure to welcome you all to the 21st Annual General Meeting of Kale Consultants Limited. The Director’s report, Auditors report and audited accounts with notes thereon are with you for some time and request your kind permission to take them as read.
The global outlook for the airlines industry has some clearly defined trends as per the studies and reports by the bodies like IATA. First the airline industry’s profits would be stable and growing to US $ 5.1 Billion in the calendar year 2007. Second, increasing fuel prices puts an extra pressure on the demand for increasing efficiencies through use of technology in all the areas of operations and third the aviation industry expansion contributes to the overall increase in productivity and economic growth round the globe.
The same is also true for the Indian aviation industry which is considered to be one of the vibrant growth markets in the world. These trends provide some great opportunities and challenges to the industry.
Let me quickly dwell on the both the performance of the company for year under review as well as the preparations the company has made to meet the market expectations based on the trends outlined.
Significant operational highlights of the year under review are
- Revenue growth of 27% to Rs. 808 Million
- Profit before tax growth of 27% to Rs. 88 Million
- 15% growth in EPS
- CAGR of 87% for the annuity type of revenues. These results would have been even better but for the impact the strengthening Rupee.
The increase in the new contracts signed with the customers as well as the repeat business received from them reaffirms the belief that your company is closely aligning itself with the client needs and preparing for new needs based on the trends. This essentially means that the company should know the processes and requirements of the client business as much if not more than the client in house personnel. This puts heavy premium on domain knowledge as well as building platforms and technology required for the challenges faced by the industry. We have been preparing ourselves diligently towards this goal and results have already started manifesting in more than one ways.
Kale Consultants was chosen for prestigious NASSCOM IT innovation award amongst 3000+ companies in the field and is a great distinction to be honored by the IT industry body for the excellence in building innovative platform based BPO model for airline industry. This speaks volumes of the high esteem all the competitors and partners hold all our achievements on the global scale.
Our report speaks about the third generation of outsourcing wherein knowledge would be key and platform based outsourcing would transform the way the clients processes would be managed and significant value would be created both for the clients and ourselves. We have now positioned ourselves into a leadership position globally with over 62 airlines and travel customers round the globe.
To sum up the airline and travel industry now would need neither just a low cost provider nor just a resource provider, but would expect companies to provide leadership in ideas and actions to create the value through constant innovation. Those companies who can change some of the rules of the game and create value for the clients would be the preferred partners for the clients. This is where your company excels and is poised to take big strides.
I thank all of our stakeholders- Clients, Colleagues and Corporate stockholders, business partners, Bankers, RBI, NASSCOM, and various government authorities for the constant encouragement and support throughout the year. I also like to record the appreciation for the efforts of all the Kale’ites- for their total dedication and hard work. I am sure that with this continued support the company would see more recognition, awards, profitability, partnerships and growth in time to come.
Narendra H. Kale
Kale Consultants Limited