This year has been challenging in terms of the global operating environment. Margins were impacted by unprecedented interest rate hikes across the globe as well as cost pressures and supply chain challenges. However, the earlier-than-expected opening of China has alleviated supply chain disruptions, especially in the technology sector, rekindling hopes for a moderate economic recovery.
According to projections from the International Monetary Fund (IMF), global growth is expected to reach its lowest point at 2.8% this year, before experiencing a modest rise to 3.0% in 2024. These projections reflect cautious optimism regarding the future trajectory of the world economy amidst a complex and evolving global landscape.
The amount of data being consumed globally is growing exponentially. This is fueled by four main factors. Firstly, as the Internet spreads deeper into under-served areas of the world, the demand for and use of data grows rapidly. Secondly, the demographics of the most populous regions of the world are creating technology natives who demand more data than ever imagined. Thirdly, the number of connected devices, whether phones, cars, signaling or security systems, home IoT devices, or simply computers - is growing at a pace that we have never seen before. Finally, the rate of refreshing technology installations and equipment to faster and more powerful networks and chipsets being produced is making things we saw in fiction movies being brought to reality now.
All of this also needs reliable information highways and networks, whether they are in the form of optic or other cables, WiFi, 5G, 6G, or LTE. It requires installation, refreshing, maintenance, and cybsersecurity services. It requires IoT devices, wiring, and connection. Your company does all of this.
Your company is well poised to participate in this multi-trillion-dollar opportunity that lies ahead. While the management has made great progress in consolidating operations and stabilizing margins through various measures, there is an enormous addressable market that is still untapped. Due to the unique position your company is in by being present in 35+ countries, I am confident that the management will ensure a large share of this market is captured, in every geography we are present in.
During the year, your company earned its second USD 100+ Million customer and serves most of the Fortune 500 companies globally while management strives to grow relationships with these prestigious customers.
This performance can be attributed to the tireless efforts of your company’s workforce, consisting of over 3,800+ skilled and talented professionals who serve our customers globally across 35+ countries. Their dedication has been instrumental in our success. This year again, your company has established a strong foundation of excellent customer connections and is committed to further enhancing these relationships.
Your company is actively investing in various areas to solidify its position for profitable growth and long-term value creation in the next phase of expansion. We continue our global investments in partnerships, white-space opportunities, forward-thinking work practices, efficient delivery methods, go-to-talent strategies, and mergers and acquisitions, among other areas. These strategic initiatives are designed to ensure that your company remains agile, adaptable, and well-positioned to capitalize on existing and emerging opportunities.
On the ESG front, at Black Box, the dedication to fostering a clean and healthy environment is unwavering. We prioritize offering our customers a service that is not only safe and reliable but also responsive to their needs, all the while maintaining a strong sense of environmental consciousness and responsibility. We firmly believe that implementing sound environmental policies not only enhances our competitive advantage but also brings benefits to our customers and team members. By actively contributing to the overall well-being and economic vitality of the communities we serve, your company strives to create a positive impact on the environment and ensure the sustainability of our operations.
In the coming years, Black Box will continue to have a sharp focus on fostering strong partnerships, embracing innovative approaches, and expanding our capabilities. We aim to not only meet the evolving needs of our customers but also create sustainable value for all stakeholders. Our unwavering focus on these key areas will pave the way for continued growth and success in the dynamic business landscape ahead.
I thank you for your continued support!
Best Wishes, Sujay R. Sheth
Message from the Whole-time Director
In the face of a challenging global economic landscape marred by interest and cost pressures, supply chain hurdles, geopolitical tensions, such as the Russia-Ukraine conflict, inflationary pressures, and a looming recession, it’s truly inspiring to witness the resilience of businesses as they deliver improved performances.
Our remarkable success in boosting our top line stands as a testament to the collective strength of our team. Their unwavering dedication to delivering unparalleled customer experiences, ability to implement innovative solutions, and exceptional service have not only fortified our customer relationships but also positioned us for continuous growth. This revenue surge is a direct result of a robust order book, highlighted by new wins and a larger share of our existing customers’ wallets.
The acquisition of Black Box Corporation has been nothing short of transformative, opening new avenues for us to serve our global customer base in a multitude of impactful ways. This strategic leap has expanded our capabilities and skill sets, culminating in a fortified portfolio of products, solutions, and services. The geographic breadth of our presence in over 35 countries has substantially bolstered our capacity to partner with clients and crafting, delivering, and overseeing their evolving digital infrastructure requirements.
Throughout our journey, your company has forged ahead as a trailblazer, laying the foundations for customer digital infrastructure and catalyzing business transformation. Over four decades, we’ve emerged as the dependable choice for IT solutions and services, reinforcing digital infrastructure, from networks to customer experiences, across continents and diverse cultures. Our unwavering focus spans Consulting, Design, Deployment, and the safeguarding of our customers’ IT and communication infrastructure, enabling businesses to fortify their core objectives of accelerating their businesses.
Harnessing our expertise, innovation, and customer-centric ethos, we stand in an advantageous position to cater to the burgeoning demands of enterprises in the domains of cybersecurity, cloud, and data center solutions. Noteworthy wins across our business areas, with a significant contribution from the data center segment, are a testament to our focused investments and position us favorably in a data center market projected for substantial growth, particularly within the hyperscale and cloud domains.
In the era of artificial intelligence (AI), we find ourselves at the cusp of a transformative movement. Recent strides in AI present the perfect opportunity to re-evaluate our utilization of AI in enhancing customer experiences. This recalibration seeks to strike the delicate balance between human interactions and digital interfaces. Our approach envisions equipping human agents with AI-driven tools to amplify productivity and decision-making, while ensuring the continuity of experience across interactions. Black Box’s judicious use of AI, spanning embedded chat, Visual IVR, Speech IVR, and more, strikes the optimal equilibrium for our customers.
During the fiscal year 2023, we encountered initial margin challenges amidst the global turmoil. Our endeavors in cost rationalization and enhanced productivity bore fruit, with margins exhibiting sequential improvement. Our unwavering commitment to enhancing operational profitability and margins remains steadfast. Crucial drivers for this performance enhancement encompass optimized customer operations, leveraging our Center of Excellence in India, refining procurement and subcontractor management, ensuring cost efficiency through the right shore strategy, facility optimization, ERP consolidation, and repricing contracts for improved yields.
The bottom line experienced a pinch due to escalated interest costs and severance payouts. As a ratio-centric entity, we undertook quick measures to rebalance our on-shore: off-shore metrics resulting in some severance costs. We anticipate normalization in our operating costs resulting in improved profitability going forward. Over the past couple of years, our concerted efforts have paved the way for a pivotal juncture in the company’s growth trajectory.
Our growth blueprint is characterized by a two-fold approach: organic and inorganic expansion. Organically, our investments are meticulously channeled into high-growth areas encompassing data centers, cloud offerings, and cybersecurity and IoT underscored by an elevated focus on cross-selling. The inorganic facet revolves around the careful selection of acquisitions that not only scale and bolster revenues but also seamlessly align with our existing business, extending our reach to new customers, diversifying geographic locations, and fortifying capabilities. The swift transformation and attainment of short-term synergies underpin the essence of our acquisition philosophy.
Our “GLOCAL” approach, encapsulated in the mantra of “Think Global, Act Local,” serves as our guiding star, preserving relationships by offering flexibility to customers and cost-effective delivery in the countries we operate. As an ICT solutions provider of global stature, Black Box is steadfast in driving sustainable and responsible business practices to ensure our operations are aligned with bolstering sustainability policies, practices, and reporting standards. We continue to focus on our diversity, equity, and inclusion targets within the workplace.
Adherence to environmental laws and regulations is the cornerstone of our commitment. It’s not just about compliance; it’s about embodying the ethos of these regulations to uphold the highest environmental standards within our organization.
Our zest to progress is underscored by our reimagined brand promise, a beacon guiding our path as we navigate diverse markets with agility and determination. Despite potential economic headwinds and macro-level challenges in the short term, we stand resolute, fortified by our robust foundations, poised to seize the multitude of opportunities that await us.
We extend our heartfelt gratitude for your unwavering support and guidance.
If you have any dispute against Black Box Limited and or its Registrar and Share Transfer Agent (RTA) on delay or default in processing your request, as per SEBI circular dated 30.05.2022, you can file for arbitration with Stock Exchange.
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