The global economy showed remarkable resilience in 2023, with central banks tightening monetary policy to control inflation. Despite these challenges, employment and income growth remained steady, supported by favourable demand and supply dynamics. The global recovery from the Russia-Ukraine conflict, inflation, and the cost-of-living crisis has exceeded expectations, driven by pragmatic monetary policies, easing supply-side constraints, and business moderation.
However, the growth outlook for 2024 remains uncertain due to sluggish economic activity, tight financial conditions, geopolitical tensions, and social strains. Global growth is projected at 3.2% in 2024 and 3.3% in 2025, with inflationary pressures and rising interest rates posing ongoing risks.

In the technology sector, global spending grew at a slower pace of 4.4% year-over-year in 2023, with enterprise software and IT services driving growth. Digital transformation and infrastructure modernization remain key priorities, particularly in cloud computing and cybersecurity. As technological advancements like automation, AI, 5G, and IoT gain traction, new opportunities for the services industry are emerging.

Your company is well-positioned to capitalize on these opportunities, with a presence in over 35 countries and a vast, untapped addressable market. We continue to see increasing demand for our value-added services across digital infrastructure, driven by the growth of AI data, hybrid productivity needs, and ongoing cyber threats. Black Box’s offerings span five key areas: Connectivity Infrastructure, Data Center Solutions, Modern Workplace, Enterprise Networking, and Cybersecurity. Each of these areas offers tremendous growth opportunities as the world moves forward steadily and surely towards further digitization, automation and connectivity.

To respond to these industry shifts, the management initiated a strategic transformation of the Global Solutions Integration (GSI) business earlier this year. This transformation focuses on developing a customer-centric go-to-market strategy, creating industry-specific solutions, and delivering exceptional service quality. We have reorganized our teams to align with industry-specific verticals and practice-led solutions, ensuring that our offerings are tailored to meet the unique needs of our customers.

For FY24, your company reported revenues of Rs. 6,282 crores, with EBITDA surpassing the Rs. 400 crore mark, growing by 59% year-over-year to Rs. 428 crores. The emphasis on cost rationalization and enhanced productivity has resulted in a 250 basis points increase in EBITDA margins to 6.8%. The team remains focused on further improving margins through better procurement, subcontractor management, facility optimization, and pricing strategies.

Strong operating performance has led to a 5.8 times year-over-year growth in profit after tax, despite higher interest costs. Your management is confident that the focus on profitability will continue to yield positive results in the future.

This success is a testament to the dedication of over 4,000 skilled professionals who serve more than 1,500 global customers, including 120 of the Fortune 500 companies.
Your Company remains committed to enhancing customer relationships and integrating Environmental, Social, and Governance (ESG) principles into its core strategies, recognizing the growing importance of ESG in driving sustainable growth and strengthening brand value.

As this is my final message as Chairman, I want to express my confidence in your Company’s future. I am proud of the achievements the team has achieved this far, and believe the Company is well-prepared to continue its path of growth and innovation. I am confident that the management team will continue to uphold our core values and remain accountable to all stakeholders as your Company scales to new heights.

I extend my thanks to our shareholders, employees and partners for their support during my tenure. I wish the team continued success as they drive your company forward into its next phase of growth.

Best Wishes,
Sujay R. Sheth
Chairman