Amarnath Securities Ltd Management Discussions

This Management Discussion and Analysis report aims to provide stakeholders with an overview of the companys financial performance, operational achievements, and strategic outlook for the fiscal year ended March 31, 2025.

The Indian financial sector continues its dynamic evolution, underpinned by robust regulatory frameworks and a diverse range of service providers, including commercial banks, non-banking financial companies (NBFCs), and digital payment entities. The sector, predominantly led by commercial banks, is a key driver of economic growth. The Government of India and the Reserve Bank of India (RBI) have continued their proactive stance in introducing reforms to foster financial inclusion and stability, particularly for the Micro, Small, and Medium Enterprises (MSMEs) sector.

For the fiscal year 2024-25, the RBI maintained a stable monetary policy, keeping the repo rate at 6.5% to ensure macroeconomic stability and manage inflationary pressures. Despite this, the industry demonstrated resilient credit growth of approximately 7.8%, driven by a broad-based economic recovery and increased private consumption. The NBFC sector continued its robust growth trajectory, with its year-on-year growth rate increasing to 19% as of March 2025. This growth was primarily fueled by strong consumer demand and a strategic focus on underserved segments of the market.

The companys financial performance for the fiscal year 2024-25 reflects a successful period of consolidation and strategic planning. The total income from operations stood at Rs. 7.808 Lakh. The Profit after Tax (PAT) for the year was Rs. 5.682 lakh. The Board maintained tight budgetary controls across all operational fronts and judiciously deployed funds.

The company maintains a comprehensive and adequate internal control system commensurate with the nature and scale of its operations. The Directors are directly involved in overseeing the day-to-day affairs to ensure strict adherence to all internal guidelines, policies, and management instructions. Regular internal audits are conducted and their reports are meticulously reviewed by the management to ensure the continuous improvement of the control framework and operational efficiency.

As the companys business activities do not involve manufacturing or industrial processes, matters related to the emission of harmful gases or liquid effluents are not applicable. The company is committed to upholding ethical business practices and is evaluating its approach to broader Environmental, Social, and Governance (ESG) principles as part of its new strategic direction.

Statements in this report, particularly those relating to the companys plans and expectations, may be considered "forward-looking" within the meaning of applicable securities laws. These statements are based on certain assumptions and expectations of future events and performance. Actual results, performance, or achievements could differ materially from those expressed or implied due to various factors, including changes in global and domestic economic conditions, regulatory changes, and other factors. The company does not undertake any obligation to update these forward-looking statements.