Anlon Technology Solutions Ltd Management Discussions

Management Discussion and Analysis Report

Industry Structure and Developments:

The Company operates in a highly specialized domain, in collaboration with globally renowned Original Equipment Manufacturers (OEMs). Our partnerships span a broad range of mission-critical equipment, systems, and digital technologies, including:

Mobile firefighting and rescue vehicles

Runway rubber removal machines

Airport baggage and cargo handling systems

Runway and road sweeping equipment

Power transmission systems

Friction testing machines

Climate control systems for on- and off-highway vehicles (including construction and mining equipment)

Disabled aircraft recovery kits

Line laser marking machines

Firefighting digital training simulators

Grass cut-and-collection equipment

Fire blankets

Experiential and Digital Solutions

With over 18 years of experience, the Company has earned a strong reputation for spare parts distribution and after-sales service for equipment supplied by its international partners. We have built long-standing relationships with major airports across India including Delhi, Mumbai, Hyderabad, Bangalore, and Chennai as well as with leading refineries, municipal corporations, and other critical infrastructure sectors. These relationships are primarily supported through long-term Annual Maintenance Contracts (AMCs).

*Commencement of Full-Scale Manufacturing and Assembly Operations *In FY 2024 25, the Company achieved a significant milestone by commencing full-scale manufacturing and assembly operations at its newly established facility. This expansion complements our existing engineering services and marks a pivotal step in our journey toward delivering integrated, end-to-end solutions.

The facility is engaged in the production and assembly of a diverse range of specialized equipment, including:

Runway Rubber Removal Machines

Rapid Intervention Vehicles (RIVs)

Fire-related Trailers and Trolleys

Mechanical Runway Sweeping Machines

Turntable Ladders

Refurbishment of Crash Fire Tenders

Refurbishment of Runway Rubber Removal Machines

Commercial Sweeping Machines

These products are supplied to a wide range of sectors, including:

Airports

Municipalities

Refinaries

Automotive manufacturing companies

Other Highend infrastructure companies

This development reflects our strategic focus on technology absorption, operational excellence, and expanding our capabilities to meet the evolving needs of critical infrastructure and industrial clients.

Opportunities and Strengths

The Companys key strength lies in its enduring partnerships with international OEMs who command up to 80% of global market share in their respective industries. Building on this foundation, we have begun the localized manufacturing and assembly of select high-performance equipment at our new facility in Doddaballapur, Bangalore.

A notable achievement during the year was the successful delivery and commissioning of a Runway Rubber and Paint Removal Machine at Yumna International Airport Private Limited, under our in-house CleAnJet brand. This accomplishment highlights our growing capability to produce globally benchmarked equipment from within India.

Our manufacturing efforts are strongly aligned with the Government of Indias Make in India initiative, which encourages domestic production and technological self-reliance. With our portfolio well-suited to this vision, we expect increased access to local opportunities, policy incentives, and competitive advantages in the Indian and regional markets.

Segment-wise or Product-wise Performance

The Company operates in the following key business segments:

Manufacturing and Assembly: Production of engineering systems and components for specialized applications in aviation, petroleum, infrastructure, municipal services, and allied sectors.

Engineering Services: Installation, commissioning, maintenance, and technical support for machinery and systems supplied by our OEM partners.

Spare Parts Distribution: Supply of essential spare parts and consumables to ensure uninterrupted operation and maintenance.

Client Liaison and After-Sales Management: Acting as a bridge between clients and OEMs for equipment procurement, installation, and ongoing support an integral part of our end-to-end engineering service model.

Outlook

The Company remains committed to delivering world-class engineering solutions and services in an increasingly competitive and dynamic market. Our technical personnel including engineers and technicians receive continuous training and certification from our global OEM partners. Regular updates on new product lines and technological developments ensure that our service quality remains at par with international standards. Select employees also participate in overseas training programs for advanced system knowledge.

With the successful start of in-house manufacturing and expanded service capabilities, we are well-positioned to tap into emerging opportunities across government and private sectors. Continued investment in talent, infrastructure, and process optimization will further strengthen our market leadership and long-term profitability.

Risks and Concerns

The Companys operations are highly dependent on the expertise, leadership, and continuity of its senior management and skilled technical workforce. The departure of key personnel or challenges in attracting qualified professionals could adversely affect operations and strategic implementation. Our after-sales teams handle complex, high-powered systems under mission-critical environments. These services are delivered in strict accordance with OEM standards to ensure reliability and safety. Employees undergo frequent skill enhancement programs, and select staff are sent for international training to stay abreast of the latest technologies.

To mitigate attrition and talent-related risks, the Company offers competitive remuneration, structured incentives, and career advancement opportunities. However, increasing competition for skilled professionals, changing industry trends, and economic uncertainties present ongoing challenges. The Company regularly reviews its retention strategies to address these issues effectively.

Additionally, any delay in the deployment or malfunction of Airport Rescue and Fire Fighting (ARFF) vehicles especially in emergency situations could have serious implications, including potential injury to passengers and impact on safety standards. While our ARFF vehicles, manufactured by Rosenbauer International AG, are maintained to the highest standards, any delay or failure, even if outside our control, may affect our reputation and future business.

External Risks and Market Dependencies

Revenue from airport-related operations may fluctuate due to factors beyond the Companys control. These include:

Reduction in flight operations

Fuel price volatility

Currency exchange fluctuations

Geopolitical instability

Labor strikes and conflicts

Health crises or pandemics

Natural disasters and extreme weather

Regulatory changes and alternative transport developments

Financial difficulties faced by key clients or airports

Such events may impact the Companys aeronautical and service revenues, leading to unpredictability in income and profitability. There is no assurance that these risks can be fully mitigated.

Technology Risks

To maintain its competitive edge, the Company prioritizes alignment with global safety norms and technological advancement. However, infrastructure and engineering technologies evolve rapidly. There is a risk that current systems may become outdated, requiring substantial capital expenditure to upgrade or adopt new technologies.

Furthermore, reliance on information technology systems brings exposure to potential vulnerabilities, including:

Power outages

Cybersecurity threats

System failures or data breaches

Such events, if not properly addressed, could disrupt operations and affect client confidence. The Company continues to invest in robust IT systems, cybersecurity infrastructure, and business continuity planning.

Internal Control Systems and their Adequacy

The Company has established adequate internal controls and risk management systems to safeguard its assets and ensure the accuracy and reliability of financial reporting. Regular internal audits are conducted to monitor compliance and operational effectiveness. The Audit Committee reviews the internal control framework periodically and takes appropriate action to strengthen the same when necessary. These systems are designed to provide reasonable assurance in achieving business objectives and compliance with applicable laws and regulations.

Discussion on financial performance with respect to operational performance:

The revenue from operations for FY 2024-25 is Rs. 5023.30 Lakhs over the previous years revenue from operations of Rs. 3502.07 Lakhs which is 43.44% more than previous years revenue from operations.

Net Profit after tax for FY 2024-25 is Rs. 649.01 Lakhs against the previous years Net profit after tax of Rs. 451.76 Lakhs which is 43.66 % more than previous years Net Profit after tax.

Earnings per Share for FY 2024-25 were Rs. 10.56 against the previous years Earnings per Share of Rs. 8.06.

The company will provide better results to the shareholders in upcoming years via better performance.

Material developments in human resources / industrial relations front, including number of people employed:

The Company firmly believes that motivated and empowered employees are the cornerstone of competitive advantage.

The companys employee value proposition is based on strong focus on employee development, providing a satisfying work environment, performance appraisal and counseling and appropriate empowerment. The company continues to maintain and enjoy a cordial relationship with its employees, providing a positive environment to improve efficiency with regular investments in upgrading the knowledge skills of the employees.

The number permanent employees on the roles of the Company as on 31st March 2025 is 146 employees and an average year on year growth of 20.66%.

Details of significant changes in key financial ratios:

Ratio	Current Period	Previous Period	Variance in %	Reason for variance by more than 25%
Current Ratio	2.84	2.53	12.25%	NA
Debt-Equity Ratio	0.13	0.12	8.55%	NA
Debt service coverage ratio	1.17	1.73	(32.37)%	Due to increase in borrowings as compared to previous year, as company availed new Overdraft facility from kotak mahindra bank limited for Rs. 2.90 crore.
Return in equity ratio	14.65%	16.41%	(10.73)%	NA
Inventory turnover ratio	2.13	5.76	(63.02)%	Due to increase in average inventory balance, we can see decrease in ratio in times , as most of the inventory lies under production process (WIP) to meet delivery timelines
Debtors Turnover ratio	3.73	4.82	(22.61)%	NA
Trade payables turnover ratio	8.06	9.15	(11.91)%	NA
Net capital turnover ratio	1.71	1.88	(9.04)%	NA
Net profit ratio	12.92%	12.90%	.16%	NA
Return on capital employed	13.88%	19.67%	(29.44%)	Due to the increase in capital employed where company has availed new Overdraft facility from kotak mahindra bank limited for Rs. 2.90 crore
Return on investment	NA	NA	NA	NA
Interest coverage Ratio	19.06	15.64	21.87%	NA
Operating Profit	19.31%	18.69%	3.32%	NA
Margin

Details of any change in return on net worth:

There is a decrease in return on net worth due to an increase in accumulated profits which has resulted in an increase in closing net worth.

Disclosure of accounting treatment:

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standard: our company has followed all required accounting standards also disclosed significant accounting policy. Financial statements include balance sheet, profit and loss, cash flow statements with schedules/Notes.

Cautionary statement:

The statements in the "Management Discussion and Analysis Report" section describes the company objectives, projections, estimates, expectations, and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

For Anlon Technology Solutions Limited

Sd/-	Sd/-
Mr. Unnikrishnan Nair P M	Mrs. Beena Unnikrishnan
Managing Director	Whole-time Director
DIN: 01825309	DIN: 07222504
Add: 5001, Prestige Apt,	Add: 5001, Prestige Apt,
Eternity Doddaballapur Road,	Eternity Doddaballapur Road,
Ananthpur Gate, Puttenahalli,	Ananthpur Gate, Puttenahalli,
Yelahanka, Bangalore North- 560064	Yelahanka, Bangalore North- 560064
Date : 23.07.2025
Place : Mumbai