Cinerad Communications Ltd Management Discussions

GTT Data Solutions Limited (formerly known as Cinerad Communications Limited) is a provider of consulting, technology, outsourcing and next-generation digital services, enabling clients to create and execute strategies for their digital transformation and AI journey.

Our purpose is to amplify human potential and create the next opportunity for people, business and communities. We are guided by our value system which motivates our attitudes and actions. Our core values are Client value, Leadership by example, Integrity and transparency, Fairness, and Excellence.

Industry structure and developments

The IT services, digital transformation, and training services industry is evolving rapidly with increasing demand for AI, cloud computing, cybersecurity, data analytics, automation, and upskilling initiatives. Businesses across sectors are accelerating their digital journeys post-COVID, with a strong focus on resilience, remote working capabilities, customer-centric innovation, and equipping their workforce with the skills required for emerging technologies.

India continues to be a key hub for global IT services, digital innovation, and talent development, supported by a robust talent pool, a growing ecosystem of training and skilling providers, and improving regulatory frameworks. However, macroeconomic uncertainties, geopolitical issues, and technology shifts are influencing client spending patterns, with organizations increasingly investing in both technology adoption and employee capability-building to stay competitive.

Enterprises are moving from experimentation to scaled deployment of AI ? especially domain-specific copilots, agentic automation, and retrieval-augmented applications ? driving demand for data engineering, model integration, and governance. Cloud modernization continues, but with a sharper focus on cost optimization and FinOps, private cloud or hybrid architectures for sensitive workloads, and platform engineering to boost developer productivity. Cybersecurity spending remains resilient, with identity, data protection, and secure-by-design AI models becoming board priorities. Talent models are shifting toward AI + human collaboration, where workforce upskilling and change management are as critical as technology itself. In India, the digital public infrastructure (DPI) stack, growing startup ecosystem, and tier-2/3 talent pools are catalyzing IT services growth and distributed delivery footprints.

GTTs operating model: Dual Intelligence (AI + HI)

We are pioneering Dual Intelligence?the deliberate combination of Artificial Intelligence (AI) with Human Intelligence (HI) across two synergistic divisions:

1. AI Solutions & Digital Engineering (AI division) - Consulting & digital transformation, data engineering, analytics, enterprise AI, DevOps/ITSM, ERP/CRM, and managed/outsourcing services. Solutions focus on orchestrating data, integrating AI models and copilots, building RAG/agentic workflows, and embedding AI safely and responsibly into business processes.

2. Human Intelligence - Training & Workforce Development (Hi division) - Programs that ready organizations for AI-era work: AI model development and data science skills; cloud, software dev/test; ERP (with a strategic emphasis on SAP); human-digital collaboration, leadership for the AI era, culture change, and dual-intelligence-ready talent initiatives.

This approach ensures that every AI deployment is matched with the human capabilities needed to realize outcomes?technology + talent, together.

Strategic initiative: GAIN ? GTT AI Accelerator Network

Through GAIN (GTT AI Accelerator Network), we partner with a curated network of AI startups. For client use-cases, we introduce the most relevant partner solutions?licensing or reselling proven products rather than reinventing the wheel?and co-deliver outcomes with our consulting and integration expertise. Priority focus areas include advanced AI applications, automation/agentic systems, healthcare & life sciences AI, infrastructure/tooling, and vision technologies. GAIN also provides mentorship, joint go-to-market, and access to funding/enterprise pilots for emerging AI innovators.

Opportunities and Threats

Opportunities:

• Growing demand for AI/ML-enabled solutions and data-driven decision-making

• Expansion in cloud services, cybersecurity, and analytics

• Increasing outsourcing by global enterprises for cost optimization

• Government-led digital initiatives and startup ecosystem growth

• Rapid enterprise adoption of AI copilots and agentic automation, expanding demand for data pipelines, governance, and integration services

• Hybrid and private cloud growth for AI workloads; platform engineering and MLOps becoming mainstream

• Industry-specific accelerators (BFSI, healthcare, retail, manufacturing) to shorten time-to-value; coinnovation with startups via GAIN

• Tier-2/3 talent hubs and university partnerships to scale delivery cost-effectively while improving retention

Threats:

• Fierce rivalry from IT majors and niche digital firms driving pricing pressure

• Rising demand for AI/cloud skills increasing wage costs and attrition

• Data privacy laws, AI governance rules, US tariffs affecting IT exports

• Currency volatility affecting global revenues

Segment-wise performance

GTT Data operates primarily in the following segments:

• Consulting and Digital Transformation: During the year, the Consulting and AI-led Transformation segment witnessed strong traction, contributing a significant share of overall revenue.

• Outsourcing & Managed Services: Delivery remained reliable and stable, reinforcing client trust in managed operations.

• The Training & Workforce Development segment made notable progress, with growing interest in SAP and technology upskilling programs such as AI, Cloud from enterprise clients

Future Outlook

With digital transformation a boardroom imperative, GTT is positioned to help clients implement data-first, AI- enabled strategies while building the human capabilities to scale impact.

Our priorities:

• Deepen client relationships through co-innovation, outcome-based models, and referenceable case studies.

• Invest in AI R&D and industry accelerators, and expand GAIN partnerships to bring best-of-breed tools into client environments.

• Scale delivery footprint with a hub-and-spoke model leveraging tier-2/3 locations and Centers of Excellence, while continuing integration of recent acquisitions.

• Focus on profitable growth through utilization improvement, leveraging synergies across subsidiaries, and partner-led deal shaping.

• Expand SAP training services as a strategic extension of workforce upskilling offerings.

• Broader international market presence in sectors like BFSI, healthcare, manufacturing, retail, and technology services.

• Enhanced delivery capabilities through strategic hiring and geographic expansion.

We expect steady revenue growth with healthy margins, despite macroeconomic headwinds.

Risks and concerns:

• Talent acquisition and retention amid high demand for digital skills

• Cybersecurity risks due to increasing digital exposure

• Client budget cuts or delays in decision-making in a slow economy

• Dependency on key clients or geographies

• Compliance and regulatory risks, especially in international markets

The company maintains a proactive risk management framework to mitigate these concerns.

Internal control systems and their adequacy

The company has an established internal control framework that ensures the reliability of financial reporting, compliance with laws and regulations, and effective operations. Internal audits are conducted regularly, and corrective actions are implemented promptly. The Audit Committee and Board of Directors review the adequacy and effectiveness of internal controls periodically.

• Key Financial Ratios (Standalone Basis)

Ratio	Numerator	Denominator	March 31, 2025	March 31, 2024	% variance	Reason for variance
Current ratio	Current assets	Current liabilities	0.20	42.22	-99.5%	Refer Reason 1
Debt- Equity Ratio	Total Debt (refer note 1 below)	Shareholders Equity	0.62	0.00	100%	Refer Reason 2
Debt Service Coverage ratio	Earnings for debt service =Net profit after taxes + Non cash operating expenses (refer note 2 below)	Debt service (refer note 3 below)	-0.31	0.00	100%	Refer Reason 3
Return on Equity ratio	Net Profits after taxes - Preference Dividend	Average Shareholders Equity	-0.29	-0.02	1631%	Refer Reason 4
Inventory Turnover ratio	Cost of goods sold	Average Inventory	NA	NA	NA	Not applicable
						for the business.
Trade Receivable Turnover Ratio	Net credit sales = Gross credit sales - sales return (refer note 4 below)	Average Trade Receivable	26.41	0.00	100%	Refer Reason 5
Trade Payable Turnover Ratio	Net credit purchases = Gross credit purchases - purchase Return	Average Trade Payables	15.72	0.00	100%	Refer Reason 6
Net Capital Turnover Ratio	Net sales = Total sales - sales Return	Working capital = Current assets - Current liabilities	-0.76	0.03	2525%	Refer Reason 7
Net Profit ratio	Net Profit	Net sales = Total sales - sales return	-1.98	-4.01	-81.11%	Refer Reason 8
Return on Capital Employed	Earnings before interest and taxes (refer note 5 below)	Capital Employed (refer note 6 below)	-0.13	-0.01	965.35	Refer Reason 9
Return on Investment	Interest (Finance Income)	Average Investment

Notes:

1. Total debts consists of borrowings and lease liabilities.

2. Earning available for debt services=profit for the year + depreciation, amortization and impairment + finance cost + provision for doubtful debts + share based payment to employees + non cash charges.

3. Debt service = Interest + payment for lease liabilities + principal repayments.

4. Credit sales = Total Revenue + opening contract assets - closing contract assets - opening deferred revenue + closing deferred revenue.

5. Earnings before interest and taxes = profit before tax + finance cost - other income

6. Capital Employed = Average tangible net worth + Total debt + Deferred tax.

7. Average is calculated on the basis of opening and closing balances.

Reasons:

1. The variance is primarily due to a significant increase in current liabilities, driven by recognition of shortterm lease liabilities under Ind AS 116, increased short-term borrowings, higher trade payables, outstanding statutory dues, and customer advances.

2. The debt-equity ratio for the current year is 0.62, whereas it was not applicable in the previous year due to the absence of debt. The variance is due to the introduction of external debt in the current year through new borrowings taken to support business expansion and working capital requirements.

3. The DSCR (Debt Service Coverage Ratio) for the current year is -0.31, while no ratio was reported in the previous year due to the absence of debt. The variance is due to the introduction of new borrowings in the current year, leading to interest and principal repayment obligations, while operating cash flows were insufficient to meet these commitments.

4. The variance is due to a substantial increase in net loss during the year and a simultaneous rise in shareholders funds, which together led to a deeper negative return on equity.

5. The variance is due to the introduction of credit sales in the current year, resulting in the recognition of trade receivables and the emergence of the Trade Receivables Turnover Ratio.

6. The variance is on account of trade payables being Nil in the previous year. In the current year, normal credit balances with vendors exist, resulting in a meaningful ratio.

7. The variance is due to a significant increase in current liabilities?primarily from lease liabilities, shortterm borrowings, and customer advances?exceeding the growth in current assets, resulting in negative net working capital.

8. The variance is due to higher revenue and reduced expenses, resulting in a lower net loss margin compared to the previous year.

9. The variance is due to an increase in net loss during the current year, which led to a more negative ratio compared to the previous year.

• Discussion on financial performance with respect to operational performance.

During the year, GTT Data achieved steady revenue growth driven by increased demand for consulting and digital transformation services. Operational efficiencies, cost optimization, and better resource utilization contributed to maintaining healthy operating margins.

Despite rising input costs and global uncertainty, the company maintained a strong financial position with a robust pipeline and strategic client wins.

• Cautionary Statement

Statements in this Management Discussion & Analysis Report and Report of the Directors to the Shareholders describing in the companys objective, projections, estimates and expectations may constitute "Forward looking statement" within the meaning of applicable laws & regulations. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements.

For & on behalf of the Board of Directors

GTT Data Solutions Limited

(Formerly known as Cinerad Communication Limited)

Pankaj Ramesh Samani	Kaushal Uttam Shah
DIN: 06799990	DIN: 02175130
Managing Director	Director
Date: August 14, 2025
Place: Pune