Clinitech Laboratory Ltd Management Discussions

Economy

Global Economic Review:

During the reporting year, the Emerging Market and Developing Economies (EMDE) grew by 4.3% in comparison to the advanced economies that grew by 1.8%. The growth in the global economy was further supported by a steady fall in the inflation level from 6.7% in CY 2023 to 5.8% in CY 2024. This was facilitated by timely interventions by the central governments across the globe and falling energy price levels.

The global economy is expected to grow at a slightly lower of 2.8% in CY 2025 and 3.0% in CY 2026. The global inflation level is expected to further decline to 4.2% in CY 2025 and 3.5% in2026 which will enhance growth and positively impact market sentiments. The recent escalation of US trade tariffs which have the global trade activity and disrupted the supply chain can potentially lower the global economic growth as well as the

Indias economic growth. The slowdown in major economies like China continue to pose threats and escalating tariff wars continue to pose threats, accommodative monetary and fiscal policies implemented by Central banks and Governments around the world are expected to create an atmosphere conducive to growth.

Indian Economic Review:

Amidst the volatile global economic landscape, the Indian economy exhibited a strong performance during the year under review. Indian economy, one of the fastest-growing economies in the world, is expected to grow by 6.5% in FY 2025. Inflation level dropped from 5.4% in FY 2024 to 4.9% in FY 2025, enhancing consumer confidence and spending, especially in rural areas. The rural consumption remained robust during the reporting year and the investment activities in India gained momentum. This growth in investment activities can be attributed to the transformation in the business environment led by the timely interventions by the Indian Government through relevant schemes and policies.

Additionally, in FY 2025, India attracted USD 55.6 billion in FDI, marking an increase from the previous fiscal year, which played a critical role in driving the growth and development of the economy. In the years ahead, the Indian economy is anticipated to experience positive growth, especially supported by strong investment activities and increased public expenditure by the Government of India. The revision in the income tax slabs is expected to augment disposable income and drive consumer spending.

Indian Diagnostic and healthcare service industry

The diagnostic laboratories serve as an integral component of the healthcare system. They play a crucial role in assisting the decision-making process regarding patients health. Through varied diagnostic tests and procedures, these laboratories assist healthcare providers to arrive at correct diagnoses.

Additionally, heightened demand for high-quality healthcare, augmented consumer awareness and progress in technology is further bolstering this transition in the industry. Digitisation, automation and AI-powered innovations are elevating the efficiency and accuracy of the Indian diagnostic industry. Further to this, the growth in the Indian diagnostic industry can be attributed to the growing geriatric population, increasing health awareness among individuals, advancement in diagnostic technologies and a changing lifestyle. Unhealthy lifestyle is elevating the incidence of chronic diseases, creating the need for regular diagnostic monitoring.

In addition to this, the growth of the diagnostic industry in India was driven by supportive policies and schemes introduced by the Indian Government, such as, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and the PM Ayushman Bharat Health Infrastructure Mission (ABHIM). Further to this, Ayushman Bharat Digital Mission enables the digital consultants to allow medical practitioners the access to patients records. This promotes digital health solutions of hospitals across the country, it making the healthcare serviceseasily accessible to the patients.

The diagnostic industry in India is known for its cost-effective services in comparison to the global diagnostic industry. Additionally, the rise in the number of medical institutes and research centres has further supported the growth of diagnostic services.

Opportunities:

Demographic:

Growing population is creating a large and expanding market for diagnostic services. In addition, the rising number of people aged over 40, who are more likely to avail diagnostics services, is increasing the need for regular health checks and disease management.

Rising disposable incomes:

Rising disposable incomes are leading people to focus more on their health and spend on better quality healthcare services, including reliable diagnostic testing. This trend is also supported by growing awareness of how important accurate and timely diagnostics are for better health outcomes.

Medical infrastructure:

The growing medical infrastructure in Tier II towns, with more hospitals and clinics coming up, is increasing the demand for a wider range of diagnostic services, including specialised tests.

Health-consciousness:

Heightened health-consciousness will drive the need for diagnostic services and advanced healthcare solutions, thereby offering growth opportunities for us.

Preventive healthcare:

There is a rising focus on preventive healthcare as people become more aware of the importance of staying healthy before illness strikes. This has led to a growing demand for preventive checkups and wellness packages.

Threats:

Pricing Control:

The imposition of pricing caps on routine diagnostic tests by regulatory bodies could put pressure on the revenue and profitability of our company.

Government initiative for public health:

Government offering free diagnostic services at public health facilities presents a potential threat to private diagnostic players.

Rising Competition:

Rising competition in the healthcare service sector and the diagnostic market by startups and low-cost providers could put pressure on the revenue and profitability. Therefore, the customer base may fluctuate and exhibit variability.

Changes In Key Financial Ratios:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

Sr. No. Key Financial Ratio	FY 2024-25	FY 2023-24
1. Debtors Turnover Ratio	7.69	10.67
2. Inventory Turnover Ratio	20.32	30.48
3. Interest Coverage Ratio	19.22	11.21
4. Current Ratio	4.41	1.73
5. Debt Equity Ratio	-	0.25
6. Operation Profit Margin	61.01	63.54
7. Net Profit Margin	4.86	5.94
8. Change in Return on Net Worth	6.46	12.58

*Previous years Figures have been regrouped / rearranged wherever necessary

Risks and concerns:

CLINITECH LABORATORY LIMITED ANNUAL REPORT 2024-25

The nature and the magnitude of the risks associated with the Company are reviewed and placed before the Board periodically. Various measures for modernization have been introduced to reduce the dependency of labour, which also ensures optimum capacity utilization & quality outputs.

Health, safety and Security Environment:

Our Company has always been adopting all possible safety measures concerning the health and safety of the Workers and staffs at all levels. This has improved the morale among the workers and staffs and the working environment at large. We believe in maintaining the highest ethical standards to strive towards better health for patients worldwide through leading innovation in diagnostic tests and related services.

Human Resources/Industrial Relations:

Employer-Employee relations continued to remain cordial during the year at all the units of the Company. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels.

Cautionary Statement:

Statement in this Management Discussion and Analysis Report, Describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.

	For & on behalf of the Board of Directors of
	Clinitech Laboratory Limited
	(formerly known as Clinitech Laboratory Private Limited)
	Sd/-	Sd/-
	Jagdish Umakant Nayak	Jyoti Jagdish Nayak
	Managing Director	Whole-time Director
	DIN: 00646672	DIN: 02945625
Place: Navi Mumbai
Date: August 19, 2025