Cressanda Railway Solutions Ltd Management Discussions

GLOBAL ECONOMIC GROWTH

The global economy entered 2024 with optimism, but persistent inflation and currency pressures tempered expectations, especially in developing markets. While the US remained resilient, other advanced economies lagged. In 2025, modest growth is anticipated, shaped by policy shifts following global elections. The IMF projects global GDP growth at 3.3% in both 2025 and 2026, with inflation easing to 4.2% in 2025 and 3.5% in 2026, reaching targets sooner in advanced economies than in emerging markets.

Global inflation is projected to ease from 4.5% in 2024 to 3.5% in 2025, though still above pre-pandemic levels. Advanced economies are expected to manage inflation more effectively than emerging markets, but factors like wage pressures, protectionism, and geopolitical tensions could create uneven outcomes.

The U.S. economy remains strong, with 2025 growth revised upward to 2.7% due to resilient consumer demand, a robust job market, and favorable financial conditions. Growth is expected to moderate by 2026. In contrast, the euro area faces slower recovery, with 2025 growth revised down to 1.0% amid geopolitical tensions and weak manufacturing, though it may rise to 1.4% by 2026 as conditions improve. Emerging markets are expected to maintain stable growth. Chinas 2025 outlook is slightly upgraded to 4.6% due to fiscal support, while India is set to grow steadily at 6.5% through 2025 and 2026, in line with long-term trends.

Regional prospects vary: the Middle East and Central Asia face tempered growth due to oil production cuts, Latin America will see modest improvement, sub-Saharan Africa is set for stronger growth, and emerging Europe may experience a slowdown.

Outlook

According to the IMF, factoring in recent market trends and the impact of rising trade policy uncertainty, the uncertainty surrounding the global economy is expected to persist throughout 2025. However, potential policy changes are still being discussed.

In 2025, energy commodity prices are expected to decline by 2.6%, largely due to weaker oil demand from China and increased supply from non-OPEC+ countries (which includes Russia), though rising gas prices – caused by colder weather, supply disruptions, and ongoing conflicts in the Middle East – partly offset the decline.

Meanwhile, non-fuel commodity prices are projected to rise by 2.5%, mainly driven by higher food and beverage costs due to adverse weather affecting major producers. On the monetary front, major central banks are expected to continue lowering interest rates, though at different speeds, depending on their respective economic growth and inflation outlooks. Fiscal policies in advanced economies, including the U.S., are expected to tighten in 2025–26, with a lesser degree of tightening in emerging and developing markets.

INDIAN ECONOMY OVERVIEW

Even in FY25, the Indian economy continued to emerge as of the fastest growing economies in the world, but at a sluggish pace compared to the previous years. Slower growth in the first half of the fiscal (6%) led the RBI to bring down the annual projection to 6.6% (down from an earlier projection of 7%). However, according to the first advance estimates, Indias real GDP is expected to grow at 6.4% in FY25.

Some of the key factors which helped drive the growth of the Indian economy include, rural consumption has remained robust, supported by strong agricultural performance, while the services sector continues to be a key driver of growth. Manufacturing exports, particularly in high-value-added components (such as electronics, semiconductors, and pharmaceuticals), have displayed strength, underscoring Indias growing role in global value chains.

Indias current account deficit (CAD) stood at $11.5 billion (1.1% of GDP) in Q3 FY25, unchanged as a percentage of GDP but down from $16.7 billion in Q2. A surplus of $4–6 billion is expected in Q4, supported by stronger exports and services. For FY25, CAD is projected at around 0.8% of GDP. Foreign exchange reserves reached a five-month high of $676.3 billion as of April 4, 2025, making India the fourth-largest holder globally. This growth highlights the countrys economic resilience and provides a strong bu_er against global volatility.

Indias real GVA is projected to grow by 6.4% in FY25, driven by agriculture (3.8%), industry (6.2%), and services (7.2%). However, manufacturing exports remain under pressure due to weak global demand and protectionist trade policies.

The IMF revised Indias GDP growth forecast for FY25 to 6.5% (down 0.5 pp), citing a sharp 12.3% contraction in government capex, which has slowed investment growth. Still, net exports are expected to contribute positively due to lower crude prices. Net direct tax collections grew 13.57% to _22.26 lakh crore in FY25, surpassing budget estimates and maintaining strong tax buoyancy at 1.57, reflecting sustained economic momentum.

Indian MSME sector

The MSME sector is a backbone of Indias economy, driving manufacturing, exports, and employment, particularly in semi-urban and rural regions. With 5.93 crore registered units employing over 25 crore people, MSMEs contribute nearly half of Indias exports and play a pivotal role in fostering innovation and inclusive growth. Exports from MSMEs have risen sharply, from _3.95 lakh crore in 2020-21 to _12.39 lakh crore in 2024-25, while the number of exporting units has more than tripled to 1.73 lakh in the same period. Their growing share in Indias exports, now at 45.79%, highlights their increasing global integration and the governments focus on enhancing competitiveness, innovation, and resource access to strengthen their role as engines of economic progress.

Key Budget takeaways for the Indian MSME Sector

The government has introduced several measures to boost MSMEs and startups. Classification thresholds have been revised upward (investment by 2.5x and turnover by 2x) to widen growth opportunities. Credit support has been enhanced with guarantee cover doubled, _10 crore for MSMEs and _20 crore for startups, unlocking _1.5 lakh crore in additional credit, alongside reduced fees in priority sectors. A new Credit Card facility will extend _5 lakh credit to micro enterprises, with 10 lakh cards to be issued in the first year.

Startups and first-time entrepreneurs will benefit from a proposed _10,000 crore Fund of Funds and targeted term loans of up to _2 crore for 5 lakh women, SC, and ST entrepreneurs, fostering inclusivity and innovation. Sector-specific initiatives include support for footwear, leather, toys, and food processing, expected to generate jobs, boost turnover, and establish India as a global hub. Additionally, a National Manufacturing Mission under Make in India will provide policy roadmaps, with a strong push for clean tech manufacturing in solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.

Outlook

Looking ahead, India is expected to maintain its potential real GDP growth of 6.5% YoY from FY26 to FY28, positioning itself as the worlds third-largest consumer market by 2026 and the third-largest economy by 2027, trailing only the United States and China. The countrys nominal GDP is projected to rise from USD 4 trillion in FY25E to over USD 6 trillion by FY30. Indias growth momentum is expected to be driven by a resilient manufacturing sector, stable inflation levels, supportive tax policies, and robust urban consumption. Ongoing infrastructure development and structural economic reforms further strengthen the countrys capacity to weather global uncertainties. However, key challenges remain, including the need to generate meaningful employment for a growing workforce, navigate a more challenging global trade landscape, and manage the implications of automation on jobs.

INDIAN MEDIA & ENTERTAINMENT INDUSTRY

Indias Media & Entertainment (M&E) sector crossed a significant milestone in CY 2024, touching _2,502 billion and registering a 3.3% year-on-year growth. Although this pace was more measured compared to the robust 8.3% growth seen in CY 2023, it marked a complete recovery to pre-pandemic levels. The upturn was powered largely by an 8.1% rise in advertising revenues, with digital platforms continuing to drive the momentum.

For the first time, Digital media surpassed Television to emerge as the largest segment in the Media & Entertainment (M&E) industry. While its pace of growth slowed slightly this year, Digitals clear dominance highlights the evolving preferences of consumers and the deepening adoption of digital platforms across the country.

In contrast, traditional segments, Television, Print, and Radio, continued to grapple with structural headwinds, most notably in subscription revenues. Print remained under pressure, with subdued subscription growth and an overall muted performance. However, premium advertising formats displayed resilience, driven by creative print-led campaigns and a boost from marquee events. At the same time, rising cover prices weighed on subscription volumes in some markets.

Radio stood out as an exception among traditional media, recording positive growth. Increased advertising volumes and a conscious push into alternate revenue streams supported this momentum. The growing popularity of Indias live events and concert ecosystem also added to its strength, with Non-Free Commercial Time (NFCT) contributing nearly a fifth of the segments revenues. Still, the industry has yet to reclaim its pre-pandemic revenue highs.

Overall, even as traditional media weakened, particularly with Televisions decline, the M&E sector managed to post moderate growth, underpinned by the steady rise of Digital and the growing appeal of newer, experiential formats. OTT platforms and digital advertising are driving growth, even as traditional segments face challenges. With advertising contributing over half of sector revenues, the industry is undergoing a technology-led transformation, expanding its global presence. Rising ad volumes, evolving consumer preferences, and demand for diverse content continue to fuel momentum, reinforcing the sectors role as both a cultural force and an economic growth driver for India.

Indian Advertising Industry

The Indian advertising industry has grown to an impressive _908.6 billion in 2024, reflecting its pivotal role in shaping consumer engagement. Industry experts project this momentum to continue, with the market expected to more than double and touch _2.11 trillion by 2033, driven by a robust CAGR of 9.37%. This growth is fuelled by brands increasingly investing in advertising to strengthen their presence, the expansion of diverse media and entertainment platforms, and the surging demand for innovative digital advertising solutions.

Digital Media

In 2024, digital media became the largest segment of Indias Media & Entertainment (M&E) sector, surpassing television with revenues of _802 billion and a 32% market share, growing 17% year-on-year. Search and social platforms led with 61% of digital revenues, supported by e-commerce integration and premium content. Indias 1.1 trillion hours of digital engagement underscored the vast monetization potential of ad-supported content and mobile-native formats. Regional language content drove 48% of OTT production, expanding reach and engagement, while digital news reached 463 million people, nearly one-third of the population, fuelled by Hindi, regional, and hyper-local coverage.

Looking forward, digital media is set to emerge as the first segment in Indias media and entertainment sector to cross the _1 trillion mark, with revenues expected to reach _1.1 trillion by 2027, growing at an impressive 11% CAGR. This growth is being fueled by the widespread adoption of connected TVs, the rapid increase in smartphone usage, and more affordable broadband access, cementing digital medias role at the very core of Indias dynamic and evolving content ecosystem.

Digital Advertising

In CY 2024, Indias digital advertising landscape demonstrated robust growth, expanding by 17% to reach _700 billion. This surge was driven by brands across sectors increasingly shifting larger portions of their marketing budgets to digital channels. A standout contributor to this momentum was the growing participation of small and medium enterprises (SMEs) and long-tail advertisers, who together accounted for _258 billion of digital ad spend. Their campaigns were predominantly performance-oriented, focusing on search, social media, and e-commerce platforms, with a sharp eye on ROI and measurable outcomes.

A notable structural shift came from e-commerce platforms, whose share of digital advertising climbed to INR 147 billion, or 21% of total spend, up from 16% in CY 2023. This underscores brands rising reliance on online retail ecosystems to acquire and engage consumers. Even excluding this e-commerce-driven growth, the broader digital media segment posted solid gains, highlighting resilient demand across channels.

Search and social media platforms continued to dominate, together capturing 69% of total digital ad revenues. At the same time, the ecosystem evolved with greater sophistication, embracing innovative formats such as quizzes, polls, gami_ed trials, contests, and hyper-local offers. Performance marketing remained at the forefront, while customization emerged as a defining trend. Advertisers increasingly leveraged multi-language creatives and context-aware formats tailored to the content being consumed. Artificial intelligence played a transformative role, enabling granular personalization at scale, across geography, audience segments, and individual user preferences. These advances not only boosted user engagement but also enhanced campaign efficiency and conversion rates.

Looking ahead, Indias digital advertising market is projected to grow at an 11% CAGR, reaching _957 billion by CY 2027E. Contributions from SMEs and long-tail advertisers are expected to rise to _369 billion, supported by a growing base of 1.5 million digital advertisers, platforms like ONDC facilitating access to national markets, improved credit guarantees outlined in the FY 2025-26 Union Budget, and targeted government incentives for MSMEs.

Innovation, hyper-personalization, and regional expansion will continue to shape the sectors trajectory, solidifying digital advertising as a performance-driven, data-led cornerstone of modern marketing in India.

COMPANY OVERVIEW

Cressanda Railway Solutions Limited (CRSL), Indias first listed company offering Railway Auxiliary Services, has been pioneering digital media innovations since 1985. Over four decades, CRSL has delivered consistent growth and value to shareholders, partners, and stakeholders.

As an end-to-end Rail Media powerhouse, CRSL integrates cutting-edge technology to enhance passenger experiences and media outreach. Key highlights include:

Eastern Railway Contract: Exclusive five-year rights (extendable by five years) for Transit Display Advertising, Railway Concierge Services, onboard Wi-Fi, entertainment, and FMCG sales across 18 zones. CRSL is also developing Indias first Super App for seamless passenger services.

Kolkata Metro Partnership: LED screens and Wi-Fi services at metro stations.

Airport Advertising: Over 5,000 trolleys at Netaji Subhas Chandra Bose International Airport, engaging 150 million commuters annually.

Strategic Acquisitions: 51% stakes in Mastermind Advertising (expanding OTT presence with platform FIRNG) and SYN Developers (infrastructure projects, including a 68-km water supply initiative under the Jal Jeevan Mission).

Renewable Energy: Launched wholly-owned subsidiary Cressanda Renewable Energy Solutions Limited.

Government Engagements: Empanelled with CBC, Government of India, for mobile van campaigns to promote government schemes.

Rebranded as Cressanda Railway Solutions Limited, the company has shifted from IT-enabled services to a focused leadership role in Railway Auxiliary Services, poised for innovation, growth, and industry leadership

FINANCE REVIEW Analysis of P&L

(Amount in Lakhs)

	Standalone		Consolidated
Particulars	31-03-2025	31-03-2024	31-03-2025	31-03-2024
Revenue from Operations (Net)	2,045.55	9,344.59	3,246.40	20,466.58
Other Income	448.23	510.34	449.47	511.64
Total Income	2,493.78	9,854.94	3,695.87	20,978.22
Earnings before Interest, Depreciation and Tax (EBIDTA)	87.71	1,002.42	100.39	1607.04
Less: Interest	7.17	8.34	8.39	9.75
Less: Depreciation	37.37	31.73	37.92	39.42
Profit Before Tax	43.17	962.35	54.08	1557.87
Less: Current Tax	11.17	17.35	14.00	177.9
Deferred Tax	0.00	0.42	0.00	0.42
Net Profit for the Year	32.00	944.58	40.08	1379.55
EPS (Equity share of Re.1/- each)
Basic	0.01	0.23	0.01	0.329
Diluted	0.01	0.23	0.01	0.329

Summary of Balance Sheet

(Amount in Lakhs)

	Standalone		Consolidated
Particulars	31 March 2025	31 March 2024	31 March 2025	31 March 2024
Equity and Liabilities
Equity share capital	4,127.35	4190.26	4127.35	4,190.26
Other equity	11,190.26	10,442.75	12376.88	11,603.78
Minority Interest	..	--	669.44	669.44
Non-current liabilities	9.84	29.29	242.30	28.87
Current liabilities	1,146.91	5,293.16	16666.54	16,183.90
Total	16,534.78	19,955.46	34182.50	32,676.25
Assets
Non-current assets	3,231.28	4,477.98	3104.7	4,165.41
Fixed assets	94.45	97.29	96.26	98.16
Current assets	13,248.62	15,380.19	30981.54	28,412.68
Total	16,534.78	19,955.46	34182.50	32,676.25

Summary on the Basis of Standalone Financial Statements

Total Revenue: During the Financial Year (FY) 2024-25, the total revenue of the Company is decreased by 78.11% from _9,854.94 Lakhs to _2,493.78 Lakhs as compared to the previous Financial Year 2023-24. The revenue has decreased due to non-trading in the commodities business of the company now company focusing on main segments i.e., Railway Auxiliary Services.

Expenditure: During the year, total expenditure has decreased by 73.29% from _9,230.30 Lakhs in FY 2023-24 to _2,465.02 Lakhs in current FY 2024-25. Decrease in expenses is largely because of non-trading in the commodities business and other cost control activities of the management.

Employee benefits expenses: During the year under review, the Employee benefits expense decreased by 12.88% from _203.83 Lakhs to _177.56 Lakhs as compared to the previous Financial Year. The key reason for decrease is due to removal unproductive employees from the company.

Finance Cost: The finance cost decreased by 14% from 8.34 Lakhs in FY 2024-25 to _7.17 Lakhs as compared to the previous FY 2023-24.

Operational & other Expenses: The operational & other expenses increased by 64.43% from _1,360.31 Lakhs to _2,236

73 Lakhs as compared to the previous FY 2023-24 mainly because of railway license fees on account of expansion of business activities.

Profit before Tax: During the year, we recorded a decrease in the profit before tax by 95.15% from _962.35 Lakhs in FY 2023-24 to _43.17 Lakhs in FY 2024-25, mainly because of non-trading of commodities business activities.

Profit after Tax: During the year, we recorded a decrease in the profit after tax by 96.61% from _944.58 Lakhs in FY 2023-24 to _32.00 Lakhs, owing to non-trading of commodities business activities.

Non-Current Liabilities: The non-current liabilities have decreased by 66.40% from _29.29 Lakhs in FY 2023-24 to _9.84 Lakhs in FY 2024-25.

Current Liabilities: The current liabilities have decreased from _5,293.16 Lakhs for FY 2023-24 to _1,146.91 Lakhs in FY 2024-25.

Non-Current Assets: The non-current assets have decreased from _4,574.97 Lakhs for FY 2023-24 to _3,325.73 Lakhs for F.Y 2024-25.

Current Assets: The current assets have decreased by 13.86% from _15,380.19 Lakhs to _13,248.62 Lakhs in FY 2024-25 as compared to the previous FY 2023-24.

Details of Key Financial Ratios:

In compliance with the requirement of the listing regulations, the key financial ratios were examined and the ratios with significant changes of 25% or more as compared to the immediately previous financial year have been provided hereunder along with the explanation for the changes, if any.

Key Financial Ratios	FY25	FY24	Reason for Significant Change, if any
Current Ratio	0.002	2.94	Due to non-trading activities
Return on Equity Ratio	0.07	0.06	Due to decease in Profit
Trade Receivables Turnover Ratio	0.83	1.31	Due to non-trading activities
Trade Payables Turnover Ratio	0.01	1.50	Due to non-trading activities
Net capital turnover ratio	0.17	0.91	Due to non-trading activities
Net profit ratio	0.01	0.10	Due to non-trading activities
Return on capital employed	0.002	0.07	Due to non-trading activities

RISK MANAGEMENT

Effective risk management is central to ensuring robust and healthy finance for the Company. A thorough risk-management framework allows us to pre-emptively monitor risks emanating from the internal and external environment. As a result, we have been able to consistently create value for all our stakeholders, despite industry cycles and economic headwinds.

The Companys risk management policy adopts a holistic approach to identifying and evaluating risks across all aspects of its operations while aligning with its organizational objectives. This involves continuously monitoring the effectiveness of risk responses in addressing strategic, operational, financial, and compliance risks. The management maintains a proactive stance by closely monitoring markets related to the Companys service lines. They also stay abreast of the related policy changes to mitigate risks effectively.

While the Board believes there are no risks threatening the companys existence, proactive measures are taken to assess and mitigate risks typically encountered in the normal course of business, including economic risks, technological risks, policy risks, and market risks.

HUMAN RESOURCE

Our businesss core asset is our intellectual capital, and the satisfaction of our employees greatly influences our success. CRSL believes that our people are the driving force behind the company, and our prosperity hinges on their growth. We are dedicated to fostering personal development in a secure and inviting environment, while valuing diversity and individual contributions. Our ability to identify, onboard, and retain talent has fueled our expansion. Human capital plays a pivotal role in shaping our Companys future and ensuring smooth operations.

Through training sessions, we empower our workforce to reach their full potential. Our transparent communication structure encourages employees to share their views with management. These efforts enhance recruitment and retention of top talent, nurturing a committed and satisfied human capital base. Effective HR initiatives and people management practices have been implemented, and CRSLs workforce has 15 employees as of March 31, 2025.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has established Internal Financial Controls tailored to its operations size, scale, and complexity. The Board of Directors ensures their adequacy and effectiveness. These controls aim to ensure accurate financial and operational information, legal compliance, asset protection, proper transaction authorization, and policy adherence. The Companys internal financial control framework aligns with the Companies Act, 2013, and suits its size and operations. Standard operating procedures guide functions, overseen by business heads for compliance.

The Internal Audit function is defined, reporting directly to the Audit Committees Chairman for objectivity. Annually, the team creates an approved audit plan based on business risk. The Audit Committee monitors its compliance, effectiveness, and sufficiency in evaluating internal control systems, operating and accounting procedures, and policies. Corrective actions are taken based on Internal Audit reports to enhance controls.

CAUTIONARY STATEMENT

The MDA section contains forward-looking statements concerning the Companys future prospects. These statements entail various known and unknown risks and uncertainties that could significantly impact actual results. Additionally, the Company faces unforeseen and ever-evolving risks in its operating environment. The reports assumptions rely on both internal and external information, forming the basis for specific facts and figures. However, it is crucial to acknowledge that these assumptions may change over time, leading to corresponding adjustments in the estimates. These forward-looking statements represent the Companys current intentions, beliefs, or expectations and are applicable as of their original date. Please note that the Company is under no obligation to revise or update these forward-looking statements, regardless of any new information, future events, or changing circumstances.