DAPS Advertising Ltd Management Discussions

a) Industry Structure and Developments

The Indian advertising industry maintained strong momentum during FY 2024-25, with total ad spend estimated to have grown by 9.8%, reaching nearly ^1.2 lakh crore, according to leading market forecasts. This growth is largely attributed to the surge in digital and outdoor advertising formats, even as traditional media continues to command a sizable share.

Agencies like ours remain central to this ecosystem, offering integrated services that include brand strategy, creative development, media planning and buying, digital marketing, and data analytics. Our collaboration with diverse media platforms·ranging from television and print to OTT and outdoor·ensures comprehensive campaign delivery for clients across sectors.

Digital advertising, now accounting for over 40% of Indias total ad spend, is being driven by programmatic buying, influencer marketing, and short-form video content. Our agency has kept pace with these developments, integrating these technologies into our offerings and aligning ourselves with emerging trends to better serve our clientele.

b) Opportunities and Threats

During the year, we made strategic progress in strengthening our digital footprint, most notably through our successful foray into Digital Out-Of-Home (DOOH) advertising. This segment offers dynamic, real-time, and data-driven advertising opportunities, especially in urban markets. This diversification enables us to deliver high-impact campaigns that combine the strengths of both traditional and digital formats.

That said, the competitive landscape remains intense, with increasing numbers of digital-first agencies and in-house brand teams entering the fray. Rapid tech evolution requires constant investment in new tools and talent. Meanwhile, clients are becoming more value-conscious, expecting performance-based results and greater transparency.

To address these challenges, we are investing in automation tools, expanding our creative talent pool, and building stronger relationships with platform partners to deliver measurable value to our clients.

c) Segment-wise performance

The company functions under a single business segment·advertising services·but operates across multiple media verticals. Revenue contributions for FY 2024-25 were as follows:

• Print Media: ^14.32 crore (73.12% of total revenue)

• Electronic Media (TV, Radio, OTT): ^1.96 crore (10.03%)

• Outdoor Media (including DOOH): ^2.78 crore (11.29%)

Despite the industry-wide slowdown in print, we retained strong revenue from this segment due to long-term legacy clients. However, our electronic and outdoor media segments saw growth, reflecting our shift towards diversified media planning. The launch of DOOH campaigns in three Tier-1 cities contributed significantly to our outdoor media performance.

d) Outlook

Looking ahead, we remain cautiously optimistic. Traditional media, especially print and TV, continues to attract institutional and government advertising, which forms a core part of our client base. We will continue to focus on onboarding clients that value the reliability and reach of these platforms.

Simultaneously, our investments in DOOH infrastructure, social media campaigns, and programmatic ad services will allow us to target younger, digitally savvy audiences. We are also exploring partnerships with regional OTT platforms and news aggregators to enhance digital visibility for our clients.

As a publicly listed entity, we believe our transparency, innovation-driven approach, and balanced strategy will contribute to consistent growth and long-term value creation for shareholders.

e) Risks and Concerns

The dynamic nature of the advertising sector exposes us to multiple risks. These include:

• Disintermediation: Some clients are increasingly developing in-house marketing capabilities, potentially reducing reliance on external agencies.

• Technology Risk: Failure to adopt new advertising tech or data analytics tools could result in a competitive disadvantage.

• Regulatory Scrutiny: With the Advertising Standards Council of India (ASCI) and government bodies tightening norms around deceptive or non-compliant ads, vigilance is critical.

• Market Volatility: Changes in economic policy, election-related ad slowdowns, or inflationary pressures could impact client spending.

To mitigate these, we are actively upgrading our tech, increasing compliance training and building consultative client relationships to reinforce our value as a strategic partner.

f) Internal Control Systems and their adequacy

A strong and well-structured internal control framework is absolutely essential for the successful and efficient functioning of our service-oriented business operations. It serves as the foundation for maintaining discipline, accountability, and consistency across all departments and processes. By establishing and implementing detailed systems, policies, and procedures, we are able to significantly improve the efficiency of our day-to-day operations. These controls help streamline workflows, reduce redundancies, and ensure that all activities are carried out in a timely and effective manner.

Our unwavering commitment to complying with applicable accounting standards further reinforces our internal control mechanisms. We ensure that all financial transactions are recorded and reported in accordance with recognized norms and regulations. Additionally, we conduct regular internal audits to assess the effectiveness of our controls and to identify areas for improvement. These audits serve as a proactive measure to ensure compliance, transparency, and continuous improvement.

g) Financial performance with respect to operational performance

Despite challenging market conditions, the Company has made significant strides in optimizing its operational efficiency. With a strong focus on cost management, has contributed positively. While certain financial metrics experienced fluctuations, the Companys underlying operational strength and strategic initiatives position it well for future growth and enhanced shareholder value. Through effective project management, delivering exceptional advertising campaigns on time and nurturing strong client relationships, we have significantly increased client satisfaction, secured repeat business and benefited from positive referrals.

h) Material developments in Human Resources

Our company has maintained a stable team of employees throughout the year. This continuity has fostered a strong team dynamic, enabling us to leverage our collective expertise and experience. Our dedicated team has remained steadfast in their commitment to delivering high-quality work and building strong client relationships.

i) Significant Changes in the Key Financial Ratios

Particulars	Financial Year Ended March 31, 2024	Financial Year Ended March 31, 2025	Change	Explanations for Change in case change ratio is more than 25%
Trade Receivable Turnover Ratio	2.27 times	2.16 times	-4.85%	-
Current Ratio	5.68 times	4.47 times	-21.30%	-
Debt Equity Ratio	1.15%	0.77%	-33.04%	-
Net Profit Margin	5.34%	6.22%	16.48%	-