Dev Information Technology Ltd Management Discussions

https://www.devx.work/investor-relations and https://www.devitpl.com/investor- relations/investor-relations/ investor-news-and-notices/announcements-to-stock-exchanges/

? Commitment to People:

At Dev IT, we believe in a "people first" philosophy. This year, we have demonstrated this commitment again by resolving to pay dividends to our shareholders and extending Employee Stock Ownership Plans (ESOP) to our employees. This ensures that those who contribute to our success are rewarded and remain integral to our future achievements.

These financial results are a testament to our strategic direction and the hard work of our dedicated team.

We remain committed to driving sustainable growth and delivering long-term value to our shareholders.

The global IT Industry is an ever-evolving ecosystem which is continuously impacted by the rapidly-changing technology landscape as well as economic conditions. Even though the world has witnessed global volatility, geopolitical tensions, and regulatory changes, businesses and governments continue to invest in technological transformation in pursuit of advancement and efficiency. Today, the buzzwords of yesterday, like AI, IoT, Analytics, Blockchain and cybersecurity are pillars of the future as they will help enterprises achieve competitiveness.

In India, the IT sector continues to be a robust and reliable contributor to the growth story. Along with the governments push to digitalise its economy and governance, the countrys private sector is also investing in IT to optimise and excel. While Indias IT exports are commendable, the emergence of its domestic markets has turned into an unmistakable edge for enterprises like Dev IT.

? Artificial Intelligence: Through DEV Lab Initiatives in North America and Australia, we are strengthening our innovation ecosystem and developing cutting-edge AI-driven solutions in analytics, automations, and customer service

? Blockchain: Our group company ‘Minddefft Technologies Private Limited is developing innovative solutions such as wallet tokenisation to mee the Rising adoption of smart contracts, decentralised finance, and digital identity.

? IoT: Applications in smart cities, agritech, and energy management align with national priorities and global sustainability goals.

? Cybersecurity: Growing complexity of digital ecosystems drives demand for Security Operations Centre (SOC) services, network security, and incident management.

? Domestic Market Expansion: Continued digital adoption by Indian government and enterprises offers stability and growth.

? Regulatory Changes: Whether in the EU or other countries, regulatory and compliance requirements around data privacy, AI, and blockchain may impact service delivery.

? Talent Shortage: Specialised skills in AI, blockchain, and cybersecurity remain in high demand and short supply as turnaround time of skills to get industry ready on the same versus the requirements pace has a deficit that may hamper business growth momentum.

? Cybersecurity Risks: Rising cyberattacks pose threats to reputation and continuity.

? Geopolitical Concerns: The volatility of tensions across the world could impact supply chain, trade parameters, and expansion strategies.

Dev ITs service portfolio has been consolidated into four major categories:

? Digital Transformation Services: Growth driven by enterprise adoption of AI, IoT, and cloud-based platforms.

? Blockchain Solutions: Expansion of offerings throughMinddefft Technologies Private Limited , with traction in smart contract auditing and decentralised finance applications.

? Cybersecurity Services: Managed SOC offerings have strengthened, addressing demand from both domestic and global clients.

? Business Intelligence and Analytics: Increasing use of Power BI and predictive analytics platforms has created opportunities across industries.

While international revenues faced pressure due to macroeconomic uncertainty, the domestic market demonstrated resilience, ensuring overall balance in performance.

The coming year will be guided by a strategy that blends resilience with selective expansion. Key elements include:

? Scaling AI-driven innovation through DEV Lab initiatives and Centres of Excellence.

? Pursuing blockchain advancements via Minddefft Technologies Private Limited, with wallet tokenisation and enterprise adoption as focal areas.

? Strengthening cybersecurity offerings with expanded SOC capabilities, leveraging India as a delivery hub with global reach.

? Supporting enterprises and governments in IoT adoption for smart cities and sustainability projects.

? Expanding presence in North America and Europe as well as winning projects in positively growing business enterprise landscape of Indias domestic business scenario through Dhyey Consulting Services and related group entities, with a focus on Microsoft enterprise solutions.

The outlook for the coming year is rooted in cautious optimism. While the industry and the business world in general is facing challenges, we are consistently balancing our portfolio across domestic and international domains to ensure we easily navigate through volatility and capitalise on long-term opportunities.

The Indian IT industry continues to demonstrate resilience and rapid evolution, even amid global turbulence.

NASSCOM reports that the industry is expected to grow by approximately 5.1%, reaching US $282.6 billion in FY 2025, up from the prior year, and is projected to exceed US $300 billion by FY 2026. Export revenues remain a key driver at approximately US $224.4 billion, with domestic growth also significant, contributing around US $58 billion. The sector added approximately 126,000 net jobs, bringing the total talent pool to 5.8 million professionals.

On the global front, IDC projects that worldwide IT services spending will grow by 5% in 2025, rising further by 5.2% in 2026. This indicates that, while macroeconomic conditions remain cautious, technology spend remains robust—especially in areas like cloud, AI, and cybersecurity.

At the state level, GESIA (Gujarat Electronics & Software Industries Association), the apex body for ICT and IT/ITES in Gujarat, continues to drive digital transformation across industry, startups, and policy advocacy.

Under Gujarats current IT/ITeS Policy (2022 27), the state aims to generate 100,000 direct jobs and boost IT exports from 3,000 crores to 25,000 crores (~US $3 billion).

? Technological Disruption: Rapid change in emerging technologies demands constant innovation.

? Market Volatility: Economic slowdowns or instability in global markets may impact revenue streams.

? Data Security and Privacy: Rising reliance on digital platforms increases exposure to breaches and compliance risks.

? Dependence on Key Partnerships: Strategic alliances with hyperscalers and technology providers remain vital to delivery. Any disruption may affect service quality.

? Talent Dynamics: Attrition and skill gaps in specialised domains require ongoing investment in training and recruitment.

Over the years, Dev IT has established a robust and adequate system of internal controls to safeguard assets from loss owing to unauthorised use or disposal, and that all transactions are properly authorised, recorded, and reported. This framework is supported by a comprehensive programme of internal and external audits, along with periodic management reviews.

Our systems ensure accuracy and reliability of financial records, facilitate preparation of financial information, and maintain accountability of assets. The Audit Committee of the Board regularly reviews the performance of audit and compliance functions, assesses the effectiveness of controls, and monitors adherence to regulatory requirements.

In the opinion of the Board of Directors and senior management, the internal control systems are appropriately designed and functioning effectively.

For FY 2024 25, consolidated net total income stood at 1839.09 million compared to 16,51.16 million in the previous year. Our profits after tax elevated to 1,477.97 million from 947.57 million in FY 2023 24. Our performance during the last year reflects disciplined execution, cost efficiency, and strategic investments in high-demand areas such as cybersecurity and data analytics. Further, our operational performance was also supported by recalibration of workforce allocation, with an increased focus on productivity and alignment with emerging technologies.

At Dev IT, People First, Business Always continues to define our approach. As of March 2025, we employed 924 permanent staff members. While this is a recalibration from the previous year, it reflects a sharper focus on skill alignment and operational efficiency.

? HRDigitisation:Strengtheneduseofplatformsforattendance,payroll,andperformancemanagement.

? Skills Mapping: Enhanced systems to track capability gaps and implement targeted training programmes.

? Employee Engagement and Wellness: Continued focus on inclusivity, cultural events, fitness challenges, and wellness initiatives.

? Diversity, Equity, and Inclusion: Ongoing commitment to creating a safe, equitable, and supportive workplace for all employees.

Our human resource practices ensure that employees are equipped, motivated, and aligned with the

Companys long-term vision.

"This year has been a period of consistent progress and strategic growth for our company. We have continued to strengthen our presence across key service areas such as cybersecurity, cloud solutions, and digital transformation. Our ability to secure multiple orders from both government and international clients reinforces the trust and credibility we have built through quality delivery and deep domain expertise. These wins are not just about revenue they are a reflection of our commitment to solving complex challenges and enabling digital ecosystems. Financially, we have maintained stable growth backed by operational efficiency and a healthy pipeline. The increasing push for digital governance, cloud adoption, and secure IT systems is creating robust demand across our offerings. Our recent projects across legislative bodies and cooperative institutions highlight the scale and relevance of our work. This is a significant milestone that reflects the strength of the innovation ecosystem we have built. Looking ahead, we remain focused on enhancing our capabilities, delivering value to our clients, and capturing emerging opportunities in a fast-evolving digital landscape. Our strategic priorities remain aligned with long-term, sustainable value creation."