Docmode Health Technologies Ltd Management Discussions

DocMode Health Technologies Limited (hereinafter referred to as "the Company") was originally incorporated as "Docmode Health Technologies Private Limited" in Mumbai, Maharashtra in 2017. The Company was later converted into a public limited company in December 2022 and renamed as "Docmode Health Technologies Limited".

The Company is engaged in the business of offering integrated learning solutions through online and offline learning models to healthcare professionals and learners across the world, spanning the education value chain. The Companys offline learning model includes conferences and workshops, while the online courses are developed and presented by the in-house content development team, medical institutions, associations, subject matter experts, and key opinion leaders.

The Companys primary focus is on providing tech-driven online learning solutions that allow healthcare professionals and learners to engage in self-paced, inclusive, and individualized learning experiences. The Companys online learning model comprises notes, recorded videos, live conferences, and workshops. Additionally, the Company provides a platform for inter-professional, cross-industrial learning via panel discussions and courses, as well as leverages its performance assessment tools to enhance the clinical acumen of its users.

The Company is led by its experienced promoters, who have a collective experience of over 25 years in the fields of healthcare advertising, health IT, healthcare communications, and event management. The Companys promoters founded the Company with the vision of "Transforming Learning & Practice" in the medical fraternity, and they actively oversee the business development and strategic aspects of the Company.

The Company is supported by a team of qualified and experienced professionals who have demonstrated their ability to manage and grow the Companys operations, adapt and diversify its offerings, and leverage market opportunities. The Company is registered as ISO 27001:2013 for Information Security Management System and has also received a "ready" status from Skill India.

Contributors: The Company collaborates with international medical associations, key opinion leaders, and subject matter experts to develop certified courses for its users.

We offer the following services to Health Care Professionals:

OUR SERVICES:

e. The Company Clinical Research & CRO Services:

2. ENVIRONMENT AND STATE OF THE INDUSTRY:

Global-Economy:

The global healthcare industry continues to demonstrate remarkable resilience and growth momentum in 2025-2026, driven by several key factors including the rising prevalence of chronic diseases, aging demographics, breakthrough advancements in medical technology, and substantial government and private sector investments. According to recent global economic assessments, while overall economic growth patterns remain cautiously optimistic, the healthcare sector continues to outperform traditional economic indicators.

The healthcare industry has consistently shown its ability to weather economic uncertainties while maintaining steady growth trajectories. The sustained demand for quality healthcare services, innovative medical devices, and pharmaceutical products continues to drive market expansion, particularly in emerging and developing economies (EMDEs) where expanding middle-class populations, increased disposable incomes, and rapidly improving healthcare infrastructure are creating robust market opportunities.

The healthcare sectors resilience can be attributed to fundamental demographic shifts, including the growing prevalence of lifestyle-related diseases, an aging global population, and an increased focus on preventive healthcare and wellness solutions. Additionally, the accelerated adoption of digital health technologies, artificial intelligence in healthcare, telemedicine platforms, and the expansion of healthcare insurance coverage have further strengthened the industrys growth prospects.

Indian Economic Review:

India continues to position itself as a leading force in the global healthcare landscape, with economic indicators pointing towards sustained growth and expansion. The Indian economys robust performance, supported by strong domestic consumption, strategic infrastructure investments, and favorable policy frameworks, creates an excellent foundation for healthcare sector growth.

Indias healthcare sector benefits from several unique advantages including a large and growing population, increasing healthcare awareness, rising disposable incomes, and a strong base of skilled healthcare professionals. The governments continued focus on healthcare infrastructure development, digital health initiatives, and medical education reforms provides substantial support for companies operating in this space.

The implementation of regulatory compliance frameworks creates opportunities for companies that maintain professional development programs, and compliant pharmaceutical research solutions.

The Companys consolidated Operating Revenue for the year ended March 31, 2025, went up by 4.41% from Rs. 4000.73 Lakhs in FY 2023-24 to Rs. 4,177.29 Lakhs. The Other Income rose 584.18% from Rs. 13.59 Lakhs in FY 2023-24 to Rs. 92.98 Lakhs for the year ended March 31, 2025, primarily due to an increase in interest income on bank deposits. Operating Expenses rose by 12.22% from Rs. 3,980.36 Lakhs in FY 2023-24 to Rs. 4466.79 Lakhs for FY 2024-25. Profit Before Tax went down by 678.51% from Rs. 33.97 Lakhs in FY 2023-24 to Rs. (196.52) Lakhs for FY 2024-25, while Profit After Tax also declined by 1180.17% from Rs. 18.76 Lakhs in FY 2023-24 to Rs. (202.64) Lakhs for the period FY 2024-25, mainly due to an increase in operational costs and debt repayment. The overall tax rate reduced by 59.76% from Rs. 15.21 Lakhs in FY 2023-24 to Rs. 6.12 Lakhs for FY 2024-25. The basic and diluted EPS for the year was Rs. (6.45) as against Rs. 0.6 in FY 2023-24. The Cash and Cash Equivalents amounted to Rs. 183.5 Lakhs as of March 31, 2025, against Rs. 310.28 Lakhs for the FY 2023-24.

The outlook for FY 2025-2026 remains exceptionally positive, with strong momentum building across all business segments. The Companys Q1 performance looks really good, demonstrating remarkable strength and setting a solid foundation for sustained growth throughout the fiscal year. This positive trajectory is supported by strategic investments in clinical research capabilities, expanded service offerings, and a strengthened market position in traditional healthcare business models.

The Company is strategically positioned to capitalize on the evolving healthcare landscape through a focused approach that emphasizes both traditional healthcare business models and innovative research solutions. The Companys commitment to increasing bottom-line performance and profit optimization, while maintaining aggressive revenue growth, forms the cornerstone of our strategic direction for the coming years.

Strategic Focus Areas:

Clinical Research and CRO Services Expansion: The Company is significantly expanding its clinical research capabilities and Contract Research Organization (CRO) services, positioning itself as a leading player in the traditional pharmaceutical research sector. With CDSCO approval for its Ethics Committee, the Company is well-positioned to capture substantial opportunities in both domestic and international clinical research markets. The focus on CRAMS (Contract Research And Manufacturing Services) provides additional revenue streams and establishes the Company as a comprehensive research partner for pharmaceutical and biotechnology companies globally.

Enhanced Revenue Diversification: The Company is implementing a comprehensive revenue diversification strategy that leverages both existing strengths and new market opportunities in traditional healthcare business models. This approach ensures sustainable growth while reducing dependency on any single revenue stream.

Traditional Healthcare Business Expansion: The Company is significantly strengthening its focus on traditional pharmaceutical and healthcare business models, recognizing the substantial market opportunity in established clinical research and contract services. This strategic shift involves deeper engagement with pharmaceutical companies, clinical research organizations, and regulatory bodies through proven business models that deliver consistent returns.

Technology-Driven Growth: Continued investment in clinical research technologies, data management systems, and regulatory compliance platforms will drive innovation across all service offerings, ensuring the Company remains at the forefront of healthcare research solutions.

Key Growth Drivers:

a. Clinical Research Leadership: The Companys enhanced clinical research capabilities, supported by CDSCO-approved Ethics Committee and advanced EDC systems, position it to capture growing opportunities in both domestic and international clinical research markets. The expansion into CRAMS services provides comprehensive research solutions to pharmaceutical companies globally.

b. International CRO Market Penetration: Strategic initiatives to expand global CRO and CRAMS services, supported by regulatory compliance and cost-effective delivery models, will drive significant growth in international pharmaceutical research markets.

c. Regulatory Compliance Advantage: The Companys proactive approach to regulatory compliance and quality standards provides a competitive advantage in securing large-scale research partnerships with multinational pharmaceutical companies.

d. Educational Platform Growth: The Companys continuing medical education platforms continue to demonstrate strong growth through institutional partnerships and technology-driven delivery models.

e. Partnership Ecosystem: The development of strategic partnerships with pharmaceutical companies, research institutions, and international CRO organizations will create synergistic growth opportunities and expand service delivery capabilities globally.

Financial Performance Outlook:

While the Company has navigated through challenging periods, the strategic initiatives implemented and the improving market conditions position the Company for strong financial performance in the coming years. The focus on increasing bottom-line profitability, combined with aggressive revenue growth strategies, will drive substantial improvements in key financial metrics.

Market Position Strengthening:

The Companys comprehensive service portfolio, combined with its clinical research leadership and regulatory compliance capabilities, creates a strong competitive advantage in the pharmaceutical research sector. The Companys position as a full-service CRO and CRAMS provider in the healthcare research space provides multiple avenues for growth and market expansion.

The strategic focus on clinical research and traditional pharmaceutical business models, supported by the exclusive reseller and distributor network, will significantly enhance market penetration and revenue generation capabilities. This approach leverages proven business models while maintaining the innovation and research excellence that defines the Companys competitive advantage.

With substantial opportunities in the global CRO and CRAMS markets and a strategic focus on both domestic and international expansion, the Company is positioned for sustained growth and market leadership in the evolving pharmaceutical research landscape.

The Company has selected the accounting policies described in the Notes to Accounts, which have been consistently applied, and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2024, and of the Profit or Loss of the Company for the year. The significant accounting policies and practices followed by the Group are disclosed in Notes of the Consolidated Financial Statements for the year.

Related Party transactions are defined as transactions of sale / purchase of goods / services made by the Company with Promoters, Directors, Key Managerial Personnel, Subsidiaries, Associates, or other parties in which Promotors or Director are having significant interest / control directly or indirectly, which may have potential conflict of interest with the Company. There were no material transactions during the year under review that were prejudicial to the interests of the Company.

All transactions covered under related party transactions were regularly ratified and/or approved by the Board, the guiding principles being arms length, fairness, and transparency. Please refer to Note 34 of the standalone financial statements and Note 35 of the consolidated financial statements for details of related party transactions during the year.

The Companys Human Resource (HR) department is committed to developing and maintaining a high-performing workforce that is aligned with the Companys strategic goals. With this objective, it has implemented a number of innovative practices and invested in best-in-class processes to create an enabling environment for its employees. One of the key talent development initiatives taken by the Company in the past year was to invest in leadership and management development for a large pool of its middle management with the help of the countrys leading management institute.

The Company operates in a complex and evolving environment, facing several critical risks that could impact its business. Awareness of these risks and proactive management are central to sustaining growth and protecting stakeholder interests.

a. Channel Risks: Serving healthcare professionals and learners through both online and offline platforms demands continuous enhancement of content quality, technology, and mentoring capabilities. Effective channel management-including direct marketing, referrals, and digital optimization-is essential to maintain strong engagement and retention.

b. Obsolescence Risk: Rapid innovation in educational technology and shifting skill requirements necessitate agile curriculum development and content updates to stay relevant and competitive.

c. Execution Risk: The Company acknowledges the potential for disruptions including delays, quality lapses, and cost inefficiencies. These risks stem from internal and external factors and could adversely affect financial outcomes and brand reputation.

The Company has Risk Management Policy covering the above mitigation approaches to manage all probable and possible risks to the Company.

The Company maintains a robust internal control system to ensure operational efficiency, regulatory compliance, asset protection, accurate reporting, and effective risk management. Key elements include clear roles and responsibilities, documented policies, an authority matrix, active management review, regular internal and statutory audits, reliable audit trails, and oversight by the Board. The framework is periodically reviewed and updated to address evolving business needs.

10. Cautionary Statement:

Statements in this management discussion and analysis describing the Companys views about the industry, objectives, estimates, and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances, or achievements could differ materially from those expressed or implied in such statements. Readers are cautioned as not to place undue reliance.

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rules 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Consolidated Net Profit before exceptional item and tax for the year ended 31^st March, 2025 has decreased by 678.51%.