Dolat Algotech Ltd Management Discussions

Macro-Economic Indicators

In 2024, the global economy exhibited resilience amidst mounting challenges of prolonged inflation, elevated interest rates and geopolitical tensions. According to the International Monetary Funds (IMF) World Economic Outlook, the growth of global Gross Domestic Product (GDP) slowed to 3.2%. There were notable differences in growth trends; while developed economies experienced a more gradual rate of expansion, emerging markets, particularly in Asia, continued to show a comparatively steady growth path.

The global economic outlook is marked by cautious optimism tempered by significant challenges. The aggressive trade policies, particularly the imposition of broad U.S. tariffs, has introduced new uncertainties, potentially dampening global trade and investment. Escalating protectionism and tariffs put the global economy at the risk of stagflation, while tax cuts and deregulation may bolster investment and private sector capex. Global economic fragmentation and geopolitical tensions could impact external trade, while oil price volatility poses a risk to fiscal stability.

India to remain relatively insulated against the global shocks in the near future and continue to grow strongly. The structural long-term growth story for India remains intact driven by favourable demographics and stable governance. According to the IMFs World Economic Outlook Report, India is expected to maintain its position as the fastest-growing major economy, Growth will be driven by continued expansion in the services sector and a boost in manufacturing, supported by government efforts to enhance infrastructure and streamline tax policies.

Companys Financial Review

On a consolidated basis, the revenue for FY 2025 was 5,298.97 million higher by 40.64 percent over the previous years revenue of 3767.71 Million.

On a standalone basis, the revenue for FY 2025 was 4,238.14 Million higher by 38.74 percent over the previous years revenue of 3,054.70 Million.

Other significant financial parameters of the Company are given below:

Profit before tax (PBT)

Profit before tax for Consolidated aggregated to 3,009.44 Million in FY2024-25 registering a growth of 37.08 percent over the PBT of 2,195.47 Million in previous year.

Profit before tax for standalone aggregated to 2,672.05 Million in FY 2024-25 registering a growth of 36.16 percent over the PBT of 1,962.43 Million in Previous year.

Profit after tax (PAT)

On a consolidated basis, the profit after tax ("PAT") attributable to shareholders and non-controlling interests for FY 2025 and FY 2024 was 2,160.57 Million and 1,577.51 Million, respectively. The PAT attributable to shareholders for FY 2025 was 2,154.41 Million registering a growth of 36.94 percent over the PAT of 1,573.29 Million in FY 2024.

PAT for standalone aggregated to 2,154.41 Million registering a growth of 36.94 percent over the PAT of 1,573.29 Million in previous year.

Earnings per share (EPS)

EPS for Consolidated aggregated 12.24 in FY 2024-25 as against 8.94 in previous year. EPS for standalone aggregated 12.24 in FY 2024-25 as against 8.94 in previous year.

The company is engaged primarily in the business of trading in shares and securities and there are no separate reportable segments.

Key financial ratios, along with detailed explanations therefore, including:

Current ratio: Disproportionate increase in current assets compared to current liabilities during the year has led to increase in current ratio.

Debt- equity ratio: Reduction in short term borrowings by around 22% coupled with increase in total equity by around 27% has led to decrease in debt equity ratio.

Return on investment in partnership firm: Disproportionate increase in share of profit from firm compared to average investment in firm has led to increase in the return on investment.

Opportunities & Challenges

Your Company with its diversified trading strategy with available liquid funds was particularly well placed to benefits on improvement in the sentiment in market. In the year to come your company will continue to identify opportunities and making investment/trading in select sectors/stategies which the management believes have potential to grow your wealth. The volatility in the Indian Capital Markets in the financial year under report represents both an opportunity and challenge for the Company.

Risk & Concern

The capital market industry is mainly dependent on economic growth of country and capital market is also further affected by number of issues arising out of International policies of foreign government as well any change in international business environment. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economical or political and also natural climatic conditions in the country. However, with the positive attitude of country which can mitigate the avoidable risks. Geopolitical tensions, raising commodities prices are some of the affecting factors that the country witnessed during the year under review. The country faced the said concerns with positive measures by way of making amendments or introducing new laws that can assist to grow the economy. Foreign investors are very positive for India and trust its policies which are very much investor friendly. It is expected that the said efforts shall continue during the coming years irrespective of the Government which is in power.

INTERNAL CONTROL SYSTEM

The Company has an adequate system of internal control, which assures us of maintaining proper accounting records and reliability of financial information. The Company ensures adherence to all internal control polices and procedures as well as compliances with regulatory guidelines.

HUMAN RESOURCES

The Company continues to strengthen its people capabilities in its quest to build a growing and sustainable business. An increased focus is being maintained to further build employee retention at all levels in the Company. Your Company gives significant importance to its human capital and is dedicated for continuous enhancement of their skills and knowledge by way of training and supervision. Your Companys belief in trust, transparency and teamwork improved employee productivity at all levels.

CAUTIONARY STATEMENT

Statement in this Management Discussion and analysis describing the Companys objective, projection, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. Several factors could make a significant difference to the Companys operations. These include economic conditions, Government regulations and Tax Laws, Political situation, natural calamities etc. over which the Company does not have any direct control.