DU DIgital Global Ltd Management Discussions

Global Economy Overview:

Inflation and Monetary Policy

In 2024, the global economy grew by 3.3%, slightly below the 3.5% growth recorded in 2023 and the long-term average of 3.7% (2000-2019), according to the International Monetary Fund (IMF). Despite persistent challenges?including high interest rates, geopolitical tensions (such as the Russia-Ukraine war and Middle East conflicts), and lingering postpandemic effects?the global economy showed resilience.

Key Growth Trends

Asia remained the engine of global growth, led by Indias strong performance. In contrast, the US and Europe experienced slower activity due to weak demand, elevated energy costs, and monetary tightening.

Chinas GDP expanded by 4.5% in 2024?the weakest pace since 1990, excluding the pandemic years?dampening trade-dependent economies across Asia and Africa.

Looking ahead, global growth is projected to moderate to 2.8% in 2025, with a slight recovery to 3.0% in 2026, as tighter trade conditions and policy uncertainty weigh on activity.

Trade and Energy Outlook

Inflation eased through much of 2024, helped by tighter monetary policy and declining energy prices. Central banks in many countries began lowering interest rates between April and September 2024, reducing borrowing costs and supporting private investment.

However, from October 2024 onwards, renewed inflation concerns pushed bond yields higher, creating fresh volatility in financial markets. Inflation is now forecast to decline gradually to 4.3% in 2025 and 3.6% in 2026, though cross-border price pressures remain a risk.

Regional Growth Outlook

• Advanced Economies (US, Canada, Japan, UK) are expected to grow by only 1.4% in 2025 due to weaker consumption and rising trade barriers.

• Emerging and Developing Economies

(EMDEs) are projected to grow 3.7%, outpacing developed nations.

• China is forecast to slow further to 4.0% in 2025, amid trade restrictions and weakening exports.

• India remains the worlds fastest-growing major economy, with expected growth of 6.4% in 2025 and 2026, supported by strong domestic demand.

Financial Markets and Policy Risks

Financial markets remained volatile in 2024 and early 2025, driven by uncertainty over inflation, interest rates, and global trade policies. While financial conditions improved mid-year, central banks continue to face a delicate balancing act? supporting growth while keeping inflation under control.

Global trade growth is expected to slow to just 1.7% in 2025, sharply revised down due to rising protectionism. Tariff levels surged to historical highs in April 2025 following new US trade measures and retaliatory actions by other economies. This disruption has impacted merchandise trade and delayed recovery.

Crude oil prices declined by 2.9% YoY in 2024, averaging $74.6 per barrel by December. However, the risk of supply shocks remains elevated due to potential escalation in conflicts in oil-producing regions.

In addition, rising geo-economic fragmentation? marked by shifts in global supply chains, trade alliances, and investment flows?adds another layer of complexity to the outlook.

Implications for DU Global

The global slowdown and rise in protectionist policies pose potential risks to cross-border economic activity. However, declining inflation, improving consumer sentiment, and recovery in services trade particularly in mobility and travel

offer meaningful opportunities. DU Global is well- positioned to benefit from rising demand for visa processing, digital onboarding, and authentication services, especially in fast-growing regions such as India and Southeast Asia.

Source: IMF Reports, Reuters, U.S. Energy Information Administration (EIA), OECD

Indian Economy Overview:

India remained one of the fastest-growing major economies in the world in 2024-25, holding its position as the 5th largest economy by GDP and the 3rd largest by Purchasing Power Parity (PPP). According to the National Statistical Office (NSO), real GDP growth for FY2024-25 is estimated at 6.5%, supported by strong consumption demand, expansion in the services sector, recovery in agriculture, and sustained government capital expenditure.

Resilient Growth Amid Global Headwinds

Despite global challenges such as geopolitical tensions, trade fragmentation, and elevated public debt, Indias economy showed resilience, backed by solid macroeconomic fundamentals and targeted policy measures. Economic activity was supported by:

• Private final consumption expenditure (PFCE) growth of 7.6%, led by rural demand.

• Gross fixed capital formation (GFCF) growth of 6.1%, reflecting steady investment activity.

• Strong services sector momentum and a rebound in agricultural output.

• Positive contribution from net exports despite global trade slowdown.

Inflation and Monetary Policy

Headline CPI inflation averaged 4.6% in 2024-25,

down from 5.4% in the previous year, staying within the RBIs target range. However, food price volatility due to weather-related supply shocks created periodic spikes. Core inflation (excluding food and fuel) also eased, helped by the lagged impact of earlier monetary tightening and lower input cost pressures. The Reserve Bank of India adopted a balanced policy stance, making calibrated interest rate cuts in late 2024 to support growth while keeping inflation expectations anchored.

Financial Sector Stability

Indias financial system remained healthy and well-capitalised:

• Bank and non-bank balance sheets strengthened.

• Asset quality improved, with lower NPAs.

• Capital buffers remained adequate.

• Double-digit bank credit growth was recorded, led by retail lending and the services sector, with public sector banks showing particularly strong performance.

Domestic financial markets functioned smoothly, although global market volatility was occasionally felt.

Outlook for 2025-26

India is projected to grow at 6.4% in FY2025-26, retaining its position as the fastest-growing major economy. Growth will be driven by:

• Continued government infrastructure spending.

• Rising rural and urban consumption.

• Expansion in tourism, travel, and services exports.

• Ongoing digital transformation and skill development initiatives.

For DU Global, Indias strong services sector performance, recovery in tourism, and rising demand for international mobility create a favourable environment for business expansion.

Sources: NSO, RBI, IMF World Economic Outlook (April 2025), Ministry of Finance

Indian Travel and Tourism Industry Industry Overview

The Indian travel and tourism sector continues to be one of the fastest-growing industries, playing a pivotal role in employment generation, regional development, and economic diversification. Financial Year 2024-25 marked another landmark year, driven by strong fundamentals such as increased participation by younger travellers, rising employment levels, growing personal disposable incomes, and improved connectivity.

The Union Budget 2025-26 allocated 2,541 crore for the tourism sector, with a focus on infrastructure upgrades, skill development, and simplifying travel processes. According to the World Travel & Tourism Council (WTTC), the sector is expected to contribute over 22 lakh crore to Indias economy in 2025 and support around 48 million jobs

Outbound Travel Growth

• Strong rebound: Outbound travel from India has surpassed pre-pandemic levels, with outbound expenditure in the first half of 2024 81% higher than in 2019.

• Key Drivers: Higher disposable incomes,

greater passport penetration, improved international air connectivity (including low- cost carrier expansion), and growing use of digital booking platforms.

• MICE (Meetings, Incentives, Conferences, Exhibitions): MICE and corporate travel are emerging as significant drivers of outbound demand. The India MICE market was valued at USD 49.4 billion in 2024 (Grand View Research) and is expected to grow at a double-digit CAGR, increasing high-value international travel and visa demand.

• Key destinations: Short-haul locations in Southeast Asia, the Middle East, and Europe continue to attract strong demand for both leisure and business travel.

Inbound Travel Momentum

• Recovery & expansion: Inbound arrivals have grown steadily, supported by Indias improved tourism infrastructure, e-visa facilities, and diverse offerings across leisure, heritage, spiritual, wellness, and adventure tourism.

• High-value segments: Business events,

exhibitions, and international conferences are boosting high-spend inbound tourism, with MICE-related arrivals contributing to longer stays and higher per-capita spends.

• Government initiatives: Increased budgetary allocations, targeted campaigns such as Dekho Apna Desh, and partnerships with states are enhancing Indias global tourism profile

Employment and Economic Impact

• Jobs: The sector directly and indirectly supports over 40 million jobs (EY estimates) and is projected to reach 48 million jobs by 2025 (WTTC).

Multiplier effect: Tourism drives growth in ancillary industries such as hospitality, transport, retail, entertainment, handicrafts, and local cuisine, amplifying its economic footprints

Macro Linkages and Growth Drivers

• The sectors performance is closely tied to Indias macroeconomic strength. With GDP growth projected at 6.4% in 2025 and 2026 (IMF), rising private consumption, healthy financial sector balance sheets, and ongoing capital expenditure, tourism is set to expand further.

• Outbound travel will continue to benefit from higher disposable incomes and expanding air routes, while inbound tourism will gain from sustained policy support and infrastructure investment.

Sources: Ministry of Tourism, Government of India; IMF World Economic Outlook, April 2025; UNWTO; IBEF; EY-The Economic Times Great Indian Traveller Report 2024.

Industry Outlook

The Indian travel and tourism sectors growth remains tied to strong macroeconomic fundamentals and a supportive policy environment. With GDP projected at 6.4% in 2025 and 2026 (IMF), rising private consumption, government capital expenditure, and healthy financial sector balance sheets, the industry is well-positioned for continued expansion.

Macroeconomic Linkages

Sustained economic growth in India will drive domestic and international travel demand. Rising disposable incomes and growing middle-class participation will boost outbound travel. Inbound tourism will benefit from infrastructure upgrades, expanded e-visa facilities, and marketing efforts like Incredible India 2.0. Consistent policies on tourism development and transport infrastructure will support long-term resilience.

Global Travel & Air Transport Trends

Outlook

Global air transportation expanded in 2024, supported by a resilient world economy and moderating oil prices despite prior monetary tightening.

• International air traffic grew 13.7% YoY in 2024.

• Asia-Pacific carriers led growth with a 26.6% YoY rise, driven by strong intra-regional and Asia- Pacific to Europe/Middle East flows.

• Europes revenue passenger kilometres (RPK) increased 9.8% YoY, led by Western Europe and rapid growth in Eastern and Central Europe.

• Middle East international air traffic grew 9.4% YoY, despite regional conflicts, supported by Gulf-based airlines.

Strong domestic economic growth, expanding air networks, and rising global travel demand position Indias tourism industry for sustained medium- term growth. DU Digital is well-placed to leverage this through its visa processing, digital onboarding, and authentication services, especially in fastgrowing outbound market.

Company Overview The company is a leading technology-driven firm specializing in visa processing, consular services, and related solutions for governments and embassies worldwide. It operates Visa Application Centers (VACs) and Indian Consular Application Centers (ICACs), providing streamlined services including visa application handling, biometric data collection, and customer support to simplify and expedite visa issuance for travelers globally.

India, a key Asia-Pacific player, is expected to significantly contribute to global travel volume growth, especially in outbound leisure, MICE, and business travel.

Tourism Demand Drivers for FY2025-26

During the year, the company diversified its core business and expanded its operations despite challenges. The Groups VAC Centers in Bangladesh were impacted by political unrest, though conditions are now improving. The company secured key ICAC contracts in Seoul, South Korea, and Bangkok and Chiang Mai in Thailand, marking important international expansion.

On the domestic front, the company successfully broadened its B2B and B2C customer base across five states, strengthening its footprint within the Indian market. Additionally, the company entered the recruitment agent business, obtaining necessary registrations from the Ministry of External Affairs, and plans to contribute to turnover through this segment in the next financial year.

The company was also declared L1 bidder in tenders from the Ministry of External Affairs for new ICAC locations, reflecting its competitive positioning.

• Higher disposable incomes fueling leisure and business travel.

• Expanding air connectivity through increased flights and new routes.

• Growth in MICE travel boosting outbound volumes.

• Lower oil prices helping keep airfares competitive.

• Government investments in infrastructure, skill development, and travel facilitation.

Financial Performance & Overview

The year witnessed developments that both contributed to and impacted the companys growth trajectory.

• On a Standalone basis, revenue increased by 74%, EBITDA by 45%, and Profit After Tax by 44%.

• On a Consolidated basis, revenue grew by 65%, EBITDA by 89%, and Profit After Tax by 324%.

The company reported a consolidated profit of Rs. 339.17 lakhs for the current financial year, compared to Rs. 80.17 lakhs in the previous year, reflecting strong operational performance and growth.

Segment Wise Performance

Segment wise performance is not applicable. Risk & Their Management:

The Company undertakes different means and measures to control risks where possible and take effective measures to mitigate the possible impact of the same by effective timely audits and maker checker rule. Some of the measures undertaken based upon the type of risks being implemented are outlined below:

S no What Risk	Define/Description	Impact	Tools and Techniques used for Managing/ Mitigating risk
1 Technological Developments	• Emergence of New Technology • Adoption of new Technology by a competition	• Sales and Business Development	• Adoption of latest Digital Transformation Platforms with scalability, flexibility, and cost-efficiency • Use of AI Based Automation Tools
2 Economic uncertainty	• Macroeconomic Volatility • Market Instability • Policy and regulatory changes • Global Events and crises	• Rising Cost and shrinking margin • Discourage Investment and impacts Exchange rates • Additional Compliance Cost	• Use of CRM Systems • Demand forecasting • Competitor Tracking
3 Currency Fluctuation	• Exchange rate volatility	• Impact on Financial performance	• Multi-currency Invoicing • Currency Clauses in Contracts • Regular Exposure Reviews
4 Employee Turnover	• Disruption in service delivery • Loss of customer faith	• Operational disruption • Reduced team Morale • Knowledge drain	• Competitive Compensation • Career Development Programs • Employee recognition Systems

Outlook Opportunities

Strategic investments aimed at expanding overseas VAC Centers and exploring new business avenues are expected to continue, with strong backing from customers, business partners, travel associates, destination management companies, and employees. Supported by favorable government policies, reduced inflation, and a recovering travel and tourism sector, the company is well positioned to capitalize on growth opportunities both in India and internationally.

With these drivers, the company anticipates sustained growth and enhanced value creation for stakeholders in the coming years.

The company has strengthened its position by securing two L-1 tenders from the Ministry of External Affairs for the Indian Consular Application Centers in Seoul, South Korea, and Bangkok and Chiang Mai in Thailand. This achievement has enhanced the companys experience, manpower, and resources, enabling it to confidently participate in future tenders issued by various government ministries and departments related to its core business.

Additionally, during the financial year 2024-25, the company obtained the necessary registrations as a Recruiting Agent under the Emigration Act,

1983. This new venture along with upcoming opportunities for new tenders from various Governments/ embassies allows the company to diversify and expand its operations by offering Recruitment Agency services both within India and internationally, presenting a significant growth opportunity.

Threats

The companys primary business is closely tied to the travel and tourism sector, making it vulnerable to disruptions caused by natural disasters, political instability, geopolitical tensions, or other unforeseen events. Such factors can directly impact business operations and financial performance.

Furthermore, a high dependency on specific regions or markets?such as the companys developing business in Bangladesh?may constrain resources and investments, posing risks to overall growth. Learning from past experiences, the company is actively broadening its geographic reach and diversifying its core services to mitigate these risks and enhance business resilience

Internal Controls

There were no changes to our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal control over financial reporting during the period covered in this Annual Report.

Discussion on Financial performance with respect to operational performance

During FY 2024-25, the Company delivered a strong operational and financial performance, reflecting the successful execution of its growth strategy, international expansion, and diversification into new business segments. On a standalone basis, revenue grew by 74%, supported by higher demand for visa processing and consular services, while EBITDA and Profit After Tax (PAT) increased by 45% and 44%, respectively. On a consolidated basis, the performance was even stronger, with revenue rising by 65%, EBITDA by 89%, and PAT surging by 324%, underscoring the benefits of scale and improved operational efficiencies across geographies. The Company reported a consolidated profit of 5339.17 lakhs, compared to 580.17 lakhs in the previous year, demonstrating significant improvement

in profitability. Growth was driven by new ICAC contracts in South Korea and Thailand, expansion of the B2B and B2C customer base within India, and diversification into the recruitment agency business. Despite challenges such as political unrest in Bangladesh affecting operations, the Company maintained resilience and capitalized on recovery in travel and tourism. Improved trade payable turnover and net capital turnover ratios further highlight the efficiency gains achieved, while the increase in net worth from 577.93 crore in FY 2023-24 to 5 84.93 Crores in FY 2024-25 reflects strengthened financial stability and the Companys capacity to support future expansion.

Material developments in Human Resources / Industrial Relations front, including number of people employed

The Company continued to strengthen its human capital base in line with business growth and operational expansion. The total number of employees increased from 83 in FY 2023-24 to 112 in FY 2024-25, reflecting both organic growth and the scaling up of operations across domestic and international locations. The Company remains committed to building a skilled, motivated, and performance-driven workforce through initiatives focused on employee engagement, training, and career development. Industrial relations remained cordial throughout the year, with a collaborative and transparent work culture ensuring continuity of operations. The emphasis on employee recognition, competitive compensation, and professional growth has helped enhance retention and morale, thereby aligning the workforce with the Companys long-term vision and growth objectives.

Subsidiaries

Following are Subsidiaries of our Company:

S. No.	Indian	S. No.	Foreign
1.	OSC Global Processing Private Limited	1.	DuDigital Global LLC (Wholly Owned Subsidiary)
2.	Dudigital BD Private Limited	2.	Duverify LLC-FZ
3.	Intermobility Visa Solutions Private Limited	3.	Virtuworld Tourism LLC (Wholly Owned Subsidiary)
4.	Dudigital Worldwide Private Limited (Wholly Owned Subsidiary)

Details of Significant Changes in Key Financial Ratios, Along with Detailed Explanations

Ratio	31-Mar-25	31-Mar-24	% Change Reason for variance
Current Ratio	8.58	13.37	-36% Decrease mainly on account of decrease in current assets.
Debt- Equity Ratio	0.01	0.01	-7% Not Applicable
Debt Service Coverage Ratio	2.96	2.75	8% Not Applicable
Return on Equity Ratio	0.04	0.05	-27% Not Applicable
Inventory Turnover Ratio	0	0	NIL Not Applicable
Trade Receivable Turnover Ratio*	2.44	3.58	-32% Not Applicable
Trade Payable Turnover Ratio	13.02	9.30	40% Increased mainly on account of increase in net purchases during the year.
Net Capital Turnover Ratio	0.72	0.34	109% Increased mainly on account of increase in net sales for the year.
Net Profit Ratio	0.11	0.13	-17% Not Applicable
Return on Capital Employed	0.01	-0.11	-113% Not Applicable

Details of Any Change In Return on Net Worth as Compared to the Immediately Previous Financial Year

The Net worth of the Company for the financial year ended March 31, 2024 was 77.93 Crore which increased to 84.93 Crore as on March 31, 2025.