Finelistings Technologies Ltd Management Discussions

1.Global Economy and Outlook:

The global economy is expected to show a modest recovery in 2024, with global GDP growth projected at 3.1%, slightly improving from 2.9% in 2023 but still below the historical average of 3.8%. The continued rise in central bank interest rates to combat inflation, coupled with geopolitical uncertainties especially Russias ongoing war in Ukraine remains a significant drag on global economic activity. Although Chinas reopening has provided a boost to global growth prospects, inflation is expected to remain elevated, declining from 8.8% in 2022 to 4.3% by 2024, well above pre-pandemic levels. While risks such as geopolitical escalation, further global supply chain disruptions, or tightening financial conditions still pose downside risks, the potential for stronger-than-expected recovery driven by pent-up demand offers some upside.

For Finelistings Technologies Limited (FTL), the global economic environment presents both challenges and opportunities. On the one hand, inflationary pressures, tighter consumer financing, and slower global growth could dampen demand for high-value assets like luxury vehicles. However, Indias resilient economic growth and rising middle class continue to support the domestic demand for premium cars through FineCars. Additionally, FTLs strategy to offer value-added services such as financing, maintenance, and warranties can help mitigate some of the impact of higher borrowing costs, making luxury vehicles more accessible to consumers.

In the technology services sector, FTLs software solutions are positioned to benefit from Indias growing digital transformation, which remains a key driver for businesses across sectors. Despite global uncertainties and tighter financing conditions, companies worldwide are increasingly investing in cutting-edge solutions like cloud computing, IoT, and AI, creating significant growth opportunities for FTLs software division. However, the global slowdown and tightened IT budgets in key markets, especially the U.S. and Europe, may temper demand, requiring FTL to focus on cost-effective and high-impact offerings.

Overall, while the global economic outlook presents certain risks, FTL remains well-positioned to capitalize on Indias robust domestic market and its diversified business model. By focusing on value-added services in the automotive segment and continuing to innovate in its software offerings, FTL is prepared to navigate macroeconomic challenges and sustain its growth trajectory in F.Y. 2024-25.

2.Indian Economy and Outlook:

Indias economy has demonstrated remarkable resilience in recent years, transitioning from the pandemic-induced slowdown to become the worlds fifth-largest economy by FY 2022-23. The first quarter of F.Y. 2022-23 saw real GDP growth of 4% compared to pre-pandemic levels, signalling a strong recovery. This resurgence has been largely driven by the release of pent-up demand, the widespread adoption of COVID-19 vaccinations, and the recovery in the contact-intensive services sector, which is expected to remain a key growth driver in the coming year. Despite challenges such as rising crude oil prices and global supply chain bottlenecks, Indias growth forecast for F.Y. 2024-25 remains robust, with the IMF projecting a 6.8% growth rate underpinned by strong domestic consumption and a growing working-age population.

Government efforts to bolster the economy through capital spending, infrastructure development, and tax reforms are expected to provide further support to economic growth. The streamlining of the tax system, alongside digitalization of tax filing and increased investments in infrastructure, will help drive long-term growth. Moreover, the revival of agriculture, aided by favorable monsoon conditions and Kharif sowing, will further support overall economic activity, particularly in rural areas. This diverse growth across sectors, fueled by increasing employment and higher private consumption, bodes well for Indias continued economic expansion.

For Finelistings Technologies Limited (FTL), Indias economic growth provides a fertile landscape for expansion in both the luxury car retail and technology services segments. The automotive sector stands to benefit from a growing middle class, with rising disposable incomes and an increasing appetite for premium pre-owned vehicles. FTLs FineCars is well-positioned to capture this demand, especially as consumer sentiment improves. Additionally, the continued focus on Digital India and infrastructure development offers significant growth opportunities for FTLs software services, as businesses increasingly seek digital transformation solutions, from automation to AI-driven innovations.

In conclusion, the Indian economys growth outlook remains strong for F.Y. 2024-25, with favorable trends in consumer demand, government spending, and digitalization. FTL is well-positioned to capitalize on these opportunities across its automotive and technology services divisions, leveraging Indias economic momentum to drive growth in the coming financial year.

3.Industry structure and development:

The Indian automotive industry remains one of the most dynamic sectors, driven by increasing demand for both domestic and international vehicles, the expansion of electric vehicle (EV) infrastructure, and a growing middle class with rising disposable income. The pre-owned luxury car market, where FTLs FineCars operates, has witnessed significant growth due to changing consumer preferences, a shift towards more sustainable vehicle options, and an increase in the availability of financing options. As Indian consumers increasingly prioritize value for money, the demand for high-quality pre-owned luxury vehicles continues to rise, creating new opportunities for FTL to expand its footprint in the market.

Meanwhile, the IT services industry continues its robust growth trajectory, bolstered by Indias increasing role as a global IT hub. The industrys growth is underpinned by the increasing adoption of cloud technologies, AI, machine learning, and automation across sectors like banking, healthcare, and manufacturing. With businesses in India and globally seeking digital transformation, FTLs technology services are well-positioned to capture this demand. The governments push for digitalization, coupled with rising demand for smart solutions and enterprise software, further supports the expansion of Indias IT services sector, providing significant growth opportunities for FTLs software division.

Overall, the luxury automotive and IT services sectors are poised for continued development, supported by favourable macroeconomic trends and government policies. With increasing demand for premium pre-owned vehicles and the growing need for digital transformation solutions, FTL is strategically positioned to capitalize on these trends. The Companys ability to adapt to changing consumer preferences in the automotive market and leverage Indias expanding digital infrastructure will be key to driving growth and expanding its market share in the coming year

4. Opportunities and Threats: Opportunities:

i. The Indian automobile industry continues to offer significant growth potential, especially with its increasing focus on sustainable mobility. The premium passenger vehicle segment is witnessing a clear shift towards premiumisation, with the luxury car market expected to surpass USD 1.54 billion by 2027, creating vast opportunities for FTLs FineCars division to expand its footprint.

ii. The after-sales car industry is emerging as a critical segment, driven by advancements in vehicle technology and the growing demand for specialised maintenance, customisation, and repair services. This trend supports the growth of authorised service centres, enhancing the overall vehicle ownership experience and creating additional revenue streams for the Company.

Threats:

i. The ongoing transformation of Indias automobile industry, marked by changing consumer preferences and the rapid shift towards sustainable and electric mobility, presents challenges that may impact traditional luxury vehicle sales and services.

ii. To mitigate these risks and sustain growth, the Companys strategic partnership with an electric vehicle (EV) manufacturer is a crucial step in diversifying its product offerings and aligning with the broader industry transition towards sustainability.

5. Future Outlook:

The Indian used luxury car market continues to grow strongly, with sales rising about 20% and demand increasing by 35-40% year-on-year, driven by improved financing options, younger vehicle ages (2-3 years), and expanding reach beyond major metros into tier 1 and tier 2 cities through local dealers and online platforms. This expanding market presents significant opportunities for FTLs FineCars division to enhance its inventory and customer base. Concurrently, increasing digital transformation across sectors is fueling demand for cloud, AI, and automation solutions, offering robust growth prospects for FTLs software services division. The Companys ongoing focus on operational excellence, innovation, strategic partnerships, and diversification into electric vehicles will enable it to leverage these market trends effectively. With a strong emphasis on superior customer experience and sustainability, FTL is poised to sustain growth and create long-term value in an increasingly competitive and dynamic environment.

6. Risks and concerns:

Finelistings Technologies Limited acknowledges the various risks inherent in pursuing its business objectives across the dynamic automotive and technology sectors. To address these challenges effectively, the Company has developed strong organizational agility and a comprehensive risk management framework approved by the Board of Directors. This framework clearly defines the principles, processes, and responsibilities for risk identification, assessment, mitigation, and monitoring. Oversight is provided by the Risk Management Committee in collaboration with the Audit Committee, which together ensure the effective implementation of risk policies. The Company conducts regular evaluations to identify ‘Risks that Matter and presents formal reports to these Committees on a half-yearly basis, who in turn provide guidance to the Board. These measures allow FTL to proactively manage risks related to market fluctuations, supply chain issues, technological disruptions, regulatory compliance, and other evolving factors, thereby safeguarding business continuity and supporting sustainable long-term growth.

7. Segment wise or product-wise performance:

The Company operates in single Segment i.e. retail of pre-owned luxury cars remained the primary focus of Finelistings Technologies Limited. The segment saw significant growth, driven by increasing consumer demand for high-quality, certified luxury vehicles.

8. Internal control systems and their adequacy:

Finelistings Technologies Limited has in place a well-structured internal control framework that ensures effective governance, financial discipline, and operational efficiency. The system is built on a strong finance function, independent internal audit processes, and regular risk assessment exercises that help identify and address key business risks. The Audit Committee actively monitors internal audit findings and ensures that necessary corrective actions are implemented in a timely manner. The Company strictly follows all applicable accounting standards and regulatory norms, supported by well-documented internal policies and procedures. Robust IT systems safeguard critical data and facilitate smoother audit trails, while comprehensive Management Information Systems (MIS) enable real-time monitoring of expenses. Any deviations from budgets or controls are swiftly identified and rectified, ensuring compliance and accountability at all levels.

9. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2024-25 is described in the report of Board of Directors of the Company.

10. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer-employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

11. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector specific financial ratios. In this regard, the Company has significant changes in key sector specific financial ratios is described in the Financial Statement along with reason for the variance in this Annual Report.

12. Caution Statement:

Certain statements in this report, particularly in the Management Discussion and Analysis (MDA) section, are forward-looking and based on current expectations, estimates, and assumptions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks may include, but are not limited to, changes in market conditions, regulatory developments, technological advancements, and overall economic performance. The assumptions underlying these projections are based on both internal and external information available at the time of writing. However, as these factors are subject to change, the estimates and projections made may be revised accordingly. The Company does not undertake any obligation to revise or update these forward-looking statements in the light of new developments, information, or events. Investors are urged to consider these risks while making investment decisions.

By the order of the Board,	Sd/-	Sd/-
Finelistings Technologies Limited	Arjun Singh Rajput	Aneesh Mathur
Registered Office:	Managing Director	Director
G 07, Ground Floor, Ambience Mall, Nelson Mandela Road, Vasant Kunj, South West Delhi, New Delhi 110 070	DIN: 06529439	DIN: 08094712
Place: Delhi
Date: 31st July, 2025