Frog Cellsat Ltd Management Discussions

INDUSTRY STRUCTURE & DEVELOPMENTS: Industry Structure

The Indian telecom equipment market is growing rapidly, driven by increasing mobile penetration, government initiatives, and investments in 5G infrastructure. The market is competitive, with both domestic and international players operating in various segments, including digital repeaters, active DAS, and related accessories.

Developments

1. Increased Focus on Indoor Coverage: With the growing importance of indoor mobile coverage, there is a rising demand for solutions like digital repeaters and DAS.

2. Government Initiatives: Initiatives like "Digital India", "Make in India" and "Product Linked Incentive" are promoting domestic manufacturing and innovation in the telecom sector.

3. Technological Advancements: Advancements in technologies like 5G, and AI are expected to drive innovation and growth in the telecom equipment manufacturing industry.

Frog Cellsats Position

Frog Cellsat, as a leader in the digital repeater and active DAS segments, is well-positioned to benefit from the growing demand for mobile coverage solutions in India. The companys strong brand value, focus on quality, and competitiveness are key strengths that enable it to maintain its market position.

Were proud to be part of the Government of Indias Design-led Production Linked Incentive scheme—not as beneficiaries, but as contributors to a larger vision of self-reliance in telecom. In fact, many of the OneDAS systems powering Indias new airports—from Navi Mumbai to Noida—are not just made in India. Theyre made with Indian design, engineering, and belief.

OPPORTUNITIES & THREATS: Opportunities:

1. Growing Demand for Mobile Coverage: Increasing mobile penetration and demand for seamless coverage in India present opportunities for Frog Cellsat to expand its customer base.

2. Indoor Coverage Solutions: Growing demand for indoor mobile coverage solutions presents opportunities for Frog Cellsat to expand its product offerings i.e. OneDAS.

Threats

1. Competition: Intense competition from domestic and international players in the telecom equipment manufacturing industry may impact Frog Cellsats market share.

2. Technological Obsolescence: Rapid technological advancements may render existing products obsolete, requiring Frog Cellsat to continuously innovate.

3. Regulatory Changes: Changes in telecom regulations or policies may impact Frog Cellsats operations or demand for its products.

SEGMENT / PRODUCT WISE PERFORMANCE:

Frog Cellsat is operating in a single segment and engaged into Digital Repeater, Active DAS and related accessories providing Mobile coverage solutions.

GROWTH OUTLOOK

Frog Cellsat is a leading organization having a strong focus on diversifying its portfolio to offer a wide range of both indoor and outdoor coverage.

Riding the Digital Superhighway:

Indias telecom landscape is undergoing a digital revolution—and FCL is perfectly positioned to ride this wave. With a suite of indoor and outdoor wireless solutions, the company is meeting the growing demand for connectivity, both in urban centers and remote geographies.

India: 2^nd largest telecom market in the world

27+ products covering RF, DAS, antennas, and more

National Security Council-certified trusted partner

Beneficiary of 660+ million under PLI Scheme

Powering Up with Product Expansion:

With the addition of a new SMT line, FCL is expanding into new sectors e.g. surveillance, and smart electronics. This move extends its capabilities beyond telecom, tapping into high-growth, adjacent markets.

SMT line launching in Noida

New products: SFPs, IP/CCTV Cameras, Power Adapters, ONTs

Broadband market expected to reach $35.85B by 2033

Video surveillance market to grow at 10%+ CAGR

Reaching New Customers, Building New Bridges:

From telecom giants to defence, from metro projects to overseas operators—FCL is rapidly expanding its customer base across verticals and geographies. This diversification brings stability, scale, and synergy.

Clients include: Airtel, Jio, Adani, Nokia, and more

Serving 6 distinct client segments

Expanding reach in Europe and Africa

RISKS AND CONCERNS:

The Company follows a structured Enterprise Risk Management (ERM) approach for managing the risks and keeps taking appropriate steps and controls under various department levels to minimize the risks. The company do not see any material risks, which require explanations.

INTERNAL CONTROL SYSTEMS:

The Company has structured the internal control system. In view of the size of the business and to enforce the highest levels of transparency, the Company has appointed an independent firm of Chartered Accountants, M/s. Rajan Gupta & Co. LLP, to act as the Internal Auditors of the Company covering nearly all aspects related to the working of the Company. The Company has paid particular attention to proper maintenance of equipment to ensure that it is operated at the rated capacity. The Company has taken the effective steps for the reduction of cost and to improve the quality of the product. The Company has in place adequate internal controls commensurate with the size and nature of its operations.

FINANCIAL PERFORMANCE

Financial performance of the Company has been given separately in the Directors Report.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

In FY25, we successfully delivered on our commitment to talent acquisition, development, and retention. With over 200 employees as of March 31, 2025, we continued to prioritize employee experience, ensuring our rapid growth didnt compromise our culture.

KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

S.No	Particulars	31st March 2025	31st March 2024	Variance
1	Inventory Turnover ratio	6.34	4.88	29.77%
2	Current Ratio	2.23	3.20	(30.55%)
3	Debt-Equity ratio	0.13	0.04	100.00%
4	Return on Equity (%)	16.24%	12.23%	32.78%
5	Net Profit ratio (%)	10.74%	9.58%	12.05%
6	Debt Service Coverage Ratio	51.91	50.60	2.60%
7	Trade Receivables Turnover ratio	3.99	5.37	(25.73%)
8	Trade Payables Turnover Ratio	6.65	8.79	-24.37%
9	Net Capital turnover ratio	3.68	2.88	27.71%
10	Return on Capital Employed (ROCE) (%)	19.29%	14.80%	30.35%
11	Return on Investment (ROI) (%)	NA	0.00	NA

Reasons for variations more than 25% as compared to previous year

1. The ratio decreased due to increase in current liabilities as compared to FY 2023-24. Current Assets of the company increased as compared to FY 2023-24. Increase in Current Liabilities was higher as compared to increase in Current Assets.

2. The increase is due to rise in short term borrowings for the current financial year.

3. The return on equity ratio increased due increase in Net Profit and share capital for the year.

4. The ratio increased due to increase in sales and average inventory during the year.

5. The Trade Receivables Turnover Ratio has decreased due increase in Trade Receivables

6. The ratio increased due to increase in the revenue and working capital for the year.

7. The Net Profit and capital employed have increased for the year ended March 31, 2025. The percentage of increase in Net profit is higher than percentage of increase in Capital Employed leading to rise in ROCE.