Future Market Networks Ltd Management Discussions

INDIAN ECONOMY

The Indian economy demonstrated resilience and steady growth throughout FY 2024-25, despite global headwinds such as geopolitical tensions, elevated interest rates, and supply chain disruptions. According to the Reserve Bank of India (RBI), Indias real GDP growth for FY 2024-25 is around 6.5%, driven by strong domestic demand, robust services sector performance, and government-led infrastructure investments.

India continues to be one of the fastest-growing major economies in the world. Key macroeconomic indicators such as stable inflation (below 5%), improving fiscal discipline, and a manageable current account deficit have strengthened the countrys economic fundamentals. The governments continued focus on ease of doing business, digitalization, and Make-in-India initiatives have further bolstered investor confidence.

The services sector—contributing over 50% of Indias GDP—remains a critical growth engine. Within this sector, the Diversified Commercial Services segment has seen rising demand across various domains such as professional services, IT-enabled services, consulting, staffing solutions, facilities management, and logistics support. The growing reliance on outsourcing, digital transformation, and regulatory compliance support by both public and private enterprises has opened up new revenue opportunities.

Looking forward, the Indian economy is expected to maintain its momentum, with projected growth rates of 6-7% for FY 2025-26, contingent on global macroeconomic conditions and domestic policy continuity.

Shopping malls continue to serve as integral hubs for community engagement, offering a comprehensive mix of retail, dining, entertainment, and experiential services under one roof. In recent years, malls have undergone a notable transformation—from being primarily shopping destinations to becoming multi-purpose lifestyle and entertainment centers.

The growth of mall management in India in 2024 appears to be a mixed bag, with a focus on adaptation and cautious optimism. Despite the challenges of e-commerce, reports suggest a rise in demand for quality retail spaces, particularly those with good management and a focus on experience. This indicates a potential for growth in the sector.

The Fashion & Retail segment recorded stable performance during the year, driven by strong consumer demand, improved product mix, and a focus on enhancing customer engagement. Strategic initiatives including brand partnerships, expansion of omni-channel presence, and operational efficiencies supported growth and reinforced the segments market position.

As of 2025, the continued expansion of e-commerce and digital-first consumer behavior poses an ongoing challenge to traditional mall-based retail models. The convenience, variety, and competitive pricing offered by online platforms have led to a structural shift in consumer preferences, impacting footfall and sales in brick-and-mortar retail outlets.

While malls have increasingly positioned themselves as experience-led destinations—combining shopping with dining, entertainment, and community engagement—there remains a risk for malls that rely heavily on traditional retail anchors, especially in the absence of diversification or adaptive reuse of space.

The business of construction and development is heavily dependent on the performance of the real estate market in India and could be adversely affected if market conditions deteriorate. The real estate market is significantly affected by changes in government policies, economic conditions, demographic trends, employment and income levels and interest rates, among other factors. The development of real estate projects involves various risks including regulatory risks, financing risks and the risks that these projects may ultimately prove to be unprofitable.

The mall management industry continues to operate in a dynamic and evolving landscape shaped by global economic uncertainties, supply chain disruptions, and increasing operational costs. Key industry challenges include shifting consumer preferences, rising attrition, counterfeit risks, and cybersecurity threats. The accelerated growth of e-commerce has intensified competition, compelling malls to transform into experience-centric destinations that go beyond traditional retail. Furthermore, the increasing presence of Exclusive Brand Outlets (EBOs) in Tier II and III cities, along with the sustained relevance of Multi-Brand Outlets (MBOs), underscores the importance of a well-curated tenant mix and differentiated offerings to drive sustained footfall and enhance customer engagement.

The acquisition of land and development rights needs substantial capital outflow. Inadequate funding resources and high interest costs may impact regular business and operations.

The Company is optimistically envisages its business plan on the robust Indian economy particularly the warehousing sector. Since the consumption pattern is intact, the company anticipates a vibrant business outlook in relation to retail shopping centres managed by the Company particularly during post pandemic periods.

The income from Operations for the Company has increased by 9.85% to INR 91.04 Crores in 2024-25 from INR 82.88 Crores in 2023-24.

Other Income has decreased to INR 5.85 Crores in 2024-25 from 14.61 Crores in 2023-24.

EBIDTA (including other income) (Adjusted effect of Ind AS -116) for 2024-25 was INR 103.38 Crores as compared to INR 33.25 Crores in 2023-24.

Manpower cost for 2024-25 was INR 7.99 Crores, which decreased from INR 8.75 Crores in 2023-24. In terms of percentage of Turnover, it has decreased to 8.78% for 2024-25 from 10.56% for 2023-24.

Other Expenses as a percentage of turnover has decreased to 23.16% in 2024-25 as compared to 42.86% in 2023-24.

Interest expenses for the year 2024-25 has decreased to INR 11.18 Crores from INR 14.69 Crores in 2023-24. In terms of percentage of Turnover, it has decreased to 12.28% for 2024-25 from 17.73% for 2023-24.

Depreciation cost as a percentage of turnover has decreased to 13.47% in 2024-25 from 14.82% in 2023-24.

The Companys Deferred Tax Asset (net) has reduced from INR 44.83 Crores in 2023-24 to INR 32.40 Crores in 2024-25. During the year, no current tax provision was made, while a deferred tax provision of INR 12.39 Crores was created (after writing back INR 0.05 Crores of earlier provision). Hence, the total tax expense for the year is INR 12.44 Crores.

As a result of the foregoing factors, profit before tax increased from INR 6.28 Crores in 2023-24 by 73.65 Crores to arrive at a profit of INR 79.94 Crores in 2024- 25.

The net worth of the Company has increased from INR 34.87 Crores as on March 31,2024 to INR 114.21 Crores as on March 31,2025. The increase in amount of net worth is on account of profit for the current year.

Income tax expense was INR 12.44 Crores for 2024-25 and INR 12.08 Crores for 2023-24.

As a result of the foregoing factors, the Company reported a net profit of INR 67.50 Lakhs in FY 2024-25, compared to a net loss of INR 5.8 Crores in the previous year.

Basic and Diluted EPS was INR 11.70 for 2024-25 and INR (1.01) for 2023-24.

The total standalone outstanding borrowing is INR 79.08 Crores as on March 31,2025 and 86.99 as on March 31,2024.

Cash and Bank balance decreased to INR 8.35 Crores as of March 2025 from INR 8.39 Crores as of March 2024.

Total Investment of the Company was INR 55.22 Crores as of March 2025 and INR 52.71 Crores as of March 2024.

The Companys current assets primarily consist of debtors, investment in liquid fund, inventories, cash and bank balances, loans and advances and other current Assets. Total current assets as on March 31,2025 were INR 75.72 Crores as against March 31, 2024 were INR 70.38 Crores.

The Companys current liabilities primarily consist of short term borrowings, trade payables, short term provisions and other current liabilities. Total current liabilities as on March 31,2025 was INR 62.71 Crores as against March 31,2024 was INR 167.60 Crores.

Net Profit Margin incresed by 81.14% in 2024-25 as compared to 2023-24.

Return on Net Worth increased from 16.63% in 2023-24 to 59.10% in 2024-25.

The debtor turnover ratio increased from 6.48 in 2023-24 to 11.49 in 2024-25.

The current ratio increased from 0.42 in 2023-24 to 1.21 in 2024-25.

Your Company has a proper and adequate system of Internal Controls, to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that transactions are authorized, recorded and reported correctly.

The internal control system is supplemented by extensive internal audits, regular reviews by management and well-documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statements and other data. Moreover, the Company continuously upgrades these systems in line with best accounting practices. The Company has independent audit systems to monitor the entire operations and the Audit Committee of the Board review the findings and recommendations of the internal auditors.

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potentials of its employees. The industrial relations across different locations of the Company were cordial during the year. The Company has, over the last few months, built the team necessary to be able to build and execute the vision that has been articulated in the preceding paragraphs. The total number of employees of the Company as on March 31,2025, stood at 44.

Statements in Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forwardlooking within the meaning of applicable securities law and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include stiff competition leading to price-cuts, high volatility in prices of major inputs such as steel, cement, building materials, petroleum products, change in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations