Genus Prime Infra Ltd Management Discussions

(Forming part of Directors Report)

World Economy-An Insight

The global economy in 2025 is characterized by moderate growth, with organizations like the IMF and OECD projecting around 3.0-3.3% growth, driven by factors like eased inflation, improving financial conditions, and front-loading of trade ahead of tariffs. However, significant risks remain, including the potential for more tariffs, geopolitical instability, persistent inflation in some economies (like the U.S.), and high debt levels, which continue to weigh on economic activity and require ambitious structural reforms.

The global economy is facing substantial headwinds, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the weak outlook limits their ability to boost job creation and reduce extreme poverty. This challenging context is compounded by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable global trade environment and scale up support for vulnerable countries, including those in fragile and conflict situations. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To unlock job creation and long-term growth, reforms should focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets.

Global economic activity is expected to maintain modest but uneven momentum. It is projected that global real GDP growth will decelerate to around 3.0% in 2025 and 2.9% in 2026, following a 3.2% advance in 2024, as rising trade frictions, persistent geopolitical and policy uncertainty, elevated market volatility, and inflation divergence reshape the global outlook. Regional growth patterns have become more fragmented, with developed markets losing steam and emerging markets showing varied resilience.

In developed markets, real GDP growth is expected to moderate to around 1.3% in 2025 and 2026, following a 1.8% advance in 2024. The US economy will no longer be the outperformer, with real GDP growth expected to decelerate from 2.8% in 2024 to 1.5% and 1.3% in 2025 and 2026, respectively. The impact of higher tariffs will be on full display in coming months with subdued private sector sentiment, higher inflation, softening labor market conditions, margin pressures, reduced business investment and weakening consumer demand.

Indias economy is currently the worlds fourth-largest, having recently surpassed Japan, and is the fastest-growing major economy globally. Driven by strong domestic demand, robust sector-specific growth (especially in the tertiary and manufacturing sectors), and supportive policy reforms, Indias real GDP grew by an impressive 7.8% in Q1 FY25-26. The economy is on a strong upward trajectory, projected to reach USD 5 trillion by 2027 and surpass Germany to become the worlds third-largest economy in the coming years.

The Indian economy will likely to grow 7% in FY 2025, despite a slowdown to 6.7% in Q1 FY 2025, which marked the lowest growth rate in five quarters. This optimistic forecast is driven by strong underlying growth momentum and the narrowing of key economic data gaps.

Indias economic journey over the past few years has been marked by remarkable growth and a steady rise in its position on the global stage. After overtaking the United Kingdom (UK) to become the fifth largest economy in Q1 FY23, India has continued this upward trajectory to surpass Japan in June 2025 to become the fourth largest economy in the world. With a nominal Gross Domestic Product (GDP) of Rs.

3,31,03,000 crore (US$ 3.78 trillion), Indias growth reflects a combination of strong domestic demand and policy reforms positioning the country as a key destination for global capital.

Over the years, the Indian government has introduced many initiatives to strengthen the nations economy. The Indian government has been effective in developing policies and programmes that are not only beneficial for citizens to improve their financial stability but also for the overall growth of the economy.

The Company continues to focus on controllable factors such as resetting cost base through diverse cost optimisation initiatives, disciplined capital investments, working capital initiatives, marketing initiatives & volume with strong control measures to ensure safe operations across businesses within framed government and corporate guidelines.

The following are relevant financial performance details with respect to the operational performance of the Company. Salient features relating to the Profit & Loss Account:

The Company understands that in order to ensure consistent business growth, it is indispensable the risk be effectively identified, analysed and is exposed to a number of risks such as economic, regulatory, taxation and environmental risks as well as sectoral investment outlook. Some risks that may arise in the normal course of business and could impact their ability to address future developments, comprise credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. New risks such as foreign countries wars have also emerged which could affect the business of the Company. The Companys strategy of focusing on key products and geographical segments is exposed to economic and market conditions.

The Companys internal control system is commensurate with the nature, size and complexities of operations. The internal control system ensures compliance with all applicable laws, regulations and facilitates optimum utilization of available resources and protects the interests of all stakeholders.

The Company has a proper and adequate system of internal controls to ensure that all resources are utilized optimally, compliances are done regularly and financial reports are accurate. The internal control system is supplemented by an internal audits, review by management and documented policies, guidelines and procedures. The Statutory Auditors of the Company also interact with the Audit Committee to share their findings and the status of corrective actions under implementation. The Audit Committee regularly evaluates the internal financial controls and risk management systems of the Company.

The Company believes that it is imperative to build a highly efficient talent pool to deliver its business goals. Commensurate with its growth plan, it has put enhanced focus on ramping up the organizational capabilities to align with its growth plans.

Your Company lays great emphasis on proper management of human resource and recognizes human assets as a primary source for the accomplishment of its long term goals and objectives. Your Company has qualified and experienced staff, ready to take challenges in day-to-day activities. Their unfailing and on-time performance allows us to run the Company smoothly.

Statements in the Management Discussion and Analysis Report describing the

Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.