IB Infotech Enterprises Ltd Management Discussions

MANAGEMENT DISCUSSION

Economy

The global economy continues to navigate a complex landscape marked by uneven recovery and persistent uncertainties. While some advanced economies have shown resilience, growth remains subdued amid lingering inflationary pressures, geopolitical tensions, and tightening financial conditions. The recovery momentum has been further impacted by structural fiscal challenges and fluctuating consumer sentiment, particularly in key developed markets.

Amid these headwinds, the ongoing rebalancing of economic influence from developed to emerging markets has gained further traction. Emerging economies, driven by demographic advantage and digital transformation, are playing an increasingly significant role in global growth. However, the overall environment remains fragile, with elevated risks of volatility and constrained global capacity to address systemic disruptions. As a result, low and uneven growth is expected to persist in the near to medium term.

Performance:

During the financial year under review, the Company delivered a strong and steady financial performance, reflecting consistent growth across key financial parameters. This performance is a result of focused strategic execution, disciplined cost control, and sound financial governance, enabling the Company to navigate a dynamic and challenging macroeconomic environment effectively.

Total Income:

The Company reported a total income of 656.87 Lacs for FY 2024 25, representing a healthy year-on-year growth of 11.47% over the previous years income of 589.28 Lacs. This growth underscores the Companys ability to enhance revenue streams and drive operational efficiency.

Profit Before Tax (PBT):

Profit Before Tax stood at 99.32 Lacs, marginally higher than the previous years 98.52 Lacs. This reflects the Companys resilience and ability to maintain profitability despite economic headwinds.

Net Profit:

The Company recorded a Net Profit of 74.12 Lacs for the year, compared to 73.17 Lacs in the previous year. This slight improvement highlights the sustained strength of the Companys core business operations.

The Companys consistent performance a mid external uncertainties reinforces its commitment to long-term value creation, financial prudence, and operational excellence.

Internal control systems:

The internal control system is looked after by the executive directors themselves, who also look after the day to day affairs of the Company to ensure compliance of guidelines and policies, adhere to the management instructions and policies to ensure improvements in the system. The internal audit reports are regularly reviewed by the management.

Financial management and financial performance:

The Company continues to maintain a stable financial position, supported by disciplined financial management and a focus on operational efficiency. Management remains committed to enhancing long-term shareholder value through sustainable growth and prudent deployment of resources.

Efforts towards improving profitability, optimizing cost structures, and strengthening the balance sheet are expected to positively impact key financial ratios such as Net Profit Margin, Return on Capital Employed (ROCE), and Return on Net Worth in the coming years. These initiatives are aimed at reinforcing the Companys financial resilience and creating a strong foundation for future performance, without the need for any financial restructuring at this stage.

Environmental issues:

As the company is not carrying on any manufacturing activity, the matter relating to produce of harmful gases and the liquid effluents are not applicable.

Statutory compliances:

Being a responsible legal entity, the company has duly complied with all the compliances with all the regulatory authorities during the year under review.

Significant Changes:

There were no significant changes in key financial ratios as compared to the immediately previous financial years.

Caution:

Statements which are based on and describe about managements expectations, estimates, projections, objectives, intentions and assumptions are forward looking statements. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, segment performance, cash flows. Forward-looking statements are made pursuant to the Companies Act, 2013, securities laws and all other applicable acts, statues, rules and regulations as amended from time to time. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what was forecasted in forward-looking statements, expressed or implied.

The Company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this report.

For and on behalf of the Board of Directors For IB Infotech Enterprises Limited

Place: Mumbai Rita Singh Jasmin Parekh Date: May 13, 2025 DIN: 01988709 DIN: 06507112 W. T. Director Director