Identixweb Ltd Management Discussions

COMPANY OVERVIEW:

Incorporated in 2017, Our Company, as an IT firm, is involved in providing Software as a service (SAAS) -based digital product solutions. Our Company offers E-Commerce Store Development, Web App Development, UI/UX Design, Website development, Customize Software Development, support and maintenance with a primary focus on Shopify application development. The primary goal of our company is to deliver applications online, eliminating the need for installation and maintenance. This approach simplifies software management. Our products include more than 10 Shopify applications that are conversion-optimize and tailored made to meet customer needs. We provide our products and services worldwide across a wide range of sectors. Our company specializes in Shopify application development, which focuses on creating applications that enhance the functionality and performance of Shopify stores. These application scan range from tools that improve store management and customer engagement to features that optimize sales and streamline operations. Shopify is a leading e-commerce platform that powers over a million businesses worldwide. Its flexibility and scalability make it an ideal choice for businesses of all sizes. However, to truly maximize the potential of a Shopify store, merchants often need custom applications that cater to their specific needs. Our extensive experience and deep understanding of the shopify platform enable us to deliver top-tier Shopify solutions. We are committed to ensure that all our services are executed with the highest level of precision and customer satisfaction. Our dedication to excellence has earned us a reputation for delivering innovative, reliable, and efficient Shopify solutions that help merchants achieve their business goals.

GLOBAL MACROECONOMIC SCENARIO:

The global economy is projected to experience a deceleration in growth, with global GDP expanding by 2.8% in CY 2025, down from 3.3% in CY 2024. This slowdown is attributed to escalating trade tensions, particularly due to new U.S. tariffs, and heightened policy uncertainties. Global headline inflation is expected to decline to 4.3% in CY 2025 and further to 3.6% in CY 2026, as inflationary pressures ease across advanced economies, aided by tighter monetary policy, improved labour market conditions, and the resolution of supply disruptions. However, global trade growth is forecasted to slow significantly to 1.7% in CY 2025, reflecting the effects of escalating trade barriers and geopolitical instability. In China, economic prospects remain constrained as the IMF downgraded its CY 2025 GDP growth forecast to 4.0%, due to persistent challenges in the real estate sector, weak consumer demand, and trade-related pressures. In Europe, growth is expected to stagnate, with Germanys GDP forecast at 0.0% in CY 2025, amidst trade disruptions and domestic weaknesses. The EU is actively seeking to address these challenges through renewed trade dialogue with the U.S. Meanwhile, India continues to show resilience, with the IMF projecting stable real GDP growth of 6.2% in CY 2025, followed by a slight uptick to 6.3% in CY 2026. This is supported by robust rural consumption and sustained infrastructure investment. The IMF notes that India remains one of the fastest-growing major economies, driven by favourable demographics, expanding digital infrastructure, and rising investment activity. Consumer price inflation in India is projected to moderate to 4.2% in CY 2025, staying within the Reserve Bank of Indias (RBI) target range of 2 6%, which helps maintain purchasing power and economic stability. The IMF also highlights the importance of continued structural reforms in India, particularly in labour markets, logistics, and capital formation, to sustain medium-term growth momentum. Overall, while inflation is declining globally, the economic outlook remains clouded by geopolitical uncertainty, trade fragmentation, and region-specific structural challenges. However, Indias relative macroeconomic stability, demographic advantage, and ongoing investment cycle place it in a strong position amid global headwinds.

Global GDP Growth Scenario

The global economy began to recover from its lowest levels following the lifting of lockdowns in 2020 and 2021. The pandemic-induced lockdown was a key factor that severely disrupted economic activities, leading to a recession in CY 2020, where global GDP contracted by -2.7%. In CY 2021, supply chain disruptions significantly impacted both advanced economies and low-income developing economies. The rapid spread of the Delta variant and the threat of new variants in mid-2021 further heightened uncertainty in the global economic environment. Global economic activity saw a sharper-than-expected slowdown in CY 2022. The highest inflation in decades, observed in 2022, forced most central banks to tighten their monetary & fiscal policies. Russias invasion of Ukraine exacerbated global food supply issues, further increasing the cost of living.

Despite initial resilience in early CY 2023, marked by a rebound from the pandemic and progress in curbing inflation from the previous years highs, the situation remained precarious. Economic activity continued to lag its pre-pandemic trajectory, especially in emerging markets and developing economies, leading to widening regional disparities. Several factors impeded recovery, including the lasting impacts of the pandemic, geopolitical tensions, tightening monetary policies to combat inflation, reductions in fiscal support amid high debt levels, and extreme weather conditions. As a result, global growth slowed from 3.6% in CY 2022 to 3.5% in CY 2023. The global economy maintained moderate momentum in CY 2024, with real GDP growth estimated at 3.3%, supported by easing inflationary pressures, recovering supply chains, and resilient consumer demand in some major economies. Advanced economies, particularly the U.S., benefitted from strong labour markets and improved private consumption. However, growth remained uneven across regions, with emerging markets facing tighter financial conditions and subdued export demand. Inflation declined faster than anticipated in many regions, enabling some central banks to consider gradual monetary easing by the end of the year.

Historical GDP Growth Trends

Note: Advanced Economies and Emerging & Developing Economies are as per the classification of the World Economic Outlook (WEO). This classification is not based on strict criteria, economic or otherwise, and it has evolved over time. It comprises of 40 countries under the Advanced Economies including the G7 (the United States, Japan, Germany, France, Italy, the United Kingdom, and Canada) and selected countries from the Euro Zone (Germany, Italy, France etc.). The group of emerging market and developing economies (156) includes all those that are not classified as Advanced Economies (India, China, Brazil, Malaysia etc.)

F Forecast, Source IMF World Economic Outlook April 2025

In the current scenario, global GDP growth is projected to decelerate to 2.8% in CY 2025, reflecting mounting economic pressures across both advanced and emerging markets. This marks a significant slowdown driven by intensifying trade fragmentation, the impact of new U.S. tariffs, and elevated geopolitical tensions. Structural weaknesses such as the ongoing real estate crisis in China, stagnant growth in the Eurozone, and tight financial conditions in major economies are expected to weigh heavily on global output. Additionally, stress in housing and banking sectors, coupled with subdued industrial activity, is contributing to a muted growth outlook. On the inflation front, the IMF projects global headline inflation to decline to 4.3% in CY 2025, Continuing a disinflationary trend as energy prices stabilize and supply-side disruptions ease. The softening of labour markets reflected in lower job vacancy rates and modest increases in unemployment is also expected to help reduce core inflation. This provides room for some central banks to initiate cautious interest rate cuts, although the broader economic outlook remains uncertain due to persistent global risks.

Global Economic Outlook

At the midpoint of the year, so far in 2025 the global economy continues to exhibit mixed performance, with divergence in outcomes across regions due to differences in economic growth, inflation dynamics, and policy responses. The global GDP growth is projected at 2.8% in CY 2025, down from an estimated 3.3% in CY 2024. While short-term prospects have improved since early 2024 due to easing inflation and gradual loosening of monetary policy in several regions, the broader environment remains challenging. Structural headwinds, such as tighter credit conditions, supply-side bottlenecks, and lingering geopolitical risks, are keeping global growth below historical averages. The United States has continued to outperform other advanced economies, with growth projected at 1.8% in 2025, though slightly down from 2.8% in 2024, as the economy absorbs the lagged effects of previous monetary tightening and persistent inflation. In contrast, the Euro Area remains subdued, with GDP growth expected to 0.8% in 2025, supported by the European Central Banks first-interest rate cuts since 2019 (implemented in June 2024) and stronger domestic demand. However, countries like Germany, France, and Italy continue to struggle due to weak manufacturing performance, whereas Greece and Spain have benefited from robust tourism activity. In China, growth has held up at a projected 4.0% for CY 2025, supported by targeted stimulus and a gradual recovery in the real estate sector. Growth in the rest of Asia is also benefiting from a revival in global trade and domestic demand. India remains one of the strongest performers globally, with GDP growth forecasted at 6.2% in 2025, supported by robust consumption, capital investment, and favourable demographics.

In Latin America and the Caribbean, growth is more uneven. Larger economies like Brazil and Mexico are seeing moderate expansions, but the overall regional outlook is weaker, with GDP growth forecast at 2.0% in 2025, due to external headwinds, commodity price volatility, and political uncertainty. Meanwhile, Sub-Saharan Africas growth is expected to slow slightly to 3.8%, as global financial conditions tighten, and oil-exporting nations face declining revenues. The Middle East and North Africa (MENA) region is also seeing tempered prospects, with growth revised down to 2.6%, influenced by lower oil prices and ongoing geopolitical pressures. Globally, industrial production has remained sluggish through the first half of 2025, constrained by high interest rates, trade fragmentation, and lingering supply chain disruptions. However, a mild recovery is anticipated in the second half of the year as global trade stabilizes and domestic demand for goods strengthens. Central banks in several advanced economies including the Eurozone, Switzerland, Sweden, and Canada have begun cutting rates to support demand, though inflation trends remain uneven. Disinflation has progressed slower than expected, particularly in services and wage-heavy sectors, making monetary easing cautious and data-dependent. Overall, the global economy appears to be stabilizing, but growth in CY 2025 remains below historical averages. Advanced economies continue to grow modestly under the weight of tight policies and weak external demand, while emerging markets, particularly in Asia, show stronger but slowing momentum. The outlook for the remainder of 2025 depends significantly on geopolitical developments, the trajectory of inflation, and the pace of monetary easing.

INDIAfS MACROECONOMIC SCENARIO: Gross Domestic Product (GDP)

India Expected to Grow at Twice the Pace of Global Economic Growth

The global economy continues to face persistent challenges, including the lingering effects of the COVID-19 pandemic, heightened geopolitical tensions, and climate-related disruptions that have affected energy and food supply chains. Global real GDP growth is projected at 2.8% in 2025, indicating a moderation in global momentum.

Notes: P-Projection; Source: IMF World Economic Outlook, April 2025

In contrast, Indias real GDP is projected to grow at 6.2% in 2025, continuing its trend of significantly outpacing global averages and reaffirming its position as the fastest-growing major economy. This implies that India is expected to grow at more than twice the pace of global GDP, supported by strong domestic demand, structural reforms, and increased infrastructure investment. Indias resilience among the G20 economies further strengthens its role as a key driver of global economic growth in the coming years.

Indiafs Economic Growth Momentum Remains Strong, Poised to Surpass USD 4 Trillion by 2025:

In FY 2024-25, India was the fifth-largest economy globally, with an estimated real Gross Domestic Product (GDP) at constant prices of 184.88 lakh crore, against the Provisional Estimate of GDP for the year 2023-24 of 173.82 lakh crore registering a GDP growth rate of 6.4% as compared to 8.2% in FY 2023-24. Since FY 2005, Indias GDP growth has consistently outpaced global economic growth, often growing at nearly twice the global average, and this trend is expected to continue over the medium term.

Source: MOSPI, first advance estimates of GDP 2024-25 released on January 7th, 2025

India and Top 5 Global Economies GDP Growth Forecast

In September 2024, India achieved a significant milestone by overtaking Japan to become the third most powerful nation in the Asia-Pacific region, as per the Asia Power Index 2024. Indias overall score rose to 39.1, reflecting a 2.8-point increase from the previous year, driven by growing influence across economic, military, and diplomatic dimensions. Key factors behind Indias rise include its strong economic performance, expanding and youthful workforce, and increasing strategic engagement across the region. Indias Economic

Capability improved significantly, supported by its position as the worlds third-largest economy in terms of purchasing power parity (PPP). Additionally, a notable increase in its Future Resources score highlights the demographic advantage that is expected to sustain its growth trajectory in the coming years.

INDUSTRY OVERVIEW - GLOBAL AND INDIAN:

The global technology landscape is undergoing a profound transformation, shaped by economic realignments, policy shifts, and digital reinvention across industries. In the aftermath of pandemic-induced digitization and against the backdrop of volatile geopolitical conditions, Information Technology (IT) has emerged not just as a sector but as a structural enabler of economic resilience, continuity, and innovation. Global IT spending remains tethered to broader macroeconomic cycles. Inflationary pressures, rising interest rates, and constrained fiscal space across economies have led enterprises to reassess cost structures, while simultaneously accelerating cloud adoption, automation, and platform-led service delivery. In 2024 25, trade uncertainties, tariffs, and capital tightening are reshaping outsourcing decisions and cross-border digital delivery models. Yet, the sector continues to demonstrate adaptability, with digital transformation budgets remaining resilient even amid GDP downgrades. The IT sector today spans a complex, interconnected ecosystem: traditional application development, enterprise resource planning (ERP), cloud-native engineering, AI/ML services, SaaS platforms, cybersecurity, and business process management (BPM). Its relevance cuts across every vertical from BFSI and healthcare to retail, logistics, manufacturing, and government. As industries pivot to digital-first operating models, IT services are no longer a cost centre they are strategic infrastructure. India, with its deep talent pool, expanding Global Capability Centres (GCCs), and government-backed digital architecture (India Stack, ONDC, DPDP Act), continues to anchor a significant share of global IT delivery. Export momentum, though moderated by macro headwinds in key markets like the US and EU, remains structurally intact. Simultaneously, domestic digital adoption across startups, enterprises, and public platforms is unlocking new demand frontiers for software product companies and full-stack IT integrators. Looking ahead, the global IT sector will be shaped by the interplay between economic normalization and technological acceleration. Amid tightening budgets, clients are demanding faster ROI, outcome-based pricing, and integrated solutions powered by automation and analytics. In response, IT firms are evolving into transformation partners offering full-cycle services, strategic advisory, and IP-led digital platforms. The winners will be those who can combine engineering excellence with domain specialization and operational agility. Much like the core infrastructure that enables economies to function in volatile times, the IT sector forms the backbone of global digital resilience empowering institutions to adapt, operate, and compete in a world defined by speed, uncertainty, and scale.

Market Segmentation

The Information Technology Business Process Management (IT BPM) sector is highly diversified, segmented across multiple dimensions based on service type, end-user industries, delivery models, and emerging value-added offerings. Each segment plays a pivotal role in driving enterprise digital transformation, operational scalability, and global competitiveness.

Global IT BPM Industry

The global Information Technology and Business Process Management (IT BPM) industry has emerged as a foundational pillar of the digital economy, transforming how businesses operate, interact, and scale. As enterprises accelerate their digital transformation journeys, the demand for cloud computing, automation, artificial intelligence, and agile software development has surged, positioning IT BPM as a critical enabler of productivity, innovation, and global competitiveness. The global IT BPM market is estimated at USD 4937.8 Billion in 2025 and is projected to reach USD 9,749.28 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.81% during the forecast period. This expansion is underpinned by structural shifts in enterprise IT spending, workforce virtualization, and the increasing reliance on digital infrastructure to drive operational resilience.

KEY GROWTH DRIVERS:

1. Digital Transformation across Industries

The pandemic accelerated enterprise adoption of digital tools, making IT BPM services indispensable across sectors. Organizations in healthcare, banking, manufacturing, retail, and government are integrating IT services to digitize operations, enhance service delivery, and reduce legacy dependencies. End-to-end digital transformation mandates are fuelling demand for application development, systems integration, and consulting services at scale.

2. Shift to Cloud-First Architectures

The global transition from on-premises infrastructure to cloud-native models has redefined enterprise IT priorities. As-a-Service models Infrastructure (IaaS), Software (SaaS), and Platform (PaaS) have enabled businesses to scale operations with agility and cost-efficiency. This shift has also increased demand for cloud migration, cloud security, DevOps, and container orchestration capabilities from IT BPM providers.

3. AI, Automation, and Data Intelligence

Advanced analytics, robotic process automation (RPA), and AI-powered solutions are now embedded in mainstream IT BPM offerings. Clients expect intelligent automation to improve customer experience, reduce turnaround times, and drive operational excellence. This has opened high-growth sub-segments in cognitive services, machine learning ops, predictive analytics, and AI/ML engineering.

4. Cybersecurity and Regulatory Compliance

With rising cyber threats and evolving data privacy regulations (e.g., GDPR, HIPAA), cybersecurity has become a top boardroom priority. IT BPM vendors are expanding their cybersecurity portfolios to offer risk assessment, endpoint protection, identity and access management (IAM), and managed security services tailored to different jurisdictions.

5. Remote Workforce Enablement

Hybrid and remote work models have expanded the need for secure digital workplace solutions, unified communications, collaboration platforms, and virtual desktop infrastructure (VDI). IT BPM firms are now critical in enabling this distributed workforce model, ensuring continuity, resilience, and productivity for globally dispersed teams.

6. Platformization and Verticalized Offerings

Clients increasingly demand vertical-specific IT services such as fintech platforms for banking, edtech solutions for education, or digital health for healthcare. As a result, the IT BPM industry is witnessing a rise in platformization, where companies build reusable technology stacks customized for domain-specific use cases.

REGIONAL INSIGHTS: ? Asia-Pacific (APAC)

APAC is the fastest-growing region for IT BPM services, driven by a large talent pool, rapid digitalization, and cost-competitive delivery centers. Countries like India, the Philippines, Vietnam, and Malaysia are global outsourcing hubs for voice support, software development, and back-office services. Government incentives, startup ecosystems, and strong STEM education systems continue to fuel regional competitiveness.

? North America

North America remains the largest and most mature IT BPM market, with enterprises prioritizing digital modernization, AI adoption, and cybersecurity investments. The U.S. leads in innovation-driven demand, especially in cloud computing, autonomous systems, financial technologies, and enterprise SaaS. High demand for consulting-led IT transformation makes it a key revenue geography for global service providers.

? Europe

Europes IT BPM landscape is shaped by strong regulatory frameworks, sustainability mandates, and increasing demand for digital public services. Countries such as Germany, the UK, France, and the Nordics are investing heavily in automation, digital identity infrastructure, and AI governance. Compliance-heavy industries like banking, insurance, and healthcare are major demand drivers in the region.

? Middle East & Africa (MEA)

MEA is witnessing a surge in IT infrastructure development and smart government initiatives. Countries like the UAE, Saudi Arabia, and South Africa are focusing on tech-driven economic diversification. IT BPM opportunities are expanding in areas like e-governance, smart cities, cloud services, and cybersecurity. Regional governments are also investing in digital skilling to build a future-ready workforce.

? Latin America

Latin America is an emerging player in the IT BPM industry, gaining traction as a nearshore delivery hub for North American clients. Countries like Brazil, Mexico, Colombia, and Argentina offer a blend of cost-effectiveness and Spanish/Portuguese language support. The regions growing startup ecosystem and improving connectivity are fuelling demand for software development, app modernization, and shared services. The global IT BPM industry is poised for continued evolution, driven by automation, cloud-native architectures, decentralized workforces, and vertical-specific digital solutions. As clients increasingly demand value-based, outcome-oriented partnerships, service providers are reimagining delivery models, co-innovation frameworks, and domain-focused capabilities to stay ahead in a rapidly changing landscape.

INDIAN FACILITY MANAGEMENT INDUSTRY: Current Market Size and Historical Growth

The Indian Information Technology and Business Process Management (IT BPM) industry stands as one of the countrys most strategic growth engines, contributing significantly to export earnings, employment generation, and GDP expansion. India has emerged as the global epicentre for IT services, BPM operations, engineering R&D, and digital transformation capabilities serving clients across more than 100 countries.

The Indian IT BPM sector was valued at USD 282.6 billion (provisional estimates) in FY2025, with exports contributing USD 224.4 billion and the domestic market accounting for USD 58.2 billion. As per NASSCOM, the sector is projected to surpass USD 300 billion by FY2026. This positions the industry as one of the foremost drivers of Indias service exports highlighting its balanced growth across both global and domestic demand fronts. Over the past decade, the industry has sustained a compound annual growth rate (CAGR) of approximately 5.71%, driven by rising global demand for IT services, process outsourcing, and engineering solutions, alongside accelerated digital adoption within India. This sustained expansion reflects a structural transformation in the Indian economy from traditional industry-led growth to a digitally enabled, service-driven model that is now core to Indias economic and export competitiveness. Indias IT BPM industry has evolved from a back-office support provider to a global transformation partner delivering cloud services, AI/ML integration, SaaS platforms, cybersecurity, and platform engineering. Today, Indian IT firms cater not only to Fortune 500 clients but also to digital-native startups, government agencies, and sector-specific enterprises, driving innovation across industries.

GOVERNMENT INITIATIVES AND POLICY SUPPORT:

Indias IT-BPM sector stands at a transformative inflection point, bolstered by cohesive policy direction, targeted incentives, and structural digital infrastructure investments. The Government of India has adopted a whole-of-economy approach to position technology as both a growth multiplier and a strategic export engine. National programs from AI infrastructure to DPI platforms are embedding technology across governance, commerce, and social services, creating sustained long-term tailwinds for IT-BPM players.

1. Union Budget FY2025 26 Digital India 2.0 and AI as Core Infrastructure

The Union Budget FY2025 26 institutionalized a digital-first economic architecture. Beyond infrastructure, the budget placed decisive emphasis on deep tech, cyber resilience, and skill enablement.

2. Digital Public Infrastructure (DPI) Foundational Stack for Tech Expansion

Indias globally benchmarked Digital Public Infrastructure (DPI) comprising Aadhaar, UPI, DigiLocker, ONDC, and CoWIN is now being expanded across sectors including healthcare, logistics, education, and agriculture. This rollout provides a massive springboard for IT-BPM firms to build middleware, APIs, data analytics engines, and sector-specific digital solutions.

3. PLI Scheme for IT Hardware and AI Startups

The Production Linked Incentive (PLI) schemes for IT hardware, semiconductor design, and AI-linked innovations are structurally reshaping Indias tech manufacturing and IP ecosystem. Approved vendors under the scheme receive capital support, tax benefits, and accelerated regulatory clearances.

4. Implications for the IT-BPM sector:

Domestic hardware and device ecosystem expansion will drive local demand for embedded software, firmware development, and managed IT services.

5. Smart Cities, e-Governance & Tech-Enabled Governance

The Smart Cities Mission, AMRUT 2.0, and broader urban digitization efforts continue to generate demand for large-scale e-governance IT projects. From GIS integration and traffic optimization to citizen service portals and utility automation, Indian IT firms are key vendors executing these projects under public-private models.

6. Skilling, Reskilling & Digital Workforce Expansion

National Skill Development Mission and FutureSkills Prime are building industry-relevant tech competencies in areas like cloud, AI, blockchain, and cybersecurity.

7. Cybersecurity and Data Protection Ecosystem Reform

The enactment of the Digital Personal Data Protection Act (DPDP Act) and ongoing work on the National Cybersecurity Strategy are expected to significantly raise compliance thresholds and create demand for cybersecurity-as-a-service offerings.

8. Global Positioning Through Bilateral Tech Alliances

Indias strategic positioning in the global tech value chain is being reinforced through: Bilateral digital partnerships with countries like Japan, the US, the UK, and Australia.

Frameworks for cross-border data flows, digital trade facilitation, and mutual recognition of tech certifications. These alliances directly benefit IT-BPM players through preferential market access, FDI inflows, and co-development mandates.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE & DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The company is primarily engaged in the business of Corrugated Plastic Sheets, which constitute a single reportable segment in accordance with Ind AS 108 "Segment Reporting".

FINANCIAL PERFORMANCE In Lakh

PARTICULARS	Standalone		Consolidated
	F.Y. 2024-25	F.Y. 2023-24	F.Y. 2024-25	F.Y. 2023-24
Revenue from Operations	853.38	632.90	909.32	633.36
Add: Other Income	45.80	26.80	12.13	32.89
Total Income	899.19	659.70	921.45	666.25
Less: Total Expenses before Depreciation,	245.24	286.27	316.24	304.38
Finance Cost and Tax
Profit before Depreciation, Finance Cost and Tax	653.95	373.43	605.21	361.87
Less: Depreciation and amortization expense	78.95	80.35	108.81	81.67
Less: Finance Cost	0.00	5.43	0.00	6.82
Profit Before Extraordinary &	575.00	287.64	496.41	273.38
Exceptional Items and Tax
Add: Extraordinary & Exceptional Items	4.17	75.00	4.17	75.00
Net Profit Before Tax	579.17	362.64	500.58	348.38
Less: Tax expenses	167.91	91.75	167.91	91.75
Net Profit After Tax	411.26	270.90	332.67	256.63

Financial Performance - On Standalone Basis

During the year under review, the revenue from operation of the Company was stood at 853.38 Lakhs as against that of 632.90 Lakhs for previous year. The primary reason for increase revenue was increase in supply of services. During FY 2024-25, the Company generated revenue of 220.36 Lakhs as against that of 39.23 Lakhs during FY 2023-24. Our company provides a wide range of development services beyond Shopify, through Node.js, PHP, and React.js development across world. Profit before Tax for the financial year 2024-25 stood at 579.17 Lakhs as against Profit before Tax of 362.64 Lakhs for the financial year 2023-24. The primary reason for increase in Profit before Tax was increase in revenue. The net profit of 411.26 Lakhs for the financial year 2024-25 as against the net profit of 270.90 Lakhs for the financial year 2023-24.

Financial Performance - On Consolidated Basis

During the year under review, the total revenue of the Company was stood at 909.32 Lakhs as against that of 633.36 Lakhs for previous year. Revenue from operation of the Company was increased by 34.84% over previous year. The primary reason for increase revenue was increase in supply of services. During FY 2024-25, the Company generated revenue of 276.29 Lakhs as against that of 39.68 Lakhs during FY 2023-24. Profit before Tax for the financial year 2024-25 stood at 500.58 Lakhs as against Profit before Tax of 348.38 Lakhs for the financial year 2024-25. The primary reason for increase in Profit before Tax was increase in revenue. The net Profit of the Company (after adjustment of minority interest) was 371.98 Lakhs for the financial year 2024-25 as against the net Profit of 263.76 Lakhs for the financial year 2023-24.

RISK AND CONCERNS

The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Companys future growth prospects and cash flow generation could be materially impacted by any of these risks or opportunities. The major risks as identified by the Company are demand-risks due to any resurgence in the COVID 19 pandemic, currency risk associated with imports, unfair competition, etc. The Company follows the Enterprise Risk Management (ERM) framework to manage and mitigate such risks which is primarily based on the integrated framework for enterprise risk management and internal controls developed by the Company. The other risks have already been discussed under "Threats & Risks" of this MDA Report.

WEAKNESSES

Despite steady growth and a strong service portfolio, the Company faces certain challenges in the areas of resource allocation and scalability. At times, limited availability of skilled professionals and competing project priorities may result in suboptimal utilization of resources. Additionally, as the demand for our products and services continues to increase, our current infrastructure and operational framework require further strengthening to ensure seamless scalability. Addressing these challenges will be critical to support sustainable growth and meet the evolving needs of our global clientele.

THREATS

The Company operates in a highly dynamic and competitive environment where rapid technological advancements and intense market competition pose significant challenges. Continuous innovation is essential to remain relevant, as emerging technologies may render existing solutions obsolete. Further, economic fluctuations and changes in global or domestic regulatory frameworks can adversely impact business operations, profitability, and client relationships. The evolving landscape of data protection laws and compliance requirements also increases the complexity of operations. In addition, with growing dependence on digital platforms, the Company remains exposed to cybersecurity threats, data breaches, and system vulnerabilities, which could potentially disrupt services and harm its reputation if not effectively managed.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels. The Company acknowledges that its principal asset is its employees. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31, 2025, the Company had total 60 full time employees. The industrial relations have remained harmonious throughout the year.

CHANGES IN KEY FINANCIAL RATIOS - Standalone

Particulars	F.Y. 2024-25	F.Y. 2023-24
Return on Capital Employed	39.26%	35.51%
Return on Equity Ratio	28.41%	26.14%
Current Ratio	4.41	2.71
Net Profit Ratio	48.20%	42.80%

CHANGES IN KEY FINANCIAL RATIOS - Consolidated

Particulars	F.Y. 2024-25	F.Y. 2023-24
Return on Capital Employed	25.94%	35.23%
Return on Equity Ratio	28.35%	26.94%
Current Ratio	3.97	2.24
Net Profit Ratio	36.59%	40.51%

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources. Your Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the Companys internal controls over financial reporting was observed.

CAUTIONARY NOTE

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.