Inventure Growth & Securities Ltd Management Discussions

(a) Industry structure and developments.

With improved capital market activity, the aggregate net operating income (NOI) of the brokerage industry is expected to grow by 18-22% in FY2024, following the 13% increase in FY2023 and the record growth of 37% in FY2022. Indias monthly F&O turnover reached a record 8,740 lakh crore (or $1.1 trillion) in March 2024. This phenomenal surge represents a significant jump from just 217 lakh crore (approximately $ 27 billion) in March 2019. The average daily turnover in the F&O segment now dwarfs the equity cash segment, highlighting the growing popularity of derivatives trading among retail investors.

While ICRAs outlook for the securities brokerage industry remains Stable, the possibility of the industry performance trajectory being impacted by any adverse global/domestic development cannot be ruled out. With new highs in the margin trading facility (MTF) exposures and increased working capital requirements amid the evolving regulatory landscape, the industry has witnessed a sustained and notable increase in the leverage. This has been more noticeable in the case of bank brokers, which enjoy a lions share in the MTF segment. Going forward, the MTF book growth rate would remain a function of the secondary market.

The baseline forecast for the world economy to continue growing at 3.2% during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6%in 2023 to 1.7% in 2024 and 1.8%in 2025—will be offset by a modest slowdown in emerging market and developing economies from 4.3%in 2023 to 4.2%in both 2024 and 2025. The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8%in 2023 to 5.9%in 2024 and 4.5%in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually.

(b) Opportunities and Threats

The company operates in a fiercely competitive industry. In 2024, technological innovations are transforming the broking sector, empowering brokers to make smarter decisions, execute trades with greater efficiency, and manage risks more effectively. These advancements have streamlined complex tasks, making them more manageable and accessible. Key features now include AI-driven E-KYC, automated market orders (AMO), intuitive mobile applications, and sophisticated analytical and charting tools. The surge in investors from tier 2 and tier 3 cities is poised to significantly boost the Companys revenue.

Cross-selling remains a valuable strategy, allowing the company to enhance its value proposition by offering a diverse range of services to clients. However, integrating cutting-edge technology demands substantial capital investment. Full-service brokers face challenges in swiftly adapting to digital transformations, unlike their discount broker counterparts. Furthermore, regulatory changes and government policies, particularly those from SEBI, continue to influence trading volumes, thereby impacting the revenue and profit margins of brokers Economic uncertainties, geopolitical tensions, and fluctuating interest rates can lead to unpredictable market movements, affecting investment returns. New regulations and compliance requirements, such as those from SEBI and other global regulatory bodies, can impact trading practices and increase operational costs. While technology offers many benefits, it also poses risks. Cybersecurity threats, including data breaches and hacking, can compromise sensitive information and disrupt operations. Recessions or slow economic growth can reduce investor confidence and decrease the overall investment activity. High inflation and rising interest rates can erode investment returns and increase borrowing costs, making it more challenging for companies to finance growth. Investors are increasingly considering ESG factors, and companies failing to meet these criteria may face reputational damage and reduced investment. The rise of discount brokers and fintech companies offering low-cost investment solutions puts pressure on traditional brokers to innovate and reduce fees. Events such as pandemics, natural disasters, and political instability can have widespread impacts on global markets and investment portfolios.

(c) Segment–wise or product-wise performance

Company is engaged in the business of providing stock broking service. Its consolidated quarterly segment performance is mentioned below.

Sales	Q4 FY25	Q3 FY24	Q4 FY24	QoQ %	YoY %
				change	change
Equity/Commodity Broking & Other Related	1.1	0.9	1.5	18.09%	-24.25%
Financing & Other Related Activity	0.5	0.15	0.69	273%	-17.64%
Merchant Banking & Other related activties	0.03	0.03	0.02	-15.58%	56%
Others	0.04	0.02	0.04	72.71%	1.58%

Figures :- In Crores

More than 60% of the Company revenue comes from Equity/Commodity broking business. 28% of the revenue is obtained from Financing activity and remaining from others.

(d) Outlook

Global growth is forecast to slow from the 3.1% 2023 pace to 2.9% in 2024 and rebound to 3% next year. Inflation is expected to continue to cool, although in many countries the price pressure will take longer to unwind than it took to emerge.

Geopolitical uncertainty is elevated, with nearly half of the worlds population already voting or heading to the polls this year. Hot wars and trade tensions are flaring, which could fuel more isolationist policies. The resulting risk is more frequent bouts of inflation and activist monetary policies.

A slower expected glide path on rate cuts by the U.S. Federal Reserve, which plays an outsized role in global financial markets, will have a larger impact on rate decisions by developing economies. These markets are more sensitive to the exchange rate movements than we have seen in the past. Weakening currencies relative to the U.S. dollar are inflationary for those economies. To further complicate matters, foreign exchange markets have been reacting to unexpected election outcomes.

Indias GDP took a big leap on Leap Day in 2024: The countrys remarkable growth rate of 8.4% in the third quarter of the fiscal year 2024 surpassed all expectations, as market analysts had penciled in a slower growth this quarter, between 6.6% and 7.2%. Deloittes projected growth for the quarter wasbetween 7.1% and 7.4% (as published in January 2024). With substantial revisions to the data from the past three quarters of the fiscal year, Indias GDP growth already touched 8.2% year over year (YoY) in these quarters.

(e) Risks and concerns.

The Company recognizes that risk is inherent to any business activity and that managing risk effectively is critical to the immediate and future success of the Company. The Company is registered and regulated by SEBI for stock broking, depository participant, investment advisory, and mutual funds. The Company has highly digitalized processes which minimizes the scope for omission and commission of errors and frauds. However, the Company faces variety of risk because of business environment it operates in, which may affect its operations or financial results and many of that risk are driven by factors that the Company cannot predict or control. The major sources of our revenues are derived from equity brokerage business. Hence, like other players in the market, our business is highly sensitive to economic and political conditions prevalent in the country and across the globe. Any sustained downturn in general economic conditions or Indian equity markets and severe market fluctuations would likely result in reduced client trading volumes and net revenues, and hence, will have a material adverse effect on our profitability. The Company is also exposed to the risk arising from misconduct, fraud or trading errors by its employees such as indulgence in unauthorized transactions by employees/registered authorized persons, misreporting of and noncompliance with various statutory and legal requirements, improper use of confidential information and operational errors. We also provide exposure limits to clients, based on the collaterals of securities that we receive from them, in connection without brokerage business. Sharp change in market values of securities and the failure by parties to honor their commitments on a timely basis could have a material adverse effect on the portability of our operations. The overall assessment of risks and threats at Company level is carried out and presented to the Board of Directors. Hence adequate risk management system has been put in place by the management to ensure the success and financial soundness of the Company and to deal with various trades related risks.

(f) Internal control systems and their adequacy.

The Company has an internal audit system which is effective and commensurate with the nature of business, regulatory prescriptions and the size of its operations. The scope of internal audit covers all aspects of the business, including regular front-end and back-end operations and internal compliances. The Company also retains specialized audit firms to carry out specific I concurrent audit of some critical functions, such as halfyearly internal audit mandated by SEBI/Exchanges, Processes, Know Your Customer (KYC) verifications, demat transfers, payouts verifications, systems audit, branches and authorized person Ds audit and, end use verification audits, among others. In addition, the Company complies with several specific audits mandated by regulatory authorities such as SEBI I Exchanges I Depositories and the reports are periodically submitted to the regulators. The Board/Audit Committee reviews the overall risk management framework and the adequacy of internal controls instituted by the management team. The Audit Committee reviews major instances of fraud periodically and actions are taken on the same. The Board has also put in place state-of threat technology and has automated most of the key areas of operations and processes, to minimize human intervention. The statutory auditors, after reviewing the systems and processes, have confirmed the adequacy and effectiveness of the internal financial controls of the Company.

(g) Discussion on financial performance with respect to operational performance.

Particulars		Quaterly		Yearly
	Q4 FY 2025	Q3 FY 2024	Q4 FY 2024	FY 2024-25	FY 2023-24
Total Income	914.04	967.92	1,507.36	4,289.76	4,817.17
% increase/ Decrease	--	-5.6%	-39.4%	--	-11.0%
Total Expenses	1,434.33	848.95	1,131.52	4,131.28	3,439.19
% increase/ Decrease	--	69.0%	-26.8%	--	20.0%
Net Profit	-439.15	82.39	96.84	15.11	603.74
% increase/ Decrease	--	-633.0%	-553.5%	--	-97.5%

• The revenue posted by the company was 914.04 Lakhs for Q4 FY24-25 which de-grew by 39.4% on YoY basis and de-grew by -5.6% on QoQ basis. The revenue for the quarter ended 31^st March FY2025 was 4,289.76 Lakhs which de-grew by 11% on YoY basis. Revenue was impacted due to lower fees and commission income.

• The Total Expenses for the quarter ended 31^st March 2025 was 1,434.33 Lakhs which de-grew by 26.8% on YoY basis and grew by 69% on QoQ basis. For the Year ended FY 2024-25, total expenses of the company grew by 20% to 4,131.28 Lakhs.

• The Standalone net profit reported by the company for the quarter ended FY2024-25 was 439.15 lakhs which de-grew by 553.5% on YoY basis and de-grew by 633% on QoQ basis. The net profit for the quarter ended 31^st March FY2025 was 15.11 Lakhs.

• Tax Expense of the company stood at -72.86 lakhs as compared to 40.37 Lakhs last quarter and 133 Lakhs same quarter last year.

(h) Material developments in Human Resources/Industrial Relations front including number of people employed.

As of March 2025, the employee strength stood at 113.

(i) Key Ratios

Key Ratio	2024-2025	2023-2024
Interest Coverage Ratio	0	11.96
Current Ratio	1.87	1.46
Debt Equity Ratio	0.09	0.08
Networth	22,328.61	17442.08

Note: The change in key Ratios are negligible as compare to previous year.

(j) Disclosure of Accounting treatment:

Your Company in preparation of Financial Statement has followed all the Ind Accounting Standard applicable. Cautionary Statement

This report contains forward-looking statements extracted from reports of Government Authorities/ Bodies, Industry Associations etc. available on the public domain which may involve risks and uncertainties including, but not limited to, economic conditions, government policies, dependence on certain businesses and other factors. Actual results, performance or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto. The Company does not undertake to update these statements

For lnventure Growth &Securities Limited
SD/-	SD/-
Kanji B. Rita	Kamlesh S. Limbachiya
(Chairman & Managing Director)	(Whole-Time Director)
Place: Mumbai
Date: 05.08.2025