Jay Jalaram Technologies Ltd Management Discussions

[Pursuant to Regulation 34(2)(e) and Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Directors have pleasure in presenting the “Management Discussion and Analysis Report” for the financial year ended 31^st March, 2025

A. OVERVIEW OF THE COMPANY “JAY JALARAM TECHNOLOGIES LIMITED”:

Jay Jalaram Technologies Limited (“the Company”) has established itself as Indias premier mobile retail chain. From a modest start with just four stores in the year 2012, the Company has experienced better growth, now operating over 180 retail stores nationwide. This remarkable expansion underscores the strength of its business model and ability to excel in a highly competitive market. Operating under two distinct brands - “KORE” and “EROK”, allows the Company to effectively target different market segments. The Companys success is built upon a diverse and comprehensive product portfolio. It offers a wide range of smartphones and mobile accessories from industry-leading brands, including but not limited to Apple, Samsung, Oppo, Realme, Vivo, Xiaomi and OnePlus.

In response to evolving customers needs, the Company has broadened its product offerings to include a wide array of consumer durable electronics goods. Its inventory now features smart TVs, air conditioners, refrigerators, and coolers from renowned brands such as TCL, Haier, Daikin, Voltas, Mi, Realme etc.

Looking ahead, the Company is focusing on expanding the branch network across the India, adopting an asset-light model through franchisee model, diversifying into higher-margin electronic products and developing larger format stores of 2,000 square feet or more to enhance customer experience, with a view to enhance Companys market position and profitability.

Due to rise in sales volume of existing retail stores of the Company during the year under review, the Company achieved total standalone Operating Revenue of Rs 66,768.46 lakhs as compared to Rs 53,871.85 lakhs in the previous year, thereby registered an increase of 23.94% as compared to the previous year. The Company also registered the standalone Net Profit after tax of Rs 676.08 lakhs for FY 2024-25 as compared to Rs 486.21 lakhs for FY 2023-24, thereby registered an increase of 39.05% in the Net Profit as compared to previous year.

B. OVERVIEW OF THE GLOBAL ECONOMY:

According to the International Monetary Fund (“IMF”), the swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity. The global growth is projected to grow by 2.8% in 2025 and 3% in 2026. The global economy has grown by 3.3% in the year 2024. (Source: World Economic Outlook Report, April, 2025 issued by IMF).

C. OVERVIEW OF THE INDIAN ECONOMY:

According to the International Monetary Fund (“IMF”), the Indian economy has grown by 6.5% in 2024 lower than 7.8% in 2023. Further, the Indian economy is projected to grow by 6.2% in 2025 and 6.3% in 2026. The IMF underlined that the growth outlook is relatively more stable at 6.2% in 2025 supported by private consumption, particularly in rural areas. Growth projections of India are based on available information on the authorities fiscal plans with adjustments for the IMF staff s assumptions. (Source: World Economic Outlook Report, April, 2025 issued by IMF).

The Central Government (“Government”) has unveiled its Budget for the fiscal year 2025-26 and focusing on Governments continuous efforts to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments and enhance spending power of Indias rising middle class. This Union Budget has added 28 additional capital goods to exempted category for mobile phone battery manufacturing. This will boost the domestic manufacture of lithium-ion batteries for mobile phones at reasonable costs reductions.

D. INDUSTRY STRUCTURE AND DEVELOPMENTS:

• Global Smartphones Market:

According to the International Data Corporation (“IDC”) Worldwide Quarterly Mobile Phone Tracker, the global smartphone shipments increased 0.4% year-over-year (YoY) to 301.4 million units in the first quarter of 2025 (1Q25). The smartphone market performed in line with IDC forecasts, as manufacturers ramped up production in anticipation of the expected announcement by the U.S. Administration on tariffs on imports. (Source:

https://www.idc.com/promo/smartphone-market-share/)

• Indian Smartphones Market:

According to the International Data Corporation (“IDC”) Worldwide Quarterly Mobile Phone Tracker, Indias smartphone market grew 4% year-over-year, with shipments reaching 151 million units. A strong first half with 7% growth compensated for slower growth in the second half at only 2%. After five consecutive quarters of growth, the market witnessed a cyclical dip in 4Q24, shipping 36 million units and declining by 3%. India became Apples fourth-largest market in 2024 (after the USA, China, and Japan), with record shipments of 12 million units and a 35% YoY growth. (Source: https://my.idc.com/getdoc.jspRscontainerId=prAP53185725)

• Global Consumer Durables Market:

The revenue generated in the Household Appliances market worldwide amounts to US$703.50 bn in 2025. It is projected to grow annually by 4.75% (CAGR 2025-2030). The volume in the Household Appliances market is projected to reach 5.06 bn pieces by 2030. In 2026, the market is expected to experience a volume growth of 1.70%. The worldwide household appliances market is experiencing a surge in demand for smart home devices, with countries like the United States leading the way in adoption.

(Source: https://www.statista.com/outlook/cmo/household- appliances/worldwide)

• Indian Consumer Durables Market:

The revenue generated in the Household Appliances market in India is estimated to be US$64.29 bn in 2025. It is projected to grow annually by 7.33% (CAGR 2025-2030). By 2030, the market volume is expected to reach 522.73 m pieces. In 2026, the Household Appliances market is anticipated to exhibit a volume growth of 3.31%. These figures highlight the significant presence and potential growth of the Household Appliances market in India. Indias growing middle class is driving demand for high-end household appliances, resulting in increased competition among manufacturers. (Source: https://www.statista.com/outlook/cmo/household- appliances/india)

E. OPPORTUNITIES:

• Rapidly growing in the standard of living and disposable income level of middle class is not just increasing the purchasing power but also shifting consumer preferences towards premium and technologically advanced products.

• Rising temperatures are catalyzing the Refrigeration and Air Conditioning (“RAC”) market.

• The low penetration rates across various segments present immense growth opportunities which offers a runway for sustained high growth rates in future with potential for market leaders to establish strong brand loyalty among first-time buyers.

• Smart TV penetration has also been increased, particularly in semi-urban and rural regions. The advanced Smart TVs offer integrated internet connectivity, providing access to streaming services, on- demand contents and compatibility with wireless devices.

• The Indian government, through Production Linked Incentive (“PLI”) scheme, is focusing and extending the supports to enhance domestic manufacturing of consumer durables electronics goods like air conditioners, LED lights etc.

F. THREATS:

• Disruptions in domestic and global supply chains affect the availability and cost of smartphones, its related accessories and consumer durable electronic goods, leading to potential inventory shortages and increase in their prices.

• Rapid technological advancements in the mobiles and electronics industry necessitates continuous adaptation and innovation. Failure to keep up with the latest trends and technologies could make the Companys offerings less attractive to consumers.

• Heavy reliance on imports for components exposes the market to geopolitical risks and fluctuating trade policies, which can affect supply stability and cost structures.

• Intense competition in the retail market for smartphones, its related accessories and consumer durable electronic goods.

• Changes in government regulations, import & export policies or tax structures could impact the Companys cost structure and profitability. Moreover, tariffs, trade restrictions or geopolitical tensions could affect the availability and cost of imported products, influencing the Companys pricing strategy and margins.

• The political and trade relations with neighboring countries, war tensions with other countries, trade restrictions and political disturbances in India may also impact the business of the Company.

• Changes in consumer taste and preferences, such as increased demand for online shopping or a preference for new brands, could impact the Companys traditional retail model.

G. SEGMENT-WISE PERFORMANCE:

Till 30^th September, 2024, the Company is having business segment of Electronic Gadgets and Electric Vehicles. During the year under review, there is no revenue from Electric Vehicles segment. The Company operates in a single segment with effect from 01^st October, 2024 i.e. Electronic Gadgets. As on 31^st March, 2025, the Company is engaged in one segment only i.e. Electronic Gadgets. During the financial year 2024-25, the Company registered Annual Sales of Rs 62,922.24 lakhs which is increased by 22.59% from Rs 51,328.79 lakhs in the previous year thereby contributing 94.24% to the total turnover of the Company.

H. OUTLOOK:

The Companys growth is linked to the overall economic trend, technology upgradation, inflation trends, disposable income of customers and competition from the local players and well- established players. The Company is focused on growing its retail business across various products falls under the category of electronic gadgets like mobile phones, its related accessories, audio-video devices and other consumer durable electronic goods.

I. RISKS AND CONCERNS:

Risk is an integral part to any business activity. The Company has laid down a Risk Management Policy which defines the process for identification of risks, its assessment, mitigation measures, monitoring and reporting. There are various types of risks that threaten the existence of the Company like business operations risks, liquidity risks, logistic risks, market & industry risks, human resources risks, legal risks, technology risks, political risks etc. As part of risk assessment and management system, the Audit Committee of the Company generally reviews the Companys Risk Management Policy and to remain in balance with its growing business size and changes in its risk profile.

J. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate system of internal controls to ensure that all the assets are safeguarded and insured. Necessary checks and controls are in place to ensure that transactions are properly verified, adequately authorized, correctly recorded and properly reported. The management maintains adequate internal financial control systems encompassing its entire business operations, statutory compliances and financial reports.

K. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

For the financial year ended 31^st March, 2025, the Company has achieved better financial performance in terms of revenue as well as net profits compared to all its previous years. The financial performance of the Company has been summarized in the Boards Report under the heading “Financial Performance of the Company”.

L. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and we emphasizes on welfare of our employees and we strives to engage and retain talented workforce at all levels. There exists peaceful and amicable relations with our employees. As on 31.03.2025, there are total 144 permanent employees on pay roll of the Company.

M. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREOF:

Particulars	FY 2024-25	FY 2023-24	% Change	Explanations for significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios:
(a) Current Ratio (in times)	2.03	1.76	15.76%	Not Applicable
(b) Debt-Equity Ratio (in times)	0.83	1.62	(48.95%)	This Ratio decreased due to increase in Equity Share Capital during the year.
Debt Service Coverage Ratio ( ) (in times)	0.25	0.27	(9.67%)	Not Applicable
(d) Return on Equity Ratio (%)	14.09	18.66	(24.49%)	Not Applicable
Inventory Turnover Ratio ( (in times)	7.46	8.30	(10.07%)	Not Applicable
Trade Receivables Turnover Ratio ( (in times)	78.97	87.06	(9.33%)	Not Applicable
Trade Payables Turnover Ratio (g) (in times)	24.48	23.91	2.40%	Not Applicable
Net Capital Turnover Ratio ( ) (in times)	9.29	10.23	(9.20%)	Not Applicable
(i) Net Profit Ratio (%)	1.01	0.90	12.19%	Not Applicable
(j) Return on Capital Employed (%)	10.26	12.97	(20.85%)	Not Applicable
(k) Return on Investment (%)	4.24	1.59	166.98%	This ratio Increased Due to increase in interest income and fixed deposit decreased.

N. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Particulars	FY 2024-25	FY 2023-24	% Change	Reason for change
Return on Net Worth (%)	Rs 14.09	18.66	(24.49%)	Not Applicable

O. CONCLUSION:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward-looking statements. These statements are based on assumptions and anticipated future events and actual results may differ materially due to various internal and external factors beyond the control of Company. The Company does not undertake any obligation to publicly amend, modify or revise these forward looking statements based on subsequent developments, events or new information. Readers are advised that the risks outlined in this report are not exhaustive and should exercise their judgement while assessing potential risks associated with the Companys operations.

	For and on behalf of the Board
	Kamlesh Varjivandas Thakkar
Place : Ahmedabad	Chairman & Managing Director
Date : 29th May, 2025	DIN:05132275