JMD Ventures Ltd Management Discussions

Management Discussions and Analysis Report

ANNUAL OVERVIEW AND OUTLOOK

Global growth is projected to decline after a period of steady but underwhelming performance, amid policy shifts and new uncertainties. Global headline inflation is expected to decline further, notwithstanding upward revisions in some countries. Risks to the outlook are tilted to the downside. Escalating trade tensions and elevated policy-induced uncertainty may further hinder growth. Shifting policies could lead to abrupt tightening of global financial conditions and capital outflows, particularly impacting emerging markets. Demographic shifts threaten fiscal sustainability, while the recent cost-of-living crisis may reignite social unrest. More limited international development assistance could push low- income countries deeper into debt, jeopardizing living standards. At this critical juncture, policies need to be calibrated to foster international cooperation while ensuring internal economic stability, thereby helping reduce global imbalances.

For the global economy, we think 2025 will be a case of staying the course in turbulent times. The ability of individual economies to weather possible geopolitical and policy challenges next year will be determined by a number of factors. But, as the growth numbers highlighted above show, there is already a distinction between a high technology, higher productivity U.S. economy and a European economy that is lagging behind on the interlinked issues of productivity and investment.

The market focus on stocks should not preclude interest in other asset classes in 2025. Corporate bonds in the U.S., Asia and Europe, for example, are likely to remain interesting for investors for several reasons. These include institutional demand, still high yields and the return of the (term) premium. Supply and demand will remain fundamental to commodities such as oil and industrial metals but we also see other factors maintaining a relatively high price for gold in 2025. In alternative assets, we focus in this outlook on infrastructure - central to investing in future growth - and what we call the public and private mixology of investing in this area. FX considerations will, as always, be a central consideration for investors and here 2025 will clearly be a case of strong economy, strong currency for the U.S. dollar. The euro will look weak in comparison, but rate rises and growth could support the Japanese yen.

INDUSTRY OVERVIEW

Media & Entertainment

The Indian entertainment and media industry is one of the fastest-growing sectors in the country, marked by intense competition among over 40 diverse content providers. This vibrant industry encompasses a wide array of segments, including television, radio, print, films, digital advertising, music, out-of-home (OOH) advertising, animation and VFX, gaming, and lives events.

The industrys growth trajectory is truly impressive, with annual revenue expected to increase by 9.7 percent, reaching USD 73.6 billion by 2027. One of the key drivers of this growth is the video OTT market, which is dominated by major players like Amazon Prime Video, Netflix, and Disney+ Hotstar. This market is projected to double its revenue from USD 1.8 billion in 2022 to USD 3.5 billion by 2027. India is home to an estimated 481 million OTT users and 101.8 million active paid subscriptions.

India stands out as the worlds largest mobile gaming market in terms of app downloads. The revenue from transaction- based games has surged significantly, with the sector projected to grow by 20 percent annually, reaching $231 billion by FY25. The country also boasts the largest fantasy sports market globally, with a user base of 180 million. This industry is expected to grow at a CAGR of 33 percent, reaching $25,300 crore by FY27.

The Indian media and entertainment industry is poised for continued impressive growth, outpacing the global average. This growth can be attributed to rising incomes, increasing internet penetration, and a significant push toward digital adoption. The industry is expected to benefit from the burgeoning retail advertisement market, driven by new entrants in the food and beverages segment, the growing popularity of e-commerce, and domestic companies exploring new opportunities.

In conclusion, the Indian entertainment and media industry stands as a beacon of rapid growth and innovation, supported by robust government initiatives and a dynamic market landscape. With its diverse segments and impressive financial performance, the industry is well on its way to achieving its ambitious growth targets.

Indian Capital Market

Indias equity markets had a turbulent first quarter of 2025 so far, marked by significant volatility after a remarkable run in 2024. Following a series of record highs late last year, both benchmark indices, the BSE Sensex and the NSE Nifty 50, experienced sharp declines. The Nifty 50 index declined approximately 14% from its September 2024 peak, marking its longest losing streak since 1996. Therefore, Indias equity market outlook for the near term remains cautiously optimistic. Investor sentiment weakened primarily due to slowing GDP growth.

However, optimism about Indias long-term equity market outlook remains intact. In their bull-case scenario, Morgan Stanley expects the Sensex to hit the 105,000 mark by the end of the year. This would be a rise of about 40% from current levels as of March 7, 2025. The base scenario sees the index up around 25%, while the bear-case scenario expects the Sensex to slide nearly 6%.

The most significant risks, according to Morgan Stanleys report from March, are global factors including global economic growth and US policy changes. "A global recession or a near recession will challenge our call and keep the Indian equities off highs in 2025," the report says.

Despite these short-term pressures, long-term optimism surrounding Indias economic and market potential remains robust. Martin Currie sees Indias journey far from complete. "With superior earnings growth forecasted for the coming years, Indian companies are poised to drive forward the broader asset class, promising exciting opportunities for investors," the asset manager comments in a recently published insight.

According to the equity specialist within Franklin Templeton, the consensus forecast for the next three years estimates India will deliver "superior earnings growth for shareholders compared to the US and other developed markets".

OPPORTUNITIES & THREATS

Background

The Company is mainly into the business of investments in Shares & Securities apart from its set business i.e. studio renting as well as income from music uploaded on YouTube.

Opportunities & Threats Media & Entertainment Industry

The FICCI-EY Media & Entertainment Report 2025 was launched on 27 March 2025 at Hotel Sofitel, Mumbai. The report provides an overview of the trends, challenges, and opportunities shaping Indias media and entertainment (M&E) sector, with a focus on digital transformation, technology, and changing consumer preferences.

The Indian M&E sector was valued at INR 2.5 trillion in 2024, marking a 3.3% growth from the previous year. It contributed 0.73% to Indias GDP and is expected to cross INR 3 trillion by 2027.

Digital media emerged as the largest segment, growing by 17% to INR 802 billion, driven by increasing internet penetration and mobile content consumption. The growth of OTT platforms, short-form content, and AI-driven recommendations is shaping how audiences engage with digital entertainment.

Advertising revenues increased by 8.1%, with a shift toward performance marketing, e-commerce advertising, and premium digital formats. Sponsorship in live events and sports continues to attract brands looking for audience engagement beyond traditional advertising.

The live events industry grew by 15%, with a rise in hybrid events, digital experiences, and corporate sponsorships. Weddings remain a significant part of the industry, with the Indian wedding market valued at $130 billion, seeing increased demand for destination weddings and customized experiences. Technology, including AI-powered planning and projection mapping, is being integrated into wedding events.

Equity Investments Pro-Growth Union Budget 2025

The governments latest budget has focused on economic expansion, infrastructure development, and increased capital expenditure, creating a strong foundation for market growth. Key highlights include:

Tax benefits for individuals, with tax exemption limits increased to Rs.12 lakh, boosting disposable income and consumption.

Higher capital expenditure in infrastructure, with a 10.1% increase aimed at benefiting sectors like construction and manufacturing.

Incentives for MSMEs and startups, fueling job creation and business growth.

These initiatives are expected to drive corporate earnings higher, making Indian equities more attractive for investors.

RBIs Rate Cut Boosting Liquidity

The Reserve Bank of India (RBI) has recently reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut in nearly five years. This move is likely to benefit:

Banking & Financial Services - Lower interest rates mean increased loan growth.

Real Estate & Auto Sector - Affordable loans can drive home and vehicle purchases.

MSMEs & Corporates - Easier access to capital encourages business expansion.

Political Stability & Policy Continuity

With the BJP winning the Delhi elections, policy continuity remains strong. A stable government ensures consistent economic reforms, strengthening investor confidence and attracting long-term investments.

Strong Domestic Participation in Equities

Despite Foreign Institutional Investors (FIIs) selling, Indian retail and domestic investors have continued to support markets through mutual funds and direct investments. SIPs (Systematic Investment Plans) have reached record levels, providing a cushion against FII outflows.

Indias Strong GDP Growth Projection

India is expected to grow at 6.5-7% in FY 2025, making it one of the fastest-growing major economies. Growth in key sectors such as IT, manufacturing, and banking will contribute to stock market momentum.

Key Challenges & Market Concerns

U.S. Tariff Threats Impacting Trade

Recent statements from the U.S. indicate potential tariffs on steel, aluminum, and other key exports. This could impact Indian metal and manufacturing stocks, potentially slowing growth in these sectors. India is considering trade concessions to manage potential disputes.

Strengthening U.S. Dollar & Currency Volatility

The Indian Rupee has depreciated to record lows against the U.S. Dollar due to global trade tensions. A strong dollar increases import costs, impacting oil, automobile, and FMCG sectors. The RBI has intervened to stabilize the currency, but challenges persist.

U.S. Federal Reserve Interest Rate Policy

If the U.S. Fed keeps interest rates high, it could lead to continued FII outflows from Indian markets as investors seek higher returns in U.S. bonds. However, a rate cut could trigger FII inflows, boosting the market.

Geopolitical Uncertainties & Oil Prices

Rising crude oil prices increase Indias import bill, affecting inflation and corporate profitability.

Global conflicts & supply chain disruptions can add volatility to stock prices.

Overall Market Sentiment - Cautiously Bullish

Short-term View: Market remains range-bound with a positive bias, but global factors could bring short-term volatility.

Long-term View: India remains a strong investment destination due to its resilient economy, robust corporate earnings, and strong retail investor participation.

Investment Strategy for 2025

• Stay Invested in Quality Stocks - Focus on blue-chip and fundamentally strong companies.

• Diversify Portfolio - Maintain a mix of large-caps, mid-caps and debt instruments.

• Avoid Panic Selling - Market correction offer opportunities to accumulate good stocks.

• Continue SIP Investments - Systemic investments ensure cost averaging and wealth creation.

RISKS AND CONCERNS

JMD Ventures Ltd. (JMD) has exposures in various line of business. JMD are exposed to specific risks that are particular to their respective businesses and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk, operational risk, information security risks, regulatory risk and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. JMD continuously monitors market exposure in equity and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility. In regard to the music segment, new digital equipments are being introduced almost on every day. The invention of digital tools has changed the experience of listening music for music lovers. But these improved equipments need a lot to be invested and it is challenge for the industry to keep it up to date. Old recording tools do not have any commercial value or demand in current market scenario.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

CYBER SECURITY RISK

In the last few years, technology has evolved manifold and so have the risks attached to it. The proliferation of business data beyond data centres to the cloud, social media and digital platforms for B2B and B2C connect are impacting cyber security. In addition to data loss, cyber-attacks can impact business operations, machinery and human assets, and result in legal and regulatory liabilities.

DIGITAL ADVANCEMENT RISKS

Digital technologies are changing the way companies operate while creating new opportunities to improve efficiencies, and enhance customer experience and employee involvement. Adoption of such technologies requires management initiative, employee commitment and cultural transformation.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2021-2022, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

Mumbai, August 22, 2025	By order of the Board
	For JMD Ventures Limited
Registered Office:	S/d-
Unit No. 323 & 324, 3rd Floor, Bldg. No. 9	Kailash Prasad Purohit
Laxmi Plaza, New Link Road	DIN:01319534
Andheri (W), Mumbai - 400 053	Chairman & Managing Director