Kretto Syscon Ltd Management Discussions

Overview

Kretto Syscon Limited, engaged in software development and real estate projects, continues to focus on innovation, operational efficiency, and sustainable growth. During the financial year, the Company strengthened its financial base through a successful Rights Issue and achieved steady progress across both business verticals.

Financial Review (Standalone - Amount in ? Lakhs)

During FY 2024-25, Kretto Syscon Limited demonstrated a significant improvement in its financial performance compared to the previous year. The Company recorded total income of ^1,170.56 lakhs, with revenue from operations contributing ^1,097.45 lakhs and other income contributing ^73.11 lakhs. Profit before tax stood at ^558.52 lakhs, marking a strong increase over the previous years ^34.24 lakhs.

Net Worth Particulars

As of the end of FY 2024-25, the Companys net worth has substantially increased, supported by the profits earned during the year and the successful completion of the Rights Issue on November 18, 2024. A total of

47,03,94,342 equity shares were issued at ^1/- per share, significantly enhancing the Companys paid-up share capital and financial base.

This increase in net worth provides a solid foundation for the Companys future

expansion in both its software and real estate segments and further improves its ability to fund strategic initiatives without relying heavily on external borrowings.

Industry Structure and Developments

The Indian software industry has seen rapid digital transformation, with increasing demand for automation, cloud-based solutions, and AI-driven applications. Meanwhile, the real estate sector has witnessed gradual recovery, supported by policy reforms, affordable housing initiatives, and increased urban infrastructure development.

Kretto Syscon Limited remains aligned with these trends by developing relevant technology solutions and actively exploring real estate opportunities in high-potential regions.

Opportunities and Threats

The Company sees growth potential in customized software solutions for niche markets, as well as in value-driven real estate developments. However, it also faces risks such as rapid technological shifts, project execution delays, regulatory changes in the real estate sector, and macroeconomic volatility.

• Software Development: The

Company continues to invest in talent and technology to offer scalable and secure software solutions to clients. Emphasis is placed on customer satisfaction and innovation.

• Real Estate: The Company has undertaken selective

development projects and aims to expand its footprint in the residential and commercial segments, while maintaining a disciplined financial approach.

Outlook

With a diversified business model and a strengthened capital structure post the Rights Issue, Kretto Syscon Limited is well-positioned for future growth. The Company plans to enhance its digital capabilities and selectively invest in high- return real estate projects to maximize shareholder value.

Risks and Concerns

Key risks include evolving technology trends, cybersecurity threats, real estate market fluctuations, delays in approvals, and regulatory compliance. The Company continuously evaluates and updates its risk mitigation strategies to address these challenges.

Adequacy

Kretto Syscon Limited has robust internal control systems in place to monitor all key operational, financial, and

compliance-related activities. These systems are reviewed regularly to ensure adequacy and effectiveness.

Financial Performance with respect to Operational Performance

The Company remained profitable during the financial year and utilized the proceeds from the Rights Issue to strengthen its working capital and fund ongoing projects. The entire profit was transferred to reserves to support future expansion plans.

Human Resources

The Company recognizes its workforce as a key asset and continues to foster a performance-driven culture. Regular training, employee engagement, and a focus on retention are central to the Companys HR strategy.