Latent View Analytics Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

Global Economy

The global economy in 2025 is marked by subdued growth, elevated uncertainty, and persistent risks arising from trade tensions, geopolitical instability, and inflationary pressures. The world economy has entered a phase of modest expansion; however, this pace remains insufficient to offset the damage caused by a series of shocks in recent years.

According to the IMFs April 2025 World Economic Outlook and the World Banks Global Economic Prospects, global GDP growth is projected to remain below historical norms. The World Bank anticipates a steady yet modest global growth rate of 2.7% for both 2025 and 2026. Meanwhile, the IMF has revised its 2025 forecast downward to 2.8%, representing a 0.5% decrease from previous estimates. The OECDs March 2025 Interim Economic Outlook adopts a similarly cautious tone, forecasting global growth of 3.1% in 2025 and 3.0% in 2026 - both figures reflecting a slowdown from 2024 and remaining well below pre-pandemic trends.

This deceleration is widespread, impacting both advanced and emerging economies. In the United States, growth is expected to decline to between 1.6% and 2.2% in 2025, due to factors such as elevated tariffs, policy uncertainty, and weakening consumer sentiment. Chinas growth is also projected to moderate, with estimates ranging from 4.0% to 4.4% for 2025, reflecting the effects of trade disruptions and domestic challenges. The eurozone faces even weaker prospects, with growth likely to remain around

0.8% to 1.0%. By contrast, India continues to outperform, maintaining its status as the fastest-growing major economy with projected growth between 6.2% and 6.3% in 2025, supported by strong private consumption and public investment.

The drivers of this subdued outlook are complex. Trade tensions - particularly between the United States and China - have resulted in significant tariff increases, disrupting global supply chains, and raising production costs. While some recent easing of tariffs has temporarily alleviated market concerns, the lasting economic impact of earlier disruptions persists, and business sentiment remains fragile.

The IMF highlights that economic uncertainty is now greater than at any point during the COVID-19 pandemic, prompting businesses to delay or scale back investment amid unpredictable policy environments and volatile geopolitics.

Inflation, though moderating in certain regions, remains a significant concern. The OECD projects headline inflation in G20 economies at 3.8% for 2025, with underlying inflation expected to stay above central bank targets in many countries. Persistent inflation, coupled with high public debt, constrains policymakers ability to respond to new shocks and complicates the path toward sustainable recovery.

Emerging market and developing economies face particularly difficult conditions. While some regions - such as South Asia and parts of Africa - are expected to benefit from robust domestic demand, the overall pace of per capita income convergence with advanced economies has slowed considerably.

In many low-income countries, per capita income is projected to fall further behind, reversing decades of progress in poverty reduction.

Global IT Industry

Global IT spending is projected to reach $5.61 trillion in 2025, marking a 9.8% increase from the previous year. While budgets are expanding, a large portion of the increase will be directed toward covering higher costs in recurring IT expenses. As a result, the actual increase in IT capabilities may be modest, as elevated prices absorb much of the nominal growth.

The rise in IT investment is seen across all major segments, driven in part by hardware upgrades needed to support generative Al (GenAI). However, despite the increased spending, GenAI-enabled systems are not yet delivering significantly differentiated functionality. Many organizations are choosing to postpone or reduce their spending plans due to pricing pressures across the board.

While interest in GenAI remains strong, expectations are beginning to stabilize. For example, although consumers and enterprises will continue purchasing Al-enabled devices, such decisions are not being heavily driven by GenAI features at this time. Similarly, while Al-optimized servers are expected to dominate traditional server spending, reaching $202 billion in 2025, their full potential is still unfolding.

Cloud providers and large-scale IT services firms are expected to account for the majority of this server investment. By 2028, a significant portion of Al-optimized server infrastructure is anticipated to be in operation, reflecting a strategic shift in how large-scale technology firms position themselves in the evolving Al ecosystem.

These forecasts are based on detailed analysis of vendor sales data across the IT landscape. Market size estimates are developed using a blend of primary and secondary research, offering a comprehensive view of technology investment trends across hardware, software, services, and telecommunications.

Worldwide IT Spending Forecast (US$ Million)

	2024 Spending	2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Center Systems	329,132	39.4	405,505	23.2
Devices	734,162	6.0	810,234	10.4
Software	1,091,569	12.0	1,246,842	14.2
IT Services	1,588,121	5.6	1,731,467	9.0
Communications Services	1,371,787	2.3	1,423,746	3.8
Overall IT	5,114,771	7.7	5,617,795	9.8

Global Data & Analytics Industry

The Data & Analytics (D&A) industry is experiencing unprecedented growth as enterprises increasingly adopt data-centric approaches to optimize operations, enhance decision-making capabilities, and develop innovative data-driven products and services.

The fundamental value proposition of data analytics lies in its ability to empower businesses to manage, process, and extract meaningful insights from vast datasets in real-time. This capability significantly enhances organizational capacity for informed decision-making while enabling companies to better understand their customers and target markets, ultimately leading to more effective marketing strategies and improved business outcomes.

Growth Catalysts

Technological Infrastructure Evolution

The rapid expansion of the D&A market is being driven by several key technological developments. The proliferation of Internet of Things (loT) devices represents a particularly significant growth driver. Exponential growth in connected devices is accelerating the adoption of edge computing solutions, which position processors closer to data sources rather than relying solely on cloud infrastructure. This proximity reduces network latency, minimizes server strain, and enables faster data processing with improved response times - capabilities that are especially critical for industrial loT applications.

Data Generation and Consumption Patterns

Mobile technology advancement, including the widespread adoption of smartphones and tablets, combined with improvements in mobile networks and Wi-Fi infrastructure, has created an unprecedented surge in both data generation and consumption. According to industry analysis, the volume of digital data created over the next five years is projected to exceed twice the amount of data generated since the inception of digital storage technology.

Cloud-Based Solutions and SaaS Adoption

The market is experiencing significant acceleration through the adoption of Software-as-a-Service (SaaS) based analytics platforms, the emergence of virtual work environments that generate substantial data volumes, and increased enterprise investment in cloud technologies. These trends are democratizing access to sophisticated analytics capabilities while reducing implementation barriers for organizations of all sizes.

Sector-Specific Applications

Customer Analytics and Retail Intelligence

The customer analytics segment is positioned for remarkable growth, driven by increasing demand for customer retention strategies, enhanced lead management, and superior customer experience management. The retail sector has emerged as a primary adopter of customer analytics, utilizing these capabilities to develop personalized communications and targeted marketing campaigns. Artificial intelligence applications are increasingly deployed for demand forecasting, pricing optimization, and conversational Al implementations, creating seamless online shopping experiences that drive customer engagement and loyalty.

Financial Services and Banking (BFSI)

The Banking, Financial Services, and Insurance sector is rapidly adopting cognitive systems and Al-powered operations to address complex regulatory and compliance requirements.

This adoption is fueled by growing demand for digital transformation and evolving customer expectations that require more sophisticated, responsive financial services.

Healthcare and Life Sciences

The healthcare industry has witnessed significant innovation through the application of machine learning, natural language processing, and other cognitive reasoning technologies in drug discovery and development processes. These applications are accelerating research timelines, improving treatment outcomes, and reducing development costs across the pharmaceutical and biotechnology sectors.

Cross-Industry AI Applications

Artificial intelligence is becoming increasingly prevalent in uncovering hidden insights from diverse data sources, ranging from social media analysis to sophisticated predictive modeling for advertising strategy optimization, dynamic pricing, and sales forecasting across multiple industries.

Small and Medium Enterprise (SME) Market Dynamics

Small and Medium Enterprises are projected to significantly increase their adoption of data analytics solutions, primarily driven by the growing need for data visualization dashboards and business intelligence capabilities. SMEs are particularly drawn to analytics tools that enhance customer service delivery and enable more informed risk management decisions, recognizing that these capabilities are essential for competitive positioning in their respective markets.

Generative AI: A Transformative Force in Analytics

Market Disruption and Evolution

Generative Artificial Intelligence represents a significant disruptive force within the AI and analytics landscape. This technology, capable of creating new content including text, images, and code through large language models trained on extensive datasets, marks a pivotal moment in AI evolution with the potential to fundamentally transform business processes across industries.

Disruption

Challenges

1 Task Automation: GenAI is expected to automate numerous tasks traditionally performed by analytics service providers, including data preparation, feature engineering, and basic analytical processes, potentially reducing demand for certain entry-level analytics services.

2 Analytics Democratization:

AI tools are making advanced analytics capabilities more accessible to non-technical users, challenging the traditional role of service providers as gatekeepers of complex analytical processes.

Strategic Opportunities

1 Data Quality and Governance: As GenAI relies heavily on high-quality data, service providers can position themselves as specialists in data preparation, cleansing, and governance - critical components for successful GenAI implementation.

2 Ethical AI and Bias Mitigation: Growing concerns about AI ethics and bias create opportunities for specialized services ensuring responsible and equitable GenAI deployment.

3 Advanced Analytics Solutions: Combining GenAI with traditional advanced analytics techniques enables the creation of more sophisticated and valuable client solutions.

3 Accelerated Development Cycles: GenAI enables faster prototype development and proof-of-concept creation, potentially accelerating project lifecycles and changing client engagement models.

4 Skill Set Evolution:

The emergence of GenAI necessitates significant shifts in required professional skill sets, forcing service providers to adapt talent acquisition and training strategies.

4 Training and Change Management: Organizations require support in effectively adopting and utilizing GenAI technologies, creating opportunities for comprehensive training and change management services.

5 Continuous Optimization:

GenAI models require ongoing refinement and optimization, enabling long-term partnership opportunities for system maintenance and improvement.

6 Integration and Customization: Service providers can focus on integrating GenAI technologies into existing systems and customizing solutions for specific client requirements, leveraging deep domain knowledge and technical expertise.

Data Analytics &AI:

Governance as a Strategic Imperative

Rising Data Governance Investments

Organizations are significantly increasing their data governance budgets to underpin Al initiatives. These investments are essential to ensure data quality and regulatory compliance, which are foundational for successful Al deployments.

Data Governance: From Compliance to Value Creation

Data governance is evolving from a compliance exercise to a strategic driver of Als potential and long-term business value. This shift underscores its critical role in enabling effective, scalable Al applications and maximizing returns on data and analytics investments.

Integration of Data and Al Governance

In regulated industries, 40% of companies are merging data and Al governance programs to align Al models with business objectives and legal requirements, reflecting the growing complexity and importance of governance in the Al era.

Infrastructure Modernization

As generative Al adoption accelerates, 90% of organizations will need to modernize their data infrastructure, with vector databases and advanced data management tools emerging as key enablers.

Outlook and Future Trajectory

The Data & Analytics industry is positioned for continued robust growth, driven by organizations increasing recognition of data as a critical competitive advantage. Key growth drivers include the rising demand for actionable insights, increasing organizational investment in digital transformation, and the competitive advantages gained through sophisticated analytics implementations.

The proliferation of cloud-based solutions, virtual work environments, and SaaS-based analytics platforms continues to accelerate market adoption by reducing implementation barriers and improving accessibility. Emerging trends such as social media analytics, edge computing, and Al-powered predictive modeling are expected to drive sustained growth over the coming years.

Strategic Implications

The evolution of the Data & Analytics industry, particularly with the integration of Generative Al, presents both challenges and opportunities for market participants. Success in this evolving landscape requires strategic adaptation, with service providers needing to reposition their offerings to complement rather than compete with GenAI capabilities. Organizations that can effectively integrate GenAI technologies while providing critical expertise in data quality, ethics, and domain-specific customization are positioned to thrive in this dynamic market environment.

The industrys future trajectory will be shaped by the continued convergence of traditional analytics capabilities with emerging Al technologies, creating new opportunities for innovation and value creation across all sectors of the global economy.

Company Overview

We are a leading global pure-play digital analytics Company, experiencing strong and sustained growth. LatentView Analytics helps businesses gain a competitive edge by integrating both traditional and digital data to enable digital transformation. Our solutions offer a 360-degree view of digital consumers, empowering our clients to uncover new revenue opportunities, predict product trends, boost customer retention, and make smarter investment decisions.

We partner with over 40 Fortune 500 and similar enterprises to build and execute comprehensive analytics strategies. Our strengths lie in digital solution accelerators, big data capabilities, predictive social media analytics, and next-generation analytics tools. Unlike firms that focus solely on strategy or execution, we differentiate ourselves by combining deep technology expertise with an outcome-driven approach. Our partnerships with industry leaders in cloud platforms, data visualization, engineering, and customer data platforms allow us to deliver scalable and impactful solutions.

Since our inception, we have helped clients turn data into meaningful business insights, driving holistic, sustainable growth. We continue to invest in cutting-edge technologies to ensure our clients move confidently from raw data to actionable intelligence. As of FY25, we proudly serve 77 active clients across a diverse global footprint. Our customer base spans various sizes, geographies, and industries, primarily in Technology, CPG and Retail, Financial Services, and Industrials including Automotive, Manufacturing, Oil & Gas, and Logistics.

We remain committed to pushing the boundaries of whats possible with analytics, helping organizations thrive in an increasingly digital world.

Cross-Industry Functional Expertise

We bring deep functional expertise across a wide range of sectors, offering tailored analytics solutions that address unique business challenges:

Financial Services: Fraud detection, customer insights, marketing performance, and risk management.

Technology: Advanced analytics for marketing, supply chain optimization, risk assessment, and subscription management.

Retail: Customer behavior analytics, targeted marketing insights, and supply chain efficiency.

Industrial: Comprehensive analytics spanning customer engagement, marketing effectiveness, and supply chain operations.

Consumer Goods: Customer demand forecasting and streamlined supply chain analytics.

Our domain-specific capabilities empower clients to make data-driven decisions and accelerate performance across critical business functions.

Financial Performance Review

Profit & Loss Summary					(In Rs. million)
		Year ended March 31
Particulars	2025	%	2024	%	Growth (%)
Revenue from Operations	8,478	100%	6,407	100%	32.3%
Other Income	689	8%	737.02	12%	-6.5%
Employee Benefits	5,609	66%	4,339	68%	29.3%
Selling and Admin Expense	913	11%	707.6	11%	29.0%
Finance Cost	66	1%	30.47	0%	115.2%
Depreciation and Amortisation	293	3%	96.61	2%	203.4%
PBT	2,287	27%	1,970	31%	16.1%
Tax Expense	552	7%	384	6%	43.9%
Profit After Tax	1,735	20%	1,586	25%	9.4%
EBITDA	1,957	23.08%	1,360	21.23%	43.8%

1. Revenue

For the financial year ended March 31, 2025, the Company reported consolidated operating revenue of Rs.8,478 million, compared to Rs.6,407 million in FY24 - representing a strong year-on-year growth of 32.3%. This performance is particularly noteworthy given the subdued demand environment during the year. The growth includes an inorganic contribution of approximately 10%, reflecting successful execution of our strategic initiatives, including acquisitions.

Our largest business vertical, Technology, continued to be the key growth driver, contributing approximately Rs.5,783 million in FY25 - achieving an annual growth of 22%. The Financial Services vertical also delivered exceptional performance, contributing Rs.800 million and registering a 63% year-on-year growth. These results are a testament to our strong domain capabilities and execution excellence, as well as the solid demand environment in our focus industries.

Our consistent revenue growth across key verticals and the effective integration of inorganic initiatives reaffirm the resilience of our business model and our ability to deliver value in dynamic market conditions.

2. Other Income

Our other income for the year ended March 31, 2025, is Rs.689 million against Rs.737 million. During FY25, investment in bonds, mutual funds and government securities constituted 74% of the entire investment portfolio as compared to 53% in FY24. Out of the total investments as of March 31, 2025, 64% of investments were held in India and the remaining were held in other geographies. Decrease in interest income on account of utilization towards acquisition of 70% stake in Decision Point group.

3. Employee Benefits

On a consolidated basis, our payroll and related benefits cost increased by 29.3% and incurred Rs.5,609 million for the year ended March 31, 2025, compared to Rs.4,339 million for the year ended March 31, 2024, an increase of 29.3%. As a percentage of revenue, payroll costs decreased from 67.7% in the previous year to 66% in the current year.

U. Selling and Admin Expenses

As a % of revenue, selling and admin expenses remained flat at 11% in the current year. In absolute terms, SG&A grew by 29.0% in the current year due to the following factors:

• During the year, the subscriptions and hosting charges have increased by 51% driven by Incremental investment in cyber security measures.

• Travel and conveyance cost was higher by 85% for FY25 on account higher immigration cost.

• Legal and professional charges increased by 20% primarily driven by consulting services opted in relation to acquisition of Decision Point.

5. Depreciation and Amortisation

Our depreciation and amortisation expense has increased from 1.5% in the previous year to 3.5% as a percentage of revenue from operations in the current year.

6. Profitability

During the year ended March 31, 2025, our Company earned a profit of Rs.1,735 million (20.5%) as compared to Rs.1,586 million (24.8%) for the year ended March 31, 2024. Profit margin for FY25 shrunk on account of:

• Incremental amortization of intangibles on account of acquisition of Decision point subsidiary.

• Drop in other income by Rs.47.62 milllion

Balance Sheet

Cash and Investments

Our cash and investment position as at March 31, 2025 was at Rs.11,562 million as compared to Rs.12,744 million as at March 31, 2024. Breakup of investments is as follows:

		(In Rs. million)
	March 31, 2025	March 31, 2024
Investment in bonds	3,820	3,530
Investment in Mutual funds	2,201	1,995
Investment in fixed deposits	2,322	4,339
Investment in government securities	2,458	1,232
Cash in Bank	694	1,648
Total	11,506	12,744

We have operationally generated Rs.1,304.74 million in the current year with cash conversion of 72%.

Trade Receivables

Our trade receivables as on March 31, 2025, was at Rs.1,847.91 million as compared to Rs.1,131.37 million as at March 31, 2024. Days sales outstanding for the year ended March 31, 2025, was at 63 as compared to 59 as on March 31, 2024.

Total Equity

Major events and corresponding movements pertaining to total equity:

								(In Rs. million)
Particulars	Opening	Bonus issue	IPO	Share options exercise	Profit for the year	Others	Items of OCI	Closing
Share capital	206	-	-	1	-	-	-	206
Securities premium	4,647	-	-	72	-	-	-	4,719
Retained earnings	8,454	-	-	-	1,742	(691)	22	9,526
Other reserves	437	-	-	(13)	-	50	74	548
Total	13,744	-	-	60	1,742	-	96	15,000

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more) as compared to the immediately previous financial year) in key sector-specific financial ratios. The Company has identified the following ratios as key financial ratios:

Particulars	Consolidated
	FY25	FY24
Revenue Growth (%)	24.4	18.9
Net Profit Margin (%)	18.92	22.21
Operating Profit Margin (%)	18.85	19.25
Debtors Turnover (No. of days)	63	59
EPS Basic ( Rs.)	8.45	7.73
Return on Equity (%)	12.7	11.7

Operational

Review

Talent pool

We are a dynamic and expanding team of over 1,600 professionals (post inorganic acquisition i.e. Decision Point), combining deep expertise in business, technology, and mathematics. Spread across global delivery centers and client locations, our diverse talent pool fosters a culture of collaboration and innovation, driving impactful solutions worldwide.

We added 372 people during the year on a consolidated basis. Team bifurcation by qualification:

Board of Directors

As on March 31, 2025, LatentView Board comprises of 6 members, constituting 4 Independent Directors and 2 Whole Time Directors.

After the financial year-end, in Board meeting held on May 02, 2025, the Board has approved the appointment of Dr. Anindya Ghose as an Additional Director for a term of 5 years.

People Strength

As of March 31, 2025, the Companys total headcount stood at 1,650, reflecting an increase from 1,280 employees as of March 31, 2024.

Recognition

LatentView Analytics was honored with several awards and recognitions over the year, including:

Risk governance

A Companys success depends significantly on how effectively it manages inherent business risks. Operating in a dynamic sector shaped by numerous internal and external factors, the organization has implemented a structured risk management framework. To this end, a Risk Management Committee is in place, with the mandate to identify, assess, mitigate, monitor, and report risks. The Committee is empowered with defined responsibilities and authority to fulfil this role.

Major Risks and Risk Mitigation Activities

Risks	Mitigating Actions
Revenue concentration
Approximately 90% of our revenue is generated from the United States. Any political, economic, or social disruptions in this region could have an adverse impact on our financial performance.	• While the US continues to be our core market, we have been proactively diversifying by increasing our investments and client engagements in Europe and the Asia-Pacific regions to reduce dependence on a single geography. In addition, our recent acquisition has enabled us to expand into the Latin America (LATAM) market, further strengthening our global presence and opening new avenues for growth.
	• A majority of our key clients are Fortune 500 companies. We engage with multiple buying groups and decision-makers within these organizations to broaden our influence and ensure continuity.
A significant portion of our revenue, over 62% and 72%, is derived from our top 5 and top 10 clients, respectively. Any shift in these clients strategic direction, preferences, or spending priorities could materially affect our operations and growth prospects.	• Nearly 40% of our client base comprises Fortune 500 companies, providing a strong foundation of business stability and clearer visibility into future opportunities.
	• Each of our major clients is supported by dedicated account managers who ensure service quality, consistency, and responsiveness through a highly skilled delivery team.
	• We have developed a focused approach to target select Fortune 1000 and digitally native enterprises with the potential to invest over US$2 million in analytics initiatives. Our strategy includes deepening executive-level engagement with these organizations.
Service commoditization
Our service offerings face the risk of	• We conduct regular evaluations of our service portfolio to identify offerings that are susceptible to commoditization or automation.
commoditization, productization, or automation, particularly with the rapid advancements in Generative AI (GenAI).	• We continuously assess the insights delivered through our services, categorizing them by impact into DEL 1, DEL 2, and DEL 3, where DEL 1 represents low impact and DEL 3 indicates high-value, strategic insights.
This could potentially affect our competitive differentiation and pricing power.	• GenAI is regarded not only as a challenge but also as a strategic opportunity. We are incorporating GenAI to augment and enhance our current offerings, with 8-10% of our work last year utilizing GenAI or Agentic AI components in project delivery, to accelerate time to market and time to value.
	• Our approach includes repositioning select services to align with and amplify our GenAI capabilities, thereby ensuring continued relevance and value for our clients.
Emerging technologies
Rapid advancements in emerging technologies such as Generative AI (GenAI) may disrupt our clients industries and, in turn, impact the relevance or demand for our services.	• We proactively invest in understanding and adopting emerging technologies, staying ahead of industry shifts, and equipping our teams with the necessary skills.
	• Our long-standing partnerships with leading technology providers enable us to adapt quickly and deliver value-driven solutions.
	• We apply robust data science techniques, data engineering frameworks, and advanced visualization tools to transform raw data into actionable business intelligence.
	• By combining deep industry knowledge with exploratory data analysis and scalable data science models, we identify critical business metrics and deliver strategic recommendations to our clients.

 

Risks	Mitigating Actions
Service delivery risk
Absence of a formalized mechanism to assess and monitor client satisfaction may result in overlooked concerns and unresolved feedback, potentially leading to dissatisfaction and attrition.	• A specialized internal team routinely carries out operational audits and quality checks to identify and minimize delivery-related risks.
	• We conduct independent, bi-annual client satisfaction surveys that evaluate every facet of the client experience. The insights gathered are analyzed, shared with the respective teams, and followed by corrective or enhancement measures where needed.
Resource planning and management risk
A lack of available talent or a mismatch of required skills could affect the timing and quality of our service delivery.	• Resource planning and management are initiated even before contract signing to ensure that we have the right team in place to meet client expectations.
	• The management actively monitors our diverse talent pool and skillsets to ensure we are equipped and ready to meet market demands.
Information and cyber security risk
Unauthorized exposure or theft of sensitive client data may breach non-disclosure agreements and could lead to significant financial and reputational harm.	• We implement robust privacy protocols in line with applicable laws and regulations across various regions. Our policies enforce technical safeguards, employee training, and awareness programs to ensure responsible management of confidential data.
	• Furthermore, we restrict data access to only what is stored on client systems or cloud platforms, ensuring that no information is retained on local devices.
Talent retention risk
Our growth and operational success are heavily dependent on key management, senior teams, and sales personnel	• The opportunity to tackle complex challenges for major clients, including Fortune 500 companies, provides a compelling environment for attracting and retaining top talent.
A failure to attract, retain, develop, and motivate skilled employees could adversely affect our operations and financial performance.	• We offer innovative incentive programs based on performance, such as ESOPs, and sponsor advanced educational opportunities to foster continuous growth.
	• Additionally, we regularly organize employee engagement and recognition initiatives to boost morale and retention.