Logica Infoway Ltd Management Discussions

“ANNEXURE C”

Pursuant to regulation 34(2) (e) of the Securities Exchange Board of India (Listing Obligations & Disclosure requirements) Regulation, 2015 the Board of Directors are hereby presenting the Management Discussion and Analysis report for the Financial Year ended 31st March, 2025.

1. INDUSTRY STRUCTURE & DEVELOPMENT

India sustained its position as the fastest-growing major economy in FY 2024-25, recording GDP growth of around 6.5% (India Briefing. 2024), supported by strong domestic demand, policy support, and robust macro fundamentals. The electronics manufacturing sector continued its upward trajectory, with total production estimated at ?^ 11.3 lakh crore (US$135 billion) (ElectronicsFor You, 2024), driven largely by mobile phones, IT hardware, consumer electronics, and industrial electronics. Mobile phone manufacturing alone contributed a significant share, with more than 99% of devices sold in India now being produced domestically (PIB, Aus 2024), reflecting the success of the Governments Production- Linked Incentive (PLI) schemes. The sector employs nearly 2.5 million people and remains on track to achieve the US$300 billion milestone by FY 2025-26 (Times of India, 2024).

Parallelly, Indias Information Technology (IT) and Business Process Management (BPM) industry remained a cornerstone of the economy, achieving revenues of ?US$283 billion, of which ?US$224 billion came from exports (Wikipedia citingNASSCOM, 2024). The sector contributes about 7.3% to national GDP and employs over 5.8 million professionals. With increasing digital adoption, innovation in AI, cloud, and cybersecurity, and the growing scale of electronics manufacturing, India is steadily consolidating its position as a global hub for technology, manufacturing, and services.

2. OVERVIEW - FY 2024-25

Market Overview:

• India - The Rising Global Economic Power

India continues to be the worlds fastest-growing major economy, with full-year GDP for FY 2024-25 growing by 6. 5% - propelled by robust domestic demand, rising investments, and a resilient workforce (India Briefing, 2024).

• Electronics Manufacturing - A Booming Sector

- Indias electronics manufacturing industry has experienced remarkable growth - expanding from US$29 billion in FY 2015 to around US$101 billion in FY 2023

- The Ministry of Electronics & Information Technology projects this industry to reach US$300 billion by FY 2025-26 (MeitY, 2023).

- As of FY 2024-25, electronics production in India stood at approximately Rs. 11.3 lakh crore (?US$135 billion) (Electronics For You, 2024).

- The workforce in electronics manufacturing now numbers around 2.5 million people, underlining its growing role in employment creation (Times of India, 2024).

- Notably, 99.2% of mobile phones used domestically are now manufactured in India (PIB, Aus 2024).

• IT & Technology Services - A Strong Growth Engine

- The tech sector - comprising IT, software, and business services - grew to US$282.6 billion in FY 2024-25, marking a 5.1% year-over-year increase (NASSCOM, 2024).

- IT exports were approximately US$224 billion, while domestic revenue accounted for about US$58 billion (nasscom, 2024).

- Overall, the tech industry now contributes around 7.3% of Indias GDP (nasscom, 2024).

- A total of 126,000 new jobs were generated in the sector during FY 2024-25, with the industrys employee base expanding to 5.8 million (nasscom, 2024).

Indias macroeconomic trends and strategic investments underline its growth trajectory - fueling expansion in both electronics manufacturing and IT services. Together, these sectors are not only strengthening domestic capability but also enhancing Indias status as a vital global technology and manufacturing hub.

Company Overview:

In FY 2024-25, the Company strengthened its retail presence by opening 30 new stores, including 10 brand-exclusive Samsung Experience Stores. Operations were expanded into Gurgaon, Noida, Faridabad, Ghaziabad, Moradabad, and several Tier-2 cities across West Bengal, further enhancing our geographical reach. With these additions, the total store count increased to 52 as of March 31, 2025, covering 31,901 sq. ft. of retail space. During the year, the Company was also recognized by leading brand partners for excellence in retail experience, strong sell-through performance, and efficient store operations.

Alongside retail expansion, the Company reinforced its distribution capabilities by being appointed as Tier-1 national distributor for Samsung Notebooks and Laptops across West Bengal, Delhi NCR region; Tier-1 distributor for Brother Printers in West Bengal; and securing a distribution mandate for Infinix covering smartphones, tablets, TVs, audio, and wearables in Gurgaon. The e-commerce vertical continued to scale through B2B fulfillment partnerships with Amazon and Flipkart for flagship events such as Big Billion Days and Prime Day, while maintaining strong alliances with leading OEMs including OnePlus, Realme, HP, Asus, and Lenovo. To further enhance scalability, operational efficiency, and real-time data visibility, the Company successfully upgraded its enterprise backend from Tally ERP to SAP Business One in April 2025.

Management Overview:

FY25 was a year of disciplined execution and strong operating leverage for Logica Infoway Limited. The Company sustained growth across its multi-vertical platform?Retail, Distribution, E-Commerce, and Exports?by focusing on capital efficiency, deepening OEM partnerships, upgrading infrastructure, and strengthening its retail footprint. These efforts enabled profitable growth despite a dynamic and competitive market environment.

• Revenue stood at ^ 11,149.5 million in FY25, up by 4.5% from Rs. 10,671.1 million in FY24.

• EBITDA increased by 32.5% to Rs. 267.2 million in FY25 from Rs. 201.7 million in FY24.

• Profit After Tax (PAT) grew by 29.9% to Rs. 105.1 million in FY25 from Rs. 81 million in FY24.

• EBITDA margin improved by 50 basis points to 2.4%, driven by a higher contribution from the retail segment.

• PAT margin also improved marginally to 0.9%.

3. KEY OPERATIONAL VERTICALS

• Expanding Retail Footprint - Driving Growth from the Ground Up

The retail business delivered strong momentum in FY25, with revenue increasing by 84% to Rs. 1,736 million, compared to Rs. 946 million in FY24. This growth was driven by the addition of 30 new retail stores during the year, including 10 Samsung Experience Stores. As of March 31, 2025, the Company operated 52 outlets across 31,901 sq. ft. of retail space, spread across West Bengal, Delhi, Uttar Pradesh, and Haryana.

The Companys format mix - including HP World, Samsung Cafes, and Multi-Brand Outlets - enabled it to serve a broad customer base with focused brand alignment. Backend retail operations were fully migrated to SAP Business One in April 2024, enabling real-time inventory control, stronger demand-performance tracking, and sharper execution. Retail emerged as the Companys key margin driver, supported by favorable unit economics, exclusive billing arrangements, and improved footfall conversion.

• Distribution - Engine Powering Scalable Growth

The distribution vertical reported revenue of Rs. 5090 million in FY25, up 5.8% from Rs. 4,750 million in FY24. Growth was driven by continued strength in Tier-I partnerships with global OEMs such as HP, Samsung, Dell, Lenovo, Asus, Brother, and Infinix.

The Company operated across 11 states, supported by 13 warehouses and a channel network of over 3,000 retail partners. Operations efficiency was enhanced through deeper inventory integration and SAP-led automation, enabling faster order processing and better delivery compliance nationwide. Distribution remained the foundation of scale and reach for the Company, enabling nationwide coverage and sustained contribution to overall growth.

• Scaling Digital Commerce - Our E-Commerce Edge

E-Commerce revenue reached Rs. 2,844 million in FY25, reflecting a 6.9% increase over Rs. 2,661 million in FY24. The business continued to perform as a focused and digital fulfillment partner during national campaigns such as Big Billion Days, Great Republic Day, and Prime Day.

Logica maintained strong brand partnerships with Amazon, Flipkart, Oppo, iQoo, Realme, HP, Asus, and Lenovo. Its 13-warehouses infrastructure backed efficient picking and shipping across diverse product categories. SAP integration enhanced backend tracking and optimized order flow, strengthening Logicas position as a trusted, high-efficiency e-commerce operator.

• From Volume to Value - Shifting Gears from Export to Domestic Retail Expansion

Exports revenue stood at Rs. 1,479 million in FY25, compared to Rs. 2,006 million in FY24, registering a decline of 26.3%. This reduction was a result of strategic reallocation of capital from low-margin export opportunities to retail-driven, margin-accretive businesses in India.

The Company prioritized expansion in domestic high-growth markets?particularly in North and East India?through increased retail store openings and deeper local partnerships. Export remained an opportunistic play with selective, high-margin categories such as laptops, accessories, and premium electronics. Improved ROCE propelled a more efficient allocation of resources, with greater emphasis on profitability and scale-driven expansion.

• Strong Financial Performance - Margin Inflection Achieved

- Revenue for the year stood at Rs. 11,149.5 million, up 4.5% over the previous year.

- EBITDA increased by 32.5% to Rs. 267.2 million, with EBITDA margin improving by 50 basis points to 2.4%.

- Profit After Tax rose by 29.9% to Rs. 105.1 million, with PAT margin increasing from 0.8% to 0.9%.

The improvement was driven by a favorable mix shift toward the retail segment, scale-driven operating leverage, and prudent cost management.

4. OPPORTUNITIES

a. Strong Leadership and Management Expertise

Our experienced leadership team, supported by a capable senior management cadre, continues to drive the Companys growth by combining strategic vision with operational excellence. Their deep understanding of consumer behavior, market trends, and business dynamics has enabled us to create a customer-centric culture, delivering consistently high-quality service and fostering long-term loyalty.

b. Expanding Footprint and Strategic Presence

The Company has strategically extended its presence across multiple cities, leveraging a mix of physical retail stores, distribution hubs, and digital platforms. This expansive network allows us to reach diverse customer segments effectively and provides a solid foundation for scaling our operations in emerging and high-potential markets.

c. Strong Brand Partnerships and Operational Scale

Our longstanding relationships with leading global and domestic brands in mobile, IT hardware, and allied products empower us to offer a wide portfolio of products. These partnerships, combined with our scale of operations, enhance our bargaining power, optimize costs, and support superior margins. Additionally, our brand recognition and widespread customer access strengthen our market position, enabling steady and sustainable growth.

d. Advanced Customer Support and Fulfillment Capabilities

We prioritize end-to-end customer satisfaction through dedicated support teams, regional language assistance, and streamlined after-sales services. Efficient supply chain management, robust distribution networks, and real-time tracking systems ensure timely delivery and installation, while keeping operational costs under control.

e. Leveraging Digital Channels and Financing Solutions

Our active engagement in e-commerce platforms, combined with flexible consumer financing options such as EMI plans, card-based payments, and fintech collaborations, provides additional avenues to attract and retain customers, expand market reach, and increase sales velocity.

5. THREATS

a. External Threats

Global economic, political, and social developments pose potential threats to the Companys business operations, cost structure, and the market price of its equity shares. Uncontrollable factors such as shifts in interest rates, economic growth trends, fiscal and monetary policies, regulatory changes, inflation or deflation, foreign exchange fluctuations, consumer credit availability, debt levels, and unemployment patterns can significantly influence performance and forecasts. In addition, geopolitical tensions, military conflicts, civil disturbances, and other events affecting consumer confidence, spending, and tourism may further threaten the Companys revenue and results.

b. Operational and Political Disruptions

Civil disturbances, extreme weather events, regional conflicts, and political instability may adversely impact the Companys operations, supply chain, and overall financial performance.

Factors beyond the Companys control, including government policy changes, taxation adjustments, social or ethnic tensions, or other local and national developments, could disrupt business activities and influence revenue and profitability.

c. Natural Calamities and Health Crises

Events such as earthquakes, floods, fires, or other natural disasters could interrupt business operations and negatively affect financial results. Additionally, public health emergencies, including pandemics, may disrupt supply chains, reduce consumer demand, and create operational challenges. The Companys revenue, financial position, and market performance may be materially affected by such occurrences.

d. Security and Geopolitical Threats

Terrorist attacks, civil unrest, acts of violence, or war involving India or other nations could adversely impact financial markets, business operations, and the market price of the Companys equity shares. Such external events could also affect trade, investor sentiment, and the overall economic environment, thereby posing a potential threat to the Companys performance and profitability.

6. RISKS AND CONCERNS

The material risks impacting the Company have been identified based on their significance. While doing so, the following principles were considered:

• Certain risks may appear immaterial on a standalone basis but could become material when viewed in aggregate.

• Some risks may have a qualitative rather than a purely quantitative impact.

• Risks that are currently not material may assume materiality in the future.

a. Geographic concentration of operations

Our stores and distribution network are primarily located in West Bengal, Uttar Pradesh, Haryana, and Delhi NCR. A large part of our revenue is derived from these markets, making our business sensitive to any adverse events?be it economic, political, competitive, or demographic?in these regions. Heightened competitive activity, including aggressive promotions by peers, may erode our market share. The concentration of operations, therefore, increases exposure to regional risks, and any negative developments in these geographies could materially affect our business performance, revenue, and profitability.

b. Dependence on evolving consumer preferences

The retail electronics and IT hardware industry is heavily influenced by rapid shifts in consumer demand and technology trends. Our ability to anticipate, interpret, and respond to these changes is critical. Since we neither manufacture nor design the products we sell, we depend on vendors and OEMs to supply us with market-relevant merchandise. A failure to gauge customer preferences accurately may lead to excess inventory, obsolescence, and weaker brand positioning, ultimately impacting revenue and margins.

c. Competitive intensity

The sector in which we operate is marked by intense competition from organized retailers, local players, and e-commerce platforms. Larger competitors, with stronger financial and marketing muscle, wider product portfolios, and superior distribution networks, may adopt aggressive pricing or targeted promotional strategies, thereby challenging our market share. Additionally, advantages such as better locations, broader geographic presence, or deeper customer engagement may enable them to compete more effectively. Sustained competitive pressure could limit our growth potential unless we continuously invest in strengthening our value proposition and brand connect.

d. Cyclicality of consumer demand

The consumer electronics business is inherently cyclical, with demand peaking during festive seasons and new product launches. Our revenues and profitability are, therefore, subject to quarterly fluctuations. Unexpected weakness in demand during peak seasons could result in elevated inventory levels, delayed liquidation of stock, and pressure on margins. Since procurement decisions are often made ahead of demand visibility, any mismatch may have an adverse impact on our operating results.

e. Dependence on information technology systems

The smooth functioning of our operations depends significantly on our IT infrastructure, which manages inventory, sales, and overall business processes. Any disruptions?whether due to system outages, software obsolescence, or downtime at third-party service providers?could impair efficiency and accuracy. Although physical billing procedures exist as a contingency, they carry risks of errors and potential misuse. Further, vulnerabilities such as cyberattacks, unauthorized access, or malware could compromise data security and disrupt operations. While no such incidents have been reported so far, future occurrences could adversely affect our business continuity, reputation, and financial performance.

7. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Pursuant to Regulation 34(3) read with Schedule V, Part B (1) of the SEBI (LODR) Regulations, 2015, listed entities are required to disclose key financial ratios for the financial year under review along with an explanation for any change of 25% or more as compared to the immediately preceding financial year. The key financial ratios of the Company for FY 2024-25 is provided in the table below. As all variations in comparison with the previous year are less than 25%, no explanation is required to be furnished.

Ratios	Numerator	Denominator	Current Period	Previous Period	0/ % Variance	Reason for Variance
Current Ratio (in times)	Current Assets	Current Liabilities	1.29	1.25	3.62%	N.A.
Debt- Equity Ratio (in times)	Total Debt	Shareholders Equity	1.35	1.76	-23.48%	N.A.
Debt Service Coverage Ratio (in times)	Earning for Debt Service	Debt Service	0.20	0.17	20.28%	N.A.
Return on Equity Ratio (%)	Profit after Tax	Average Shareholders Equity	14.03%	13.21%	6.23%	N.A.
Inventory Turnover Ratio (in times)	Sales (Revenue from Operations)	Average Inventory	11.57	14.35	-19.36%	N.A.
Trade Receivables Turnover Ratio (in times)	Sales (Revenue from Operations)	Average Trade Receivable	11.43	14.28	-19.99%	N.A.
Trade Payables Turnover Ratio (in times)	Net Credit Purchases	Average Trade Payables	23.11	29.26	-21.03%	N.A.
Net Capital Turnover Ratio (in times)	Sales (Revenue from Operations)	Working Capital	21.54	27.69	-22.19%	N.A.
Net Profit Ratio (%)	Profit after Tax	Total Income	0.94%	0.76%	24.00%	N.A.
Return on Capital Employed (%)	Earnings before Interest and Tax	Capital Employed	34.31%	31.41%	9.22%	N.A.
Return on Investment (%)	Profit after Tax	Cost of Investment	N.A.	N.A.	N.A.	N.A.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a system of internal controls designed to provide reasonable assurance regarding the following:

• Effectiveness and efficiency of operations

• Prevention and detection of frauds and errors

• Effective use of resources

• Adherence to applicable Accounting Standards and policies

• Timely preparation of reliable financial information

Internal controls and governance process are duly reviewed for their adequacy and effectiveness on periodical basis.

The Company has appointed Punit Pandey & Associates, Chartered Accountants, Kolkata (FRN: 333246E) to conduct the internal audit whose periodic reports are reviewed by the Audi Committee and Management for bringing about desired improvement wherever necessary.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

At Logica Infoway Limited, our employees remain the cornerstone of our growth and competitive advantage. In FY 2024-25, we focused on attracting skilled talent, enhancing capabilities, and fostering a culture of learning and innovation across all functions. We strengthened our workforce through targeted recruitment, upskilling programs, workshops, and hands-on training, emphasizing technical proficiency, customer engagement, and leadership development. Employee retention and engagement were prioritized through recognition programs, career growth opportunities, mentorship, and digital learning platforms.

Looking forward, we remain committed to empowering employees, encouraging innovation, and sustaining a high-performance workforce that drives the Companys long-term strategic objectives.

10. DISCLOSURE OF ACCOUNTING TREATMENT

In the Preparation of Financial Statements, Company has followed accounting principles generally accepted in India.

11. CAUTIONARY STATEMENT

Statements in this Annual Report, particularly those relating to the Management Discussion and Analysis, including the Companys objectives, projections, estimates, and expectations, may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. These statements are subject to risks and uncertainties, including economic conditions, government regulations and tax policies, political developments, natural disasters, and other factors beyond the Companys control, which may cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

By the Order of the Board
For LOGICA INFOWAY LIMITED
[Formerly; Eastern Logica Infoway Limited]
Sd/-	Sd/-
GAURAV GOEL	SHWETA GOEL
DIN- 00432340	DIN- 00434584
Managing Director	Whole Time Director
Place: Kolkata
Date: 29/08/2025