Macobs Technologies Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW:

The global economy is projected to experience a slowdown, with the OECD forecasting global GDP growth to decrease from 3.3% in 2024 to 2.9% in 2025 and 2026. This deceleration is primarily attributed to factors such as heightened trade policy uncertainties, tighter financial conditions, and diminishing consumer and business confidence.

Notably, the United States and China are expected to face more pronounced slowdowns, while other economies may witness more moderate adjustments.

Inflationary pressures are anticipated to persist, with the OECD projecting inflation in its member countries to remain elevated at 4.2% in 2025, up from 3.7% in previous forecasts. This sustained inflation is influenced by factors such as persistent services price inflation and ongoing supply-side constraints.

INDIAN ECONOMY OVERVIEW:

Indias economic growth remains robust, with the International Monetary Fund (IMF) projecting a real GDP growth rate of 6.4% for the fiscal year 2025 26. This growth is underpinned by strong domestic consumption, particularly in rural areas, and continued structural reforms aimed at enhancing economic resilience.

The Reserve Bank of India (RBI) continues to implement prudent monetary policies to manage inflation and support sustainable growth.

Despite global challenges, Indias economic fundamentals remain strong, supported by a young demographic profile, expanding digital infrastructure, and a growing middle class.

BUSINESS OVERVIEW:

Our Company operates in the male grooming industry, focusing on below-the-belt grooming products and services.

We conduct our business exclusively through e-commerce channels, providing a range of products designed for mens grooming needs.

Our offerings include specialized trimmers, hygiene products tailored for male skin, and various self-care items.

These products are developed with a commitment to innovation, safety, and effectiveness, catering to the unique requirements of our target demographic.

In addition to our product offerings, we are dedicated to educating and changing societal perceptions about male grooming.

We leverage online platforms to create and share content that promotes awareness and open conversation on topics traditionally considered taboo.

Our approach is deeply customer-centric, focusing on understanding and meeting the evolving needs of our consumers through digital engagement and feedback mechanisms.

INDUSTRY OVERVIEW:

The Indian Mens Grooming Market is estimated to grow at a compound annual growth rate (CAGR) of around 12.1% during the forecast period from 2024 to 2030. This growth is driven by increasing awareness about health, wellness, and personal care among men, influenced by changing societal norms that place greater emphasis on personal grooming and presentation.

The rise of social media and exposure to global beauty standards have made a considerable share of Indian men more conscious of their appearance and actively seeking ways to enhance it. Additionally, the influence of celebrities and influencers showcasing well-groomed looks has further encouraged men to pay attention to their grooming habits.

With greater awareness of the importance of grooming, men have been increasingly investing in skincare, haircare, and grooming products tailored to their skin type and climatic conditions. The availability of a diverse range of grooming products has surged the demand for mens grooming products in the country, thus augmenting market growth.

Moreover, with the rising awareness about chemicals and cruelty-free ingredients, consumers have been inclined towards safe ingredients in different product formulations. This trend is leading manufacturers to launch innovative and new product formulations, surging demand for label-friendly and cruelty-free products.

Indias mens grooming industry is flourishing due to reasons like confidence and achieving a competitive edge in career growth.

Men in urban India, with their developing disposable income, familiarity with the latest trends, and concerns for appearances, are spending significantly on grooming items. In todays world, growing a beard is also considered a hip style many men have adopted, further spurring growth in grooming products for men across the continent.

HUMAN RESOURCES:

The Company recognizes that its committed and talented workforce is a key factor in driving sustainable performance and growth.

As one of the most critical assets of the Company, its people are responsible for its competitive advantage.

The Company is committed to recruiting and retaining the most relevant and best industry talent. Employees are thereafter nurtured, developed, motivated, and empowered to boost their skills and performance capabilities.

The Company continuously seeks to inculcate within its employees a strong sense of business ethics and social responsibility.

Relations with the employees at all levels remained cordial during the year. The Company had 16 permanent employees as on March 31, 2025.

INTERNAL CONTROL MECHANISM:

The Company has adequate internal control procedures commensurate with its size and nature of business.

Your Company has clearly laid down policies, guidelines, and procedures that form a part of the internal control systems.

The adequacy of the internal control systems encompasses the Companys business processes and financial reporting systems and is examined by the management as well as by its internal auditors at regular intervals.

The internal auditors conduct audits at regular intervals to identify weaknesses and suggest improvements for better functioning.

The observations and recommendations of the internal auditors are discussed by the Audit Committee to ensure timely and corrective action.

DISCLAIMER CLAUSE:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations.

Actual results could differ materially from those expressed or implied.

Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, and other statutes and incidental factors.

KEY RATIOS:

For the period ended

Particulars

31-Mar-25

31-Mar-24%Change

Reason for Variance (For

Variation of More than 25%)

COLSPAN=2>

9.55

3.32

187.68

The improvement in the Current

Current Ratio (in times)

Ratio is primarily attributable to a

significant increase in Current Assets

0.02

0.24

(90.91) %

The ratio has decreased due to a

Debt Equity ratio (in times)

significant increase in Total Equity.

Debt Service coverage Ratio (in

2.09

14.38

(85.45) %

The ratio has decreased due to a

significant increase in Total Debt.

times)

Return on Equity (in %)

0.09

0.22

(57.63) %

This is mainly due to the significant

increase in equity shareholder funds

compared to our net profit.

Inventory

Turnover

ratio

(in

43.95

130.84

(66.41) %

This is mainly due to the significant

times)

increase in Purchase and impact on

our Closing stock.

Trade

Receivable

Turnover

20.36

127.09

(83.98) %

This is mainly due to the significant

ratio (in times)

increase in Sale compared to our net

profit

23.23

13.48

72.34%

In this reporting period, we noticed a

Trade

Payable Turnover ratio

positive change in our Trade Payable

(in times)

Turnover Ratio, signaling improved

management of trade payables.

0.84

1.80

(53.27)%

This is mainly due to the significant

Net Capital Turnover

Ratio (in

increase in Net Capital compared to

times)

our Sales.

Net Profit Ratio (in %)

0.11

0.12

(9.34)%

0.13

0.30

(57.15)%

This is mainly due to the significant

Return on Capital Employed (in

increase in Net Capital compared to

%)

our EBIT.

Return on Investment

0.14

0.20

(29.81)%

This is mainly due to the significant

increase in Value of Investment.