Majestic Research Services & Solutions Ltd Management Discussions.

Industry Overview

The global annual revenue of the market research industry is estimated around 45 billion dollars. The MR industry is seeing a gradual and consistent growth. Meanwhile in India, the revenue grew from 602 Million USD (2008) to 1178 million USD (2018).

The industry overview services study reveals 2017 has seen a lot of technological advances in the field of MR work and the impact has been for good.

Since India is a country with a vast demography, market research is essential for start-ups or existing conglomerates. In-depth MR in India takes care of all the queries of the marketers - giving them the required information for a smooth marketing success.

Company Overview

Your company, member of MRSI and DIN (Digital Insight Network - Global) is a growing digital market research agency, headquarter in Mumbai. We trust that, we have created strong footprints pan India by working with top most corporates. The company provides to clients a comprehensive understanding of what consumers observe and what they buy and how those choices intersect. We deliver critical media and marketing information, analytics and what consumers read, watch and listen to (consumer interaction across different mediums) Pan India. Our information, insights and solutions help our clients maintain and strengthen their market positions and identify opportunities for profitable growth. We help our clients enhance their interactions with consumers and make critical business decisions that we believe positively affect their sales and profitability. We exhaustively rely on usage of technology for data acquisition offering reliability, validity and faster turnaround times to its clients.. The company has wide range of offerings such as Eye Tracking, Mobile Analytics, Video Analysis, Facial Recognition, Digital Tracking, Online Communities, Neuroscience, Emotional Analysis, Automated Audience Measurement, Sensory Sciences, etc. The information thus brought together, can deliver powerful insights into the effectiveness of branding, advertising and consumer choices.

Opportunities and Threats:

The country has retained its position as the third largest start-up base in the world as per a report by NASSCOM. Real GDP growth slowed to 7.1 % in FY16/17 from 8 %

Mr. Sarang Panchal - Managing Director

in FY15/16, and to 5.7 % in Q1 FY17/18. However, it is expected to bounce back to an annual rate of 7.0%.

Despite the domestic economic sluggishness, India so far has had a good international financial situation. The countrys export growth rate has been on an increase in FY 16/17. Indias Foreign Direct Investment (FDI) inflows reached US$ 208.99 billion till December 2017.

Lots of forecasts and expectations are on the cards for the future of the economy of India.

Segment wise performance:

We are doing significant investments in resources and associates all over India, supported by strength of Majestic MRSS, having two decades of experience with presence in major countries of APAC and MENA region, to scale up our operations and depth of solutions in our quest to be become home-grown leader - preferred choice for domestic market insights.

The current financial year has been quite fruitful for the company. We won various prestigious projects like LASI Contract, Fuel consumptions of OMC, Airport survey across India and others. MRSSIndia was also involved in the successful acquisition of our Singapore subsidiary MR-AP. Locally, we have inaugurated a new office in Shillong (North-eastern Zone) and introduced a new branch of Social Media Insights, to make ours a 360 market research service provider. MRSS India has also being featured in various media- CNBC BAJAR & CNBC AAWAZ. More good news for Majestic research as the company is selected as the country partner for Global MR Network.

Internal Control Systems and their Adequacy:

For Internal Financial Control Systems efficientpolicies and procedures are adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

Financial Performance with respect to Operational Performance:

During financial year 2017-2018, your company has earned Profit After Tax (PAT) of Rs 136.13 million as compared to Rs 46.30 million in previous Year.

Particulars FY 2017-18 FY 2016-17
Revenue (In Millions) 653.75 229.66
EBITDA Margin (%) 30.91 32.50
Profit After Tax (%) 20.82 20.16
EPS ()* 13.61 4.93
Book Value Per Share ()* 39.92 20.20

*Computed after considertaion of Bonus Issue. Industrial Relations front:

During the Financial year 2017-18, your company maintained cordial and harmonious relations at all levels of the organization.

Material developments in Human Resources:

The company has always recognized its Human assets as a critical and therefore, considers high importance to human resource development for the growth of the company. It selectively handpicks candidates of positive qualities and flair aptitude. Apart from recruitments, the company also takes various initiatives to enhance and train the current assets to amplify their potential.

The key criterion that we have looked at adding people was sector specialists or vertical leaders. Adding these verticals via these personnel is what results in additional revenue stream. This is a key part of the organic strategy for MRSS.

Outlook of the Company

Your company, member of MRSI and DIN (Digital Insight Network - Global) is a growing digital market research agency, headquartered in Mumbai. We trust that, we have created strong footprints pan India by working with top most corporates.

We continue to enhance our core competency in Market Research industry by improving insight approaches and investing in new technologies. We have also invested significantly in our data bank to enable the integration of distinct large-scale data sets including those owned by third parties. We believe that our expertise, established standards and comprehensive database provide us with a distinct advantage as we deliver more precise insights to our clients. We continue to focus on innovation to deepen our capabilities and enhance our analytics edge to capitalize on industry trends.

Risks and Concerns:

Technology Risk: Technology is continuously changing and we need to ensure that we constantly incorporating same new and existing service offerings to compete effectively in market place. If we are not able to successfully complete the development and introduction of new services, including new managed services, in a timely manner, the business could be adversely affected. We rely on a combination of in-house development and third-party technology licensing and/or acquisition to bring the new services to market. In either case, it is important that we are able to obtain any necessary third party intellectual property rights on a cost effective basis. If another person holds the technology that is necessary for us to provide our services, under a patent or other intellectual property right, a license for the use of that technology may have to be negotiated. The negotiations may not arrive at a price that is acceptable. The existence of such patents or other intellectual property rights, or the inability to negotiate a license at an acceptable cost, for any such technology, could effectively hinder our ability to provide services using that particular technology.

Operating Risks: We have making significant investments and will continue to need investments for newer technologies & solutions and working capital for high value projects, which may stretch liquidity and create execution risks. Operations and profitability may be adversely affected if the funding required for the plans is relatively more expensive or delayed.