Manugraph India Ltd Management Discussions

Economic Overview FY 2024-25

For the fiscal 2024-25, the Indian economy grew by 6.5%. This growth, however, represents the slowest pace since the pandemic year of 2020-21. Indias high tariffs could hinder integration into global value chains and deter foreign investment.

PRINTING INDUSTRY

The Indian newspaper printing industry in 2024-25 reflects a dynamic landscape where traditional print faces increasing digital disruption while showing remarkable resilience and adaptability, particularly in the regional markets. Print remains a strong medium for advertisers seeking to build trust and credibility. However, growth has been flat to marginal in terms of volume, despite revenue growth, indicating higher ad rates and premium pricing.

Regional language newspapers are key drivers of print advertising revenue and readership, with stable or increasing volumes in Marathi, Kannada, and Tamil publications. Growth is faster in smaller towns and cities, driven by factors like lesser commuting time and a continued reliance on print for local news and information.

COMPANY

The Company strived hard to increase its sales/turnover including exploring various national/international markets. The Company has immense engineering capability. The Company is in discussion with various global manufacturers for their component and/or machine manufacturing related to printing industry.

Operations during the year 2024-25 were stable. The rising raw material cost and high ERE (labour cost) lead to higher running costs.

The Company recorded total revenue from operations of Rs. 5934.82 Lakhs as compared to Rs. 6575.82 Lakhs in the previous financial year. The EBIDTA for the financial year ended March 31, 2025 is Rs. (1160.52) Lakhs as compared to Rs. (1640.00) Lakhs in the previous financial year ended March 3l, 2024. During the year, the Company incurred net loss (total comprehensive income, net of taxes) of Rs. 2643.58 Lakhs (after exceptional loss for Rs. 1179.31 Lakhs) as compared to loss of Rs. 1943.22 Lakhs in the previous year.

Opportunities

Growing readership in regional languages: Vernacular newspapers continue to demonstrate strong readership, particularly in smaller towns and cities.

Focus on hyperlocal content: Addressing community-specific news and information needs that global digital platforms cannot effectively cover creates a niche for local and regional publications

Embracing hybrid print technologies: Incorporating features like QR codes and augmented reality overlays in print materials can bridge the gap between physical and digital experiences

With rising literacy and regionalization of the newspapers offers different opportunities, the Company foresees subtle growth in print industry. Technology continues to be the prime focus for your company.

Threats

With higher costs of papers including levy of import duty and consumables, government initiatives of digitalization and environment friendly measures, the production of newspapers over the years will foresee a deep cut. Lower advertising revenue due to switch in digital media also add to mounting losses of printers.

However, expansion in market size and regionalization of printing is partly compensating this negative trend.

Outlook

In essence, the Indian newspaper printing industry in 2025-26 will likely be characterized by a hybrid approach, where print continues to be a strong medium in regional markets and for building brand credibility, while digital channels become increasingly vital for reaching wider audiences, diversifying revenue, and adapting to evolving consumer preferences

Risk and concerns

High costs of production, geographical concentration and competition risk are few of the major concerns for the Company. The Company has taken various measures which help the Company to outline the principal risks and uncertainties and then take appropriate actions that could avert operating and financial performance.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically.

Internal Control System

Adequate Internal Control System helps to prevent and detect frauds & errors, safeguarding of assets and accuracy and completeness of accounting records.

The Companys well-structured internal control systems which are subjected to regular assessment for its effectiveness, reinforces integrity of Management and fairness in dealing with the Companys stakeholders.

Your company has appointed an Independent Internal Audit teams for conducting regular internal audits of the systems and procedures of financial reporting and operations of the Company. The Audit Committee periodically reviews the Internal Audit Reports, scopes and plans, significant findings and corrective actions, if any.

The Statutory Auditors have conducted a review of Internal Financial Control as required under the Companies (Auditors Report) Order, 2016 and have found the same to be very effective.

Key Financial Ratios:

In accordance with SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the details of significant changes (change of 25% or more as compared to the immediately previous financial year) are given below: