You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 172. You should also read the section titled "Risk Factors" on page 28 and the section titled "Forward Looking Statements" on page 20 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated financial Statements. Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated June 16, 2025 which is included in this Red Herring Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.
BUSINESS OVERVIEW
We are involved in the business of providing cybersecurity solutions to various organizations across India. Founded in 1998 and transitioned into the cybersecurity domain in 2010. Our company delivers comprehensive cybersecurity solutions and services for protection and maintaining integrity of information and systems. At Meta Infotech, we work for safeguarding the digital infrastructures of companies belonging to diversified industries such as Banking, Capital Market, NBFC, IT/ITES, Cybersecurity, Automobile, Insurance, Pharmaceutical, FMCG, Real Estate, Hospitality, Manufacturing and Other conglomerates etc. Leveraging our domain expertise, we provide end-to-end cybersecurity solutions designed to address the challenges faced by these sectors. By optimizing and securing network resources we enable organizations to manage their digital infrastructure effectively, ensuring reliable and scalable connectivity to support their evolving network needs.
We procure the cybersecurity products from various international OEMs who develop solutions to ensure secure access, defense for web applications, cloud workload protection etc. We have entered into agreements as authorized resellers with a various OEMs for distribution of cybersecurity products, softwares along with its licenses and subscriptions etc. Our comprehensive suite of cybersecurity solutions includes:
? Secure Access Service Edge (SASE): Also known as ZTNA, brings cloud native security technologies together with wide area network (WAN) ? Database Security: Monitors and analyse database activities in real-time to detect and respond to potential security threats.
? Endpoint Detection and Response Security: Protecting devices and endpoints from threats and breaches. ? Data Security: Ensuring the integrity and confidentiality of sensitive information.
? Application Security: Securing applications from potential exploits and vulnerabilities.
? API Security: protect Application Programming Interfaces (APIs) from threats & vulnerabilities and enables interactions between different software systems ? Cloud Security: Protecting cloud-based assets and services from cyber threats.
? Security Information and Event Management (SIEM): Detects security issues by centralizing, correlating, and analyzing data across an IT network.
? Identity Security: Managing and securing user identities and access controls.
? Network & Perimeter Security: Defending against external threats and vulnerabilities at the networks edge. ? Email Security: Safeguarding communications and preventing phishing attacks.
We offer a holistic suite of services ranging from consulting to implementation, along with annual maintenance and sustenance, catering exclusively to the cybersecurity needs of our clients. Moreover, we also provide on-site resources along with training services to the organizations. Our end to end solutions are accompanied with deployment of resources towards multiple services as under:
? Sustenance Services: Providing on-site ongoing support and improvements.
? Professional Services: Implementation service that is provided to the client on behalf of the OEM to manage and optimize security measures, in deployment and implementation ? Managed Security Services: Comprehensive monitoring and support for multiple cyber security solutions & consultation services to end-customer ? Annual Maintenance Services: Ensuring continuous protection and system efficiency.
? Implementation Services: Deploying robust cybersecurity solutions in a phased manner
We operate from our offices situated at Andheri and Thane in Mumbai and at Hyderabad. Our experience over the years has helped us evolve our in-house training centre with a focus on creating fresh talent and internal talent augmentation for continuous improvement and growth. Our in-house training initiative helps us in on-boarding fresh talent along with tailored learning, skill development, retention and engagement, consistency and cost efficiency. With strategic locations in Mumbai and Hyderabad we are well-positioned to provide our clients with timely and efficient cybersecurity services, ensuring their operations are secured and resilient against evolving cyber threats.
Our Promoter and Managing Director, Mr. Venu Gopal Peruri is who is a Bachelor of Science with overall work experience of above 25 years in the IT industry which has been instrumental in the growth of our business. Recently in 2024, our promoter has been awarded Business Leader of the Year - Male - Cybersecurity at the MSME & Startup Innovation Summit - 4th Edition. We have received the below mentioned prestigious awards in the past that bear testimony of our commitment to our vendors and customers and our ability to successfully serve and meet their requirements.
Key Performance Indicators of our Company
( in Lakhs except percentages and ratios)
| Key Financial Performance | FY 2024-25 | FY 2023-24 | FY 2022-23 |
| Revenue from operations(1) | 21,882.35 | 15,213.32 | 10,841.23 |
| EBITDA(2) | 2,224.37 | 1,568.53 | 920.04 |
| EBITDA Margin(3) | 10.17% | 10.31% | 8.49% |
| PAT(4) | 1,450.14 | 1,050.78 | 654.32 |
| PAT Margin(5) | 6.63% | 6.91% | 6.04% |
| Net Worth(6) | 4,455.07 | 3,004.92 | 1,954.14 |
| RoNW(%)(7) | 32.55% | 34.97% | 33.48% |
| RoCE (%)(8) | 37.81% | 48.43% | 33.39% |
Notes:
(1) ‘Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements (2) ‘EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income (3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4) ‘PAT is calculated as Profit before tax Tax Expenses.
(5)
‘PAT Margin is as PAT for the year divided by revenue from operations.(6)
‘Net worth means Equity share capital + Reserves and surplus (including, Securities Premium, General Reserve and surplus in statement of profit and loss).(7)
‘Return on Net Worth is ratio of Profit after Tax and Net Worth.(8)
‘Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}& Deferred Tax Liability.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of "Statement of Significant Accounting Policies", please refer to Annexure IV of Restated Financial Statements beginning on page 181 of this Red Herring Prospectus.
Factors Affecting our Results of Operations
1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;
2. Our ability to successfully implement our strategy, achieve growth and expansion, and adapt to technological changes;
3. Inability to promptly identify and respond to changing customer preferences or evolving trends;
4. Pricing pressure due to intense competition in the market for IT Services;
5. Any change in government policies resulting in increases in taxes payable by us;
6. Our ability to retain our key managements persons and other employees;
7. Changes in laws and regulations that apply to the industries in which we operate;
8. Our ability to protect our intellectual property rights and not infringing intellectual property rights of other parties;
9. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; 10. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;
11. Inability to successfully obtain registrations in a timely manner or at all;
12. Occurrence of Environmental Problems & Uninsured Losses;
13. Regulatory, legislative or self-regulatory developments regarding data protection;
14. Conflicts of interest with affiliated companies, the promoter group and other related parties; and 15. The performance of the financial markets in India and globally.
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023.
( in lakhs)
| Particulars | 31-03-2025 | % of Total Income | 31-03-2024 | % of Total Income | 31-03-2023 | % of Total Income |
| Total Income: | ||||||
| Revenue From Operation | 21,882.35 | 99.46% | 15,213.32 | 99.40% | 10,841.23 | 98.97% |
| Other Income | 119.43 | 0.54% | 91.34 | 0.60% | 113.1 | 1.03% |
| Total Income | 22,001.78 | 100.00% | 15,304.66 | 100.00% | 10,954.33 | 100.00% |
| Expenditure | ||||||
| Purchases of Stock in Trade | 17,205.06 | 78.20% | 11,605.24 | 75.83% | 7,418.58 | 67.72% |
| Changes in inventories of Stock in trade | -312.67 | -1.42% | 164.01 | 1.07% | 1,356.44 | 12.38% |
| Employee Benefit Expenses | 1,818.91 | 8.27% | 1,004.18 | 6.56% | 620.48 | 5.66% |
| Finance Cost | 87.13 | 0.40% | 132.98 | 0.87% | 57.61 | 0.53% |
| Depreciation and Amortisation Expenses | 226.65 | 1.03% | 153.66 | 1.00% | 114.6 | 1.05% |
| Other Expenses | 706.21 | 3.21% | 841.57 | 5.50% | 509.14 | 4.65% |
| Total Expenditure | 19,731.28 | 89.68% | 13,901.64 | 90.83% | 10,076.85 | 91.99% |
| Profit/(Loss) Before Exceptional & extraordinary items & Tax | 2,270.50 | 10.32% | 1,403.02 | 9.17% | 877.49 | 8.01% |
| Extra-Ordinary Item | 229.59 | 1.04% | - | 0.00% | - | 0.00% |
| Profit/(Loss) Before Tax | 2,040.91 | 9.28% | 1,403.02 | 9.17% | 877.49 | 8.01% |
| Tax Expense: | ||||||
| Tax Expense for Current Year | 602.70 | 2.74% | 361.18 | 2.36% | 219.53 | 2.00% |
| Deferred Tax | -11.94 | -0.05% | -8.95 | -0.06% | 3.64 | 0.03% |
| Net Current Tax Expenses | 590.76 | 2.69% | 352.24 | 2.30% | 223.17 | 2.04% |
| Profit/(Loss) for the Year | 1,450.14 | 6.59% | 1,050.78 | 6.87% | 654.32 | 5.97% |
Revenue from operations:
Revenue from operations mainly consists of revenue from sale of products and sale of services.
Other Incomes
Other income comprises of Interest Income, Rent Income, Forfeiture of Balances, Sundry Balances Written off, Interest on Income Tax Refund, Dividend Income, Long Term Capital Gain on sale of Mutual Fund/Shares, Gain on Buyback of Equity Share, Miscellaneous Income, Interest on delayed payment by customer, Short term Capital Gain on Shares.
Total Expenses:
Total expenses consist of Purchases of Stock in Trade, Change in inventories of Stock in trade, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.
Purchase of stock in trade
Purchase of stock in trade primarily comprises of Purchases of goods.
Change in inventories of stock in trade
Change in inventories of stock in trade comprises of increase/ (decrease) in inventory of software and license.
Employee benefits expense:
Employee benefits expense primarily comprises of Salary and Wages and Contribution to Provident Fund and Other Fund. Salary and Wages which comprises of Director Remuneration, Employee salary expenses, Staff welfare expenses. Contribution to Provident Fund and Other Fund which comprises of ESIC, Provident Fund, Maharashtra Labour Welfare Fund and Gratuity.
Finance Costs:
Our Finance cost includes Interest expenses and Other finance cost.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses includes depreciation on Computers, Furnitures & Fixtures, Office Premises, Office Equipment, Vehicles and Server.
Other Expenses:
Other Expenses comprises of Annual Meet Expenses, Audit Fees, Business Promotion Expenses, Commission Charges, Insurance Charges, Professional Fees, Outsourcing expenses, Foreign Exchange Loss, Corporate Social Responsibility Expenses, Rent & Taxes, Travelling Expenses, AMC exp., Bad Debts, Bank Charges, Brokerage charges, Computer Expenses, Donation, Electricity Expenses, Interest on Late payment of TDS, Internet Charges, Membership Fees, Office Expenses, Repair and Maintenance, Short Term Capital Loss on shares, Society Maintenance Charges, Telephone charges and Miscellaneous Expenses which includes Courier, Freight charges, GST charges, Late payment charges, General expenses, Petrol expenses, Depository admission Charges, Printing & Stationery, Prior period charges, Recruitment Agency Fees, ROC expenses, ROC expenses for increase in share capital, Loss on discard of assets, Stam duty charges on customer/vendor agreement, tender expenses, Transportation charges, VAT appeal fee, Director sitting fees, Roundoff etc.
FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024
Total Income:
The Total Income increased from FY 24 to FY 25, driven by an improvement in Revenue from Operations and Other Income. Revenue from Operations grew by 43.84%, rising from 15,213.32 lakhs in FY 24 to Rs. 21,882.35 lakhs in FY 25 along with Other Income which grew by 30.75%, increasing from 91.34 lakhs in FY 24 to 119.43 lakhs in FY 25. This overall growth reflects the companys operational performance during the year.
Revenue from Operations
During the financial year 2024-25, the net revenue from operations of the Company increased significantly by 43.84%, rising from 15,213.32 lakhs in FY 2023-24 to 21,882.35 lakhs in FY 2024-25. This growth was primarily driven by a 37.94% increase in the sale of products, which rose from 13,288.52 lakhs in FY 2023-24 to 18,329.56 lakhs in FY 2024-25. Additionally, the sale of services also saw robust growth of 84.58%, increasing from 1,924.80 lakhs in FY 2023-24 to 3,552.79 lakhs in FY 2024-25.
Other Income:
During the financial year 2024-25, the other income of the Company increased by 30.75%, from 91.34 lakhs in FY 2023-24 to 119.43 lakhs in FY 2024-25. This increase was primarily due to a significant rise in Interest Income, which increased by 87.35% from 28.46 lakhs in FY 2023-24 to 53.33 lakhs in FY 2024-25. Other contributors to the increase included Rent income of 15.52 lakhs in FY 2024-25, Interest on Income Tax Refund of 11.16 lakhs in FY 2024-25 and Interest on delayed payment by customer of 6.71 lakhs in FY 2024-25 which increased by 100.00% from nil in FY 2023-24. However, the decline was partially offset by a 63.05% decrease in Dividend Income which fell from 1.17 lakhs in FY 2023-24 to 0.43 lakhs in FY 2024-25, decrease by 47.56% in Long term capital gain on sale of Mutual fund/shares which fell from 61.15 lakhs in FY 2023-24 to 32.07 lakhs in FY 2024-25 and decrease by 53.98% in Miscellaneous Income, which fell from 0.46 lakhs in FY 2023-24 to 0.21 lakhs in FY 2024-25.
Total Expenses
The total expense for the financial year 2024-25 increases to 19,731.28 Lakhs from 13,901.64 lakhs in the Financial Year 2023-24 representing an increase of 41.93%. Such increase was due to increases in the volume of business operations of the Company.
Purchases of Stock in Trade
The Purchase of stock in trade for the financial year 2024-25 increases to 17,205.06 lakhs from 11,605.24 lakhs in the Financial Year 2023-24 representing an increase of 48.25%. Such increase was due to increases in the volume of business operations.
Change in inventories of stock in trade
Our Change in inventories of stock in trade comprises of increase/(decrease) in inventory of software and license used in business operations. The closing inventories of stock in trade 2024-25 was 466.61 lakhs as compared to 153.94 lakhs in the Financial Year 2023-24.
Employee benefits expense:
During the financial year 2024-25, the total employee benefits expenses of the Company increased significantly by 81.13%, from 1,004.18 lakhs in FY 2023-24 to 1,818.91 lakhs in FY 2024-25. This increase was primarily driven by a 92.38% rise in Employee Salary Expenses, which grew from 795.53 lakhs in FY 2023-24 to 1,530.41 lakhs in FY 2024-25. Additionally, Director Remuneration rose by 19.65%, from 150.00 lakhs in FY 2023-24 to 179.48 lakhs in FY 2024-25. Staff Welfare Expenses also saw a marginal increase of 5.53%, from 14.95 lakhs in FY 2023-24 to 15.78 lakhs in FY 2024-25. Under Contributions to Provident and Other Funds, Maharashtra Labour Welfare Fund, Provident Fund & Gratuity expenses increased sharply by 208.54%, 124.56% & 110.96%, rising from 0.07 lakhs, 13.50 lakhs & 29.33 lakhs in FY 2023-24 to 0.20 lakhs, 30.31 lakhs & 61.87 lakhs in FY 2024-25. ESIC grew by 6.80%, from 0.82 lakhs in FY 2023-24 to 0.87 lakhs in FY 2024-25.
Finance Costs:
During the financial year 2024-25, the total finance costs of the Company decreased significantly by 34.48%, from 132.98 lakhs in FY 2023-24 to 87.13 lakhs in FY 2024-25. This fall was primarily driven by a substantial decrease of 26.86% in Interest on Working Capital Loan, which fell from 97.48 lakhs in FY 2023-24 to 71.30 lakhs in FY 2024-25 along with decrease in Interest on term loan by 13.32% from 5.71 lakhs in FY 2023-24 to 4.95 lakhs in FY 2024-25. Additionally, Other Borrowing Costs decreased by 66.08%, from 29.78 lakhs in FY 2023-24 to 10.10 lakhs in FY 2024-25.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2024-25 stood at 226.65 Lakhs as against 153.66 Lakhs during the financial year 2023-24. The increase in depreciation was around 47.50% which was majorly due to addition in Property, Plant and equipment during the year.
Other Expenses:
Our Company has incurred 706.21 Lakhs during the Financial Year 2024-25 as against 841.57 Lakhs during the financial year 2023-24, reflecting a decrease of 16.08%. This decrease was primarily due to the following factors: (i) Computer expenses decreased by 81.05%, from 4.52 lakhs in FY 2023-24 to 0.86 lakhs in FY 2024-25; (ii) Professional Fees saw a drop of 71.46%, from 305.83 lakhs in FY 2023-24 to 87.28 lakhs in FY 2024-25; (iii) Membership fees decreased by 70.49%, from 13.73 lakhs in FY 2023-24 to 4.05 lakhs in FY 2024-25; (iv) Bad debts fell by 62.24%, from 20.50 lakhs in FY 2023-24 to 7.74 lakhs in FY 2024-25; (v) Commission charges decreased by 43.10%, from 107.56 lakhs in FY 2023-24 to 61.20 lakhs in FY 2024-25; (vi) Business Promotion Expenses fell by 20.91%, from 143.97 lakhs in FY 2023-24 to 113.87 lakhs in FY 2024-25; (vii) Internet Charges decreased by 3.92%, from 12.86 lakhs in FY 2023-24 to 12.36 lakhs in FY 2024-25; (viii) Short term capital loss of shares decreased from 0.83 lakhs in FY 2023-24 to Nil in FY 2024-25 and (ix) Brokerage charges decreased from 0.20 lakhs in FY 2023-24 to Nil in FY 2024-25.
Extra-Ordinary Item
During FY 2024-25, Company has written off one Inter Corporate loan balance of Rs 229.59 Lakhs which is aged more than 6 years, therefore being non-recurring nature and not an ordinary activity of the Company.
Restated Profit before tax:
Net profit before tax for the financial year 2024-25 increased to 2,040.91 Lakhs as compared to profit of 1,403.02 Lakhs in the financial year 2023-24. The increase of 45.47% was majorly due to factors as mentioned above.
Restated profit after tax:
Net profit after tax for the financial year 2024-25 increased to 1,450.14 Lakhs as compared to profit of 1050.78 Lakhs in the financial year 2023-24. The increase of 38.01% was due to factors increase in PAT margin.
FINANCIAL YEAR 2024 COMPARED TO FINANCIAL YEAR 2023
Total Income:
The Total Income increased from FY 23 to FY 24, driven by an improvement in Revenue from Operations. Revenue from Operations grew by 40.33%, rising from Rs. 10,841.23 lakhs in FY 23 to Rs. 15,213.32 lakhs in FY 24. However, Other Income showed a slight decline of 19.24%, decreasing from Rs. 113.10 lakhs in FY 23 to Rs. 91.34 lakhs in FY 24. This overall growth reflects the companys operational performance during the year.
Revenue from Operations
During the financial year 2023-24, the net revenue from operations of the Company increased significantly by 40.33%, rising from Rs. 10,841.23 lakhs in FY 2022-23 to Rs. 15,213.32 lakhs in FY 2023-24. This growth was primarily driven by a 39.73% increase in the sale of products, which rose from Rs. 9,510.41 lakhs in FY 2022-23 to Rs. 13,288.52 lakhs in FY 2023-24. Additionally, the sale of services also saw robust growth of 44.63%, increasing from Rs. 1,330.82 lakhs in FY 2022-23 to Rs. 1,924.80 lakhs in FY 2023-24.
Other Income:
During the financial year 2023-24, the other income of the Company decreased by 19.24%, from Rs. 113.10 lakhs in FY 2022-23 to Rs. 91.34 lakhs in FY 2023-24. This decline was primarily due to a significant drop in Interest Income, which fell by 65.10% from Rs. 81.56 lakhs in FY 2022-23 to Rs. 28.46 lakhs in FY 2023-24. Other contributors to the decrease included Sundry Balances Written Off Rs. 5.89 lakhs in FY 2022-23, Interest on Income Tax Refund Rs. 6.34 lakhs in FY 2022-23, Gain on buyback of Equity shares Rs. 0.58 lakhs and Short-Term Capital Gains on Shares Rs. 17.78 lakhs in FY 2022-23 which decreased by 100.00% in FY 2023-24. However, the decline was partially offset by a 22.79% increase in Dividend Income, which rose from Rs. 0.95 lakhs in FY 2022-23 to Rs. 1.17 lakhs in FY 2023-24.
Total Expenses
The total expense for the financial year 2023-24 increases to Rs. 13,901.64 Lakhs from Rs. 10,076.85 lakhs in the Financial Year 2022-23 representing a increase of 37.96%. Such increase was due to increases in the volume of business operations of the Company.
Purchases of Stock in Trade
The Purchase of stock in trade for the financial year 2023-24 increases to Rs. 11,605.24 lakhs from Rs. 7,418.58 lakhs in the Financial Year 2022-23 representing a increase of 56.43%. Such increase was due to increases in the volume of business operations.
Change in inventories of stock in trade
Our Change in inventories of stock in trade comprises of increase/(decrease) in inventory of software and license used in business operations. The closing inventories of stock in trade 2023-24 was Rs. 153.94 lakhs as compared to Rs. 317.95 lakhs in the Financial Year 2022-23.
Employee benefits expense:
During the financial year 2023-24, the total employee benefits expenses of the Company increased significantly by 61.84%, from Rs. 620.48 lakhs in FY 2022-23 to Rs. 1,004.18 lakhs in FY 2023-24. This increase was primarily driven by a 65.62% rise in Employee Salary Expenses, which grew from Rs. 480.34 lakhs in FY 2022-23 to Rs. 795.53 lakhs in FY 2023-24. Additionally, Director Remuneration rose by 41.51%, from Rs. 106.00 lakhs in FY 2022-23 to Rs. 150.00 lakhs in FY 2023-24. Staff Welfare Expenses also saw a marginal increase of 6.63%, from Rs. 14.02 lakhs in FY 2022-23 to Rs. 14.95 lakhs in FY 2023-24. Under Contributions to Provident and Other Funds, Gratuity expenses increased sharply by 252.49%, rising from Rs. 8.32 lakhs in FY 2022-23 to Rs. 29.33 lakhs in FY 2023-24. Provident Fund contributions grew by 46.03%, from Rs. 9.24 lakhs in FY 2022-23 to Rs. 13.50 lakhs in FY 2023-24.
Finance Costs:
During the financial year 2023-24, the total finance costs of the Company increased significantly by 130.82%, from Rs. 57.61 lakhs in FY 2022-23 to Rs. 132.98 lakhs in FY 2023-24. This sharp rise was primarily driven by a substantial increase of 183.77% in Interest on Working Capital Loan, which rose from Rs. 34.35 lakhs in FY 2022-23 to Rs. 97.48 lakhs in FY 2023-24. Additionally, Other Borrowing Costs increased by 79.80%, from Rs. 16.56 lakhs in FY 2022-23 to Rs. 29.78 lakhs in FY 2023-24. The overall finance costs were significantly higher due to the increased working capital requirements and other borrowing-related expenses.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2023-24 stood at Rs. 153.66 Lakhs as against Rs. 114.60 Lakhs during the financial year 2022-23. The increase in depreciation was around 34.08% which was majorly due to addition in Property, Plant and equipment.
Other Expenses:
Our Company has incurred Rs. 841.57 Lakhs during the Financial Year 2023-24 on selling and administrative expenses, as against Rs. 509.14 Lakhs during the financial year 2022-23, reflecting an increase of 65.29%. This increase was primarily due to the following factors:
(i) Commission Charges increased by 206.19%, from Rs. 35.13 lakhs in FY 2022-23 to Rs. 107.56 lakhs in FY 2023-24;
(ii) Professional Fees saw a significant rise of 190.67%, from Rs. 105.22 lakhs in FY 2022-23 to Rs. 305.83 lakhs in FY 2023-24;
(iii) Business Promotion Expenses increased by 73.93%, from Rs. 82.78 lakhs in FY 2022-23 to Rs. 143.97 lakhs in FY 2023-24;
(iv) Travelling Expenses rose by 87.35%, from Rs. 40.65 lakhs in FY 2022-23 to Rs. 76.16 lakhs in FY 2023-24;
(v) Rent & Taxes increased by 159.20%, from Rs. 5.16 lakhs in FY 2022-23 to Rs. 13.38 lakhs in FY 2023-24;
(vii) Corporate Social Responsibility (CSR) Expenses rose by 83.82%, from Rs. 5.50 lakhs in FY 2022-23 to Rs. 10.11 lakhs in FY 2023-24;
(viii) Insurance Charges grew by 52.64%, from Rs. 5.48 lakhs in FY 2022-23 to Rs. 8.36 lakhs in FY 2023-24;
(ix) Electricity Expenses increased by 14.84%, from Rs. 5.85 lakhs in FY 2022-23 to Rs. 6.71 lakhs in FY 2023-24;
(x) Interest on Late Payment of TDS surged by 4044.09%, from Rs. 0.41 lakhs in FY 2022-23 to Rs. 17.00 lakhs in FY 2023-24;
(xi) Bad Debts increased by 454.68%, from Rs. 3.70 lakhs in FY 2022-23 to Rs. 20.50 lakhs in FY 2023-24;
(xii) Membership Fees rose by 5366.67%, from Rs. 0.25 lakhs in FY 2022-23 to Rs. 13.73 lakhs in FY 2023-24;
(xiii) Audit fees increased by 46.15%, from Rs. 3.25 lakhs in FY 2022-23 to Rs. 4.75 lakhs in FY 2023-24;
(xiv) Bank charges increased by 126.43%, from Rs. 0.07 lakhs in FY 2022-23 to Rs. 0.15 lakhs in FY 2023-24;
(xv) Donation increased by 21.10%, from Rs. 5.45 lakhs in FY 2022-23 to Rs. 6.60 lakhs in FY 2023-24;
(xvi) Internet charges increased by 25.30%, from Rs. 10.26 lakhs in FY 2022-23 to Rs. 12.86 lakhs in FY 2023-24;
(xvii) Telephone charges increased by 94.88%, from Rs. 3.74 lakhs in FY 2022-23 to Rs. 7.28 lakhs in FY 2023-24;
(xviii) Society maintenance charges increased by 9.62%, from Rs. 7.67 lakhs in FY 2022-23 to Rs. 8.40 lakhs in FY 2023-24 and (xix) Office expenses increased by 47.51%, from Rs. 10.67 lakhs in FY 2022-23 to Rs. 15.74 lakhs in FY 2023-24.
Restated Profit before tax:
Net profit before tax for the financial year 2023-24 increased to Rs. 1,403.02 Lakhs as compared to profit of Rs. 877.49 Lakhs in the financial year 2022-23. The increase of 59.89% was majorly due to factors as mentioned above.
Restated profit after tax:
Net profit after tax for the financial year 2023-24 increased to Rs. 1,050.78 Lakhs as compared to profit of Rs. 654.32 Lakhs in the financial year 2022-23. The increase of 60.59% was due to factors increase in PAT margin. The PAT margin for the financial year 2022-23 was 6.04% and the same has increased to 6.91% in the financial year 2023-24.
Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:
An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:
1. Unusual or infrequent events or transactions
There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 28 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues
Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 28, 121 and 222 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
5. Segment Reporting
For details on segment reporting please refer "Annexure IV" forming part of "Financial Information of the Company" on page 181 of the Red Herring Prospectus
6. Status of any publicly announced New Products or Business Segment
Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.
7. Seasonality of business
A significant proportion of our revenue from operations are made in the first quarter of the fiscal year, i.e., the April to June quarter. To that extent, our business is subject to seasonality of revenue. The table below provides a breakdown of the proportion of revenue during each of the Fiscal 2025, Fiscal 2024 and Fiscal 2023.
( in lakhs)
| Qtr wise - Standalone Net Sales | Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue |
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Quarter 1 - Apr - June | 12,761.54 | 58.32% | 9,047.56 | 59.47% | 6,560.66 | 60.52% |
| Quarter 2 - July - Sept | 5,638.47 | 25.77% | 1,142.83 | 7.51% | 1,420.05 | 13.10% |
| Quarter 3 - Oct - Dec | 1,001.85 | 4.58% | 2,439.07 | 16.03% | 812.29 | 7.49% |
| Quarter 4 - Jan - Mar | 2,480.49 | 11.34% | 2,583.86 | 16.98% | 2,048.24 | 18.89% |
| Total | 21,882.35 | 100.00% | 15,213.32 | 100.00% | 10,841.23 | 100.00% |
8. Dependence on single or few customers
During the Fiscal 2025, Fiscal 2024 and Fiscal 2023, our top 10 customers contributed approximately 84.65%, 87.96% and 92.88% of our revenue from operations respectively. Moreover, our revenue from our top customer being one of the leading banks of India constituted 62.76%, 58.51% and 63.50% of our revenue from operations for the financial year ended at March 31, 2025, March 31, 2024 and March 31, 2023 respectively.
9. Competitive conditions
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 103 and 121 respectively of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e., March 31, 2025
After the date of last Balance sheet i.e. March 31, 2025, the following material events have occurred:
1. Our company has approved the audited financial statements for the financial year ended March 31, 2025 in the Board meeting dated June 13, 2025.
2. Our Company has approved the Restated Financial Statements for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 in the Board meeting dated June 16, 2025.
3. Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated June 27, 2025.
4. Company has availed an enhanced bill discounting facilities of 1,200 lakhs as well as enhanced bank guarantees for 300 lakhs from ICICI bank.
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