MIC Electronics Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. Introduction

MIC Electronics Limited stands as a key player in the Indian market, specializing in Railway Signalling Systems and LED Displays. Our consistent presence in these sectors is built on innovation, dependability, and a customer-first approach. This Management Discussion and Analysis (MD&A) report offers insights into our performance, significant developments, industry challenges, and our forward-looking strategies.

2. Industry Overview

Indias Railway Passenger Information Systems, LED Displays, and EV Charger segments have witnessed robust growth, fueled by infrastructure investments, digitization, and the rising demand for energy-efficient technologies. MIC Electronics continues to leverage its technological edge and domain experience to capitalize on these developments.

Railway Passenger Information Systems (PIS)

• Indian Railways operates one of the worlds largest rail networks, with over 8,000 stations and 12,000 trains.

• Rising passenger volumes have amplified the demand for real-time and efficient information systems.

• Indias PIS market is valued at 500 crores, expanding at a CAGR of 15%.

• Key participants include Indian Railways in-house teams, Siemens, and MIC Electronics.

LED Display Boards

• Government programs like Smart Cities and Digital India are major growth drivers.

• The LED display market is worth approximately 2,000 crores, growing at a CAGR of 20%.

• Applications include transportation hubs, public messaging, advertising, and smart city solutions.

• Competitors range from Indian companies like MIC Electronics to global giants like Samsung and LG.

EV Chargers

• Indias EV ecosystem is maturing, driven by subsidies and environmental mandates.

• The EV charger market is estimated at 300 crores, growing at a CAGR of 30%.

• Usage spans 2/3/4-wheeler segments, public and residential infrastructure, and government fleets.

• Key players include Tata Power, ABB, Siemens, and MIC Electronics among others.

Trends and Opportunities

• Digital transformation of Indian Railways including IoT and automation.

• Increased emphasis on green and sustainable technologies.

• Government-led initiatives like Make in India creating new business avenues.

• Opportunities abound for localized innovation in PIS, LED displays, and EV chargers.

Challenges

• Competition from both local and international players.

• Lack of standards and compatibility in PIS and EV charging systems.

• Heavy reliance on policy-driven initiatives and public projects.

3. Product Portfolio (with RDSO/RCF approval & various stages of approvals)

MIC Electronics product portfolio includes a wide array of Railway Passenger Information Systems, LED Display Boards, Emergency Light Unit, Passenger Announcement & passenger Information System (PAPIS), Remote monitoring processing unit etc., many of which have received or are in various stages of obtaining RDSO/RCF approvals. These products are designed to meet Indian Railways stringent quality standards and have been deployed in multiple railway zones and urban infrastructure projects.

4. Financial Performance

In the FY 2024-25, the Company recorded a total revenue of Rs.6294.68 Lakhs as compared to the previous years total revenue of Rs.5656.61 Lakhs. During this financial year the Company has earned a net profit of Rs.978.99 Lakhs as against the previous years net profit of Rs.6184.23 Lakhs (including a deferred tax asset of 4,410.54 lakhs).

5. Strategic Initiatives

Key initiatives undertaken during the year include:

• Innovation: Sustained R&D to develop cutting-edge LED displays and signaling technologies tailored to customer needs.

• Expansion: Targeting domestic and international markets to widen our revenue base and minimize dependence on a single segment.

• Operational Excellence: Adoption of lean practices and supply chain optimization to drive cost efficiency and scalability.

6. Challenges and Mitigation Strategies

Despite our progress, we encountered several operational and external challenges. These include:

• Intense Competition

• Technological Disruption

• Government Policy Changes

• Fluctuating Raw Material Prices

• Delays in Government Project Executions

• Environmental Compliance

• Talent Management

• Cybersecurity

• Quality Control

• Export Market Volatility

• Innovation Needs

• Supply Chain Disruptions

Mitigation measures taken include:

• Developing niche products and enhancing R&D.

• Proactively engaging with policymakers and industry groups.

• Diversifying sourcing and inventory buffers.

• Driving sustainability through green practices.

• Focusing on workforce development and retention.

• Investing in cybersecurity infrastructure and audits.

• Ensuring rigorous quality management systems.

• Expanding presence across global and domestic markets.

7. Future Outlook

MIC Electronics is strategically positioned to seize emerging opportunities in the domains of Railway Passenger Information Systems, LED Displays, and Railway related EPC contracts. Moving forward, we plan to focus on:

• Market Expansion: Targeting new geographies and sectors for business growth.

• Technological Advancements: Developing IoT-integrated and smart solutions to align with evolving digital infrastructure.

• Sustainability: Integrating eco-friendly practices into manufacturing and product design.

8. Internal Financial Control Systems and their Adequacy

MIC Electronics has put in place robust internal financial control systems covering all key operational areas, including equipment procurement, finance, marketing, human resources, and administration. These systems are continuously monitored and reviewed by the Audit Committee to ensure operational integrity, risk mitigation, and regulatory compliance.

9. Financial Review

The highlights of financial and operational performance are presented below:

			(in Rs. Lakhs)
Particulars	2024-25	2023-24	2022-23
Total Income	6294.68	5656.61	779.75
Total Expenditure	4992.03	4545.24	765.19
Profit before Tax	1302.66	1773.34	14.56
Deferred Tax (Asset)	(323.66)	4410.54	-
Profit after Tax	978.99	6183.88	14.56
Other Comprehensive Income	(13.69)	0.35	0.40
Transfer to General Reserve	-	-	-
Profit available for Appropriation	965.30	6184.23	-
Provision for Proposed Dividend	-	-	-
Provision for Corporate Tax	-	-	-

10. Conclusion

MIC Electronics continues its journey with a strong commitment to value creation through innovation, operational efficiency, and sustainable growth. With a clear strategic direction and robust leadership, the Company is well-equipped to scale new heights in Railway Signaling and LED Display solutions. This MD&A outlines our key achievements, strategic focus areas, and readiness for future challenges and oppo rtunities.

	By order of the Board
	For MIC Electronics Limited
	Kaushik Yalamanchili	Sivanand Swamy Mitikiri
Date: September 01, 2025	Managing Director	Wholetime Director
Place: Hyderabad	DIN:07334243	DIN: 10166966