MIRC Electronics Ltd Management Discussions

The management of the Company is pleased to present this Management Discussion and Analysis Report in compliance with Regulation 34(2)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time to time).

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias economy demonstrated exceptional resilience in FY 2024-25, with GDP growth of 7.0%, above most major economies, driven by robust services activity, sustained private consumption, and a pickup in manufacturing and infrastructure spending. Inflation moderated to 4.8%, bolstering real incomes and consumption. Looking ahead to FY 2025-26, the World Bank projects growth of 6.3%, reflecting global headwinds·slowing external demand and tighter financial conditions·offset by continued domestic momentum and policy support. The Indian consumer durables and electronics industry remains one of the fastest-growing globally. In FY 2024-25, sector revenues are estimated at ?2.2 lakh crore, up nearly 12% year-on-year, surpassing pre-pandemic levels. This surge was led by strong replacement demand, rapid urbanization, and rising rural penetration, as electrification and last-mile distribution improved across Tier II-V towns. In FY 2024-25, EMS revenues touched USD 62 billion, up ~28% from FY 2023-24, as global OEMs diversify away from China ("China Plus One") and leverage Indias improving component ecosystem (PCBs, connectors, plastic mouldings).

The"Make in India"initiative and Production-Linked Incentive (PLI) schemes continue to be pivotal. For white goods (ACs, LED lighting, washing machines), the PLI scheme (FY 202122 to FY 2028-29) has approved 64 applicants, aimed at raising domestic value-addition from ~20% to ~75%-80%. PLI incentives for white goods, catalysing localisation of key components (compressors, PCBs) and creating direct jobs.

The domestic market is expected to sustain 10-12% revenue growth in FY 2025-26. Recovery in rural incomes· supported by government transfer schemes and robust kharif sowing·and continued urban replacement cycles should underpin demand. Premium and smart-connected appliances are projected to outpace overall growth, with smart TV and inverter-AC segments growing at 18-20% and 25-28%, respectively. By FY 2030, Indias consumer durables market is projected to exceed ?5 lakh crore, at an 11-12% CAGR from FY 2024-25, driven by rising per-capita incomes and continued rural electrification·propelling TV, AC and washing machine ownership penetrations to ~85%, 25%, and 45% of households, respectively. Government initiatives will broaden to include green-technology incentives· boosting energy-efficient appliance adoption. All the above factors position MIRC Electronics Ltd., under the ONIDA brand, to leverage scale-economies, localisation advantages, and smart-appliance innovation for sustained value creation through FY 2030.

The three main area of consumer appliance served by the Company are:

LED TVs:

Onida QLED Series: A Bold Leap into the Future of Television

While Onidas Google TV Nexg Series was already making waves in the smart TV segment with its seamless user interface and advanced features, the brand raised the bar even higher in 2024 with the launch of its revolutionary QLED Series. With this bold move, Onida reaffirmed its commitment to innovation, design excellence, and customer-centric technology · once again disrupting the Indian television market.

The Onida QLED TV isnt just another addition to their product line-up · its a technological milestone. Built with Quantum Dot Display Technology, this series delivers unparalleled color accuracy, deeper blacks, vivid highlights, and remarkable brightness levels, all tailored to provide an ultra-immersive visual experience. Whether youre watching fast-paced sports, cinematic thrillers, or nature documentaries, every scene is rendered with breath-taking clarity and vibrancy.

At the heart of the experience is 4K Ultra HD resolution, ensuring every frame bursts with lifelike detail. Paired with Dolby Vision™ for superior contrast and Dolby Atmos? for multidimensional sound, the Onida QLED TV transforms any room into a personal home theatre.

Powered by Google TV, users can enjoy a seamless, content- first experience that brings together movies, shows, and live TV from across your favourite apps and subscriptions · all in one place. Voice-enabled search via Google Assistant makes control effortless, while built-in Chromecast, Bluetooth, and high-speed Wi-Fi ensure fast, flexible connectivity across all your devices.

Beyond its tech specs, the Onida QLED Series also stands out for its sleek, modern design, making it a perfect centrepiece for contemporary living spaces. The premium build quality reflects the brands legacy of durability and trust, cultivated over four decades in the Indian electronics market.

In a market flooded with options, Onida QLED is not just another smart TV · its a bold statement of quality, innovation, and trust. Perfect for the modern Indian household, it delivers high-end performance at a value- driven price point · reaffirming Onidas place as a pioneer in home entertainment.

AIR CONDITIONERS:

Onida Unveils New Range ofTropical Heavy-Duty Inverter Air Conditioners for Unmatched Cooling Performance.

Onida, a trusted name in innovative home appliances, has recently launched its latest range of Air Conditioners featuring Tropical Heavy-Duty Wi-Fi Digital Inverter technology. With this new line-up, Onida aims to redefine comfort, efficiency, and performance in home and commercial cooling solutions.

As a proudly Indian brand, Onida has always focused on delivering practical solutions tailored to the unique needs of Indian consumers. In response to the extreme heat and humidity across the country, especially in tropical regions, Onida has engineered this new series of ACs to ensure powerful, consistent cooling even in the harshest summer conditions.

This year also marks Onidas entry into the Smart Digital Inverter segment with the launch of its Smart Wi-Fi-enabled ACs. These air conditioners come equipped with a wide range of advanced features, including:

• 5-in-1 Convertible Cooling

• Artificial Intelligence (AI)-based performance optimization

• Ayurvedic Neem Filter for enhanced air purification

• Silent Cool technology for noiseless operation

• 4-Way Swing for uniform air distribution

• Deep Clean and Dual Drainage System for improved maintenance and durability

Further enhancing the offering, Onida has introduced its Multi Series ACs featuring the largest indoor unit in the segment·measuring 1100mm·to ensure maximum airflow and faster cooling.

Speaking on the launch, Mr. Vivek Saran, President & COO - Sales & Consumer Business, said:

"Keeping the challenging Indian summer conditions in mind, weve expanded our AC portfolio to cater specifically to tropical regions. Our new Tropical Heavy-Duty Inverter ACs combine high-performance cooling, energy efficiency, and long-term durability with cutting-edge smart features. With strong growth over the last two quarters, we are now targeting a 40% increase in AC sales turnover."

With this strategic expansion, Onida continues to strengthen its position in the Indian AC market·bringing reliable, high- performance cooling to millions of homes and businesses across the country.

WASHING MACHINES:

Onida Washing Machines: Smart, Efficient, and Built for Indian Homes

With decades of expertise in home appliances, Onida brings its legacy of innovation and trust to the forefront with a comprehensive range of Washing Machines designed for the modern Indian household. Whether its tackling tough stains, conserving water, or offering silent operation, Onidas washing machines are built to handle it all · with ease, efficiency, and intelligence. Last year Onida also introduced a unique heater model for a Germ Free Hygienic Wash.

A Range That Fits Every Need

From semi-automatic to fully automatic models, Onida offers a wide selection of washing machines catering to diverse preferences, family sizes, and budgets. Each model is thoughtfully engineered to ensure optimal performance, user-friendly operation, and long-lasting durability.

Key Features:

• Hydrologic Pulsator Technology - for deep cleaning and gentle fabric care

• Eco-Friendly Wash Cycles - that save water and energy

• Anti-Rust Body - durable and ideal for Indian climate conditions

• Air Dry & Turbo Dry Functions - for faster drying

• Smart Control Panel - intuitive interface with multiple wash programs

• Compact Designs - space-saving models for urban living spaces

Tailored for Indian Fabrics & Lifestyles

Understanding the challenges of washing in Indian homes · from heavy monsoons to dusty summers · Onida has

fine-tuned its washing machines to clean a wide range of fabrics with care and power. From delicate silks to rugged denim, Onida ensures a perfect wash every time.

Made in India, Made for India

As an Indian brand with a strong legacy, Onida continues to design products that meet the evolving needs of Indian consumers. Combining affordability, performance, and durability, Onida washing machines provide a perfect blend of traditional reliability and modern innovation.

2. OPPORTUNITIES AND THREATS

a) Expanding domestic market: India is now the worlds fastest-growing major consumer durables market and is expected to be the fourth-largest by FY2027. Rising household incomes and a young, aspirational population are driving demand for appliances.

b) Premiumisation and technology adoption:

Consumers are upgrading to feature-rich, energy- efficient products.

c) Supportive policies and distribution: Government initiatives (like Production Linked Incentives and Make-in-India programs) are strengthening local manufacturing and component sourcing

Threats

a) Competition and innovation pressure: The consumer electronics and appliances sector is intensely competitive. Both domestic and international players are expanding rapidly, often with large R&D budgets.

b) Regulatory and cost burdens: Regulatory standards (especially energy-efficiency norms) are becoming stricter. Compliance with environmental regulations (e.g. refrigerant phaseouts, electronic waste norms) adds additional compliance costs.

3. RISKS & CONCERNS

a) Volatility in commodity markets (steel, aluminum, plastics, electronic components) can impact margins. Sharp increases in input prices may not be fully recoverable through pricing.

b) A sustained economic slowdown, high interest rates or reduced consumer credit availability could dampen purchasing. we have seen that discretionary purchases can be deferred in tougher times.

4. PRODUCT-WISE PERFORMANCE DURING THE FINANCIAL YEAR 2024-25

(a) Air Conditioner: This segment has witnessed a growth of 55 percent.

(b) LED/Panel: This segment has witnessed a growth of 11 percent.

(c) Washing Machine: This segment has witnessed a degrowth of 22 percent.

5. OUTLOOK

We remain optimistic about the outlook for Onida in FY2024-25. We are well positioned to benefit from the industry trends. With strong brand recognition and a wide distribution network (modern retail, general trade and e-commerce), Onida can effectively reach the resurging middle-class consumer. We continue to invest in product innovation (smart features, energy efficiency, design) and marketing to align with shifting consumer preferences toward premium and connected products.

These policy tailwinds - along with a stable fiscal environment and infrastructure improvements - give us confidence that domestic production will be profitable and scalable. Given our experienced management, and long track record, we are confident in our ability to execute effectively.

In summary, the medium-term outlook is positive. The combination of robust economic growth, enduring consumer demand for quality products, expanding retail channels, and government support forms a strong backdrop for our business. We will continue to monitor market developments closely and remain agile, but overall we anticipate that our brand strength and operational agility will enable us to navigate challenges and capture the growth opportunities in FY25 and beyond.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a matured internal audit process for the Company as a whole covering the corporate office and the branches all over India. Agenda for the audit/ scope is finalized and approved by the Audit Committee. The audit is carried out by reputed audit firms across head office, plant and branches. The internal audit department of the Company coordinates with the internal auditors and auditees and ensures proper follow up for closure of audit concerns.

The Company has standardized SOPs in place in form of various manuals, policies and procedures for all critical and important activities as recommended by the management. Audit finding are placed in the audit committee and directions of the committee are followed to improve internal control and avoid recurrence of events.

There is an evolved risk management strategy with standard operating procedures placed before and approved by the Board of Directors of the Company and are legitimately followed by the Company for the reporting and compliance purposes.

There are certain policies adopted by the Company for maintaining internal control within the organization, which are as follows: -

a) Risk Management Policy

This policy sets out Companys risk, oversees management of material business risks and internal control. The purpose of this policy is to encourage an appropriate level of risk tolerance throughout the Company; establish procedures to analyze risks within agreed parameters across the Company; establish appropriate risk delegations and corresponding risk management framework across the Company and ensure the Company has a risk management framework that can noticeably respond the risk profile of the Company.

b) Whistle Blower Policy

This policy is formulated to provide opportunity to all employees to have access to the Management or the Chairman of the Audit Committee, in case they observe any unethical and improper practice or behaviour or wrongful conduct in the Company and to prohibit any person from taking adverse personal action against such employee.

c) Policy on Related Party Transactions

This policy is framed to ensure compliance of the applicable provisions of the Companies Act, 2013 and the rules made thereunder and SEBI (LODR) Regulation, 2015 as amended from time to time and intended to ensure the proper approval and reporting of transactions between the Company and related parties. Such transactions are appropriate only if they are in the best interest of the Company and the shareholders.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Following are the financial highlights of the Company for the year ended March 31,2025 on comparable basis: -

a. INCOME

The total income for the year ended March 31, 2025 was 757.42 crores as compared to 974.52 crores in the previous year, a decrease of 22.28 %.

b. COST OF SALES

The cost of sales for the year ended March 31,2025 was 599.68 crores as compared to 884.59 crores in the previous year. This cost was 80.31 % of the Revenue from operations in the current year as compared to 91.38 % in the previous year.

c. EMPLOYEE REMUNERATION AND BENEFITS

Employee cost for the year at 60.55 crores decreased by 2.21 % as compared to 61.92 crores in the previous year. The employee cost was 7.99 % of the total Income in the current year as compared to 6.35 % in the previous year.

d. OPERATING AND GENERAL EXPENSES

Operating and general expenses in current year increased to 78.32 crores from 67.19 crores in the previous year. As a percentage of total Income, the operating and general expenses for the year were at 10.34 % as compared to 6.89% in the previous year.

e. FINANCIAL EXPENSES

Financial expenses for the year was at 14.60 crores as compared to 15.05 crores in the previous year. The financial cost for the year is 1.93% of the total Income as compared to 1.54 % in the previous year.

f. DEPRECIATION

Depreciation charge for the year decreased to 6.57 crores as compared to 7.98 crores in the previous year.

g. PROFIT/ LOSS BEFORE TAX AND EXCEPTIONAL ITEMS

Loss before tax and exceptional items for FY 2024-25 is 2.30 Crores as compared to 62.21 Crores in FY 202324. Loss before tax and exceptional items was 0.30 % of the total Income as compared to 6.38% in the previous year.

h. EXECPTIONAL ITEMS Exceptional loss for the year was Nil

i. PROFIT/ LOSS BEFORETAX AND AFTER EXCEPTIONAL

ITEMS

Loss before tax and after exceptional items for FY 202425 is 2.30 Cr. as compared to a loss of 62.21 Cr. in FY 2023-24. Loss before tax and after exceptional items was 0.30% of the total Income in the current year as compared to a loss of 6.38% in the previous years.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

At MIRC, people remain at the core of everything we do. The Company believes that culture is a powerful catalyst to drive performance, optimise true potential, and help attract and retain talent. Empowering employees through continuous development remains a priority. We are committed to building our peoples functional, managerial, and leadership capabilities, ensuring they remain future-ready in an ever- evolving environment.

The Company is reimagining the employee experience by driving digital transformation across the employee lifecycle to simplify processes. Various HR processes including on-boarding, induction and product orientation were reengineered to enable faster alignment with organizational goals. Sales automation was a key initiative for the field workforce, aimed at creating transparency, driving value growth, ensuring process hygiene and providing real time data.

Fostering employee connection and cross-functional collaboration remained priority throughout the year. Several initiatives were implemented to strengthen interpersonal bonds, enhance team cohesion, and create a sense of belonging across the organization. Teams collaborated to strategize and align on goals to shape the roadmap for driving success and growth with a vision "Mission Possible". These efforts have contributed to a more connected, agile and engaged workforce.

To remain future-ready, the company will continue to focus on creating robust learning ecosystems, adopting data- driven people practices and advancing digital platforms to support employee success and organizational resilience.

Your Company has 460 employees on its payroll as on March 31, 2025.

9. MATERIAL FINANCIAL & COMMERCIAL TRANSACTIONS INVOLVING SENIOR MANAGEMENT

The Company has in place a Code of Corporate Governance which stipulates that senior management personnel shall make disclosures to the Board of Directors of the Company regarding any material financial and/or commercial transactions in which they are interested which may have a potential conflict with the interest of the Company.

Cautionary Statement

The statements made in this report describing the Companys projections, expectations and estimations may be forward looking within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectation of future events. The actual results may differ from those expressed or implied in this report due to the influence of external and internal factors beyond the control of the Company.

The Company assumes no responsibility in respect of forward looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events. Readers are cautioned not to place undue reliance on the forward looking statements.

For and on behalf of the Board of Directors
	Vijay Mansukhani
	Chairman of the Meeting and
Place : Mumbai	Managing Director
Date : May 20, 2025	(DIN: 01041809)