MRO-TEK Realty Ltd Management Discussions

The following Management Discussion and Analysis ("MD&A") should be read in conjunction with the financial statements and accompanying notes ("Financial Statements") of Umiya Buildcon Limited for financial year ended March 31, 2025.

? Segment wise or Product wise performance ? Risk and Concerns ? Internal Control Systems and their adequacy ? Discussion on operational performance ? Material Developments in Industrial Relations front.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

As the Board of Directors reported in the last AGM, the Company continued to infuse efforts on existing business segments with a focus on ensuring growth in each of the Segments.The emphasis has been on Technology innovation for development of new products, creating a greater market footprint and higher demand for our products, ensuring efficiency in operations and nurturing the talent pool in all Business Segments.

Real Estate

Products Solutions

SEGMENT : REAL ESTATE

The Board is pleased to report the shareholders that the property developed at Hebbal, Bengaluru is completely occupied and started generating lease rental revenue. A substantial portion of the building is let out to HDFC Bank Limited and Tata Group Company, prestigious and reliable tenants assuring the long-term reliable rentals.

During the year 2024-25, the approval for construction at Candolim, Goa is in final phase and likely to commence the construction during the year 2025-26. The revenue from operations from Real Estate business has been increased to Rs. 1,599.63 Lakhs during the financial year 2024-25 as against Rs. 1,146.04 Lakhs for the previous financial year 2023-24 and the segment result during the year 2024-25 is Rs. 1,609.56 lakhs as compared to Rs. 1632.63 lakhs during the corresponding previous year 2023-24.

SEGMENT : PRODUCTS

Products BU has demonstrated good growth with the introduction of new products, greater R&D efforts and enhanced Tech absorption. Our Routers and Switches are now well accepted in the market and have proven performance in the Telecom/Broad Band Markets as well as in Government sectors and the Indian Railways. We continue to focus on our Product Development and R&D efforts to ensure high local content in our products in order to successfully leverage the opportunities of Government policies of Make in India. Our committed efforts towards Local sourcing and Indigenous Development have reflected in our enhanced sales and customer acceptance towards our Products. Your Company is a DoT Trusted Source for Telecom Products. All Our Flagship products are TEC Certified as per mandated Government norms.

Telecom: The FY 2024-25 saw greater revenue generation from Network products. Switches and Routers were supplied in more quantities to all Tier 1 ISPs as well Broaband service providers. Annual Contracts with Tier 1 ISPs/TSPs like AirTel, Tata Tele-Services and Vodafone Idea for our Switches and Routers ensures regular revenue stream. We have also introduced SD WAN (Software Defined Wide Area Network) Products and successfully conducted POCs for a few customers. The technology being a successor to the traditional Switching and Routing products is a forward step in strengthening our products portfolio. In the future, we expect to see SD WAN and cloud services to provide greater impetus to our products revenue.

Railways: Railways continues to be an important market for our Products. This year we received increased orders for our Switches and Routers for deployment in various Signaling and Surveillance applications across the Railways.Our products also cleared stringent RDSO inspection. We have been constantly upgrading the product line up for Railways sector with improvements and additional features as per user requirements.

Defence: We have developed a TDMoIP Device for a Large Defence System Integrator. The device functions as a Network Interface Unit of a part of the Main System which will be fielded upcoming Defence Tenders. During the year we constantly interfaced for further future development and Military grade hardening of the device. The product was deployed for Army Field Trials and proved successful. It is expected that two defence tenders will be released in the next Financial year 2025-26 wherein partner SI will bid with our product.

Network Security: Our Unified Threat Manager device (UTM) is deployed in Pondicherry SWAN connecting all the Government Offices. The devices are deployed and functioning very reliably. Our team through the Network Operations Center (NOC) at Pondicherry are providing efficient network management services to the various departments and users. We are regularly implementing security policies as desired by the users and ensure NIL security breach till date. The customer has recognized our efforts and provided additional 50 new sites to be commissioned in Q4 of FY 2024-25. This Keystone project is a recognition of our capabilities in the Network Security domain.Our UTMs are also successfully deployed in the Railways and Coal Sector. We are focusing on increasing our efforts to leverage on our provenness and capture the larger market.

R&D and Product Development: We have also commenced R&D on developing an indigenous 1G switch. The firmware development is in progress and we expect to see the product roll out with more than 65% Local content. The switch hardware will be run from a CKD (Completely Knocked Down) kit and manufactured at our factory. The development is proof of your companys R&D capabilities and is a significant step in our vision to invest more into R&D and innovation.

As a Trusted Source on the DoT trusted Portal, Our Products have gained greater acceptance in the Market especially in the Switching and Routing Domain. We have regained a good foothold in the products sector as is evident from our revenue growth. In the coming year our focus will be on greater hiring and R&D efforts to significantly bolster our growth in this highly demanding sector.

The Companys Product Development Road map is as follows:

a) Products for Telecom and Railways; b) Turnkey Projects/System Integration c) Services d) Real Estate. These will continue to be the four pillars of the company for the next few years. The updated SWOT Analysis of the Company is as follows:

Key financial ratios comparison:

1. Sale of Property: As planned, your Company has successfully executed the sale of the property located at Electronics City and have received the proceeds from the sale. This is in line with the Companys strategy of relocating the Companys manufacturing operations to a more cost-effective and manufacturing centric location. This Rs. 40.5 crore asset monetisation will help the Company to deploy the cash flow effectively into strengthening the Companys primary business verticals of Real estate and telecom/ Networking infrastructure.

2. Your Company has launched a residential project "Umiya Bricklane", located at Candolim Beach in Goa. Your Company has applied for RERA approval for this project and the approval is expected to be received in due course.

3. Besides this project, your Company is at advanced planning to launch projects in the Uber luxury villa projects in Goa and Bangalore. The project in Goa will be a beach side luxury villa project in Benaulim. Your company is also in the process of finalising approval plans for a niche and exclusive uber luxury villa project in North Bangalore.

1. R&D and Product Development - Make in India -: Your Company invested significantly into R&D and focused on developing indigenous network products. Your Company has developed its own 1G switch. The firmware development is complete and the switch hardware will be manufactured from component level at the Companys manufacturing facility in Electronics City Bangalore. Your Company has also received the Copyright certificate for the Intellectual Property Rights (IPR) of the Product. With this, the Company has added another vital product to its Make in India Class 1 Category. The development is proof of the companys R&D capabilities and its commitment to Make in India. Your Company is now planning to develop more products in the 10 G and 40 G range as part of the Product development Roadmap.

2. Pondicherry State Wide Area Network (SWAN): Network Security: Last year, your Companys new product, the Unified Threat Manager device (UTM) was deployed in Pondicherry SWAN (State Wide Area Network) connecting all the Government Departments and end Offices. Government Departments access various applications like ERP and E-Office which are hosted by the State Data Center. As such Network Security is a very critical aspect. The project has been running successfully and has gained customer trust and acceptance. As a show of confidence, the Pondicherry Government has issued an additional order for another 54 sites. The UTMs are gaining much interest and generating several enquiries from Tier 1 Internet Service providers (ISPs) and System Integrators.

3. Defence: Your Company has developed a Network device for a Large International Defence manufacturer as part of their localization initiative. The device will serve as a part of the Main System and will be fielded in upcoming Defence Tenders. The device was recently successfully tested in Army Field Trials in highly challenging conditions of high altitudes and sub zero temperatures. Your Company is confident that the device will be a very competitive fit for upcoming Army Tenders. A winning bid will mean a significant order Value and a foray into the Defence Market. Further, your Company is targeting the product for the foreign markets since there is a good demand for the same in several parts of the world.