Mudunuru Ltd Management Discussions

Mudunuru Limited, headquartered in Visakhapatnam with an office in Hyderabad, continues its journey as a technology-driven enterprise. Since the strategic acquisition of majority control in 2022, the Company has focused on building sustainable business operations in niche IT, consulting, and digital solutions. FY 2024–25 marked a significant step forward in strengthening revenues, rationalizing costs, and positioning the Company for long-term growth.

The Indian IT and consulting sector remains resilient, with growth driven by cloud adoption, AI, data analytics, and digital transformation across industries. Demand is particularly strong in education, financial services, healthcare, and government digitalization initiatives, sectors where Mudunuru has established capabilities. Despite global uncertainties, India continues to be a cost-competitive innovation hub, offering opportunities for specialized mid-sized players.

Expanding scope for AI, IoT, and digital education platforms.

Rising demand for IT-enabled governance, e-learning, and fintech solutions.

Potential for strategic alliances and global partnerships.

Competitive pressure from established IT service providers.

Margin pressure due to pricing constraints in outsourcing.

Exposure to macroeconomic volatility and regulatory changes.

The Company operates in the software and consulting services segment.

Revenue increased to 630 lakhs in FY 2024–25 from 295 lakhs in FY 2023–24, reflecting a revival in operations and improved client acquisition

During FY 2024–25, Mudunuru Limited secured several high-impact projects that reinforce its position as a trusted technology and system integration partner for large enterprises and public sector undertakings. Some of the notable projects include:

1. BSNL – Indian Bank: Engagement to provide system integration services enabling high-volume enterprise messaging, with the capability to handle 2–3 crore SMS per day.

2. BSNL – Indian Overseas Bank (IOB): System integration services to support 30–40 lakh SMS per day, ensuring secure and reliable communication between the bank and its customers.

3. BSNL – Canara Bank Regional Rural Banks (RRBs): Enterprise-grade SMS delivery infrastructure managing 30–60 lakh SMS per day, supporting rural banking digitization initiatives.

4. BSNL – SAIL, ONGC, and JPDCL: Strategic order to provide system integration services for mission-critical enterprise communication needs of leading PSUs and utilities.

5. Direct Orders: Provision of managed SMS services to SMVCBL Bank, APDCH, HFS, Integrated Information Solutions, and other clients across the BFSI and enterprise sectors. These projects demonstrate the Companys capability to deliver secure, scalable, and highly reliable enterprise messaging solutions. The services provided cover: - API integration and system interoperability with banking and enterprise applications. - End-to-end managed enterprise-grade SMS platforms built with redundancy, security, and compliance as core principles.

- Advanced load balancing and intelligent traffic routing, ensuring uninterrupted services even during peak demand. - Full compliance with regulatory, banking, and enterprise standards, including data protection and audit readiness.

With these wins, Mudunuru has emerged as a key partner in enabling digital communication infrastructure for banks, PSUs, and enterprises. The scale and diversity of these projects are expected to contribute significantly to future revenue streams, strengthen client relationships, and enhance the Companys reputation in delivering mission-critical IT and system integration services.

Loss After Tax narrowed to 131 lakhs from 316 lakhs in the previous year, due to stronger revenue and cost optimization initiatives.

Mudunuru remains committed to scaling its business through:

Expansion into global markets including the USA, UK, and Southeast Asia.

Investments in subsidiaries and startups in EdTech, FinTech, and AI-driven solutions.

Leveraging its collaborative business model of executing projects under the Mudunuru brand while engaging trusted partners and associates to scale delivery capacity.

With these initiatives, the Company expects continued improvement in operational efficiency and gradual movement towards profitability.

Key risks include dependency on project-based contracts, technology obsolescence, and foreign exchange fluctuations. Human resource retention and skill development remain critical focus areas. Management is actively working to mitigate risks through internal controls, diversified client acquisition, and strengthening governance standards.

In view of an ongoing dispute with a client over invoicing and payment for services rendered, the Board of Directors has authorized Mr. M. Madhusudan Raju to pursue recovery efforts and, if unresolved, to initiate necessary legal action to protect the Companys interests.

The Company has adequate internal control systems commensurate with its size and complexity of operations. Financial reporting, compliance, and operational processes are reviewed regularly by internal and statutory auditors, with oversight by the Audit Committee. These systems are found to be effective and adequate.

FY 2024–25 showed improved top-line growth and reduced losses, reflecting managements efforts in streamlining operations. The positive revenue trajectory indicates that Mudunuru is on a turnaround path, though continued focus is required to achieve profitability on a sustainable basis.

Employees are viewed as key assets. The Company invested in training programs, upskilling initiatives, and leadership development during the year. Industrial relations remained cordial, and employee engagement has improved, aligned with the Companys growth strategy.

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, projections, estimates, or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to risks, uncertainties, and other factors beyond the Companys control. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements, on the basis of subsequent developments, information, or events.

The net worth of the company for FY 2024-25 is 79.18 Lakh and the net worth of for FY 2023-24 is 210.22 Lakh.