NINtec Systems Ltd Management Discussions

3 Nasscom

Business Overview

Nintec Systems Limited is well poised in delivering software development services and solutions to global enterprises and to adopt new technologies. It is a provider of consulting, technology, outsourcing and digital services, enabling clients in different countries to create and execute strategies for their digital transformation. We have specialised in off/on-shore software product development, software migration, multimedia design & development, application development & maintenance and web designing.

Outlook

NINtec constantly strives to recognize the business opportunity behind the changing environment especially in identifying offerings in new arenas i.e. cyber space which is really useful in the competitive environment. While our clients proactively seek support and strategic inputs as they look towards embarking on their digital journey, our team imbibes the leading best practices with out of box solutions to deliver client objectives. The Companys strategy for long term growth is to continuously expand the addressable market, increase the customer-base and superior execution that gives clients an experience of digital transformation.

Internal Control Systems and their Adequacy

NINtec maintains an adequate internal control system, which provides, among other things, reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against significant misuse or loss of Companys assets. Integrated Framework is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The framework requires a Company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness.

Segmental Performance or product-wise performance

The Company operates in only single segment. Hence segment wise performance is not applicable

Opportunities and Threats, Risks and Concerns

Information Technology support services remain an increasingly competitive business environment. With the change in emerging technology areas, Companies have become dependent on technology not only for day-to-day operations, but also for the use of technology as a strategic tool to enable them to re-engineer business processes, restructure operations, ensure regulatory compliances, etc. Over the coming years, the industry will see huge demand in cloud- based applications, big data & analytics, mobile systems, social media etc. This provides an opportunity for providers to support and integrate Company IT systems on an on-going basis. The IT Industry becomes a powerful tool used by Companies to reduce their costs. Small and medium business houses have also started using IT with the emergence of cloud computing. Global cloud market is expected to grow faster than overall IT.

The Company intends its growth share with the existing clients which will have a supplemental effect of reducing overhead and delivery costs. The Companys business model is such that helps in evolving to meet the pace of change in its customers customer base. Your Company intends to continue building on the strength of its superior service delivery culture to seize the existing opportunities.

In the midst of a challenging business environment, there are certain threats which can have impact on the business of the Company. We understand that in order to remain competitive and to continue being a trusted partner to our customers, we need to expand our operational scope to provide better services and capabilities. While businesses are trying with every passing day to integrate information technology in their daily life, user organisations are facing several challenges in terms of performance and integration with existing applications.

Financial Highlights

Nintec Systems Limited, during the year under review achieved revenue from operations of Rs. 858,470 thousand on Standalone basis and Rs. 1,398,042 thousand on Consolidated basis, Profit Before tax Rs. 310,916 thousand on Standalone basis and Rs. 349,910 thousand on Consolidated basis, Profit After tax Rs. 233,134 thousand on Standalone basis and Rs. 263,220 thousand on Consolidated basis and Total Tax expense Rs. 77,782 thousand on Standalone basis and Rs. 86,690 thousand on Consolidated basis as compared to the previous Financial Year 2023-2024 where the Revenue from Operations was Rs. 647,419 thousand on Standalone basis and Rs. 830,461 thousand on Consolidated basis, Profit Before tax Rs. 186,634 thousand on Standalone basis and Rs. 204,435 thousand on Consolidated basis, Profit After tax Rs. 140,722 thousand on Standalone basis and Rs. 155,148 thousand on Consolidated basis and Total Tax expense Rs. 45,912 thousand on Standalone basis and Rs. 49,287 thousand on Consolidated basis. The Basic and Diluted Earnings per share of the company as on 31st March, 2025 is Rs. 12.55 on a standalone basis.

Foreign Currency Risks

Volatility in global economies have become the new common in recent times and since India IT industry is largely focused on markets outside India, fluctuations in major currencies due to unstable economic conditions impact revenue and profits of the IT industry. However, the company has a defined policy for managing its foreign exchange exposure minimizing the currency risk which results in stable earnings.

Human Resources

The company maintains strong relationships with its employees, prioritizing a balanced work-life approach that fosters innovation, excellence, and mutual trust between personnel and the organization. As of March 31, 2025, the company employs a total of 452 permanent staff members. In addition, the company is committed to ongoing training programs designed to enhance both technical and behavioral skills at every level, supporting the development of a dynamic and innovative work culture. The directors would like to express their sincere gratitude to all employees for their unwavering support.

Cautionary Statement

Statements made in this Management Discussions and Analysis describing Companys objectives and predictions may be "forward-looking Statements" involving future plans of the Company within the meaning of applicable laws and regulations. Actual results may differ from those expressed herein. The Company is dependent on factors that can impact the operations i.e. Government regulations, tax regimes, and economic developments within India and other countries. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. The following discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the Standalone Financial Results of the Company.

KEY FINANCIAL RATIOS:

The key Financial Ratios during Financial Year 2024-25 and Financial Year 2023-24 are as below: