Olatech Solution

Olatech Solutions Ltd Management Discussions

NSEBSE

₹190

(-3.50%)

Apr 10, 2026|05:30:00 AM

Olatech Solutions Ltd Share Price Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. INTRODUCTION:

Our company was originally incorporated as a Private Limited under the name "Ola Traders Private Limited" under the provisions of the Companies Act, 1956 and Certificate of Incorporation was issued by the Registrar of Companies, Maharashtra, Mumbai on January 03, 2014. Subsequently, the name of our Company was changed to "Olatech Solutions Private Limited" vide Shareholders Resolution dated March 07, 2022 with Certificate of Incorporation pursuant to change of name issued as on Registrar of Companies, Maharashtra, Mumbai dated April 11, 2022. Eventually, the status of our Company was changed to Public Limited and the name of our Company was changed to "Olatech Solutions Limited" vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on April 22, 2022. The fresh Certificate of Incorporation consequent to conversion was issued on April 18, 2022 by the Registrar of Companies, Mumbai. The Corporate Identification Number of our Company is L42909MH2014PLC251672. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 29, August, 2022.

2. INDUSTRY STRUCTURE:

Changing economic and business conditions, rapid technology, innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate. Companies in this environment are now focusing even more on their business objectives such as revenue growth, profitability and asset efficiency.

3. INVESTMENTS/ DEVELOPMENTS:

We are increasing our reach in the industry by expanding our client base across sectors / verticals. Development of software products aiming at various sectors to improve the depth of our engagement with the industry.

4. OPPORTUNITIES AND THREATS:

Strength:

• Experienced Promoter and a well-trained employee base

• Our solutions are robust, trusted & industry proven.

• We provide a diverse range of software products across varied customer segments.

• Continue to Focus on Providing Customer Centric Services and Offerings.

• Building-up as a Professional Organization & Attracting bright talents to the company.

Opportunities:

• Vast Industrial Presence in both Public and Private Sectors

• Huge demand for Domestic services

• Avail of Low-cost, Skilled Human Resources.

• Proactive government continued thrust on reforms- Further liberalization under process.

• Increasing investment in real assets (Capacity Expanding), Inflow of FDI (Foreign Direct Investment) across Industrial sector.

Threats:

As cybersecurity threats continue to evolve and become more sophisticated, enterprise IT must remain vigilant when it comes to protecting their data and networks. Further there are global and external factors, changes in Information Technology & Security Laws, tax laws, litigation and significant changes in the Global political and economic environment exert tremendous influence on the performance of the company. The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company is engaged in the business of Data Centre, Enterprise, Telecom, and IT Software solutions in the OSS - BSS (Operations Support System and Business Support System) segment. It provides software solutions and transformation services (System Integration) to clients and have deployed own software solutions at various institutions in India and other regions also.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, the Company has increased Paid-up Share capital of Company as per details mentioned below:

Date of Allotment	Nature of allotment	No. of Securities allotted	Cumulative No. of Securities
October 25, 2024	Preferential Issue	1,21,500	1,21,500
October 25, 2024	Preferential Issue (Warrants)	9,74,000	10,95,500

Reserves and Surplus:

The Reserve and Surplus of Company is Rs. 937.88 Lakhs as on period ended on 31st March, 2025.

Total Income:

The Company has earned total Income Rs. 2,122.78 Lakhs as on period ended on 31st March, 2025.

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

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Particulars	Numerator	Denominator	31st March, 2025	31st March, 2024	% Change	Remarks
			4.59	5.44	15.71	Below +/- 25%
Debt- Equity Ratio	Total Debt	Shareholders Equity	0.13	0.06	-115.21	Due to an increase in the CC loan limit from Union Bank and additional term loan taken from Tata Capital Finance. Therefore, Debt-Equity Ratio is on a higher side in Current Year.
Debt Service Coverage Ratio	Earnings Before Interest, tax, Depreciation Amortisation	Total Principle+ Interest on Borrowing	2.31	8.61	73.12	Due to an increase in the CC loan limit from Union Bank and additional term loan taken from Tata Capital Finance. Therefore, debt service coverage ratio is on a lower side in Current Year.
Return on Equity ratio (%)	Earning After Interest, tax, Depreciation & Amortisation	Average Shareholders Equity	0.33	0.51	35.10	Due to additional issue of equity shares during the period shareholders fund increased. Therefore, Return on Equity Ratio is on a lower side in Current Year.
Inventory Turnover Ratio	Cost of goods sold	Average Inventory	2.32	4.39	47.29	Materials used in providing the services was lower than usual during the period. Therefore, Inventory Turnover Ratio is on a lower side in Current Year.
Trade Receivable Turnover Ratio	Net credit Sales	Average Trade Receivables	5.66	5.79	2.16	Below +/- 25%
Trade Payable Turnover Ratio	Net Credit Purchase	Average Trade Payables	0.00	8.6	100.00	Below +/- 25%
Net Capital Turnover Ratio	Total Sales	Average Working Capital	1.47	2.22	33.92	Due to an increase in the CC loan limit from Union Bank current liability increased during the year. Therefore, Net Capital Turnover Ratio is on a lower side in Current Year.
Net Profit Ratio (%)	Net Profit	Net sales = Total sales - sales return	0.20	0.20	-0.78	Below +/- 25%
Return on Capital Employed (%)	Earnings before interest and taxes	Capital employed	0.28	0.55	49.73	Due to an increase in the CC loan limit from Union Bank at the year end and issue of shares capital employed increased during the year. Therefore, Return on Capital Employed is on a lower side in Current Year.

10. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

For and on behalf of the Board

Olatech Solutions Limited

Sd/-

Amit Kumar Singh

Chairman and Managing Director

DIN - 06582830

Place: Navi Mumbai

Date: 25-08-2025

Olatech Solutions Ltd Management Discussions

Olatech Solutions Ltd Share Price Management Discussions

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