Olympia Industries Ltd Management Discussions

The Directors of Olympia Industries Limited ("the Company") pleased to present the Management Discussion Analysis Report for the year ended 31^s March, 2025.

COMPANY OUTLOOK

Olympia has evolved as a trade epicenter offering all-inclusive e-commerce management, inventory control, and marketing services empowering more than 1000s brands in their sales journey. Olympia is known as the powerhouse of trade in India and International markets.

The Company has expanded into multi-modal fulfilment centres around India, serving as the foundation for seamless product delivery and operations. Olympia strategically places its warehouses in many locations such as Mumbai, Bengaluru, Kolkata, Gurgaon, and Hyderabad.

The Company also provides value-added services, bespoke repackaging, and customized solutions for B2C, B2B, and D2C needs. The company is yielding favourable outcomes in existing domains such as baby care, domestic appliances, electronics, gourmet, health care, home and kitchen appliances, luggage, personal care appliances, and pet products. The company has also successfully onboarded international gourmet brands in India.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

E-commerce is witnessing a global resurgence, and E-commerce in India is booming due to increased access to the internet in India and other emerging economies. This creates varied business opportunities that will drive organizations to become more up-to-date and enable increased competitiveness.

E-commerce, driven by digitization and internet penetration in the rural market, is creating huge opportunities for consumers. Competitive prices, deals, and efficient delivery coupled with the convenience of avoiding long queues have completely altered the buying experience. E-commerce is revitalizing consumer demand and catalyzing growth in Indias retail industry. The focus has shifted a pricing model to a more value-added model.

E-commerce in India has experienced rapid growth driven by the millennial (Generation Y) purchasing power, influence of the internet leading to development of varied mobile applications and websites, and the much- needed infrastructure. Mobile penetration accounts for a vast market in India, making it more convenient for consumers to shop for a wide variety of retail products.

OPPORTUNITIES:

The E-commerce trade is imbued with a host of promising opportunities that stem from the persistent progress of technology and changing consumer preferences. The universality of smartphones, coupled with faster internet speeds, fosters a digital landscape where E-commerce businesses can seamlessly reach a global customer base, transcending geographical boundaries. This presents a golden opportunity for companies to expand their markets, tailor offerings to specific demographics, and create personalized shopping experiences that were previously unimaginable. Moreover, the fortune of data generated by online transactions enables

businesses to gain invaluable insights into consumer behaviours and preferences, which can be harnessed to refine marketing strategics, optimize supply chains, and enhance overall customer satisfaction. B2B benefits from global outreach and data insights for tailored experiences and efficient operations. D2C thrives on direct engagement and personalized offerings, fueled by data-driven insights. Both sectors innovate, connect, and create unmatched value in this dynamic landscape:

Online Expansion and Evolving Shopping Behaviours

Consumers are increasingly prioritizing the convenience and safety of browsing and purchasing products from their homes. This shift has compelled brands to reassess their online strategies, emphasizing the enhancement of user experiences and the delivery of a seamless shopping journey. Moreover, online platforms present an extensive selection of products and a hassle-free shopping experience, making them a preferred choice for modern consumers.

Brand and E-Commerce Platform Strengthening through Video Commerce and Influencer Marketing

Digital innovations have revolutionized the retail landscape, transforming the way customers discover and purchase products. Video commerce and influencer marketing have emerged as powerful tools for brands to interact with customers and guide them through their purchase journey. Through adept utilization of technology, retailers can offer an immersive shopping experience, bridging the gap between physical and online retail.

Embracing Sustainability for Customer Retention and Loyalty

In the wake of environmental concerns and a shift towards ethical consumption, sustainability has become a pivotal factor influencing customer loyalty. Brands that showcase a commitment to sustainable practices draw in environmentally conscious consumers and retain them. By adopting eco-friendly initiatives, such as using recycled materials, reducing carbon footprints, and supporting ethical sourcing, brands can profoundly enhance their reputation and foster long lasting customer loyalty.

Mobile Commerce Dominance

Mobile devices will continue to dominate online shopping. E-commerce companies will need to optimize their platforms for mobile, ensuring a seamless and user-friendly experience for customers shopping on smartphones and tablets.

New marketing channels will emerge

In the past few years, there have been advancements in several areas of ecommerce marketing?including a new mix of channels. Plus, as an extension of social commerce, live shopping has started to gain traction worldwide. Another new channel ecommerce companies are exploring is connected TV advertising. This involves running ads on platforms on various social media platforms. B2B companies are diversifying their

strategies to include these dynamic channels, leading to increased engagement, enhanced content delivery, and global outreach. Through these platforms, B2B & B2C businesses can effectively showcase products, interact with clients, and gather data-driven insights to refine their marketing approaches and improve overall customer experience on an international scale.

THREATS

Although the future of E-commerce holds enormous good, it is not devoid of considerable threats that need consideration. There are chances of escalating cyber threats and data breaches with the rapid digital transformation. Simultaneously, the ever mushrooming competition in the E-commerce sector raises concerns about market saturation and the commoditization of products and services. Steering these threats necessitates a proactive approach that combines robust cybersecurity measures, strategic differentiation, and adaptable business models to ensure the E-commerce industrys resilience in the face of these multifaceted challenges.

Intensifying Competition

The Indian retail market has become increasingly competitive, with the entry of numerous new players. Shoppers Stops strong market position is sustained by its extensive presence, seamless service offerings, diverse formats, and highly skilled management team. However, competition continues to pose a challenge, requiring the Company to constantly innovate and differentiate itself to maintain its edge.

Inflation

Rising inflation rates globally can lead to a decrease in consumers disposable incomes. This reduction in purchasing power can result in a decline in discretionary spending, affecting businesses reliant on consumer demand. To address this challenge, the Company continuously assesses and adjusts its pricing strategies and product offerings to cater to changing consumer preferences and economic conditions

Supply Chain Disruptions

Disruptions in the supply chain pose a significant threat to the retail industry, affecting product availability and pricing dynamics. To mitigate this risk, the company has implemented robust supply chain management practices and remains vigilant by monitoring and responding to shifts in the supply chain landscape.

SEGMENT WISE PERFORMANCE

The Company is reporting in only one reportable segment viz. trading.

RISK MANAGEMENT

The Board of Directors reviews the Companys business risks and formulates strategies to mitigate those risks. The Senior Management team, led by the Managing Director, is responsible for proactively managing risks with appropriate mitigation measures and ensuring their implementation thereof

Risk	Description	Mitigation
Compliance and Regulatory Risks	Adherence to evolving regulatory standards and environmental norms can pose challenges and may require substantial investments in compliance measures.	The Company stays updated on regulatory changes and ensures adherence to all regulations.
Competitive Landscape	The retail and e-commerce sectors are fiercely competitive, with constant threats from existing and new entrants. This environment challenges the maintenance of market share and the customer base.	Develop a diverse range of selling platforms, curate unique product lines, and engage in responsible marketing to foster long-term brand loyalty.
Technology Risk	Failure to adopt and invest in emerging technologies may lead to inefficiencies, reduced competitiveness, and loss of market share overtime.	The Company monitors industry trends and invests in R&D to stay ahead of technological obsolescence.
Talent Retention	The need for skilled employees in a competitive and evolving market is crucial for innovation and growth. Moreover, the loss of key personnel or a lack of necessary skills can impede progress.	Offer competitive compensation, invest in workforce diversity, and prioritise the upskilling and reskilling of employees to maintain a high-performance culture.
Cybersecurity and Data Breaches	Vulnerabilities to cyberattacks and data breaches pose significant operational and reputational risks.	Allocate resources to cybersecurity enhancements, conduct thirdparty IT system evaluations, and provide comprehensive cybersecurity training to employees.
Discount Threats	Aggressive discount strategies by e- commerce platforms pose a threat to the market. They foster a preference for low priced, lower-quality goods.	Improve the price-value proposition, focus on high-quality sourcing, and enhance customer experience to foster loyalty and counteract the lure of discounts.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place internal control systems and a structured internal audit process vested with the task of safeguarding the assets of the organization and ensuring reliability and accuracy of the accounting and other operational data. These are implemented through systems, policies, delegation of authority, and diligent management oversight.

Similarly, wc maintain a system of monthly review of the business as a key operational control, wherein the performance of units is reviewed and corrective action is initiated. Accountability is established for implementing the projects on time and within the approved budget.

The Audit Committee and the Senior Management Team are regularly apprised of the internal audit findings and regular updates are provided of the action taken on the internal audit reports. The Audit Committee reviews the quarterly, half yearly and the annual financial statements of the Company.

The Companys tailored Internal Financial Control Framework undergoes regular evaluation by Internal Auditors, with updates provided to the Audit as needed. The Companys Management Reporting System is well- established, facilitating regular internal reviews with the leadership team and quarterly reports presented to the Board.

FINANCIAL PERFORMANCE

The turnover of the Company has increased to Rs. 2,82,47,06,374 from Rs. 1,89,05,03,056 in the previous year. Net profit from operations stood at Rs 1,29,55,123as compared to Rs. 78,76,986 in the previous year. In the future, the company expects to become more competitive in a global market as it has successfully on boarded domestic & international brands in India.

The Key Financial Highlights of the Company have been covered in detail in the Board Report section.

Key Financial Ratios:

The Operating Profit Margin has decreased to 9.89 % in FY 2024-25 as compared to 11.22 % in FY 2023-24. Net profit of the Company has increased to 0.46 % in FY 2024-25 as compared to 0.42% in FY 2023-24. Debt Equity Ratio of the Company has increased to 1.06% in FY 2024-25 from 0.97% in FY 2023-24. Return on Capital Employed of the Company has stood at 12.99% in FY 2024-25 as compared to 10.90% in FY 2023-24. There was a decrease in Debtors Turnover ratio and Inventory Turnover Ratio to 40 days and 129 days in the current year compared to 48 days and 188 days respectively in previous year, Owning to increase in inventory for future growth of the Company. Interest Coverage Ratio of the Company has decreased to 1.50 % in FY 2024- 25 from 1.56% in FY 2023-24. Current Ratio of the Company has increased to 1.47% in FY 2024-25 from 1.46 % in FY 2023-24.

The return on Net Worth has increased to 2.43% in FY 2024-25 from 1.52% in FY 2023-24.

The Variation in Ratio is 60%. This is owing to increase in operational efficiencies and increase in Turnover.

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

Human Resource management is crucial for the long-term success of any Company, and at Olympia Industries Limited, employees are the driving force behind its continued success. The Company prioritizes employee welfare by fostering a safe and inclusive work environment through employee-centric policies and initiatives.

The companys talent management strategies are focused on identifying and retaining top talent through structured career progression paths, competitive compensation packages, and a culture of continuous learning and development. The company plan to continue investing in training programmes and other resources that enhance our employees skills and productivity, it will continue to help the employees to develop understanding of the customer oriented corporate culture and service quality standards to enable them to continue to meet the customers changing needs and preferences.

The Company is focused on developing the cordial relations with the employees, retaining and motivating employees in the work situation. The Management believes in maintaining cordial industry relations.

As on 31^st March, 2025 the number of permanent employees were 131.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations of the Company, may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors.