Paluck Technologies Ltd Management Discussions

The following discussion is intended to convey management s perspective on our financial condition and results of operations for the financial years ended March 31, 2025, 2024 and 2023. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled Restated Financial Information on page 207 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled Risk Factors on page 27 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled Forward-Looking Statements on page 20 of this Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to we , us or our refers to Paluck Technologies Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the financial years ended March 31, 2025, 2024 and 2023 included in this Draft Red Herring Prospectus beginning on page 207 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Paluck Technologies was originally founded in 2009 by Navin Katiyar as a proprietorship firm under the name of Sarika Katiyar, engaged in providing diesel generator services. Over the years, the Company has evolved into a diversified engineering services and infrastructure support organisation, with operations spanning Automobile & Engineering Services, Logistics & Equipment Rental, Telecom Engineering. The company has built and maintains a robust portfolio serving both corporate and retail clients across sectors with high growth potential. It s focus is to deliver best-in-class solutions through strong OEM partnerships, geographic advantage, and a multi-segment operational model

In the Construction Equipment Rental segment, the Company provides end-to-end concrete transportation, infrastructure equipment rental, and RMC plant setup services. With a substantial asset base comprising 123 transit mixers, 13 concrete pumps, and 57 Logistics Trucks, Paluck caters to leading infrastructure developers, EPC contractors, and cement manufacturers across India. The operations are geographically distributed across key infrastructure development regions including Delhi NCR, Rajasthan, Haryana, Madhya Pradesh, Gujarat, Odisha, and Jammu & Kashmir.

The Logistics and Fleet Management division supports infrastructure and construction logistics through its owned fleet of over 193 specialized vehicles including transit mixers, logistic trucks and pump units. The vehicles are managed through an integrated digital system connected with ERP, SAP, and GPS tracking solutions.

Within the Telecom Engineering Services vertical, company has established itself as a trusted implementation and maintenance partner for major telecom operators. The Company executes contracts awarded by leading telecom OEMs and has a proven track record of managing many telecom sites across

India, the Company supports network expansion, upgrade, and maintenance programs across multiple telecom circles.

Additionally, Paluck Technologies operates as an Authorized Service Center And Dealership for prominent OEMs. The Company provides servicing of diesel and gas generators, including the supply and installation of dual-fuel conversion kits and retro emission control devices (RECDs) compliant with NGT norms. The Company is also undertakes authorized service center and dealership for commercial vehicle and two-wheeler including maintenance services and spare parts distribution in the State of Haryana. These dealerships reflect the Companys strong OEM alignment and capability to serve a wide customer base with trusted and compliant solutions.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED FINANCIALS

After the date of last Audited Accounts i.e. for the financial year ended March 31, 2025, the Directors of our Company confirm that, there have not been any significant material developments.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled Risk Factor beginning on page 27 of this DRHP. Our results of operations and financial conditions are affected by numerous factors including the following:

1. Our projects are subject to risks of delays, cost overruns, and cancellations arising from multiple external factors such as land acquisition hurdles, statutory approvals, labor unrest, and adverse weather conditions, which could adversely affect revenue recognition, profitability, customer confidence, and our reputation in the market.

2. Our revenues are closely tied to the performance of the infrastructure and construction sectors, which are cyclical in nature, and downturns in these sectors due to economic slowdowns, reduced government spending, or regulatory changes could lead to underutilization of assets, reduced margins, and adverse impact on our overall financial condition.

3. We are heavily dependent on the continuous availability, maintenance, and optimal utilization of our fleet and equipment, and any prolonged downtime, breakdowns, accidents, or underutilization could significantly affect our operational performance, profitability, and reputation.

4. We intend to utilise a portion of the Net Proceeds towards capital expenditure towards the purchase of new Ready-Mix Concrete (RMC) machinery and DG sets, and we cannot assure you that we will be able to derive the benefits from the proposed object.

5. Our business model is working capital intensive and requires substantial upfront financing for fleet, manpower, and consumables, and any delays in receivables or constraints in obtaining external funding could strain our liquidity and impact our ability to deliver projects on time.

DISCUSSION ON RESULT OF OPERATIONS Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled Restated Financial Statements beginning on page 207 of the Draft Red Herring Prospectus.

Overview of Revenue & Expenditure

Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations

The Company s revenue is primarily generated from the renting of construction equipment and infrastructure, telecom engineering services, logistics and fleet management and having authorized service center and dealership.

Other Income

Our other income mainly consists of interest income, profit on sale of assets and miscellaneous income.

The below table show our revenue for the fiscal 2025, 2024 and 2023:

(t In Lakhs)

Particulars	As at 31st March 2025	As at 31st March 2024	As at 31st March 2023
Incomes:
Revenue from Operations	10,281.00	10,073.54	9,225.57
% of total revenue	99.92%	99.01%	99.95%
Other income	8.61	100.23	4.88
% of total revenue	0.08%	0.99%	0.05%
Total Revenue	10,289.61	10,173.76	9,230.45

Expenditure

Our total expenditure primarily consists of cost of materials consumed, changes in inventories of finished goods, work- in-progress and stock-in-trade, direct and manufacturing expenses employee benefits expenses, finance cost, depreciation and amortization and other expenses.

Cost of materials consumed

This represents cost of materials consumed comprises of stores spares and other finished goods.

Changes in inventories of finished goods and work-in-progress

This relates to the changes in inventories of finished goods and work-in-progress.

Employment Benefit Expenses

It includes salaries, wages, bonus and allowances, directors remuneration, contributions to welfare funds, provision for gratuity and other expenses.

Other Expenses

It includes Payment to Auditors, Power & Fuel, Repairs & Maintenance, Insurance, Rates & Taxes, Freight charges, Rent, Service Charges, Travelling Expenses, Professional Charges, Legal Charges and General Expenses.

Finance Costs

Our finance costs mainly include interest expenses and Bank Charges.

Depreciation

Depreciation includes depreciation and amortization.

RESULTS OF OUR OPERATION

(t In Lakhs)

Particulars	As at 31st March 2025	As at 31st March 2024	As at 31st March 2023
Incomes:
Revenue from Operations	10281.00	10073.54	9225.57
% of total revenue	99.92%	99.01%	99.95%
% Increase/(Decrease)	2.06%	9.19%	34.82%
Other income	8.61	100.23	4.88
% of total revenue	0.08%	0.99%	0.05%
% Increase/(Decrease)	-91.41%	1952.36%	3773.69%
Total Revenue	10289.61	10173.76	9230.45
% Increase/(Decrease)	1.14%	10.22%	34.89%
Expenses:
Cost of raw material consumed	7827.89	7061.61	6347.67
% of total revenue	76.08%	69.41%	68.77%
% Increase/(Decrease)	10.85%	11.25%	22.15%
Changes in Inventories	-1148.44	16.24	-340.10
% of total revenue	-11.16%	0.16%	-3.68%
% Increase/(Decrease)	-7169.73%	-104.78%	-44.45%
Direct & manufacturing expenses	180.44	3.88	3.13
% of total revenue	1.75%	0.04%	0.03%
% Increase/(Decrease)	4545.67%	24.21%	-
Employee Benefit expenses	511.12	537.44	746.26
% of total revenue	4.97%	5.28%	8.08%

Particulars	As at 31st March 2025	As at 31st March 2024	As at 31st March 2023
% Increase/(Decrease)	-4.90%	-27.98%	29.06%
Other Expenses	1010.51	1127.76	987.06
% of total revenue	9.82%	11.09%	10.69%
% Increase/(Decrease)	-10.40%	14.25%	120.77%
Total Expense	8381.53	8746.95	7744.02
% of total revenue	81.46%	85.98%	83.90%
% Increase/(Decrease)	-4.18%	12.95%	38.04%
Profit before Interest, Depreciation and Tax	1908.09	1426.81	1486.43
% of total revenue	18.54%	14.02%	16.10%
Less: Other Income	8.61	100.23	4.88
Operating Profit before Interest, Depreciation, Tax and other income	1899.48	1326.59	1481.55
% of total revenue	18.46%	13.04%	16.05%
Depreciation and amortization Expenses	436.59	649.32	802.49
% of total revenue	4.24%	6.38%	8.69%
% Increase/(Decrease)	-32.76%	-19.09%	30.82%
Profit before Interest and Tax	1471.50	777.50	683.94
% of total revenue	14.30%	7.64%	7.41%
Finance Cost	187.05	284.35	396.26
% of total revenue	1.82%	2.79%	4.29%
% Increase/(Decrease)	-34.22%	-28.24%	25.86%
Profit before Tax and Extraordinary Expenses	1284.45	493.15	287.68
% of total revenue	12.48%	4.85%	3.12%
Extraordinary Expenses	-	-	-
% of total revenue	0.00%	0.00%	0.00%
% Increase/(Decrease)	-	-	-
Restated Profit/(Loss) before tax	1284.45	493.15	287.68
% of total revenue	12.48%	4.85%	3.12%
% Increase/(Decrease)	160.46%	71.42%	-5.69%

Particulars	As at 31st March 2025	As at 31st March 2024	As at 31st March 2023
Tax expenses/(income)
Current Tax	335.17	150.36	85.98
Deferred Tax	-14.10	-0.55	-16.13
Earlier Year Taxes	0	-	-
Total tax expenses	321.07	149.81	69.85
% of total revenue	3.12%	1.47%	0.76%
Minority Interest	-	-	-
Restated profit/(loss) after Tax	963.38	343.33	217.83
% of total revenue	9.36%	3.37%	2.36%
% Increase/(Decrease)	180.60%	57.61%	-4.69%

Our income is dependent upon few major customers, details of the same is as following:

Particulars	2025		2024		2023
	(Rs in lakhs)	As a% of total Revenue	(Rs in lakhs)	As a% of total Revenue	(Rs in lakhs)	As a% of total Revenue
Top Ten customers	6126.74	59.59%	6186.24	61.41%	6047.89	65.52%
Top five customers	5379.17	52.32%	5334.90	52.96%	5014.59	54.33%

REVIEW OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2025 Income from Operations

Our revenue from operations for the fiscal year ended March 31, 2025 was Rs 10,281.00 Lakhs which was about 99.92% of the total revenue and which comprises of construction equipment leasing, telecom engineering services, and through authorized service center and dealership of various well-known companies. The overall turnover has increased as result of improved utilization of logistics and equipment rental assets and steady growth in the automobile and engineering services verticals.

Other Income

Our other income for the fiscal year ended March 31, 2025 was Rs 8.61 Lakhs which was about 0.08% of the total revenue and which includes interest income and miscellaneous income.

Expenditure

Total Expenditure for the fiscal year ended March 31, 2025 was Rs 8,381.53 Lakhs which was about 81.46% of the total revenue.

Cost of raw materials consumed

The Cost of raw materials consumed for the fiscal ended March 31, 2025 were Rs 7,827.89 Lakhs which was about 76.08% of the total revenue.

Changes in inventories of finished goods and work-in-progress

The changes in inventories of finished goods and work-in-progress for the period ended March 31, 2025 were Rs (1,148.44) Lakhs.

Direct & manufacturing expenses

The Direct & manufacturing expenses for the fiscal year ended March 31, 2025 were Rs 180.44 Lakhs which was about 1.75% of the total revenue and which includes freight, Loading and unloading expenses, Rates & taxes, stores & spares consumed and other expenses.

Employee Benefits expenses

The employee benefits expenses for the fiscal year ended March 31, 2025 were Rs 511.12 Lakhs which was about 4.97% of the total revenue and which includes salaries, wages, bonus and allowances, directors remuneration, contributions to welfare funds, provision for gratuity and other expenses.

Other Expenses

Other Expenses for the fiscal year ended March 31, 2025 were Rs 1,010.51 Lakhs which was about 9.82% of the total revenue and which includes Payment to Auditors, Repairs & Maintenance, Insurance, Rates & Taxes, Logistics & Equipment Rental Service, Service expenses, Travelling & Conveyance Expenses, Rental expenses, Sales & Promotion Expenses, discounts, Legal & Professional Expenses and Other office and administrative Expenses.

EBIDTA

Our EBITDA for the fiscal year ended March 31, 2025 were Rs 1,899.48 Lakhs (excluding other income) which was about 18.46% of the total revenue.

Finance Costs

Finance costs for the period ended March 31, 2025 were Rs 187.05 Lakhs which was about 1.82% of the total revenue and which consists of interest and Bank charges.

Depreciation

Depreciation for the fiscal year ended March 31, 2025 were Rs 436.59 Lakhs which was about 4.24% of the total revenue and which consists of depreciation and amortization expenses.

Profit /(Loss) after Tax

PAT for the fiscal year ended March 31, 2025 was Rs 963.38 Lakhs which was about 9.36% of the total revenue.