Photoquip India Ltd Management Discussions

GLOBAL ECONOMIC REVIEW

GDP Growth for FY25, growing at 6.4% in comparison to the FY24 of 8.2% Additionally, the year witnessed the inflationlevel declining from 5.4% in FY 2024 to 4.6% in FY 2025. FY26 GDP forecasted to grow between

6.3% - 6.8% YoY, S&P Global Ratings upgraded Indias sovereign rating outlook to positive from stable due to Contributing factors include sluggish manufacturing activity and reduced government expenditure The strong economic growth can be primarily attributed to the effective policies and initiatives undertaken by the Reserve Bank of India (RBI) along with the Indian Government. In addition to this, the Indian Government transformed the business environment of the country, attracting foreign direct investments

(FDI) to the economy. In the year under review, the gross foreign direct investment (FDI) flows remained resilient at USD 87.0 billion.

The Indian media and entertainment (M&E) sector grew by 3.3% in 2024, reaching INR2.5 trillion (US$29.4 billion), 30% above its pre-pandemic levels in 2019, according to the latest FICCI-EY report.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information or events.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company trades in Digital Lights for Cinematography, Videography and Photography and its Accessories. The Company is an authorised distributor of ‘Nanlite and ‘Nanlux products of a renowned manufacturing Company from China. In addition, the company manufactures its own range of accessories under the brand name "NEXT". The Company, over the decades, has been foreseeing industry requirement and accordingly catering to the needs of the photographic and videography fraternity. We continue to be driven by the mission of equipping every photo and video professional with the best latest equipment.

Digital media overtook television for the first time to become the largest segment, contributing 32% sector revenues Experts predict M&E sector in India to grow 7.2% in 2025 to reach INR2.68 trillion (US$31.6 billion), then grow at a CAGR of 7% to reach INR3.07 trillion (US$36.1 billion) by 2027

Filmed entertainment: The segment saw revenues fall by 5% to reach INR187 billion. Over 1,600 films were released in 2024, but domestic theatrical revenues fell 5% as admissions reduced, and just 11 Hindi films grossed INR1 billion, down from 17 films in 2023. Both digital and satellite rights values fell 10% in 2024 as broadcast and OTT buyers focussed on profitability

Live events: The organised segment grew 20%, exceeding pre-pandemic levels. Growth was driven by government events, personal events, weddings, and ticketed events, including several international formats and acts which came to India.

OTT: With streaming platforms utilising mobile plans and partnerships with local telcos to boost take-up,

OTT revenues have increased four-fold since 2019. India will be the worlds fastest growing OTT market in the next five years. In 2023, the market grew by 20.9%, reaching INR 17,496 crore. It is expected to double by 2028, growing at a CAGR of 14.9% and reaching a value of INR 35,062 crore. Subscription video-on- demand services (SVOD) will account for 65% of the market by 2028. Advertising video-on-demand (AVOD) is projected to grow at a 26.0% CAGR, reaching INR 11 ,097 crore by 2028.

Your Company is committed towards enhancing liquidity, managing inventory, working capital management and managing demand and supply to the Company products. At Company level, going forward, it is our conviction that the transparent policies along with the stringent statutory compliances will propel the organized sector towards growth. The traditionally fundamentally strong character of the Indian economy would continue to operate in the future.

BUSINESS OVERVIEW

The financial highlights are given below: -

Rs. In Lacs

Particulars	2024-25	2023-24
Revenue from sale of products (Exports)	20.27	NIL
Revenue from sale of stock in trade (Domestic sale)	1,691.12	1598.70
Revenue from sale of service (Export)	2.93	6.38
Revenue from sale of service (Domestic sale)	20.27	11.62
Other operating revenue	Nil	NIL
Total Revenue from Operations	1714.31	1616.70
Add: Other Income	94.79	32.85
Total Income from Operations	1,809.10	1649.55
Provision for Taxation	Nil	NIL
Deferred Tax Liability / (Asset)	15.77	48.59
Profit / (Loss) after tax	34.10	(223.07)
Paid-up equity Share Capital as on March 31	600.08	600.08

MARKETING

The Company has a well-established pan-India dealer network catering to the Indian photography market. It continues to maintain a strong presence in various industry-related exhibitions to reach out to mass target audiences. It has strategic tie-ups with industry-renowned photographers / training institutes to conduct imaging / photography workshops pan-India. It also conducts service camps across India at strategic locations to cater to the after-sales segment. The Company is active on the social media platforms including Facebook and Instagram.

SWOT ANALYSIS a) STRENGTHS

Our core strength continues to be our pioneering presence in this field of still photography over the last 6 decades. Add to it, adoption and seamless integration of technological advancements in the field through a competent and committed workforce with extensive industry experience, which give us the required edge over competition. b) WEAKNESSES

Changing client preferences or demands, economic instability, or the rapid evolution of technology continues to be a perceived weakness. c) OPPORTUNITIES

The photographic and videographic market is rapidly maturing in India with an increase in the demand and therein lies an opportunity for the Company to forOTTplatformandsocial mediainfluencers capitalize. The Company has strong sales and marketing base and uses cutting edge technology in distributing digital studio video lights and other products. The Company is making forays into the motion / video photography market with the introduction of industry-specific products. d) THREATS

Increasing competition, constant fluctuations in foreign exchange and global recession pose a continued threat to the Companys operations.

INTERNAL CONTROL

The Company has adequate internal control system commensurate with the size of its operations. Adequate records and documents are maintained as required by applicable laws. The Companys Audit Committee reviews the internal control system. During the year such controls were tested and no reportable material weaknesses in the design or operations were observed.

SEGMENTWISE REPORTING

During the year under review, Company has only one primary segment i.e. Digital Lights for Cinematography,

Videography and Photography and its Accessories. Two secondary segments have been identified based on the geographical locations of customers i.e. domestic and exports.

OUTLOOK

The Company maintains a positive outlook for the future. It also aims to make a mark in market of motion / video photography.

RISKS AND CONCERNS

Risk is an integral part of any business. As a responsible management, the Companys principal endeavor is to minimize risks.

CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, estimates, expectations or predictions are "forward-looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from what has been envisaged. Important factors that could make a difference to the Companys operations include overall global and Indian demand-supply conditions across industries, cyclical demand in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and such other factors.