Prevest Denpro Ltd Management Discussions

This section presents the Managements Discussion and Analysis of the financial performance and operational highlights of Prevest DenPro Limited for the year ended March 31, 2025. The purpose is to provide shareholders and stakeholders with key insights into the Companys business strategy, market position, risks, opportunities, and outlook.

Prevest DenPro Limited is engaged in the development and manufacturing of a wide range ofdental materials used for prevention, diagnosis, and treatment of dental conditions. The Company serves both clinical and laboratory segments, with over 100 products spanning adhesives, composites, endodontics, acrylics, waxes, and impression materials. Our offerings are used extensively in specialties such as restorative dentistry, orthodontics, prosthodontics, and periodontics.

Exports continue to form a significant part of our revenue. During the year, we maintained our strong positioning in global markets despite increasing competition and price sensitivity across geographies.

Financial Performance

The Company recorded consistent revenue growth, supported by steady exports and an improved product mix. Operating margins remained healthy, aided by cost efficiencies despite an increase in inventory levels to support future demand.

• Product Innovation & R&D: In-house research and development remained active, leading to upgrades in several existing formulations and development of new products. The focus remained on import substitution and expanding clinical applications.

• Export Performance & Market Expansion: Our export business performed in line with expectations. Efforts are underway to form new tie-ups and explore potential subsidiaries in select international markets to boost revenue and improve local service delivery.

• Public Health Collaboration: The Company entered into a 5-year MoU with the Indian Dental Association to support dental research and public health awareness.

Manufacturing and Capacity: Production was stable during the year. Existing facilities operated near optimal capacity. Additional investment in research and manufacturing capabilities has been planned to support product diversification.

• Inventory Position: Inventory days increased to 208, compared to 162 in the previous year, due to stocking of raw materials and finished goods ahead of anticipated demand cycles.

• Efficiency and Cost Measures: Several operational efficiency initiatives were implemented, including process automation, tighter procurement planning, and improved inventory controls.

• Cash Flow: Operating cash flow stood at Rs. 15 Cr, higher than Rs. 11 Cr in the previous year, reflecting improved working capital management.

• Capital Expenditure: Capex was focused on upgradation of equipment and R&D infrastructure. Total outlay during the year was Rs 2 Cr.

• Debt Profile: The Company continues to remain debt-free, giving it flexibility to pursue future growth plans without financial strain.

Internal Controls and Corporate Governance

The Company has in place a robust internal control system, ensuring accuracy of financial records, legal compliance, and operational effectiveness. Regular audits and oversight by the Board and Audit Committee strengthen our commitment to good governance.

Risk Management

Management recognizes the evolving risk environment and has put in place systems to monitor and mitigate various internal and external risks:

Outlook for FY 2025-26

Looking ahead, the Company remains focused on:

• Strengthening product pipeline through continued innovation and development.

• Deeper engagement with international markets by evaluating opportunities for subsidiaries and joint ventures.

• Digital and 3D-based products, expected to become a larger share of our portfolio in the coming years.

• Strengthening internal systems, especially in automation, digital integration, and ESG compliance.

Management expects FY 2025-26 to be a year of steady growth, subject to market dynamics and global trade conditions. We remain committed to sustainable operations, responsible innovation, ~ and long-term value creation.