ROX Hi-Tech Ltd Management Discussions

Macroeconomic Overview

Global Economy

The global economy in CY 2025 is undergoing a phase of transition, marked by moderate growth amid geopolitical realignments, rapid technological evolution, and shifting market demands. Global GDP growth remained steady at 3.3% in CY 2024, easing to 2.8% in CY25, reflecting persistent headwinds such as geopolitical tensions, supply chain disruptions, and demographic challenges.

Advanced economies grew modestly at 1.8% (Y-O-Y), while Emerging Market and Developing Economies (EMDEs) outpaced them at 4.3%, driven by digital transformation and infrastructure investments. The U.S. demonstrated resilience, supported by strong tech-sector demand and consumer spending, whereas the Eurozone lagged due to structural inefficiencies. India and Southeast Asia emerged as key growth engines, fueled by rapid digital adoption, expanding IT infrastructure, and government-led tech initiatives.

Global Economic Growth (%)

(Real GDP, Annual % Change)

Region / Economy	CY24	CY25 CY26 (P) (P)
Global GDP	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Emerging Markets	4.3	3.7	3.9
Emerging Asia	5.3	4.5	4.6
China	5.0	4.0	4.0
India	6.5	6.2	6.3

Source: International Monetary Fund (IMF), April 2025 Report

and cloud infrastructure, impacting IT infrastructure deployments globally.

Despite these challenges, accelerated digital adoption, AI integration, and smart infrastructure investments?€” particularly in high-growth regions like India and Southeast Asia?€”present significant opportunities for ROX Hi-Tech. The company is well-positioned to leverage these trends through its expertise in networking solutions, cybersecurity, and next-gen digital display technologies.

Indian economy

India continues to be one of the fastest-growing major economies, driven by its demographic advantages, strong domestic demand and ongoing structural reforms with a strong digital underpinning. The country is playing an increasingly significant role in the global economy, supported by healthy Goods and Service Tax (GST) collections and sustained growth in key sectors such as technology-enabled manufacturing, next-gen infrastructure and digital services. However, amid heightened global uncertainties, Indias GDP growth moderated to 6.5% in FY 2025, down from 9.2% in FY 2024, according to the Ministry of Statistics and Programme Implementation (MOSPI). This slowdown is primarily due to factors like a dip in manufacturing activity, persistent food inflation, weaker urban consumption, limited job creation, a widening trade deficit and subdued private investment. Despite these challenges, India has maintained a resilient growth trajectory, supported by the strong performance of its technology-led services sector, increased public infrastructure investment and government initiatives focused on digital transformation, financial inclusion and improving the business environment through tech-enabled solutions.

Indian GDP Growth Rate (in %)

Outlook

Global growth is projected at 2.8% in CY 2025 and 3.0% in CY 2026, with advanced economies stabilizing at 1.4?€“ 1.5% and emerging markets sustaining stronger growth (~3.7?€“3.9%). However, rising trade tensions?€”such as the

FY 2024

Source:

FY 2025 *

FY 2026 #

U.S. tariffs imposed in March 2025?€”pose risks to supply chains and tech-sector investments. These disruptions could elevate costs for hardware, semiconductors,

* MOSPI Report dated 28 th February 2025

# Reserve Bank of India (RBI) Monetary Policy Committee (MPC) report dated 9 th April 2025

Inflation remained a persistent challenge throughout FY 2025 fueled by ongoing global supply chain disruptions and fluctuating commodity prices. In response, the RBIs Monetary Policy Committee (MPC) implemented two consecutive 25 basis point cuts to the repo rate, reducing it to 6% as of April 2025, while shifting economic stance from Neutral to Accommodative. Consumer Price Index (CPI) inflation is projected to average 4.9% for FY 2025, a slight improvement from 5.4% in the previous year and is expected to further ease to 4.0% in FY 2026. Despite external pressures, Indias medium-term growth outlook remains positive, underpinned by proactive policy measures, a growing tech-savvy middle class and strengthening digital economic fundamentals.

Outlook

Despite ongoing geopolitical tensions and global market volatility, Indias economic outlook remains optimistic, with GDP growth anticipated to outpace the global average. Strategic government initiatives, including the Production-Linked Incentive (PLI) scheme for tech manufacturing and increased investments in digital infrastructure, renewable energy and technology-led transformation, are expected to drive long-term economic growth and boost Indias global competitiveness. These factors position India to become the worlds third-largest economy by FY 2030, with a projected GDP of USD 7 trillion. The Indian economy is projected to grow by 6.5% Y-O-Y in FY 2026, maintaining the pace expected in FY 2025. While recent tariffs have had a mixed impact creating challenges for export-oriented sectors while benefiting select domestic industries through reduced import competition, overall investor sentiment remains resilient. Continued policy reforms and accelerated digitalization are enhancing transparency and operational efficiency, positioning the economy to be more structured, adaptable and future-ready in an increasingly digital global marketplace.

Source:

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Industry Overview

Global IT Industry

The global Information Technology (IT) industry continues to evolve at a rapid pace, driven by ongoing technological advancements and shifting market demands across various sectors. The global IT services market was valued at around USD 1.50 trillion in CY 2024 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.4% from CY 2025 TO CY 2030, fueled by digital transformation, cloud computing adoption, and increased focus on cybersecurity, innovation and automation. Key growth drivers include the rise of IoT, data analytics, AI/ML, and the persistent shift to remote/ hybrid work models, which continue to boost demand for flexible, scalable IT solutions. Cloud migration is further intensifying the need for services to manage and secure these environments amid escalating cyber threats. In CY 2024, AI and machine learning led the IT services market in revenue, powered by abundant data and advanced computing capabilities enabling applications like fraud detection and predictive maintenance. The IT services industry continues to expand rapidly, playing a critical role in supporting business agility, resilience and growth across sectors.

Rising IT spending, particularly on SaaS and cloud-based solutions, continues to fuel market demand. These services enhance business process efficiency while allowing firms to focus on core operations without managing complex IT infrastructure. Organizations are increasingly leveraging IT services for everything from employee record management to sophisticated supply chain and operations oversight.

Generative AI (GenAI) is transforming the technology landscape, driving innovation across industries and redefining approaches to automation, creativity and data-driven decision making. Currently entering the "trough of disillusionment" phase, GenAI investments remain strong, with spending on AI-optimized servers expected to more than double traditional server investments at USD 202 billion in CY 2025. This growth will be primarily driven by IT service providers and hyperscalers, who will account for over 70% of this increase.

According to Gartner, global IT spending is projected to reach USD 5.62 trillion in CY 2025, reflecting a 9.8% increase over CY 2024. Software will lead this growth with a 14.2% increase, followed by data center systems

at 23.2% and devices at 10.4%. IT services are projected to grow by 9%, while communications services will see a more modest 3.8% rise, reflecting continued strong investment in digital transformation and IT infrastructure worldwide.

In the Middle East and North Africa (MENA) region, IT spending is projected to reach USD 230.8 billion

in CY 2025, up 7.4% from USD 215.0 billion in CY 2024. Software is projected to be the leading growth segment with a 13.7% increase, followed by IT services at 8.9%. Data center systems, the fastest growing category, is expected to maintain robust 14.9% YoY growth. While spending on devices and communication services will grow more modestly (6.1% and 6.2% respectively), they remain important components of the regions evolving IT landscape.

MENA IT Spending Forecast, 2024-2025 (millions of USD)

2024 Spending		2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Center Systems	5,557	14.9	6,382	14.9
Devices	33,969	13.4	36,052	6.1
Software	17,581	12.3	19,984	13.7
IT Services	25,158	7.5	27,393	8.9
Communication services	132,688	6.9	140,981	6.2
Overall IT	214,953	8.6	230,792	7.4

Source: Gartner (November 2024)

Europes IT spending is expected to reach USD 1.28 trillion in CY 2024, up 8.7% from CY 2024. Key growth segments include software (13.2% to USD 288.2 billion), IT services (9.2% to USD 489.8 billion) and devices (9.3% to USD 146.7 billion). Data center systems and communications services will see more moderate growth, reflect steady but measured investment across European markets.

Europe IT Spending Forecast (millions of U.S. Dollars)

2024 Spending		2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Center Systems	50,043	11.1	54,410	8.7
Devices	134,239	6.4	146,700	9.3
Software	254,554	11.4	288,163	13.2
IT Services	448,572	6.6	489,767	9.2
Communication services	292,280	3.0	302,705	3.6
Overall IT	1,179,687	6.8	1,281,744	8.7

Source: Gartner (November 2024)

Outlook

The global IT industry remains on a steady growth trajectory in CY 2025, driven by sustained demand for digital transformation across all sectors. Companies continue to invest heavily in data centers, enterprise software and AI solutions to enhance efficiency, agility and innovation. Artificial Intelligence in particular is emerging as a critical enabler of

smarter operations and personalized experiences. As organizations deepen their digital capabilities, technology providers are well-positioned to deliver solutions that drive tangible business outcomes.

Simultaneously, evolving global tax and regulatory requirements are prompting technology companies to modernize internal systems, particularly in areas like ERP and data governance. These changes present

opportunities to strengthen compliance, transparency and operational resilience. By prioritizing trust, reliability and security both internally and in customer solutions, technology firms can not only meet emerging standards but also build stronger stakeholder relationships, helping shape a more responsible and innovative digital future.

Sources: Gartner, Grand View Research, Deloitte Insights

Indian IT Industry

The Indian IT industry has firmly established itself as a global hub for technology and innovation, demonstrated by the growing presence of multinational corporations (MNCs) and global capability centers (GCCs). With over 1,750 GCCs operating in FY 2024, the sector shows increasing specialization in high-value services and product engineering. This technological maturity is reflected in the Indian IT services market, valued at USD 25.59 billion in FY 2024 and projected to more than double to USD 51.05 billion by FY 2030, representing a 12.03% CAGR. This growth trajectory underscores rising global demand for digital transformation solutions, cloud services, cybersecurity, and data analytics. Indian IT providers play a pivotal role in helping global

enterprises streamline operations, reduce costs, and enhance productivity while securing digital assets. The countrys vast talent pool, proven global delivery model, and evolving digital ecosystem continue to reinforce its position as a leader in the global IT services landscape.

Artificial Intelligence and automation are revolutionizing Indias IT services sector by driving operational efficiency, cost optimization, and enhanced personalization. Technologies like machine learning, natural language processing, and robotic process automation (RPA) are being widely deployed to automate routine tasks, improve decision-making, and transform customer experiences through solutions like AI-powered chatbots. RPA implementations are significantly improving back-office operations by reducing errors and accelerating processes. AI is also playing an increasingly critical role in cybersecurity, providing advanced threat detection capabilities and real-time response mechanisms to protect sensitive data. With Indian IT firms making substantial investments in AI research and development, these technologies are poised to deliver greater innovation, productivity gains, and competitive advantages across industry verticals.

India IT Spending Forecast, 2023-2025 (millions of USD)

2023 Spending		2023 Growth (%)	2024 Spending	2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Center Systems	3,818	6.0	4,310	12.9	4,798	11.3
Devices	49,461	1.5	55,907	13.0	63,105	12.9
Software	15,478	11.4	17,904	15.7	20,945	17.0
IT Services	27,630	4.8	30,065	8.8	33,503	11.4
Communications Services	34,019	0.6	35,713	5.0	37,608	5.3
Overall IT	130,406	3.2	143,899	10.3	159,960	11.2

Source: Gartner (November 2024)

Outlook

Indias technology sector is positioned for sustained long-term growth despite near-term challenges including US trade tariffs and macroeconomic uncertainties in key Western markets. The expansion of Engineering R&D services and Global Capability Centers (GCCs) remains a primary growth driver, with Digital Engineering gaining strong momentum across BFSI, Healthcare, and Retail sectors. This segment has

accounted for a significant portion of major deals, reflecting the industrys strategic shift toward high-value services and product innovation. Export revenues now show a more balanced distribution between global multinationals (including GCCs) and Indian service providers, while the continued increase in operational GCCs underscores Indias growing importance as a center for advanced technological capabilities.

Domestically, technology spending has outpaced export growth for two consecutive years, fueled by accelerated adoption of enterprise software, cloud services, and substantial expansion in data center infrastructure. The digital economys contribution to GDP continues to rise significantly, with Digital Public Infrastructure emerging as a powerful catalyst for inclusive growth. E-commerce is demonstrating robust expansion, approaching major milestones in gross merchandise value. AI adoption is progressing rapidly, with most implementations focused on developing scalable solutions, while an increasing number of GenAI pilot projects are transitioning to full-scale production. Nearly all leading technology firms are now embedding AI, Cloud, Data, and GenAI capabilities into their core service offerings, signaling a fundamental transformation in Indias IT landscape.

Sources: Gartner, TechSci Research

Business Overview

ROX Hi-Tech has established itself as a trusted partner for businesses seeking comprehensive IT solutions, with expertise spanning from infrastructure to cutting-edge digital transformation. Over the past two decades, we have built a strong reputation through our commitment to excellence and strategic partnerships with global technology leaders Blue Prism, SAP, CISCO, IBM and Lenovo.

Our recent achievements underscore our growing capabilities and market leadership. We successfully secured a major project to implement Grow with SAP for a leading heavy manufacturer and a composite manufacturer, driving their transformation journey. Additionally, we have secured an impressive ?‚?40 crore order book in digital transformation projects, bringing our total order book to ?‚?150 crore. These projects encompass network and security management, as well as application management, with phased execution set for completion by FY 2025.

ROX Hi-Tech has also expanded its global footprint with the establishment of subsidiaries in Singapore, the USA, Denmark, and Mauritius. These subsidiaries, focusing on areas such as computer hardware wholesale, enterprise software development, and IT consulting, position us to capitalize on international market opportunities and strengthen our global partnerships.

Our commitment to sustainability and industry

leadership is reflected in our recognition as a Founding

Member of the Indian Green Building Council (IGBC) and our membership with the Confederation of Indian Industry (CII). These affiliations highlight our dedication to sustainable development and excellence in the IT sector.

Further enhancing our operational capabilities, we received approval to establish a unit in ELCOT SEZ, Trichy, which will optimize logistics, enhance manufacturing, and facilitate seamless international trade.

At the heart of our success is our people-first approach. We recently granted 5,06,668 stock options under the ROX Employee Stock Option Plan 2024 to reward and retain top talent, ensuring our team remains motivated and aligned with our growth objectives.

ROX Hi-Tech stands out in the competitive IT landscape through our unique positioning as the first partner to secure SAP deals in both public and private clouds, combined with our expertise in IoT and smart infrastructure solutions. Our focus on innovation, security, and seamless integration enables us to deliver tailored solutions that drive digital transformation and sustainable growth for our clients.

As we continue to expand and innovate, ROX Hi-Tech remains committed to empowering businesses with advanced IT solutions that navigate the complexities of the digital age. Our holistic approach, global reach, and unwavering dedication to excellence ensure we deliver unmatched value to our clients, helping them thrive in an ever-evolving technological landscape.

Financial Performance

FY 2025 was a year of steady consolidation for ROX Hi-Tech Limited, marked by consistent growth in revenues and a stable operating performance despite strategic investments in subsidiaries during the second half of the year.

Our total income stood at ?‚?190.14 Cr compared to

?‚? 176.50 Cr in FY 2024, reflecting a modest Y-O-Y growth of 8%. This growth was supported by sustained demand for our technology solutions and the expansion of our client engagements.

EBITDA stood at ?‚?31.82 Cr, maintaining margins of 16.74%, in line with the previous year. Profit after Tax (PAT) stood at ?‚?19.93 Cr, with a PAT margin of 10.48%, demonstrating our ability to deliver consistent profitability while absorbing higher costs from investments in people and operations.

The Companys net worth strengthened to ?‚?110.15 Cr from ?‚?92.52 Cr in FY 2024, further improving its financial resilience. Cash balances also improved significantly, reaching ?‚?27.45 Cr, providing healthy liquidity to support future growth.

Ratio Analysis

In compliance with listing requirements, the key

consolidated financial ratios are provided below:

Risks and concerns

Risk Factors

Our commercial success is fundamentally tied to our capacity for innovation and delivery of specialized IT solutions across diverse industry sectors. The following key risks could materially impact our operations:

Innovation and Competitiveness

Failure to consistently develop proprietary, cutting-edge solutions may result in over-reliance on third-party services, potentially increasing operational costs and eroding our market differentiation.

Client Retention and Market Dynamics

Evolving client requirements, rapid industry shifts, and intensifying competition could adversely affect our ability to maintain and grow our client portfolio, particularly in high-value computing segments.

Talent Acquisition and Compliance

Our success depends on attracting and retaining skilled professionals. Any non-compliance with partner agreements or conflicts of interest involving our Promoter Group entity may jeopardize critical client relationships and strategic alliances.

Government Contracts and Macroeconomic Conditions

Failure to secure government tenders, coupled with rising input costs and unfavourable economic trends in India, could substantially pressure our margins and growth trajectory.

Legal and Regulatory Environment

Unanticipated changes in regulatory frameworks or unfavorable legal rulings may disrupt operations and financial performance.

Proactive management of these risks remains essential to safeguarding our profitability and ensuring sustainable growth.

SWOT Analysis

Strengths

Recognized as a preferred partner by leading global IT equipment suppliers

Direct access to cutting-edge technology and

advanced equipment

Highly skilled and continuously trained professional workforce

Established trust with blue-chip clients, evidenced

by repeat engagements

Rigorous quality assurance protocols across all operations

Uncompromising commitment to data privacy

and information security

Weaknesses

Elevated operational costs due to specialized

manpower requirements

Constant need for workforce upskilling to maintain technical edge

Reliance on core promoter group and key managerial personnel

Opportunities

Growing market demand for modular and reusable IT components

Accelerated digital adoption across sectors in the post-pandemic economy

Government policies promoting nationwide IT infrastructure development

Strategic alignment with Indias Digital

Mission initiatives

Threats

Intensifying competition for top-tier technical talent

Accelerated technology obsolescence cycles

Potential business disruptions from pandemic-related restrictions

Hyper-competitive market landscape with

shrinking differentiators

Human Resource

At ROX Hi-Tech, we recognize that our people are the cornerstone of our success. Our human resource philosophy is built on nurturing talent, fostering innovation, and creating an environment where every team member can thrive. We invest significantly in continuous learning and development programs that equip our employees with cutting-edge technical skills and leadership capabilities, ensuring they remain at the forefront of industry advancements. Our culture emphasizes collaboration, creativity, and mutual respect, where diverse perspectives come together to drive better solutions and business outcomes.

Our workforce strategically blends seasoned professionals with emerging talent, creating an optimal balance that delivers operational stability, sustainable growth, and uncompromising quality standards. The following department-wise employee distribution reflects our organizational structure as of March 31, 2025:

No 1	Division Accounts & Finance	Employees 9
2	Business Development/ Sales	16
3	Operation	2
4	Human Resources &	4

Administration

5 ERP Implementation and Support 47

Technical Services & Network and 33

Security

Management 3

Automation and AI 9

Logistics 5

Purchase 2

FMS 9

Total 139

What sets us apart is our balanced approach to workforce composition - we strategically combine experienced professionals with young talent to maintain both stability and fresh thinking. This blend allows us to preserve institutional knowledge while staying agile in a rapidly evolving technological landscape. Our commitment to employee growth is reflected in our industry-leading retention rates and high engagement scores. We go beyond traditional training by offering mentorship programs, clear career pathways, and opportunities to work on challenging projects that push boundaries.

In the competitive IT services sector, we understand that our human capital is our most valuable asset. Thats why we continue to strengthen our talent acquisition and development strategies, ensuring ROX Hi-Tech remains an employer of choice. Our people dont just support our business goals - they are active participants in shaping our future as we navigate the digital transformation landscape together. Through this comprehensive approach to human resource management, we are building not just a workforce, but a community of technology leaders who drive innovation and deliver exceptional value to our clients.

Internal Control Systems and their Accuracy At ROX Hi-Tech, we have established a comprehensive internal control framework that serves as the foundation

for our operational integrity and financial discipline.

Our systems are carefully designed to comply with the Companies Act 2013 and adhere to the COSO Internal Control - Integrated Framework, ensuring we meet both regulatory requirements and industry best practices. The framework provides reasonable assurance regarding the reliability of financial reporting, effectiveness of operations, and compliance with applicable laws and regulations. We maintain strict controls over financial transactions through a clearly defined delegation of authority that governs approval processes and expenditure limits at all organizational levels. Our periodic review mechanisms ensure that business plans remain aligned with strategic objectives while adapting to changing market conditions. Technology plays a pivotal role in our control environment, with enterprise-wide ERP systems maintaining accurate, real-time records across all business functions. These systems not only safeguard our assets but also enhance decision-making through timely access to management information.

Recognizing that effective controls must evolve with the business, we continuously assess and enhance our processes to address emerging risks and maintain the highest standards of corporate governance. This ongoing commitment to robust internal controls reinforces stakeholder confidence while supporting sustainable business growth in an increasingly complex regulatory landscape.

Key aspects of our control environment include:

Structured financial and operational controls

Clear authorization protocols

Integrated technology solutions

Continuous monitoring and improvement

Our internal control system represents more than just compliance - it is a strategic asset that protects company interests while enabling operational excellence.

Corporate Social Responsibility

During the fiscal year ending March 31, 2025, ROX Hi-Tech demonstrated its strong commitment to social development by fully meeting its CSR obligations with an investment of ?‚? 33,22,791/-The company maintained its exemplary track record of CSR compliance, with no shortfall in the current year or carryover from previous years, reflecting our consistent dedication to social welfare initiatives.

Our CSR programs focused on creating meaningful

impact through targeted interventions:

Inclusive Education: Supporting specialized

learning opportunities for children with disabilities

Empowerment Initiatives: Providingassistivedevices and technologies to enhance independence for individuals with disabilities

Rural Education Development: Strengthening educational infrastructure and access in underserved rural communities

These carefully designed initiatives align with our core values of equity, inclusion, and sustainable development. By addressing critical gaps in education and accessibility, we aim to create lasting positive change in the communities where we operate. ROX Hi-Tech remains committed to going beyond compliance by developing CSR programs that deliver measurable social impact while supporting national development priorities.

Key Highlights of FY 2023-25 CSR Performance:

100% fulfilment of statutory CSR

spending requirements

Zero shortfall carried forward from previous years

Focused interventions in disability inclusion and

rural education

Strategic alignment with national sustainable

development goals

Cautionary Statement

The Companys objectives, projections, outlook, expectations, estimates, and other information expressed in the Management Discussion and Analysis may be considered forward-looking statements under applicable securities laws and regulations. These statements are based on certain assumptions that the Company cannot guarantee. Several circumstances, some of which the Company may not have direct control over, could substantially impact the Companys operations. As a result, actual results may differ materially from such projections, whether expressed or implied, due to factors beyond the Companys ability to successfully implement its growth strategy. The Company assumes no obligation or responsibility to update forward-looking statements or to publicly amend, modify, or revise them to reflect events or circumstances that occur after the date of the statement based on subsequent development, information, or events. The Management of ROX Hi-Tech Limited presents below an analysis of its performance during the year under review, i.e., accounting year ended 31 st March, 2025 (for the period April 1, 2024, to March 31, 2025).