In this Management Discussion and Analysis Report, the Directors present a detailed overview of the companys performance, accomplishments, and future prospects for the nancial year ended 31st March, 2025. The report is intended to o er stakeholders valuable insights into the companys opera ons, key nancial indicators, risk management strategies, opportuni es, challenges, and overall outlook.
A. INDUSTRY STRUCTURE AND DEVELOPMENTS
The global economy in 2024 operated within a mul faceted and uncertain geopoli cal environment, shaped by enduring con icts such as the India-Pakistan tensions and escala ng trade fric ons arising from renewed U.S. tari policies. Despite these macroeconomic headwinds, the global economy displayed measured resilience. According to IMF es mates, global GDP grew by approximately 3.2% in 2024, improving modestly from 2.8% in 2023. This recovery was fueled largely by strong performances in emerging markets and a surprisingly robust 2.8% GDP growth in the United States. Conversely, the Eurozone lagged, with GDP growth limited to 1.3%, impacted by dampened consumer sen ment and persistent energy-related in a onary pressures. In response to these vola le condi ons, corpora ons worldwide recalibrated their strategies pivo ng from aggressive expansion towards enhancing opera onal resilience, digital maturity, and cost e ciency. This strategic realignment was clearly re ected in global IT spending, which reached approximately USD 5.44 trillion in 2024, represen ng an 8.3% year-on-year increase (Source: Gartner). This surge underscores the cri cal importance of digital transforma on, automa on, and cloud adop on in building future-ready enterprises. The global IT services industry has seen accelerated momentum in areas such as Ar cial Intelligence (AI), Cloud Compung, Cybersecurity, and Enterprise Automaon. Cloud services alone accounted for over USD 675 billion in spending, while AI investments exceeded USD 200 billion, emphasizing the enterprise-wide push for intelligent and scalable digital ecosystems.
COMPANY OUTLOOK SILVER TOUCH TECHNOLOGIES LIMITED
Against the backdrop of rapid technological advancement and global economic transforma on, Silver Touch Technologies Limited (STTL) has further solidi ed its posi on as a dependable and future-ready digital transforma on partner. With a legacy spanning over two decades, STTL consistently delivers comprehensive, end-to-end IT solu ons, seamlessly integra ng Ar cial Intelligence (AI), Business Intelligence, Cloud Compu ng, Cybersecurity, Big Data, and Process Automa on into client ecosystems.
In an era where resilience and adaptability de ne long-term success, STTL remains commied to leveraging technology as a catalyst for stability, e ciency, and transforma ve growth across markets. There is a new wave of dynamism in technologies. The industry is feeling the pressure to build AI strategies and stay ahead. We saw genera ve AI star ng to reshape the industry in scal 2024-25. We con nued to witness businesses a emp ng to reimagine their cost structures, increase business resilience and agility, personalize experiences for customers and employees, and launch new and disrup ve products and services, aided by genera ve AI. With our leadership posi on in AI, we believe we are well-posi oned to take advantage of these market opportuni es.
Silver Touch Technologies Limited (STTL), with over two decades of exper se, has been at the forefront of digital innova on, playing an integral role in transforming businesses globally. Headquartered in Ahmedabad, India, and with a presence in the USA, UK, and Canada, STTL o ers a comprehensive suite of IT solu ons, including enterprise so ware services, digital transforma on, ERP soluons, e-governance services, managed security services, and cloud solu ons. The companys commitment to excellence is re ected in its CMMi Level 5 cer ca on and a dedicated team of over 1,400 IT professionals serving more than 2,000 clients worldwide.
Industry Trends and STTLs Strategic Response
1. Digital Transforma on and Automa on: The accelera ng adop on of digital transforma on has led to increased demand for automa on solu ons. STTLs o erings in Robo c Process Automa on (RPA), Ar cial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT) posi on the company as a leader in this domain. Their RPA services, for instance, have enabled industries to achieve produc vity gains of up to 80% by automa ng manual processes.
2. Cloud Compu ng and ERP Solu ons: As businesses migrate to cloud environments, STTLs exper se in SAP Business One, SAP S/4 HANA, and Odoo ERP solu ons facilitates seamless transi ons. The companys end-to-end ERP consul ng services, encompassing licensing, implementa on, customiza on, support, and hos ng, ensure op mized business processes for clients across various industries.
3. E-Governance Ini a ves: STTLs involvement in e-governance projects underscores its commitment to enhancing public sector services. The companys solu ons, including G2C, G2B, and G2G portals, single-window solu ons, and AI-powered assessments, have been instrumental in digi zing government services and improving ci zen engagement.
4. Cybersecurity and Managed Services: With the increasing frequency of cyber threats, STTLs managed security services, such as SOC-as-a-Service, VAPT, and iden ty and access management, provide robust protec on for businesses. These services are complemented by 24/7 support and monitoring, ensuring the security and integrity of client opera ons. In todays fast-paced technological environment, STTL is dedicated to delivering forward-thinking, customer-focused solu ons. By staying a uned to emerging industry trends and capitalizing on its deep domain exper se, the company consistently enables both businesses and public sector organiza ons to drive digital transforma on and pursue sustainable, long-term growth.
B. SNAPSHOT OF BUSINESS SEGMENTS
Enterprise Soware Services
Applica on development Digital engineering Cloud solu ons
Digital Transforma on
Ar cial Intelligence (AI) Data analy cs Blockchain & IoT Robo c Process Automa on (RPA)
ERP Solu ons
SAP Business One & S/4 HANA Odoo ERP
ERP consul ng, implementa on, and support
E-Governance Services
Government portals (G2C, G2B, G2G) Dashboards and single-window pla orms AI-based public service solu ons
Managed Security Services
SOC-as-a-Service
Cloud & endpoint security VAPT and iden ty/access management
Modern Workplace Solu ons
IT infrastructure & consulng Communica on & collabora on tools
Cloud Services
Public, private, and hybrid cloud Cloud monitoring & virtual desktops Silver Cloud and AWS integra on
C. OPPORTUNITIES AND THREATS
Major Opportuni es for the Company are as follows:
1. Expansion into New Geographies
2. Adop on of Emerging Technologies
3. Rise of IT Automa on Across Sectors
4. Long experience of the promoters in the industry;
5. Strong Leadership and Industry Experience
6. Comprehensive End-to-End IT Solu ons
7. We follow the Quality standards (CMMI Maturity Level 5 Cer ca on) which are followed by leading IT companies.
8. Client-Centric and Flexible Delivery Models
9. Diverse Industry Experience
Major Threats/ Challenges for the Company are as follows:
1. High Dependency on Evolving Technologies
2. Complexity in Technology Integra on
3. Talent Retenon and Skill Shortages
4. Intensi ed Market Compe on
5. Rising Cybersecurity Threats
6. Business Disrup on from Global Uncertain es
7. Regulatory and Compliance Challenges
D. SEGMENT WISE PERFORMANCE
The Geographical Segment wise standalone and consolidated nancial performance of the Company during the Year is as follows:
E. OUTLOOK, RISKS AND CONCERNS
This sec on outlines forward-looking statements that involve risks and uncertain es. Actual results may di er materially from those an cipated due to various factors:
1. Impact of Outsourcing Restric ons
Global Policy Shis : Countries are increasingly implemen ng protec onist policies that restrict outsourcing of IT services to foreign en es. For instance, recent moves by nancial ins tu ons to reduce reliance on external contractors in regions like China highlight the growing trend of reshoring technology opera ons. Implica ons for Indian IT Firms: Such policies could adversely a ect Indian IT companies that rely heavily on interna onal outsourcing contracts, poten ally leading to reduced revenue streams and necessita ng strategic realignments.
2. Talent Acquisi on and Reten on Challenges
High Demand for Skilled Professionals: The IT industry faces intense compe on for skilled professionals, par cularly in emerging technologies such as AI, ML, and cybersecurity. This demand o en leads to increased a ri on rates and challenges in maintaining a stable workforce. Impact on Opera ons: Di culty in a rac ng and retaining top talent can result in project delays, increased recruitment costs, and poten al compromises in service quality, a ecng overall business performance.
3. Cybersecurity Threats
Sophis cated Cyber A acks: The rise of AI-powered cyber threats, including deepfakes and advanced phishing schemes, poses signi cant risks to organiza onal security. These threats are becoming more challenging to detect and migate. Regulatory Pressures: Governments worldwide are ghtening cybersecurity regula ons. For example, the EUs Cyber Resilience Act mandates stringent security requirements for digital products, impac ng companies compliance obliga ons. Resource Constraints: A global shortage of cybersecurity professionals exacerbates the challenge of defending against these evolving threats, leaving organiza ons vulnerable to poten al breaches.
4. Exchange Rate Vola lity
Fluctua ng Currency Values: Exchange rate uctua ons can signi cantly impact the pro tability of interna onal contracts, especially those denominated in foreign currencies. Financial Implica ons: Adverse currency movements can lead to reduced margins on overseas projects and complicate nancial planning and forecasng.
5. Market Dynamics and Compe ve Pressures
Changing Consumer Preferences: Rapid shis in market trends and consumer demands can a ect the relevance of exis ng service o erings, requiring connuous innova on and adapta on. Intensi ed Compe on: The prolifera on of both established players and new entrants in the IT sector increases compeve pressures, poten ally leading to price wars and margin compression.
6. Regulatory and Compliance Challenges
Evolving Legal Landscapes: Frequent changes in government regula ons, including data protec on laws and industry-speci c compliance requirements, can create opera onal complexi es.
Compliance Costs: Adap ng to new regula ons oen necessitates signi cant investments in legal resources, system upgrades, and sta training, impac ng the companys bo om line.
7. Taxa on Policies
Impact on Pro tability: Changes in taxa on policies, such as increased corporate tax rates or the introduc on of digital services taxes, can erode pro t margins. Opera onal Adjustments: To mi gate tax-related impacts, the company may need to restructure opera ons, adjust pricing strategies, or relocate certain business func ons, leading to poten al disrup ons.
F. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established a strong and well-structured system of internal controls to ensure the orderly and e cient conduct of its operaons. These controls are designed to safeguard assets, maintain the integrity of nancial data, and ensure compliance with applicable laws and regula ons. An Internal Financial Control Policy is in place to protect sensi ve nancial and opera onal informaon from unauthorized access or disclosure. The Company has implemented a con nuous monitoring mechanism that allows mely detec on and correc on of any devia ons or irregulari es. Through regular internal audits, reviews by the Audit Commiee, and proac ve risk assessments, the Company con nuously strengthens its control environment, ensuring resilience and accountability across all levels of the organiza on.
G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFORMANCE:
Financial Performance FY 2024-25 Comparison: Year-on-Year There is signi cant improvement in the nancial performance of the company compared to last year. The total turnover of the company in current nancial year is increased by 29 % i.e. from Rs. 20,925.03 lakh to Rs. 26,968.44 lakh. The Net pro t a er Tax of the company is also increased signi cantly by 43% from Rs. 1,582.74 lakh to Rs. 2,268.82 lakh. Whereas Pro t before tax is increased by almost 43 % from Rs. 2,129.14 lakh to Rs. 3,041.47 lakh.
H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL
RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:
Human resource management plays a pivotal role in nurturing a skilled, mo vated, and collaborave workforce an essen al asset for any IT company. In a dynamic and knowledge-driven industry, each employees contribu on signi cantly in uences innovaon, client sasfac on, and business success. Our HR strategy is centered around a racng, developing, and retaining top technology talent. We focus on recrui ng professionals who not only have the technical exper se and industry experience but also align with our organiza onal values and culture. By o ering compe ve compensaon, a exible work environment, and clear career advancement opportuni es, we aim to foster high job sa sfac on and long-term engagement. Employee learning and development are core to our HR philosophy. We provide con nuous access to technical training, upskilling in emerging technologies (such as AI, cloud, and cybersecurity), and leadership development programs to keep our workforce future-ready. Regular performance reviews and construc ve feedback sessions help align individual goals with business objec ves and uncover paths for professional growth. To support a posi ve and e cient workplace, we ensure full compliance with employment laws and implement robust systems for managing payroll, bene ts, and HR administraon. We also encourage a collabora ve, inclusive, and innova on-driven culture, where knowledge-sharing and teamwork are ac vely promoted. By invesng in our people, we aim to build a resilient, high-performing team that drives digital transformaon for our clients and sustains the companys long-term growth. The Company also have 50 appren ce trainees for its various departments during the year to provide them the technical training. As at March 31, 2025 there were total 764 Nos. of employees on the role of the Company.
I. DISCLOSURE OF ACCOUNTING TREATMENT:
The Company has prepared its nancial statements in accordance with the prescribed Accoun ng Standards.
J. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR
MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:
During the year under review, there were signi cant changes in key nancial ra os as provided under Current Ra o by 36.13 % due to mainly on account of higher short-term borrowings and other current obliga ons. Although current assets have also increased, the rise in current liabili es has been propor onately higher, resul ng in a reduced current ra o.
Debt Equity Ra o by 235 % due to a rise in borrowings to meet the funding requirements for business expansion and opera onal working capital. The shareholders equity remained rela vely constant, leading to a sharp increase in the ra o.
Debt Service Coverage Ra o by 93.58 % due to increase in Interest and Principle repayment during the year under review. While opera ng pro ts have improved, the higher repayment obliga ons resul ng from new borrowings have led to decline in the Debt service coverage capacity.
Trade payable ra o by 68.29 % due to higher net credit purchases during the year, coupled with a reduc on in average trade payables. This indicates faster payment cycles and improved management of supplier obliga ons.
Net capital turnover ra o by 25.81 % due to signi cant rise in revenue from opera ons, while the average working capital remained rela vely stable. This indicates improved e ciency in u lizing working capital to generate revenue and re ects be er opera onal performance and capital management.
Cau onary statement
Statements in this Management Discussion and Analysis describing the Companys objec ves, projec ons, es mates and expecta ons may be ‘forward looking within the meaning of applicable laws and regula ons. Actual results may di er from those expressed or implied. Important factors that could make a di erence to the Companys opera ons include global economy, poli cal stability, stock performance on stock markets, changes in government regula ons, tax regimes, economic developments and other incidental factors. Except as required by law, the Company does not undertake to update any forward-looking statements to re ect future events or circumstances. Investors are advised to exercise due care and cau on while interpre ng these statements.
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