Starcom Information Technology Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS OVERVIEW

Starcom Information Technology Limited, headquartered in Bangalore and listed on BSE, continues to strengthen its position in Master Data Management (MDM), Data Quality, Business Intelligence (BI), Data Analytics, and Computer-Aided Engineering (CAE). With enterprises worldwide accelerating digital transformation, demand for trusted, real-time, cloud-native and AI-driven solutions is growing rapidly.

The Company is building on its legacy while aspiring to become a leading global, IP-driven solution provider. We continue to attract top talent, expand customer engagements, and develop long-term partnerships.

Mission

Our mission is to help organizations unlock the power of their data with trust, speed, and scale. Through platforms such as Star360, StarDQ, and StarBI, Starcom enables enterprises to:

• Integrate data across cloud, big data, and traditional systems in real time.

• Create a unified, 360? view of customers and business operations.

• Leverage analytics, AI/ML, and automation for improved sales, service, compliance, and decision-making.

Data volumes continue to grow exponentially, cloud data warehouses and AI technologies are becoming mainstream, and organizations are shifting to self-service, real-time, and hybrid data environments. Starcom products address these transformations by offering agile, scalable, and cost- efficient solutions.

Products

Customer 360 Platform

• Interactive, self-service platform unifying customer data from silos (CRM, BI, digital apps, call centers, bots, mobile).

• Embedded StarDQ ensures cleansing, enrichment, and de-duplication.

• Creates a single source of truth and a comprehensive 360? view of the customer.

• Features include data sourcing, standardization, de-duplication, reconciliation, dashboards, alerts, and real-time monitoring.

Data Quality Engine

• Automated enterprise-grade engine for data cleansing, de-duplication, clustering, and enrichment.

• Processes millions of records daily in hours instead of days or months.

• Supports batch and real-time workflows, with online verification for golden records.

• Includes a Data Steward Module for handling exceptions and manual enrichment when needed.

Self-Service Business Intelligence

• Empowers business users with intelligent BI, predictive analytics, and visual dashboards.

• Connects to multiple data sources; reports and alerts can be created in just a few clicks.

• Enables KPI tracking, trend analysis, and better decision-making without heavy IT dependency.

Finite Element Analysis Suite

• One of the worlds most comprehensive and established CAE / FEA software suites.

• Fully integrated pre/post-processing environment with advanced GUI and CAD interoperability.

• Addresses industries including aerospace, automotive, energy, oil & gas, marine, biomedical, sports, electronics, and civil-structural.

• Flagship modules: NISA Mechanical, NISA Civil, NISA Design Studio.

• Positioned for global growth as the FEA market expands across advanced engineering applications.

Defense

Starcom is a registered MSME vendor to DRDO and has successfully executed over 100 projects across more than 20 DRDO laboratories.

Key contributions include:

• Long Range Surface-to-Air Missile (LRSAM)

• Astra Beyond Visual Range Missile (BVRM)

• Airborne Early Warning & Control System (AEW&CS)

• Rustom-II UAV

• Tejas Advanced Light Combat Aircraft

Defense and aerospace remain strategic growth sectors under "Make in India". With India targeting USD 25 billion in defense production by 2025 (including USD 5 billion exports), we see significant opportunities ahead, limited only by execution capacity.

Academic Tools:

Driving Excellence in Teaching & Learning

At Starcom, we are committed to elevating the teaching and learning experience. We achieve this by providing world-class laboratory infrastructure and equipping both faculty and students with the latest Embedded & Analog Development tools, technologies, and methodologies

Comprehensive Solutions & Support

Our extensive portfolio includes product sales, dedicated support, and expert consultancy. We also run faculty development programs and student initiatives across various engineering disciplines, including ECE, EEE, TCE, CSE, Instrumentation, and Medical Electronics

Empowering Hands-On Learning

Our Embedded and Analog solutions enable users to observe the practical behavior of systems, grasp fundamental concepts, conduct lab experiments, develop custom projects, and become proficient in modern electronic system design.

Advanced Tool Suite for Innovation

We provide a wide range of cutting-edge tools covering DSP Development, Embedded Systems, Analog Circuits, and Integrated Communication technologies, fostering a complete and innovative learning environment

Opportunities & Threats

• Enterprises adopting AI, ML, IoT, and big data analytics at scale.

• Accelerated migration to cloud and hybrid platforms for agility and cost-efficiency.

• Expanding global demand for CAE/FEA solutions.

• Rising need for real-time, self-service analytics across industries.

• Competitive threats from agile new entrants in cloud data and analytics.

Marketing

Our marketing initiatives focus on:

• Increasing awareness of Starcom solutions globally.

• Building the MDM, BI, and CAE community.

• Driving demand via SEO, digital campaigns, webinars, whitepapers, and trials.

• Supporting sales with research insights, lead generation, and product positioning.

• Free trials and thought-leadership content continue to be strong drivers of customer engagement and adoption.

Sales

• Dual approach through direct sales teams and global channel partners.

• E-commerce self-service model for StarBI and trial editions of our software.

• Land-and-expand sales model: initial deployments scale across departments and geographies.

• Dedicated Customer Success team ensures smooth deployments, renewals, and expansion opportunities.

Our Strategy

Starcoms strategy combines sustainable growth with global relevance, focusing on both renewal and innovation.

Key drivers of our growth strategy:

• Maintain technology leadership through continuous innovation.

• Expand and diversify our customer base.

• Grow our ecosystem of cloud and technology partners.

• Scale globally with SaaS and subscription-based models.

Competition

The marketplace is rapidly evolving with both global majors and niche startups competing in MDM, BI, and CAE.

Starcom differentiates through:

• Comprehensive end-to-end solutions.

• Ability to scale across industries and geographies.

• Proven delivery track record in enterprise and defense sectors.

• Talented professionals and strong customer relationships.

1. Segment-wise Performance:

The segment-wise performance of the Company during the year is given below:

Particulars	Year ended 31st March 2025 (Amt in Lacs)
A. Segment Revenue
1. Test, Measurement & Embedded Solutions for Educational Sector	247.84
2. Data Quality, Statistical & Analytics Software	49.51
Total Revenue	297.35
B. Segment Results
1. Test, Measurement & Embedded Solutions for Educational Sector	(30.29)
2. Data Quality, Statistical & Analytics Software	12.88
Total	(17.41)
Less: Finance Charges	40.61
Unallowable Expenditure	441.64
Add: Exceptional Item
Total Profit Before Tax	(499.65)
Less: Tax Expenditure	-
Total Profit After Tax	(499.65)
C. Capital Employed
1.Test, Measurement & Embedded Solutions for Educational Sector	123.19
2. Data Quality, Statistical & Analytics Software	2,733.37
3.Unallocated	68.61
Total Capital Employed	2,925.17

2. Outlook:

In order to meet the changing market realities, our Company has been following the philosophy of providing the highest quality products and solutions at the lowest possible prices.

All endeavors are made to achieve possible cost reduction in every area of operations.

Our Companys philosophy is to provide high class quality products i.e. full value for money to consumers; this would greatly benefit in the long run.

Our Company believes in building and maintaining deep customer relationships and become a trusted business partner to global enterprises.

3. Risks and concerns:

The Company has been initiating various risk management programs to combat strategic, operational and financial as well as compliance-related risks across various levels of the organization. It includes risk assessment and mitigation at the company level, business / functional unit level, relationship level and project level. The risk management process is continuously improved and adapted to the changing global risk scenario. The agility of the risk management process is monitored and reviewed for appropriateness with the changing risk landscape. The process of continuous evaluation of risks includes taking stock of the risk landscape on an event driven as well as quarterly basis.

4. Internal Control systems and their adequacy:

The Company maintains adequate internal control system, which provides, among other things, reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against significant misuse or loss of Companys assets.

The Company has an adequate system of internal controls implemented for achieving efficiency in operations, optimum utilization of resources with analysis of data to strengthen it to meet the changing requirements. However, the Company is taking the necessary steps to improvise the documentation with respect to the specific policies and procedures and the IT Controls pertaining to internal financial controls over financial reporting.

5. Discussion on financial performance with respect to operational performance: Financial performance:

Particulars	2024-25 (Amount in Rs.)	2023-24 (Amount in Rs.)	Change (%)
Revenue from operations (1)	297.35	179.82	65.35
Other income (2)	33.14	2.01	1548.75
Sub-total (1+2)	330.49	181.83	81.75
Total Expenditure	830.14	818.94	1.36
Profit/(Loss) before Tax	(499.65)	(637.11)	(21.57)
Profit/ (Loss) after Tax	(499.65)	(768.6)	(34.99)

There has been increase of in the revenues of the Company as compared to the previous year by (65.35%). The total expenses got marginally increased by 1.36% from Rs.830.14 Lakhs in the previous year to Rs.818.94 Lakhs in the current year. However, the other income of the Company has increased by (1548.75%). During the current financial year, the Company has recorded Loss after tax of Rs. (499.65) Lakhs as compared to the Loss after tax of Rs. (768.6) Lakhs in the previous year. The Company is expected to earn profits in the coming years.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Details of significant changes in key financial ratios are given as under:

Sl No. Particulars	2024-25	2023-24	Variation (%)
i. Debtors Turnover	1.06	0.44	140.09
ii. Inventory Turnover	18.47	22.39	(17.5)
iii. Current Ratio	0.08	0.07	14.28
iv. Debt Equity Ratio	(0.66)	(1.13)	(41.49)
v. Operating Profit Margin	(125.51)	(296.89)	13.40
vi. Net Profit Margin	(1.68)	(3.54)	(64.68)
vii. Return on Net worth	(99.91)	(127.4)	(13.53)

Reason for change in 25% or more in key financial ratios as compared to the immediately previous financial year:

i. Debtors Turnover Ratio: During the year under review, the Debtors Turnover ratio increased mainly due to increase in collections and maintaining credit policies.

ii. Debt Equity Ratio: Sharp decrease on account of increase in borrowing & decrease in Loss

iii. Net Profit Margin: The reduction in margin is due to decline in sales and provision for expected credit loss

6. Material developments in Human Resources/ Industrial Relations front:

In any services enterprise, employees form the core of an organization. We recognize the vitality of this stakeholder. A significant portion of our management focus is invested in engaging with our employees and improvement of services to the clients satisfaction.

During the year the Company has not reported any Management-Employee conflict. The Company is committed to create an appropriate climate, opportunities and systems to facilitate identification, development and utilization of employees full potential on a continuous basis.

Number of employees:

There were 32 (including KMP) permanent employees on the rolls of the Company as on 31st March 2025.

Cautionary Statement:

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on, whether express or implied. Several factors could make a significant difference to the Companys operations. These include economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

Place: Bengaluru	For and on behalf of the Board of Directors
Date: 03.09.2025	Starcom Information Technology Limited
	Ziaulla Sheriff
	Chairman and Managing Director
	DIN:00002098