The management discussion and analysis present the Industry Structure and Development, opportunities and threats, Human Resources Management, Financial Ratios, initiatives by the Company, and overall strategy for becoming a market-driven Service Provider with a range of offerings. The company is committed to delivering cutting-edge solutions that drive business growth, empower businesses with tailored solutions, driving digital transformation and unlocking growth through innovative technology and an unwavering commitment to client success.
Our strategic objective is to build a sustainable organization that remains relevant to the agenda of our clients, while creating growth opportunities for our employees, generating profitable growth for our investors and contributing to the communities that we operate in. There are numerous risks and challenges affecting our business. These are discussed in the Risk Management Report section of the Integrated Annual Report.
A. INDUSTRY STRUCTURE AND DEVELOPMENT
Global Economic Overview
In FY 2024-25, the global economy faced slower growth, trade tensions, and geopolitical uncertainties, with GDP growth moderating to 2.5-3.0% (from 3.2% in 2024). Advanced economies struggled at 1-2% growth due to tight financial conditions and volatile energy markets, while emerging markets like India (5.8%) and China (4.5%) anchored output despite tariff hikes and supply chain disruptions. Inflation eased from 5.8% to 4.0-4.4% but remained vulnerable to geopolitical shocks. Conflicts in Ukraine and the Middle East strained global trade and energy markets, further weighing on stability.
Amid these challenges, IT spending remained resilient, expected to surpass USD 5.5 trillion in 2025, with 9-10% growth in services driven by digital transformation and AI adoption. For our organization, strategic agility, diversification, and operational efficiency helped mitigate volatile costs and shifting demand. Focused innovation, financial discipline, and leveraging technology positioned us to capitalize on emerging opportunities despite uncertainty.
Indian Economic overview
India sustained strong growth of 6.5% in FY 2024-25 (vs. 7.2% in FY 2023-24), backed by robust domestic demand, reforms, and favourable monsoons. Inflation moderated to 4.5-5.0%, aided by RBIs monetary measures and government interventions. Reforms under Aatmanirbhar Bharat, Make in India, and PLI schemes drove investments in electronics, pharma, and renewables, while advances in 5G and digital payments reinforced Indias position in digital innovation.
The Strong demand for cloud, AI, and cybersecurity boosted competitiveness. For our organization, agile strategy — service diversification, tech investments, and strengthened client partnerships—enabled us to align with Indias growth momentum while mitigating risks from global headwinds.
IT Industry Outlook & Overview
In FY 2024-25, Indias IT industry grew to IT industry, a pillar of resilience, recorded revenue growth of 5.1%, reaching USD 282.6 billion from USD 268.8 billion in the previous year. Export revenues grew 4.6% to USD 224.4 billion, while domestic revenue grew by 7% to nearly USD 58.2 billion. Despite global uncertainties, demand in BFSI, telecom, and healthcare fueled growth, while Indias IT workforce rose to 5.8 million with 126,000 new jobs. Key growth drivers included AI/GenAI adoption, cloud-native solutions, cybersecurity, and expansion of Global Capability Centres (1,600+). NASSCOMs CXO survey reflected optimism, with 77% of providers expecting stronger growth and 82% of CXOs foreseeing increased digital spending.S
Global IT spending is projected at USD 5.5 trillion in 2025, with software and services leading growth. India maintained strong profitability, lower attrition, and high trust with large tech deals. For our organization, investments in Generative AI, Cloud, and Web3, alongside talent development and innovation in software and ER&D, strengthened our competitive edge. A balanced approach to tech investments and risk management will support sustained growth and leadership.
B. COMPANY OVERVIEW
Systango is a publicly listed digital engineering firm specialising in crafting innovative software solutions and exceptional digital experiences. With over 19 years of leadership in software development and digital transformation, we combine agile methodologies, scalability, and a boutique-style approach to deliver high-quality projects on time.
Our expertise spans across Web3 (Blockchain), AI, Data Engineering, Cloud Computing, and Web2 (Software and Mobile consultancy and development). We empower businesses to design, develop, and manage customised digital platforms, leveraging advanced data analytics to drive informed decision-making and measurable business outcomes.
We believe in building Tomorrows innovations today.
C. FINANCIAL OVERVIEW
Financial and operational performance
Standalone Performance: During the year under review, your company reported a good rise in revenue from operations amounting to an amount of Rs. 6,132.96 Lakhs as compared to an amount of Rs. 5,267.90 Lakhs earned in the previous Financial Year.
The Company has recorded PBT of Rs. 2,831.94 lakhs as compared to Rs. 2,027.12 lakhs earned in the previous financial year and Profit after tax (PAT) of Rs. 2,320.33 Lakhs as compared to a profit of Rs. 1,624.19 Lakhs earned during the previous financial year.
Consolidated Performance: During the year under review your company reported a good rise in revenue from operations amounting to an amount of Rs. 6,714.44 Lakhs as compared to an amount of Rs. 5,657.21 Lakhs earned in the previous Financial Year.
The Company has recorded PBT of Rs. 2,909.51 lakhs as compared to Rs. 2106.52 lakhs earned in the previous financial year and Profit after tax (PAT) of Rs. 2,373.10 Lakhs as compared to a profit of Rs. 1,691.93 Lakhs earned during the previous financial year.
The Financial performance of the Company for the Financial Year 2024-25 is described in detail in the Directors Report under the head Financial Summary/performance of the Company.
D. FINANCIAL RATIOS
Standalone Basis
S. No. |
Particulars | As of 31st March | As of 31st March 2025 | % 2024 | of compared preceding year | changes to | Remarks Variation >25% | (Mandatory | if | ||
1. |
Debt Equity Ratio | - | - | - | NA | ||||||
2. |
Current Ratio | 10.79 | 10.30 | 9.79 | NA | ||||||
3. |
Trade Receivable Turnover Ratio | 4.90 | 7.81 | (37.32) | Due to increase in Revenue from Operations during the | ||||||
| year, preceding and receivables during the year | in financial increase | comparison year in | to Trade | ||||||||
4. |
Net Turnover Ratio | Capital | 0.76 | 0.77 | (1.40) | NA | |||||
5. |
Net Profit Ratio | 37.83% | 30.83% | 22.71% | NA |
Consolidated Basis
Particulars |
As of 31st March 2025 | As of 31st March 2024 | % of changes compared to preceding year |
Remarks (Mandatory if Variation >25% |
1. Debt Equity Ratio |
0.00030 | 0.00118 | (74.26) |
Due to decrease in total debts and increase in total equity |
2. Current Ratio |
9.24 | 10.48 | (11.83%) |
NA |
3. Trade Receivable |
5.12 | 6.58 | (22.07) |
NA |
Turnover Ratio |
||||
4. Net Capital |
0.81 | 0.79 | 2.06% |
NA |
Turnover Ratio |
||||
Net Profit Ratio |
35.34% | 29.92% | 18.13% |
NA |
E. RISK AND CONCERNS
This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors.
F. RISK MANAGEMENT
The Board continues to provide the guidance to the company in terms of ascertaining the risk factors as applicable to the companys business and providing the direction to assess and mitigate the same. The company periodically assesses the risks involved in the business and reports to the Board for them to take necessary steps in mitigating them.
G. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company acknowledges the necessity of a robust internal control framework, given its global presence and significant network of associates. The Companys internal control systems are tailored to its size and scope of operations, aiming to ensure reliable financial and operational information, compliance with laws, asset protection, proper transaction execution, and policy adherence. A clearly defined plan governs the delegation of authority for revenue and expenditure approvals for the Company.
The Companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented by the internal auditors on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively.
In FY 2024-25, the Indian IT industry employed 5.8 million professionals amid global uncertainties. Our HR strategy emphasized upskilling in AI, GenAI, and cybersecurity through cross-training, while enhancing employee experience with engagement and wellness initiatives. In line with NASSCOMs 2025 survey indicating rising demand for specialized skills, we focused on building adaptability and resilience.
We strengthened diversity, equity, and inclusion (DEI) through gender-neutral POSH policies and an active Internal Complaints Committee, ensuring a safe and inclusive workplace. Flexible hybrid work models balanced employee needs with business goals, supporting productivity. These initiatives in talent development, DEI, and safety reinforced competitiveness and positioned us for sustained growth in FY 2025-26.
I. FUTURE PROSPECTS OF COMPANY:
Looking forward, Systango will continue to seek out new and improved ways of efficiently delivering the services that our clientele needs. We have formulated a sound corporate vision and long-term management plan while ensuring that we have constantly evolving management and business structures to respond quickly to the market needs & globalization. We strive to create new avenues for adding more value for the "stakeholders" being investors, business partners, employees, consumers, and communities as well.
J. DISCLOSURE OF ACCOUNTING TREATMENT:
The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.
K. CAUTIONARY STATEMENT
This management discussion and analysis contain forward-looking statements that reflect your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forward-looking statements as a result of many factors. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and not to regard such statements to be a guarantee of our future performance.
Yours faithfully, |
|
For and on behalf of the Board of Directors of |
|
Systango Technologies Limited |
|
Vinita Rathi |
Nilesh Rathi |
Managing Director and |
Executive Director and |
Chief Executive Officer |
Chief Financial Officer |
DIN: 00427239 |
DIN: 00430725 |
Place: Indore |
|
Date: 4th September, 2025 |
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