Universus Photo Imagings Ltd Management Discussions

1. COMPANY OVERVIEW

The Company officially became a public limited entity in November, 2011. As a demerger of Photo Films business of Jindal Poly Films Limited into the company, resulting in the establishment of Universus Photo Imagings Ltd. This transition, effective from April 1st, 2019, also included the integration of Photographic products and related ventures under Universus Photo Imagings Ltd. Prior to this period, the Company was not engaged in any manufacturing or business activities.

Presently, the Company operates a cutting-edge manufacturing facility for X-Ray Films and other assorted products situated in Dadra (UT-Dadra and Nagar Haveli).

2. GLOBAL ECONOMY

The global economy in 2024-25 has been characterized by a complex interplay of persistent challenges and emerging opportunities. Many advanced economies, especially in the West, have faced high inflationary pressures. In response, central banks increased interest rates to control inflation, resulting in higher borrowing costs that affected consumer spending and investment growth. Global growth rates have been uneven, with the United States experiencing moderate expansion, while some emerging markets in Asia maintained more robust growth. Europe continued to grapple with challenges stemming from high energy prices and geopolitical tensions. The ongoing conflict between Russia and Ukraine has exerted significant economic pressure worldwide, influencing energy markets and heightening global uncertainty. Technological innovation and digital transformation remain key drivers of economic change. Advances in artificial intelligence, green energy, and other emerging technologies are reshaping industries and creating new economic opportunities. Sustainability and climate action have gained increased attention, with governments and businesses ramping up investments in renewable energy and green technologies, expected to be integral to future economic growth.

Labor markets worldwide are experiencing shortages and skills mismatches, alongside shifting worker preferences such as the rise of remote work, reshaping workforce dynamics. High levels of public and private debt in numerous countries pose ongoing concerns, requiring careful management to balance fiscal sustainability with growth objectives.

Overall, global economic growth is projected around 3.0% for 2025, reflecting a slight moderation from previous years but underscoring resilience amid uncertainty. Inflation is expected to decline gradually globally, although in some regions like the U.S., inflation pressures may remain above targets for longer. The external environment remains clouded by geopolitical tensions, trade policy uncertainties, and financial market volatility, making the economic outlook complex with region-specific variations in performance and risk.

3. INDIAN ECONOMY

Indias economy in the fiscal year 2024-25 has demonstrated robust growth and resilience amidst global uncertainties. The real GDP growth is estimated at around 6.4% to 6.5%, making India one of the fastest-growing major economies globally, although this marks a moderation from the previous years higher growth of 9.2%. This steady pace reflects strong domestic demand, increased investment activity, and continued government spending, particularly in infrastructure development. Inflation has remained a concern but has been relatively moderated compared to many other economies. The Reserve Bank of India (RBI) has played a crucial role in managing monetary policy by adjusting interest rates to maintain a balance between supporting growth and containing inflationary pressures. The governments heavy investments under initiatives such as the National Infrastructure Pipeline continue to drive economic momentum, enhancing connectivity and boosting manufacturing and services sectors. The manufacturing sector shows signs of recovery, supported by schemes like the Production Linked Incentive (PLI), while the services sector, including IT and business process outsourcing, remains a significant contributor to GDP. Indias export growth has faced some headwinds due to global economic uncertainties and changing trade dynamics. Efforts to diversify export markets and strengthen key sectors like pharmaceuticals, electronics, and digital services are ongoing, reinforcing long-term export resilience. The labor market is recovering with job creation across multiple sectors, though challenges remain in skill development and youth employment. Rapid digital transformation continues to be a hallmark of Indias economic landscape, with innovations in fintech, e-commerce, and digital services poised to propel future growth. Government policies fostering a digital economy and innovation ecosystem are key enablers of this progress.

Despite global challenges such as the Russia-Ukraine conflict and commodity price volatility, India is positioned to enter a phase of sustained growth driven by increased private investments, manufacturing expansion, and the effective leveraging of its services sector advantages. Improvements in ease of doing business and logistics infrastructure further support Indias aspiration to become a major global manufacturing hub.

Overall, while Indias growth in 2024-25 shows a slight moderation from prior peaks, the fundamentals of the Indian economy remain strong, with a positive outlook shaped by balanced policy responses and strategic investments across sectors.

4. INDUSTRY OVERVIEW

The radiology field in India is growing, India is witnessing rapid growth in both the healthcare and medical radiology industries. Numerous hospitals, nursing homes, medical laboratories, and diagnostic centers are being set up to meet the healthcare needs of the growing Indian population.

The market size of wet films is still 15 lakh to 20 lakh sq.mt per annum and has stabilized now. But there is still some market left for the analog business as we see that analog machines are still being sold from some local manufacturers in tier 3 and 4 cities, even many state governments are still floating tenders of this film. Apart from this, we are also exploring business in some foreign countries like in Africa and are constantly trying to expand this market.

We are also trying to venture in other field of healthcare industry except Radiology.

5. BUSINESS OVERVIEW AND OPERATIONAL CAPACITY

The Company is engaged in the manufacturing, conversion, distribution, and sale of X-Ray films and NTR (Non-Tearable) films in both matte and glossy finishes. NTR films, known for their durability and high-quality finish, find extensive applications across various segments including photo albums, certificates, playing cards, gift cards, visiting cards, calendars, menu cards, wedding invitations, and modeling portfolios.

The Company procures Jumbo Rolls of X-Ray films and undertakes slitting and packaging operations at its dedicated unit located in Dadra. This facility has an installed monthly capacity of approximately 300,000 square meters, enabling the Company to efficiently meet diverse size requirements across its customer base.

Market Dynamics and Strategic Outlook

With the advent and widespread adoption of digital technology, there has been a marked decline in the demand for traditional X-Ray films. This global trend has posed significant challenges to companies operating in this segment, including ours. The contraction in the X-Ray film market has created an imperative for the Company to diversify its product portfolio to remain competitive and sustain long-term growth.

Recognizing this shift, the Company is actively working on the development and introduction of new product lines aimed at expanding its market presence and catering to evolving customer needs. The strategic focus is on leveraging existing manufacturing capabilities and technical expertise to innovate and diversify into high-growth segments within the film and media solutions industry.

This proactive approach to product innovation and market adaptation is expected to mitigate the risks associated with the declining X-Ray film business and position the Company for future growth in niche and value-added applications.

Analog Radiology – Resilient & Relevant

Reliable & Accessible: Analog X-ray machines and films remain the most widely used diagnostic tools in semi-urban and rural India, as well as in select international markets.

Cost-Effective: For smaller clinics and nursing homes, analog continues to be the most affordable way to deliver essential healthcare.

Simple & Durable: Film-based imaging does not rely on complex IT systems, electricity back-ups, or costly upgrades. It ensures consistent results, even in resource-constrained environments.

6. FINANCIAL PERFORMANCE

The following are the key financial highlights for the period ended 31st March 2025.

(In Rs Lakhs.)

Particulars	2024-2025		2023-2024
	Standalone	Consolidated	Standalone	Consolidated
Total Income	6,682.79	7,685.91	7,033.60	7,033.60
Profit from Operations (before Depreciation, Exceptional Items and Tax)	4047.70	4047.70	4048.63	4048.63
Exceptional Items +/(-)	-	-	-	-
Share of Net Profit/(Loss) of associate	-	5526.98	-	(22,723.57)
Profit before tax	4,034.41	9561.38	4,026.68	(18,696.89)
Profit after tax for the year	3,174.52	8701.50	3,088.77	(19,634.80)

7. CHANGES IN KEY FINANCIAL RATIOS

The details of changes in key financial ratios as compared to previous Financial Year are stated below:

Sr. No.	Particulars	2024-25	2023-24	Change %
1	Debtors Turnover	14.87%	17.84%	-16.66%
2	Inventory Turnover Ratio (in times)	2.78	2.45	13.86%
3	Current Ratio (in times)	180.59	374.93	-51.83%
4	Debt Equity Ratio (in times)	NA	NA	NA
5	Interest Coverage Ratio	NA	NA	NA
6	Net Profit Ratio	129.07%	95.19%	35.58%
7	Operating Profit Margin	164.56	124.77	31.89%
	(Profit before Depreciation and Tax) (%)
8	Return on Capital Employed (in %)	6.07%	6.39%	-4.95%

# Increase in profit due to fair valuation gain on Financial assets.

8. RISKS AND CONCERNS

Presently the Company is engaged in the business of manufacturing, selling & distributing X-Ray films and due to shrinking business of X-Ray Films Business and increase in digitalization, it may be difficult for the Company to sustain in market unless new products will be launched in the future. In addition to above said, the Company has identified following categories of risks associated with the business: political, social, and economic risks, market risk, technology selection risk, capital structuring risk, exchange and interest rate risk, credit risk, liquidity risk, foreign currency risk, and commodity price risk. The Management evaluates these risks prior to making decisions in these areas.

9. OPPORTUNITIES AND THREATS

Opportunities

The company stands to benefit significantly from Indias rapidly evolving healthcare landscape. Embracing technological advancements, such as digital health platforms and AI-driven diagnostics, positions the company to stay competitive and improve service delivery. The resumption of OPD services and growing awareness of health insurance are expected to drive increased patient volumes and revenue stability.

Continued investments in modern medical technologies ensure high-quality care and operational efficiency. Indias MedTech sector, currently valued at $14 billion and expected to reach $30 billion by 2030, is rapidly emerging as a global force. Ranked 4th in Asia and among the top 20 worldwide, India has surpassed $4 billion in medical device exports, driven by innovation, cost-effective manufacturing, and government initiatives like Make in India and Aatmanirbhar Bharat. Key growth enablers include a large domestic healthcare market, skilled workforce, strong R&D, medical tourism, improved infrastructure, and increasing foreign investments. However, there is a crucial need to boost domestic production of capital equipment like CT and MRI machines to reduce import reliance.

We are also contributing to this vision, equipped with strong facilities, there is immense scope for expansion. Additionally, a thriving ecosystem of over 4,000 health-tech startups and supportive government initiatives create further opportunities for strategic growth and innovation.

THREATS

Occurrences such as the Russia-Ukraine conflict and evolving regulatory changes introduce market uncertainties and pose challenges in maintaining compliance.

The swift shifts in consumer preferences, economic circumstances, and global trade dynamics necessitate a capacity for adaptability to ensure sustained growth.

Covid pandemic has created havoc on business, need to explore different technology to grow.

10. SEGMENT PERFORMANCE

The Company has one business segment namely photographic product which recorded revenue of Rs. 2459.60 lacs and Profit after tax of Rs. 3174.52 lacs in F. Y. 2025.

11. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The company is having sufficient industry professionals to carry out its operations and follows good management practices. These are basically its human resources assets and integral to the Companys ongoing success. They have played a significant role and enabled the Company to deliver superior performance. The total number of employees in the Company stands at 42.

11. INDUSTRIAL RELATIONS

During the year under review, harmonious industrial relations were maintained in your Company.

12. INTERNAL CONTROL SYSTEM

The company has a proper and adequate system of internal controls and that all assets are safe guarded and protected against loss from unauthorized use or disposition, and all the transactions are authorised, recorded and reported correctly. Management continuously reviews the internal control systems and procedures to ensure orderly efficient conduct of business. The review included adherence to the management policies and safeguarding the assets of the company.

The company ensure that adequate systems are in place for an effective internal control. The audit findings are reported on a quarterly basis to the Audit committee of the Board headed by a non-executive independent Director.

13. SUSTAINABILITY INITIATIVES AND CORPORATE SOCIAL RESPONSIBILITY

Our company places a strong emphasis on environmental responsibility by implementing sustainable practices throughout our operations. This includes energy conservation, waste reduction, and water management strategies. We also engage with local communities through social development programs focusing on education, healthcare, and environmental awareness. This commitment to sustainability creates lasting value for stakeholders and contributes to a greener, more socially responsible future.

14. RESEARCH AND DEVELOPMENT

Research and development (R&D) play a crucial role in our companys growth and innovation. We have a dedicated R&D team that continuously explores new technologies, materials, and processes to enhance our product offerings. Our R&D initiatives focus on improving product quality, developing new applications, products to address emerging market trends. Through collaboration with industry experts, academic institutions, and customers, we stay at the forefront of technological advancements. By investing in R&D, we aim to meet evolving customer needs, drive product innovation, and maintain our competitive advantage in the market.

15. CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be a forward looking statement within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.