Variman Global Enterprises Ltd Management Discussions

Annexure – 6

Industry structure and developments

Global and Indian IT Industry Overview

According to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, the worldwide traditional PC market (desktops, notebooks, and workstations) grew by 3.8% YoY in 2024, reaching 14.4 million units shipped. Notebooks and desktops grew by 4.5% and 1.8% respectively, while workstations recorded the highest growth at 10.9%. The Personal Computing Devices (PCD) market, including PCs and tablets, grew 4.8% in 2024, with global shipments hitting 407.6 million units. IDC forecasts global PC shipments to reach 274 million in 2025, representing a 4.1% YoY increase.

In India, the traditional PC market grew by 2.6% YoY in Q1 2024, shipping 3.07 million units. For the full year, India recorded total shipments of 14.4 million units, driven by strong consumer demand and enterprise procurements:

• Consumer segment grew by 2.6% YoY in 2024, supported by eTailer sales up 21.7% YoY for the year and 29% YoY in Q4.

• Commercial segment grew 5.1% YoY in FY 2024 and 11.1% YoY in Q4, driven by enterprise refresh cycles and government tenders.

• Government and enterprise shipments each grew 10.6% YoY in 2024 due to procurement through GeM (Government e-Marketplace).

The Asia-Pacific PC market (excluding Japan) declined 1.9% in 2024 to 95.5 million units, but IDC expects a rebound in 2025 with projected growth of 4.1%, led by replacement demand and institutional spending.

A major driver of growth has been AI-powered PCs, which IDC highlights as a transformative trend. Next-generation AI PCs are equipped with Neural Processing Units (NPUs) capable of 40+ TOPS, enabling advanced on-device intelligence. Microsofts Copilot+ PCs initiative, alongside Intel Core Ultra and AMD Ryzen AI processors, is reshaping consumer and enterprise computing demand.

Top 5 Global & Indian PC Vendors (2024)

• HP Inc. retained leadership with a 30.1% share, with government and enterprise shipments growing 14.7% and 14.3% YoY, but consumer shipments fell 7.5%.

• Lenovo secured second place with 17.2% share, up 7.3% YoY on strong eTailer and enterprise performance.

• Dell Technologies ranked third at 16.1% share with 8.1% YoY growth, driven by SMB and enterprise refresh demand.

• Acer Group held fourth with 15.1% share and the highest growth at 27.7%, supported by aggressive pricing and strong eTailer expansion.

• Asus stood fifth with 7.0% share, recording a 7.8% YoY decline due to inventory adjustments but achieved 18.4% YoY growth in the commercial segment.

Premium notebook shipments (>USD 1,000) grew 13.8% YoY in 2024, while gaming notebook demand recorded double-digit growth, fuelled by AI-ready processors and consumer interest in high-performance systems. IDC also highlights the rise of DSPM (Data Security Posture Management) as a key cybersecurity category, focused on securing sensitive enterprise data across hybrid environments.

IDC Outlook for 2025

IDC projects worldwide PC shipments to reach 274 million units in 2025, up 4.1% YoY. Indias PC market is expected to see low single-digit growth, driven by replacement demand, enterprise refresh cycles, and continued government procurement. However, pricing pressures and macroeconomic uncertainties could moderate growth.

Opportunities and Threats:

Variman Global Enterprises Limited continues to leverage its diversified business portfolio, spanning IT infrastructure solutions, hardware distribution, retail, software development, and FMCG, to strengthen its market presence, particularly in Telangana. The growing demand for digital transformation and the companys strong distribution network present significant opportunities for future expansion and revenue growth, while challenges such as low profitability, modest returns on capital, intense competition from larger players, and earnings volatility remain. Strategic focus on improving margins, expanding geographically, and enhancing operational efficiencies will be critical for sustaining long-term growth and creating value for stakeholders.

Variman Global Enterprises Limited Performance

Segment–wise or product-wise performance

Variman Global Enterprises Limited (VGEL), a leading IT infrastructure solutions provider in Telangana, reported total revenue of ?108.62 crore in FY 2024–25 compared to ?113.33 crore in FY 2023–24, representing a decline of

4.1% YoY. Net profit after minority interest stood at ?0.61 crore, down from ?1.13 crore in the previous year. Despite pressures on profitability, the company remains focused on expanding its footprint across Andhra Pradesh, Maharashtra, and Tamil Nadu, while aggressively targeting government, defence, and PSU digital transformation contracts.

Outlook

Management remains cautiously optimistic for FY 2025–26, expecting revenue growth supported by government IT spending, enterprise refresh orders, and stronger traction in managed services

Risks and concerns

Key risks include heightened market competition, rapid technology changes, reliance on non-operating income, supply chain vulnerabilities, cybersecurity threats, and regulatory compliance requirements. The company continues to implement robust risk mitigation strategies.

Internal control systems and their adequacy

The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

Discussion on financial performance with respect to operational performance

The Management Discussion and Analysis given below relates to the Audited Financial Statements of Variman Global Enterprises Limited. The discussion should be read in conjunction with the financial statements and related notes for the year ended 31st March 2025.

Material developments in Human Resources / Industrial Relations front, including number of people employed

There are no material developments in the Human Resources area. The Industrial relations have been considered to be satisfactory. The Company constantly reviews the manpower requirements and effective steps are being taken to meet the requirements.

Your company follows a strategy of attracting and retaining the best talent and keep employees engaged, motivated and innovative. The company continues to have cordial relations with its employees and provide personnel development opportunities for all round exposure to them.

FINANCIAL RATIOS:

STANDALONE

Particulars	2024-25	2023-24	Remarks
Debtors Turnover Ratio	4.35	4.07	Slight improvement in collections
Inventory Turnover Ratio	7.84	7.89	Optimized inventory levels
Interest Coverage Ratio	1.26	1.45	Better cost controls
Current Ratio	2.54	2.43	Slight dip due to higher liabilities
Debt-Equity Ratio	0.65	0.82	Increased borrowings
Operating Profit Margin (%)	0.04	0.04	Minor margin decline
Net Profit Margin (%)	0.01	0.01	Decline due to higher costs
Return on Net Worth	0.01	0.02	Slight drop due to reduced profits

CONSOLIDATED

Particulars	2024-25	2023-24	Remarks
Debtors Turnover Ratio	4.72	5.25	Slight decline in collections
Inventory Turnover Ratio	6.03	7.28	Lower turnover YoY
Interest Coverage Ratio	1.26	1.51	Higher finance costs
Current Ratio	2.53	2.27	Marginal drop
Debt-Equity Ratio	0.99	1.20	Slight increase in leverage
Operating Profit Margin (%)	0.04	0.04	Margins under pressure
Net Profit Margin (%)	0.01	0.01	Decline due to lower earnings
Return on Net Worth	0.02	0.04	Lower profits reduced returns

Disclosure of Accounting Treatment:

The Company has complied all the requirements of accounting standards applicable to the Company and during the year company has not changed any accounting policies.

NOTE:

Readers are advised to kindly note that the above discussion contains statements about risks, concerns, opportunities, etc., which are valid only at the time of making the statements. A variety of factors known/unknown expected or otherwise may influence the financial results. We do not expect these statements to be updated or revised to take care of any changes in the underlying presumptions.

Readers may therefore appreciate the context in which these statements are made before making use of the same.

Cautionary Statement/Disclaimer Clause:

We cannot guarantee that the forward-looking statements made in Management Discussion and Analysis will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information.

	For and on behalf of the Board
	Variman Global Enterprises Limited
	Sd/-	Sd/-
	D. Sirish	Raja Pantham
Place: Hyderabad	Managing Director	Whole Time Director
Date: 13.08.2025	(DIN: 01999844)	& CFO
		DIN: 07547750