Vinsys IT Services India Ltd Management Discussions

Economy Overview Global Economy¹

CY 2024 marked a year of resilience for the global economy. It expanded by 3.3% despite persistent structural and geopolitical headwinds. This momentum was largely fuelled by Emerging Market and Developing Economies (EMDEs), which posted a strong 4.3% expansion, while advanced economies grew at a moderate pace of 1.8%. This divergence reinforces the importance of emerging markets as engines of global growth. The US economy expanded by 2.8% on the back of steady consumer spending, strong labour market fundamentals and real income growth. In contrast, economic conditions in Europe were tempered by tight monetary settings and prevailing macroeconomic challenges. The economy of China benefitted from government-led investments, yet the property market continued to weigh on overall growth momentum. In terms of market exchange rates, world output was estimated at $110.5 trillion, while in Purchasing Power Parity (PPP) terms, it reached $196.1 trillion, reflecting sustained economic resilience.

Headline inflation worldwide eased to 5.7% in CY 2024. In emerging and developing economies, inflation averaged 5.5%, suggesting early progress towards price stabilisation. Despite policy-induced headwinds, most notably US tariff hikes on key imports aimed at strengthening domestic industries and addressing trade imbalances, global trade volumes rose during the year. While these measures created some uncertainty in global trade, major economies adapted well, contributing to overall economic stability and moderate economic progress.

Outlook

Global economic growth is projected to moderate to 2.8% in CY 2025, with a slight improvement to 3.0% in CY 2026, reflecting cautious optimism amid ongoing global adjustments. Emerging Market and Developing Economies (EDMEs) are expected to remain the primary drivers of growth, with forecasts of 3.7% in CY 2025 and 3.9% in CY 2026, supported by resilient domestic demand and investment momentum. In contrast, advanced economies are likely to experience slower growth, with projections of 1.4% and 1.5% in the same period, as they continue to navigate the effects of tight monetary policies and shifting trade dynamics.

Inflationary pressures are anticipated to continue easing, with global inflation declining to 4.3% in CY 2025 and further to 3.6% in CY 2026, aided by stabilising commodity prices and improved supply chain conditions. Advanced economies are forecasted to record lower inflation levels compared to emerging markets.

While geopolitical uncertainties pose risks, government investments, fiscal discipline and improving market confidence will support economic stability and promote a more balanced and resilient global growth trajectory.

Indian Economy²

In FY 2025, the economy of India recorded a growth of 6.5%. This steady expansion was supported by resilient domestic demand, favourable agriculture conditions following an above-average monsoon, a resurgence in the manufacturing industries and sustained expansion of the services sector. Government expenditure on infrastructure and healthy financial position of banks and companies also contributed to the economic growth. Retail inflation in India declined to 4.6% in FY 2025, marking the third consecutive year of decline. The Reserve Bank of Indias prudent monetary policies and various government interventions to establish price stability and reduce inflation also contributed to the overall momentum.

VIN5Y5*Outlook

Indias real GDP growth for FY 2026 is projected at 6.5%, with a slight improvement to 6.7% in FY 2027, contingent on a normal monsoon and absence of major disruptions. Growth will be supported by steady rural demand, strengthening urban consumption and rising investment activity. Financing conditions are expected to remain favourable, aided by high- capacity utilisation, the robust financial health of the banking sector and sustained government spending on infrastructure. Inflation is anticipated to remain stable at around 4.0% in FY 2026, aligning with the RBIs target. Moderating crude oil prices, balanced demand-supply dynamics and supportive policy measures are likely to keep inflationary pressures under control.

GDP growth (%)

P - Projected Source: RBI Bulletin

Industry Overview Global IT Industry

The global Information Technology (IT) industry is witnessing a notable transformation, propelled predominantly by the expedited adoption of Artificial Intelligence (AI). This transition has resulted in significant capital inflows into data centres and AI-specific hardware and software solutions, with projections indicating that the market could reach $990 billion by CY 2027³. Such accelerated growth is expected to exert pressure on supply chains, potentially precipitating shortages in semiconductors and other critical components. Additionally, the industry is undergoing a strategic shift towards vertical integration as companies develop domain- specific language models to handle specialised computing tasks. Collectively, these developments are reshaping the global technology landscape, creating new hubs and altering the competitive dynamics across the sector.

Global IT expenditure is projected to register a robust 9.8% growth in CY 2025⁴, facilitated by heightened investments in cloud computing, artificial intelligence and cyber security. Organisations are expediting digital transformation efforts to enhance operational efficiency and improved customer engagement. While the growth trajectory remains promising, headwinds, such as talent shortages and macroeconomic uncertainties may impact the rate of technology adoption. Overall, the industry is set for meaningful expansion, with next-generation technologies playing a crucial role in shaping future business strategies.

Indian IT Industry

In FY 2025, India strengthened its position as a global technology and innovation hub, exhibiting resilience in amid of geopolitical and macroeconomic uncertainties. The industry is estimated to generate $283 billion in revenue, marking a 5.1% year-on-year (y-o-y) growth, with exports crossing $200 billion and domestic technology spending approaching $60 billion. Net hiring expanded by 126,000, bringing the total workforce to 5.80 million. Key growth drivers include the strong demand from the US market and the BFSI sector, alongside emerging opportunities in APAC, Telecom, Retail and Healthcare. AI-led IT service expansion, cloud- native solutions, cyber security and deep-tech innovations are some of the key themes that are shaping the sector. Concurrently, ER&D and Global Capability Centres (GCCs) are emerging as crucial pillars of growth.⁵

The Indian IT industry is poised for sustained growth, with revenue expected to grow by 4-6% in USD terms for FY 2026⁶, building on the gradual recovery seen in recent quarters. Despite persistent macroeconomic headwinds, including potential US trade tariffs and policy shifts, the industry remains resilient, supported by strong deal pipelines and heightened digital transformation. Attrition has moderated to a healthy 12-13%⁷ and cost optimisation efforts are helping sustain operating profit margins at 22.5-23.0%⁸. A notable catalyst of growth is the rapid adoption of Generative AI (GenAI), with BFSI and healthcare sectors leading AI-driven investments. As IT companies broaden their GenAI capabilities, the industry is poised to unlock new opportunities, setting the stage for longterm expansion and innovation.

Growth Drivers⁹

Increased IT Spending - Companies across sectors are planning to augment their IT budgets to expedite their digital transformation plans and utilise technology to drive efficiency, reduce costs and improve overall performance.

Artificial Intelligence (AI) Investments - The rapid rise of AI, particularly in emerging domains such as Generative AI, is encouraging substantial investments in AI-related hardware such as advanced chips, as well as in the infrastructure needed to run these systems. This trend is foreseen to considerably boost revenue generation in the semi-conductor industry in the years ahead.

Emerging Technologies - Advancement in areas, such as cloud computing, cyber security and data analytics are creating new avenues of growth for tech companies. These innovations are enabling the development more powerful, secure and intelligent solutions that help businesses stay competitive and meet modern demands.

Digital Transformation - Organisations are increasingly integrating digital tools, software and platforms not only to streamline operations but also to offer a better experience to their customers. This shift is spurring demand for a diverse range of technology products and services.

Global Economic Recovery - As global economies continue to recover from recent slowdowns, investment in technology is gaining momentum. Companies see technology as a key driver for improving growth, staying competitive and adapting to a fast-changing business environment.

Source: Fortune Business Insights Report

The global Business Process Management (BPM) industry, valued at an estimated $17.78 billion in 2024, is envisioned to grow rapidly to $70.93 billion by 2032, reflecting a strong CAGR of 18.6%. BPM refers to tools and software that enable enterprises to analyse, monitor and optimise business processes, thereby enhancing operational efficiency and achieving strategic objectives. Major players, such as IBM, Oracle, Software AG, Red Hat and Tibco are offering platforms that increasingly use AI and machine learning for better compliance, security and automation. The adoption of BPM solutions is on the rise as businesses seek greater agility, higher productivity, improved sales outcomes and enhanced customer experiences.

Indian BPM Industry

The Indian Business Process Management (BPM) industry, forming an integral part of the larger Information Technology and BPM (IT & BPM) sector, remains a crucial contributor to the nations digital transformation and economic progress. Supported by a vast pool of skilled talent and a strong ecosystem of educational and training institutions, the sector is further bolstered by government initiatives that promote digital literacy, infrastructure development and favourable policies conducive to growth. The sector thrives on advancements in cutting-edge technologies, such as artificial intelligence, cloud computing and blockchain, which fuel innovation and enable the creation of sophisticated and competitive solutions.

Indias IT & BPM sector commands significant strength on the back of a large technology workforce of 5.43 million professionals, with 2 million digitally skilled and a cost advantage relative to other global cities through lower costs for labour, living and commercial space. This affordability, combined with robust domestic demand, drives continual industry growth. This is evident in the annual revenue of $54 billion in FY 2024 with a 5.4% growth rate. The countrys vibrant startup ecosystem is also notable, ranking third globally with 114 unicorns and the engineering R&D segment growing at 7.8% annually, underscoring the sectors innovation prowess.

India is increasingly positioning itself as a global technology hub, attracting investments, promoting collaboration and nurturing talent. The IT & BPM sector, therefore, not only supports digital inclusion and socio-economic progress domestically but is also set to shape the future of the worldwide digital economy. Initiatives such as support for data centre projects highlight the industrys ongoing momentum and commitment to infrastructure development. Overall, the Indian BPM industry is a dynamic, innovative and strategically important sector underpinning the nations digital future and economic competitiveness.

Growth Drivers

Adoption of Emerging Technologies: The heightened integration of automation, Artificial Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), cloud computing, blockchain, big data analytics and Internet of Things (IoT) within BPM services is significantly enhancing efficiency, accuracy and scalability, thereby driving growth.

Digital Transformation Initiatives: Both private sector investments and government programmes, such as Digital India, Skill India, Startup India and Make in India are fuelling the demand for BPM services by propelling the shift to digital tools and platforms across industries.

Large Skilled Talent Pool: Indias extensive and digitally skilled workforce, supported by a network of educational and training ecosystems, enables delivery of sophisticated BPM services to a global clientele, cementing the countrys position as a BPM hub.

Cost Advantage: The nations favourable cost structure spanning in labour, living and commercial spaces, relative to other global cities, offers a compelling value proposition to international clients seeking high-value BPM services at optimised costs.

Rising Domestic and Global Demand: Growing adoption of BPM services, both internationally and within India is broadening the market footprint. The industry is transitioning beyond traditional outsourcing to offer outcome-based pricing, micro-vertical specialisation and strategic partnerships. This approach is delivering greater value to the clients.

Government Policy and Infrastructure Support: Supportive policy frameworks, infrastructure development, digital literacy programmes and investment incentives continue to create a conducive environment for BPM industry expansion.

Innovation and Startup Ecosystem: Indias expansive startup ecosystem, coupled with rising investments in engineering research and development are creating an environment of sustained innovation for BPM services.

The global staffing agency software market, valued at $578.3 million in 2024, is projected to more than double to $1,244.5 million by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 10.1%. North America leads this market, accounting for 43.3% of global share in 2024. This category of software helps staffing firms manage the entire recruitment cycle, encompassing sourcing, recruiting and tracking candidates for various employment formats, such as temp-to-hire, contract and long-term roles. The softwares adaptability and scalability are critical attributes, which are driving market growth by improving candidate tracking and process efficiency. In addition, market expansion is being fuelled by increasing demand from small and medium-sized enterprises with rise of technological advancements and digitisation, especially in emerging countries. An example of market innovation is Bullhorn Ventures, which launched in early 2022 with a $20 million investment to support startups that enhance staffing and recruiting firms operational efficiency and growth prospects. Together, these factors contribute to the robust expansion of the staffing agency software market globally.

The Indian staffing services market recorded a healthy 17.9% year-on-year growth in the second quarter of 2025, reflecting sustained demand for flexible staffing solutions. Members of the Indian Staffing Federation (ISF) contributed significantly to this momentum, creating a net addition of 2.35 lakh jobs over the past four quarters. General staffing registered an even stronger expansion of 18.4% YoY. This performance can be attributed to multiple sectors expanding their workforce. Notably, the IT staffing segment, which had previously faced challenges, returned to growth with 5.4% YoY and 4.1% Quarter-on-Quarter (QoQ) in Q2 2025. Overall, the industry grew by 5.9% QoQ, largely fuelled by augmented hiring in the general staffing across various sectors.

The market continues to benefit from robust hiring intentions, driven by business expansions, digital transformation and a growing emphasis on upskilling. Large organisations remain at the forefront of workforce expansion, with technology, industrial and financial sectors sustaining strong momentum. Despite prevailing global uncertainties, the Indian staffing sector remains a critical contributor to the growth of formal employment. This highlights both the rising demand for flexible workforce solutions and the steady formalisation of the nations labour market.

In summary, the Indian staffing services market is on a strong growth trajectory, driven by vibrant activity in general staffing and a recovering IT staffing segment. This growth is fuelled by favourable business conditions and the evolving demand for workforce flexibility and specialised skills.

Growth Drivers

Increasing Demand for Specialised Talent - Businesses are increasingly seeking professionals with niche expertise for short-term projects or emerging domains. Staffing firms bridge this gap by providing swift access to specialised professionals on flexible terms.

Expansion of Flexible Workforce Models - Organisations are moving beyond conventional hiring, adopting hybrid and contingent workforce models to respond promptly to market changes. Staffing agencies enable this flexibility by supplying temporary, freelance and contract workers as required.

Integration of Advanced Recruitment Technologies -

Tools like AI-driven talent sourcing, automated candidate engagement and predictive hiring analytics are transforming how staffing firms identify and place candidates efficiently and effectively.

Emphasis on Building Diverse Teams - Diversity and inclusion are gaining prominence as drivers for innovation and organisational culture. Staffing firms that excel in reaching diverse candidate pools and use fair recruitment processes are securing a competitive advantage.

Positive Economic Conditions Spurring Hiring - As the

nations economy grows and sectors expand, companies are preferring staffing solutions for scalable workforce management, mitigating the risks of permanent hiring during periods of uncertainty.

Company Overview

Vinsys IT Services India Limited specialises in providing comprehensive IT solutions and training services. The Company focuses on smart technology strategies, custom software development and IT consulting to help businesses adopt new technologies, improve operations and grow efficiently. Vinsys offers a wide spectrum of training options including live virtual classes, online and in-house courses, eLearning and self-paced formats. With upwards of 1,000 expert instructors and more than 400 certification courses across various domains, the Company has trained over a million professionals and served 4,000+ corporate clients.

Additionally, Vinsys provides advanced digital learning tools, such as interactive videos, gamified courses and multilingual support through sophisticated learning management platforms. The Company also offers professional language services like document translation, interpretation, transcription and subtitling in over 200 languages, serving more than 1,000 satisfied clients globally.

Beyond training, Vinsys supports organisations with workforce planning, human resource services, recruitment, compliance and payroll management, enabling businesses to manage talent acquisition and staffing requirements with agility and precision. Overall, Vinsys combines technology, education and HR services to empower companies to accelerate digital transformation while strengthening workforce capabilities.

Business Verticals IT Services and Consulting

Vinsys offers end-to-end IT solutions such as software development, product conceptualisation and IT consulting. The Company focuses on creating custom software, managing technology projects and helping companies adopt new technologies to improve its operations and boost growth.

Training and Certification

The Company delivers professional training in multiple formats like live virtual, online, in-person and self-paced courses. With over 400 certification courses, its vast network of industry experts and state-of-the-art labs have trained a million professionals and worked with thousands of businesses globally.

Digital Learning and eLearning Solutions

Vinsys provides digital learning assets like eLearning modules, interactive content and custom learning platforms. Its offerings include a library of over 100,000 ready-to- use courses, gamified training, immersive simulations and multilingual options, making learning engaging and accessible to all kinds of learners.

Language Services

Vinsys is a major language service provider, specialising in translation, localisation, interpretation, transcription, voiceover and subtitling for technical, medical and legal documents. Supporting over 200 languages and engaging native experts, it ensures high-quality, timely and cost- effective language solutions for clients around the world.

HR and Recruitment Services

Vinsys also assists organisations in workforce planning and staffing. The Company provides recruitment services, compliance support, payroll management and helps attract and hire the right talent on time. Its expertise covers various sourcing strategies and workforce solutions, helping businesses streamline talent acquisition efficiently.

Core Competencies

2+ Decades of Experience	1,000+ Subject Matter Experts	100+ Software Projects executed	100,000+ Titles in OTS Course library	1,500+ e-Learning Projects
4,000+ Corporates across Continents	1 Million+ Professionals Trained	5,000+ Course Offerings	50 Million+ Words Translated	150+ Languages Supported

Extensive Experience and Industry Reach

With over two decades of experience, Vinsys has firmly established itself as a trusted partner to more than 4,000 corporates across continents. The Companys longevity and wide network have enabled it to deeply understand and address the evolving needs of organisations globally, making Vinsys a reliable choice for clients seeking proven expertise.

Expertise from a Large Pool of Subject Matter Experts

Vinsys stands out with a team of more than 1,000 subject matter experts, ensuring that each client benefits from up- to-date industry knowledge and real-world insights. This vast pool of expertise guarantees tailored solutions and high- quality services across multiple domains.

Vast and Evolving Course Portfolio

The Company offers over 5,000 courses, with 100,000+ titles in its Off-the-Shelf (OTS) course library and more than 1,500 e-learning projects completed. This ensures clients have access to a comprehensive and modern learning resource base, catering to a wide range of professional development and upskilling needs.

Proven Success in Training and Professional Development

Vinsys has successfully trained more than 1 million professionals worldwide, preparing them with critical skills across IT, business and specialised sectors. The Companys flexible delivery models (virtual, in-person, self-paced) ensure accessibility and engagement for all types of learners.

Robust Software and Project Execution Capabilities

Having executed over 100 software projects, Vinsys demonstrates i ts strength in delivering custom IT development, enterprise solutions and digital transformation services. This practical project experience supports its consulting and training verticals with real-world application and results.

Language Services at a Global Scale

A key strength of Vinsys is its capability in language services: over 50 million words translated and support for more than 150 languages. From translation and localisation to interpretation, it helps organisations operate effectively across borders and cultures.

Opportunities and Threats

Opportunities

Key Areas	Analysis and Insights
Emerging Technologies	Growing demand for upskilled professionals is opening avenues to expand AI, ML, cybersecurity and blockchain-focused training.
Micro-learning and Blended Learning	Emphasis on soft skills and flexible, targeted upskilling solutions aligns with dynamic workforce requirements.
Global Expansion	Localised training and partnerships in emerging economies can drive market expansion and improve brand presence.
Digital Transformation	Adopting innovative Learning Management Systems (LMS), VR/AR and data-driven quality controls enables personalised experiences.
Trusted Partner	Delivering reliable, high-quality digital solutions enhances client trust and supports technological advancement objectives.
Market Impact	Leadership in impactful training solutions cements reputation on the global stage and provides competitive advantage.

Threats

Key Areas	Analysis and Insights
Rise of EdTech Startups	Heightened competition from agile, cost-effective online learning platforms threatens market share and learner acquisition.
Established e-learning Companies	Well-established global players pose significant competition, potentially limiting growth and customer reach.
Keeping Pace with Evolving Skills	Rapid technology advancements (e.g., AI) necessitate sustained curriculum updates to maintain relevance and competitiveness.
Market Fluctuations	Economic downturns or evolving regulations can reduce corporate training budgets and hinder certification demand.
Cybersecurity Concerns	Ensuring data security and learner trust requires robust online platform protections and compliance with quality standards.
Shifting Learner Preferences	Adapting to more diverse, tech-savvy learners demands continuous evaluation and modification of training approaches.

Financial Performance

(Rs. In Crores)

Particulars	FY 2025	FY 2024	YoY growth (%)
Total Revenue	211.7	170.5	24.15%
EBITDA	39.6	28.9	37.02%
PAT	30.1	22.9	31.44%
ROCE (in %)	24.5%	22.1%	239 bps
Debtors turnover (in times)	3.58	5.10	29.80
Interest coverage ratio (in times)	19.00	12.63	(50.44)
Current ratio (in times)	3.50	4.23	(17.38)
Debt to equity ratio (in times)	0.15	0.18	(17.32)
Operating profit margin (in %)	18.71	16.97	10.25
Net profit margin (in %)	14.19	13.44	5.59
Return on net worth (in %)	22.92	22.68	(100)
Growth Strategy
Strategic Priority What Vinsys Will Do		Purpose / Benefit

 

/fPr\ Geographic Expansion	Enter new markets in Southeast Asia, Africa and Oceania; strengthen presence in GCC, US and Europe	Reach more customers and increase global footprint
Digital Learning Scale-Up	Invest in AI and VR modules for DigiLearn platform; grow SaaS and online learning for businesses and governments	Provide advanced and flexible digital learning solutions
Enterprise & Government Contracts	Use certifications and IPO funds to win bigger, longer contracts in BFSI, Telecom and Public Sector	Secure steady income and grow business with large clients
“ t * Service Diversification	Add more staffing, language services and training options	Meet diverse needs of clients with tech-enabled solutions
(?) Margin Sustainability	Focus on valuable digital products, use automation and manage costs	Maintain healthy profits and control expenses

Outlook

Vinsys enters FY 2026 with strong momentum, supported by rising global technology adoption and Indias push for digital skilling and infrastructure development. The Company is strategically focused on expanding into new international markets while deepening engagement with Fortune 500 enterprises and government clients. Its DigiLearn platform is expected to evolve into a flagship offering, leveraging AI-driven personalisation, immersive content and multi-language support to address the growing demand for scalable digital learning solutions. In parallel, Vinsys is well positioned to capitalise on opportunities across government skilling initiatives, BFSI digital transformation and AI-led IT services, backed by its established domain expertise and certifications. With disciplined execution, a robust financial base and a clear strategy balancing growth with margin protection, Vinsys is poised to enhance its leadership position in integrated skilling, IT services and workforce solutions on a global scale.

Human Assets

Vinsys regards its employees as its most valuable asset, integral to the Companys sustained growth and success. Its workforce comprises a balanced mix of experienced professionals and emerging talent, bringing both stability and innovative thinking. The Company promotes employee engagement through diverse initiatives. In FY 2024, it partnered with the DKMS BMST Foundation India to support the fight against blood cancer, thalassemia and aplastic anaemia, nurturing a culture of social responsibility among its staff. Vinsys is equally committed to ensuring a healthy, safe and inclusive workplace and implements programmes that promote physical and mental well-being, such as cricket, badminton, carrom, chess and regular yoga sessions. These initiatives aim to boost productivity, improve employee health and build a positive workplace culture.

Risk and Concerns

Risk	Key Concern	Strategic Mitigation
5^	Fluctuations in interest rates, inflation and fiscal/monetary policies affecting profitability and performance.	Diversifies revenue streams, implements cost-control measures and utilises scenario planning to proactively address potential disruptions.
Economic Risk
Foreign Exchange Risk	Exposure to currency fluctuations impacts margins in international operations.	Uses multi-currency transactions, dynamic pricing and natural hedging by matching foreign inflows with outflows to minimise net exposure.
?	Dependence on a strong customer base; loss of key clients could affect sales and profitability.	Strengthens CRM systems, diversifies customer portfolio and maintains high service quality to boost retention and satisfaction.
Customer Risk
Competition Risk	Highly competitive market influences pricing and product quality.	Invests in R&D for product differentiation, builds brand strength and forms strategic alliances to maintain competitive pricing and market position.
?	Reliance on technology; lagging in upgrades or cybersecurity can hinder operations.	Invests in advanced tech, enhances cybersecurity through audits and training and continuously upskills employees on emerging technologies.
s Technology Risk
Regulatory Risk	Alterations in statutory and regulatory requirements may disrupt operations.	Regularly updates compliance frameworks, proactively engages with legal advisors and ensures readiness for regulatory changes.
	Delayed or defaulted payments can strain liquidity and cash flow.	Strengthens credit assessments, negotiates favourable payment terms, streamlines collections and maintains adequate reserves.

Internal control systems and their adequacy

The Company has in place strong internal control procedures commensurate with its size and operations. The Company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardising operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation. It is an integral part of the general organisational structure of the Company and Group and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers its guidance and strategic supervision to the Executive Directors and management, monitoring and support committees.

Cautionary statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be “forward-looking statements” within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the government regulations, tax laws and other statutes and other incidental factors.