Womancart Ltd Management Discussions

1. Economic Overview

The Indian economy continued to demonstrate resilience in FY 2024-25 with steady GDP growth driven by consumption, digital adoption, and increasing urbanization. Rising disposable incomes, evolving consumer preferences, and the accelerated penetration of e-commerce platforms have significantly boosted the retail and lifestyle sectors. The women s lifestyle segment, encompassing apparel, footwear, accessories, cosmetics, and allied lifestyle products, remains one of the fastest- growing categories in both online and offline retail.

2. Industry Structure and Developments

The women s lifestyle industry in India is undergoing rapid transformation:

• E-commerce Growth: The online channel is expanding at double-digit growth, driven by higher smartphone penetration, improved internet connectivity, and adoption of digital payments.

• Omni-channel Experience: Customers increasingly prefer integrated shopping experiences, combining the convenience of online platforms with the touch-and-feel assurance of offline stores.

• Premiumisation & Personalisation: Rising aspirational consumption is leading to demand for premium, personalized, and niche women s lifestyle products.

• Export Opportunities: Global recognition of Indian fashion, ethnic wear, and lifestyle products is creating strong demand in overseas markets.

3. Company Overview

Your Company is engaged in both online and offline sale of womens lifestyle products, offering a wide portfolio including ethnic wear, western wear, cosmetics, fashion accessories, and home decor.

Key ffighlights of FY 2024-25:

• Expanded online platform with improved user interface, personalized recommendations, and faster delivery logistics.

• Increased offline presence through new exclusive brand outlets and tie-ups with multibrand stores across Tier-I and Tier-II cities.

• Initiated geographical expansion in overseas markets with encouraging response from customers in Australia, Middle East, and Europe.

• Strengthened own-brand SKUs, improving margins and customer loyalty.

• Achieved healthy growth in sales volume and value, supported by festive and wedding season demand.

4. Opportunities and Threats Opportunities:

• Expansion in Tier-II and Tier-Ill cities.

• Increasing online penetration and preference for digital shopping.

• Global demand for Indian lifestyle products.

• Cross-selling and upselling through data-driven marketing.

• Rising demand for sustainable and eco-friendly fashion.

Threats:

• Intense competition from domestic and global players.

• Changing fashion trends leading to short product life cycles.

• Currency fluctuations affecting import and export

• Dependence on seasonal demand and festivals.

• Regulatory changes in e-commerce and consumer protection laws.

5. Segment-wise or Product-wise Performance

• Ethnic Wear & Bridal Collection: Strong sales during festive and wedding seasons; increased demand in overseas markets.

• Cosmetics & Accessories: Significant growth in online channel with increasing contribution from premium categories.

• Home & Lifestyle Products: Emerging category with steady growth, driven by cross-selling to existing customer base.

6 . Outlook

The Company remains optimistic about the future, backed by:

• A robust omni-channel strategy.

• Expansion into new geographies, both domestic and international.

• Enhanced customer engagement through technology and Al-driven analytics.

• Focus on sustainability and premium product categories.

With these strategic initiatives, the Company expects to achieve sustainable revenue growth and improved profitability in the coming years.

7. Risks and Concerns

• Operational Risks: Supply chain disruptions, inventory management, and rising input costs.

• Technology Risks: Cybersecurity threats, data privacy concerns, and dependency on digital infrastructure.

• Regulatory Risks: Evolving GST norms, e-commerce guidelines, and labor laws.

• Consumer Behavior Risks: Rapidly changing fashion trends and brand loyalty shifts.

The Company has established risk management frameworks to monitor and mitigate these challenges.

8 . Internal Control Systems and Adequacy

The Company has robust internal control systems aligned with its business requirements. Regular internal audits, process reviews, and IT-enabled checks ensure compliance with statutory requirements, safeguarding of assets, and reliability of financial reporting.

9. Financial Performance (Standalone)

• Revenue Growth: Increased owing to expansion in both online and offline channels.

• EBITDA Margin: Improved due to higher share of own SKUs and cost optimization.

• Net Profit: Healthy growth supported by better operating leverage.

• Inventory Position: Strategically maintained to meet festival and wedding season demand.

10. Human Resources

The Company considers its workforce as its key asset Several initiatives were taken during FY 202425 to strengthen talent acquisition, training, and employee engagement The employee base grew in line with expansion across new stores and online operations.

11. Cautionary Statement

Statements made in this Management Discussion and Analysis report describing the Company s objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially due to various factors such as economic conditions, government policies, market demand, and competition.