Yash Optics & Lens Ltd Management Discussions

Overview:

Yash Optics & Lens Limited ("the Company") was originally incorporated on July 23, 2010 as

Yash Optics & Lens Private Limited under the Companies Act, 1956 with the Registrar of Companies, Mumbai, Maharashtra. Subsequently, it was converted into a Public Limited Company and the name was changed to Yash Optics & Lens Limited vide a fresh certificate of incorporation dated January 29, 2024.

Established in 2010, the Company provides a comprehensive range of vision correction solutions. It is engaged in manufacturing, trading, distribution and supply of spectacle/optical lenses ranging from single vision lenses to advanced customized progressive lenses with multiple coatings, catering to all customer segments from economy to luxury.

Our journey began in 2002 through trading of lenses under M/s Yash Optics, followed by imports in 2007 under M/s Yash Enterprises, and manufacturing in 2012 under M/s Yash Lenses. In FY 2021 22, Yash Optics & Lens Limited acquired M/s Yash Lenses, enabling direct manufacturing under its own brand. The Company is also the exclusive distributor for "Pentax" ophthalmic lenses in India under an agreement with HOYA Lens India Private Limited dated October 1, 2022.

The Company operates from its ISO 9001:2015-certified manufacturing facility at Kandivali (West), Mumbai, equipped with advanced machinery and a dedicated quality assurance framework.

Industrial Structure and Developments:

Yash Optics & Lens Limited, listed on the NSE Emerge platform, is among Indias fastest-growing technology-driven optical lens manufacturers. Leveraging over two decades of expertise, the Company continues to lead in delivering digital vision care solutions.

Financial Performance Highlights FY 2024 25:

I. Revenue from Operations & Total Income:

The Company recorded revenue from operations of 43,20.85 lakhs during the year under review, as against 41,10.98 lakhs in the previous year, reflecting a growth of 5.08%. The total income, which includes revenue from operations and other income (such as interest, dividend, and miscellaneous income), stood at 46,04.39 lakhs compared to 41,20.37 lakhs in the previous year, thereby registering an overall increase of 11.76%. The improvement in income is attributable to consistent operational performance, effective business strategies, and higher contribution from ancillary income streams, underscoring the Companys ability to generate sustainable growth.

II. Profit Before Tax (PBT):

The Profit Before Tax increased to 12,98.86 lakhs compared to 12,11.89 lakhs in the previous year, reflecting a growth of 7.17%. This improvement in profitability has been driven by efficient cost management, operational excellence, and economies of scale. The Companys continuous focus on enhancing margins and optimizing resources has contributed to the higher PBT.

III. Profit After Tax (PAT):

The Profit After Tax stood at 9,58.81 lakhs compared to 9,02.25 lakhs in the previous year, registering a growth of 6.27%. The steady rise in PAT reflects the Companys ability to manage taxation efficiently and sustain bottom-line growth in line with operational performance. This indicates robust financial health and wealth creation for shareholders.

IV. Net Worth:

The Net Worth of the Company increased significantly to 90,36.71 lakhs as compared

29,83.52 lakhs in the previous year. This sharp rise is primarily due to retained earnings and infusion of fresh equity/ reserves during the year. The strengthened net worth enhances the Companys financial stability, provides a strong foundation for future expansion, and improves its creditworthiness.

Organizational Structure:

The organisational structure remains aligned to strategic objectives, ensuring operational efficiency and innovation.

Executive Management:

? Managing Director (MD) Leads strategic planning and stakeholder engagement. ? CFO Oversees financial strategy, risk management, and reporting.

Functional Management:

? Manufacturing & Production Oversees production, quality, and supply chain. ? Sales & Marketing Manages B2B/B2C channels, market research, and promotions. ? Finance & Administration Manages budgeting, reporting, and treasury. ? Human Resources Drives recruitment, training, and employee engagement.

Our strategy:

Key strategic directions for FY 2024 25 included:

? Product Portfolio Expansion Strengthened with brands like IRIS and Seto, with deeper penetration in Maharashtra, Gujarat, and Rajasthan. ? Quality Leadership Focus on premium coatings, anti-glare blue block lenses, and UV-protection designs. ? Technology Innovation Development of adaptive lenses that respond to sunlight intensity, reducing eyestrain. ? Capacity Expansion Expansion of progressive lenses capacity at the existing premises.

Our Competitive Strengths:

Advanced manufacturing technology and R&D capabilities Wide product range serving diverse market segments Strong brand equity and distribution network Skilled workforce and technical expertise Commitment to after-sales service and customer satisfaction

Our competition

The Company operates in a competitive global optics market influenced by pricing pressures, rapid technology advancements, substitute products, and emerging startups.

Opportunities and threats

Opportunities

Our company have numerous opportunities to grow and thrive in a rapidly evolving market. Here are some key opportunities for our Company:

? With the use of latest technology can focus on the premium segment.

? Backward integration can help us reduce import dependency and has a very huge market capability ? Global expansion in Asia-pacific & Latin America ? Can focus on creating a B to C brand through awareness and branding activities ? Increase in the share of progressive lenses due to increase in average working age. ? Increase in screen time due to advancement of ecommerce with social media.

Threats

? Intense price-based competition

? Currency fluctuations affecting import costs ? Regulatory compliance costs across markets

FUTURE OUTLOOK:

The Company is optimistic about FY 2025 26, driven by demand growth in vision care. Focus will be on:

? Scaling production to meet export demand (exports in FY 2024 25: 5,32.14 lakhs) calculated on FOB basis. ? Leveraging IPO proceeds for capacity expansion and technological upgrades ? Enhancing distribution network and increase the geographical coverage area serviced.

RISK AND CONCERNS:

? Quality Risks Maintaining consistent standards across volumes ? Supply Chain Risks Raw material price volatility and delays ? Economic Risks Slowdowns impacting discretionary spending ? IP Risks Patent protection and counterfeiting threats

Financial condition

Internal Financial Control Systems and their Adequacy:

Internal financial control systems are essential for managing an optics and lens companys financial health, ensuring statutory compliance, and maintaining operational efficiency. These controls comprise a structured set of processes, procedures, and oversight mechanisms designed to safeguard assets, ensure the accuracy of financial reporting, and prevent fraud.

The Company has established adequate and effective internal control systems which provide protection to all its assets against loss from unauthorized use and ensure the correctness of financial transactions. These systems are reviewed periodically to confirm that:

? Transactions are duly authorized,

? Financial records are accurate and complete, and ? Assets are adequately safeguarded.

In all material respects, the Company has maintained adequate internal financial controls over financial reporting. These controls were operating effectively during the year, based on the criteria established by the Company and in alignment with the essential components of internal control outlined in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).

Segment wise or product-wise performance:

The Company is presently engaged in manufacturing, trading and distribution of optics and lens and also provide technology innovation.

The performance of Company for the financial year 2024-25 is summarized below:

(Amount in Lakhs)

Particulars	31/03/2025	31/03/2024
Revenue from operations and Other Incomes	4,604.39	4120.38
Profit/Loss before Interest, Depreciation and Tax	1541.88	1469.75
Less: Finance Cost	122.67	170.45
Net Profit/Loss before Depreciation and Tax	1419.21	1299.3
Less: Depreciation and amortization for the year	120.34	87.39
Net Profit/Loss before exceptional and extraordinary items and tax	1,298.87	1211.91
Less: Exceptional Items	0.00	0.00
Profit before extraordinary items and tax	1,298.87	1211.91
Less: Extraordinary Items	0.00	0.00
Profit before tax	1,298.87	1,211.91
Less: Tax Expenses	-	-
Current tax expense	320.00	292.33
Deferred tax expense	20.06	17.31
Profit/Loss for the period from continuing operations	958.81	902.27
Tax expense of discontinuing operations	0.00	0.00
Profit/Loss from discontinuing operations (after tax)	0.00	0.00
Profit/Loss transferred/adjusted to General Reserve	958.81	902.27
Basic earnings per equity share	3.89	18.76
Diluted earnings per equity share	3.89	18.76

Review of Operations for the period ended on March 31, 2025:

Revenue from Operations: Revenue from operations for the year ended March 31, 2025 stood at 4,320.85 lakhs, representing 93.84% of the Total Income. Revenue primarily arises from sales of products.

Other Income: Other income amounted to 283.54 lakhs (6.16% of Total Income), comprising interest income, discount received, duty drawback, and other miscellaneous receipts.

Cost of Material Consumed: Cost of material consumed was 1,504.52 lakhs, representing 33% of Total Income. It includes opening stock, purchases of raw material, direct expenses, and adjustment for closing stock.

Changes in Inventories of Finished: Goods, Semi-Finished Goods & Stock-in-Trade Inventory change stood at (26.24) lakhs (-0.57% of Total Income), representing the difference between opening and closing stock.

Employee Benefit Expenses: Employee benefit expenses totalled 740.93 lakhs (16.09% of Total Income), including salaries and wages, directors remuneration, employee insurance, and gratuity expenses.

Finance Cost; Finance cost amounted to 122.67 lakhs (2.66% of Total Income), including interest on borrowings and bank charges.

Depreciation and Amortization: Depreciation and amortization expenses were 120.34 lakhs (2.61% of Total Income), charged on a straight-line basis as per applicable provisions of the Companies Act.

Other Expenses: Other expenses were 843.30 lakhs (18.32% of Total Income), including custom clearing and forwarding charges, chemical testing, rent, repair and maintenance, commission expenses, travelling, and conveyance.

Profit Before Tax (PBT): PBT for the year was 1,298.87 lakhs, representing 28.21% of Total Income.

Tax Expenses: Total tax expenses were 340.06 lakhs, comprising current tax of 320.00 lakhs (6.95%) and deferred tax of 20.06 lakhs (0.44% of Total Income).

Profit After Tax (PAT): PAT for the year was 958.81 lakhs, representing 20.82% of Total Income.

Fiscal 2025 compared with Fiscal 2024:

Revenue from Operations increased from 4,110.98 lakhs in FY 2023 24 to 4,320.85 lakhs in FY 2024 25, driven by enhanced business promotion, marketing efforts, and increased order flow.

Other Income rose sharply from 9.39 lakhs to 283.54 lakhs due to higher discounts, rebates, and duty drawback received.

Cost of Material Consumed decreased from 1,635.55 lakhs to 1,504.52 lakhs, reflecting better procurement efficiency despite higher sales.

Changes in Inventories moved from (278.21) lakhs in FY 2023 24 to (26.24) lakhs in

FY 2024 25, indicating lower stock variation impact.

Employee Benefit Expenses increased from 571.87 lakhs to 740.93 lakhs due to increments, higher manpower requirements, and employee welfare provisions.

Finance Cost reduced from 170.45 lakhs to 122.67 lakhs owing to lower interest expenses during the year.

Depreciation and Amortization increased from 87.39 lakhs to 120.34 lakhs, reflecting asset additions during the year.

Other Expenses increased from 721.42 lakhs to 843.30 lakhs due to higher marketing, administrative, and operational costs.

Tax Expenses rose from 309.64 lakhs to 340.06 lakhs, in line with higher profitability. Profit After Tax improved from 902.27 lakhs to 958.81 lakhs, reflecting better operational performance and revenue growth.

MATERIAL DEVELOPMENT IN HUMAN & OTHER RESOURCES / INDUSTRIAL RELATIONS FRONT:

During FY 2024 25, the Company continued to strengthen its human capital through targeted recruitment, training, employee engagement, and workplace safety initiatives. The Company maintained cordial industrial relations throughout the year, with no instances of work stoppages or disputes.

1. Recruitment and Talent Acquisition

Strategies Implemented:

? Leveraged specialized job boards, professional networks, and social media platforms to attract skilled talent in optics manufacturing, quality assurance, and sales. ? Focused on hiring experienced professionals for technical roles while expanding campus recruitment for entry-level positions.

FY 2024 25 Developments:

? Selective hiring in line with operational requirements, ensuring optimal manpower utilization in view of controlled overhead expenses as reflected in the years employee benefit costs of 740.93 lakhs.

? Offered remote and hybrid work arrangements for functions that did not require on-site presence, improving talent reach and flexibility.

2. Training and Development

Training Programs Conducted:

? Technical Skill Enhancement: Focused on lens coating technologies, precision manufacturing techniques, and quality compliance. ? Leadership Development: Prepared mid-level managers for leadership roles through structured workshops.

FY 2024 25 Developments:

? Expanded cross-functional training to improve inter-departmental coordination. ? Introduced refresher programs in safety protocols and customer service excellence.

3. Employee Engagement and Retention

Engagement Strategies:

? Regular feedback sessions and open forums for employees to raise concerns and suggest improvements.

FY 2024 25 Developments:

? Introduced flexible working hours for certain departments, contributing to higher retention. ? Enhanced employee morale through celebration of key milestones, team-building activities, and welfare programs.

4. Compensation and Benefits

Compensation Framework:

? Competitive salary structure benchmarked to industry standards. ? Performance-linked incentives aligned to company growth targets.

FY 2024 25 Developments:

? Evaluated the introduction of long-term incentive plans for key managerial personnel in line with business expansion and profitability (PAT for FY 2024 25 stood at 958.81 lakhs, up from 902.27 lakhs in FY 2023 24).

5. Workforce Management and Employment Trends

Health and Safety Initiatives:

? Continuous monitoring and implementation of manufacturing-specific safety protocols. ? Strict adherence to statutory health and safety compliance requirements.

FY 2024 25 Developments:

? Upgraded fire safety and chemical handling equipment at the manufacturing facility. ? Conducted quarterly safety drills and first-aid training, further reducing incident rates.

Conclusion:

The Companys human resource policies remain focused on attracting and retaining top talent, enhancing skillsets, and ensuring a safe and productive work environment. Investments in employee engagement, benefits, and training are expected to continue in FY 2025 26 to support the Companys growth trajectory.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore:

Sr. No. Ratios	Numerator	Denominator	31- Mar- 25	31- Mar- 24	% Change	Reason for Variance
1Current Ratio	Current Assets	Current Liabilities	8.50	2.49	241.63%	Sub-note (vi)
2 Debt- Equity Ratio	Total Debts	Shareholders Equity	0.16	0.85	80.92%	Sub-note (i)
3Debt Service Coverage Ratio	Earning available for Debt Service	Debt Service	1.07	(0.54)	-296.42%	Sub-note (v)
4 Return on Equity Ratio	Profit after Tax	Average Shareholders Equity	15.95%	36.92%	-56.79%	Sub-note (ii)
5Inventory turnover ratio	Total Turnover	Average Inventories	0.70	0.76	-7.89%	-
6Trade Receivables Turnover Ratio	Total Turnover	Average Accounts Receivable	3.15	3.93	-19.81%	-
7 Trade payables turnover ratio	Total Purchases	Average Account Payable	0.00	4.38	-100.00%	Sub-note (iii)
8 Net Capital Turnover Ratio	Total Turnover	Net Working Capital	0.70	2.07	-66.36%	Sub-note (iv)
9Net Profit Ratio	Net Profit	Total Turnover	22.19%	21.95%	1.11%
10 Return on Capital Employed	EBIT	Capital Employed	13.48%	24.97%	-46.00%	Sub-note (vii)

Disclosure of Accounting Treatment:

The company prepares financial statements in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies are applied consistently to all the periods presented in the standalone financial statements The standalone financial statements are presented in Indian Rupee (INR), the functional currency of the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates

(the ‘functional currency). Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.

Date: 20.08.2025

Place: Mumbai

 

	Sd/-	Sd/-
Name	Tarun Manharlal Doshi	Chirag Manharlal Doshi
Designation	Managing Director	Whole-Time Director
DIN	03067691	07935498