aqua pumps infra ventures ltd Management discussions

Economic Outlook

The Indian economy began the fiscal year 2022-23 with headwinds in the form of infiationary pressures caused by rising energy and food prices. Due to the protracted conflict in Europe and the related global sanctions, supply chain bottlenecks remained a key burden.

Despite a difficult start, the Indian economy has shown resilience, growing 7.2% in FY 2022-23, thanks to solid macroeconomic fundamentals and better high frequency indicators. The Reserve Bank of India (RBI) has been moderately successful in reining in inflation by increasing the repo rate by 250 basis points (bps) over the past year. The governments sustained emphasis on infrastructure-driven, capex-led economic growth, combined with evidence of a rebound in private sector industrial investment and an improvement in capacity utilisation, has kept the growth momentum going.

The Union budget for 2023 aimed to balance development requirements with fiscal discipline by allocating sufficient funding for capital investments. The government has announced a 33% increase in capital investment of Rs. 10 Lakh Crore, equivalent to 3.3% of total GDP, to considerably improve infrastructure development. Similarly the Railways have projected the largest ever capital spend of Rs. 2.4 Lakh Crore. Large investments have been announced in a variety of sectors, including transit, urban infrastructure, green energy, affordable housing, social infrastructure, motorways, and so on.

Private sector investment is steadily increasing as a result of programmes such as the Production-Linked Incentive (PLI) scheme, PM Gati Shakti, and the National Logistics Policy (NLP), which contribute in increasing domestic manufacturing and export competitiveness. Furthermore, investments by global multinationals to de-risk and build alternative supply chains are likely to increase private sector capital outlay. The recovery in corporate and bank balance sheets bodes well for private sector capital investments. According to the economic study, India recorded Rs 3.3 trillion in private investment in the first six months of FY23, up 50% from Rs 2.2 trillion the previous year. Recent labour market conditions point to increased labour force participation and long-term job creation.

These achievements also position India as an appealing investment location, increasing foreign investors confidence in investing in India. Foreign direct investments from nations such as Japan, the UAE, the United Kingdom, Taiwan, and Singapore are increasing. Furthermore, recent free trade agreements will boost domestic industry by integrating it into the global supply chain.

The World Bank expects India will grow at a 6.3% annual rate in FY24, owing to lower global commodity prices, supportive fiscal and monetary policies, and higher government infrastructure spending. Overall growth in the construction industry is likely to be healthy as the government continues to prioritise infrastructure development in the country. Construction businesses who embrace the industrys shifting landscape will have an advantage over others, with an emphasis on rebuilding infrastructure, renewable energy ecosystem, sustainable buildings, and industries.

The prolonged geopolitical war in Europe is projected to continue to disrupt supply chain dynamics and keep commodities prices volatile for an extended length of time. Rising interest rates around the world may also have an impact on capital flows into the country. Finally India is in a stronger position to address the obstacles and sustain its economic objective as a result of the Governments structural reforms and infrastructure-building efforts, as well as monetary support from the RBI.

Business Structure

The Company is a leading organisation in the infrastructure consulting business, providing services ranging from feasibility studies to DPR preparation, project management consultancy and independent engineer services to Government Organisations and PSUs across the country in sectors such as Roads & Highways, Affordable Housing, Water Supply and Sanitation, Public Financial Reforms, and Urban Development and Sustainability.

With an existing presence in the states of Maharashtra, Madhya Pradesh, Chhattisgarh Jharkhand and Rajasthan, the Company has an enriching industry experience in the sector of Affordable Housing, Water Management, Solid Waste Management and Road Infrastructure.

OPPORTUNITIES & OUTLOOK

In the recent term, the Company has seen a rising push by the government on infrastructure development across the country with the goal of enhancing highways, connectivity, transit, water supply, and urbanization in this new decade. The organization has significant potential with a solid pipeline ahead after constantly recognizing top chances.

a) Infrastructure for roads and water supply projects, A primary goal of the Company is to maintain a focus on JJM projects with timely execution and strong discipline in order selection. Furthermore, creating a Water portfolio with the purpose of maintaining a strong IRR with monetization potential would assist the Company in extending the order book in accordance with the Governments Jal Jeevan Mission.

b) Maintaining financial discipline, the companys competitive advantage rests in managing project expectations while implementing stringent cost controls and order selection discipline to guarantee margins and return profiles are not jeopardised. The Companys continued focus on enhancing profitability, deleveraging the balance sheet, working capital management, and cash generation will allow it to strengthen its industry position.

RISK MANAGEMENT

To limit business and operational risks, the company has implemented an effective risk management system. The top management and risk-management committee assess the key risk areas on a regular and systematic basis. Comprehensive policies and processes aid in the identification, mitigation, and monitoring of risks at various levels. Furthermore, the Company is sensitive to opportunities and will not hesitate to capitalise on them if doing so eliminates any danger to our capital. The Company guarantees that key business objectives are met in a smooth manner by implementing such proactive initiatives.

HUMAN RESOURCES

The companys human resources division plays a crucial role in recruiting, training, overseeing, and retaining employees, with the aim of building a skilled workforce capable of realizing their full potential and actively contributing to the organizations growth. The company is committed to providing equal opportunities to all its employees, creating a fair and level playing field. This commitment has not only boosted employee morale but also increased productivity while reducing absenteeism.

Our objective is to fully harness the potential of our human capital resources by fostering a workplace culture characterized by respect, rewards, and inclusivity. In such an environment, our employees are empowered to make significant contributions toward achieving our vision and mission. We encourage each employee to strive for greater accomplishments.

Throughout the year, the company maintains friendly industrial relations by adhering to the highest safety standards in both the workplace and office settings.

CAUTIONARY STATEMENT

Some of the feedback in this Management Discussion and Analysis that describe the companys objectives, plans, estimates, and expectations may be considered ‘forward-looking statements under applicable laws and regulations. Actual outcomes may differ significantly from those stated or inferred. Changes in economic conditions affecting demand, supply, and price movements in the domestic and international markets in which your company operates, changes in government regulations, Tax Laws, and other Statutes, or other incidental factors are all important developments that could affect the companys operations. The corporation accepts no responsibility for forward-looking statements that may be updated or modified in the future.

BY ORDER OF THE BOARD OF DIRECTORS EKANSH CONCEPTS LIMITED (Formerly known as Paramone Concepts Limited)

Sd/-

Deepak Nayak Ranjan

Director

DIN : 08406471

Place : Mumbai

Date: August 11, 2023