Abhishek Integrations Ltd Management Discussions

Annexure-A

Aviation

> Industry Structure and Development

India is the 3rd largest civil aviation market in the world.

On December 19, 2023, ICRA reported that the Indian aviation industry is projected to see year-on-year revenue growth of 15-20% in FY24 and 10-15% in FY25. Despite healthy passenger traffic growth, the recovery in industry earnings will be gradual due to the high fixed costs.

The government plans to operationalize 12 new airports under the UDAN scheme this year, with an expenditure of Rs. 4,073 crore (US$ 486 million) incurred for airport development as of June 30, 2024.

The Government of India gave in-principle approval to 19 airports, out of which, seven are going to be developed on a PPP basis with an investment of Rs. 27,000 crore (US$ 41.89 billion).

On 16 August 2024, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Mr. Narendra Modi, approved the Airports Authority of Indias proposal to develop a New Civil Enclave at Bagdogra Airport in Siliguri, West Bengal, at an estimated cost of Rs. 1,549 crore (US$ 185.69 million), featuring a 70,390 sqm terminal designed for 3,000 Peak Hour Passengers and an annual capacity of 10 million passengers, along with a green building initiative to enhance operational efficiency and passenger experience.

The Government has informed that India will spend US$ 11.88 billion by 2025 to boost regional connectivity by constructing airports and modernizing existing ones.

Coal

• India has large reserves of coal. As of April 30, 2025, the total installed coal thermal power capacity in India stood at 212.71 GW.

• Looking towards the future, the coal sector aims to ramp up renewable energy capacity to over 9 GW by the year 2030.

• Coal-based power installed capacity in India stood at 210.96 GW in June 2024 and is expected to reach 330-441 GW by 2040.

• India has achieved a historic milestone, surpassing one billion tonnes of coal production in FY24, reinforcing its commitment to energy security and self-reliance. The country produced 997.83 million tonnes of coal during the fiscal year, marking a significant step towards reducing import dependence and strengthening domestic energy supply.

• Various reforms being undertaken by the government are positively impacting Indias power sector. In the wake of the surging domestic coal production, the countrys power sector is becoming increasingly stable.

• Non-coking coal consumption is forecast to grow at a CAGR of 5.4% to reach 1,076 MT in FY23 from 826 MT in FY18. Domestic supply is forecast to reach 931 MT in FY23 from 664 MT in FY19, growing at a CAGR of 7%.

Source: https://www.ibef.org/

> Opportunities and Threats.

Opportunities:

• Increasing Government focus on increasing reforms in the infrastructural and industrial sector;

• Expansion of key industry sector Airports, Ports etc.;

• Infrastructural development in the Country.

Threats:

• Economical and Political scenario in the country;

• Gradually becoming highly competitive due to entry of large number of organized player which are creating disturbance by offering services at unrealistic prices.

> Segment-wise or product-wise performance

The Company has expanded its segment apart from existing developing, maintaining & operating of Airports to a Lighting & Electrical Products Trading and Coal Trading.

Segment wise Revenue:

(Rs. In Lakhs)

Particulars	2024-25
Infrastructural & Utility Services	2,324.09
Electrical Goods Trading	52.25
Coal Trading	259.50

Segment Results (Profit/Loss before tax and interest from each segment)

(Rs. In Lakhs)

Particulars	2024-25
Infrastructural & Utility Services	332.28
Electrical Goods Trading	1.53
Coal Trading	7.48

> Outlook

Your Company has kept pace with the overall market scenario and continues to grow significantly. The Management expects to improve the growth in the years to come, subject to favourable market conditions, and stable economic policies. With each passing year, our commitment to our clients success and our will has only grown stronger. Our motivation comes from our clients guidance and warm support that have always welcomed our lofty goals and helped us execute and achieve them through a well-crafted plan. The organisation is constantly working on overcoming difficulties by enhancing our capabilities and focusing on increased efficiency, which will aid in profit development and consistency.

> Internal Control Systems and their adequacy

Your Company has deployed all relevant technology solutions to manage and monitor internal process. Further, we have well established and adequate systems for internal control to provide reasonable assurance that all assets are safeguarded. Also, as a measure of checks and balances, all transactions are authorized and reported diligently.

> Risks and Concerns

The Company has put in place Risk Management Policy and Procedures for identification, assessment, management, monitoring and minimization of risks. It has identified potential risks under various categories like Business Dynamics, Operations, Liquidity, Market/Industry, Human Resources, Systems and Disaster Management. The Company is periodically reviewing the risks and their identification, assessment, monitoring and mitigation procedures. It does not perceive any major technological, operational, financial or environmental risks in the near future.

> Discussion on financial performance with respect to operational performance Revenue:

We have got thought leadership in our focused domains. The Companys growth considering the past years performance has increased. The Company is taking necessary steps for increasing profits from year to year. The Company recorded net sales Rs. 2635.84 lakhs as against Rs. 2544.76 lakhs in the previous year and thereby recording the Increase in the net sales by 3.58% over previous year.

Net Profit:

During the year under review, the profit after tax stood at Rs. 102.56 lakhs as against profit after tax of Rs. 76.92 lakhs during the previous financial year and thereby recording the Increase in the net profit by 33.33% over previous year. Net profit of previous few years as under:

> Human Resources

More than 650 employees are working in the Company. We continuously endeavor to improve and enhance the work environment for our employees. Competitive compensation package, innovative and challenging environment to work, etc., are some of the steps taken by the Company for the welfare of its employees.

> Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as “forward looking statements” only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

> Key Financial Ratios

Sr. No.	Particulars of Ratio	31st March, 2025	31st March, 2024
1.	Debtors Turnover Ratio	7.65	9.94
2.	Inventory Turnover Ratio	2.81	3.59
3.	Interest Coverage Ratio	2.89	2.82
4.	Current Ratio	1.91	2.37
5.	Debt Equity Ratio1	0.10	0.15
6.	Operating Profit Margin (%)2	3.89	3.02
7.	Net Profit Margin (%)3	3.87	3.00
8.	Return on Net Worth (%)	10.52	8.69

Explanations for significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios:

1 Debt Equity ratio decreased by 34.62% due to reduction in long term debts.

2 Operating Profit Margin increased by 28.81% due to increase in Operating Profit during the year

3 Net Profit Margin ratio increased by 28.73% due to increase in Net Profit.

	For and on behalf of the Board
Dated: 02/09/2025	ABHISHEK INTEGRATIONS LIMITED
Place: Ahmedabad	Sd/-
	SANJAY NARBADA DUBEY
	Chairman & Managing Director DIN: 02218614