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Airan Ltd Management Discussions

30.25
(0.73%)
Jul 19, 2024|09:44:55 AM

Airan Ltd Share Price Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Managements views on the Companys Performance and outlook are discussed below:

Overview of the Industry

The economy recovered strongly in the current year 2022 even as new variants of the COVID-19 virus fuelled additional waves of the pandemic. Robust policy support in advanced economies, availability of vaccines and relaxation of pandemic restrictions helped economies bounce back. Software and computing technology are transforming businesses in every industry around the world in a profound and fundamental way.

The global IT services industry continues to be a highly fragmented one, with even the largest provider having a mid-single digit market share.

Our Business

Airan Limited provides IT and IT enabled Services, Application Outsourcing, Network Services, BPO, Platform Solutions, E- KYC, Banking Operations, Contact-Centre Services and various other value-added services. Our vision is to build a global and esteemed organisation delivering the best-of breed business solutions by leveraging technology that is delivered by the best-in-class workforce. We are guided by our value system which motivates our attitudes and actions. Our core values are Client value; Leadership by example; Integrity; Transparency; Fairness; Information Security and Excellence.

Our strategic objective is to build a sustainable organisation that provides supreme and timely solutions to our clients, while creating growth opportunities for our employees, generating profitable growth for our investors and contributing to the community that we operate in.

Airan Limited has made rapid inroad into areas which hold immense potential for the future and we are optimistic with our strategies. India is well-placed to drive the IT and ITeS related services. Indias unique value proposition as the worlds number one outsourcing destination continues to hold good at the back of its strong economic value propositions. The country provides access to largest technical talent pool, ensuring volume, high quality and faster time to the market.

OPPORTUNITIES AND THREATS

The financial year of 2021 has truly been an internationally driven year. The effects of the pandemic started to fade, in all aspects including immigration restrictions and international travel protocols. This gave us room to spread our wings and visit different countries.

The seeds that were sown in the last financial year were starting to grow and it was time to further speed-up this growth by meeting with international stakeholders in-person. A significant opportunity was seized by our company last year when we won the global mandate from Standard Chartered Bank. It was now time to fulfil this opportunity by setting things into action. The operations for Thailand market began and ran in full force with the Indian team providing data-processing support. Whereas, in UAE the preparation before the kickstarting of operations were finalised with multiple rounds of virtual and in-person discussions with the UAE team and vendors. Furthermore, we began initial discussions for start-up of activities in Malaysia, with Philippines and Singapore ensuing subsequently. The opportunities in the Asia-Pacific region now were getting realised.

We agree with the fact that no matter what field we are in, it is important to stay on top of the industry news and trends. This helps us gain experience, identify opportunities for growth while giving us a competitive edge. In order to stay on top of our industry knowledge, we visited the Accounting Business Expo 2022 in Sydney, Australia. This gave us an opportunity to identify key changes, industry revolutions, new technologies, business practices, and most importantly: we got the opportunity to network and make acquaintance with the leaders of the Australian finance and accounting industry. We were able to build a dynamic strategy by spotting opportunities and threats early, which we believe progress beyond the competition.

While things were forming in the Eastern Hemisphere, over on the Western Hemisphere we began marketing operations in the UK and entered the worlds biggest demand-market for BPO services i.e. United States of America.

Airan Limited made a debut on the world-stage by participating in the Accountex 2022 Exhibition in London, England. Europes largest exhibition in the Accounting and Finance Arena, with over 10,000 visitors. Multiple new, qualitative and IT enabled services were now being offered to the UK market. By being at the right platform, we were able to communicate to a receptive market that could relate to and value or business. Additionally, we were also able to capture various types of eligible competent leads and create a database that would further build our network. With the high attendance rate, we could reach out to potential customers who had a willingness to interact. Despite it being the first international appearance, we got a wonderful response by the visitors and boosted our brand awareness in the UK and European finance arena.

We have further expanded our horizon by entering the US BPO Market by entering into agreement with a US based gaming giant for BPO Services. We are aware that the current industry trend reflects that organizations are looking for specialized companies that provide much-needed support services that can be outsourced without the direct investment of dedicated time and human resources. Hence, the demand for BPO services experienced a spike in the past half-decade and has reached US$ 232.3 Bn in 2021, growing market size at 7% CAGR throughout the historic period. Additionally, The COVID-induced pandemic has introduced new normal and opened boundaries for BPOs. The organisational agility of Airan Limited provides the organisations in the US to survive constant changes in business dynamics without any direct investment of dedicated time and human resources. Our well-structured company culture gives the, an opportunity to hire the best employees across the globe.

Airan Group of Companies has welcomed their second listed company with the IPO of Quadpro ITeS Limited, which has opened the door to capturing new opportunities. Our company is also exploring opportunities in the cash logistics and management field.

Furthermore, Airan has seized several opportunities nationally by initiating new services as well as providing existing services to new clients. These services include but are not limited to Doorstep Banking Support Services, Contact Centre Services, Customer On boarding, Transaction Processing, Software as a Service Offerings, and Software Development. At Airan Limited, we believe that competitive analysis involves clear-eyed judgment, ruthless introspection, and unflinching candor. It involves what some philosophers call Methodic Doubt - test all assumptions, question hypothesis, seek answers. This enables us to assess our competitive position through which we can utilise our strengths, and offset our weakness. Upon making an efficient assessment, our management has envisioned Airan Limited as one of the worlds leading IT & ITeS Company by harnessing threats into opportunities. We believe that a vision is paramount for success. The principal reason that a vision of success - i.e., a goal - is so important is that it enables us to communicate, discuss and negotiate ideas and qualities that are otherwise intangible.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

AIRANs internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. AIRAN has a well-defined delegation of power with authority limits for approving contracts as well as expenditure. Processes for formulating and reviewing annual and long-term business plans have been laid down. It has continued its efforts to align all its processes and controls with global best practices.

AIRANs management assessed the effectiveness of the companys internal control over financial reporting (as defined in Regulation 17 of SEBILODR Regulations 2015) as of March 31,2022.

Based on its evaluation (as defined in section 177 of Companies Act 2013 and Regulation 18 of SEBI LODR Regulations 2015), Airans audit committee has concluded that, as of March 31,2022, the companys internal financial controls were adequate and operating effectively.

Material Developments in Human Resources

The empowering culture of Airan Limited, philosophy of investing in people, career growth opportunities, and progressive HR policies have resulted in consistently high retention levels and developed a strong employer brand.

As companies struggle to find a way to deal with the global economic slowdown, the simple act of recognizing an employee in a meaningful and memorable way is the missing link that can heighten the productivity levels, lower employee turnover, and create a sense of belonging.

Rewards and recognition signify the appropriate acknowledgment, appreciation, and prompt incentivization of an employees effort.

The Rewards and Recognition winners are selected through a merit-based system and determined by regularity, individual performance and leadership skills.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the company has shown remarkable development which can be ensured by comparison of its Net Profit which is Rs. 844.76 lakhs. in the year 2021-2022 as compared to previous year which is Rs. 557.00 lakhs in the year 2020-2021.

RATIO ANALYSIS

PARTICULARS F.Y 2019-20 F.Y 2020-21 F.Y. 2021-22
Revenue 5,959.37 6,855.41 9,319.36
EBIT 874.85 836.43 1,264.49
PAT 672.42 588.57 1,002.99
NETWORTH 8,174.31 8,900.97 11,158.24
CAPITAL EMPLOYED 9,483.22 9,647.74 12,063.35
ROCE 9.23% 8.67% 10.48%
DEBT - EQUITY RATIO 0.09 0.07 0.02
DEBT SERVICE COVERAGE RATIO 8 27.08 73.40
TRADE RECEIVABLES TURNOVER RATIO 3.80 3.68 4.33

 

Registered office: For and on behalf of Board of Directors
408, Kirtiman Complex, B/h. Rembrandt Building, Airan Limited
C. G. Road, Ahmedabad, Gujarat-380006. CIN: L74140GJ1995PLC025519
Date : August 27, 2022 Sandeepkumar Vishwanath Agrawal
Place : Ahmedabad Chairman and Managing Director
DIN 02566480

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