Aksh Optifibre Ltd Management Discussions

Industry Structure and Development

The Fibre Optic Cable Market size is estimated at USD 12.83 billion in 2024, and is expected to reach USD 19.26 billion by 2029, growing at a CAGR of 8.46% during the forecast period (2024-2029). Increased broadband penetration, rising Internet TV streaming services, and the overall growth of the telecommunications sector are the main drivers.

. Allthesefactorsdrivetheincreaseduseoffibre optic cables The evolution of fifth-generation networks and fibre optic infrastructure has driven digital transformation across industries. Optic fibre cable offers better security, reliability, bandwidth and security than copper cables. Broadband penetration, increasing Internet TV streaming services, and the overall growth of the telecommunications industry have led to a substantial increase in FTTH. But there is also the newly emerging Internet of things and working from home movement. Furthermore, according to Ericsson, 5G subscriptions were expected to increase globally between 2022 and 2023, rising from over 0.55 billion to over 1.67 billion. Such a huge rise in 5G subscriptions was expected to drive the market.

The growing investments in fibre optic communication expansions with the growing connectivity globally are one of the major factors contributing to the markets growth. For instance, in October 2023, the Suez Canal Economic Zone signed an agreement worth USD 18 million in investments with the Chinese power and fibre manufacturer Hengtong to expand the latters business in the TEDA-Egypt zone. Under the agreement, it sought to manufacture fibre cables with a capacity of up to two million kilometers in the region.

The agreement will also contribute to fulfilling its contract obligations in connection with producing fibre optic cables, networks, and ground telecommunications. This includes, but is not limited to, optical communications engineering, wire production and power engineering services, and the operation and maintenance of submarine fibre optic cables.

KEY DEVELOPMENTS IN INDIA FIBRE OPTIC CABLE MARKET:

3 The National Highways Authority of India (NHAI) is actively pursuing the development of approximately 10,000 kilometers of Optic Fibre Cables (OFC) infrastructure across the country by fiscal year 2024-25.

3 The escalating demand for data necessitates the installation of additional telecom towers to enhance coverage in rural and non-metro areas and expand capacity in metros. Industry projections indicate a requirement for 10 lakh new towers and the laying of 30 lakh km of optical fibre cable (OFC) by 2025. typically demands an investment of Rs 50 lakh. Currently, around

30% of telecom towers in India are fibreized.

3 During a presentation on the progress of targets set under the PM GatiShakti initiative, the Special Secretary of the Logistics Division, DPIIT, revealed that the Department of Telecommunications in India has established an Optical Fibre Cable (OFC) network spanning 33,00,997 kilometers till March 31, 2022.

3 Prime Minister of India inaugurated the Kochi-Lakshadweep Islands Submarine Optical Fibre Connection (KLI-SOFC) project in Kavaratti, Lakshadweep, among other developmental projects totalling over Rs 1,150 crore across the technology, energy, water resources, healthcare, and education sectors. Funded by the Universal Services Obligation Fund (USOF) under the Department of Telecommunications, .

3 The Indian government aims to geotag telecom infrastructure, including towers and optical fibre cables, by 2027. This initiative aligns with Indias vision to become a developed nation by 2047.

3 NHAIs plan to develop 10,000 kilometers of Optic Fibre Cables

(OFC) infrastructure by 2024-25 encounters hurdles due to OFC procurement challenges.

Opportunities and Threats

Opportunities in Optical Fibre and Fibre Cables Market:

The fibre optic cable market is poised for significant growth driven by various factors including increased demand for high-speed internet, government initiatives to bridge the digital divide, and advancements in technology.

• The global demand for high-speed internet has witnessed unprecedented growth, driven by various factors including technological advancements, government initiatives, and increasing consumer needs.

• Governments worldwide are prioritizing broadband expansion initiatives to bridge the digital divide and stimulate economic growth.

Significant investments in fibre optic cable infrastructure are driving market growth.

• The Fibre Optic Cable Market is on the brink of a transformative era, fueled by a multitude of opportunities, particularly in rural connectivity projects. Initiatives spearheaded by the Biden-Harris Administration, such as the allocation of $401 million for high-speed internet access in rural areas, underscore the commitment to bridge the digital divide. These endeavors, coupled with private investments, are paving the way for unprecedented growth in industry.

• The Fibre Optic Cable Market stands at the precipice of unprecedented growth, driven by a convergence of government initiatives, private investments, and technological advancements.

• According to the GSMA report, 5G connections were expected to surpass one billion in 2022 and two billion by 2025. By the end of

2025, 5G will account for over a fifth of mobile connections, and more than two in five people globally will live within a 5G network.

Due to the increasing demand for 5G connections, many players are expanding their production capabilities. This is expected to drive the market studied significantly. cables in China. Some of the other players in the

Threats in Optical Fibre and Fibre Cables Market:

• Rapid advancements in technology pose a threat to existing fibre optic cable infrastructure. Newer technologies offer better performance, higher speeds, or cost advantages, making current fibre optic solutions obsolete.

• Fibre optic cable networks are susceptible to damage from natural disasters such as earthquakes, floods, hurricanes, and

• The Fibre Optic Cable Market faces numerous threats amidst critical infrastructure vulnerabilities, as exemplified by recent incidents worldwide. The sabotage of fibre optic cables in

France investigated as a criminal act, disrupted internet services extensively, highlighting the vulnerability of such infrastructure to coordinated attacks.

Poorly made fibre optic cables not only compromise the reliability and performance of communication networks but also jeopardize data security and longevity.

The increasing demand for fibre optic connectivity exacerbates the pressure on suppliers to meet stringent quality standards while maintaining competitive pricing. Market saturation and intense competition further amplify these challenges, leading to margin pressures and potential consolidation within the industry.

• Geopolitical tensions and trade disputes may also disrupt the global supply chain, affecting the availability of critical components and driving up production costs. Additionally, regulatory uncertainties and evolving standards pose compliance challenges for market players, requiring continuous adaptation and investment in research and development.

The fibre optic cable market faces multifaceted threats ranging from data security vulnerabilities and cybersecurity risks to quality issues and regulatory challenges. Addressing these threats necessitates collaboration between industry stakeholders, policymakers, and regulatory bodies to uphold data integrity, safeguard national security, and ensure the resilience of communication networks in an increasingly interconnected world.

Global Future Outlook

With growing online transactions and virtual meetings, companies need optic fibre cable to stay competitive. These cables are cost- effective, convenient, and easy solutions for many industrial applications. These days Optic fibre security than copper cables. As a result of which their application is set to grow during the coming years.

The increasing adoption of the Internet and wireless communication in modern life is expected to lead to a dramatic increase in demand for broadband transmission capacity across the world. Fibre optic cables offer several benefits in the telecommunication industry, including high speed and bandwidth, low attenuation, immunity to electromagnetic interference, high reliability, less maintenance. As a result, the sector will be main growth driver.

China accounted for the highest share of the global optical cable fibre market, and the country is expected to witness steady growth during the coming years. Yangtze Optical Fibre and Cable is a leading provider of optical fibre included Hengtong Optoelectronics, Fibrehome Communications, Zhongtian, Fortis)

According to estimates in V4C Research report, It is expected that during the coming years, North America will witness double digit growth with USA and Canada witnessing high growth in the sector.

GLOBAL FIBRE OPTIC CABLE MARKET, BY REGION Indian Future Outlook:

Rising demand for Optical fibre cables from the Datacenter and Telecom sector, an increase in the number of handheld devices, increased adoption of FTTH (Fibre to the Home) connectivity, and an increase in the number of data centers are expected to drive the optical fibre cable market in India during the forecast period. Fibre optic cables offer the advantage of infinite bandwidth, which makes them capable of handling vast amounts of information. They are used to connect different network nodes in telecommunication networks, such as cell towers, data centers, and internet service providers, enabling the exchange of large amounts of data between different locations.

Fibre optic cables have also enabled the development of high-speed internet connections and advanced communication technologies, such as video conferencing, online gaming, and cloud computing. As a result of this, there usage will rise further in the coming years. Indian consumers are increasingly shifting towards internet-driven applications such as video on demand, HDTV, etc., which is boosting investments towards OFC network expansion throughout the country.

A large chunk of working-class populations in India owns high-end smartphones supporting various technologies such as Wi-Fi, 3G, etc. This class of consumers will boost the demand for on-the-go high- speed data services.

INDIA FIBRE OPTIC CABLE MARKET:

FRP Business

The Fibre Reinforced Polymer (FRP) Composites market is experiencing notable growth, driven by factors like technological advancements, changing consumer preferences, and competitive dynamics. This growth reflects the industrys adaptability to digitalization, sustainability efforts, and geopolitical changes. Additionally, the markets expansion may involve exploring new segments, regions, or product categories to capitalize on emerging opportunities and diversify offerings.

The fibre optic cable (OFC) domain in India is experiencing rapid growth, fuelled by the expansion of 4G and 5G network coverage, government initiatives to enhance digital connectivity and a supportive regulatory environment. As of 2023, India had 37,26,577 km of OFC, with an additional 6,76,996 km laid under the BharatNet project. Government amendments to the Indian Telegraph Right of Way (RoW) Rules have streamlined processes, facilitated rapid network deployment and expediting 5G rollout.

The industry is witnessing significant developments, with state governments collaborating with the Department of Telecommunications (DoT) to ensure quality, safety, and environmental considerations are upheld. As India deepens its presence in the 5G arena, opportunities are emerging for stakeholders in the OFC space to capitalize on this growth.

Services Business

AKSH operates in the service sector across the following sub-sectors:

1. E-Governance

2. Smart Solutions

3. Turnkey Projects

4. Solar Projects

5. FTTH (Fiber to the Home)

1. E governance Sector – AKSH is working as Local Service provider in Emitra Project a flagship project of Government of Rajasthan for delivering the 600 kind G2C and B2C services to citizens nearby their door step through emitra ICT Enabled

Kiosk. AKSH is one of largest LSP in this project and having 12%

Market share in average across Rajasthan for the transaction carried out by all about 80,000 Emitra kiosk. AKSH is having 8200 Active kiosks across Rajasthan. Recently in Rajasthan District

Boundaries redefine by creating the new districts. AKSH is now having emitra kiosk in all 50 districts and this year targeting to achieve 15% market share in both terms i.e. Number of kiosk and

Number of transactions. Aksh is looking for Mobile based service delivery also to enter into M governance. AKSH is aiming to expand their presence in BBPS segment by launching B2C Mobile App.

2. Smart Solutions: AKSH has implemented ICOC and Field Equipment under ICT Project of Jaipur Smart City Limited for Smart Wi-Fi, Smart Parking, Smart lighting, Smart Environmental Sensors, Smart Communication collaboration and Smart Surveillance with analytics. AKSH has implemented Library automation project and digitizing the library by scanning the books. AKSH has implemented replacement of 5000 sodium and LED lights with NB-IOT based Smart LED lighting solution for Jaipur development authority Jaipur. AKSH is managing all smart solutions Project of Jaipur irrespective it is of Jaipur Smart City Limited or JDA or Dravahvati River front directly or indirectly AKSH has completed Smart Water Meter Solution project including Prepaid billing system for a reputed builder in Jaipur. AKSH is looking for new similar Project in Smart Lighting, Smart Waste bin, Smart Parking, Smart Water metering solution and other like Water Level Sensors, Video Conferencing Network etc.

3. Turnkey Projects: AKSH has participated last year for turnkey project which also have 3 to 5 years O&M Support contract also. AKSH has executed IPEPABX, wifi, Surveillance and

Video conferencing and display networking project for Gandhi Darshan Museum Jaipur and Have executed similar kind work for Rajasthan international Center Jaipur and executing similar work for other organization. AKSH has completed supply installation and commissioning of Rack Servers, Storage for Bhamashah data center of Government of Rajasthan. AKSH has executed Aerial OFC Laying Projects for Reliance Jio. AKSH is aiming similar kind project not only in Rajasthan but also in other part of country.

4. Solar Projects: As Government of India is promoting Solar Projects implementation to generate green energy and make India self-sustainable for Energy requirements. AKSH has executed many projects for on grid solar project. AKSH is aiming to execute similar project this year and coming year. AKSH will establish himself as SI who will work as bridge between land owners and investors.

5. FTTH: AKSH is first mover in India for commercial launch of Fibre to the home services in India with BSNL. AKSH is Major partner with BSNL for the same, AKSH has 17,000 customer base of broadband FTTH Customers in Rajasthan. AKSH has executed Bharatnet FTTH project and have provided 12,000 connection to government offices as well private home and institute in Gram

Panchayats of Rajasthan. AKSH has started providing the ftth connections in Villages of Rajasthan and targeting this year 10,000 plus connections in this segment and shall achieve 30,000 customer base this year.

RISKS AND CONCERNS

Fibre Optical Cables Market

3 Falling Prices of Optical Fiber in the Global Market Due to Low

Demand

The telecommunications infrastructure landscape is undergoing significant changes, with fiber optic cables emerging as backbone of fifth-generation (5G) networks, making them a critical component of national security. The fiber optic cable market faces several challenges due to this overcapacity, leading to a decline in prices and market instability. Similarly, Indian telecom operators have scaled back consumption due to financial constraints, leading to a sharp drop in demand and forcing manufacturers to adjust production and increase exports.

3 Slow Down in Fiber Optic Cable Growth

The optic fiber cable (OFC) market has experienced a slowdown in recent years, stemming from a variety of economic, market, and operational challenges. This slowdown, which began to take shape in late 2022, has persisted throughout 2023 and is expected to continue into the foreseeable future. Several major fiber providers, including AT&T, Altice USA, Consolidated

Communications, Frontier Communications, and Lumen

Technologies, have reduced their fiber buildout plans due to a complex interplay of factors. Economic challenges such as inflation have driven up the costs of materials and labor, directly impacting the feasibility and pace of fiber network expansions. Rising costs have made it difficult for companies to justify the extensive capital investments required for fiber housing market has played a role in tempering demand for new fiber installations, as fewer new homes mean fewer opportunities for new fiber connections. The labor market has also posed a significant obstacle, with a shortage of skilled workers and rising labor costs further complicating expansion efforts.

3 Geopolitical Uncertainties Impact on Supply Chains

The Fiber Optic Cable Market faces a myriad of risks and concerns that challenge its growth and sustainability, necessitating proactive strategies and innovative solutions to mitigate potential disruptions. The primary concerns revolve around infrastructure vulnerabilities, highlighted by incidents of sabotage and damage to subsea cables. Recent reports of subsea cable damage off the coast of Yemen, attributed to Houthi rebels, underscore the susceptibility of critical infrastructure to deliberate attacks, disrupting internet services and causing significant economic repercussions. Additionally, challenges in fiber laying, exacerbated by factors such as rugged terrain and existing infrastructure, impede connectivity efforts and escalate installation costs. Geopolitical tensions and trade disputes introduce additional uncertainties, impacting supply chains and driving up production costs. The influx of Chinese-made telecommunications products raises cybersecurity concerns, with potential vulnerabilities and espionage risks posing threats to national security and data integrity. Regulatory complexities and evolving standards further add to the markets uncertainty, requiring industry players to adapt swiftly and invest in compliance measures.

3 Infrastructure Vulnerabilities and Policy Uncertainties

The fiber optic cable market, while promising, is not without its share of challenges and uncertainties, presenting both risks and concerns for industry players. These encompass various aspects ranging from production hurdles to geopolitical tensions and technological complexities. Understanding these risks is crucial for stakeholders to devise effective strategies and ensure the sustained growth and resilience of the market.

Infrastructure vulnerabilities pose a significant risk to the fiber optic cable market. Incidents of sabotage and damage to subsea cables, as evidenced by recent reports off the coast of Yemen attributed to Houthi rebels, underscore the susceptibility of critical infrastructure to deliberate attacks. Such disruptions not only affect internet services but also have profound economic implications. Policy uncertainties further exacerbate these concerns, as regulatory frameworks and geopolitical tensions can impact market dynamics.

HUMAN RESOURCES

HUMAN RESOURCES at AKSH, employees are its prime assets & a vital key to its success. We at AKSH are committed to create a professional culture to nurture and enable people to grow in their profiles alongside Companys success.

Company constantly strives to enhance the skills of the employees in alignment with the business requirement and continue to engage them through various initiatives in the realm of learning & development opportunities, reward & recognition, employee engagement activities & career growth.

3 Company promotes activities related to leadership development at workplace to build internal talent and leadership pool for future organization requirement.

3 This leadership development is carried out by incorporating various HR interventions at workplace which includes: -

- Managing and using people effectively

- Tying performance appraisal and compensation to competencies

- Developing competencies that enhance individual and organizational performance

- Increasing the innovation, creativity, and flexibility necessary to enhance competitiveness

- Applying new approaches to work process design, succession planning, career development, and inter-organizational mobility

- Managing the implementation and integration of technology through improved staffing, training, and communication with employees

3 Training and Workshops at AKSH Optifibre is carried out keeping in mind the individual development requirement as well as organization requirement from the role. Thus, helps the individual to gain knowledge from varied platforms from External sources, Job enrichment, engagement as well as Team Building activities.

3 We are organization which focus on engaging employees to create high Employee Value Preposition as we believe that an engaged employee is a productive employee.

3 Employees engagement has taken a new direction during pandemic where the employees were not only working from home full time but also their productivity has increased, the work from home and frequent discussions at different level has encouraged our employees to work effectively, comfortably and in a tech savvy manner with confidence.

3 We, with the help of our effective Goal setting process manage the work performance of the employees in a very defined and cascaded manner and to help our employees to keep pace with the changing growth requirement in industry.

INTERNAL CONTROL AND THEIR ADEQUACY

Internal audit is used as an effective tool to check and enhance the efficacy of systems, processes and controls of the Company. It is carried out by an independent agency. The review plan, drawn in consultation with the senior management, covers all major areas. The standard operating procedure compliance and management-approved policies are reviewed and areas of improvement, if any, are identified. The observations and suggestions for improvement form part of the report. The report is discussed with Senior Management and the Boards Audit Committee. Wherever necessary, adequate corrective measures are initiated to ensure compliance.

RISK MANAGEMENT FRAMEWORK

The Company has a Risk Management framework in place, which comprises the identificationof potential risk areas, evaluation of intensity, mitigation plans and procedures for the risk management, formulated both at the enterprise and at the operating level. The framework seeks to facilitate building a common understanding of the exposure to the various risks and uncertainties at an early stage for timely response and their effective mitigation.

II Financial Performance Source of funds

1. Share capital

The Company has only one class of shares – equity shares of par value Rs. 5/- each. Authorized share capital is Rs. 26,005 lakhs, divided into 5,201.00 lakhs equity shares of Rs.5/-each. There has been no change in the Issued, Subscribed and Paid up capital of the Company, which is Rs. 8134.90 lakhs as at March 31, 2024.

2. Other Equity

Capital Reserve

The balance as at March 31, 2024 amounted to Rs. 2,223.35 Lakhs, is same as at March 31, 2023.

Securities Premium

The balance as at March 31, 2024 amounted to Rs. 33,064.11 lakhs, same as at March 31, 2023.

Retained Earnings

There is a net deficit of Rs. (34,357.26) lakhs in the Retained Earnings as at March 31, 2024, as compared to net deficit of Rs. 13,414.23 lakhs as at March 31, 2023.

During the year ended March 31, 2024, the Company incurred a net loss after tax of Rs 20,952.60 lakhs, as compared to the net profit after tax of Rs. 1,542.53 lakhs during the year ended March

31, 2023.

Shareholder funds

The total shareholder funds decreased to Rs. 10,932.19 lakhs as at March 31, 2024 as compared to Rs. 30,008.13 lakhs as at March 31, 2024.

The book value per share decreased to Rs. 6.72 as on March 31, 2024, as compared to Rs. 18.44 as at March 31, 2023. Application of Funds

3. Property, Plant and Equipment Addition to gross block

During the year ended March 31, 2024, an amount of Rs. 432.09 lakhs lakhs (including 1.38 lakhs of intangible assets) was added to gross block of fixed assets as compared Rs. 771.17 lakhs, during the previous year ended March 31, 2023.

Deductions to gross block

During the year ended March 31, 2024, there has been deduction from gross block aggregating Rs. 416.35 (including 10.78 Lakhs of intangible assets).

Capital work in- progress

There has been NIL in Capital work in progress.

Capital expenditure commitments

The Company has a capital commitment (net of advances) of Rs. 0.00 lakhs as at March 31, 2024 as compared to Rs. 0.00 lakhs as at March 31, 2023.

Loans (current and non-current)

Loans includes loan and advances to related party Rs. 4.97 lakh Balance 2,971.07 is written off as per provision for doubtful loans and advances (PY Rs 3,197.54 Lakhs) and loan and advances to others Rs. 350 lakhs (PY Rs 350 Lakhs) as at March 31, 2024.

5. Trade Receivables (current and non-current)

Trade receivables of Rs. 2641.97 lakhs as at March 31, 2024 as compared to Rs 7,795.42 lakhs as at March 31, 2023, which are considered good and realizable. Debtors are at 12.29% of gross revenues, representing 45 days of gross revenues for the year ended March 31, 2024, as compared to 28.45% of gross revenues, representing 104 days of the gross revenues for the previous year ended March 31, 2023.

6. Other financial Assets (current and non-current)

Margin money deposits pledged with banks as security for various facilities, are having a carrying amount of Rs 436.88 lakhs as at March 31, 2024 as compared to Rs. 820.47 lakhs as at March 31,

2023. Interest accrued includes Rs. 43.56 lakhs on fixed deposits and Rs. 257.77 lakhs on other deposits as at March 31, 2024, as compared to Rs. 15.42 lakhs and Rs. 213.61 lakhs respectively as at March 31, 2023. Foreign exchange forward contract amounts to Rs. NIL as at March 31, 2024 as compared to Rs. (0.15) lakhs as at March 31, 2023. Security Deposit amounts to Rs. 172.45 Lakhs as at March 31, 2024 as compared to Rs. 205.17 lakhs as at March 31, 2023.

7. Inventories

Inventories amounted to Rs. 2,045.80 Lakhs as at March 31, 2024 as compared to Rs. 2,082.34 lakhs as at March 31, 2023. Inventories are valued at lower of cost or net realizable value.

8. Cash and cash Equivalents

The bank balances in India and outside India include both rupee accounts and foreign currency accounts aggregating Rs. 312.82 lakhs as at March 31, 2024 as compared to Rs. 405.17 lakhs as at March 31, 2023.

The cash equivalents also include Deposits with original maturity of less than 12 months amounted to Rs. 51.88 lakhs as at March 31, 2024 as compared to Rs. 51.18 lakhs as at March 31, 2023. The cash equivalents also include balance in unpaid dividend account amounted to Rs. 6.01 lakhs as at March 31, 2024 as compared to Rs. 6.05 lakhs as at March 31, 2023.

Cash on hand amounted to Rs. 1.71 lakhs as at March 31, 2024 as compared to Rs. 3.34 lakhs at March 31, 2023.

Other bank balance amounted to Rs. 1700.70 lakhs as at March 31, 2024 as compared to Rs. 173.76 lakhs at March 31, 2023. Liabilities

9. Trade Payables (current and non-current)

Trade payables amounted to Rs. 4682.60 Lakhs as at March 31, 2024, as compared to Rs. 4,108.71 Lakhs as at March 31, 2023.

10. Provisions (current and non-current)

Long term and short-term provisions for employee benefits amounted to Rs.188.3 lakhs as at March 31, 2024, as compared to Rs. 159.86 lakhs as at March 31, 2023.

11. Short Term Borrowings

Short-term borrowings amounted to Rs. 6,514.24 lakhs as at March 31, 2024, as compared to Rs. 7,644.13 lakhs as at March 31, 2023.

12. Other financial Liabilities (current and non-current)

Other financial liabilities amounted to Rs. 2796.18 lakhs as at

March 31, 2024, as compared to Rs. 3,432.58 lakhs as at March 31, 2023.

13. Other current liabilities

Other current liabilities amounted to Rs. 839.92 lakhs (including Rs 551.70 lakhs relating to advance from customers) as at March 31, 2024, as compared to Rs. 557.03 lakhs (including Rs. 336.25 lakhs relating to advance from customers) as at March 31, 2023.

III Results of Operations

The Company reported a net loss after tax amounted to Rs. 20,952.60 lakhs during the year ended March 31, 2024, as compared to the profit of Rs. 1,542.53 lakhs during the previous year ended March 31, 2023.

1. Revenue from Operations

Revenues were generated mainly from sale of finished goods, traded goods and services. During the year ended March 31,

2024, the Companys revenue from operations was Rs 21,502.16 lakhs as compared to Rs. 27,350.67 lakhs during the previous year ended March 31, 2023.

2. Other Income

Other income amounted to Rs. 309.80 lakhs for the year ended March 31, 2024, as compared to Rs. 399.79 lakhs during the previous year ended March 31, 2023.

3. Cost of goods sold

Cost of goods sold amounted Rs. 14,552.42 lakhs (67.68% of gross revenue) during the year ended March 31, 2024 as compared to Rs. 13,811.19 lakhs (50.46% of gross revenue) during the previous year ended March 31, 2023. It includes Rs. 14,028.95 lakhs (previous year Rs 12,050.13 lakhs) relating to raw material consumed, Rs. 669.92 lakhs (previous year Rs. 1160.87 lakhs) relating to purchase of traded goods and Rs. (146.45) lakhs (previous year Rs. 600.19 lakhs) relating to increase/ (decrease) in inventories.

4. Employee Benefit Expense

Employee benefitexpense amounted to Rs. 2,120.57 Lakhs during the year ended March 31, 2024, as compared to Rs. 2,150.07 lakhs during the previous year ended March 31, 2023.

5. Other Expenses

Other expenses amounted to Rs. 3,027.82 lakhs during the year ended March 31, 2024 as compared to Rs. 3,647.65 lakhs during the previous year ended March 31, 2023.

6. Depreciation

Depreciation and amortization amounted to Rs. 1,324.96 lakhs during the year ended March 31, 2024 as compared to Rs. 1,516.03 lakhs during the previous year ended March 31, 2023.

7. Finance Cost

Finance Cost amounted to Rs. 1,032.23 lakhs during the year ended March 31, 2024 as compared to Rs. 1255.36 lakhs during the previous year ended March 31, 2023. Finance cost includes Rs. 86.62 lakhs on interest on Cash credit facility as compared to Rs. 115.90 lakhs, during previous year ended March 31, 2023.

8. Exceptional (expense)/income

Exceptional item, Income/(Expense) for the year ended March 31, 2024 represents Balances written back Rs. 809.63 lakhs, gain on foreign exchange on items other than operational Rs. 43.40 lakhs, Loss on sale of Property, Plant and Equipment Rs. 0.66 lakhs, Provision for doubtful debts & balances written off related to operation (Rs. 4111.40 lakhs), Property plant and equipment written off (Rs. 54.11 lakhs), Loans and other receivables written off (Rs. 456.39 lakhs), provision for diminution in value of investment and loans and advances (Rs. 18,382.44 lakhs)

9. Tax Expenses Income Tax

During the year ended March 31, 2024, the Company has made nil tax provision and an adjustment of tax relating to earlier years of Rs. 3.21Lakhs.

Deferred Tax

During the year ended March 31, 2024, the Company has created deferred tax charges by Rs. -2,310.17 lakhs.

10. Earnings Per Share (EPS) after exceptional item

Basic and Diluted EPS

Basic and Diluted EPS after exceptional item decreased to Rs. -12.88 per share for the year 2024, from Rs. 0.95 per share for the year ended March 31, 2023. The weighted average shares used in computing EPS is 162,697,971 for the year ending March 31, 2024, same as year ending March, 2023.

11. Segmental Profitability

(Amount in Lakhs)

Segment	YE Mar 24	YE Mar 23	%age Increase/
Results			(Decrease)
	Manufacturing
Revenues	13,764.34	21,411.45	(35.77)%
EBIT	-21.32	2,852.03	(100.74)%
EBIT (%)	0.15%	13.30%
	Services
Revenues	7,737.82	5,939.22	30.28%
EBIT	1,005.28	872.75	15.18%
EBIT (%)	12.99%	14.69%

IV Consolidated Financial Performance

Companys revenue from operations amounted to Rs. 22,028.18 lakhs during the year ended March 31, 2024, as compared to Rs. 28,634.17 lakhs in the previous year ended March 31, 2023.

Manufacturing revenue is Rs. 14,290.36 lakhs during the year ended March 31, 2024 from Rs. 22,694.95 lakhs during the previous year ended

March 31, 2023, a decrease of 37.03% as compare with previous year ended on March 31, 2023.

The Profit before interest, depreciation, taxes, amortization and exceptional items amounted to Rs. 1,758.37 lakhs (8% of revenue) during the year ended March 31, 2024 as against Rs. 5,045.76 lakhs (18% of revenue) in the previous year ended on March 31, 2023.

Profit before tax and exceptional item amounted to Rs. (8,278.85) lakhs (37.58% of revenue) during the year ended March 31, 2024 as against loss of Rs. 743.97 lakhs (2.60% of revenue) in the previous year ended on March 31, 2023.

Loss after tax and exceptional item is Rs (7,130.52) lakhs (32.37% of revenue) during the year ended March 31, 2024 as against Rs. (1357.68) lakhs (4.74% of revenue) in the previous year ended March 31, 2023.

KEY FINANCIAL RATIOS (CONSOLE)

	Ratios	FY24	FY23	Difference	Reason for Change
a.	Debtors Turnover Ratio	6.98	4.88	43.08%	Ratio is improved due to Decrease in debtors and better realization from Trade receivables of Holding Company.
b.	Inventory turnover Ratio	6.45	5.32	21.22%	Group has significantly reduced the holding period of inventory due to which ratio has improved.
c.	Interest Coverage Ratio	-3.75	1.40	-475.00%	Ratio has decreased due to decrease in earnings before interest and tax.
d.	Current Ratio	0.32	0.31	2.02%	Ratio has increased due to increase in Current Assets as compared to Current Liabilities.
e.	Debt Equity Ratio	4.22	2.42	74.09%	Ratio has increased due to increase in exceptional loss and decrease in profit.
f.	Operating Profit Margin %	-33.82%	17.44%	-294.00%	% has decreased due to increase in Cost of goods sold
g.	Net Profit Margin % or Sector - Specific equivalent ratios, as applicable.	-32.12%	-4.69%	584.00%	% has decreased due to increase in exceptional loss.
h.	RONW%	-146.47%	-15.46 %	-1047.61%	% has decreased due to increase in exceptional loss and decrease in equity.