Bhudevi Infra Projects Ltd Management Discussions

Industry review:

The Indian real estate sector remains a critical contributor to the economy, accounting for nearly 18% of GDP when combined with construction. Luxury home demand in India remained strong in 2025, with sales of Rs. 4 crore (US$ 0.5 Million) and above rising nearly 28% YoY across seven major cities. Residential housing continued to dominate activity, with luxury home sales across the top seven cities rising by more than 50% in 2024. However, the first half of 2025 reflected a mixed trend: while housing sales across Tier-1 cities were valued at approximately 3.6 lakh crore, volumes dipped by about 4% to 2.53 lakh units, even as average prices rose from 1.24 crore to 1.42 crore. The real estate sector shows promise with a projected 9.2% CAGR from 2023 to 2028. 2024 is expected to drive growth with urbanization, rental market expansion, and property price appreciation. Emerging asset classes such as warehousing, logistics, and data centres are also expanding rapidly, with data centre capacity projected to grow by 15–18 million sq. ft. by 2025, reflecting new avenues of institutional investment.

(Source: Economy of India- Wikipedia, IBEF – Real Estate Industry in India)

Opportunities and Threats:

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys well accepted brand, contemporary architecture, well-designed projects in strategic locations, strong balance sheet, and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your company is ideally placed to further strengthen its development potential by acquiring new land parcels.

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the many challenges such as unanticipated delays in project approvals, availability of accomplished and trained labour force Increased cost of manpower, rising cost of construction, growth in auxiliary infrastructure facilities, over-regulated environment

Outlook:

The Indian construction and real estate sector continue to be a favoured destination for global investors. Several large global investors, including a number of sovereign funds, have taken the first move by partnering with successful local investors and developers for investing in the Indian real estate industry.

Under such circumstances, business gives right signals of growth & improvement and to avail of all such growth opportunities. The Board, therefore, considers that the Company should be managed in controlled manner.

Risks and concerns

The factor like increased cement & steel cost, power cost; increase in labour cost and transportation cost could contribute to inflation. The Company considers good corporate governance as a prerequisite for meeting the needs and aspiration of its shareholders. The main risk to the Company which may arise is mainly due to Government policies and decisions, Fluctuations in prices of Raw materials, Exchange rate fluctuations, Industry demand etc.,

Segment or Product wise Performance

The Company is operating in one segment i.e. construction activity. The revenue from operations (i.e. from construction activities) is Rs. 362.15 lakhs for the financial year ended March 31, 2025

Internal Control Systems and their Adequacy

Your Company has appropriate internal control systems for business processes, efficiency in its operations, and compliance with all the applicable laws and regulations. Regular internal checks and audits ensure that the responsibilities are being effectively executed. In-depth review of internal controls, accounting procedures and policies of Company is conducted. Your Company has adopted adequate internal control and audit system commensurate with its size and nature of business. Internal audit is carried on a quarterly basis. Internal auditors work with all levels of management and the report is placed before the audit committee. The audit committee after reviewing the findings and suggestions directs the respective departments to implement the same.

Discussion on Financial Performance with respect to Operational Performance:

1. Income from operations is Rs. 358.05 lakhs

2. Total Income: Rs. 358.11 lakhs

3. Share Capital:

The paid-up share capital as on March 31, 2025 is Rs. 458,92,380/-

4. Net Loss:

The Companys operating Profit/loss of Rs. 33.40 Lakhs during the year

5. Earnings Per Share (EPS):

The Earning Per Share for the Financial Year 2024-25 is Rs. 0.73 per share. Your directors are putting continuous efforts to increase the performance of the Company and are hopeful that the performance in coming year will overcome from the present situation.

Human Resource:

Your company recognizes that the human resources are the most crucial factor for achieving sustained growth over the years. The management considers its highly motivated and passion driven workforce as its partner in the growth of the company.

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 therefor, including:

S.No.	Particulars	FY 2024-25	FY 2023-24	Change	Reason for Change
1.	Current Ratio	0.90	0.60	50%	Due to increase in inventories which in turn effected the total current assets.
2.	Debt Equity Ratio	6.71	0.86	680%	Due to repayment in borrowings and increase in profit of the Company.
3.	Return on Equity Ratio	0.33	1.37	-76%	Due to Higher Operating Cost from the Construction project.
4.	Trade Payable Turnover Ratio	11.08	27.70	-60%	Due to recognistion of revenue from the construction project in the FY 25-26 and incurring of s u b c o n t r a c t i n g expenses in the current financial Year
5.	Net Profit Ratio	0.09	0.25	-63%	Due to higher operating cost from the construction projects, which inturn decreased the net profits of the company.
6.	Return on Capital employed	0.52	18.84	-97%	Due to higher operating cost from the construction projects, which inturn decreased the net profits of the company. Repayment of loans taken and increase in inventory alos effected the change in the return on capital employed.
7.	Debt service coverage Ratio	0.47	4.29	-89%	Due to decrease in earnings of the company and increase in debt obligation due to repayment.
8.	Inventory Turnover Ratio	-	-	-	-
9.	Interest Coverage Ratio	-	-	-	-
10.	Debtors Turnover	-	-	-	-
11.	Net Profit Ratio %	0.09	0.25	-63%	Due to higher operating cost from the construction projects, which in turn decreased the net profits of the company
12.	Operating Profit Margin	0.49	0.58	-15.5%	Due to change in inventory
13.	Return on Net Worth	0.52	18.84	-97%	Due to higher operating cost from the construction projects, which in turn decreased the net profits of the company.
					Repayment of loans taken and increase in inventory also effected the change in the return on capital employed
14.	Net Capital Turnover Ratio	-3.30	-2.57	28%	Due to recognized of revenue from the construction projects in FY 25-26 and increase in closing inventories.

Disclosure of Accounting Treatment:

The Company follows the guidelines of Accounting Standards referred to in Indian Accounting Standards issued by the Institute of Chartered Accountants of India.

Cautionary Statement:

The statements in this management discussion and analysis describing the outlook may be "forward looking statement" within the meaning of applicable laws and regulations. Actual result might differ substantially or materially from those expected due to the developments that could affect the companys operations. The factors like significant change in political and economic environment, tax laws, litigation, technology, fluctuations in material cost etc. may deviate the outlook and result.

For and on behalf of Board of Directors of

Bhudevi Infra Projects Limited

Sd/-

Bhasker K Bhatt

Chairman & Managing Director

DIN:09463033

 

Date: September 03, 2025

Place: Hyderabad