Conart Engineers Ltd Management Discussions

Company Overview

The company was over 50 years of expertise in the engineering and construction sector offering engineering and construction solution. The company has proven track record of delivering projects in industry

Residential Segment

The Indian residential segment has undergone major structural transformations over the last decade. The sector saw multiple challenges including demonetization, implementation of Goods and Services Tax (GST) and Real Estate (Regulation and Development) Act, 2016 (RERA), Non-Banking Financial Companies (NBFCs) crisis and the COVID-19 pandemic. However, today, the sector is touching new highs with the support of strong policy interventions such as RERA which have made the sector more transparent and customer centric; a strong economic momentum and an ardent desire of owning and upgrading homes. As per the recent report, published by Knight Frank and Confederation of Indian Industry, Indias urbanization rate over the next decade is expected to reach 42.50% from 36.50%, which implies a significant rise in demand of households and expansion of cities, across the country.

It is estimated that the share of leading developers has almost doubled in the last 7 years. This trend is expected to continue as the industry grows.

Office segment

The office segment witnessed robust growth in activity(ies), as an outcome of robust domestic growth as well as renewed demand from the occupiers.

The luxury segment continued to experience rising resurgence, primarily driven by rising income levels, aspirational lifestyle and growing consumption trends in the country. Realizing the notable growth in the luxury segment, numerous foreign retailers have entered and continue to explore the country to capitalize on this growth. It is expected that this segment should continue to exhibit strong growth momentum, though demand seems to be primarily driven for quality malls at established locations.

Indian infrastructure industry

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10 to 15 years back by its robust democracy and strong partnership.

Indias economy is projected to grow by 6.6% in 2025, driven by robust consumption, investment and strong export growth in services and goods While global challenges persists, Indias focus on infrastructure and export growth fuels optimism.

Capital expenditure on infrastructure development is expected to have strong multiplier effect on growth in the coming years. in India the public sector continuous to play a pivotal role in funding large scale infrastructure projects, physical and digital connectivity and social infrastructure including improvement in sanitation and water supply in the medium run increased capital spending on infrastructure and asset building projects is set to increase growth multiplier

Outlook

Under the union budget 2025-26 the Centre has re-emphasized its strategic focus on Viksit Bharat 2047 andinfrastructure development In order to foster private sector engagement, the infrastructure related ministry will now come up with a three year pipeline of the projects in the PPP mode. The Indian government with also set up an Urban Challenge Fund of rupees 1 trillion to implement the proposals for ‘Cities as growth Hubs, ‘Creative Redevelopment of Cities and ‘Water and Sanitation. The centre will also launch the second asset monetization program for 2025-30 to mobilize funds up to rupees 10 trillion to fund new projects

Development of infrastructure has a multiplier effect on the demand and efficiency of transport and increase commercial and entrepreneurship opportunities.

A new Asset monetization plan is set to unlock value for public assets, while the three year pipeline for PPP model projects will encourage private sector engagement. Plan for asset monetization for 2025-30 to be launched to plough back capital of INR 10 Lakh crore in new project.

PERFORMANCE DURING THE YEAR

Our Company is actively executing industrial projects in private sector. Most of these projects are in nearby area. The Company has completed seven Industrial Projects during the year under review and seven projects are under development stage and will be completed in – 2025-26.

OVERALL FINANCIAL PERFORMANCE

Particulars	Amount Rs. in Lacs	Remarks
EBITDA	443.14
PAT	309.68
EPS	4.27
SHARE CAPITAL	314.00
DEBT	-
NET WORTH	3212.48
FIXED ASSETS	522.87
INVENTORY	903.42
DEBT EQUITY RATIO	-
CURRENT RATIO	3.56	Above Average
RETURN ON EQUITY	0.09	Marginal Low compared to Pr year
INTEREST COVERAGE RATIO	-	No Borrowing

Highlights of Financials of 2024-25

The net worth of the Company increased from Rs. 2902.80 Lacs as on 31^st March, 2024 to Rs. 3212.48 Lacs as on 31^stMarch, 2025 owing to increase in reserves and surpluses.

Current assets of the Company increased from Rs. 2690.56 Lacs as on 31^st March, 2024 to Rs.3440.81 Lacs as on 31^st March, 2025. The current ratios of the Company stood at 3.56 in the year under review as compared to 5.95 in 2023-24.The Company has not borrowed funds from banks or financial institutions.

Inventories including raw materials and work in progress among others increased by 116.25% from Rs. 417.76 Lacs as on 31^st March, 2024 to Rs. 903.42 Lacs as on 31^st March, 2025. Inventory cycle days in FY 2023-24 was 43 days of turnover as against 40 days equivalent in 2024-25.