DMR Hydroengineering & Infrastructures Ltd Management Discussions

Renewable Energy in India

As India accelerates its transition towards a sustainable future, its renewable energy (RE) sector has witnessed unprecedented growth. In 2024, the country made significant strides in solar and wind energy installations, policy advancements, and infrastructural improvements, setting the stage for ambitious targets in 2025. With a commitment to achieving 500 GW of non-fossil fuel-based energy capacity by 2030, India is emerging as a global leader in clean energy. As on 20^th Jan 2025, Indias total non-fossil fuel-based energy capacity has reached 217.62 GW.

Hydroelectric Power and Pumped Storage Projects

Hydroelectric power projects with aggregate capacity of 15 GW are under construction in the country. The hydro capacity is likely to increase from 42 GW to 67 GW by 2031-32, marking an increase of more than 50% of present capacity.

Moreover, given the ongoing energy transitions in the country, the development of Pumped Storage Projects (PSPs) assumes importance for providing greater inertia and balancing power to the grid. PSPs are also known as ‘the Water Battery, which is an ideal complement to modern clean energy systems.

The Central Electricity Authority (CEA), under the Ministry of Power, Government of India, has concurred Detailed Project Reports (DPRs) of 6 Hydro Pumped Storage Projects (PSPs) of about 7.5 GW in record time during 2024-25, marking a key milestone in Indias ongoing commitment to developing advanced long term energy storage solutions.

CEA has made ambitious plan to concur minimum 13 PSPs of about 22 GW during 2025-26. Most of these PSPs are targeted to be commissioned in 4 years and latest by 2030. Development of these projects shall boost energy storage capacity drastically in the country, making a major contribution to grid reliability and supporting Indias ambitious renewable energy goals. This underscores Indias commitment for facilitating the transition towards a more sustainable and resilient power system.

Engineering Consulting Services in India

As a result of above trends in energy generation and consumption, there as arisen a huge need for a quality consulting services in the country to fulfil the engineering needs of the energy sector. While there are many international engineering consulting companies across Europe, US, Australia etc, not all of them are able to compete in India since the solutions to be provided should account for unique challenges and workings of India as well as a competitive cost structure. This is where DMR, with its unique problem- solving approach and its ability to leverage young talent as well as experienced talent, is able to provide a formidable and innovative services in the field of engineering consulting.

Domestic Industry Outlook in Renewable Energy

Company Overview

Our Company deals in Business to Business (B2B) category and caters to both domestic and international markets. Domestically, we have strong presence across many 15+ states in India with multiple projects in J&K, Uttaranchal, Himachal Pradesh, Rajasthan, Arunachal Pradesh, Maharashtra, Odisha, Jharkhand, Madhya Pradesh, Chhattisgarh etc. Internationally, DMR has done projects in Bhutan, Nepal, Lao PDR, Vietnam, Cambodia, Nigeria, Tanzania, Uganda and several other countries.

Opportunities

i) Increase presence in small hydro, tunnels and PSP

ii) Focus on global assignments with JV/collaboration with international partners

iii) Governments focus on building renewable energy and sustainable infrastructure in the Country;

Threats

i) Retention of existing resources / knowledge personnel;

ii) Change of government policy or economic downturn or other factors adversely affecting investments on infrastructure in India;

iii) Increased competition from new and existing players in the business;

Outlook

The outlook of the business of our Company is bullish. The order book of the Company is expanding. Further, the Company also has a steady growth in its domestic as well as international business, and the management is exploring new geographical area to expand its international business. Thus, we look forward to maintain right balance of domestic and international business. We are hiring more workspace for our expanding workforce. Our trained manpower strength is also increasing in tandem with our business growth. The Companys focus on corporate governance has sharply increased after becoming a public listed company. We strive to practice the best ethical business environment in the Company.

Risk Management

In DMR listed below are some of the key risks identification, anticipated impact on the company and mitigation strategies.

Key Risks	Impact on the Company	Mitigation Plan
Legal, Regulatory and Compliance	The risk arises on account of noncompliance or breach of laws or regulations which the entity is supposed to adhere. It may result in	A program on statutory compliance is in place to track all applicable regulations, obligations and corresponding actions to ensure
Risk	deterioration of reputation in public eye.	compliance.
Business Growth Risk	The risk arises if the organization fails to undertake advance planning, testing and effective execution of critical processes, to ensure the ability to recover and maintain business operations in the event of a disruption due to internal, third party, physical, natural circumstances, etc.	Pro-active business continuity plans prepared, identifying new business opportunity, competent resources for business development and engagement with visionary leaders for guidance on growth.
Talent & Culture Risk	The companys ability to attract, develop, motivate, and retain talent is critical to its business success. A highly motivated and skilled resources are a backbone of the organization. Effective and efficient people management help business gain a competitive advantage. A risk that could arise if organizations fail to hire and manage resources appropriately.	The Companys objective is to create a workplace that promotes transparency and collaboration. The Company has implemented a comprehensive training strategy to address the development requirements of personnel at all organizational levels. This provides solutions for professional, technical, functional, and leadership development. The HR team strives ceaselessly to reach out to every employee to support their development and provide internal opportunities for career advancement. This enables them to accomplish their objectives through the development of comprehensive career and talent development plans.
Financial Risk	The risk which has some direct financial impact on the entity such as Taxation Risks, Market Risk, Foreign Currency Risk, Credit Risk, Liquidity Risk, Operational Risk, Country Risk.	Managing financial risk through a four-stage process such as Identifying potential financial risks, Analyzing and quantifying the severity of these risks, deciding on a strategy to manage these risks and monitoring the success of the strategy.
Environment, Social and Governance (ESG) Risk	ESG is the social compass of an organization and is used by conscious investors and clients for strategic partnerships. A low sustainability score will impact business growth and lead to financial and reputational impact.	DMR taken various precautionary steps towards improving and developing of ESG framework by focusing on Sustainability Initiatives, Business Ethics, ESG Reporting, ESG Activities, Human Rights Management.
Employee Health & Safety Risk	Providing a healthy and safe working environment will improve employee productivity, retention and avoid any reputation impact. It also helps business gain a competitive advantage.	Awareness and training programs, and support for physical and psychological issues, taken medical insurance of all permanent employees.
Fraud and Anti Bribery and AntiCorruption (ABAC) Risk	Integrity is of utmost priority for safeguarding market confidence and building client trust. Noncompliance to ABAC requirements or fraud instances can expose an organization to reputational and financial damage.	DMR Business Code of Conduct is based on integrity and transparency manner. Further, DMR conduct ABAC program, Risk Management program for ensures a strong governance in the Company.
Corporate Governance Risk	Corporate governance is critical for the success of DMR and any risks can result in reputation loss and damage to stakeholder trust and business disruption.	Periodical internal reviews, audit and presentations on changes introduced by regulators.
Climate Change	Climate change is a threat to the Companys infrastructure that may disrupt operations and potentially impact the safety and well-being of employees.	Business continuity policy and emergency response plans are in place.

Internal Control Systems

The companys internal control systems are adequate and provide, among other things, reasonable assurance of recording transactions of operations in all material respects and of providing protection against significant misuse or loss of company assets.

The Internal audit is being conducted to assess the adequacy of the internal controls procedures and processes, and their reports are reviewed by the Audit Committee of the Board. Policy and process corrections are undertaken based on inputs from the internal auditors.

Discussion on Financial Performance with respect to Operational Performance

As of March 31, 2025, the Company witnessed a growth of 49.09% in its revenue from operations i.e., from Rs. 702.14 Lakhs in the previous financial year 2023-24 to Rs. 1046.85 Lakhs during the financial year 2024-25 and the net profit of the Company grew by 10.46% from Rs. 154.44 Lakhs in the previous financial year 2023-24 i.e., to Rs. 170.59 Lakhs in the financial year 2024-25.

Human Resources

DMR firmly believes that its growth is predominantly attributed to its human capital. In light of a dynamic operating environment, employees are a crucial part of the Company for developing competencies, strategic planning, building up systems and creating a growth- oriented organizational culture. Our ability to recruit, train, retain and deploy our workforce of Engineers Professionals influences our profit margins and the results of our operations. The Company had a total workforce of 70 permanent employees as of 31st March 2023.

The Company believes that Human Resource is the most important resource at its organization which pushes the Company towards sustainable growth. The team is a balanced mix of experience and youth which allows a holistic approach to varied situations. We have continuously focused on training and development to the new Engineers appointed in the Company.

Our Company has an experienced and talented pool of employees who contribute to enhancing the business efficiency, devising strategies, setting up systems and responding to the evolving business needs.

Training is an imperative and a key cost element. The ability to train our people in the right place and invest in it ahead of time is a very important element in managing their deployment to projects and also motivating them to stay engaged.

The Company has established a Whistleblower Policy that encourages directors and employees to report instances of unethical behavior, actual or suspected fraud, or violations of the code of conduct to the Company. This policy is aimed at maintaining DMRs employees well-being and ensure that no one is victimized or harassed.

All the above aspects of people and its correct management is critical to the continues success of the Company.

Talent Acquisition

Out of the numerous challenges DMR has remarkably confronted the necessity of skilled and professional manpower as per the requirement of its business through use of reliable means of engagement and attractive remuneration at par with the market. The acquisition policy adopted for attracting talents as per needs of the business never put the organization yearning for requirement. Moreover, the talent recruited are well scrutinized for their knowledge, experience and potential before inducting into the organization. The average tenure of stay by an employee in the organization from induction is around 3 years at the level of executives.

Talent Management

DMR aims to attract, develop, motivate and retain diverse talent, that is critical for its competitive differentiation and continued success. The companys talent management strategy seeks to maximize the potential of every employee by creating a purpose-driven, inclusive, stimulating, and rewarding work environment, delivering outstanding employee experience, while fueling business growth. The Company strives to create a vibrant workplace and an engaged workforce by encouraging four behaviors: follow your passion, stay hungry, commit to lifelong learning and thrive together.

Talent Development

The Company considers its human capital to be the most important asset and treats its people with respect and dignity in all situations. DMR strongly believes that every employee should have access to market relevant learning opportunities for career growth. The company has adopted a segmented approach to learning to ensure this and relies primarily on target oriented mentorship, experiential learning and on job training.

Culture and Diversity

DMR never distinguishes work, conversations or conduct of its employees on the basis of Age, gender, disability, race or ethnicity. Promotion of mutual trust and respect amongst its employees are given utmost importance. The gamut of employees of DMR belongs to diverse states and socio-economic background of the country. All employees are encouraged to participate actively in discussions, innovative talks and idea generation in all work fronts and any show or act to display of harassment is not tolerated.

Key Financial Ratios

S. No. Particular	Numerator	March 31, 2025	March 31, 2024	Reason for Movements
	Denominator
(a) Current Ratio	Current Assets	3.24	3.22	Movement is not more than 25%, so that reason is not required to be disclosed.
	Current Liabilities
(b) Debt-Equity Ratio	Debt	0.03	0.03	Movement is not more than 25%, so that reason is not required to be disclosed.
	Equity
(d) Return on Equity Ratio	Profit After Tax	17.32%	22.83%	Movement is not more than 25%, so that reason is not required to be disclosed.
	Average Shareholders Equity
(e) Trade Receivables turnover ratio (in times	Net Credit Sales	2.36	2.34	Movement is not more than 25%, so that reason is not required to be disclosed.
	Average Trade Receivables
(f) Net capital turnover ratio (in times)	Turnover	1.83	2.10	Movement is not more than 25%, so that reason is not required to be disclosed.
	Working Capital
(g) Net profit ratio	Profit After Tax	16.30%	22.00%	This Ratio decreased due to increase in Sales
	Total Sales
	Operating Profit			This Ratio decreased due to increase in Capital (Securities Premium)
(h) Return on Capital employed	Total Capital Employed	18.04%	26.02%

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations.

For and on behalf of the Board of Directors of DMR Hydroengineering and Infrastructures Limited

Sd/-	Sd/-
Subhash Chander Mittal	Neelam Mittal
Chairman & Managing Director	Whole-time Director
DIN:02861072	DIN:02861064
Place: Faridabad
Date: 14.07.2025