DRA Consultants Ltd Management Discussions

ORGANIZATION PROFILE

DRA Consultants Limited is engaged mainly in the business of engineering consultancy in India. Your Company is known for technical expertise, reliability and more importantly for providing innovative solutions to the most complicated problems. It is an ISO 9001 2015, ISO 14001 2015 and ISO 45001 2018 certified company. DRA holds expertise in Water Supply, Wastewater Treatment, Sewerage System, Waterfront Development and Water Monitoring, etc. DRA provides technical, commercial, legal & financial advisory services in sector include setting up sustainable water & wastewater tariff & bylaws for Urban Local Bodies/Boards. We also have unparalleled experience in project management and hold expertise in accomplishing every task from conceptualization of a project to its commissioning. We are involved in Preparation of Master Plans, Feasibility Report, Investment planning, Procurements, Bid preparation, Bid process management, execution planning, Quality assurance plan, cost control, Project schedules, Commissioning, Trial Runs, Performance monitoring etc. DRA has vast experience in Industrial Utilities and Urban Infrastructure Projects. More than 20,000 million INR worth projects are undertaken by DRA as Project Management Consultant.

Municipal corporations have turned towards DRA to solve their water woes from years. With several projects working successfully all over the country DRA has proved its worthiness in return for the confidence show by government agencies and private sector companies. DRA is amongst the first technical service provider in India for conducting Municipal / Industrial / Building Water Audits. Like energy DRA has conducted many successful investments grade Water audits. The Water Audit project of DRA was first in urban sector implemented successfully under National Urban Renewal Mission of Govt. of India. NRW project of DRA has been given "National Urban Water Award" by president of India.

Your Company also provides wide range of advisory services in Urban and Industrial sector with specialized expertise in 3-R (Reduce Recycle - Reuse), 3-P (Public Private - Partnership) & Performance audits apart from other fortes. DRA is a technical service provider in India for conducting Municipal / Industrial / Building Water Audits. The Company has conducted many successful investments grade water audits and energy audits. The water audit project was first in urban sector implemented successfully under National Urban Renewal Mission of Govt. of India.

NRW project has been given -National Urban Water Award by President of India. Your Company is uniquely placed in advisory services to urban local bodies across India with successful track record of more than 20 years.

One of our signature projects is the 24x7 water supply scheme for Nagpur Municipal Corporation under the Jawaharlal Nehru National Urban Renewal Mission. This unprecedented project, which ensures continuous potable water supply, has attracted international attention, with research teams from countries like France visiting to learn from its scale and success. DRA is proud to serve as the consultant from the projects conceptual stage.

Additionally, we have secured Rs. 6000 Cr under AMRUT 2.0 for Water Supply and Sewerage projects. This funding will enhance water supply and sewerage systems in targeted regions, with our consultancy services ensuring effective implementation and management.

In the past, your company has successfully provided consultancy services in the water supply sector for major metropolitan areas, including cities with populations exceeding one million, such as Nagpur, Delhi, Mumbai, Thane, Ahmedabad, Chandigarh, and Vizag. These services covered a broad spectrum of urban development and planning initiatives designed to tackle the unique challenges each city faces in managing its water supply systems. DRAs expertise in executing large-scale projects has significantly contributed to the growth and modernization of these urban centers.

Currently, DRA is further expanding its consultancy services to include both the water supply and sewerage sectors in other prominent cities such as Indore, Raipur, Pimpri Chinchwad, Chennai, and Nagpur. This ongoing engagement further solidifies DRAs standing in urban development consulting. The projects currently underway in these cities involve comprehensive planning and strategic implementation, with the goal of enhancing urban infrastructure, improving governance, and promoting sustainable development."

SERVICE SECTOR IN INDIA:

The services sector is not only the dominant sector in India ‘s Gross Domestic Product (GDP), but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India ‘s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.

CONSULTANCY SERVICES:

Consultancy services are emerging as one of the fastest growing service segments in India, cutting across different sectors with some overlapping. A large number of consultancy firms and individual consultants are operating in India at various levels across the sectors. Technical consulting constitutes about two-thirds of the total consulting market, while management consulting constitutes about one-third. Technical consulting in India, which mainly consists of engineering consulting, is much stronger than management consulting in terms of the number of players, consulting capabilities and size of consulting firms.

The Government of India has taken many initiatives to help the consulting industry, including the Marketing Development Assistance and Market Access Initiative schemes; coming out with guidelines on broad policies and procedures for selection, contracting and monitoring of consultants; and initiatives aimed towards capacity development of domestic consultants and sensitization of client organizations. Recent initiatives taken by the government such as Make in India, development of smart cities, skill development, along with the focus on improving industrial policies and procedures, have opened up a plethora of opportunities for consultants. Some of the key areas with enormous potential for Indian consultancy firms include building of urban & transport infrastructure, power generation, renewable energy, electricity transmission & distribution, roads & bridges, water supply & sewerage, IT & telecom, health care and manufacturing.

OPPORTUNITIES AND STRENGTH:

• Experienced Management
• Quality Technical Staff
• Innovative Consulting Services
• Dynamic Sector
• International Projects

• Specialized Manpower requirement
• Delayed payment cycle
• Changes in Government and Tax policies

KEY FINANCIAL RATIOS

Financial performance of the Company has been good despite of an adverse economic environment and your company is doing well on fulfilling its objectives.

INTERNAL CONTROLS AND THEIR ADEQUACY

The Company has a robust internal control system and is supervised periodically by competent professional managers. Periodically, the systems are reviewed and aligned to the needs of the growing needs of the Company. Both external and internal auditors, who have access to all records and information about our Company, regularly check companys internal control systems. The Board and the management review the findings and recommendations of the auditors and take corrective actions wherever necessary. The Board considers risk assessment, identification of mitigating actions and internal control procedure to ensures that business risks are identified, managed and regularly reviewed at all levels and that Directors are periodically apprised of the key risks.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

The Company has recorded higher volumes, operation profit and improved on several operational activities primarily because of the commitment, initiatives and high energy demonstrated by the employees at all levels. Human Capital is the most valuable resource of an organization. Development of human capital has always been the thrust area of the Company. Industrial relations are geared at developing and aligning the operatives to the overall vision of the organization. Your Company takes adequate steps for maintaining safety and healthy environment for the workers and the Directors place on record their sincere appreciation for the excellent team work with which the workers and the staff of the Company at all levels contribute for the better performance of the Company. The total number of people employed and persons on contracts basis by the Company as on 31-Mar-2024 was 128.

OPERATIONAL PERFORMANCE

During the year under the review, Revenue from operations of the Company stood at Rs. 19.62 Crs. as against the turnover from operations of Rs. 15.04 Crs in the previous year. Net profit for the period stood at Rs. 2.38 Crs as against Rs. 1.73 Crs Crs.in the previous year.

DISCLAIMER

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand-supply conditions, finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts. The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.