Drone Destination Ltd Management Discussions

INTRODUCTION

India Macroeconomic Overview & future outlook

India ascended to the position of the worlds fifth-largest economy at market exchange rates, surpassing the U.K. in 2022. India will be a $ 4 trillion economy in 2024-25 and surpass Japan by early next fiscal to become the worlds fourth largest economy, as per Economic Advisory Council to the Prime Minister. Further Projections indicate that by 2027, India will become the third-largest economy globally.

Indias GDP per capita is predicted to reach US$ 3,720 by CY28

According to the IMF, Indias GDP per capita is anticipated to be at US$ 3,720 by the end of CY28.

In the fiscal year 2023-24, Indias economy showed resilience and growth despite global economic challenges. Indias real GDP growth for FY24 is projected at 8.2%, up from 7.0% in FY23. This growth has been primarily driven by robust domestic demand and investment activity. CPI inflation slightly eased to 4.75% in May 2024. Private consumption showed muted growth due to factors like subdued monsoon and food inflation.

Overall, Indias economy in 2023-24 demonstrated robust growth driven by strong domestic demand and strategic investments in infrastructure, despite facing external challenges such as inflationary pressures and global economic uncertainties.

Over the next decade to decade and a half, Indias economic trajectory is expected to place it among the leading global economies, supported by rising demand, robust sectoral growth, and increased private consumption.

In another report by Ernst & Young report, India is likely to cross the critical thresholds of US$5, US$10 and US$20t in market exchange rate terms in FY2028, FY2036 and FY2045 respectively to become a developed economy. Indias per capita income in market exchange rate terms is expected to cross US$13,000 by FY2045, putting it in the ranks of developed economies. By FY2048, it is expected to reach a level of US$15,602.

Major Factors Propelling Economic Growth in India

Strong Domestic Demand: Robust private consumption growth, driven by rising incomes and an expanding middle class. Private consumption expenditure grew by 3.5% year-over-year in Q3 of FY 2024, according to Deloitte. Also, demand for luxury and premium goods and services is growing faster than demand for basic goods.

Robust Investment Activity: Private investment grew by 10.6% year-over-year in Q3 of FY 2024, indicating a strong revival in the private capital expenditure cycle. Initiatives like the National Monetization Pipeline aim to unlock value in Brownfield infrastructure assets and attract private investment.

The IMF suggests that reforms to liberalize foreign investment and boost exports could further support growth.

Moreover, the Budgeted expenditure classified by the government as capex is projected to increase to about 11 trillion in 2024-25, almost 4.5 times the level in 2014-15.

Moderating Inflation: Inflation has been on a downward trajectory, with retail inflation at 4.83% in April 2024.

This provides a stable environment for businesses and consumers, encouraging spending and investment.

Manufacturing Resurgence: The manufacturing sector grew by 11.6% year-over-year in Q3 of FY 2024, driven by initiatives like the Make in India program and PLI schemes. The governments push towards self-reliance (Aatmanirbhar Bharat) is boosting domestic manufacturing capabilities.

Services Sector Resilience: The services sector, which accounts for a significant share of Indias GDP, grew by 7% year-over-year in Q3 of FY 2024.

The IT and IT-enabled services sector continues to drive growth, supported by rising global demand for digital solutions.

With the easing of Covid-19 restrictions, contact-intensive services like tourism, hospitality, and entertainment have witnessed a strong recovery.

The travel market in India is projected to reach USD 125 Billion by financial year 2027.

Resilience to Global Headwinds: Despite global economic uncertainties, geopolitical tensions (Russia-Ukraine War), disruption in supply chains (Red Sea Crisis) and tightening financial conditions in major economies like the US, Indias domestic demand has remained relatively resilient.

In 2023, world food prices dropped significantly from their 2022 highs. However, Indias food inflation remained high at 9.5% in December 2023, contrasting with global deflation of -10.1%.

This insulation from external shocks has helped sustain growth, even as major economies face slowdowns or recessions.

Supply Chain Diversification: Amid global supply chain disruptions, India has emerged as an attractive alternative destination for manufacturing investments, particularly in sectors like electronics and pharmaceuticals. Trade agreements like India-UAE Comprehensive Economic Partnership Agreement (CEPA) have facilitated this supply chain diversification.

Indian Drone Industry

India aspiring to be the leader of Industry Revolution 4.0 has set the target of being a major global hub for drones by 2030 which will boost the countrys gross domestic product (GDP) by 1-1.5 % while adding at least five lakh jobs in the coming years. The new geo-political landscape and Indias unique non-aligned position is likely to give it a further boost.

Drones have wide-spread applications including defence, survey & mapping, agriculture, mining, asset inspection, disaster management, aerial photography and cinematography etc. and many more. To achieve a vision of Aatmanirbhar Bharat in drone technology, Prime Minister Narendra Modi and the Ministry of Civil Aviation, Government of India under his able guidance has brought about several reforms to kickstart and fuel the growth of the Indian drone industry.

Some of the major reforms include:

Release of the liberalised Drone Rules 2021 and Airspace Map declaring 80% of the airspace green, thus promoting Ease of Doing business in the drone sector.

PLI Scheme offering financial incentives to Drone & Drone Component manufacturers, along with ban on Drone Imports to promote domestic industry and Indigenisation of Drone Technology.

Government as Market Maker (for procurement of drones and drone services) with key schemes like Svamitva for land mapping, SMAM for Agriculture etc.

Removal of Passport as mandatory requirement for Drone Training.

Select Growth Drivers:

1. Evolution of Regulatory Framework

2. Import Ban and Make in India

The Drone Rules provide that import of UAV which shall be regulated by the DGFT or any other entity authorised by the Central Government. The import of UAV is “Restricted” and requires prior clearance of the DGCA and an import license from the DGFT.

On February 6, 2022, the Directorate General of Foreign Trade (DGFT), vide notification No. 54/2015 2020 (“Import Ban”), prohibited the import of drones in Completely-Built-Up (CBU), Semi-knocked-down (SKD) or Completely-Knocked-down (CKD) form 13 with limited exemptions such as with for R&D, defence and security purposes. However, import of drone components is permissible and the same is not subject to the said Import Ban.

This Import Ban is part of the overall push towards ‘Make in India and while providing an impetus to manufacturers in India, is also aimed at incentivizing foreign manufacturers to set up shop in India.

3. PLI Scheme for Drones

In a press release dated September 15, 2021, the Central Government had launched a Production-linked Incentive (“PLI”) scheme for drones and drone components with the aim of making India a global drone hub by 2030. The PLI scheme came as a follow-up to the Drone Rules. Under the scheme, the Government of Indias projected was that the drone industry may see an investment of over INR 5,000 crores over the next three years, of which INR 30 crore had been disbursed till April 2023.

The incentive for a manufacturer of drones and drone components covered under the scheme, shall be as high as 20% of the value addition made by them which is calculated as the annual sales revenue inclusive of GST minus the purchase cost (net of GST) of drone and drone components. This rate is to be kept constant at 20% across all three years for the drone industry unlike PLI rates in other sectors which reduce every year. The coverage of the scheme includes developers of drone related software. The incentive payable to a manufacturer is capped at 25% of annual outlay, allowing a larger number of beneficiaries to avail such incentive. The PLI rate shall be 20% of the value addition made by him, with the minimum being 40% of net sales for drones and drone components.

4. Government as market maker Centre

Ministry of Panchayati Raj Svamitva scheme for properly mapping across 6.6 lakh villages.

Ministry of Agriculute & Family welfare Capital subsidy on purchase of Drones.

Minstry of Mines Mandatory drone survey for large mines.

Ministry of Road Transport & Highways Monthly video monitoring of highways.

Minstry of Defence Emergency procurement of surveillance and logistics drones.

Several other mintsries and departments have understaken pilot projects for using drone technology in their sector.

5. Export Liberalization

Drone export liberalization, notified via DGFT Notigfication No.14/2023 dated 23^rd June 2023, applies to drones with a range of 25 km or less and a payload capacity of 25 kilograms or less intended for civilian use only and will be subjected to General Authorization for Export and Deleivery (GAED).

6. Relaxation in Remote Pilot Certificate (RPC) Eligibility

In October 2023, requirement for Passport to enroll for Remote Pilot Certificate Training has been abolished.

Eligibility for a Remote Pilot Certificate: Must be 18 years or older, have a 10+ qualification, and possess a training certificate.

Aadhar Card possession is mandatory. Secondary ID (Voter ID/ Ration Card/ Drivers License/ Passport.

No individual other than a holder of a valid remote pilot certificate listed on the Digital Sky platform shall operate an unmanned aircraft system.

India positioning to become global drone hub

India is slowly marching towards ‘Make in India to ‘Make for the World. The Indian drone industry is forecasted to have a market size USD 40 billion by 2030; growing at a CAGR of 37 %.

1EY/FICCI study, forecast 2025-2030

While much of the drones manufactured are still in defence space, the civil drone space is poised to witness meteoric rise in India owing to an evolving and fast-paced adoption in Agriculture & Survey Sector, followed by Surveillance & Inspection drones, and subsequently Drone Delivery upon opening up of Beyond Visual Line of Sight (BVLOS) Drone Operations.

Rising Drone Adoption in Agriculture

The Civil Drone Adoption in India is currently being led by Agriculture Drones. The new agriculture mechanisation is being led by Drone adoption. GOI Schemes such as Sub-Mission for Agriculture Mechanisation (SMAM), and recently introduced PM Namo-Drone Didi Scheme, offering 40 100% subsidy on purchase of agri drones and drone training, has given a fillip to the Agri drone industry in India.

One of the big drivers for this rise in kisan drone adoption, Is the utilization of drones for spray of agro-chemicals produced by large corporates like Bayer, Syngenta, UPL etc. and foliar spray of Nano-fertilizers and nutrients by large Ferilizer Cooperatives and Companies such as IFFCO, Coromandel, Chambal Fertilizers etc.

Nano products like NANO Urea, NANO DAP and some more have the potential of bringing down subsidy budget on fertilizers which was over Rs. 1.71 lakh crores (as of January 2024) for the year 2023-24. Typically, a Urea bag of 45 Kg, which is sold to farmers for Rs. 242 per bag, there is a subsidy of about Rs. 2000 per bag which goes up with fluctuations in forex rates and supply chain disruptions like seen in last year.

Nano Urea which sells for about Rs 225 per 500 ML and is suggested to replace each 45 Kg bag is likely to change this scenario dramatically. Now, NANO DAP which sells at about Rs. 600 per bottle against Rs.1350 for a DAP bag is also likely to add to this significant changes in use of Nano Technology in agri inputs.

On one side Government is likely to save substantial sums on Fertlizer subsidies, and on another side, farmer is also likely to save about Rs. 4000 per acre every year.

Drones are going to be at forefront for spraying these Nano Agri inputs and Agro-Chemicals as they are far more efficient and productive than other traditional means of spray.

Drone adoption in Geo-Spatial Mapping space:

Government Schemes such as SVAMITVA and AMRUT 2.0 are proliferating the use of drones in the GIS space.

SVAMITVA involves mapping of land parcels using drone technology and providing ‘Record of Rights to village household owners with issuance of legal ownership cards (Property cards/Title deeds) to the property owners.

Under AMRUT 2.0 TOWN, NMCG, & YAMUNA FLOOD PLAIN scheme, about 190+ towns to be mapped using drones. Key tasks include GIS-based master planning initiative for Class-II towns, aligned with AMRUT standards, Geo-database creation, plan formulation, and capacity building.

Governments (both Central and States) have understood the advantages of digitising land records and having Digital maps. The Digital maps, amended at regular intervals have enormous potential in managing current infrastructure as well as planning for the future infrastructure. In addition, the Governments can have better control on their revenues.

BVLOS Operations to open doors for Inspection & Delivery Services:

Going forward, as the regulatory framework opens up guidelines for Beyond Visual Line of Sight (BVLOS) Operations, we shall see massive surge in Drone adoption for applications such as Assets Inspection and Monitoring (Highways, Railways, Oil pipelines, Powergrids etc.) as well as Logistics & Delivery by Drones.

Applications of Drones

The advancement of drone technology indeed presents transformative opportunities across various industries, driven by the integration of sophisticated allied technologies.

Different countries will have similar Defence requirements but will have different sequence of adoption in civil space depending upon urgency of each application.

In Military and Defence,

1. Surveillance and Reconnaissance: Drones are being used extensively for surveillance, providing real-time data without putting human lives at risk.

2. Combat and Support Roles: Drones can be deployed in combat scenarios for targeted strikes, reducing collateral damage and minimizing risks to soldiers.

3. Supply Delivery: In conflict zones, drones can deliver essential supplies to troops, such as medical kits, food, and ammunition, ensuring timely support without exposing supply lines to enemy attacks.

In Civil Space, within the prevalent VLOS operations scope, applications such as aerial survey and mapping, critical asset inspections, agriculture spray, aerial surveillance and event-based videography are the primary drivers of the commercial drone eco-system.

Once the regulations on Beyond Visual Line of Sight (BVLOS) are released, which every country is working hard to roll them out as soon as possible, the adoption rate of Drones will have a vertical take-off.

Some of Commercial Applications in near future that shall gain traction include:

1. Infrastructure Inspection: Drones are used to inspect infrastructure like bridges, power lines, and pipelines, providing detailed imagery and data for maintenance without the need for costly and dangerous manual inspections.

2. Agriculture: In Addition to Agri Drones for spray activity, Drones equipped with multispectral sensors can monitor crop health, optimize irrigation, and apply fertilizers precisely, enhancing yield and reducing costs(spot and spray Drones).

3. Photography and Filmmaking: Drones provide unique aerial perspectives, revolutionizing the fields of photography and filmmaking with shots that were previously impossible or too expensive to capture.

4. Transport and Logistics: Drones can be used for transporting goods over short distances, especially in areas difficult to reach by traditional vehicles, such as remote or disaster-stricken regions. In large warehouses, drones equipped with RFID scanners and sensors can manage inventory efficiently, reducing the need for manual stock checks and speeding up the process.

Allied Technologies Enhancing Drone Capabilities

1. Smart Sensors: Advanced sensors, including LiDAR, thermal imaging, and hyperspectral sensors, enable drones to capture precise and detailed data for various applications.

2. AI and Machine Learning: These technologies allow drones to process data in real-time, enabling autonomous navigation, obstacle avoidance, and intelligent decision-making.

3. 5G Connectivity: High-speed, low-latency communication networks facilitate real-time data transfer, enhancing the capabilities of drones in various applications, from real-time video streaming to remote control in critical missions.

4. Battery and Power Management: Advances in battery technology and power management systems extend the operational range and flight time of drones, making them more viable for longer missions.

5. Regulatory and Safety Enhancements: Built-in safeguards, such as geofencing, automatic return-to-home functions, and fail-safe mechanisms, enhance the safety and regulatory compliance of drone operations.

The continuous evolution of these technologies will further embed drones into the fabric of various industries, driving innovation and efficiency while opening up new business models and opportunities.

Drone Destination recently made foray into Agri Drone Spray Services, and conducted more than 28,000 Drone Demos in collaboration with IFFCO, in the state of Uttar Pradesh for the Viksit Bharat Sankalp Yatra, to push for agriculture drone adoption in India.

Drone Destination in the near future plans to establish Indias largest network of fixed and mobile “Drone Hubs” which will offer "Everything Drones”.

Key Highlights of Drone Destination Activities for the 2023-24

Our journey so far….

Drone Destination said Farewell, year FY 24! with incredible milestones and innovations, fuelled by the boundless potential of drone technology. The major achievement was to foray in most the key areas of Drone services including Mapping & Surveying, Agri -Spraying and manpower training. Last year the Company also kickstarted the Drone sales by selling drones to Chambal fertilizers.

As the company entered the uncharted airspace of FY 25, the Drone Destination team is excited to push boundaries, pioneer new applications, and elevate Indias drone landscape to unprecedented heights.

Training and Education

Drone Training Programs by DGCA-authorised Remote Pilot Training Organisation

As per Drone Rules 2021, it is mandatory for a Drone Pilot to obtain Remote Pilot Certificate (RPC) from DGCA-authorised Remote Pilot Training Organisation (RPTO), in order to fly drones legally in India. As a DGCA-authorised RPTO, we offer four types of Certified Training Programs on our own and with our training partners:

S.No. Course Name	Duration
1 DGCA-Certified drone pilot training - Small, Rotorcraft Training	5 Days
("Course -1")
(Conducted by Drone Destination, IGRUA - Drone Destination and Sanskardham- Drone Destination)
2 DGCA-Certified drone pilot training - Medium (upto 50 kg), Rotorcraft Training
("Course -2")	5 Days
(Conducted by Drone Destination, IGRUA - Drone Destination )
3 DGCA-Certified drone pilot training - Small, Rotorcraft and Hybrid Training
("Course -3")	7 Days
(Conducted by IGRUA-Drone Destination)
4 DGCA-authorised Train the Trainer Course - Small, Rotorcraft
("Course -4")	9 Days
(Conducted by Drone Destination, IGRUA-Drone Destination)

Application-Based Training Programs

In addition to Certified Training Programs, we have also started a suite of Application-based Drone Training Programs to develop Industry-ready Drone Pilots. All our Application-Based Training Programs are jointly certified with NSDC as part of our Training Partner agreement.

Drone as a Service

Survey and Mapping

Drone Destination offers scalable and cost-effective, geo-spatial data solutions. Our drones and survey teams are already deployed for usage in Abadi-area mapping under the SVAMITVA scheme (a flagship project under the Ministry of Panchayati Raj for mapping villages and creating Digital Property Cards for landowners) as well as large-scale mapping projects with our Industry partners pan India.

Our Survey & Mapping services include:

Capturing precise georeferenced imagery and highly accurate orthophotos.

Creating customized 2-D Maps and digital elevation models.

GCP Installation and Base-line Processing.

Providing scheduled and on-demand aerial data collection to assist in processes such as ground mapping, site planning, & more.

Automating the survey process with pre-defined missions and flight plans.

Photogrammetry & Feature Extraction services.

Surveillance & Monitoring

Our drones are equipped with advanced zoom cameras and IR sensors which are capable of producing quality day and night-vision video footage. The Company is assisting Excise Department of Government of Bihar to carry out surveillance of illegal liquor manufacturing along the Ganges within the state. We have a trained team of pilots who can assist users in various monitoring purposes.

Periodic patrolling of assets/ Remote areas/POIs	Patrolling/ inspection of buildings and other facilities such as oil and gas assets through drones have far better results than manual inspection because they are less costly, saves time and does not require intensive labour use which also enables to have periodical patrolling to monitor the condition of buildings, assets etc.
Aerial	Aerial Surveillance through drones are far cheaper than traditional methods.
Surveillance	Surveillance drones can be equipped with sophisticated imaging technology that provides the ability to obtain detailed photographs of terrain, people, homes, and even small objects. Having high-resolution infrared camera, heat sensors, motion detect sensors would make it possible to remotely carry out surveillance.
Encroachment Detection	Drones can also help to monitor illegal constructions and encroachments by conducting surveys, analyse the data gathered by survey to map and make assessment about the extent of illegal construction and encroachments. This can also accurately identify the actual territory which were just before the encroachment. Further data captured through drone is more reliable than any manual inspection conducted to identify encroachment.
Search and Rescue Operations	Search and Rescue (SAR) is a subset of public safety operations and involves activities revolving around finding missing people. Major issue in rescue mission is that such operation is complicated, challenging and unpredictable. No one can predict the result however, drones are becoming a potential life-saving tool in SAR operation, providing critical support to SAR teams to reduce risk to humans, enable quicker aerial support during adverse weather conditions.
Disaster Management	Often in emergency circumstances such as natural disasters, terrorist attacks where roads, bridges, communication cables, gas and water lines are compromised, safety of residents in that area is also compromised. To handle and mitigate suffering and further damage, rescue teams can utilize drones to support infrastructures, deliver supplies and establish communication. Areas where it seems impossible to reach, drones can deliver supplies to those in need.
Incident /Accident Response	In the recent years, use of drones in accident emergencies has increased. Among their main benefits are avoiding endangering rescuers, travelling long distances in a short time, or contacting victims in risky situations. Drones cover a significantly larger area than traditional tracking methods and were useful for performing preliminary triage, determining needs, and knowing the scene prior to the arrival rescuers. In addition, drones reduce the time required to locate the victim. Drones are considerable options when attending such emergencies as they significantly improve the distance travelled to locate accident victim, and improve the time and quality of care provided.
Traffic Monitoring	Population explosion has dramatically increased the number of vehicles leading intense traffic congestion specially during peak office hours. Road with heavy traffic movement can be routinely inspected to identify potholes or waterlogged areas which is primary factor for long hour jams and may lead to accidents.
Crowd Management	India has become the most populated country in the world, and therefore are more drawn towards crowd management solution in public places. Various public institutions are started using drones for crowd control. Drone equipped with speaker can communicate and give early warnings.

Precision Agriculture:

Our Drones equipped with spraying systems can apply pesticides, herbicides, and fertilizers across fields. This reduces the need for manual labor, lowers exposure to chemicals, and ensures even application. In future, we shall be utilizing agri-mapping drones for crop monitoring and health assessment, irrigation management, and field mapping and analysis.

Financial Review

Drone Destination (NSE Code INE0P7201019) leads Indias Drone Services industry, providing comprehensive services from certified drone pilot training to state-of-the-art Drone-as-a Service (DaaS) solutions. Headquartered in New Delhi, Drone Destination pioneers commercial drone operations and training across diverse sectors like agriculture and infrastructure. Notably, as the first listed Drone Company on the NSE Emerge platform, Drone Destination holds a prestigious position in the industry. The training programs set the standard, equipping aspiring pilots with safety and efficiency skills, covering regulatory compliance to advanced manoeuvres. Simultaneously, Drone Destination focuses on DaaS, delivering tailor-made solutions for agriculture spray, aerial surveying, and asset inspection services. Committed to innovation, Drone Destination empowers individuals and industries through training and DaaS offerings, shaping the future of drone technology.

The vision and business fundamentals aligned with core focus on Drone-based Services & Training has helped to achieve 43% EBIDTA and 22% PAT over the year. The on-ground execution capabilities have helped to develop credible associations, as the company has recently collaborated with IFFCO for the largest Drone Spray project over 30 lakh acres across 12 states in India. Drone Destination also has a steady pipeline of upcoming projects and partnerships, including Urban Mapping, LIDAR surveys, as well as launch of Drone Soccer in India, an exciting new sport, blending education, technology and recreation.

Over the past year, the revenue has grown 2.7x to INR 32.26 Crores and the PAT has grown 2.76x to INR 7.08 Crores. Drone Destination has continued to maintain leadership position for Drone Training in India, and are proud to be part of the Namo Drone Didi scheme, having trained the highest number of Drone Didis in the country. Drone Destination won and successfully executed its first independent drone survey project for Govt of AP Land Records Dept. The company has also forayed into Agri Drone Services in collaboration with IFFCO and executed over 28,000 Drone Demonstrations under the Viksit Bharat Sankalp Yatra. Drone Destination is on a high-growth trajectory and aims to scale its integrated Service & Training network pan-India.

The Key highlights of Drone Destination

Became the first Drone Company to list on NSE Emerge.

Actively participated in the “Namo Drone Didi” scheme and trained more than 600

Namo Drone Didis, nominated by our new client base including large fertilizer and agro-chemical companies such as IFFCO, KRIBHCO, Chambal Fertliser, IPL, Indorama etc.

Won and executed our first independent Drone Survey Project from Andhra Pradesh Land Records Department, mapping 1.4 Lakh hectares in the state

Forayed into Agri Spray services and deployed close to 200 Drones & Drone Pilots for IFFCO, and covered over 28,000 Gram Panchayats for Agri Spray demonstrations under Viksit Bharat Sankalp Yatra

Introduced new “Kickstarter” & “Training Partner” Program to expand training footprint across India.

Particulars	FY 21	FY 22	FY 23	FY 24	CAGR
Revenue from operations	3918	25343	120722	318214	333%
Total Income	3933	25716	120773	326202	336%
Total Expenses	5140	23287	87761	231389	256%
PBDIT	-239	3996	47025	138639
Profit Before Tax	-1207	2429	33013	94812
Profit Before Tax Margin	-31%	9%	27%	29%
Profit /loss for the period	-1207	1896	25624	70821
EPS ( ) prior to exceptional item	-0.12	0.19	26.08	3.42
Net Worth	-509	1386	176054	616333
Fixed assets	2073	6252	53266	153491	320%

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Ratios	Numerator	Denominator	Current Reporting	Previous reporting	% of Change	Reason for change >5%
Debt Equity Ratio	Debt Capital	Shareholders Equity	0.06	0.09	-28.69%	Due to increase in share capital during the year
Debt Service coverage ratio	EBITDA-CAPEX	Debt Service (Int+Principal)	6.00	5.45	10.08%
Return on Equity Ratio	Profit for the year	Shareholders Equity	0.11	0.15	-21.07%	Due to increase in share capital during the year
Inventory Turnover Ratio	COGS	Average Inventory	NA	NA	NA	NA
Trade Receivables turnover ratio	Net Sales	Average trade receivables	2.48	3.49	-28.96%	Due to increase in revenue from survey and mapping where debtors collection period is on a higher side.
Trade payables turnover ratio	Total Purchases (Fuel Cost + Other Expenses+Closing Inventory-Opening Inventory)	Average Trade Payables	NA	NA	NA	NA
Net capital turnover ratio	Sales	Working capital (CA-CL)	0.67	0.33	102.92%	Due to increase in debtors realisation period during the year.
Net profit ratio	Net Profit	Sales	0.22	0.21	5.98%	Due to growth in the current working period.
Return on Capital employed	Earnings before interest and tax	Capital Employed	0.15	0.18	-14.63%	Due to growth in the current working period.
Return on Investment	Net Profit	Investment	NA	NA	NA	NA

Forthcoming New Initiatives

Drone Destination has mega pan India expansion plans to increase presence across the full spectrum of Drone Ecosystem in India

Drone Destination is Indias leading Drone-as-a-Service and largest Drone Training Organization and is listed on NSE Emerge.

Key offerings in the upcoming year would be several products and services across the value chain of the Drone ecosystem including Drones, Batteries & Components, Drone Services, Drone Education and Skilling, Drone Repair and Maintenance, and Drone Sports.

The company plans to establish Indias largest network of fixed and mobile “Drone Hubs” which will cater to whole ecosystem of drones. Over the next year, the company aims to roll out 250 such hubs and also aims to establish a network of over 1000 such hubs in the next two years. This network will focus on cost effectiveness, efficiency, and turnaround time.

The company plans to launch the following new initiatives under the umbrella of Drone Destination in upcoming year:

1. Drone Hub on Wheels will offer integrated services like Drone Sales, Repairs & Maintenance, Drone Services, and Drone Training through "Drone Dost", "Drone Doctor" and "Drone Guru." (Dost/ Doctor/Guru are personas of the same Engineer/ Pilot wearing three different hats)

2. Drone Shiksha- An initiative to introduce Drones as a new STEM learning in schools starting from the elementary level itself. The students will be trained to build, code and fly Drones.

3. Drone Kaushal - For students who intend to make a career in Drones ecosystem post-schooling, Drone Destination offers several skilling programs including a certified Drone Pilot program.

4. Drone Soccer - in association with the Drone Soccer Association of India, Drone Soccer is a new exciting sport that can be played by children to senior citizens, fit or differently abled. Drone Soccer Association of India (DSAI) is a founding member of FIDA (Federation of International Drone Soccer Association). The first Drone Soccer World Cup Championship is scheduled to be held in Korea in 2025 and DSAI in association with Drone Destination will send an Indian Representative Team for the same.

We believe that currently Drones being a nascent industry has some critical gaps, which Drone Destination as pioneer aims to plug with the new offerings. A pan India rollout of ‘Drone Hub on Wheels will offer with a focus on “turnaround time” - from Drones / Drone Services to after-sales and training. Each pilot is trained on multiple skills like ‘Drone Dost providing drone services like agri-spray, ‘Drone Doctor for fixing out-of-action drones, and ‘Drone Guru for training local youth on drones. These products would provide indigenous solutions for the drone industry in the country, in line with the Honble PMs call for ‘Make in India and ‘Atmanirbhar Bharat and shall further boost Indias technological leadership in the world.”

Drone Destination, has set an example in the start-up ecosystem by being prudent to all its stakeholders and following financial discipline, ensuring profitability ahead of the curve. The management team is confident of supercharging the companys growth and creating an impact that shall be visible across multiple industries from - agriculture, survey and mapping, smart cities, infrastructure like rail, road, port, telecom, power, utilities, BFSI to logistics and delivery and much more. Also, by combining new-age technology like AI with drone technology, the team is confident to deliver substantial ESG outcomes for businesses. Drone Destination is poised to redefine the industry landscape and set new standards for excellence and innovation in coming years.