E Factor Experiences Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

Global Event Industry

The global event management industry encompasses a wide range of activities, including planning, organizing, and executing events of various scales and types. The industry is divided into several segments, each catering to specific types of events. Key segments include corporate events, entertainment events, sports events, and personal events (such as weddings and parties).

Global Market Size and Growth

• Market Size: The global event management market was valued at approximately USD 936.14 billion in 2023.

• Growth Rate: The industry is projected to grow at a compound annual growth rate (CAGR) of 11.6% during this period

• Future Projections: By 2029, the market size is expected to reach around USD 1.76 trillion Indian Event Industry

The Indian event industry has experienced substantial growth and transformation in recent years, driven by several key factors. The market is rapidly growing due to Indias economic development and increasing consumer markets.

Market Size and Growth

The Indian event and exhibition market was valued at USD 5.23 billion in 2024 and is projected to reach USD 7.80 billion by 2029, growing at a compound annual growth rate (CAGR) of 8.31% during this period. Exhibitions and events are some of the critical enablers and triggers of the economy. With India being one of the fastest- growing economies, the government initiatives to help enterprises in different industries are expected to improve the need for events and exhibitions in the country.

Ref:Arizton, MarketResearch, MordorIntelligence, MarkWide Research

Recent Industry Developments

1. Technological Integration

Virtual and Hybrid Events: The pandemic accelerated the adoption of virtual and hybrid events, allowing for greater flexibility and broader audience reach.

2. Sustainability

Green Events: There is an increasing emphasis on sustainability, with event planners adopting eco friendly practices such as reducing waste, using recyclable materials, and minimizing carbon footprints.

3. Health and Safety Measures

Post-Pandemic Protocols: Enhanced health and safety measures have been implemented at events to ensure the well-being of attendees, including sanitation stations, social distancing, and contactless check-ins.

4. Augmented and Virtual Reality

Enhanced Experiences: AR and VR technologies are being used to create immersive experiences for attendees, especially in entertainment and corporate events.

OPPORTUNITIES

Expanding Consumer Market & Growing Corporate Events: Growing consumer market and increase in invesments in events in India provides us an opportunity to serve larger audience for events and exhibitions

• Hybrid and Virtual Events: The rise of hybrid and virtual event formats allows wider reach and reduced costs

• Technological Advancements: Use of AI, data analytics, and event management software for efficient planning and personalized experiences

• Sustainable Practices:

Increasing emphasis on eco-friendly and sustainable event practices providing opportunities to the Company to offer environmentally conscious and health-oriented experiences.

• Increased Government Support:

Government initiatives and policies supporting the growth of the event management industry.

• Diverse Cultural Heritage:

Indias rich cultural heritage offers unique themes and opportunities for cultural festivals.

• Rise of MICE (Meetings, Incentives, Conferences, and Exhibitions):

Growth of the MICE sector provides numerous opportunities to our Company

• Youth Population: Large and growing youth population drives demand for entertainment and social events.

THREATS

Our business deals with prime challenges like intense competition, infrastructural issues in some regions, hurdles in gettng approvals and clearances from various regulatory authorities.

However, our proven track record with a focus on creativity, innovation and strong commitment to customer satisfaction continues to provide us opportunities to serve larger client base.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Our Company specializes in single business segment i.e. Events Management, our diverse portfolio includes Government-commissioned Tourism Events and Festivals, Multimedia shows, Cultural Landmarks, Sporting Events & Contests, Corporate Events & Conferences, Mega Ground Concerts, Televised Events, and Private Social Events and Weddings for prestigious families.

Over the past two decades, E-Factor has been at the forefront of innovation, pioneering the philosophy of unlocking immense value in shared experiences and large-scale events. We specialize in delivering a broad range of events, from meticulously curated Cultural & Tourism Events to groundbreaking Special Events, engaging public spaces, cultural landmarks, and high-end Social Events. Our goal is to elevate these experiences, achieving an unparalleled level of economic and social transformation.

OUTLOOK

The Event Industry is expanding at a rapid pace across the globe and E Factor sees itself to be amongst the lead contributors to the growth of the event industry. We are aiming to increase our year-on-year growth percentage near to 35% through substantial increase in its geographic footprint and consolidation of its presence in areas of its business which will ensure high growth and long-term contracts.

With the strong emphasis on development of various tourism circuits, the forthcoming period is set to witness robust growth and this momentum is projected to remain strong throughout FY 2024-25. Our strategic positioning, combined with a steadfast commitment to excellence, will undoubtedly catalyse our journey towards realizing untapped potential and realizing significant success.

RISKS AND CONCERNS

In any business, risks and prospects are inseparable. Business risks are constantly evolving in a rapidly changing business environment with dynamic customer requirements. As a responsible management, our Companys principal endeavour is to monitors the external environment to identify potential emerging risks and their impact on our business.

We meticulously anticipate, assess, and address potential challenges that may arise during the planning and execution of events. Whether its navigating logistical hurdles, financial uncertainties, or ensuring the safety and security of attendees, our team is dedicated to minimizing risks while maximizing the success of every event we handle.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate internal control system commensurate with the size of the business operations geared towards achieving efficiency in its various business operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. Efforts for continued improvement of the internal control system are being consistently made in this regard.

We have an Audit Committee of the Board of Directors of the Company to overseas the Companys financial reporting process, disclosure of financial information, and to review the performance of auditors.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INCLUDING NUMBER OF PEOPLE EMPLOYED

At E-Factor Experiences Limited, we believe that our greatest asset is our people. Our HR team has played a pivotal role in fostering an environment where each employee has the opportunity to thrive and contribute meaningfully to our collective success. As on 31^st March 2024, we have 51 employees on the payroll of Company. Here are some of our key contributions in fostering employee growth in the organization

1. Training and Development Programs:

We have meticulously designed and implemented various training and development initiatives tailored to the needs of different teams and individuals. These training & development programs have equipped our employees with the skills and knowledge necessary to excel in their roles and prepare for future challenges.

2. Career Pathing and Mentorship:

While recognizing the importance of career progression, HR has established clear career paths and mentorship programs. This has not only motivated our employees but has also ensured that they have the necessary support and guidance to achieve their professional goals.

3. Performance Management:

Effective performance management practices introduced by HR have enabled transparent feedback mechanisms and recognition of achievements. This has created a culture of accountability and excellence across the organization.

4. Employee Well-being Initiatives:

Understanding the importance of work-life balance and employee well-being, HR has introduced initiatives such as wellness programs, flexible work arrangements, and employee assistance programs. These efforts have contributed to a more engaged and productive workforce.

5. Diversity and Inclusion:

HR has championed diversity and inclusion efforts, ensuring that our workplace is welcoming and inclusive of individuals from diverse backgrounds. This has not only enriched our organizational culture but has also brought innovative perspectives to our business practices.

FINANCIAL PERFORMANCE

Key Highlights of the Companys financial performance (standalone and consolidated) for the year ended March 31, 2024 is summarized below:

PARTICULARS	STANDALONE		CONSOLIDATED
Income	2023-24	2022-23	2023-24	2022-23
Revenue from operations	14,212.82	11,399.11	14,855.74	11,926.16
Other income	76.42	33.04	68.32	19.05
Total Income	14,289.24	11,432.15	14,924.06	11,945.21
Expenses
Cost of Services rendered	11,315.72	9,703.49	11,307.72	9,697.16
Employee Benefit Expense	513.60	460.30	788.87	681.01
Financial Costs	92.37	83.67	106.86	99.04
Depreciation and Amortization Expense	34.50	32.27	105.21	93.67
Other Administrative Expenses	324.41	224.44	541.89	378.88
Total Expenses	12,280.61	10,504.18	12,850.56	10,949.76
Profit/(Loss) before Tax	2,008.63	927.97	2,073.50	995.45
Tax Expense	513.68	236.74	537.36	267.78
Profit for the period	1494.95	691.23	1536.14	727.67

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AND RETURN ON NETWORTH

Particulars	FY 2023-24	FY 2022-23	Change %)(	Reason for Change
Debtors Turnover Ratio	3.45	3.69	-7	NA
Interest Coverage Ratio	22.75	12.09	88	Due to increase in profitability during the current year
Current Ratio	2.05	1.20	70	Due to increase in Current assets of the Company.
Debt Equity Ratio	0.01	0.34	-96	NA
Operating Profit Margin (%)	14.78	8.87	66.56	Due to increase in operating efficiency
Net Profit Margin (%)	10.53%	6.06%	74	Due to higher profit earned during current year
Return on Net Worth (%)	27	40	-33	Net income of the company has increase significantly. However, ratio has decreased due to increased shareholder equity.