GVP Infotech Ltd Management Discussions

The discussion hereunder covers the financial results of GVP Infotech Limited for the financial year 2024- 25 and its business outlook for the future. Certain statements in the Management Discussion and Analysis Report section may be forward-looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook.

Overview about Company

Fourth Dimension Solutions founded in 2011 (In recent changed its name from Fourth Dimension Solutions Limited to GVP Infotech Limited), is an India-based information technology (IT) and cable infrastructure Company which provides end-to-end IT / ITEs and telecom solutions combined with technical support and operations outsourcing. The Company partners with government and public sector institutions to provide sustainable IT strategies at competitive costs. It operates in three core verticals - Technology Solutions, IT Infrastructure Services, and Operations Outsourcing.

Industry structure and developments

Technology is transforming businesses in every industry around the world in a profound and fundamental way. In fiscal 2025, we saw emerging technologies, like generative AI, 5G, Low Code No Code, shape the future of industries. Responsible business approaches, including embracing ESG, have gained traction. We continued to witness businesses attempting to reimagine their cost structures, increase business resilience and agility, personalize experiences for customers and employees, and launch new and disruptive products and services

Our strengths

We believe that we are well positioned for the principal competitive factors in our business. With experience in managing the systems and workings with enterprises, we believe we are uniquely positioned to help them steer through their technology transformation with our technological Framework.

Our competition

We see intense competition in traditional services, a rapidly changing marketplace and the emergence of new players in niche technology areas.

Major opportunities of the Company are as follows

> Wide experience in executing various government IT contracts.

> Track record of successful execution of projects.

> Increase in IT-Automation and digitalization in government sector.

> Financial Technologies sector.

Major Threats/Challenges to the Company are as follows

> Competition.

> Cybersecurity.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has adequate internal control systems commensurate with its size and operations to ensure orderly and efficient conduct of business while safeguarding the assets, quality, safety, procurements, finance and accounts and reducing and detecting error.

RISK & CONCERNS:

Risk Management is a critical exercise for all organizations, particularly with the companies dealing in technology sector which is uncontrollable due to hardware and software failure, human error, spam, viruses and malicious attacks, as well as natural disasters such as fires, cyclones or floods. However, the main aim of risk management is to identify and analyze the risks through a structured Risk-Benefit Analysis as and mitigate the risks wherever possible.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company is described in the Directors Report under the head "Financial Result" and "Review of Operations".

Key Financial Ratios:

The key financial ratios for Financials are as per the below table:

Particular	2024-25	2023-24	Change %	Details of significant changes
Total Revenue (Amount in lacs)	56.901	3325.11	-	-
EBITDA (Amount in lacs)		322.25	-	-
PBT (Amount in lacs)	(261.01)	286.49	-	-
PAT (Amount in lacs)	(264.32)	283.83	-	-
Net Worth (Amount in lacs)		16957.57	-	-
Current Ratio (Current Assets / Current Liabilities) (in times)	1.18	2.14	18.50%	-
Return on Equity Ratio	-1.59	1.67	-259.90%	The variation is due to a change in net profit to net loss.
Net Profit Ratio	-0.45	0.08	-145.87%	The variation is due to a change in net profit to net loss.
Return on Capital Employed	-0.01	0.01	-101.56%	The variation is due to a change in net profit to net loss.
Return on Investment	-0.01	0.01	-101.60%	The variation is due to a change in net profit to net loss.

 

Particular	2024-25	2023-24	Difference	Change %	Details of significant changes
Inventory Turnover Ratio	23.72	120.12	-96.40	12012%	Turnover reduced and inventory level also reduced
Debtor Turnover Ratio	1.57	0.21	1.36	21.00%	Receivable reduced and turnover decreased
Interest Coverage Ratio	-0.01	13973.97	-13973.98	-100.00%	Company has incurred Loss during the financial year and turnover also reduced
Net Profit Ratio	-45.87%	8.45%	-54.32%	-642.84%	Company has incurred Loss during the financial year and turnover also reduced
Operating Profit Margin	-41.84%	8.53%	-50.37%	-590.50%	Company has incurred Loss during the financial year and turnover also reduced
Fixed Assets Turnover Ratio	5.56	30.26	-24.70	-82%	Reduced due to decrease in turnover
Return on Net Worth	-1.60%	1.67%	-0.03	-1.96	Negative Return on NW due to loss incurred during the year

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof: Due to Profit Margin Reduced

During the year under review the revenue of the Company decreased from Rs. 3325.11 Lakhs to Rs. 569.02 Lakhs, a decrease of 82.11%. However, the company incurred the loss due to new business vertical for PA-PG business cost incurred for IT infrastructure. Further the business development cost is higher as compared to revenue. Multiple reasons contributed to this lower performance. Increased Operating Costs to expand its operations to meet the growing demand for software development services, such as employee salaries and infrastructure expenses.

The IT and software development sector is highly competitive, with numerous companies vying for clients and projects. In such a competitive environment, companies may offer competitive pricing or discounts to win contracts, which impacts profit margins.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT:

The Company routinely undertakes employee development activities keeping in mind the professional requirement of the employee as well as the growth of the company.

The Company has embarked on the path to formalize its commitments and is perhaps the one of the companies in India in the technology sector to move in this direction. This is not only going to result in better integration within the supply chain but also offers a significant competitive edge in marketing our products in the developed markets across the word.

The industrial relations were cordial throughout the year with no incidence of strike or lockouts.

CAUTIONARY NOTE:

Certain statements in the Management Discussion and Analysis section may be forward-looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which would be different from what the Directors envisage in terms of the future performance and outlook. Investors are cautioned that this discussion contains forward looking statement that involve risks and uncertainties including, but not limited to, risks inherent in the Companys growth strategy, dependence on certain businesses, dependence on availability of qualified and trained manpower and other factors discussed. The discussion and analysis should be read in conjunction with the Companys financial statements and notes on accounts.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Date: 21-06-2025	BY ORDER OF THE BOARD
Place: New Delhi	FOR GVP INFOTECH LIMITED
Registered Office :	Sd/-	Sd/-
Office No. 710 Naurang House,	RAJESH THAKUR	Dhaval Mistry
KG Road, Connaught Place,	Managing Director	Director
New Delhi -110001.	(DIN: 08378490)	(DIN: 03411290)