H.M. Electro Mech Ltd Management Discussions

Industry Structure and Developments:

Companies within the infrastructure industry serve All Type of Project Work of Pumping Machineries for Water and Waste Water, Electrification Project of Central and State Government, Corporations, Diesel Generating Sets Projects With Government, Nationalised Bank and Industries, Instrumentation Work, Civil Work Etc.

Our company is engaged in the field of turnkey projects of supply, installation, testing and commissioning of pumping machineries along with comprehensive operation and maintenance. Over the years we have diversified in the field of electrification projects with Indian railways, Nationalized Banks and Municipal Corporations. Recently we have started EPC (Engineering, Procurement and Construction) field projects which involves laying cross country pipe line and civil work related to water supply projects including construction of water treatment plant (WTP), Civil Work for Pump Houses, Diesel Generating Sets, Panel Room, Instrumentation, PLC-SCADA.

The Company has capacity to withstand in the market and face the stiff competition prevailing in the Infrastructure business market.

Opportunities and Outlook:

The Company is optimistic about its growth prospect us in the future. The Company has been concentrating on building brand image in the market.

The Company is facing stiff competition from various companies in domestic market. However, Company is well positioned to leverage the opportunities to manage the challenges that have arisen in domestic market.

Outlook:

The company has achieved a great reputation in this field within a short span of time with its strong & effective management and in time project execution. We are proud to highlight our accomplishments and ongoing efforts in various projects. Since 2018 we have completed 16 projects having aggregating of 13,209.82 lakhs. Apart from this, currently we are engaged in 37 ongoing projects having aggregating of 41,034.41 lakhs out of which revenue recognised till September 30, 2024 amounts to 22,732.05 lakhs. These projects not only met but exceeding our clients expectations, providing a lasting benefit to the community. It underscores our commitment to delivering high quality, impactful projects that meets diverse needs and drive progress.

Our Promoters are the guiding force behind the success of our company. We believe the stability of our management team and the industry experience brought on by our individual Promoters will enable us to continue to take advantage of future market opportunities and expand into newer markets.

Risk and Concerns:

Company is facing competition from various small-scale manufacturers and administrative costs are also increasing day by day. But Company is equipped to meet the challenges by better marketing tactics and effective management of cost and expenses.

Internal Control Systems and their adequacy:

The Company has an adequate system of Internal Control relating to purchase of raw materials, plant & machineries, equipments & various components and for providing services commensurate with the size and nature of business and projects of the Company.

Financial Performance:

Financial Performance with respect to Operational Performance is discussed in the main part of the Report.

Details of Key Financial Ratios are given below:

Ratios	2024-25	2023-24	Change
Debtors Turnover	3.53	3.90	-9.61%
Inventory Turnover	5.86	4.97	17.99%
Interest Service Coverage Ratio	2.82	1.87	50.64%
Current Ratio	2.47	1.51	63.97%
Debt Equity Ratio	0.12	0.38	-68.80
Operating Profit Margin %	22.43%	33.46%	-32.97%
Net Profit Margin %	6.86%	6.84%	0.28%
Return on Net Worth %	12.76%	24.96%	-48.89%

Material Developments in Human Resources / Industrial Relations:

The industry is knowledge driven, considering this aspect we continue to build our team with high quality talent. The Company is putting thrust on providing training both in-house and outside. The key personnel are technically qualified and fully trained to run sites.

The Company maintains cordial & harmonious relation with its employees.

Place: Ahmedabad	BY ORDER OF THE BOARD
Date: 28 th August, 2025	FOR H.M. ELECTRO MECH LIMITED.
	Sd/-
REGISTERED OFFICE	Dipak Padmakant Pandya
305, Ashram Avenue,	Chairman and Managing Director
B/H. Kochrab Ashram, Paldi. Ahmedabad,	(DIN: 02188199)
Gujarat, India, 380006