Integrated Personnel Services Ltd Management Discussions

Integrated Personnel Services Limited ("IPSL" or "the Company") was incorporated in the year 2004 with a vision to provide comprehensive Human Resource solutions across diverse industry verticals. With nearly two decades of experience in delivering integrated HR services, IPSL operates under three broad categories ?€” Raising, Leasing, and Management ?€” catering to both IT and non-IT sectors.

Our services span across Executive Search, Recruitment Process Outsourcing, IT & Infrastructure Staffing, Oil & Energy, Hospitality, Telecom, Payroll Management, Training & Development, and HR Policy Implementation. IPSL offers clients an end-to-end HR ecosystem under one roof, enabling them to scale, optimize and manage their human capital effectively.

Over the years, IPSL has segmented its offerings under distinct service verticals to ensure tailored delivery, thereby fostering long-term partnerships with clients across India and expanding global alliances. Over the last decade, IPS has been developing its service offering so as to support its clients in their end-to-end HR needs through its bouquet of services under one roof. For better operational efficiency, our range of services have been divided under the following business heads:

RAISING	LEASING	MANAGEMENT
\u2022 Executive Search (IPSEx)	\u2022 Flexi Staffing (IPSFSS)	\u2022 Payroll & Compliance Management (Internal & External) (IPSPOS)
\u2022 Recruitment process Outsourcing (IPSRPO)	\u2022 Staffing for Infrastructure Domain (IPS INFRA)
\u2022 IT Staffing (IPSTECH)	\u2022 Staffing in Oil & Energy sector (IPSO&En)	\u2022 Training & Development of resources/ performance management/ HR policy implementation (IPS HR Accelerator)
	\u2022 Staffing in Hospitality industry (IPSPMhS)
	\u2022 Staffing & Management in Telecommunications (IPSTEL)
	\u2022 Sales Staffing Services (IPS3S)

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Human Resource Management (HRM) industry continued to evolve rapidly in FY 2024-25, driven by digital transformation, increased adoption of AI and automation in talent management, and growing demand for flexible work models. Companies across sectors are placing a renewed emphasis on employee experience, well-being, and data-driven workforce planning.

There has been a marked increase in demand for integrated HR solutions that combine talent acquisition, employee engagement, performance management, learning & development, and HR analytics. Cloud- based HR platforms, remote onboarding tools, and compliance automation have gained widespread traction.

Additionally, the rising emphasis on Diversity, Equity & Inclusion (DEI), mental health, and upskilling has prompted HR service providers to innovate and adapt swiftly.

GLOBAL OUTLOOK

The global Human Resource (HR) services industry maintained strong growth momentum during FY 2024-25, driven by economic recovery, talent shortages, and widespread adoption of digital HR solutions.

The global IT staffing market continued its robust growth trajectory in FY 2024-25, fueled by ongoing digital transformation, rapid adoption of emerging technologies, and an acute shortage of skilled tech talent across regions. The global IT staffing market was valued at approximately USD 130-140 billion in 2024, with a projected CAGR of 7-9% over the next five years.

Key highlights of global industry performance:

Market Size & Growth:

The global HR services market was valued at approximately USD 700 billion in 2024, with a projected compound annual growth rate (CAGR) of 8-10% over the next five years. Major contributors include North America, Europe, and the Asia-Pacific region.

Rise in HR Tech Investments:

Global investments in HR technology exceeded USD 20 billion in FY 2024-25. Focus areas included AI-powered recruitment platforms, employee experience management, performance analytics, and virtual onboarding systems.

Talent Shortages Fuel Demand:

Skills gaps across industries, especially in healthcare, technology, and engineering, led to increased outsourcing of recruitment and workforce planning to HR service providers.

Remote & Hybrid Work Models:

The global shift to remote and hybrid work has forced organizations to redesign policies, tools, and engagement frameworks, creating new demand for digital-first HR solutions and employee lifecycle management.

INDIAN OUTLOOK

Indias Human Resource (HR) services industry demonstrated strong growth in FY 2024-25, underpinned by sustained economic expansion, the rise of the digital economy, increased formalization of the workforce, and policy reforms aimed at streamlining labor compliance. Organizations across sectors continued to prioritize employee experience, automation of HR processes, and workforce scalability?€”driving demand for outsourced HR solutions.

The IT staffing segment remained the fastest-growing component of the HR services industry, driven by demand for digital talent and the acceleration of enterprise technology transformation.

Market Size and Growth

?€? The Indian HR services market was valued at approximately ?60,000 crore (USD 7.2 billion) in FY 2024-25.

?€? The market grew at a CAGR of 12-14% , with strong contributions from segments such as staffing, recruitment process outsourcing (RPO), payroll processing, compliance management, and HR technology platforms.

?€? The Indian IT staffing market reached a size of approximately ^70,000 crore (USD 8.5 billion) in FY 2024-25.

OUTLOOK FOR IPSL

The Company continues to make consistent efforts to enhance operational efficiency and service delivery. Despite the challenges and rising competition within the HR industry, the Company remains confident in its ability to deliver sustained growth, backed by its strong fundamentals, proven capabilities, and client-centric approach.

Looking ahead, the Company aims to strengthen its global footprint through strategic alliances and partnerships. These initiatives are expected to enhance the Companys global relevance, expand its market presence, and unlock new growth opportunities.

Future Opportunities and Emerging Technologies:

The Company is proactively exploring and integrating cutting-edge technologies and methodologies to remain competitive and future-ready. Key areas of focus include:

1. Artificial Intelligence (AI) and Machine Learning (ML): Enhancing talent acquisition, screening, and workforce planning through intelligent automation.

2. Predictive Analytics: Leveraging data to forecast HR trends, attrition, and productivity to enable proactive decision-making.

3. Remote Work and Virtual Collaboration Tools: Supporting hybrid workforce models with tools that boost collaboration, engagement, and productivity.

4. Employee Experience Platforms: Implementing solutions to improve employee lifecycle management, engagement, and retention.

5. Internet of Things (IoT): Exploring IoT-driven workforce monitoring and smart workplace management tools.

6. Digital HR: Investing in end-to-end digital transformation of HR processes to improve scalability and agility.

These focus areas align with the Companys commitment to innovation, client satisfaction, and longterm value creation for stakeholders.

ANALYSIS OF FINANCIAL PERFORMANCE

Standalone performance for the year ended 31 st March, 2025:

The Companys revenues from operations in FY 2024-2025 is Rs. 26,280.24 Lakh as compared to Rs. 20,572.60 Lakh in the FY 2023-24. Profit Before Tax is Rs. 495.85 Lakh in FY 2024-2025 as compared 402.04 Lakh in FY 2023-2024. Profit After Tax is Rs. 491.60 Lakh in FY 2024-2025 as compared 391.58 Lakh in FY 2023-2024.

Particulars	FY 2024-2025	FY 2023-2024
Revenue from operations	26,280.24	20,572.60
Other Income	101.93	53.84
Total Income	26,382.18	20,626.44
Profit Before Tax	495.85	402.04
Profit After Tax	491.60	391.58

Financial Ratios

Sr. No.	Ratio			31.03.25		31.03.24		% Variance		Remarks
1	Current Ratio			2.04		1.8		13.40%		-
2	Debt - Equity Ratio			0.58		0.78		-17.18%		-
3	Debt - Service Coverage Ratio			0.3		0.29		3.95%		-
4	Return on Equity Ratio			0.12		0.12		-5.06%		-
5	Inventory Turnover Ratio			-		-		-		-
6	Trade Receivables Turnover Ratio			4.57		4.25		7.48%		-
7	Trade Payables Turnover Ratio			-		-		-		-
8	Net Capital Turnover Ratio			8.59		8.4		2.28%		-
9	Net Profit Ratio			0.02		0.02		-1.72%		-
10	Return on Capital Employed			0.11		0.12		-11.98%		-
									-
11		Return on Investment	0.06		0.06		-2.68%

Consolidated performance for the year ended 31 st March, 2025:

The Companys revenues from operations in FY 2024-2025 is Rs. 31,623.07 Lakh as compared to Rs. 24,559.23 Lakh in the FY 2023-24. Profit Before Tax is Rs. 674.77 Lakh 2024-2025 as compared 548.93 Lakh in FY 2023-2024. Profit After Tax is Rs. 666.67 Lakh 2024-2025 as compared 538.00 Lakh in FY 2023-2024.

Rs. in Lakhs

Particulars	FY 2024-2025	FY 2023-2024
Revenue from operations	31,623.07	24,559.23
Other Income	58.76	60.82
Total Income	31,681.83	24,620.05
Profit Before Tax	674.77	548.94
Profit After Tax	666.67	538.00

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company considers its human capital as one of its most valuable assets. Our employees bring deep expertise, innovation, and commitment, which form the backbone of our sustained business success. We aim to build a workplace where individuals are empowered to contribute meaningfully, grow professionally, and take ownership of performance outcomes.

During the year, our human resources strategy remained focused on the recruitment of skilled professionals, enhancement of employee competencies, and the cultivation of a performance-driven culture. Structured training and development programs were conducted across levels to strengthen domain knowledge, leadership skills, and behavioral competencies.

We recognize and reward high performers and encourage a culture of continuous improvement. Our performance management system is designed to align individual goals with organizational priorities, ensuring accountability, transparency, and motivation at all levels.

Health, safety, and environmental responsibility are core to our people practices. Regular internal and external audits are conducted to assess compliance, identify gaps, and implement improvements. We remain committed to providing a safe, inclusive, and engaging work environment that fosters employee well-being and workplace efficiency.

Industrial relations remained harmonious throughout the year, supported by open communication, mutual respect, and proactive engagement between employees and management.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has a well-established internal control system designed to ensure the accuracy of financial reporting, operational efficiency, regulatory compliance, and the protection of assets. These controls are aligned with the nature and scale of the Companys operations.

An independent internal audit function regularly evaluates key processes based on a risk-based audit plan. Any observations are reviewed, and corrective actions are promptly implemented. The Audit Committee monitors the adequacy and effectiveness of these controls to ensure continuous improvement.

Based on internal reviews and audits conducted during the year, the Company confirms that its internal control systems are adequate and functioning effectively.

RISKS AND CONCERNS

The Company operates in a dynamic environment and is exposed to various risks, including intense competition, regulatory changes, economic fluctuations, and technology disruptions. Talent attrition and data security are also key concerns in the HR services industry.

To mitigate these risks, the Company continuously strengthens its operational processes, invests in technology, ensures compliance with applicable laws, and focuses on employee engagement and retention. A risk management framework is in place to monitor and address potential threats proactively.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis regarding the Companys objectives, projections, estimates, and expectations are forward-looking and subject to risks and uncertainties. Actual results may differ materially due to factors such as global and Indian demand-supply conditions, finished goods prices, changes in government regulations and policies, tax regimes, and economic conditions in India and other countries where the Company operates. The Company does not commit to updating these forw