Kaarya Facilities & Services Ltd Management Discussions

About your company

The last few years have been transformative for both the Indian economy and the Facility Management (FM) industry. While the sector initially faced unprecedented challenges post-pandemic, it has since re-emerged as a vital enabler of growth across industries. Today, FM is no longer seen as just a support service it is a strategic function, integral to business continuity, workplace experience, and operational efficiency. Your Company has been at the forefront of this transition. By carefully identifying and doubling down on its core client portfolio, your Company has sharpened its focus on sectors where demand is strong and long-term partnerships can be nurtured. These include IT & ITES, BFSI, E-commerce, logistics & warehousing, and the rapidly evolving new economy sectors such as energy, co-living, co-working. This clear strategic direction, combined with consistent investment in people, processes, and technology, has yielded tangible results. Your Company is now profitably positioned and among the very few truly integrated Indian Facility Management enterprises that can benchmark its capabilities against global peers. With a robust service delivery engine and a pan-India presence, your Company has established itself as a partner of choice for clients across the country.

Performance and Future Outlook

The strategies adopted over the last few years are showing strong results. Your Company has successfully:

-Expanded its presence with leading clients in identified high-growth sectors. -Strengthened its order book while maintaining profitability.

-Enhanced operational efficiencies and exercised tight control over indirect expenses.

-Embedded innovation and ownership across the workforce through progressive HR practices.

With profitability restored and a healthy order pipeline, your Company is entering the next phase of growth from a position of strength. The focus will remain on deepening relationships with marquee clients, expanding service offerings to create higher value, and leveraging technology to further improve efficiency and transparency. Your Company is confident that this disciplined approach will deliver sustainable, profitable growth and strengthen its leadership position in the Indian FM industry.

Opportunities

The Facility Management industry in India is poised for long-term expansion, driven by rapid urbanization, increased corporate focus on compliance and sustainability, and the growing demand for technology-enabled, integrated solutions. Key opportunities include: -End-to-end integrated solutions covering maintenance, security, energy, and workplace management. -Adoption of technology for predictive maintenance, workforce management, and enhanced customer experience. -Specialized services in compliance, health & safety, and green building management. -Growing government and public sector demand for reliable, large-scale FM partnerships.

Your Company is uniquely placed to capitalize on these opportunities, having already demonstrated its ability to profitably scale, deliver complex service models, and provide unmatched pan-India coverage.

Operating Results of the Company

The financial statements have been prepared in compliance with the requirements of the Companies Act 2013 and Accounting Standards (AS) notified by the companies (Accounting Standards) Rules, 2006. The salient features of the company performance are:-

Total Sales of Rs. 380951293/- Net profit of Rs. 17169284/-

Earnings per share for the year of Rs. 1.84 of Rs. 10/share which was Rs. -5.41 (Diluted) previous year. ? Net worth of Rs. 768410/- as on March 31, 2025, Kaarya Facilities and Services Limited.

Disclosure by the Management

Your board has not received any disclosure by the management relating to any material, financial and commercial transactions where any of the managerial staff has personal interest that may have a potential conflict with the interest of the company at large.

Cautionary Statement

Statements in the Management Discussion and Analysis, describing the Companys objective, projections and estimates, are forward looking statements and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Polices and other incidental/related factors. This MD&A provides analysis of the operating performance of the companys two business segments, as well as a discussion of cash flows, the impact of risks and outlook for the business, Additional information about the company. This discussion and analysis is the responsibility of management. The Board of Directors carries out its responsibilities for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee has reviewed and approved this disclosure and it has also been approved by the Board of directors.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.