Kaarya Facilities & Services Ltd Management Discussions

The last couple of years immediately after the pandemic, the Facility Management industry has emerged stronger and pivotal to the Indian growth story. As the economy builds, the Facility Management industry is also equipping itself with the tools, skills and customer centricity to play a more mature role as a valued partner. Services being the strength of the Indian economy, the Facility Management industry is already deeply entrenched in this segment servicing diverse set of sectors such as IT, ITES, Ecom, BFSI and more. Your company has adapted itself to the new matured reality and has made significant efforts to equip itself to cater to this segment.

Indian growth story is also being driven by investments in high skill manufacturing, Logistics & Warehousing, establishment of Global Capability Centres (GCCs) and the new economy especially Energy, Co-Living, Co-working, EV manufacturing etc. Your company has made rapid inroads into these new segments and acquired many clients that are the at the forefront of such innovations. Your company has continued its focus towards partnering the government segments and added more clients to further increase its government business.

Your company is today one of the few truly Indian Integrated Facility Management company that competes with the global best and has deep capabilities in service delivery as well as a Pan India Presence. Your company has expanded its client portfolio and today has a presence in every corner of the country. As our order book grows, your company is focussed on having the most progressive HR policies that fosters innovations and ownership amongst our workforce that in turn result in improved customer satisfaction.

Your company is determined to deliver superior financial performance as it emerges stronger from the Pandemic interruptions. The industry has become highly competitive, where customers want global standards of service delivery at extremely economical pricing. Your company is determined to continue growing its order book, by leveraging its capabilities in delivering complex service delivery models as well as diverse geographical presence; while at the same time offer high value services that help in improving our margins. As our order book grows, and with our focus on containing our indirect expenses, Your company is hopeful of returning to its profitable path.

The facility management services industry in India presents promising opportunities driven by rapid urbanization, the expanding real estate sector, and a growing emphasis on efficiency, sustainability, and compliance. Companies can capitalize on the demand for property maintenance, security, energy management, and technology-driven solutions in both commercial and residential properties. Specialized services, compliance consulting, health and safety solutions, energy management, and a focus on enhancing customer experiences within facilities are key areas offering significant growth potential in this dynamic and evolving sector.

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. 29,17,50,211/-

Net profit of Rs. (5,05,80,631)/-

Earnings per share for the year of Rs. -5.41 of Rs. 10/share which was Rs. -1.09 (Diluted) previous year.

- Net worth of Rs. (1,63,99,874)/- as on March 31, 2024, Kaarya Facilities and Services Limited.

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.

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.