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Likhami Consulting Ltd Management Discussions

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Jul 31, 2025|12:00:00 AM

Likhami Consulting Ltd Share Price Management Discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background:

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc., may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Global Scenario: Overview of the Global Consulting Industry Market

The main types of management consulting are operations advisory, financial advisory, technology advisory, strategy advisory, other consulting services, and HR advisory. HR advisory provides advice on human capital matters and/or offerings revolving around the HR function. The services are used by various industries, including IT services, manufacturing, financial services, mining, oil and gas, construction, and others. The different service providers include large enterprises, as well as small and mediumsized enterprises.

Management consulting is the industry and practice of helping organizations improve their performance by analysing existing problems and development plans for improvement. Organizations hire management consulting firms to gain external advice or when they need specialized expertise and services which are offered by consultants include strategy, operations, financial advisory, human resources and internet technology. The largest markets for consulting services include operations and financial advising, more than double the human resources and strategy markets. However, all the management consulting markets are seeing average growth each year.

The management consulting services market size has grown steadily in recent years. It will grow from $1.02 trillion in 2024 to $1.06 trillion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to globalization, technological advancements, outsourcing backend operations to lowcost economies, increasing investments in research and development (R&D), regulatory reforms in the financial sector and public private investments.

The management consulting services market size is expected to see strong growth in the next few years. It will grow to $1.32 trillion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to faster economic growth, digital consulting to drive growth, increasing investments in smart cities, increasing focus on customer satisfaction and global collaboration for environmental protection. Major trends in the forecast period include focus on offering metaverse consulting services, focus on offering internet of things (IoT) in management consulting services, focus on modularization of services, focus on valueoriented revenue model, focus on automation and artificial intelligence, focus on offering services through virtual firms and mergers and acquisitions activities.

Consulting Services Market: Overview

Consulting services deal with undertaking services from an independent body or a third party with expertise in a specific field or area of interest. These services are taken in exchange for a nominal fee or amount. The industry for consulting services is filled with several companies that provide research and factbased solutions to firms across industries.A key aspect of the consultation is that the service provider must remain biasfree and make decisions or provide advice that is right or ethical for the business in the long term. At present times, numerous firms have come up offering solutions some of which are mainstream while certain consulting services providers cater to a niche industry or business. Currently,

Key Insights:

As per the analysis shared by our research analyst, the global consulting services market is estimated to grow annually at a CAGR of around 4.87% over the forecast period (20232030) In terms of revenue, the global consulting services market size was valued at around USD 198.76 billion in 2022 and is projected to reach USD 290.86 billion, by 2030. The consulting services market is projected to grow at a significant rate due to the growing level of globalization

Consulting Industry Outlook for 2025 and Beyond:

In our technologydriven world, no industry or business ever stands still, and consulting firms are no exception. The most critical takeaway we can gather from looking at these consulting trends collectively is that consulting firms must be just as agile and adaptable as they aim to make their clients. Technologies like generative AI and cloud computing will become increasingly fundamental to the way organizations operate, and consultants must know how to leverage and integrate them into the solutions they develop and the strategies they recommend.

Well explore these and other key consulting trends shaping the landscape in 2025 and beyond, including:

Generative AI

Evolving Hiring Practices and Skill Sets Workplace Transformation and Remote Work Digitalization and Digital Transformation

A strategic roadmap for growth:

The consulting industry in India is growing rapidly, and there are a number of strategies that can be taken to promote further growth in the coming years. Here are a few key strategies Embrace innovation: The consulting industry in India is constantly evolving, and firms that embrace innovation will be better positioned to succeed. This means investing in new technologies, developing new methodologies, and creating new ways to deliver value to clients. Nurture talent: The Indian consulting industry in India is facing a talent shortage, so it is important to nurture the talent that is available. This means investing in training and development, creating a positive work environment, and offering competitive compensation and benefits. Improve the quality of consulting services: The quality of consulting services in India is variable, and firms that want to grow need to focus on improving the quality of their offerings. This means having a strong understanding of the clients needs, providing clear and concise recommendations, and delivering results that meet or exceed expectations. Enhance consulting skills: The consulting industry in India is highly competitive, so it is important for consultants to have the skills and knowledge that clients are looking for. This means staying uptodate on the latest trends, developing strong analytical and problemsolving skills, and being able to communicate effectively with clients. Partner with other firms: The consulting industry in India is becoming increasingly collaborative, so it will be fruitful for firms to partner amongst themselves to share resources and expertise. This could involve forming joint ventures, alliances, or strategic partnerships.

Key Takeaways for the Business Strategy and Management Consulting Market Report:

Market Trends and Dynamics: Business Strategy and Management Consulting market drivers, opportunities, challenges, and risks. Business Strategy and Management Consulting Market Competitive Landscape and Major Players: Analysis of 1015 leading market players, sales, price, revenue, gross, gross margin, product profile and application, etc. Business Strategy and Management Consulting Industry Value Chain: Business Strategy and Management Consulting market raw materials and suppliers, manufacturing process, distributors, downstream customers Business Strategy and Management Consulting Industry News, Policies and Regulations

High cost of services to restrict market expansion

The global consulting services market will be restricted due to the high cost of services. Consulting firms are run and dominated by industry experts with years of knowledge and experience. Additionally, consulting services employ several field experts and do not rely solely on a team of few people. The entire process is lengthy as it deals with multiple interactions between the service provider and the clients. It enlists detailed study, research, factchecking, and crosschecking all available information to avoid any errors or misjudgment.

The drafting process of final solutions can take months and sometimes years depending on the complexity of the business issue. These factors drastically increase the overall expense of consulting services thus restricting adoption among players with limited budgets

Consulting Services Market: Opportunities

Rising demand for ITbased consulting services may deliver higher revenue

The global consulting services market is likely to benefit from the increasing demand for consulting services in the IT sector. This is especially applicable at present times since several breakthrough technologies have been introduced in the IT industry. Artificial Intelligence (AI) and the development around it have the potential to reshape the modern world. In June 2023, technology giant Google announced that it will launch 4 newage generative AI consulting offerings as it intends to help its customers smoothly manage AI deployments.

In addition to this, the introduction and evolving nature of artificial intelligence has several concerns as well. It has fueled debates at international and national levels due to the threat posed by AI in replacing human power. The advanced technology can also be used for other hostile activities such as terrorist activities. Hence, governing bodies are taking the aid of AI experts to understand and control the future of AI in the IT industry.

Consulting Services Market: Challenges

Skill gaps within the industry may challenge the expansion trend

The global consulting services market growth rate will be challenged by the growing skill gap within the industry. As customers expectations and requirements become more complex in the backdrop of highly complex projects, the growth of a consulting service provider depends on the service quality it can provide. The quality depends on the expertise of the human power employed and their knowledge base. However, there is a significant skill gap that exists in the industry which could lead to a loss of revenue.

Industry Overview in India:

Financial consulting services mainly provide services related to accounting, auditing, finance, taxation, and regulations. The services not only help clients with finance transformation, defining and implementing risk management, compliance management, but also with the financial planning of projects, fiscal and taxrelated matters, and the financial side of mergers and acquisitions, as well as financing and debt restructuring. Financial advisory mainly consists of transaction services, corporate finance, crisis and recovery, risk management, accounting advisory, tax advisory, real estate advisory, and forensics and litigation.

The Indian consulting Service Industry has grown significantly over the years, both in terms of size and the range of services provided. This positions it well in the global management consulting services market, which was valued at $316.5 billion in 2021, and is projected to reach $811.3 billion by 2031, growing at a CAGR of 10.2%.

In the past years, financial advisory continuously performed relatively stable throughout the crisis years and their aftermath, driven by three key factors. Amid economic turbulences, the demand for crisis and turnaround management grew strongly, while the demand for accounting advisory services and risk management took off not long after, particularly in the financial services sector.

The focus will also be on sectors including market research, consulting, engineering, and construction and will contribute to the target of $395bn in FY26.

Basis of preparation and presentation of our Financial Statements:

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

SWOT Analysis of Consulting Industry:

Determine the Scope

The globalization frequently demands the integration of sophisticated technology, crossborder talent management, and supply chain optimization, all of which management consultants specialize in. Furthermore, as organizations must foresee and mitigate possible obstacles stemming from geopolitical uncertainty and market changes, the trend toward globalization has increased the need of strategic planning and risk management. In summary, the market for management consulting services is critical to assisting firms in capitalizing on global possibilities, overcoming international business challenges, and strategically positioning themselves for success in an increasingly linked world.

The purpose of the analysis constitutes the initial phase of carrying out a SWOT analysis and risk assessment. This entails recognizing the companys precise consulting services as well as the segment in which it conducts business. The scope must additionally encompass the firms internal systems, including things like its employees, financial affairs, and facilities.

Determine your strengths and weaknesses

The next phase involves identifying the consulting firms short comings as well as its strengths. Internal variables that grant the company an edge are referred to as strengths, whereas internal elements that impede its effectiveness are referred to as weaknesses. While determining strengths and weaknesses, take this into consideration:

The companys industry brand image. The consultants knowledge and experience.

The standard of services provided. The pricing plan.

The degree to which customers are satisfied. Internal process effectiveness.

Recognize Opportunities and Threats

The third stage involves determining the consulting firms opportunities as well as threats. Opportunities pertain to outside variables at play that a company may capitalize on to boost its efficiency, whereas threats are external forces that can hurt it.

Rising demand for digital transformation is projected to boost the demand for management consulting services market. Businesses in a variety of industries are recognizing the need of embracing digital technology in order to preserve competitiveness and stimulate innovation.

Consultants play a vital role in designing coherent digital strategies linked with corporate objectives, locating suitable technology, and establishing solid implementation plans. Their assistance is particularly critical in supporting the smooth integration of emerging technologies like artificial intelligence, cloud computing, data analytics, and automation.

When highlighting opportunities and risks, take this into consideration:

The markets dimensions

The quality of rivalry The legislative standards Technological progress Customer preference shifts

Identify Potential Risks

Following the completion of the SWOT analysis, the consulting firm must pinpoint the risks. Consider possible incidents or circumstances which might have an adverse effect on the company.

Lack of access to the latest technology and tools is projected to hinder the management consulting services market during the forecast period. The difficulty in acquiring access to the most recent technology and tools is expected to be a barrier for the management consulting services market during the projected period. In the continually expanding convergence of business and technology, consulting companies must be knowledgeable about cuttingedge technologies and digital breakthroughs in order to provide effective and relevant solutions.

Competition and differentiation: The biggest challenge for Indian consulting firms is to compete with large global players in the market. There is a need for Indian consultancy sectors to define their specializations and differentiate themselves.

Client expectations: Client expectations have evolved, demanding more tangible and datadriven results from consulting projects. Meeting these expectations while balancing practicality was a challenge.

Internal Risks: Internal risks are those risks associated with the consulting firms internal systems. These might very well include personnel issues, financial insecurity, or technology factors.

External Risks: External risks are those which are caused by outside variables including regulatory changes, market fluctuations, or natural catastrophes.

Risk Evaluation

When potential threats are identified, they must be evaluated. This entails taking into account the probability and potential effect of every risk.

The probability that a danger will take place is referred to as its likelihood. More focus and prepping would be required for risks that are more prone to happening.

The effect of risk is the potential danger it might end up causing to the consulting company. Risks with the possibility of having an important effect on the firm will necessitate more focus and preparation.

Create Mitigation Techniques

The next phase is to devise riskmitigation strategies for all the threats that were discovered in the step above. This entails determining strategies that can be adopted to lessen the effects and likelihood of the risks taking place. Specific, measurable, achievable, relevant, and timebound approaches are needed (SMART). It is indeed critical to allocate resources or even delegate tasks for putting the tactics to use. Business Segment: The Company is into the business of Consultancy services and other allied services. The company operates mainly in Indian Market. Management Consultancy, Project Consultancy, Consultancy to NGOs, Project Feasibility Studies, TechnoEconomic Viability Studies, Market Survey, Research and Branding, Brand Launch Strategies, Industry Research, Project Report Preparation, Foreign Investments related consultancy in Indian Market, Financial Consultancy, Artificial Intelligent (AI), Technical Collaboration and International Tieup, Turnaround Strategies for Distressed Firms, Business Valuations, India Entry related consultancy, Financial Consultancy, Loan and Equity Syndication Services and Mergers & Acquisitions etc.

Outlook:

Consultancy opportunities will increase in areas like management consultancy, Artificial Intelligence, Digital Marketing and Block Chain, financial consultancy, information technology, market research, etc. The consultant will be more professional, demanding and seeking tangible results. The Company will get repeat orders by providing quality service followed by service guarantee. The value system must ensure clientsatisfaction in delivering the services, maintaining work schedules, and most importantly, focusing on the clients interest at all times. The consultant will be increasingly called upon to get involved in the implementation of recommendations. In short, the relationship between a consultant and his client will be strong, intimate, facilitating and mutually beneficial.

Internal Financial Control and their Adequacy:

The Company has in place welldefined internal control mechanisms and comprehensive internal audit programmes with the activities of the entire organization under its ambit.

Human Resources:

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their cooperation and support have made it possible for the Company to achieve its current status.

The Company, on its par, would endeavour to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavour of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company.

Discussion of Financial Performance:

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

Particulars

20242025

20232024

20222023

Profit Before Tax

30.09

21,401

23,272

Profit after Tax

21.87

15,810

17,203

Earnings Per Share (in Rs.)

0.22

0.16

0.17

Ratio

Sl. No. Particular

F.Y. 2425

F.Y. 2324

Numerator

Denominator

% of Variation

Reason of Change

1 Current Ratio

126.93

44.04

Current Assets Current Liabilities

188.24

Due to decrease in Current Liabilities during the year.
2 Debt Equity Ratio Total Debt Shareholders Equity

NA

NA
3 Debt Service Coverage Ratio

NA

NA

Net Operating Income Total debt Service

NA

NA
4 Return on Equity Ratio

0.01

0.00

Net Profit After Tax Shareholders Equity

37.44

Due to increase in net profit of the current year.
5 Inventory Turnover Ratio

NA

NA

Cost of Goods Sold Average Inventory

NA

NA
6 Trade Receivale Turnover Ratio

10.75

8.44

Average Receivable12 Income from Operation

27.33

This is due to faster collection of receivables and improved credit management
7 Trade Payable Turnover Ratio

20.14

6.92

Avereage Payable12 Net Credit Purchases

NA

NA
8 Net Capital Turnover Ratio

0.02

0.02

Sales Net Assets

5.96

NA
9 Net Profit Ratio

0.32

0.25

Net Profit After Tax Total Revenue

28.75

Due to increase in net profit of the current year.
10 Return on Capital Employed

0.01

0.01

Earnings before Interest and Tax Capital Employed

39.72

Due to increase in net profit of the current year.
11 Return on investments

0.01

Differce in amount of investments Initial Investments

100%

Due to increase in current investments during the year.

Cautionary Statement:

Statements made in the Management Discussion and Analysis Report describing the Companiesobjectives, expectations or predictions may be forward looking within the meaning of applicablesecurities laws and regulations. Actual results may differ materially from those expressed in thestatement important factors that influence the Companys operations, include global and domesticsupply and demand conditions. We undertake no obligation to publicly update any forwardlookingstatements, whether as a result of new information, future events or otherwise. Readers are cautionednot to place undue reliance on these forwardlooking statements that speak only of their dates.

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