Maestros Electronics & Telecommun. Systems Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The Companies growth considering the past few years performance has comparatively declined. The Company has been taking necessary steps for increasing its profits from year to year. The total revenue from the operation for the year ended March 31, 2024, amounted to Rs. 3328.93 lakhs as against Rs. 2,459.83 lakhs in a previous Financial Year 2022-2023 and has increased by 869.1 lakhs over the last year.

OPPORTUNITIES & THREATS OPPORTUNITIES:

1. Concentrating in one sector makes the company mature in the industry and gain efficiency in operations.

2. Growing preference for online platform

3. Rural development THREATS

1. Competition from low cost imported products.

2. Manpower costs are rising as many large companies are mopping the available talent pool supply of which is limited. Thus, for small and mid-range companies, retaining high quality manpower is a concern

SEGMENT WISE OPERATIONAL PERFORMANCE

Your Company has two main segments of business viz. Electronics & Instrumentation (E&T) and Telemedicine. The Company is constantly striving to increase the performance of its both the segments, particularly Telemedicine.

OUTLOOK:

Your Company, keeping pace with the overall market scenario has grown significantly in the past years. Also, the financial performance of the Company has increased since the previous financial year. The Management expects further growth and improvement of the company within the years to come, subject to favourable market conditions, and stable economic policies.

RISKS AND CONCERNS:

All the promises which management is making, depends on the confidence and trust that the Shareholders bestow upon the management.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance about maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations and for ensuring reliability of financial reporting. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well.

HUMAN RESOURCES& INDUSTRIAL RELATIONS

Your Company continuously endeavours to improve the work environment for its employees. Competitive compensation package, innovative and challenging environment to work, transportation facilities, etc., are some of the steps taken by the Company for the welfare of its employees. To keep the employees skill, knowledge and business facilities updated, on-going in house and external training is provided to the employees at all levels. The effort to rationalize and streamline the work force is a continuous process. The industrial relations scenario remained harmonious throughout the year.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE RESULTS OF OPERATIONS

The Companys revenue from operations has increased to Rs. 3328.93 lakhs as compared to the previous financial year ended March 31, 2023, for which it was Rs. 2459.83 lakhs

1. Revenue from Operations

Particulars	FY 2023- 2024 (In Lakhs)	FY 2022-2023 (In Lakhs)	Change	% of Change
Sale of Products & Other Operating Revenue	3328.93	2,459.83	869.1	35.33

2. Other Income:

Particulars	FY 2023- 2024	FY 2022- 2023	Change	% of Change
	(In Lakhs)	(In Lakhs)
Other Income	224.23	129.41	94.82	73.27

3. Gross Profit

Particulars	FY 2023- 2024 (In Lakhs)	FY 2022- 2023 (In Lakhs)	Change	% of Change
Revenue from Operations	3328.93	2,459.83	869.1	35.33
Less: Cost of Consumption	1864.14	1,166.78	697.36	59.76
Gross Profit	1464.79	1,293.05	171.74	13.28
Inventory	552.77	266.58	286.19	107.35

4. Profit before Tax

Particulars	FY 2023- 2024	FY 2022- 2023	Change	% of Change
	(In Lakhs)	(In Lakhs)
Profit Before Tax	690.77	402.04	288.73	71.816

5. Total Comprehensive Income (After Taxation)

Particulars	FY 2023- 2024	FY 2022- 2023	Change	% of Change
	(In Lakhs)	(In Lakhs)
Total Comprehensive Income (After Taxation)	495.05	300.32	194.73	64.84

6. Key Financial Ratios:

Particulars of Ratio	F.Y. 2023-2024	F.Y. 2022-2023
01. Current Ratio	1.78 times	2.22 times
02. Debt Equity ratio	0.18 times	0.19 times
03. Debt Service Coverage Ratio	0.20 times	0.28 times
04. Return on equity ratio	17.60 %	12.38 %
05. Trade Receivable Turnover ratio	2.58 times	2.26 times
06. Trade Payable Turnover ratio	7.37 times	3.28 times
07. Inventory Turnover ratio	4.55 times	3.13 times
08. Net Capital turnover ratio	1.75 times	1.44 times
09. Net profit ratio	14.87 %	12.11 %
10. Return on capital Employed	25.20 %	16.77%
11. Return on Investment	25.20%	17.71%

7. Details pertaining to Net-worth of the Company:

Particulars	As on March 31, 2024 (In Lakhs)	As on March 31, 2023 (In Lakhs)
Net-worth	3,052.58	2,403.09

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only.

Actual results could differ from those expressed or implied. A companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

For and on behalf of the Board of Directors

For Maestros Electronics & Telecommunications Systems Limited

Sd/-

Balkrishna Tendulkar

Chairman & Managing Director

DIN:02448116

Address: 3003, Relish Apartment,

Nirmal Lifestyle, ACC Compound Road,

Mulund (West), Mumbai - 400080.

Place: Navi Mumbai

Date: July 18, 2024