Maruti Infrastructure Ltd Management Discussions

The global economy is gradually recovering despite facing several strong headwinds viz., the Middle East crisis, Russias invasion of Ukraine, high inflation, high costs and falling household purchasing power, rising geopolitical uncertainties, and forced monetary tightening. Global growth is expected to swing back at this pace over the next year, while global inflation is likely to moderate and yet remain above inflation targets in many economies. Global cooperation and calibrated fiscal and monetary policies will be essential for setting the economies on a favorable growth path.

India continues to be among the fastest growing economies in the world. Despite the global slowdown, the Indian economy is exhibiting robust resilience and overall economic activity remains strong. India emerges as a symbol of optimism, maintaining its position as the worlds fifth-largest economy and expected to continue leading as the fastest-growing major economy. Indias Real GDP has been estimated to grow by 8.2% in FY 2023-24 as compared to the growth rate of 7.0% in FY 2022-23. In the face of unprecedented challenges, the Indian economy has demonstrated a remarkable ability to bounce back and convert challenges into opportunities while striving to achieve strong, sustainable, balanced, and inclusive growth.

Construction industry in India is one of the fastest growing industry and is said to be second largest industry in India after agriculture. The sector also makes significant contribution to the national economy, along with providing employment to the large number of people. The construction industry is broadly categorized into three segments Infrastructure (Roads, Railways, Irrigation etc.), Industrial (Refineries, Power Plants, Factories etc.) and Real Estate (Residential, Commercial, Institutional etc.). As infrastructure is highly responsible for propelling growth of other sectors and Indias overall development, Government of India is giving huge impetus for development of infrastructure and construction services through focused policies such as open FDI norms, large budget allocation to infrastructure sector, housing for all, smart cities mission etc. India has become a large market for infrastructure and construction activities.

OPPORTUNITIES & THREATS:

The risk be it external or internal, is inherent in every business. Economic slowdown impact most segments of the economy. The main concerns are slowdown in growth in the economy, demand constrains for the products arising from the prevailing environment, natural calamities, low disposable income and charge in the priority of consumers and fierce completion leading to higher spent on trade activities and promotional support necessitating allocation of more resources.

Formalised process of identifying and assessing business risk; specific action and monitoring mechanisms were put in place to manage these business risks.

In order to mitigate the risk, your Company has closely monitored various aspects like cost of the construction, material, time of completion of project etc. and whenever it has realized to take immediate action, it has given effect to. Focus on financial discipline including effective management of net working capital has helped to overcome the above risk and concerns to some extent.

ABOUT MARUTI INFRASTRUCTURE LIMITED:

Maruti Infrastructure Limited (MIL) established in 1994, over last two decades, MIL has gained a reputable position in construction industry. MIL is specialized in offering professional construction of management property services in residential, commercial, Industrial, EWS housing projects and urban infra projects. With many years of offering good services in the industry, the company is dedicated with competent work force and a large clientele base for constructions and Infrastructure for both in commercial and residential sector. Our clients value our allegiance to quality, timely deliveries, superior customer service and the experience of engaging in business with a highly qualified and experienced management. By leveraging our strengths and capitalizing on developing opportunities, we aspire to consolidate our position in the infrastructure construction and become one of the top Construction Company in Gujarat.

Our success stems from the steely resolve of our young, passionate and dedicated team of qualified and experienced engineers, supervisors, technicians and administrative staff. Their expertise enables quick flow of knowledge and efficient decision making throughout the organization.

During the year ended on 31^st March, 2024, the total revenue of the Company on Consolidated Basis was Rs. 3874.71 Lakhs and net profit for the current year was Rs 122.95 Lakhs. However on Standalone Basis was Rs 3873.43 Lakhs compared to Rs. 3544.79 Lakhs of previous financial year and the net profit on Standalone Basis for the current year was Rs. 168.96 Lakhs compared to Rs. 126.71 Lakhs of the previous year.

SEGMENT ANALYSIS AND REVIEW:

The Activity of the Company is to provide service of construction/ infrastructure project. Therefore, the Company operates in a single business / geographical segment. Hence, segment wise performance is not furnished.

FUTURE OUTLOOK:

The Government of India is taking various steps to boost the infrastructure development in the country. Looking at the huge potential for growth in the infrastructure sector, your company sees a good outlook for the coming years and the Company will benefit from the same. At present Company is having around 200 crores projects in hand which will likely to be completed in next 2 years. Presently Company is mainly focus on construction EWS housing projects constructed under Pradhan Mantri Awas Yojana (PMAY) which is constructed for lowered income group section of society to provide their own houses. Company will also participate in upcoming Bid/ Tender issued by Ahmedabad Municipal Corporation/ other respective authorities in coming years.

RISK & CONCERN:

The Company is exposed external business risk, internal risk and financial risk. External business risks arise out of variations in place of construction material etc. Internal risks cover operational efficiency and ability to withstand competition. Financial risks are in the nature of interest rate variations.

KEY RATIOS:

The details of changes in the key financial ratios as compared to previous year are stated below:

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Internal Control System is designed to prevent operational risks through a framework of internal controls and processes. The Company has in place adequate system of internal control which is commensurate with its size and the nature of its operations. Our internal control system ensures that all business transactions are recorded in a timely manner, the financial records are complete, resources are utilized effectively and our assets are safeguarded.

HUMAN RESOURCES, HEALTH AND SAFTY:

The Company continued to have cordial and harmonious relations with its employees.

Companys major thrust is on training and development aimed at transmission of information and knowledge through in house, in the job and external training input resulting into skill development and competency building of employees.

The Board would like to express its sincere appreciation and gratitude on behalf of all the stakeholders of the Company, who benefit from the hard work of the employees.

The Company is committed in cultivating a proactive safety culture. We have implemented work safety measures and standards to ensure healthy and safe working conditions for all the employees, visitors and customers. The Company has complied with all the applicable health, safety and environmental protection laws to the extent applicable.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis Report detailing the Companys objective, projections about the future, estimates, expectations or predictions including, but not limited to, statements about the Companys strategy for growth, market position and expenditures may be "forward- looking statements" within the meaning of applicable securities laws and regulations.

Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand / supply and price conditions in the domestic markets in which the Company operates, Changes in the Government regulations, tax laws and other statutes or other incidental factors.