MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Economic Overview
Indian Economy
Amidst a stable global environment, the Indian economy registered a sturdy growth rate of 7.6% in FY 2023-24, surpassing the growth rates of both developed and developing nations. The resilience of the domestic economic structure is highlighted by a variety of high-frequency indicators. Goods and Services Tax collections soared to 1.8 lakh crores, demonstrating a year-on-year increase of 11.5%, as on 31 March 2024.
Outlook
The Reserve Bank of India has chosen to uphold its GDP growth forecast above 7.0% for the fiscal year 2024-25. The nations economy is being driven by domestic consumption, a shift to renewable energy, enhanced trade policies, infrastructure investments, and ongoing digitalisation. With strategic reforms underway, India is poised for enduring economic advancement. The infrastructure sector in India is on the cusp of unprecedented expansion, propelled by government initiatives and a surge in investments.
About us
We have evolved from a prominent engineering firm in India to a diversified conglomerate, taking bold and creative steps over the decades. Our expansion into diverse business verticals such as realty, exhibitions, events, and hospitality fuels our growth, as we witness numerous new ideas taking shape. Each strategic move has not only enriched our Company and employees but also positively impacted the communities we serve.
Our Businesses | ||||
Exhibitions | Events | Hospitality | Real Estate | Engineering |
Exhibitions A confluence of business and cultures
Established in 1991, the Bombay Exhibition Center ("BEC") reflects belief and opportunity. Bringing over millions of ideas to life, the Center has helped the globe converge in Goregaon, Mumbai, with a shared purpose.
The BEC offers limitless customisation within robust infrastructure, aligning with global standards. Its diverse venues and versatile amenities are complemented by comprehensive services. The BEC stands as the premier destination for exhibitions, trade shows, business displays, events, and entertainment.
MICE-In Indias vibrant and dynamic city, Nesco Foods is at the forefront, offering a comprehensive solution for Meetings, Incentives, Conferences, and Exhibitions ("MICE"). Nesco center stands out as the premier choice for MICE events in Mumbai, boasting expansive spaces, diverse banqueting options, and bespoke luxury. Situated in the heart of Mumbai, this MICE location is close to the airports and provides easy access to public transport as well as the citys entertainment and culture hubs. With top-notch venue facilities and concierge services, Nesco Foods emerges as the ideal partner for conventions, conferences, meetings, town halls, seminars, and workshops, ensuring success for every event. Nesco takes care of all aspects of MICE including production and food.
Events Creating memories that last a lifetime
Nesco Events is committed to creating distinctive and engaging cultural experiences that are both entertaining and enriching. The offerings by this business division have extended to tailored venues and innovative production capabilities. Nesco Events provides opportunities for people to explore diverse genres of entertainment. With every new event, the desire is to create the unexpected and the unforgettable. It continuously expands its range of offerings to cater to diverse needs and that too with a stellar track record in venue and event services for corporate and social gatherings.
Hospitality Creating a myriad of gourmet experiences
At Nesco Foods, a skilled team and comprehensive infrastructure come together to craft diverse culinary experiences. From creating distinctive food brands to preparing multi-cuisine recipes for events, our expertise covers a wide range with meticulous attention to details.
Restaurant and Outlets was started by the Company in the year 2022-23 which has set up new restaurants and a food court based in its IT park. Nesco has partnered with reputed brands in their food courts in their exhibitions which was well received by the organisers and visitors.
Our Offerings
- Exhibitions
- Wedding and Social Celebrations
- Outdoor Catering
- Food Court
Call out | Call out | Call out |
8+ Food Brands (Owned) | 24,000 sq. ft | 80,000 |
50+ Partnered Food Brands | Largest non-flight kitchen | Meals a day |
Real Estate The future of construction
Nesco Realty is a leading real estate provider, utilising cutting-edge building technology to develop workspaces, and assembly spaces. Being a robust real-estate provider, Nesco Realty uses the latest building technology and delivery mechanism. We integrate world-class amenities and sustainability features into each project, paying meticulous attention to details. Our designs seamlessly blend creativity with practicality and functionality, tailored for urban living.
Our Offerings
- Workspaces
- Assembly Spaces
EngineeringA pioneer of dreams that will engineer tomorrow Indabrator excels as an engineering equipment service provider, offering comprehensive solutions for surface preparation. From machines to spares and abrasives, we provide a single-window approach. Indabrators leadership stands out for its full involvement in the value chain, boasting our own foundry and state- of-the-art manufacturing unit at Gujarat.
Business Segment Review
Nesco IT Park
Nesco Realtys flagship Nesco IT Park sets a high standard in premium office spaces. Spanning millions of sq ft, this self-sustained facility hosts renowned multinational companies like HSBC, KPMG, PWC, MSCI, BlackRock, Here Solution, Framestore, Priceline, Ericsson, Apollo Global, ISS Governance, Sodexo, Ericsson and more.
Developments
In the year under review, we witnessed a Gross Leasing Value ("GLV") of nearly 14.2 million sq ft, representing a marginal 6% decrease from the robust figures of the previous year. Fresh leases remained predominant, comprising 51% of the annual leasing volume, with central suburbs and Lower Parel, Mumbai emerging as key submarkets, capturing shares of 14% and 13.5%, respectively. Supply constraints led to a sharp decline in vacancy rates, exacerbated by project completions totalling approximately 1.03 msf in the last quarter, resulting in a 44% reduction in annual supply compared to the previous year. However, prospects for 2024 and 2025 appear promising, with a healthy supply pipeline anticipated, particularly in Andheri, Kurla, central suburbs, and Navi Mumbai submarkets of Mumbai.
Key highlights during the year
Marketing activities involved extensive collaboration with major International Property Consultants, ensuring strategic positioning in the market.
Regular engagement with existing clients enabled a deeper understanding of their expansion and future requirements.
Efforts were made to enhance client satisfaction included the development of new amenities such as a gymnasium in Tower 4.
Plans are underway for a creating a mini banquet facility, bus depot and an electric vehicle car charging station within the complex.
To create employee engagement among IT park clients, a two-day carnival featuring games, quiz shows, drum performances, live entertainment, and stand-up comedy was organised.
We introduced extensive food options, including three restaurants - Social, Smoke House Deli, and FOO and leased out food court spaces to renowned brands like Dominos, Subway, Shivsagar, TeaPost and Tibbs Frankie, and also inhouse brands namely Dress Circle, Zuo, Daily Deli and Indic aimed at enriching the overall experience for occupants.
Opportunities and Threats
As occupiers place greater emphasis on Environmental, Social, and Corporate Governance ("ESG") factors when choosing building locations, the adoption of green building practices emerges as a compelling driver for occupier preference. Looking forward, the division also stands to benefit from long-term opportunities, including advancements in technology within spaces and increased flexibility in leasing portfolios. However, we face challenges from established business parks in and around our areas of operations which pose significant competition and potential threats to our market share.
Risks and Concerns
Risks and concerns include the absence of expansion space within the Nesco premises until additional capacity is constructed, prompting existing licensees seeking expansion to explore options outside. Additionally, the trend of companies mapping their workforce footprints may lead to a dispersion of office locations in other areas of Mumbai potentially affecting Nescos market positioning and tenant demand.
Capital Expenditure and Expansion Plans
Capital expenditure and expansion plans at Nesco involve an ongoing effort to maximise the utilisation of unused space. The occupancy rate for the period 2023-24 for Tower 3 and Tower 4 stands impressively over 98%, indicating a robust demand for our offerings and affirming our position as a preferred destination for tenants. This strong occupancy rate underscores the Companys strategic approach to managing its properties and highlights the need for continued expansion efforts to meet growing demand.
Bombay Exhibition Center
The exhibition industry sector facilitates trade and business, contributing significantly to the growth of various industries and serving as a major source of employment. With large opportunity for employment, it stands as a significant job provider. On average, 745 events are conducted throughout the year, with an average event size of 9.8 thousand gross square meters.
The Bombay Exhibition Centers ongoing expansion has solidified its position as the go-to solution for any trade fair needs. Already the largest exhibition venue in Indias private sector, it hosts events for numerous esteemed organisers from both India and around the world.
This achievement marks a significant milestone for Mumbai, establishing the Bombay Exhibition Center as the ultimate destination for exhibitions, trade shows, business displays, events, and entertainment. Its reputation as an ideal location, steeped in history, reaffirms its suitability for a diverse array of gatherings and occasions.
Developments
Guest Exhibitions
During FY 2023-24, over 100 exhibitions and events were scheduled and successfully held at Nesco. Additionally, 6 exhibitions that had been absent for several years made a comeback and were held at our venue, adding to the overall event portfolio.
Throughout the year, we expanded our client portfolio with the addition of diverse industry players. Our new clientele spans across various sectors including handloom, catering, media, plastics, fashion, electricals, and trade fair organisers.
The inclusion of these new clients contributed to an increase in our revenues, showcasing the growing demand and trust in Nesco as a preferred venue for exhibitions and events.
A glimpse of Mega Exhibitions of the year
IIJS Premiere 2023
In the month of August 2023, BEC hosted its biggest exhibition which was the 39th edition of IIJS Premiere 2023, organised by the Gem and Jewellery Export Promotion Council ("GJEPC"). This prestigious event bought together the gems and jewellery industry for an extraordinary showcase of excellence, innovation, and sustainability. BEC accommodated 2,818 stalls and welcomed 40,000 visitors covering an expansive area of 62,998+ sq. mtrs of the exhibition area.
Acetech
Acetech is Indias most prestigious annual exhibition in the fields of architecture, interior design, and building materials. Organised by Asian Business Exhibitions and Conferences Ltd., this was hosted in the month of November 2023. BEC accommodated 2,715 stalls and welcomed over 25,000 visitors covering an expansive area of 49,072+ sq. mtrs of the exhibition area.
National Garment Fair 2023
The prestigious and the largest National Garment Fair 2023, presenting a diverse range of womens and mens wear, and accessories took place in the month of July 2023. This event is recognised as the largest and highly anticipated Trade Fair in the Indian Apparel Industry. BEC accommodated 1,135 stalls and welcomed 35,000 visitors, covering an expansive area of 45,401+ sq. mtrs of exhibition area.
Plastivision 2023
Indias most influential plastic exhibition was held in the month of December 2023. BEC accommodated 1,600 stalls and welcomed 32,000 visitors covering an expansive area of 61,853+ sq. mtrs of exhibition area.
List of mega exhibitions held during the year in more than one hall.
1 India Jewellery Show 2023
2 Palm Expo 2023
3 HGH India 2023 (Home D?cor, Gifts and Houseware)
4 National Garment Fair 2023
5 India International Jewellery Show 2023
6 Anutec Intl Foodtec, Packex and Food Logistics India 2023
7 Acetech 2023
8 Zak Doors, Glass, Glass Tech and Alu. Extrusions 2023
9 Plastivision India 2023
10 IIJS Signature and IGJME 2024
11 Paperworld, Corporate Gifts Show and Interior Lifestyle India 2024
12 Distribuelec 2024
13 Intimasia 2023
14 National Garment Fair 2024
15 Diemould India 2024
16 PaintIndia 2024 """"
Challenges in the Exhibition Industry
Navigating the complexities of this dynamic industry presents numerous challenges. Establishing and operating an exhibition center in India demands meticulous planning and strategic management to overcome regulatory obstacles and intense competition. Few of the challenges of the industry is summarised as under:
Regulatory and Licensing Hurdles
Infrastructure and Location
Competition
Marketing and Promotion
Variability in Demand
Logistics and Operations
Security and Safety
Technological Advancements
Financial Management
Economic Factors
Political and Social Factors
Sustainability
Opportunities and Threats
Organisers have been proactively seeking new venues to host their exhibitions, signalling optimism within the industry. However, the tense situation between India and China has caused some disruptions. A couple of exhibitions focused on China had to be either cancelled or scaled down due to government-imposed restrictions on visas for Chinese exhibitors.
Risks and Concerns
The primary risk facing the Bombay Exhibition Center is competition, particularly regarding the quality of infrastructure compared to other venues. While the center boasts a prime location, the prevailing demand is primarily for halls that are pillar-free, dust-free, and leak-free. To effectively meet the expectations of both organisers and exhibitors, there is now a pressing need to enhance the infrastructure accordingly.
Capital Expenditure and Expansion Plan
The Bombay Exhibition Center has plans for construction of new halls. With an increased space capacity, the new hall under construction will feature separate pre-function areas, organiser offices, parking for around 500 cars, and various amenities. The Company is working upon the process of obtaining approvals from relevant governmental authorities for redevelopment of existing halls. Looking ahead, the Company aims to further enhance its offerings by developing a world-class integrated Exhibition Centre, comprising an Exhibition Centre, Convention Centre, and other amenities in the forthcoming years.
Nesco Events
The introduction of Nesco Events into the event space has been met with tremendous excitement. This venture has successfully created unique event properties that have quickly gained widespread acclaim and popularity. This impressive start has further strengthened the Companys capabilities in delivering high-quality entertainment to an enthusiastic and growing audience of enthusiasts.
Nesco Events works closely with the government and industry stakeholders to organise meticulously planned fairs and events that showcase the latest trends, innovations, and industry-specific themes. The aim is to establish comprehensive B2B and B2C platforms across various industries, positioning Nesco Events as a leading global event organiser.
Committed to presenting unparalleled cultural experiences that enrich and elevate life, Nesco Events goes beyond traditional event management. With the creation and curation of a diverse portfolio of successful event properties, the Company has expanded its offerings to include tailored venues and innovative production capabilities. With each new event, Nesco Events strives to create unexpected and unforgettable experiences, constantly pushing the boundaries of what is possible.
Developments
During the financial year 2023-24, Nesco successfully hosted over 25 notable events, showcasing its versatility as a preferred venue for a diverse range of gatherings.
One of the highlights was the 5th edition of the Rangilo Re, which took place in October 2023, the grand celebration of Navratri, called "Rangilo Re - Utsav Gujarat No". This nine-day festival attracted a large-scale participation, featuring performances by five renowned artists. The event garnered immense popularity, with over 1,50,000 people attending and immersing themselves in the festive spirit over the nine days of Navratri. Rangilo Re set new benchmarks in cultural events category in terms of the overall experience and customer delight which was picked up well by the media as well.
Kula Worldwide, a global gathering of arts, culture, street art, and music, was also organised by Nesco. The event witnessed the participation of more than 150 talented tattoo artists from various countries such as Australia, Germany, Indonesia, Japan, Malaysia, Nepal, New Zealand, UK, US, Vietnam and India. This unique event celebrated artistic expressions from around the World.
The Krazy Kids Karnival was an event initiated by Nesco Events, conceptualised by K for Kids, and curated by Meltwater. This event exemplified Nescos commitment to providing a joyous platform where families can come together, celebrate bond of togetherness, and weave a tapestry of delightful moments. We take pride in curating experiences that resonate with the diverse needs and interest of our community, adding meaningful values to the lives of Mumbaikars by fostering connections and facilitating the creation of beautiful, shared memories.
Nesco Events" successfully organised World of Education Expo in Mumbai" which is Indias largest " International Exhibition and Conference on Education"and educational solutions. It provided a specially dedicated pavilion for" Indian and International Universities, giving visitors an opportunity to connect with the best education institutes. This event was attended by over 100 National and International Institutions, ranging from pre-school to higher education and over 6,000+ attendees, which was a testament to Nesco Events dedication, providing visitors with the chance to discover new educational opportunities and products, and to meet education providers.
Nesco Events was honoured to partner with the Directorate of Industrial Safety and Health ("DISH"), Maharashtra and Safety Appliances and Manufacturers Association ("SAMA") for organising the World of Safety Summit and Expo. This was a wonderful initiative taken upto promote the safety of the valuable labourers and workers in factories and industries who are efficiently contributing to the growth and development of the country. By this association, Nesco achieved yet another milestone in its well- diversified events landscape from being the biggest center for exhibitions, hosting live concerts, to organising events that are aimed towards the betterment of the society.
Nesco Events also presented captivating live concerts, including performances by Lucky Ali, The Ultimate Holi Party Ft. Ritviz and Idol Superstars.
The division further collaborated with various organisers to present captivating live events including The Youtube Fan Fest, Googles largest on ground showcase of brands and artists, DGTL, Road to Ultra to name a few. These events would grow in the coming years and also more exhibitions and events would be launched by the division.
Through these diverse events, Nesco aims to establish itself as a preferred venue for both local and global events and exhibitions. The goal is to create an atmosphere where all types of gatherings, whether cultural, artistic, or entertainment-focused, can thrive and leave a lasting impression on attendees.
Opportunities and Threats
Nesco Events thrives on endless opportunities, as it can venture into various topics and niches that are not currently being organised elsewhere. The Company has the potential to tap into the international markets and provide a platform for exhibitors, visitors, and the government to come together at Indias leading privately owned venue.
There is also a promising opportunity for strategic tie-ups with third-party exhibitions and events, which can bring benefits ranging from increased revenues and brand building to higher footfall at the venue. Nesco Events can explore launching new intellectual properties in the B2C space, such as music festivals, food festivals, and kids festivals, further expanding its reach and appeal.
Post-pandemic, Nesco Events has witnessed remarkable growth and development in its sector. The Company successfully organised and scheduled numerous events at Nesco, including live concerts, Holi festivals, tattoo conventions, and music festivals.
This diversification has allowed Nesco Exhibitions and Events to enter new sections of the industry, catering to a broader audience and showcasing its versatility and adaptability.
Risks and Concerns
While the biggest risk is the competition mainly on the quality of infrastructure vis-?-vis the other available venues. Though the venues at Nesco Center, BEC excels on location, the demand is primarily for halls with acoustic features, pillar-free, dust and leakage free which can host a concert, musical shows, etc.
To meet the expectations of the organisers and exhibitors alike we now need to have spruced infrastructure.
Capital Expenditure and Expansion Plan
During the year Nesco organised 10 own exhibitions and events and 19 events were in strategic alliances with our clients. Nesco Events division plans to expanding its operations by having more of its own shows. Currently Nesco events by virtue of its offerings does not need capital expenditure at this stage.
Nesco Foods
Nesco Foods caters to all levels of social, business and luxury events. It is one of Mumbais most preferred hospitality providers, well-recognised for their varied capability and array of cuisines. The division operates the largest non-flight kitchen in the city. We create luxurious, imaginative, tailored and highly memorable food and beverage experiences for a wide range of client briefs, from simple, intimate gatherings to grand, spectacular banquets. Our catering services embodies standards of service and quality with world-class finesse.
Developments
Restaurants and outlets
The new sub-division named Restaurant and Outlets started by the Company in the year 2022-23 has inaugurated three new restaurants and a food court in Tower 4. The Company has partnered with various reputed brands in their food court in exhibitions which is highly appreciated by organisers and visitors.
Banquets, Outdoor Catering ("ODC") and Quick Service Restaurants ("QSRs")
The Grande Hall has attained distinction through its impeccable hosting of over 200 social and corporate events in the past year, securing recognition as a premier banquet venue. Nesco Foods has strategically recruited seasoned professionals to optimise revenue streams and fortify market presence, with a strong focus on catering to a diverse range of events within the banqueting sector. Gourmet Craft (Outdoor Catering) arm of Nesco Foods stands as a premier destination for elite catering and event services, where excellence and elegance meet. Our venture into retail endeavours with Indic, Zuo and Daily Deli has earned acclaim for providing unparalleled customer experiences in food court settings.
Opportunities and Threats
Introducing Gourmet Craft, our newest outdoor catering venture, epitomising culinary excellence and top-tier service for discerning clientele in the corporate, social, and entertainment spheres. In the current fiscal period, Nesco Foods has experienced remarkable productivity and success, notably at our esteemed Grande venue. Renowned for its Spacious, Safe, and ample parking facilities, the Grande reaffirms its status as the premier luxury banquet destination for weddings and special occasions. Capitalising on the surge in event demand amid the pandemic, Nesco Foods strategically expands its footprint in the social and corporate banqueting sectors.
The food catering sector presents vast prospects for individuals committed to achieving excellence. Elevating Nescos food catering business to unparalleled success entails prioritising culinary mastery, tailored services, flawless execution, strategic marketing, top-notch equipment and logistics, as well as a steadfast commitment to sustainability and ethical practices.
Restaurant and Outlets manages the restaurants, food court, and lounge bar. This sub-division has formed valuable alliances with renowned brands like Subway, Tibbs, Sassy Spoon, House of Mandarin, Hitchki, Bayroute, Rajdhani, Dominos, Shiv Sagar, Foo, Social, etc. enhancing the offerings and reputation of Nesco Foods. The division strongly focuses on fostering healthy competition amongst the brands thereby maintaining quality as well as curating a plethora of options for the clients.
Risks and Concerns
The launch of new convention centres and premium banquet venues in Mumbai introduces notable competition in the market. To stay competitive, Nesco must employ aggressive marketing strategies and maintain high service standards to attract and retain clients. Adapting to evolving customer demands and delivering exceptional experiences will be crucial in facing this competition effectively.
Capital Expenditure and Expansion Plan
Nesco Foods proudly presents its exclusive QSR brands, Indic and Daily Deli, which currently grace our premises with culinary excellence. In line with our commitment to innovation and expansion, we are now poised to elevate these esteemed brands to new heights by introducing them into premier malls, bustling food courts, and dynamic IT parks. Furthermore, our ODC segment undergoes enhancements, extending our culinary expertise to new cities, thereby enriching our culinary footprint and legacy.
Furthermore, our focus extends to the establishment of in-house bakery offerings, including decadent cakes, delicate pastries, and irresistible desserts, allowing us to maintain meticulous quality control while optimising operational efficiency.
For the financial year 2024-25, the division is planning to further increase its revenue stream by adding more restaurants and outlets as well as entertainment facilities within Nesco Center and by further expanding its footprints into outdoor catering and B2B contracts outside the Nesco Center and in other cities of the country.
Achievements
Nesco Foods showcased its culinary expertise at various prestigious events namely:
Prayer Meeting: Catered to 8,500 attendees with meticulous attention to detail.
VVIP Wedding: Executed a grandiose celebration for 4,000 distinguished guests with finesse.
Flying Buffet: Orchestrated a luxurious flying buffet experience for 1,600 discerning guests.
ODC in Udaipur: Seamlessly executed an ODC event in Udaipur, reflecting unparalleled service.
Event: Served an event of 4,000 guests, characterised by sophistication.
Indabrator
Indabrator, our engineering division is a pioneer in the surface-preparation technology. Backed by best-in-class technology, Indabrator boasts one of the largest manufacturing units. Today, Indabrator has an impressive market share and multiple innovations in the pipeline and is the only manufacturer in India for equipment, spares and abrasives all in one location with backward integration.
Developments
Indabrator has effectively capitalised its machines, on opportunities with companies, seeking to establish or expand greenfield and brownfield projects as well as expansion in their existing facility. The sales of spares and abrasives have shown a consistent upward trend.
Indabrator has successfully commissioned high value 28 CFT Tumble Shot Blasting Machine at National Aluminium Company Ltd. ("NALCO") at Orissa. Amongst some of the other machine commissioned for marquee clients like Railways, Defence, Spare, Research and other large national and international organisations in the recent years.
Opportunities and Threats
The biggest opportunity for Indabrator is the longevity in the business, strong and wide client base, its capability and capacity of handling large projects. This division has integrated manufacturing set-up under one roof. Export of Equipment, Spares and Abrasives can be a good opportunity for the Company. Also, the casted products and fabrication can get better prospects for the Company in near mid-term.
However, Compliance to international standards, their requirements and local and international competition from established suppliers is a challenge for the Company.
Since last two years, we were taking small orders with respect to designing and supplying of complete painting or powder coating or phosphating. Next year onwards, we are expecting to increase orders for the said work which would help us to provide full facility under one roof. We will also be focusing on new casted products and customised heavy fabrication opportunities.
Risks and Concerns
For Indabrator, currently the biggest risk is the abrasive market due to import possibilities of the same in the market. Also in machines, there may be a shift in customer demands, competitions and changes in technology. Workplace health and safety and environmental regulations is a challenge. International Companies are setting up its sales and manufacturing infrastructure and are offering cost effective solutions which can be the biggest challenge for Nesco in the near future.
Capital Expenditure and Expansion Plan
Indabrator division is undertaking further upgradation of its process as well as infrastructure. The infrastructure enhancement includes:
Upgrades to factory infrastructure and facilities.
Installation of advanced machinery and equipment.
Ongoing construction projects, including administrative buildings and security enhancements.
Improvements in factory operations and security measures.
Outlook
Our business divisions have seen remarkable growth, underscoring our strategic focus, operational resilience, and dedication to customer satisfaction. The sustained demand in the IT Park sector and the confidence our customers have shown in the BEC division are particularly encouraging. With a robust balance sheet, strong cash flow, and diverse business pipeline, we are primed to leverage the current market upswing and attain our objectives.
Financial Review
Performance of the Company for the FY 2023-24 versus FY 2022-23 is given below:
Rs. in lakhs | |||
Particulars | Audited Financial Results | ||
FY 2023-24 | FY 2022-23 | % increase | |
Revenue from other operations and Other Income | 78,312.87 | 60,911.81 | 28.57 |
EBITDA | 53,120.51 | 41,195.23 | 28.95 |
Profit Before Tax | 46,298.55 | 36,697.03 | 26.16 |
Profit After Tax " | 36,278.36 | 29,063.64 | 24.82 |
Companys performance segment wise for the FY 2023-24 versus FY 2022-23
Rs. in lakhs | |||
Audited Financial Results | |||
Segments | Income from Operations (FY2023-24) | Income from Operations (FY2022-23) | % Increase |
Nesco Realty- IT | 31,832.30 | 29,502.70 | 7.90 |
Park Bombay | 20,907.50 | 15,582.63 | 34.17 |
Exhibition Center Indabrator | 5,149.92 | 4,652.27 | 10.70 |
Nesco Foods | 9,928.77 | 4,862.56 | 104.19 |
Investments
Nesco continues to be debt free with liquid resources of over 1,50,291.04 lakhs as on 31 March 2024. Your Company mostly invests in debt mutual funds, corporate deposits, non-convertible debentures, bonds and preference shares. The volatility in the market may adversely affect the Company due to Mark to Market losses. To overcome this risk, the management reviews the investments on regular basis and verifies the returns and presents the same before the Audit Committee and Board for their consideration every quarter.
Financial Ratios
The Key Financial Ratios are mentioned in note no. 48 of the financial statements and hence not repeated here for the sake of brevity.
Human Resources and Industrial Relations
The Company is committed to fostering an inclusive work environment that supports both professional and personal growth for its employees. It emphasises operational excellence and a strong sense of belonging.
Recognising the crucial role of human resources in its success, the Company prioritises the development of internal talent to take on greater responsibilities.
Throughout the year, efforts were focused on maintaining harmonious relations with employees and workers, alongside initiatives to enhance safety and security measures.
Recruitment, Training and development, performance development and measurement (Balanced Scorecard approach). Employee benefit policies have been standardised, offering flexible benefits and tailored training programs aimed at increasing productivity, efficiency, health and safety. As on 31 March 2024 the Company had 220 permanent employees on rolls.
We have also implemented Adrenaline Max-Human Resource Information System to automate all HR systems and process to bring in speed and efficiencies." We have also embarked on a succession planning and broadened leadership by hiring senior leaders in our Projects and Engineering Strategic Business Unit. Improvements to our compensation and benefits structure are aimed at enhancing retention, covering a robust employee base. We provide in-house meals, various recreational facilities, and a rooftop turf for weekend team games. Participation in festivities and celebrations such as Womens Day, Navratri, Diwali and New Year was conducted. We have been awarded Dream Companies to Work for the second consecutive year for our HR policies and practices.
Enterprise Risk Management ("ERM")
The Company faces various common and general risks that could impact its business, including challenges related to statutory permissions, market conditions, natural disasters, civil unrest, lock down, religious holidays, and the acceptance of exhibitions and events by the intended audience and potential sponsors. To address these risks, the Company has implemented a comprehensive Risk Management Policy, tailored to its specific business environment. Risks are regularly identified by the Board of Directors and Key Management Personnel.
The ERM involves engaging with all functional heads to identify internal and external events that may have an adverse impact on the achievement of the Companys objectives. It also entails periodic monitoring of changes in both the internal and external environment leading to the emergence of new threats/risks.
The risk management follows the process with risk categorisation, implementation of the mitigation measures and plans followed by its periodical monitoring. These steps are discussed and refined at Risk Management Committee meetings. The said Policy is reviewed by the Board on the recommendation of the Risk Management Committee once in two years or at such intervals which calls for a review in the scope of risk management.
The Risk Management Committee constitutes of four members namely two Non-executive Independent Directors, the Managing Director and the Chief Financial Officer. The role of the
Committee covers all the terms of reference as listed in the SEBI Listing Regulations. The Board also regularly reviews these risks.
Internal Audit
Our Companys internal audit is conducted by an independent firm of chartered accountants. The audits are carried out quarterly or according to a calendar plan which is approved by the Audit Committee in advance. Adopting a risk-based approach, the internal auditor targets areas and processes deemed high-risk. Transaction audits are also conducted for specific areas to ensure compliance and detect any irregularities or areas needing improvement. The Audit Committee reviews the internal audit reports every quarter and its findings if any is reported to the Board of Directors. This rigorous internal audit framework enhances transparency, mitigates risks, and boosts overall operational effectiveness.
Internal Control Systems and their Adequacy
The Company has proper and adequate system of internal controls which ensure that all the assets are safeguarded against loss from unauthorised use or disposition and that all transactions are authorised, recorded, and reported correctly.
Our internal financial control framework is commensurate with the size and operations of the business and is in line with requirements of the applicable regulations. We have laid down adequate procedures and policies to guide the operations of our business. Divisional Heads are responsible for ensuring compliance with the policies and procedures laid down by the management. Our internal control systems are routinely tested by the management, statutory auditors and internal auditors. All major findings and suggestions arising out of internal audit are reported to and reviewed by the Audit Committee.
The management ensures implementation of these suggestions and reviews them periodically. The Company continuously strives to evolve, improve and implement the best practices for each of its major functional areas with a view to strengthen its internal control systems.
Cautionary Statement
Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include Global and Indian demand-supply conditions, changes in government regulations and policies, tax regimes, economic conditions within India and the countries within which the Company conducts its business and other such factors.
For and on behalf of the Board of Directors, | |
Krishna S. Patel | |
Mumbai | Chairman and Managing Director |
20 May 2024 | DIN: 01519572 |
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.