Quest Softech India Ltd Management Discussions

This Management Discussion and Analysis report provides analysis of the operating performance of the Companys business as well as discussion on the business of the Company, outlook, risk and opportunities. Statements in this Management Discussion & Analysis Report describing the Companys objectives, projections, estimates and expectation may be "forward looking statements" within the meaning of applicable laws and regulations and actual results may differ.

Industry overview

India aims to expand its electric mobility market, yet the development of EV charging infrastructure, also known as EV supply equipment (EVSE), remains in the early stages. A robust charging infrastructure is crucial for EV market growth, and a healthy ratio between the number of EVs to charging stations is important to encourage early adopters and relieve drivers of range anxiety.

EV sector displayed robust growth in 2024 with uptake shifting from early adopters to the mass market phase in many countries. In 2024, investment in electrified transport surpassed renewable energy, to reach US$757 billion (Source: BNEF). Electric vehicle (EV) sales rose significantly, with over 17.9 million (as of Dec 1, 2024) EVs sold globally, marking a 20% increase from 2023 (Source: BNEF). To support this growth, EV charging installations increased by ~20% to 4.8 million (as of Dec 19, 2024) charging points in 2024 (Source: BNEF).

E-MOBILITY MARKET IN INDIA

The electric mobility sector has also grown significantly over the previous five years, and India is on track to become one of the worlds major EV markets by 2030. The market is anticipated to expand at an average annual rate of 49% between 2021 and 2030, propelled by favourable government efforts and policies, rising air quality concerns, and rising fuel prices. India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years.

Between 2019 and 2020, the industry witnessed a 15% decline in global car sales. However, sales of EVs experienced an unparalleled surge, rising by 43% in the same timeframe. The increase in EV sales prompted the expansion of other parts of the e-mobility ecosystem, such as the charging infrastructure segment, which increased by 40% from 2020 to 2021, to 1.8 million publicly available charging infrastructure points. Between 2020 and 2021, global battery demand more than doubled to 340 GW. Between 2022 and 2030, the e-mobility sector is expected to increase at a 22.5% annual rate, reaching US$ 1.1 trillion by 2030.

Since 2018, EV adoption in India has expanded at an annualised rate of 55%. Adoption has been particularly strong in the electric 2-wheeler (E2W) and electric 3-wheeler (E3W) divisions. India accomplished a significant milestone, with the sale of 1 million EVs in 2022. New innovative business models and technologies emerge in this space, and the Indian start-up ecosystem is poised to lead the way for the mobility market revolution.

Business Overview:

Rising fuel costs and increasing awareness of climate change are driving individuals toward greener mobility solutions, particularly electric vehicles (EVs). This year has witnessed significant growth in car sales, with numerous automotive OEMs launching or showcasing prototypes of upcoming EV models. Several highly anticipated models have demonstrated impressive sales figures, reinforcing a positive outlook for the future of electric mobility.

The Company offers a wide range of charging products and services, including home charging solutions, public charging stations, and fleet management solutions. The products are designed to meet the needs of both electric vehicle owners and businesses that are looking to invest in electric vehicle charging infrastructure. Along with the trading of EV Chargers/stations the company also operates its own charging stations. It also provides different services to the EV Chargers like installation of Chargers, check feasibility and also provides Annual Maintenance Services (AMC Services) to the installed chargers.

Electric Vehicle (EV) Charging Station Business:

EVs are cheaper to run and maintain, safer to drive, and better for the environment, ticking all boxes when it comes to preferences of modern car buyers. EVs continue to prove themselves as viable alternatives to petrol and diesel cars. Hence, EV charging stations are becoming more and more available as greater EV adoption is taking place. The requirement & demand of EV penetration is increasing day by day in India and world. The charging infrastructure availability also played a significant role in EV adoption rates.

Indian Government, in its push for green environment, has been advocating to move from fossil fuel to green fuel. To make this possible, Government of India has a vision to have maximum electrical vehicles by the year 2030. By 2030, the country is forecasted to be home to 102 million EVs, with 2.9 million public charging stations needed to accommodate the growing EV adoption. This increasing number of public charging stations is expected to be driven by a range of players, such as pure-play charge point operators, oil marketing companies, utilities and EV fleet operators.

The Company is operating under both the verticals COCO model and trading model. COCO refers to the money spends towards procuring, installing and maintaining the EV chargers all at its own cost. For chargers that are sold the company provides the service of procuring, installing and provide AMC services for a price. The company has tried to develop the Sale vertical but the response and sale of the charging machines was not picked up. The Company has decided to go for COCO model where the company makes investment in developing own charging station network. Once the chargers are live for usage the company will get regular income.

SWOT ANALYSIS

STRENGTH a) Company has tied up with regular supply of chargers with the Company having developed the quality product b) Professionally managed board of Directors c) End to End Charging Services d) Scalable Infrastructure Development

WEAKNESS a) New entrant in the field of EV charging Station b) The industry depends upon Government Policies c) Charging Time Comparing to ICE Counterparts. d) For passenger cars and LDVs only

OPPORTUNITY a) Growing field of Eclectic Vehicles b) Advanced World-Wide infrastructure set up

THREAT a) Uncertain Consumer Behavior b) The high cost of battery restrict the growth of business c) Uncertain impact on distribution Grids

Outlook

The Electric Vehicle (EV) industry in India is witnessing rapid growth, driven by supportive government policies, increasing environmental awareness, and advancements in battery and charging technologies. The Government of Indias initiatives under the FAME-II scheme, state-level EV policies, and the push towards net-zero emissions by 2070 are expected to accelerate adoption across two-wheelers, three-wheelers, passenger cars, and commercial vehicles.

Rising fuel costs, improving charging infrastructure, and declining battery costs are further boosting consumer acceptance. Industry analysts anticipate a compound annual growth rate (CAGR) of over 40% in EV sales in the coming years, with significant opportunities in electric two-wheelers and public transportation electrification. However, the sector also faces challenges, including the need for greater charging infrastructure penetration, battery recycling solutions, and local manufacturing capabilities for key components. In the medium to long term, with increasing R&D investment and public-private partnerships, Indias EV industry is expected to transition from a nascent stage to a globally competitive market.

Review of financial and operating performance:

The Company recorded a PAT of 46.46 lakhs in FY 2024-25 as against the loss of 210.17 lakhs in FY 2023- 24.

Financial Parameters:

Particulars	As at 31st March, 2025	As at 31st March, 2024	Variance	Explanation because of 25% & More variance
1) Current Ratio (in times)	3.75	9.84	-61.86%	Increase in bank balance has increased current assets. Increase in bank overdraft has increased Current liabilities more proportionately. Hence current ratio reduced
2) Debt Equity Ratio (in times)	0.23	0.00	6189.38%	Due to Borrowing in Current Year
3) Debt Service Coverage Ratio (in times)	3.80	(2.92)	-230.13%	Decrease in expenses and decrease in debt
4) Return on Equity Ratio (in %)	0.9%	-12.2%	-107.71%	Increase is mainly due to Increase in Revenue from Operations.

 

Particulars	As at 31st March, 2025	As at 31st March, 2024	Variance	Explanation because of 25% & More variance
5) Trade Receivables Turnover Ratio (in times)	3.29	1.87	76.20%	Increase is mainly because the proportion of increase in revenue is more than increase in receivable from Operation.
6) Trade Payables Turnover Ratio (in times)	4.87	4.62	5.37%	No Significant changes
7) Net Capital Turnover Ratio (in times)	0.06	0.09	-33.96%	Decrease is mainly because the growth in working capital in current financial year as compared to previous year.
8) Net Profit Ratio (in %)	-24.0%	-204.5%	-88.28%	Increase in revenue and operations
9) Return on Capital Employed (in %)	(0.01)	(0.13)	-88.50%	Increased in Revenue from Operations
10) Inventory Turnover Ratio	19.8%	42.2%	-53.08%	Decreased Mainly due to
(in %)				Decreased in inventory
11) Return on Investment (in %)	-	-	-	-

Definitions:

1) Current Ratio (in times) = Current Assets / Current Liabilities

2) Debt Equity Ratio (in times) = Debt / Equity

3) Debt Service Coverage Ratio (in times) = Earnings for debt service (Net Profit after tax + Non-cash operating expenses: (Depreciation and amortisation + Finance Cost + Exceptional Loss) / Debt service (Interest & Lease Payments + Principal Repayments of long term borrowings)

4) Return on Equity Ratio (in %) = Net Profit After Tax / Shareholder equity

5) Inventory Turnover Ratio (in times) = Cost of goods sold / Average Inventory

6) Trade Receivables Turnover Ratio (in times) = Revenue from operations / Trade Receivables

7) Trade Payables Turnover Ratio (in times) = Operating Expenses and Other expenses / Trade Payables

8) Net Capital Turnover Ratio (in times) = Revenue from operations / Working Capital

9) Net Profit Ratio (in %) = Net Profit before Tax / Revenue from operations

10) Return on Capital Employed (in %) = Earnings before interest and tax / Capital employed (Net worth + Long term borrowings - Deferred tax assets) 11) Return on Investment (in %) = Interest income on bank deposits / Bank Fixed Deposits

Internal Controls and its adequacy

Adequate internal control ensures transactions are authorized, recorded and reported correctly and assets are safeguarded against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. The Company has been reviewing its internal control systems and processes continuously and company have a separate department of internal control for continuous surveillance.

Material development in Human Resource including number of people employed

During the year under review, the Company continued to strengthen its human resource capabilities by focusing on employee engagement, training, and skill enhancement initiatives. Various programs were conducted to promote professional growth, workplace safety, and a culture of collaboration. The Company maintained a harmonious work environment with cordial employee relations across all levels.

No material changes occurred in the nature of the human resources function during the year. As on March 31, 2025, the Company had 11 employees on its rolls. The Company remains committed to attracting, developing, and retaining talent to support its long-term business objectives.

For and on behalf of the Board of Directors

Ampvolts Limited (Formerly known as Quest Softech (India) Limited)

	Vipul Chauhan	Naimish Raval
	Managing Director	Executive Director
	(DIN: 01241021)	(DIN: 09359061)
Date : 13th August, 2025
Place : Vadodara