Rungta Irrigation Ltd Management Discussions

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(Forming part of Directors Report for the year ended 31^st March, 2025)

1. ECONOMIC REVIEW

As agriculture moves toward sustainable practices, water availability has emerged as a major challenge. Unpredictable rainfall and growing population pressures are depleting water resources at an alarming rate.

Recognizing the critical importance and finite nature of water, equitable distribution and the adoption of water-conserving practices are no longer optional but essential for sustainable development.

Innovative irrigation models such as drip and sprinkler systems have proven highly effective, enabling better control and real-time monitoring of water use.

In view of this, the Government of India has emphasized micro-irrigation through initiatives like "Har Khet Ko Pani" under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). However, despite central and state efforts, farmer adoption remains limited and requires further incentivization.

2. MICRO IRRIGATION - A RELIEF FOR DROUGHT PRONE AREAS:

Indian agriculture remains heavily dependent on monsoon rainfall, making it vulnerable to climatic fluctuations. In drought-prone regions such as Maharashtra, Karnataka, Andhra Pradesh, Odisha, Gujarat, Madhya Pradesh, and Rajasthan, erratic rainfall often leads to crop failures and financial distress for farmers.

States like Rajasthan, Haryana, Bihar, and others are ideal for micro-irrigation, which can mitigate rainfall variability, conserve water, and improve resilience. Drip and sprinkler systems can reduce water consumption by up to 70%, improve water-use efficiency by 30 70%, and increase farmer incomes by 10 69%. These benefits contribute significantly to agricultural sustainability and income stability.

3. COMPANY PROFILE

Rungta Irrigation Limited, a pioneer in Indias irrigation sector, is a professionally managed company with over four decades of experience in manufacturing, supplying, and executing water management and micro-irrigation solutions. Established with a vision to contribute to agricultural sustainability and rural prosperity, the Company has consistently expanded its footprint across the country through innovation, quality, and customer trust. The Company is one of the leading manufacturers of a wide range of high-quality piping systems, including: Self-fit PVC Pipes, Elastomeric PVC Pipes, Casing Pipes, HDPE Pipes, MDPE Pipes, RMS (Rungta Modular System) Pipes, Sprinkler Irrigation Systems, Drip Irrigation Systems (Online and Inline). Rungta Irrigation Limited is ISO 9001:2015 certified, reflecting its commitment to maintaining stringent quality standards across all operations. Over the years, the With a strong PAN-India presence, the Company now operates three state-of-the-art manufacturing units located at:

1. Ghaziabad, Uttar Pradesh

2. Yanam, Puducherry (U.T.)

3. Greater Noida, Gautam Buddha Nagar, Uttar Pradesh

These facilities are equipped with advanced machinery and adhere to rigorous quality control processes to ensure high efficiency and consistent product quality.

Rungta Irrigation has established an extensive marketing and distribution network through regional branches and authorized distributors across major Indian states, including: Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Telangana, Tamil Nadu, Karnataka, Rajasthan, Haryana, Punjab, Himachal Pradesh, Uttarakhand, Jharkhand, Bihar, West Bengal, Odisha, Assam, Chhattisgarh and Andhra Pradesh.

4. INDUSTRY OVERVIEW

The India Micro Irrigation Systems Market size is estimated at USD 0.71 Billion in 2025, and is expected to reach USD 1.20 billion by 2030, growing at a CAGR of 11.10% during the forecast period (2025-2030).

India is an agriculture-dependent country, and agriculture in India is rain-fed. So there is a potential for promoting micro irrigation in the market. Rajasthan is a state with high micro-irrigation adaptability and has a large area under micro-irrigation due to the lack of water resources in the state.

Furthermore, Indian farmers have been increasingly encouraged to adopt micro-irrigation systems on open fields for efficient water usage and an increase in agricultural yield. The area under open field micro-irrigation is higher than greenhouses in the country. Most of the greenhouses equipped with micro-irrigation in the country are used for horticultural production, with more farmers inclining toward greenhouse cultivation owing to benefits such as year-round production.

The drip irrigation system dominated the market in 2025, owing to higher subsidies offered by the central and state governments in various states. The maximum adoption of the drip irrigation system is witnessed for fruit crops, followed by plantation crops, in terms of area coverage.

Source:https://www.mordorintelligence.com/industry-reports/india-micro-irrigation-systems-market

5. INDIAN ECONOMY

The Indian economy remained resilient in FY 2024 25, overcoming global headwinds such as geopolitical tensions, inflationary pressures, and volatility in commodity prices.

Despite global uncertainties, Indias economic fundamentals remained strong, supported by robust domestic demand, prudent fiscal policies, structural reforms, and targeted government interventions.

Indias Gross Domestic Product (GDP) for the financial year 2024 25 grew by 6.4%, marginally higher than the previous years growth of 6.3%. This exceeded many projections, including those from international agencies, and reaffirmed Indias position as one of the fastest-growing major economies in the world. The growth was driven by strong performances in sectors such as manufacturing, construction, financial services, and government spending, as well as a better-than-expected recovery in private consumption.

The real GDP (adjusted for inflation) stood at approximately 184.88 lakh crore, compared to 173.82 lakh crore in FY 2023 24. This growth underscores the impact of government reforms, infrastructure investment, and the expanding digital economy.

From a sectoral perspective:

Agriculture and allied activities registered a healthy growth of 3.8%, despite challenges posed by a sub-normal monsoon in some regions.

Construction grew at a robust pace of 9.4%, supported by continued infrastructure development and government-backed housing projects.

Mining and quarrying, however, witnessed a marginal decline of 0.1%, impacted by fluctuations in global demand and regulatory constraints.

Inflation remained largely under control during the year. The Consumer Price Index (CPI)-based inflation fell to 3.67% in April 2025, down from 4.83% in March 2024, reflecting effective monetary policy management. The moderation in core inflation and deflation in fuel prices contributed to the easing of overall price pressures.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained a status quo on the repo rate at 6.00%, adopting a calibrated approach. The stance of "withdrawal of accommodation" was maintained to ensure inflation remains within the target range, while also supporting growth momentum.

Indias fiscal position improved during the year with higher-than-anticipated tax revenues, especially from direct and indirect taxes, and better control over subsidies. This fiscal prudence allowed the government to sustain public investment in key sectors like infrastructure, agriculture, and energy without widening the fiscal deficit significantly.

Further, a number of reform-oriented initiatives undertaken by the government continued to yield results, including:

i. Promotion of indigenous manufacturing through the "Make in India" and "Atma nirbhar Bharat" initiatives. ii. Digitization and formalization of the economy. iii. Improvements in the Ease of Doing Business and labor code rationalization. iv. Expansion of digital public infrastructure (e.g., UPI, Aadhaar, and ONDC).

India also retained its position as a global hub for digital innovation, renewable energy investments, and a growing start-up ecosystem, attracting significant foreign direct investment (FDI) during the year.

Looking ahead, Indias macroeconomic outlook remains positive, supported by strong demographics, expanding urbanization, and the governments focus on sustainable development, inclusive growth, and infrastructure-led expansion. The economic environment provides a supportive backdrop for sectors like irrigation, agriculture, infrastructure, and water management to scale up and align with the broader national development agenda.

6. GOVERNMENT INITIATIVE:

Water availability and efficient irrigation remain central to Indias long-term agricultural and rural development goals. Recognizing the critical importance of water management in ensuring food security and sustainable livelihoods, the Government of India has launched and strengthened several flagship initiatives aimed at improving irrigation infrastructure, promoting micro-irrigation, and enhancing water-use efficiency across the country.

6.1 Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

Launched in 2015 16, the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) serves as an umbrella scheme to expand irrigation coverage and improve water-use efficiency on farms. The scheme aims to achieve the vision of "Har Khet Ko Pani" (Water to Every Field) and "More Crop per Drop", thus promoting judicious use of water resources.

PMKSY is a convergence of various existing and new schemes under a single framework, with coordinated implementation by different ministries. It consists of the following major components:

Accelerated Irrigation Benefits Programme (AIBP): Focuses on completing long pending major and medium irrigation projects to provide assured irrigation.

Har Khet Ko Pani (HKKP): Targets creation and restoration of water sources. It includes four sub-components:

a. Command Area Development and Water Management (CAD&WM) b. Surface Minor Irrigation (SMI) c. Repair, Renovation, and Restoration (RRR) of Water Bodies d. Ground Water Development

Per Drop More Crop (PDMC): Implemented by the Department of Agriculture & Farmers Welfare, this sub-scheme promotes micro-irrigation technologies such as drip and sprinkler irrigation, enabling efficient on-farm water use.

Watershed Development Component (WDC-PMKSY): Overseen by the Department of Land Resources, it focuses on developing rain-fed areas to enhance water harvesting and recharge capabilities.

The PMKSY scheme has been extended for the period 2021 22 to 2025 26, with an overall outlay of 93,068.56 crore, comprising:

i. 37,454 crore as Central Assistance, ii. 35,180 crore as State share, iii. 20,434.56 crore for debt servicing to NABARD under AIBP.

The scale of funding reflects the governments long-term commitment to building water security and climate-resilient agriculture.

6. 2 Role of the Ministry of Jal Shakti

The Ministry of Jal Shakti, established to consolidate water-related governance, plays a pivotal role in framing national water policies, coordinating state efforts, and implementing programs to ensure sustainable water development and management. While irrigation projects are primarily implemented by state governments, the Centre acts as a facilitator by providing:

- Technical assistance, - Policy frameworks,

- Financial support under centrally sponsored schemes.

The Ministry also oversees programs for aquifer mapping, groundwater recharge, river rejuvenation, and water resource management.

6.3 Other Key Government Measures Supporting Irrigation Sector

- Increased allocation in Union Budgets for irrigation, rural infrastructure, and agri-tech adoption.

- Subsidies on micro-irrigation systems under the PMKSY-PDMC component, especially in states facing acute water stress. - Digital initiatives for real-time monitoring of irrigation projects and water flow (such as water budgeting apps and remote sensing).

- Public-private partnerships (PPP) encouraged in micro-irrigation implementation and drip/sprinkler system distribution.

- Promotion of climate-resilient agriculture, including capacity building for farmers on water-efficient practices.

These initiatives have created a favorable policy and regulatory environment for the growth of the micro-irrigation sector, and companies like Rungta Irrigation Limited are well-positioned to support and scale these national objectives through innovation, manufacturing, and EPC services.

7. OUTLOOK

The Indian irrigation and micro-irrigation industry is set to grow steadily, driven by increasing water scarcity, the need for sustainable agriculture, and the Governments consistent push for rural infrastructure development. As per market research, the Indian micro-irrigation system market is projected to grow at a CAGR of over 12% during 2024 2029, supported by central schemes like Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and state-level subsidies for drip and sprinkler systems.

Additionally, the budget allocation of over 10,000 crore under PMKSY and enhanced funding for ‘Per Drop More Crop initiatives underscore the governments priority toward water-use efficiency. The growing emphasis on climate-resilient farming practices, particularly in water-deficit regions, has increased the demand for precision irrigation solutions.

At the same time, the EPC sector in water supply and irrigation projects has seen rising allocation and execution, with increasing participation of private players in turnkey rural water distribution and canal network projects. The implementation of the Jal Jeevan Mission, along with interlinking of rivers and lift irrigation schemes, opens up a wide spectrum of opportunities.

Rungta Irrigation Limited, with its strong presence in manufacturing drip and sprinkler systems and experience in executing government irrigation contracts, is well-placed to capitalize on this positive momentum. The Company is also expanding its reach by adding new units like the one recently commissioned at Industrial Plot N-18, Sector Ecotech-11, Greater Noida, enabling it to cater more efficiently to Northern and Central India.

Going forward, the Company aims to scale up operations, invest in technology-driven irrigation solutions, and participate in large-scale government and institutional tenders. With favourable macroeconomic trends and robust policy support, the outlook for the Company remains optimistic.

8. RISKS/THREATS:

The irrigation and water infrastructure sector, while holding substantial growth potential, is not without its share of challenges. Rungta Irrigation Limited remains vigilant to the dynamic risk landscape and continuously undertakes steps to mitigate potential threats. The key risks and challenges faced by the Company are outlined below:

1. Policy and Regulatory Risks: The Companys business is significantly dependent on various government schemes and state-level subsidy programs. Any adverse changes in regulatory policies, delays in subsidy disbursements, or reduction in budgetary allocations under schemes like PMKSY may directly impact the Companys order inflow and working capital cycle.

2. Climate and Environmental Risks: Unpredictable monsoon patterns, extended droughts, or excessive rainfall due to climate change can affect demand for irrigation systems. Inconsistencies in crop cycles and water availability may influence farmers purchasing decisions, particularly in rain-fed and marginal regions.

3. Project Execution and Working Capital Risk: A substantial part of the

Companys business is derived from EPC contracts and government tenders.

Delays in project execution due to administrative bottlenecks, land acquisition issues, or delayed clearances can lead to cost overruns and pressure on margins. Moreover, delayed payments from government departments can affect liquidity.

4. Input Cost Volatility: The Company is exposed to fluctuations in the prices of raw materials like plastic resins, PVC, and steel. Any sharp and sustained rise in input costs without corresponding increase in product pricing may adversely affect profitability.

5. Competition and Technological Obsolescence: The sector continues to witness rising competition from both organized and unorganized players, particularly in the micro-irrigation segment. Further, rapid technological advancements may render existing products less attractive if the Company does not invest adequately in R&D and innovation.

6. Dependence on Agricultural Sector: Since the Companys core business is closely linked with agriculture, any structural weakness in farm income, crop prices, or rural credit availability can impact demand for its products and solutions.

7. Logistical and Distribution Challenges: Expanding to remote and underserved rural areas poses logistical hurdles. Efficient supply chain management and last-mile connectivity remain critical for timely delivery and customer service.

To address these risks, the Company follows a proactive risk management framework, focusing on diversification of revenue streams, operational efficiency, prudent working capital management, and strengthening of institutional business. The management continues to monitor external and internal developments and take corrective steps to safeguard the Companys long-term interests.

9. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE Product Group Details

Name of Product(s) or Service(s)	Net Operational Revenue (in Lakhs)
	FY 2024-25	FY 2023-24
Aluminium & HDPE Pipe Coupled	3324.73	6468.94
PVC Pipe	3041.76	1772.26
HDPE Coils & MDPE Coils	9808.43	4214.85
LLDPE Pipe	2910.09	507.59
Accessories, Fitting & Others	2849.91	1913.67
Total Net Operational Revenue of Products/ services	21934.92	14877.30

10. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Rungta Irrigation Limited has established a comprehensive internal control framework that is commensurate with the size, scale, and complexity of its operations. The internal control system is designed to ensure:

- Accuracy and reliability of financial reporting, - Compliance with applicable laws and regulations, - Efficient conduct of business operations, and

- Protection of the Companys assets from unauthorized use or losses.

The Company follows well-defined Standard Operating Procedures (SOPs) and control mechanisms across key operational areas including procurement, production, inventory, sales, finance, and project execution. These controls are periodically reviewed and updated in line with evolving business needs.

Key components of the internal control framework include:

- Internal Audit: The internal audit function operates independently and evaluates the adequacy and effectiveness of internal controls across various functional areas. Internal audit reports are reviewed by the management and presented to the Audit Committee for oversight and corrective actions, wherever necessary. - Audit Committee Supervision: The Audit Committee of the Board, comprising

Independent Directors, plays a key role in monitoring the Companys internal control environment. It regularly reviews audit observations, risk assessment reports, and management responses to ensure effective implementation of corrective measures. - Compliance Monitoring: The Company ensures timely compliance with all applicable legal, regulatory, and accounting requirements. A system is in place to track statutory filings, returns, and disclosures under corporate, tax, labour, and environmental laws. The Board and senior management are updated on critical compliance matters from time to time.

The Board is of the view that the internal control systems in place are adequate and effective, and provide a reasonable assurance regarding the orderly conduct of business and safeguarding of assets. The Company continues to strengthen its internal control practices in line with governance best practices and regulatory expectations.

11. FINANCIAL DISCUSSION & ANALYSIS

The financial year 2024 25 marked a period of strong operational growth and improved financial performance for the Company, despite external macroeconomic pressures and inflationary input costs. The financial highlights for the year reflect improved revenue generation, effective cost control, and sustained profitability.

A. OPERATING RESULTS

The following table presents key components of the Statement of Profit and Loss of the Company for the financial years ended March 31, 2025 and March 31, 2024, along with each item shown as a percentage of total revenue:

Particulars	FY 2024 25 ( in lakh)	% of Revenue	FY 2023 24 ( in lakh)	% of Revenue
Revenue from Operations	21,934.92	99.09%	14,877.30	97.48%
Other Income	200.57	0.91%	385.67	2.52%
Total Income	22,135.49	100.00%	15,262.97	100.00%
Purchases of Stock-in- Trade	4,123.47	18.63%	1,718.29	11.26%
Cost of Materials Consumed	11,460.25	51.79%	8,223.14	53.89%
Change in Inventories	347.87	1.57%	(46.93)	(0.31%)
Employee Benefit Expenses	1,045.28	4.72%	1,015.99	6.65%
Finance Cost	208.35	0.94%	122.40	0.80%

 

Particulars	FY 2024 25 ( in lakh)	% of Revenue	FY 2023 24 ( in lakh)	% of Revenue
Depreciation and Amortization	231.68	1.05%	199.78	1.31%
Other Expenses	3,836.62	17.34%	3,268.97	21.41%
Total Expenses	21,253.52	96.02%	14,501.64	95.01%
Profit before Tax	881.97	3.98%	761.33	4.99%
Tax Expense	259.59	1.17%	196.27	1.29%
Profit for the Year	622.38	2.81%	565.06	3.70%
Other Comprehensive Income (OCI)	3.15	0.01%	(3.66)	(0.02%)
Total Comprehensive Income	625.53	2.83%	561.40	3.68%

Overview

During the financial year 2024 25, the Company registered a total income of 22,135.49 lakh, representing a growth of approximately 45.08% over the previous years total income of 15,262.97 lakh. The increase was driven primarily by a 47.38% rise in revenue from operations, reflecting robust demand and an increase in domestic sales volumes. Export sales also grew modestly during the year.

The cost of materials consumed rose by around 39.4%, in line with the increase in production volumes, while purchases of stock-in-trade surged by 140% due to changes in product mix and procurement strategy. Despite inflationary pressures, employee benefit expenses remained stable, with a marginal rise of 2.88%. Finance costs increased due to higher borrowings, while depreciation remained within expected levels following routine capital investments.

The Company achieved a profit before tax of 881.97 lakh, a 15.84% increase from

761.33 lakh in the previous year. Net profit after tax stood at 622.38 lakh, growing by 10.15% over FY 2023 24. The operating efficiency and better cost absorption are reflected in the improved absolute earnings, despite slight dilution in margins due to higher trading activity and procurement costs.

B. SUMMARY OF BALANCE SHEET

Overview

1. Assets

A. Non-Current Assets

Non-current assets increased to 4,058.19 lakh in FY 2025 from 3,723.83 lakh in FY 2024, indicating capital investment and asset build up.

- Property, Plant and Equipment: Increased slightly to 1,636.87 lakh from

1,577.29 lakh, due to additions in Plant & Machinery and Vehicles, indicating ongoing operational expansion.

- Capital Work-in-Progress (CWIP): 37.56 lakh was reported, reflecting ongoing projects and installation of new assets.

- Intangible Assets Under Development: Increased from 32.35 lakh to 39.81 lakh, denoting investments in digital or intellectual property assets.

- Investments: Marginally decreased from 1,393.64 lakh to 1,393.08 lakh, suggesting stability in long-term financial instruments.

- Other Financial Assets: Notably rose to 904.85 lakh from 675.70 lakh, primarily due to higher fixed deposits.

- Deferred Tax Assets: Slight increase from 44.85 lakh to 46.02 lakh.

B. Current Assets

Current assets witnessed a significant rise to 10,922.76 lakh in FY 2025 from

7,854.51 lakh in FY 2024.

- Inventories: Declined to 1,057.38 lakh from 1,496.73 lakh, indicating better inventory turnover or sales efficiency.

- Trade Receivables: Nearly doubled, surging to 8,595.54 lakh from 4,524.37 lakh, reflecting strong sales growth but requiring close monitoring for collection efficiency. - Cash and Cash Equivalents: Stable at 8.28 lakh, compared to 8.01 lakh. - Loans and Other Financial Assets: Loans decreased to 16.05 lakh from

424.88 lakh; other financial assets rose to 6.14 lakh from 4.08 lakh.

- Current Tax Assets: Increased significantly to 39.21 lakh from 3.07 lakh. - Other Current Assets: Slight increase to 1,200.16 lakh from 1,393.37 lakh, mainly due to changes in advances to suppliers and prepaid expenses.

2. Equity and Liabilities

A. Equity

- Share Capital: Slight reduction in share capital to 1,992.32 lakh due to forfeiture of 614 equity shares, related to right issue. - Other Equity: Increased to 7,331.88 lakh from 6,696.35 lakh, reflecting retained profits and stable reserves.

B. Non-Current Liabilities

Marginal increase to 220.31 lakh in FY 2025 from 202.54 lakh.

- Borrowings: Increased to 158.24 lakh from 149.99 lakh, due to long-term loans for capital investments. - Long-Term Provisions: Rose slightly to 62.07 lakh from 52.55 lakh, mainly on account of gratuity obligations.

C. Current Liabilities

Current liabilities rose sharply to 5,446.44 lakh in FY 2025 from 2,687.10 lakh in FY 2024.

- Short-Term Borrowings: Jumped significantly to 2,640.03 lakh from 938.26 lakh, indicating increased reliance on working capital borrowings. - Trade Payables: More than doubled to 1,075.66 lakh from 446.80 lakh, suggesting higher procurement and activity levels. - Other Current Liabilities: Increased to 1,646.21 lakh from 1,220.99 lakh. - Short-Term Provisions: Stood at 10.98 lakh, slightly up from 9.53 lakh.

C. Cash Flow Analysis

Particulars	FY 2024 25	FY 2023 24	Remarks
A. Net Cash from Operating Activities	(1,440.70)	(281.56)	Substantial cash outflow mainly due to increase in trade receivables and working capital changes
B. Net Cash from Investing Activities	(134.09)	(54.04)	Outflow due to continued investment in property, plant and equipment, partly offset by interest received
C. Net Cash from Financing Activities	1,575.06	332.70	Major inflow on account of borrowings during the year
Net Increase/(Decrease) in Cash & Cash Equivalents	0.27	(2.90)	Net marginal increase in closing cash position
Opening Cash & Cash Equivalents	8.01	10.91	-
Closing Cash & Cash Equivalents	8.28	8.01	Stable cash position maintained

Overview:

During FY 2024 25, the Company witnessed a significant cash outflow from operations ( 1,440.70 lakh) primarily due to a steep rise in trade receivables and inventory adjustments. Despite negative cash from operations, the Company maintained a positive net cash position through financing iflows of 1,575.06 lakh, primarily sourced from borrowings. Investing activity remained focused on asset acquisition. Overall, the year closed with a slight increase in cash and cash equivalents at 8.28 lakh, indicating a stable liquidity position despite operational challenges.

D. KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios. The details of Key Financial Ratios for FY 2024-25 and FY 2023-24 are given below:

S. No. Particulars	Methodology	As at March 31, 2025	As at March 31, 2024	Variance
a) Current Ratio	Indicates the Companys ability to meet short-term obligations using its current assets	2.01	2.92	-31%
b) Debt Equity Ratio	Measures the proportion of debt funding compared to shareholders equity	0.30	0.13	140%
c) Debt Service Coverage Ratio	Reflects the Companys ability to service its debt from operating income	2.69	11.47	77%
d) Return on Equity (%)	Indicates the return generated on the shareholders equity invested in the business	6.95%	6.46%	4%
e) Inventory Turnover Ratio	Shows how efficiently the Company manages its inventory in relation to revenue	17.18	9.58	79%
f) Trade Receivables Turnover Ratio	Reflects how effectively the Company collects its dues from customers	3.34	3.78	-12%
g) Trade Payables Turnover Ratio	Indicates the speed at which the Company pays its suppliers	20.28	25.39	-20%
h) Net Capital Turnover Ratio	Measures the efficiency in utilization of working capital to generate revenue	4.01	2.88	39%
i) Net Profit Margin (%)	Represents the percentage of net profit earned from total revenue	2.81%	3.70%	-24%
j) Return on Capital Employed (%)	Indicates profitability in relation to the capital employed in the business	11.44%	9.94%	15%
k) Return on Investment (%)	Measures the appreciation in the value of non-current quoted investments over the year	84.91%	25.75%	230%

12. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

Human resources continue to be one of the most vital components for sustainable growth and operational excellence of the Company. The Company believes that its people are its most valuable assets and a key differentiator in achieving strategic objectives. Accordingly, significant emphasis is laid on attracting, retaining, and nurturing talent to ensure a highly competent, motivated, and future-ready workforce.

During the year under review, the Company maintained a strong human capital base, comprising a total workforce of 191 employees as on March 31, 2025. This includes a diverse pool of professionals such as engineers, chartered accountants, managers, and other skilled and unskilled personnel. Employees are strategically deployed across various functions and geographies, with dedicated teams stationed at the Corporate Office as well as at all project sites to support the seamless execution of operations.

The Company has been continuously investing in capacity-building initiatives aimed at professional growth, leadership development, and technical upskilling of employees. Regular training programs and workshops were conducted for employees at various levels, with a focus on enhancing operational efficiency, health and safety practices, and project management capabilities. Specialised training was also imparted for the operations and maintenance of power stations, with support from domain experts and equipment suppliers to ensure the workforce remains abreast of evolving technologies and industry best practices.

The Company has been fostering a culture of meritocracy, accountability, and continuous learning, thereby enabling employees to take on expanded roles and responsibilities in alignment with organizational goals. Performance management processes have been streamlined to encourage employee development and recognize excellence.

Industrial relations remained harmonious and constructive throughout the financial year. The Company values open communication and mutual respect between management and employees, which has helped in maintaining a conducive work environment. No industrial disputes were reported during the year, reflecting a healthy and productive relationship with employees at all levels.

The Company remains committed to strengthening its human resource practices and fostering a culture of innovation, engagement, and inclusivity to drive long-term value creation.

		For and on behalf of the Board
	Sd/-	Sd/-
	Shruti Jain	Mahabir Prasad Rungta
	Whole-Time Director	Chairman & Managing Director
	DIN: 00229045	DIN: 00235632
Date: 28-08-2025
Place: New Delhi