Shree Krishna Infrastructure Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian infrastructure sector is one of the key drivers of the economy, encompassing power, bridges, roads, urban infrastructure, and water supply. With the Governments consistent emphasis on "Gati Shakti" and "National Infrastructure Pipeline," the sector has witnessed growing investments and private participation. The real estate and construction markets are also showing steady recovery, supported by policy reforms, affordable housing initiatives, and improving demand outlook.

Globally, economic activity has remained steady, with global GDP expected to grow by 2.8% in 2025. India continues to be among the fastest-growing large economies, propelled by infrastructure expansion, public investment, and resilient domestic consumption.

2. COMPANY OVERVIEW

Shree Krishna Infrastructure Limited operates in the infrastructure and construction segment, focusing on the development of residential and commercial projects. The Company remains committed to sustainable growth through prudent financial management and operational efficiency.

During the financial year 2024-25, the Company achieved total revenue of ?84.13 lakhs as compared to ?86.82 lakhs in the previous year. Profit before tax stood at ?4.61 lakhs and profit after tax was ?3.45 lakhs, reflecting improved cost management and operational discipline.

3. OPPORTUNITIES AND THREATS Opportunities:

?€? Government-led infrastructure spending under PM Gati Shakti, Smart Cities Mission, and PM Awas Yojana.

?€? Rising demand for affordable housing and commercial infrastructure in Tier-II and Tier-III cities.

?€? Increasing focus on sustainable and green infrastructure.

Threats:

?€? Fluctuating prices of construction materials and rising interest rates.

?€? Delay in regulatory approvals and project execution.

?€? High competition and dependence on government contracts.

4. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company primarily operates in a single segment ?€” infrastructure and construction development. During the year, the Company continued its focus on optimizing cost efficiency and ensuring quality standards in ongoing projects.

5. OUTLOOK

The outlook for the infrastructure sector remains positive. With strong government focus and private sector participation, demand for quality infrastructure is expected to grow. The Company aims to expand its operational base by exploring new projects, enhancing execution capabilities, and strengthening its financial position.

6. RISKS AND CONCERNS

The Company operates in a highly regulated sector, exposed to risks such as policy changes, interest rate volatility, and project delays. The Company has a comprehensive risk management policy in place to identify, evaluate, and mitigate these risks.

The Audit Committee periodically reviews the effectiveness of internal control and risk management systems.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal financial controls commensurate with its size and nature of business. Regular internal audits are conducted by independent professionals, and significant audit findings and corrective actions are reviewed by the Audit Committee to ensure the systems adequacy and effectiveness.

8 FINANCIAL PERFORMANCE WTTH RESPECT TO OPERATIONAL PERFORMANCE

The improvement in profitability was primarily driven by cost optimization and effective utilization of resources.

9. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company considers human resources as a key asset. Efforts are made to retain and motivate employees through training, performance appraisal, and professional development programs. The relationship between management and employees continued to remain cordial during the year.

10. ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company is committed to maintaining a safe and healthy work environment. Regular safety drills and compliance audits are conducted to ensure workplace safety and adherence to environmental norms.

11. CAUTIONARY STATEMENT

This report contains forward-looking statements that are based on certain assumptions and expectations of future events. Actual results may differ materially from those expressed herein due to various factors such as economic conditions, government policies, and natural calamities. The Company assumes no responsibility for any outcome that may arise from these forward-looking statements.