Tantia Constructions Ltd Management Discussions

ANNEXURE - G

MANAGEMENT DISCUSSION AND ANALYSIS REPORT- F.Y. 2024-25

Twamev Construction and Infrastructure Limited (hereinafter referred to as "the Company"), is now on a multi-year growth trajectory, evidenced by strengthening fundamentals. With a cleansed balance sheet and focused strategy, the company is targeting steady revenue expansion and margin improvement in the coming years.

During the year under review, the Board of Directors have been entrusted with the management of the affairs of the Company.

1. ECONOMIC OVERVIEW

1.1 Global Economic Overview

The global economy in 2025 remains resilient yet challenged by persistent uncertainties. Following growth of 3.3% in 2024, global GDP is projected to expand by 2.8% in 2025 and 3.1% in 2026, according to IMF forecasts. The moderation reflects easing inflationary pressures, measured monetary easing by some central banks, and stable domestic demand in major economies, countered by heightened geopolitical risks, trade disruptions, and structural shifts in supply chains.

Advanced economies are expected to grow by 1.4% in 2025, with the US maintaining moderate momentum, while the Euro Area recovers gradually. Emerging and developing economies will continue to drive global growth, aided by consumption and investment recovery. Global inflation, which eased to 5.7% in 2024 from 6.8% in 2023, is projected to fall further to 4.3% in 2025 and 3.6% in 2026.

1.2 Indian Economic Overview

India continues to stand out as the fastest-growing major economy, with real GDP estimated to grow by 6.4% in FY 2024-25, driven by robust services, rural demand recovery and sustained public capital expenditure. Inflation has remained within the RBIs tolerance band, supported by stable commodity prices.

In FY 2025-26, growth is expected to remain strong, anchored by infrastructure-led public investment, private sector capex revival supported by the PLI scheme, and stable macro fundamentals. Risks include volatility in energy prices, monsoon variability and export demand slowdown. Nevertheless, Indias demographic advantage, reform momentum and governance improvements are expected to sustain growth.

2. INDIAS INFRASTRUCTURE SECTOR

Infrastructure development remains central to Indias growth agenda, with the Union Government sustaining high capital expenditure levels and leveraging innovative financing to attract private investment. From FY 2020 to FY 2024, central government capex in infrastructure grew at an average annual rate of nearly 39%.

In FY 2024-25, despite a slowdown during the election period, spending accelerated from mid-year. Key developments included:

? Expansion of the National Infrastructure Pipeline to over 9,700 projects across 37 subsectors.

? Completion of cumulative transactions worth 3.86 lakh crore under the National Monetisation Pipeline between FY 2022 and FY 2024.

? Commissioning of more than 2,000 km of new railway lines and near-completion of the Dedicated Freight Corridor.

? Growth in national highway length to 1.46 lakh km with faster corridor development.

? Port expansions and operationalisation of 619 UDAN routes in civil aviation.

The governments Viksit Bharat@2047 vision will continue to drive integrated, technology-enabled and sustainable infrastructure growth.

3. COMPANY BUSINESS OVERVIEW

The Company has decades-long track record in infrastructure construction, with a strong legacy of project execution. It grew to national prominence with landmark projects in roads, railways, bridges and urban infrastructure. Following a challenging period (2015 – 2023) of financial stress and insolvency proceedings, a successful resolution has repositioned the company for stability. New promoters took charge in late 2023 implementing governance and financial restructuring to set the Company on a sustainable, profitable path.

Major Achievements:

The Company has successfully secured the following projects during the financial year under review:

1. Construction of RCC Bridge over Abhayacherra on Barpathari to Tulamura road at Ch.4.50 KM (Job No.TP/COM/1/2012- 13) for implementation under NABARD (RIDF-XII) (Length=43.120 m)/ Balance Work.

2. Civil works for Construction of Road Over Bridge (ROB) (end-to-end including approach) in lieu of Level Crossing No. 2 at km 1296/11-12 at Mahoba-Khajuraho Section of North Central Railway.

3. Construction of Road Over Bridge in lieu of Level Crossing No. 476 In Banda-Manikpur Section.

4. Construction of the proposed Road Over Bridge (ROB) span (1x60 mtr. Bow String Girder+1x18 mtr composite Girder) at RLY. km 425/21-23 in lieu of LC No.183 between Brag- Mcs Stations and (2) Construction of Road Over Bridge (ROB) span (1x36 mtr. Bow String Girder) at RLY. km. 608/14-16 in lieu of LC. No. 317 between BAM-GTA stations on BHC- PSA main line of Khurda Road Division.

5. Design, Supply, Construction and Operation and Maintenance of Passenger Ropeway at Shillong Peak, Shillong, Meghalaya, India. (EPC Mode)". (KEC-TCL JV)

These achievements are a testament to the Companys consistent efforts in enhancing its operational capabilities and strengthening its market presence.

4. QUALITY CONTROL

The Company maintained a rigorous quality control framework in FY 2024-25, combining decades of industry expertise with modern monitoring practices. Enhanced site supervision, close oversight over major projects and a well-trained workforce ensured adherence to specifications, minimised rework and improved client satisfaction.

5. RISKS AND CONCERNS

Key risks include project execution delays due to clearances, cost escalation from material price volatility, working capital pressures from delayed client payments and labour availability challenges. Regulatory changes in taxation or environmental norms may also impact project economics.

Mitigation measures adopted include diversification of the order book, advance procurement contracts, escalation clauses in agreements, skill development initiatives and proactive stakeholder engagement.

6. SWOT ANALYSIS

Strengths:

_ Established brand and execution track record

_ Strong order book in diversified infrastructure sectors

Weaknesses:

_ High working capital requirements

_ Dependence on public sector contracts

Opportunities:

_ Rising infrastructure spending under government programmes

_ Scope for diversification into new infrastructure segments

Threats:

_ Commodity price volatility

_ Intensifying competition and regulatory changes

7. STRATEGY AND OUTLOOK

The Companys strategy focuses on disciplined project execution, selective bidding in high-margin segments, geographic diversification, and adoption of technology for operational efficiency. The Companys strategy for FY 2025-26 and beyond is anchored on four key pillars: operational excellence, strategic diversification, technology adoption and financial prudence.

_ Operational Excellence: The Company aims to maintain industry-leading execution capabilities by adopting advanced project management methodologies, optimising resource allocation and ensuring strict adherence to quality and safety standards. A focus on reducing project cycle times through better planning and integrated supply chain coordination will be central to this effort.

_ Strategic Diversification: The order book will be balanced across roads, bridges, urban infrastructure and emerging segments such as ropeways. The Company plans to deepen its presence in high-growth states while selectively exploring opportunities in new geographies, both domestically and through strategic partnerships.

_ Technology Adoption: Leveraging digital solutions for site monitoring, procurement and cost tracking will enhance transparency and decision-making speed. The Company also intends to expand its use of Building Information Modelling (BIM) and predictive analytics to improve project planning and risk management.

_ Financial Prudence: Disciplined bidding practices will ensure that new contracts meet predefined profitability thresholds. The Company will continue to strengthen its balance sheet by improving working capital cycles, negotiating favourable payment terms and diversifying funding sources.

Outlook: The infrastructure sectors strong policy support, coupled with the governments Viksit Bharat@2047 vision, offers a multi-year growth runway. The Companys robust execution track record, expanding capabilities and prudent financial management position it to capture a larger share of the infrastructure development market while delivering sustainable returns to shareholders.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an established internal control framework that is commensurate with its size and nature of operations. In FY 2024-25, controls were further strengthened through automation of key processes, periodic internal audits, and real-time monitoring of project progress and financial metrics.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During FY 2024-25, the Company recorded strong revenue growth, supported by improved execution rates across projects and timely completion of key milestones. Operating margins benefited from cost optimisation initiatives, while working capital management remained a focus area to support growth. The order book at year-end provides clear revenue visibility for the coming fiscal.

Key financial highlights for the year were:

_ The company reported Rs. 8,486 Lakhs in revenue from operations for FY 2024-25, a sharp 60% increase from Rs. 5,305 Lakhs in FY 2023-24 showing strong business momentum boosting top-line growth.

_ EBITDA jumped to Rs. 10,715 Lakhs in FY 2024-25 from Rs. (464) Lakhs in FY24, reflecting an exceptional item of Rs. 4,433 Lakhs and indicating improved operational efficiency.

Rs. in lakhs

10. HUMAN RESOURCES

The Companys human resource development practices are aligned with the highest industry standards. As an equal opportunity employer, it embraces diversity across race, religion, marital status, gender, age, ethnic origin and physical ability, fostering an environment that supports both personal and professional growth.

The Company respects and values every employee, motivates them to realise their potential and seeks to provide opportunities commensurate with their skills. In doing so, it builds mutually beneficial relationships between the Company and its people. Strengthening human capital remains integral to your Companys operational philosophy and long-term success.

11. CAUTION STATEMENT

The statements contained in this Management Discussion and Analysis Report are "forward-looking statements" based on certain assumptions and expectations of the Company. Actual results may differ materially from those expressed or implied, owing to changes in various factors. The Company undertakes no obligation to update such statements to reflect subsequent developments, information or events. Data and opinions presented herein are derived from publicly available reports and inputs from industry experts and associations.

Key developments that could materially impact operations include adverse trends in the domestic infrastructure sector, intensifying competition, increases in input costs, exchange rate volatility and significant changes in the political or economic environment, environmental regulations, tax laws, litigation and labour relations.