tci developers ltd share price Management discussions

INDUSTRY OVERVIEW & FUTURE OUTLOOK

Due to improved post covid-19 pandemic conditions, the outlook towards warehousing sector has been improving. Manufacturing, e-commerce and organized retail are likely to drive warehousing demand in 2022. These sectors along with others are expected to absorb over 40 million sq ft of warehousing space against supply of over 45 million sq ft during the year.

However, to attract the end users, implementing technology into warehouse management for cost-effective and efficient warehouse operations, shall be the major element. And hence, warehouse management technologies are likely to grow by leaps and bounds in near future.

A number of stakeholders are involved in an efficient warehouse management. Manufacturers, suppliers, customers, and warehouse managers are keys to a successful warehouse. With increased people focus on reducing carbon footprints and eco-friendly business operations, there shall be sea change in warehousing management techniques. Sustainable warehousing shall be in demand by all the stakeholders.

In such a scenario, 2022 will witness the rise in adopting of cutting edge technologies particularly Blockchain Technology in warehousing which will help in creating an efficient system for recording multiple transactions, tracking assets, and easy accessibility of document management.

BUSINESS OVERVIEW

During FY 2021-22, the Company has started developing a residential building unit at Gurugram for leasing purpose, which is likely to complete before end of calender year 2022. A part of the commercial building at Chennai has been leased and the same is being finished to meet the requirements of the lessee. Consequent upon improved post covid-19 pandemic conditions, other projects are being reviewed afresh for development.

THREATS, RISKS & CONCERNS

The Company has been regularly assessing the threats, risks and concerns it is exposed to as well as keeping adequate strategy in place to mitigate the same. Abnormal hike in the prices of construction materials, particularly in steel and cement, has become key deterrent in short term for pursuing development activities.

FINANCIAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and the Regulations issued by the Securities and Exchange Board of India (SEBI). The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect, in a true and fair manner, the form and substance of transactions and reasonably present the companys state of affairs for the year.

The highlights on Companys financial performance for the FY 2021-22 are as follows:

(Amount in Lakhs)

Particulars	Consolidated		Standalone
	FY 2021-22	FY 2020-21	FY 2021-22	FY 2020-21
Total Revenues	1112.14	1062.93	434.27	462.86
Profit before Tax	198.39	302.37	(112.43)	(29.26)
Tax	74.86	102.99	(53.53)	(32.50)
Profit After Tax	123.52	199.37	(58.90)	3.24
Earning per share (in Rs.)	3.31	5.35	(1.58)	0.09

CHANGES IN KEY FINANCIAL RATIOS

The details of changes (change of 25% or more) in key financial ratios as compared to previous Financial Year are stated below:

Standalone
S. No. Particulars	FY 2021-22	FY 2020-21	%change	Explanation
1 Debtors turnover ratio	14.70	8.97	63.98%	The debtors turnover ratio has improved during FY 2021-22 due to increased realization of debtors at the year end.
2 Inventory Turnover Ratio	1.15	0.99	16.15%	The debtors turnover ratio has improved during FY 2021-22 due to increased realization of debtors at the year end.
3 Interest coverage ratio	(64.88)	(21.49)	201.87%	The Interest Coverage ratio has decreased due to increased loss on standalone basis.
4 Current Ratio	1.45	1.78	-18.47%	The Current ratio decreased, due to increase in certain financials liabilities and decrease in financial assets.
5 Debt Equity Ratio	1.11	1.10	0.36%	There has not been any significant change in FY 2021-22 over FY 2020-21
Consolidated
S. No. Particulars	FY 2021-22	FY 2020-21	%change	Explanation
1 Debtors turnover ratio	50.56	14.77	242.35%	The debtors turnover ratio has improved during FY 2021-22 due to increased realization of debtors at the year end.
2 Inventory Turnover Ratio	3.94	3.78	4.42%	The inventory remained the same, while there has been increased turnover during FY 2021-22.
3 Interest coverage ratio	12.32	15.04	-18.08%	The Interest Coverage ratio has decreased due to decreased profit on consolidated basis
4 Current Ratio	0.82	0.72	14.29%	The Current ratio increased due to increased in certain financial assets.
5 Debt Equity Ratio	1.28	1.28	-0.23%	There has not been any significant change in FY 2021-22 over FY 2020-21

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

The timely availability of skilled and technical personnel is one of the key challenges. The Company maintains healthy and motivating work environment through various measures. This has helped the Company to recruit and retain skilled work force which would result in timely completion of the projects.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has adequate internal controls systems and the same are reviewed regularly and modified/ improved. Beside there are documented policies and procedures to support the system, so that all the applicable rules and regulations are complied with; that all transactions are authorized, recorded and reported correctly and adequately and that all the assets of the company are safeguarded and there is no unauthorized use thereof.

CAUTIONARY STATEMENT:

Certain Statements found in the Management Discussion and Analysis Report may constitute Forward looking statements, which may include statements relating to future results of operations, financial conditions, business prospects and projects etc., are based on the current assumptions, estimates, expectations about the business, industry and markets in which your Company operates. Actual results might differ substantially or materially from those expressed and implied due to several factors which are beyond the control of the management. This report should be read in conjunction with the financial statements included herein and the notes thereto]