Urban Enviro Waste Management Ltd Management Discussions

Preface

The Management Discussion and Analysis Report (MDAR) aims to elucidate the developments in the business environment, performance of the company in comparison to last report and the future outlook. MDAR is a part of the Boards Report. The performance of a company is linked with various factors including demand, supply, climatic conditions, economic conditions, political conditions, Government regulations and policies, taxation, pandemic and natural calamities, which are beyond the control of the company and could make a significant difference to the Companys operations. Owing to this, certain statements made in this report pertaining to projections, outlook, expectations, estimates, etc., may eventually differ from actuals.

Industry Structure and Development

The solid waste management industry in India continues to witness significant transformation, driven by increased urbanization, growing environmental awareness, and proactive policy measures from the government. With the implementation of Swachh Bharat Mission and other sustainability-focused initiatives, there is an increased emphasis on scientific waste collection, segregation, processing, and disposal.

Amid this evolving landscape, URBAN has demonstrated consistent growth and operational excellence. The Companys performance has improved steadily over the past few years, reflecting its strategic focus on expanding services, improving efficiencies, and enhancing customer satisfaction.

For the financial year ended March 31, 2025, the Company recorded total revenue from operations of Rs14,105.27 Lakhs compared to Rs10,247.24 Lakhs in the previous financial year 2023-24. This growth is attributed to expansion into new territories, efficient execution of existing projects, integration of technology in operations (such as GPS-enabled vehicle tracking), and continuous service quality improvement.

The Company is committed to maintaining this growth trajectory and is taking all necessary steps to further increase profitability in the coming years by optimizing resources, investing in sustainable practices, and exploring new business opportunities within the waste management and allied services sector.

SWOT Analysis

URBANs competitive strengths

> Expertise in solid waste management: URBAN has a strong understanding of the complexities of solid waste management, including collection, transportation, Segregation and disposal.

> Diverse service portfolio: URBAN offers a range of waste management solutions tailored to the specific needs of different clients, including residential, commercial, and industrial sectors etc.

> Strategic partnerships: Collaborations with local municipalities, waste generators, and recycling facilities strengthen the companys market presence and broaden its service offerings.

> Technological advancements: The company utilizes modern technologies and equipment for efficient waste management processes, enhancing its operational effectiveness and minimizing environmental impact.

Weaknesses

> Dependence on government contracts: The companys revenue stream heavily relies on contracts awarded by municipal authorities, making it vulnerable to changes in government policies and budget allocations.

> Limited geographical reach: URBAN may face challenges in expanding its operations beyond its current geographical footprint, limiting its growth potential and market penetration.

> High capital requirements: Investment in waste management infrastructure and technology requires significant capital expenditure, potentially straining the companys financial resources and liquidity.

Opportunities

> Growing demand for waste management services: Increasing urbanization and industrialization lead to higher volumes of solid waste generation, presenting opportunities for URBAN to expand its customer base and revenue streams.

> Sustainable waste management solutions: With rising environmental concerns and regulatory pressures, there is a growing demand for eco-friendly waste management practices, allowing the company to capitalize on sustainable initiatives and innovations.

> Diversification into related sectors: URBAN can explore diversification opportunities into related sectors such as recycling, renewable energy production from waste, and resource recovery, enhancing its business resilience and competitiveness.

Threats

> Regulatory compliance challenges: Changes in waste management regulations and environmental policies may impose compliance burdens and operational constraints on the company, increasing its regulatory risks and costs.

> Competitive landscape: The solid waste management industry is characterized by intense competition from both established players and new entrants, posing a threat to URBAN s market share and profitability.

> Technological disruptions: Rapid advancements in waste management technologies and innovations could render existing infrastructure and practices obsolete, requiring continuous investment in research and development to stay competitive.

Outlook

The solid waste management sector remains promising, supported by increased government spending on sanitation, rising environmental consciousness, and stricter regulatory compliance for urban local bodies. With growing urban populations and an urgent need for scientific waste disposal solutions, the demand for organized waste management services is expected to accelerate in the coming years.

URBAN is well-positioned to capitalize on these emerging opportunities. The Company continues to strengthen its presence across existing operational areas while actively pursuing new projects across municipalities and urban zones.

With a clear focus on sustainability, the Company is also exploring circular economy models. The integration of advanced technologies such as GPS-based vehicle tracking systems, real-time monitoring, and data analytics will further enhance operational efficiency and transparency.

Looking ahead, the Company remains committed to driving innovation, achieving zero landfill targets, improving profitability, and creating long-term value for all stakeholders. The management is confident that, with continued policy support and operational discipline, Urban Enviro Waste Management Limited will continue to grow and contribute meaningfully to a cleaner and greener India.

Internal control systems and their adequacy

Your Company has implemented robust internal control systems that are commensurate with the size, scale, and nature of its operations. These systems are designed to ensure the orderly and efficient conduct of business, safeguard assets, prevent and detect frauds and errors, ensure accuracy and completeness of accounting records, and facilitate the timely preparation of reliable financial information.

The Company has deployed relevant technology-driven solutions to manage, monitor, and streamline key internal processes across various departments. Automation and digitization have played a crucial role in enhancing transparency, traceability, and real-time oversight.

Overall, the Companys internal control system is considered adequate and effective in ensuring operational efficiency, financial discipline, and risk mitigation.

Risks and Concerns

URBAN operates in a dynamic environment that presents both opportunities and risks. The Company has a well-defined risk management framework in place to identify, assess, monitor, and mitigate various categories of potential risks that may impact its performance. The key areas where potential risks have been identified include Business Dynamics, Operations, Liquidity, Market/ Industry, Human Resources, Systems and Disaster Management etc.

The Company regularly reviews these risk categories and ensures appropriate mitigation measures are in place through preventive controls, contingency planning, insurance coverage, and continual workforce engagement.

At present, the management does not perceive any significant technological, operational, financial, or environmental threats that may adversely affect the business in the near future. However, proactive risk monitoring and responsive strategies remain an integral part of the Companys governance and sustainability framework.

Human Resources

URBAN recognizes that its people are the foundation of its success. The Company has built a strong and competent talent pool across top and middle management levels, which plays a pivotal role in driving operational efficiency, innovation, and sustainable growth.

A performance-driven work culture has been nurtured with an emphasis on accountability, integrity and continuous learning. The Company is focused on developing a long-term talent pipeline through structured training programs, mentorship, and opportunities for professional development.

Efforts are consistently made to enhance the overall work environment, ensuring employee well-being, engagement, and motivation. Regular interactions, open communication channels, and employee feedback mechanisms have helped foster a positive and inclusive workplace culture.

To attract and retain talent, the Company offers a competitive compensation package, performance-based incentives, and growth- oriented career paths. Additionally, the Company provides an innovative and challenging work environment that encourages employees to take ownership and contribute meaningfully to organizational goals.

Going forward, the Company remains committed to strengthening its human resource capabilities by promoting employee welfare, nurturing leadership at every level, and aligning individual aspirations with corporate objectives.

Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

Financial performance

Rs. in Lakhs

Particulars	2024-25	2023-24
Revenue from operations	14105.27	10,247.24
Other income	47.01	15.89
Total income	14152.27	10,263.13
Total expenditure	12742.10	9,256.29
Profit before tax (before exceptional item)	1410.17	1,006.84
Exceptional item	0.00	0.00
Profit After tax for the year (PAT)	1025.85	705.49
Dividend (including proposed dividend)	0.00	21.65
Transfer to general reserve	0.00	0.00
Balance of profit carried over	1925.40	899.55
Key Financial Ratios
Ratios	2024-25	2023-24
Debtors turnover (Days)	81.82	54.93
Inventory turnover (Days)	N.A.	N.A.
Interest Coverage Ratio	5.11	5.07
Current ratio (Times)	2.93	3.64
Debt Equity Ratio	1.29	1.39
Operating profit margin (%)	12.09 %	12.12%
Net profit margin (%)	7.27%	6.88%
EBITDA to sales turnover (%)	18.09 %	18.11%
Return on net worth (%)	32.18%	32.62%

Details pertaining to Net-worth of the Company

Rs.in Lakhs

Particulars	31.03.2025	31.03.2024
Net-worth	3188.35	2,162.50

 

	For URBAN ENVIRO WASTE MANAGEMENT LIMITED
	Sd/-
	KAMLESH SHARMA
	DIN: (01845899)
	(Managing Director)
Place: Nagpur
Date: 02.09.2025