Vardhman Holdings Ltd Management Discussions

A. FINANCIAL ANALYSIS

i. STANDALONE

During the year under review, your Company has registered Revenue from Operations of D 5,611.33 lakhs as compared to D 4,398.19 lakhs in the previous year. The Company earned other income of D 185.66 lakhs during the year as against D 247.22 lakhs during last year.

PROFITABILITY:

The Company earned profit before depreciation, interest and tax of D 5,178.74 lakhs as against D 4,211.48 lakhs in the previous year. After providing for depreciation of D 0.72 lakhs (Previous Year D 0.72 lakhs), provision for current tax D 1,014.20 lakhs (Previous Year D 761.19 lakhs), deferred tax 482.82 lakhs (Previous Year D 174.77 lakhs), the net profit from operations worked out to D 3,680.99 lakhs as compared to D 3,274.80 lakhs in the previous year.

The balance available for appropriation after adding balance in surplus account is D 70,781.19 lakhs. Out of this, a sum of D159.58 lakhs has been appropriated towards proposed dividend, D 736.20 lakhs is proposed to be transferred to special reserve account and the balance of D 69,885.41 lakhs is proposed to be carried as surplus to the balance sheet.

Return on Net Worth for the financial year 2024-25 is increased from 3.56% to 3.91% on account of increase in net profits during the year.

ii. CONSOLIDATED

During the year under review, your Company has registered Revenue from Operations of D 2,277.62 lakhs as compared to D 1,490.13 lakhs in the previous year. The Company earned other income of D 185.66 lakhs during the year as against D 247.22 lakhs during last year.

PROFITABILITY:

The Company earned profit before depreciation, interest and tax of D 27,298.11 lakhs as against D 19,424.74 lakhs in the previous year. After providing for depreciation of 0.72 lakhs (previous year 0.72 lakhs), provision for current tax D 1,014.20 (previous year D 761.19 lakhs), deferred tax D 482.82 lakhs (previous year D 174.77 lakhs), the net profit from operations worked out to D 25,800.37 lakhs as compared to D 18,488.06 lakhs in the previous year.

The balance available for appropriation after adding balance in surplus account is D 3,30,540.31 lakhs. Out of this, a sum of D 159.58 lakhs has been appropriated towards proposed dividend, D 736.20 lakhs is proposed to be transferred to special reserve account and the balance of D 3,29,890.36 lakhs is proposed to be carried as surplus to the balance sheet.

B. RESOURCES UTILISATION:

a) Fixed Assets: The Net Block as at 31 st March, 2025 was D 318.74 lakhs as compared to D 319.46 lakhs in the previous year.

b) Current Assets: The current assets as on 31 st March, 2025 were D 93,178.36 lakhs as against D 90,211.60 lakhs in the previous year.

C. FINANCIAL CONDITIONS & LIQUIDITY:

(D in lakhs)

D. BUSINESS OUTLOOK:

Vardhman Holdings Limited primarily earns its income from investments. The Companys strategy is to adopt a systematic approach of investment into different asset classes namely debt, equity & real estate and to keep the portfolio dynamic as per the changing market conditions. Companys current portfolio consists of investments into debt, equity and real estate.

E. MANAGEMENT PERCEPTION OF RISK AND CONCERNS:

The Company recognizes that risk is an integral and unavoidable component of business and is committed to managing the risk in a proactive and effective manner. The Company is a NBFC registered with RBI and mainly engaged in investment activities. It follows a strategy of adopting a systematic approach to investment into different asset classes and keeping the portfolio dynamic as per the changing market conditions. The Company is prone to all the financial risks and capital market fluctuations.