Vishnusurya Projects and Infra Ltd Management Discussions

Global Economy:

The global economy posted a robust expansion of 3.3% in

CY 2024 , despite encountering challenges from geopolitical conflicts, trade frictions, and evolving monetary policies. This performance reflects the resilience of the world economy and its ability to adapt to fast-changing global dynamics.

Several positive developments supported and sustained global growth during the year:

Global inflation eased from 6.6% in PY 2023 to 5.7% in CY 2024, providing a more conducive environment for business activity, consumer spending, and investment flows.

?€? Improved energy supply and diversification of sources helped contain input costs, boosting industrial production and keeping growth momentum intact.

?€? Many economies witnessed low unemployment and steady job creation , providing stability in household consumption and domestic demand.

?€? Advancements in digital infrastructure, automation, and renewable energy technologies accelerated efficiency gains across industries, creating new avenues for growth.

?€? Despite frictions, global trade volumes expanded,

aided by reconfigured supply chains and growth in South-South trade, particularly among emerging markets.

?€? Cross-border capital flows revived, with multinational corporations increasing investments in fast-growing emerging economies and critical sectors such as clean energy, infrastructure, and technology.

?€? Developing economies, growing at 4.3%, played a central role in driving global demand through higher consumption, industrial expansion, and investments into large-scale infrastructure projects.

Source - Industry Reports

Indian Landscape:

"In a world of noise, Indias quiet resilience is starting to speak louder than ever"

Indias economic ascent has been both steady and structural. From ranking 11th in global GDP in 2009 to becoming the 4th largest economy by end-2025, Indias rise has been powered by robust domestic demand, a young and

technology-adaptive workforce, and prudent policymaking.

Despite facing global headwinds like elevated interest rates and geopolitical tensions during FY 2024-25, Indias macroeconomic fundamentals remained resilient. The economy expanded by 7.4% year-on-year in Q4 FY 2024-25, with overall GDP growth of 6.5% for the year, setting a strong foundation for FY 2025-26.

Economic stability was further demonstrated through key metrics:

?€? Current Account Deficit contained at 0.6% of GDP, aided by strong services exports and steady remittances from Indians abroad.

?€? Inflation under control, with the Reserve Bank cutting rates by 100 bps and infusing ?10 lakh crore liquidity into the financial system.

?€? Robust domestic demand offsetting external challenges, underscoring Indias self-reliant growth model.

Growth Drivers

1. Robust Consumption

?€? Urban spending is on the rise, supported by stable job creation, improving confidence, and credit expansion.

?€? Rural India is recovering with higher wages, a good monsoon (+8% above normal), and renewed job opportunities driving consumption.

2. Capital Expenditure & Investments

?€? Government capital expenditure grew 54% during Apr-May 2025 (YoY), with strong allocations to infrastructure projects such as roads, railways, renewable energy, and logistics.

?€? Private capital expenditure is reviving with capacity utilization improving and a broader investment cycle taking hold.

3. Housing & Real Estate

?€? The housing market is buoyant, with rising launches, reasonable inventory levels, and improved affordability.

?€? This is also boosting demand in allied industries such as cement, steel, and construction materials.

4. Digital & Workforce Strength

?€? Indias digitally skilled workforce continues to drive innovation and global competitiveness.

?€? Expanding digital infrastructure and widespread technology adoption are enhancing productivity and efficiency across industries.

Economic Outlook

Indias structural strengths and policy reforms position it for long-term expansion:

?€? By 2030, India is expected to add ~75 million middle-income households and 25 million affluent households, making it one of the fastest-growing consumer markets globally.

?€? Major Indian cities are expected to lead regional consumption growth in Asia-Pacific, even as urban demand moderates in advanced economies.

?€? Indias ongoing reform agenda and structural improvements in ease of doing business are drawing strong global investor interest.

Additional positive signals include:

?€? Per capita income has doubled since 2014, driven by investment, thriving manufacturing, and financial services.

?€? The UK?€” India Free Trade Agreement is expected to buoy bilateral trade through tariff reductions, streamlined customs, and deeper economic ties.

?€? Inflation is easing further, expected to strengthen consumer confidence, spending power, and purchasing capacity.

?€? Range-bound oil prices are expected to keep input inflation near control levels and improve the current account balance.

Looking ahead, FY2026 is projected to deliver even stronger growth momentum, with robust private consumption in the first half of the year, followed by a sharper pickup in private investments. India is on track not only to close the pandemic- induced output gap, but also to decisively surpass it.

In sum, India enters this phase of growth with a stable macroeconomic foundation, resilient demand base, rising investments, and sustained policy support ?€” firmly positioning the nation as one of the brightest growth engines of the global economy.

INDUSTRY STRUCTURE AND DEVELOPMENTS Infrastructure Sector:

Indias infrastructure development has been a cornerstone of the countrys economic progress, significantly enhancing

connectivity, trade, and overall quality of life. Over the past decade, both public and private sector investments have surged dramatically, with total infrastructure spending reaching a record ?10 lakh crore in the fiscal year 2023-24. Central to this transformative journey is the PM Gati Shakti National Master Plan, launched in 2021, which coordinates efforts across 44 Central Ministries and 36 States and Union Territories. This integrated approach has successfully aligned 208 major infrastructure projects worth T15.39 lakh crore, ensuring seamless connectivity across multiple transport modes while improving last-mile connectivity and reducing travel times. Indias infrastructure sector stands at the forefront of the countrys ambition to become a $5 trillion economy, playing a crucial role in driving economic growth, creating jobs and transforming urban landscapes. As the nation charts the course towards a Viksit Bharat by 2047, the government has strengthened its commitment through initiatives like the National Infrastructure Pipeline (NIP), which continues to guide investments across key sectors such as transport, logistics, energy and urban development.

Indias logistics ecosystem has also seen notable improvements. The countrys ranking in the World Bank Logistics Performance Index jumped from 44th to 38th between 2018 and 2023, reflecting stronger policy frameworks and operational efficiencies. The National Logistics Policy, launched in 2022, has inspired 26 states to adopt tailored logistics strategies, further strengthening the movement of goods and services across the nation. The governments aim to provide multi-modal transport solutions, has resulted in the development of ropeways under the Parvatmala Pariyojana and the rollout of Multi Modal Logistics Parks (MMLPs) in major cities. These initiatives are designed to improve last-mile connectivity, decongest urban areas and promote sustainable transport options. The expansion of wayside amenities and port connectivity projects further demonstrates a holistic approach to infrastructure, ensuring seamless movement for both goods and passengers while creating new opportunities for private sector participation and innovation.

Indias civil aviation sector has witnessed an astonishing rise, emerging as the third-largest domestic market globally. Operational airports have more than doubled to 157 since 2014, supported by increased aircraft numbers and a growing base of female pilots, who now account for over 15% of pilots, far exceeding the global average. The UDAN regional connectivity scheme has democratized air travel by revitalizing numerous airstrips and airports, connecting 88 airports and operating over 2.9 lakh flights by the end of 2024, thus boosting regional economic growth.

Source - Pib.gov. in

Urban development efforts are equally impressive. Under the Smart Cities Mission, more than 7,400 projects worth T1.54 lakh crore have been completed, transforming urban landscapes. Waste processing rates have surged from 18% to 78%, reflecting a strong commitment to environmental sustainability. Housing, too, has seen remarkable progress with approvals and completions under PMAY-U multiplying manifold, tackling urban and rural shelter needs.

Metro rail networks have expanded fourfold in length and ridership, signalling a shift towards efficient urban transportation, while public bus fleets have also grown to support increasing commuter demands. Complementing these initiatives, the Jal Jeevan Mission has brought piped water supply to nearly 80% of rural households, improving health and living standards for millions.

Together, these achievements narrate a compelling story of Indias rapid infrastructure advancement-laying a resilient foundation for sustainable, inclusive growth and positioning the country strongly for future challenges and opportunities.

Source: https://www.pib.gov.in/FactsheetDetails.aspx?Id=149113

Road and Highway Infrastructure of India:

India has one of the largest road networks in the world. The total length of Indias national highways is ~1,50,000km and state highways is ~1,80,000 km. In road infrastructure, India boasts the worlds second-largest road network, with National Highways expanding impressively from 65,569 km in 2004 to 1,46,145 km in 2024. The number of four- lane or wider highways has grown 2.6 times since 2014, supporting the growing demands of freight and passenger traffic. Complementing these efforts, more than 7.7 lakh kilometres of rural roads have been constructed under the

Pradhan Mantri Gram Sadak Yojana, significantly improving accessibility and livelihoods in remote areas.

Working relentlessly towards development of the National Highway infrastructure in the country, National Highway Authority of India (NHAI), during the Financial Year 202425, constructed 5,614 km of National Highways against the target of 5,150 km for the year.

In addition, the Capital Expenditure by NHAI in Financial Year 2024-25 for development of National Highway Infrastructure reached an all-time high of over Rs. 2,50,000 Crore (provisional) against a target expenditure of Rs. 2,40,000 Crore. This highest ever capital expenditure in a Financial Year by NHAI includes both Government budgetary support and NHAIs own resources. The overall capital expenditure increased by ~21% as compared to Rs. 2,07,000 Crore in previous FY 2023-24 and by ~45% as compared to Rs. 1,73,000 Crore in FY 2022-23. Roads provide one of the largest EPC opportunities in India with a total OI of ~INR 1.5trn-2trn p.a. EPC opportunities in road sector primarily emerges from opportunities on greenfield or existing national highways (under purview of central government) well supplemented by opportunity from state sector.

Govt initiatives for Roads:

The pending Bharatmala projects have been re-branded under Vision 2047 plan to promote faster travel time, fuel efficiency and lower logistics costs. MORTH aims to construct 50,000kms of access-controlled highways; thereby, adding more lanes to the road networks, as most of these would be four-to-eight lane networks. About 7,500kms of Bharatmalas Phase I shall also form a part of the broader Vision 2047 bucket due to huge time and cost overruns.

Railways and Metro Sector:

Indian Railways remains the backbone of transportation for millions across the country, consistently achieving significant milestones such as transporting over 30 million passengers in a single day. The network has seen considerable expansion in electrification, enhancing operational efficiency and sustainability. Passenger safety and comfort have been augmented through extensive CCTV installations at over 1,000 stations and the widespread adoption of modern Linke Hofmann Busch (LHB) coaches equipped with bio-toilets. Notably, connectivity has been extended to previously underserved northeastern states, fostering balanced regional development.

Looking ahead, Indian Railways plans substantial investments totalling approximately INR 16.7 trillion by FY2031. These investments will focus on track upgrades, further electrification, and increasing train speeds. The government is also advancing high-speed rail (HSR) corridors,

with the Mumbai-Ahmedabad HSR currently underway and seven additional corridors proposed. Simultaneously, freight corridor expansions and station redevelopment projects, involving strong private sector participation, are set to transform the railway landscape. As part of this effort, 1,324 railway stations are targeted for redevelopment primarily through the Engineering, Procurement, and Construction (EPC) route. As of February 2024, 508 stations are already under construction, with further projects recently initiated, representing an opportunity valued at INR 190 billion.

The National Railway Plan outlines a comprehensive blueprint for capacity enhancement and infrastructure investments over the decade, identifying a total capital expenditure requirement of INR 11.9 trillion for 2021-2031. Priority areas include new dedicated freight corridors (DFC), high-speed rail, rolling stock, and freight terminals. Reflecting these priorities, the budgetary allocation for Indian Railways has grown robustly, rising from INR 1.55 trillion in FY2021 to an estimated INR 2.65 trillion in FY2025, a compound annual growth rate (CAGR) of 14%.

Urban mobility is being revolutionized by Indias metro rail system, which is expanding aggressively to meet the demands of growing urban populations. Currently operational in 18 cities, Indias metro network covers 905 kilometers with another 959 kilometers under construction. With nearly half the total planned network still underway, metros are playing an increasingly critical role in inter-city and intra-city transportation. Metro projects are predominantly civil engineering undertakings, with civil works accounting for about 50-60% of total project costs.

Prior to 2014, metro systems operated in only five cities, but rapid urbanization has since driven their expansion across the country. Today, as traffic congestion and population density rise in urban centers, numerous cities are investing in metro rail systems as a reliable, efficient, and convenient mode of transport. The total market opportunity in Indias metro sector is currently estimated at INR 2.5 trillion, offering extensive avenues for future growth and development.

Mining Sector

Indias mining sector is a major contributor to the national economy. Its characterized by a mix of large and small, manual and mechanized, open-cast and underground mines. Manufactured Sand (M-Sand) in India is emerging as a sustainable and cost-effective alternative to natural river sand, which is increasingly scarce due to heightened demand and environmental concerns. M-Sand is produced by crushing hard rock into sand-sized particles, offering consistent grain size and quality that support construction standards.

The government and industry have recognized the benefits of M-Sand, including reduced environmental impact from natural sand mining, repurposing of mining waste (such as overburden from coal mines), cost efficiency, and improved construction quality?€”with better bonding characteristics and reduced water consumption.

Several states like Rajasthan, Maharashtra, Tamil Nadu, and others have introduced progressive policies to encourage M-Sand production and promote its mandatory use in government projects, typically requiring at least 25% M-Sand usage. Initiatives include setting up licensing frameworks, quality certifications (such as BIS standards), and incentivizing manufacturers, thus driving market adoption.

Indias M-Sand market is estimated at around 900 million tons annually, with a projected growth rate of 7-8% over the next five years. This growth supports Indias vast construction and infrastructure development demands while aiming to mitigate environmental degradation linked to unregulated sand mining.

Overall, M-Sand represents a vital step toward sustainable mining practices, environmental conservation, and strengthening local supply chains in Indias construction sector.

Company Overview

Vishnusurya Projects and Infra Limited (VPIL), incorporated in the year 1996 has a diverse set of businesses spread across Engineering Procurement and Construction (EPC), manufacturing of aggregates & manufactured sand, solid waste management, etc. The company is engaged in the mining of rough stones and manufacturing of aggregates & manufactures and by using Crushing Plants and Sand washing plants.

?€? I n the EPC projects division company has presence across all key sectors such as Water Distribution Projects, Marine Projects, Transportation, Rail Projects, and institutional development. The company holds a Class-I permit from Tamil Nadu Highways Department, Tamil Nadu Public Works Department, Tamil Nadu Water Supply and Drainage Board, and Greater Chennai Corporation through which the company is eligible to participate and undertake projects awarded by various other departments and agencies.

?€? The company is engaged in mining of rough stones and manufacturing of aggregates & Manufactured sand by using Crushing Plants and Sand washing plants.

?€? Starting this fiscal year, the company has entered the Municipal Solid Waste Management business, reinforcing our commitment to sustainable urban

development. We aim to deliver innovative waste solutions that promote recycling, energy recovery, and environmental stewardship.

EPC Projects Business Overview

VPIL is a top provider of Engineering, Procurement, and Construction (EPC) services with over 28 years of experience in executing large-scale infrastructure projects across various sectors. The company focuses on projects funded by the central government or institutions like NABARD, SIDBI, and the World Bank for secure, timely payments. The company has in-house engineering team and offers turnkey solutions including design, engineering, procurement, and construction.

1) Water Division:

Water Division -Established presence in water management projects with Tamilnadu Water Supply and Drainage Board (TWAD), Govt of Tamilnadu, currently pursuing four projects under Jal Jeevan Mission & AMRUT 2.0

2) Marine Division:

Handles handles construction of Auction Hall, Fish ponds, fish landing centre etc. with Fisheries Department. Besides this company is also executing lift irrigation projects in Jharkhand.

3) Roads and Bridges Division:

Engaged in construction and laying of bridges and highways. The extension of NH-48 (Chennai- Bangalore) Highway is Visnusuryas Marquee EPC Project.

4) Housing Division:

Has completed construction of more than 5 lakhs Sq.Ft in construction of residential and commercial buildings.

5) Rail Infra Division

The company is undertaking railways and metro projects.

Mining Business Overview

Vishnusurya entered into mining business by acquiring land with rich deposits of minerals and stones, convertible to Manufactured Sand (M-Sand) or saleable as Aggregates. Mining division extracts rough stones (Aggregates) - a globally essential material for construction and road building due to its uniform and predictable qualities. Following land acquisition and approvals, boulders are extracted, processed in crusher plants, and sold as either jelly (Aggregates) or M-Sand, a sustainable alternative to river sand.

Vishnusurya operates three state-of-the-art quarries (mines

and crusher plant) at strategic locations in Tamil Nadu with skilled teams:

1) Arupukottai: Serving Madurai, Thoothukudi, and nearby districts

- Spread 110 acres of land;

- Crusher Plant Capacity:9,80,000MT, M-Sand Plant Capacity: 2,60,000MT

2) Vandavasi: Serving Chennai and surrounding areas

- Spread across 60 Acres of land

- Crusher Plant Capacity:13,75,000MT, M-Sand Plant Capacity: 3,93,000MT

3) Hosur: Serving Hosur and surrounding areas; targeting Bangalore market

- Spread Across 79 Acres

- Crusher Plant Capacity: 15,00,000MT

Waste Management Business Overview:

VPIL specializes in sorting, processing and recycling. Company handles large volumes of legacy waste, which company sort and process for various municipal corporations. In the Waste Management Business, the company is into the business of Integrated Waste Processing and Bio Mining.

A) Integrated Waste Processing: This consists of Legacy waste and Wet waste processing.

B) Bio Mining: Treating the legacy waste by segregation and processing and then extracting metals.

Key Performance Highlights of VishnuSurya Projects

?€? Over 28 years of extensive experience in project execution

?€? Successfully executed more than 34 projects to date

?€? Ownership and operation of an equipment fleet exceeding 80 units

?€? Achieved revenue of ?184 crore from EPC projects in the fiscal year 2025

?€? Robust order book valued at ?330 crore as of March 2025

?€? Maintains a healthy net debt-to-equity ratio of 0.28x, reflecting strong financial discipline

?€? Operating a modern fleet comprising over 106+ pieces of advanced equipment

?€? Proudly served prestigious clients including NHAI, KNR Constructions, Larsen & Toubro, Government of Tamil Nadu, Fisheries Department, Indian Cements, Adani Cements, SPK Group, and leading concrete OEMs.

SWOT Analysis STRENGTHS:

Diverse Project Portfolio:

VishnuSurya Projects and Infra Ltd. boasts a wide-ranging portfolio spanning multiple sectors, including water segregation, roads and bridges, fisheries, commercial buildings, metro and rail projects, EPC, mining, and waste management. This strategic diversification minimizes reliance on any single sector, effectively mitigating risks linked to market volatility.

Strong Financial Health:

With a robust order book valued at ?330 crore in FY25, the Company stands as a compelling choice for investors seeking stable growth opportunities. The anticipated surge in public infrastructure spending in India, fueled by upcoming government policies, positions Vishnusurya to capture new contracts, thereby propelling growth and potentially enhancing shareholder value.

Strategic Joint Ventures:

Vishnusurya has formed several strategic joint ventures that significantly bolster its capabilities and market presence. These collaborations enable the Company to leverage the expertise, resources, and networks of its partners, facilitating access to new markets and cutting-edge technologies. Moreover, these partnerships allow participation in larger, more complex projects, fostering growth and reinforcing competitive advantage.

Focus on High-Margin Projects:

The Companys focus on projects with EBITDA margins exceeding 16% underscores its commitment to sustainable profitability, even within highly competitive environments.

Experienced Management Team:

Guided by seasoned industry professionals, Vishnusuryas management team brings strategic vision and operational excellence, serving as a pivotal driver of the Companys continued growth and success.

WEAKNESS:

Dependence on Government Projects:

A substantial portion of the Companys revenue is sourced from government contracts, which exposes Vishnusurya to risks related to policy changes, delays in project approvals, and potential funding constraints. Such dependencies may impact project timelines and cash flows.

Working Capital Management:

The capital-intensive nature of the infrastructure sector necessitates careful management of working capital. The Company faces challenges in efficiently managing cash

flows, particularly due to delayed payments from government entities, which can strain liquidity and operational flexibility.

OPPORTUNITIES:

Strong Order Book and Diversification

The Company boasts a strong order book valued at ?330 crore as of March 2025, providing clear revenue visibility and sustaining robust growth momentum. Vishnusurya actively operates across diverse sectors including Roads and Highways, Railways & Metro, Water, Housing, Fisheries, Mining, and Waste Management. This broad engagement helps minimize sector-specific risks while enabling the Company to capitalize on emerging growth opportunities.

Drivers of Industry Growth

Ongoing government initiatives such as Bharatmala, Gati Shakti, and the National Infrastructure Pipeline serve as critical catalysts driving growth in the infrastructure sector. Additionally, expanding opportunities in the waste management segment align closely with Indias clean energy objectives, presenting promising avenues for future expansion.

Increasing focus on sustainable and green infrastructure projects offers opportunities for Vishnusurya to differentiate itself by integrating environmentally friendly practices into its operations.

Technologically Driven

Adopting advanced technologies in construction and project management can improve operational efficiencies, reduce costs, and lead to higher project margins.

Threats:

Intense Competition:

The infrastructure sector is characterized by intense competition, with numerous players competing for government contracts. This competitive landscape may exert pressure on profit margins and present challenges in securing new projects.

The EPC and infrastructure sector is highly competitive, with pressure on margins due to aggressive bidding and new entrants.

Regulatory and Environmental Compliance:

Strict regulatory frameworks and environmental norms can result in project delays, increased costs, and potential legal hurdles, thereby affecting the Companys operational efficiency and timelines. The Changes in government policies, funding delays, or regulatory hurdles can affect project awards and execution.

Due to high exposure to government projects may lead to payment delays or changes in project scope.

Economic Uncertainty:

Volatility in domestic and global economic conditions may influence the availability of funding for infrastructure initiatives, potentially impacting the Companys growth trajectory.

Outlook:

The Company is experiencing robust growth momentum, driven by its strategic focus on diversification and strong execution across its infrastructure asset portfolio. Vishnusurya continues to consolidate its position across all business segments while progressively expanding into complementary sectors.

Looking ahead to FY26, the Company targets a revenue of ?375 crore and anticipates an order inflow of ?350 crore.

Risk Management

Effective risk management is vital for safeguarding the stability and sustained growth of Vishnusurya Projects and Infra Ltd. Our comprehensive approach incorporates proactive measures and strategic planning to mitigate potential risks impacting our operations.

1. Labour Shortage

The infrastructure sector frequently encounters challenges in sourcing skilled labor. To address this, Vishnusurya invests significantly in training and development programs designed to upskill our workforce. We also form partnerships with local training institutions and offer competitive compensation packages to attract and retain talent.

2. Environmental Risk

Environmental sustainability remains a core priority. We comply rigorously with environmental regulations and embed eco-friendly practices within all projects. Regular environmental impact assessments and compliance audits enable us to minimize our ecological footprint and proactively manage any potential concerns.

3. Surge in Material Costs

Volatility in construction material prices can affect project budgets. To mitigate this, we engage in long-term procurement agreements and cultivate relationships with multiple suppliers to negotiate favorable terms. Additionally, project budgets include cost contingencies to absorb price fluctuations.

4. Need for Multiple Clearances

The requirement to obtain various regulatory clearances can delay project execution. VishnuSurya

addresses this by streamlining the clearance process through meticulous planning and fostering strong relations with regulatory authorities. A dedicated team ensures timely submission of all documentation and strict adherence to compliance requirements.

5. Competition Risk

Intense competition in the infrastructure sector presents challenges in securing contracts. Vishnusurya mitigates this risk by differentiating through superior quality, innovation, and a customer-centric approach. We continuously monitor market dynamics and tailor our strategies to sustain a competitive advantage.

6. Financial Resources

Access to adequate financial resources is critical for seamless project execution and growth. Our risk management strategy entails a diversified financing approach, leveraging both equity and debt instruments. Regular financial reviews and forecasts are conducted to ensure liquidity and maintain financial robustness.

Financial Overview:

Revenues

The total income from operations posted by Vishnusurya in FY25 stood at ? 271 Cr as against ? 232 Cr during FY24, registering an increase of approximately 17%.

Profits

EBITDA for FY25 stood at ? 49 Cr, compared to ? 48 Cr in FY24. The net profit after tax (PAT attributable to owner) for FY25 was ? 29 Cr, as against ? 28 Cr in the previous year.

Margins

EBITDA margin stood at 18% for FY25 compared to 21% for FY24. PAT margin stood at 11% for FY25 as against 12% for FY24.

For detailed financial ratios refer to notes to accounts. Cautionary statement

Certain statements made in this report relating to the Companys objectives, projections, outlook, expectations, estimates, among others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. Several factors could make a significant difference to the Companys operations. These include climatic conditions, economic conditions affecting demand and supply, government regulations and taxation, natural calamity, currency rate changes, among others over which the Company does not have any direct control.