Vision Infra Equipment Solutions Ltd Management Discussions

For the Financial Year Ended March 31, 2025

Global Economic Outlook

The global economy in FY 2024–25 grew at a modest pace amidst persistent geopolitical uncertainties, tight financial conditions, and fragmented supply chains. According to the International Monetary Fund (IMF), global GDP growth was estimated at 2.7% in calendar year 2024, reflecting divergent trends across regions. The United States recorded strong growth at 2.8%, supported by resilient consumer demand, while the Eurozone experienced subdued expansion at 0.8% owing to energy price shocks and fiscal consolidation. Emerging markets were led by India and China, growing at 6.5% and 5% respectively, underpinned by public investment and consumption recovery. The year also witnessed a softening of inflationary pressures across advanced economies, aided by easing commodity prices and improved supply chain efficiency. Central banks in major economies maintained cautious monetary stances, with gradual policy normalization replacing the aggressive tightening witnessed in the previous cycle. Trade in goods remained under pressure from tariff escalations and shifting manufacturing bases, while services trade—especially in IT, financial services, and digital platforms—continued to gain ground.

In the Middle East, strong infrastructure and industrial investments, particularly in Saudi Arabia and the UAE, provided opportunities for EPC and equipment providers, including Indian exporters. Global capex cycles, especially those linked to energy transition, digital infrastructure, and transportation, remained resilient drivers of demand.

Indian Economic Overview

India?s macroeconomic performance remained strong through FY 2024–25, with real GDP growth for the year reaching 6.8%. The growth was led by robust domestic consumption, continued traction in public capital expenditure, and a healthy performance in both manufacturing and services. The Reserve Bank of India (RBI) has projected real GDP to grow at 6.5% in FY 2025–26, with quarterly growth ranging between 6.3% and 6.7%, indicating sustained momentum across sectors.

Inflation remained well-anchored during the year, with the Consumer Price Index (CPI) averaging 4.2%. By Q4 FY25, CPI inflation had eased to 3.2%, its lowest since 2019, largely due to disinflation in food items and base effects. The RBI forecasts inflation to average 3.7% in FY 2025–26, allowing the central bank room to continue its calibrated monetary easing. During the year, the RBI reduced the policy repo rate by a cumulative 100 basis points, bringing it down to 5.50% as of June 2025. The Cash Reserve Ratio (CRR) was also cut by 100 basis points in phased tranches, injecting over 2.5 lakh crore into the banking system.

India?s external sector showed marked improvement. In Q4 FY25, the country posted a current account surplus of USD 13.5 billion (1.3% of GDP), the first such surplus in four quarters. For the full year, the current account deficit narrowed to 0.6% of GDP, significantly better than the previous year. Concurrently, India?s foreign exchange reserves rose sharply, nearing USD 700 billion by March 2025, as the RBI reduced its forward book and absorbed strong portfolio and FDI inflows.

The Indian banking system continued to strengthen its balance sheet. The gross non-performing assets (GNPA) ratio declined to 2.3% by March 2025—the lowest in over a decade—while capital adequacy remained robust at 17.2%. Liquidity conditions remained ample, with an average daily liquidity absorption of

3.75 lakh crore during the first quarter of FY 2025 26.

These trends underline India?s macroeconomic resilience, with robust consumption, low inflation, improving external balances, and a healthy banking sector laying the groundwork for continued growth in infrastructure and allied sectors.

Indian Infrastructure and Roads Sector

India?s infrastructure sector is undergoing rapid transformation, with sustained investment and policy push.

The equipment rental and refurbishment industry has grown in tandem, as contractors increasingly prefer asset-light models to manage cash flows and project risks.

Company Overview

Vision Infra Equipment Solutions Limited (VIESL), originally founded as "M/s Vision Infra" in 2014–15, was incorporated as a public limited company in January 2024. Headquartered in Pune, Maharashtra, the Company is a comprehensive provider of construction and infrastructure equipment solutions through two integrated business lines:

1.Rental of Infrastructure Equipment –

Equipment is leased under both time-based and output-linked models. Clients include large EPC players executing road and infrastructure projects across India.

2. Refurbishment and Trading of Used Equipment –

The Company sources used equipment from NBFCs, contractors, equipment dealers and OEM, restores them to working condition, and sells them domestically and internationally.

A. Equipment Rental Services

Revenue (FY25):

205.2 crore

This segment includes leasing of construction equipment such as:

• Pavers, slipform machines

• Milling machines

• Crushing and screening plants

• Soil compactors, vibratory rollers

Pricing Models:

• Time-Based Rentals: Fixed revenue model based on usage hours/days

• Output-Based Rentals: Charges linked to measurable deliverables like tons crushed or kilometers paved

Value-added services:

• Deployment of skilled operators

• Predictive maintenance during projects

• On-site logistics, installation, and servicing

B. Refurbishment and Trading of Equipment

Revenue (FY25):

238.0 crore

This segment includes:

• Acquisition of pre-owned or OEM, Contract dealer equipment

• Overhaul and refurbishment in company-run workshops

• Resale to small/mid-sized contractors or export markets Export Revenue: 80% of this segment?s sales in FY25 came from overseas clients

Synergies Between Segments: • Lifecycle Integration:

Rental equipment is transitioned to refurbishment and resale as per business opportunity

• Fleet Optimization:

Shared servicing and inventory boosts uptime for both segments

• Customer Cross-sell:

Contractors using rental services often purchase refurbished equipment for long-term deployment

Business Strategy

VIESL?s business strategy is centered on strengthening its position as a dependable and integrated equipment solutions provider for infrastructure development, with an emphasis on sustainable value creation, asset efficiency, and geographic scale.

Expand Equipment Portfolio

The Company aims to expand its equipment fleet by acquiring high-demand and specialized machinery across road and infrastructure segments. The focus is on pavers, milling machines, soil stabilizers, slipform pavers, and crushers—aligned with client needs and project mix. Notably, VIESL operates one of the largest fleets of asphalt and concrete pavers in the country, enabling it to serve multiple high-volume road projects simultaneously. Telematics and predictive diagnostics are being adopted to enhance utilization and ensure proactive servicing.

Scale Value-Added Services

VIESL continues to broaden its scope of value-added offerings such as asphalt paving, concrete slipform paving, milling, soil stabilization, and crushing services. These services are provided through both time- and output-based models and offer clients end-to-end job execution support, backed by skilled operators and on-site servicing teams. Refurbishment practices are being upgraded to include OEM-level quality benchmarks and compliance for international exports. to include OEM-level quality benchmarks and compliance for international exports.

Expand Domestic and Global Footprint

VIESL continues to enhance its presence across the markets, particularly in high-growth infrastructure corridors. Internationally, it seeks to deepen exports to emerging markets in Africa, Latin America, and Southeast Asia through distribution partnerships and performance warranties.

Drive Technology-Led Efficiency

Digitization is at the heart of Vision Infra Equipment Solutions Limited?s operating model. The Company is investing in ERP integration, real-time GPS fleet monitoring, and centralized customer relationship management to improve deployment cycles, asset visibility, and client service outcomes.

Build Organizational Capability

The Company prioritizes skilling and retention, supported by in-house training, OEM collaboration for operator certification, and incentive-linked retention plans. It is also investing in next-generation leadership development to build a scalable, professionalized organization.

Strategic Priorities

Geographic Expansion:

Strengthen presence in domestic and global export markets

Fleet Modernization:

Invest in high-performance, telematics-enabled machinery

Operational Automation:

Leverage ERP, digital monitoring for efficiency

Green Initiatives:

Promote refurbished equipment as a sustainable alternative

Customer Retention:

Enhance SLAs, expand service contracts, and increase technician base

Key Financial Ratios (FY25)

Ratio	FY25	FY24
EBITDA Margin	28.7%	28.4%
PAT Margin	7.7%	7.6%
Debt-Equity	1.6x	11.3x
Interest Coverage Ratio	2.8x	3.4x

Risk Management

Equipment Downtime and Availability:

Downtime may disrupt client schedules and impact revenue. Mitigated through real-time fleet tracking, preventive maintenance schedules, spare parts stockpiling, and use of telemetry for predictive diagnostics.

On-site Execution Delays:

Can affect project-linked revenues and client satisfaction. Managed by maintaining a skilled, in-house deployment team, logistics partnerships, and provision of in critical equipment.

Safety Hazards and Compliance:

Includes risk of injuries, damage, or legal non-compliance. Addressed through certified operator training, safety drills, periodic audits, and third-party HSE (Health, Safety, Environment) reviews.

Client and Sector Concentration:

Higher dependency on road EPCs could expose the Company to sector cyclicality. VIESL mitigates this through active client diversification across industrial infrastructure, irrigation, and exports.

Raw Material and Spare Part Sourcing:

Price and supply fluctuations may delay refurbishment timelines. Mitigation includes multi-vendor sourcing, long-term supply contracts, and forward inventory planning.

Technology Obsolescence:

Outdated equipment may reduce utilization and resale value. Addressed through fleet upgrades, our refurbished verticals synergize to exit the used fleet.

Policy and Regulatory Shifts:

Sudden changes in taxation, labor codes, or import/ export duties. Proactive tracking of government advisories, participation in industry bodies (ICEMA, CII), and scenario planning support resilience.

Talent Retention and Capability Gaps:

A scaling business needs experienced technicians and operators. Addressed through retention-linked incentives, continuous training programs.

Competitive Edge and Key Differentiators

Dual-Segment Synergy:

Unique lifecycle integration between rental and refurbishment businesses improves asset ROI, operational leverage, and capital efficiency.

Pan-India Presence and Execution Speed:

With clients in 26+ states and rapid mobilization capability, VIESL ensures timely project start-ups and delivery support.

Export-Ready Refurbishment Operations: A large proportion of refurbished assets are accepted in overseas markets, underscoring quality benchmarks and compliance.

Digital and Process Discipline:

Telematics-enabled fleet, preventive maintenance protocols, and ERP-based control frameworks improve service delivery and asset uptime.

Strong Client Relationships:

Long-standing partnerships with L&T, IRB, Tata Projects, ITD CEMENTATION, and others ensure recurring business and credibility with new clients.

Sustainability Alignment:

By refurbishing used machinery and extending equipment lifecycles, VIESL supports circular economy goals and lowers industry carbon footprint.