You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 172. You should also read the section titled "Risk Factors" on page 29 and the section titled "Forward Looking Statements" on page 18 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated financial Statements.
Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor January 15, 2024 which is included in this Red Herring Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.
BUSINESS OVERVIEW
Our Company was incorporated in year 2001. It was originally incorporated as Vibhor Builders Private Limited vide certificate dated August 10, 2001 having CIN as U45201DL2001PTC111999 and registered office at S-551 School Block Shakarpur, New Delhi - 110092, India. Consequent upon special resolution passed by members in Extra-Ordinary General Meeting held on October 12, 2007, the name of our company was changed to Vibhor Vaibhav Infra Private Limited vide certificate dated December 17, 2007.
Further, the members in Extra-Ordinary General Meeting held on December 21, 2015 decided to alter the object clause of the Company. Thereafter, on January 02, 2016 object clause of our company was changed vide certificate issued by Registrar of Companies, Delhi.
Furthermore, our company has shifted its registered office from State of Delhi to State of Uttar Pradesh vide certificate issued by Registrar of Companies, Kanpur dated October 26, 2020 pursuant to order of Regional Director dated July 13, 2020.
Thereafter, our Company was converted from private limited to public limited, pursuant to special resolution passed by the shareholders of the Company at the Extraordinary general meeting held on November 28, 2023 and the name of our Company was changed from Vibhor Vaibhav Infra Private Limited to Vibhor Vaibhav Infra Limited vide fresh certificate of incorporation dated January 04, 2024 issued by the Registrar of Companies, Kanpur. The Corporate identification number of our Company is U45201UP2001PLC136919.
Our Company is a infrastructure company in India. We are Class "A" Civil and Electrical contractor having over two decades of experience in the field of execution and construction of infrastructure projects such as Sewer, Sewer Treatment Plants, Water Tanks, Water Treatment Plants, Sector Development work, Electrical Distribution and Sub Stations upto 33 kVA, Jal Jeewan Mission work etc. Our Company emphasis on quality work, on-time delivery, and competitive pricing. It has a team of experienced and qualified engineers and technicians who are committed to provide best possible services to its clients. With our experienced team we have constructed two 56 MLD STPs using Sequential Batch Reactor (SBR) technology in the year 2013. We are primarily working on projects in the state of Uttar Pradesh, Uttarakhand, NCR Delhi and other northern Part of India. Our Company is a rapidly growing company with a strong focus on innovation and quality. It is well-positioned to play key role in the development of Indias infrastructure sector, particularly in the area of STPs. Currently, the Company has an order book of Rs. 477.62 Crores, including an Operation and Maintenance (O&M) order book of 126.19 Crores as on January 31, 2024. The company has submitted bids for Rs. 182.00 Crores against tenders in Roorkee, Uttarakhand which is under process to be opened. This is a significant increase in the companys order book value, which is a positive sign for the companys growth prospects. It is also a testament to the companys strong execution capabilities and its ability to win new projects.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of Statement of Significant Accounting Policies, please refer to "Annexure [?] of Restated Financial Statements" beginning on page [?] of this Red Herring Prospectus.
Factors Affecting our Results of Operations
Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 29 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:
1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;
2. Any change in government policies resulting in increases in taxes payable by us;
3. Our ability to retain our key managements persons and other employees;
4. Changes in laws and regulations that apply to the industries in which we operate.
5. Our failure to keep pace with rapid changes in technology;
6. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants containedin our existing debt agreements;
7. General economic, political and other risks that are out of our control;
8. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;
9. Companys ability to successfully implement its growth strategy and expansion plans;
10. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate; 11. Inability to successfully obtain registrations in a timely manner or at all;
12. Occurrence of Environmental Problems & Uninsured Losses;
13. Conflicts of interest with affiliated companies, the promoter group and other related parties; 14. Any adverse outcome in the legal proceedings in which we are involved;
15. Concentration of ownership among our Promoter;
16. The performance of the financial markets in India and globally; 17. Global distress due to pandemic, war or by any other reason.
1. Other factors beyond our control.
Key Performance Indicators of our Company (Standalone Basis)
( In Lakhs except percentages and ratios)
Key Financial Performance |
FY2023-24 | FY2022-23 | FY2021-22 | FY2020-21 |
| Revenue from operations(1) | 21488.23 | 14707.16 | 10060.26 | 8557.25 |
| EBITDA(2) | 2721.72 | 1513.83 | 991.45 | 735.22 |
| EBITDA Margin(3) | 12.67 | 10.29 | 9.85 | 8.59 |
| PAT | 1778.16 | 934.31 | 645.59 | 477.03 |
| PAT Margin(4) | 8.27 | 6.35 | 6.42 | 5.57 |
| Net Worth(5) | 7886.64 | 5758.20 | 4823.89 | 4178.30 |
| RoE(%)(6) | 26.06 | 17.66 | 14.34 | 11.96 |
| RoCE(%)(7) | 28.50 | 17.48 | 14.33 | 10.48 |
| Debt- Equity(%)(8) | 0.40 | 0.53 | 0.47 | 0.80 |
Notes:
(1)
Revenue from operation means revenue from operations as appearing in the Restated Financial Statements (2)EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income (3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations(4
PAT is calculated as Profit before tax Tax Expenses(5)
‘PAT Margin is calculated as PAT for the period/year divided by revenue from operations. (6) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity(7)
Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}.Explanation for KPI metrics:
KPI |
Explanations |
Revenue from Operations |
Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business |
| EBITDA | EBITDA provides information regarding the operational efficiency of the business |
EBITDA Margin (%) |
EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business |
| PAT | Profit after tax provides information regarding the overall profitability of the business. |
PAT Margin (%) |
PAT Margin (%) is an indicator of the overall profitability and financial performance of our business. |
Networth |
Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity. |
Debt Equity Ratio |
The debt to equity ratio compares an organizations liabilities to its shareholders equity and is used to gauge how much debt or leverage the organization is using. |
| RoE(%) | RoE provides how efficiently our Company generates profits from shareholders funds. |
RoCE (%) |
RoCE provides how efficiently our Company generates earnings from the capital employed in the business. |
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Standalone Restated Financial Statements for the financial years ended on March 31, 2024, March 31, 2023 and March 31, 2022.
( in lakhs)
For the Year ended on |
||||||
Particulars |
March 31, 2024 | % of Total Income | March 31, 2023 | % of Total Income | March 31, 2022 | % of Total Income |
INCOME |
||||||
Revenue from operations |
21488.23 | 99.23% | 14,707.16 | 99.26% | 10,060.26 | 98.76% |
Other income |
167.69 | 1% | 110.29 | 0.74% | 125.97 | 1.24% |
Total Income (I) |
21655.92 | 100.00% | 14,817.45 | 100.00% | 10,186.23 | 100.00% |
EXPENSES |
||||||
Cost of Revenue from Operations |
19929.34 | 92.03% | 14,252.66 | 96.19% | 9,076.62 | 89.11% |
Change in Inventories of work in progress & finished goods |
-1712.38 | -7.91% | (1,525.00) | (10.29)% | (380.40) | (3.73)% |
Employee Benefit Expenses |
247.58 | 1.14% | 241.51 | 1.63% | 214.65 | 2.11% |
| Finance Costs | 350.50 | 1.62% | 237.64 | 1.60% | 217.15 | 2.13% |
Depreciation and Amortisation |
100.61 | 0.46% | 69.37 | 0.47% | 32.75 | 0.32% |
Expenses Other Expenses |
301.96 | 1.39% | 224.16 | 1.51% | 157.94 | 1.55% |
Total expenses (II) |
19217.62 | 88.74% | 13,500.34 | 91.11% | 9,318.71 | 91.48% |
Profit/ (Loss) before tax (III=I-II) |
2438.30 | 11.26% | 1,317.11 | 8.89% | 867.52 | 8.52% |
Tax expenses |
||||||
1.Current Tax |
636.81 | 2.94% | 342.71 | 2.31% | 217.63 | 2.14% |
2. Current Tax Expenses Relating to Prior Years |
29.20 | 0.13% | 45.25 | 0.31% | 6.31 | 0.06% |
3. Net Current Tax Expenses |
666.02 | 3.08% | 387.96 | 2.62% | 223.94 | 2.20% |
4.Deferred Tax |
5.88 | 0.03% | 5.16 | 0.03% | 2.01 | 0.02% |
Total Tax Expenses (IV) |
660.14 | 3.05% | 382.80 | 2.58% | 221.93 | 2.18% |
Profit/ (Loss) after tax (V=III-IV) |
1778.16 | 8.21% | 934.31 | 6.31% | 645.59 | 6.34% |
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Revenue from operations:
Revenue from operations mainly consists of revenue from construction, other infrastructure work related to pipeline, tubewell, water tank, electric work, operation & maintenance etc. and from sale of material & scrap.
Other Income:
Other income primarily comprises of interest income, profits from JVs, profit on sale of fixed assets etc.
Cost of Revenue from Operations:
Cost of Material Consumed consists of purchase of inventories, salary& wages, and other direct expenses.
Total Expenses
Total expenses consist of operating cost like Purchase of Material, Job Work, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.
Change in inventories:
Changes in the inventory comprises of work in progress and finished goods.
Employee benefits expense:
Employee benefits expense primarily comprises of Salaries & wages, contribution to Provident & other funds and Staff welfare expenses.
Finance Costs:
Our finance cost includes Interest expense and Other Borrowing cost & Bank Charges.
Depreciation and Amortization Expenses:
Depreciation includes depreciation on Property, Plant & Equipment, and Intangible Assets etc.
Other Expenses:
Our other expenses include Rent, Printing & Stationery, Travelling & Conveyance, Electricity & Water Charges, Legal & Professional Charges, Fees & Taxes, Repair & Maintenance, Charity & Donation, Corporate Social Responsibility Expenses, Marketing expenses, loss from JVs etc.
COMPARISON OF FINANCIAL YEAR 2024 WITH FINANCIAL YEAR 2023 (BASED ON STANDALONE RESTATED FINANCIAL STATEMENTS) Total Income:
Total income for the financial year 2023-24 stood at 21,655.92 Lakhs whereas in Financial Year 2022-23 the same stood at 14,817.45 Lakhs representing a significant increase of 46.15% primarily due to an increase in revenue from operations
Revenue from Operations:
Revenue from Operations for the financial year 2023-24 stood at 21,488.23 Lakhs whereas in Financial Year 2022-23 the same stood at 14,707.16 Lakhs representing an increase of 99.23%. This was due to incremental increase in Revenue generation of 12909.92 Lakhs in Pipeline, Tube Well & Water Tank Sector.
Other Income:
Other Income for financial year 2023-24 was 167.69 Lakhs as against 110.29 Lakhs in the Financial Year
2022-23 representing a n increase of 52.4% which was primarily due to Miscellaneoud Income and FDR Interest.
Total Expenses
Total Expenses for financial year 2023-24 has increased to 19217.62 Lakhs from 13500.34 Lakhs in the financial year 2022-23 representing an increase of 42.35%, the said increase is due to increase in volume of business and related cost. Cost of revenue from operations and Change in Inventories of Finished Goods, Work In Progress & Stock In Trade together made up over 90% of the total expenses and increased by 46.36%. Moreover, an increase was observed under all other heads of expense as well.
Cost of Revenue from Operations
Cost of Revenue from Operations for the financial year 2023-24 has increased to 19929.34 Lakhs from 14252.66 Lakhs in the Financial Year 2022-23 representing an increase of 39.83%. This was primarily due to considerable increase in Purchase of Material, Salary & Wages, and Machine Hiring Charges etc.
Change in inventories
Closing Inventories of Finished Goods, Work In Progress & Stock In Trade for financial year 2023-24 was 4300.45 lakhs as against 2,588.06 lakhs in financial year 2022-23 representing an increase of 66.16%.
COMPARISON OF FINANCIAL YEAR 2023 WITH FINANCIAL YEAR 2022 (BASED ON STANDALONE RESTATED FINANCIAL STATEMENTS) Total Income:
Total income for the financial year 2022-23 stood at 14,817.45 Lakhs whereas in Financial Year 2021-22 the same stood at 10,186.23 Lakhs representing a significant increase of 45.47% primarily due to an increase in revenue from operations.
Revenue from Operations:
Revenue from Operations for the financial year 2022-23 stood at 14,707.16 Lakhs whereas in Financial Year
2021-22 the same stood at 10,060.26 Lakhs representing an increase of 46.19%. This was on the back of 22% growth rate in revenue from Sewer Work & Treatment Plant Work, which accounted for over 74% of the total revenue from operations. Followed by over 550% growth rate from Jal Jeevan Mission which made up 21% of the total revenue from operations.
Other Income:
Other Income for financial year 2022-23 was 110.29 Lakhs as against 125.97 Lakhs in the Financial Year
2021-22 representing a decrease of 12.45% which was primarily due to decrease in miscellaneous income and no profits recorded from VVIPL BCPL (JV) - AOP as it was terminated due to completion of work.
Total Expenses:
Total Expenses for financial year 2022-23 has increased to 13,500.34 Lakhs from 9,318.71 Lakhs in the financial year 2021-22 representing an increase of 44.87%, the said increase is due to increase in volume of business and related cost. Cost of revenue from operations and Change in Inventories of Finished Goods, Work In Progress & Stock In Trade together made up over 90% of the total expenses and increased by 46.36%. Moreover, an increase was observed under all other heads of expense as well.
Cost of Revenue from Operations:
Cost of Revenue from Operations for the financial year 2022-23 has increased to 14,252.66 Lakhs from 9,076.62 Lakhs in the Financial Year 2021-22 representing an increase of 57.03%. This was primarily due to considerable increase in Purchase of Material, Salary & Wages, Machine Hiring Charges etc.
Change in inventories:
Closing Inventories of Finished Goods, Work In Progress & Stock In Trade for financial year 2022-23 was 2,588.06 lakhs as against 1,063.06 lakhs in financial year 2021-22 representing an increase of 143.45%.
Employee benefits expense:
Employee benefits expense stood at 241.51 Lakhs during the financial year 2022-23 as compared to 214.65
Lakhs in the financial year 2021-22, representing an increase of 12.52% primarily due to increase in Salaries and a corresponding increase in Employers Contribution to PF.
Finance costs:
Finance costs for financial Year 2022-23, was 237.64 Lakhs as against 217.15 Lakhs during the financial year
2021-22, representing an increase of 9.44%, which is primarily due to the increase in Bank Charges & Commission, and Bank Interest & Finance Charges. There was an increase in both long term and short term borrowings in FY 2022-2023.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses for financial year 2022-23 was 69.37 Lakhs as against 32.75 Lakhs during the financial year 2021-22, representing an increase of 111.85% primarily due to additions in Plant & Machinery, Office Equipment, Computers and Vehicles to the tune of 255.53 Lakhs and 7.43 Lakhs of
Intangible Assets.
Other Expenses:
Other Expenses for financial Year 2022-23 was 224.16 Lakhs as against 157.94 Lakhs during the financial year
2021-22. The increase of 41.93% was primarily due to increase in expenses of Legal & Professional Charges, Printing & Stationery, and Insurance etc.
Restated Profit/ (Loss) before tax:
Restated Profit/ (Loss) before tax for financial year 2022-23 was 1,317.11 Lakhs as compared to 867.52 Lakhs in the financial year 2021-22, representing a significant increase of 51.82% primarily due to the reasons discussed above.
Restated Profit/ (Loss) after tax:
Restated Profit/ (Loss) after tax for financial year 2022-23 was 934.31 Lakhs as compared to 645.59 Lakhs in the financial year 2021-22, representing a significant increase of 44.72% primarily due to the reasons discussed above.
COMPARISON OF FINANCIAL YEAR 2022 WITH FINANCIAL YEAR 2021 (BASED ON STANDALONE RESTATED FINANCIAL STATEMENTS)
Total Income:
Total income for the financial year 2021-22 stood at 10,186.23 Lakhs whereas in financial year 2020-21 the same stood at 8,738.20 Lakhs representing an increase of 16.57% primarily due to an increase in revenue from operations.
Revenue from Operations:
Revenue from Operations for the financial year 2021-22 stood at 10,060.26 Lakhs whereas in financial year 2020-21 the same stood at 8,557.25 Lakhs representing a significant increase of 17.56% primarily due to increase in revenue from Sewer Work & Treatment Plant Work by 18%, which made up 90% of the total revenue from operations.
Other Income:
Other Income for financial year 2021-22 was 125.97 Lakhs as against 180.95 Lakhs in the Financial Year
2020-21 representing a decrease of 30.39% which was primarily due to decrease in interest received on FDR by 40%. Interest received on FDR accounted for over 75% of the total other income.
Total Expenses:
Total Expenses for financial year 2021-22 has increased to 9,318.71 Lakhs from 8,113.36 Lakhs in the financial year 2020-21 representing an increase of 14.86% the said increase is due to increase in volume of business and related cost.
Cost of Revenue from Operations:
Cost of Revenue from Operations for the financial year 2021-22 has increased to 9,076.62 Lakhs from 6,040.70 Lakhs in the Financial Year 2020-21 representing an increase of 50.26%, primarily due to increase in cost of material purchased and job work by 53% and 49%, respectively. Cost of material purchased and job work together accounted for over 90% of total cost of revenue from operations.
Purchase of Stock-In-Trade:
NIL.
Change in Inventories of Finished Goods, Work In Progress & Stock In Trade:
Closing inventory of Finished Goods, Work In Progress & Stock In Trade for financial year 2021-22 was 1,063.06 lakhs as against 682.66 lakhs in financial year 2020-21 representing an increase of 55.72%.
Employee benefits expense:
Employee benefits expense stood at 214.65 Lakhs during the financial year 2021-22 as compared to 278.57 Lakhs in the financial year 2020-21, representing a decrease of 22.95% primarily due decrease in Gratuity Expense and Leave Encashment Expense by 80% and 88% respectively. Salaries saw a marginal increase of 2%.
Finance costs:
Finance costs for financial Year 2021-22, was 217.15 Lakhs as against 250.10 Lakhs during the financial year 2020-21, representing a decrease of 13.18%, which is primarily due to the decrease in Rate of Interest of Bank and Bank Guarantee Charges. Bank Limit Utilisation was also on the lower side as compared to previous year.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses for financial year 2021-22 was 32.75 Lakhs as against 41.23 Lakhs during the financial year 2020-21, representing a decrease of 20.57% primarily due to Written Down Value Method of Depreciation and addition in Fixed Assets were added in the later part of the year.
Other Expenses:
Other Expenses for financial Year 2021-22 was 157.94 Lakhs as against 70.49 Lakhs during the financial year
2020-21. The increase of 124.05% was primarily due to increase in expenses of Travelling & Conveyance, Legal & Professional Charges, Festival Expenses, and Vehicle Running and Maintenance etc.
Restated Profit/ (Loss) before tax:
Restated Profit/ (Loss) before tax for financial year 2021-22 was 867.52 Lakhs as compared to 624.84 Lakhs in the financial year 2020-21, representing an increase of 38.84% primarily due to the reasons discussed above.
Restated Profit/ (Loss) after tax:
Restated Profit/ (Loss) after tax for financial year 2021-22 was 645.59 Lakhs in comparison to 477.03 Lakhs in the financial year 2020-21, representing an increase of 35.34% primarily due to the reasons discussed above.
Key Performance Indicators of our Company (Consolidated Basis)
( In Lakhs except percentages and ratios)
Key Financial Performance |
FY2023-24 | FY2022-23 | FY2021-22 | FY2020-21 |
| Revenue from operations(1) | 28352.92 | 20889.94 | 18186.72 | 12500.38 |
| EBITDA(2) | 3145.91 | 1981.03 | 588.89 | 112.70 |
| EBITDA Margin(3) | 11.09 | 9.48 | 3.24 | 0.90 |
| PAT | 2071.23 | 1357.66 | 452.96 | -18.71 |
| PAT Margin(4) | 7.31 | 6.50 | 2.49 | -- |
| NetWorth(5) | 11061.17 | 8639.66 | 6803.50 | 6350.54 |
| RoE(%)(6) | 21.36 | 15.15 | 4.83 | -- |
| RoCE(%)(7) | 19.00 | 15.24 | 8.08 | 5.40 |
| Debt-Equity (%) | 0.40 | 0.42 | 0.98 | 1.27 |
Notes:
(1
)Revenue from operation means revenue from operations as appearing in the Restated Financial Statements (2)EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income (3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations(4
PAT is calculated as Profit before tax Tax Expenses(5)
‘PAT Margin is calculated as PAT for the period/year divided by revenue from operations.(6)
Debt equity ratio means ratio of total debt (long term plus short-term including current maturity of long-term debt) and Equity Share capital plus other equity. (7) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity (8) Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}.Explanation for KPI metrics:
KPI |
Explanations |
Revenue from Operations |
Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business |
| EBITDA | EBITDA provides information regarding the operational efficiency of the business |
EBITDA Margin (%) |
EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business |
| PAT | Profit after tax provides information regarding the overall profitability of the business. |
PAT Margin (%) |
PAT Margin (%) is an indicator of the overall profitability and financial performance of our business. |
Networth |
Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity. |
Debt Equity Ratio |
The debt to equity ratio compares an organizations liabilities to its shareholders equity and is used to gauge how much debt or leverage the organization is using. |
| RoE(%) | RoE provides how efficiently our Company generates profits from shareholders funds. |
RoCE (%) |
RoCE provides how efficiently our Company generates earnings from the capital employed in the business. |
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Consolidated Restated Financial Statements for the financial years ended on March 31, 2024, March 31, 2023 and March 31, 2022.
( in lakhs)
For the Year ended on |
||||||
Particulars |
March 31, 2024 | % of Total Income | March 31, 2023 | % of Total Income | March 31, 2022 | % of Total Income |
INCOME |
||||||
Revenue from operations |
28352.92 | 99.18% | 20,889.94 | 99.21% | 18,188.53 | 98.18% |
Other income |
235.40 | 0.82% | 166.33 | 0.79% | 337.50 | 1.82% |
Total Income (I) |
28588.31 | 100.00% | 21,056.28 | 100.00% | 18,526.04 | 100.00% |
EXPENSES |
||||||
Cost of Revenue from Operations |
24780.51 | 86.68% | 18,390.74 | 87.34% | 14,329.19 | 77.35% |
Change in Inventories of work in progress & finished goods |
-829.77 | -2.90% | -564.04 | -2.68% | 2,105.99 | 11.37% |
| Employee Benefit | 524.38 | |||||
| Expenses | 1.83% | |||||
| 493.78 | 2.35% | 658.95 | 3.56% | |||
| Finance Costs | 404.98 | |||||
| 1.42% | ||||||
| 269.57 | 1.28% | 260.66 | 1.41% | |||
Depreciation and Amortisation |
154.85 | 0.54% | 99.20 | 0.47% | 76.84 | 0.41% |
| Expenses | ||||||
| Other Expenses | 731.89 | |||||
| 2.56% | ||||||
| 588.42 | 2.79% | 505.52 | 2.73% | |||
Total expenses (II) |
25766.83 | 90.1322% | 19,277.69 | 91.55% | 17,937.14 | 96.82% |
Profit/ (Loss) before tax (III=I-II) |
2821.48 | 9.87% | 1,778.59 | 8.45% | 588.89 | 3.18% |
Tax expenses |
||||||
1. Current Tax |
700.81 | 3.29% | 442.21 | 2.10% | 246.13 | 1.33% |
| 2. Current Tax | ||||||
| Expenses | 167.53 | 0.80% | 25.52 | 0.14% | ||
| Relating to Prior | 26.61 | 26.61 | ||||
| Years | ||||||
| 3. Net Current | 423.81 | 2.45% | 609.74 | 2.90% | 271.65 | 1.47% |
| Tax Expenses | ||||||
| 4. Deferred Tax | 9.67 | |||||
| 0.09% | ||||||
| 1.23 | 0.01% | 0.28 | 0.00% | |||
Total Tax |
717.75 | |||||
Expenses (IV) |
2.54% | 608.51 | 2.89% | 271.36 | 1.46% | |
Profit/ (Loss) from Operations (V=III-IV) |
2103.73 | 7.36% | 1,170.08 | 5.56% | 317.53 | 1.71% |
Minority Interest (VI) |
32.50 | 0.11% | -187.57 | -0.89% | -135.43 | -0.73% |
Profit/ (Loss) after tax (VII=V-VI) |
2071.23 | 7.25% | 1357.66 | 6.45% | 452.96 | 2.44% |
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Revenue from operations:
Revenue from operations mainly consists of revenue from construction, other infrastructure work related to pipeline, tubewell, water tank, electric work, operation & maintenance etc. and from sale of material & scrap.
Other Income:
Other income primarily comprises of interest income, profits from JVs, profit on sale of fixed assets etc.
Cost of Revenue from Operations:
Cost of Material Consumed consists of purchase of inventories, salary& wages, and other direct expenses.
Change in inventories:
Changes in the inventory comprises of work in progress and finished goods.
Employee benefits expense:
Employee benefits expense primarily comprises of Salaries & wages, contribution to Provident & other funds and Staff welfare expenses.
Finance Costs:
Our finance cost includes Interest expense and Other Borrowing cost & Bank Charges.
Depreciation and Amortization Expenses:
Depreciation includes depreciation on Property, Plant & Equipment, and Intangible Assets etc.
Other Expenses:
Our other expenses include Rent, Printing & Stationery, Travelling & Conveyance, Electricity & Water Charges, Legal & Professional Charges, Fees & Taxes, Repair & Maintenance, Charity & Donation, Corporate Social Responsibility Expenses, marketing expenses, loss from JVs etc.
COMPARISON OF FINANCIAL YEAR 2024 WITH FINANCIAL YEAR 2023 (BASED ON STANDALONE RESTATED FINANCIAL STATEMENTS) Total Income:
Total income for the financial year 2023-24 stood at 28588.31 Lakhs whereas in Financial Year 2022-23 the same stood at 21056.28.45 Lakhs representing a significant increase of 35.77% primarily due to an increase in revenue from operations
Revenue from Operations:
Revenue from Operations for the financial year 2023-24 stood at 28,352.92 Lakhs whereas in Financial Year
2022-23 the same stood at 20,889.94 Lakhs representing an increase of 99.23%. This was due to incremental due increase in Revenue from Real Estate construction business, building construction work, Material and Scrap Sale, etc.
Other Income:
Other Income for financial year 2023-24 was 235.40 Lakhs as against 166.33 Lakhs in the Financial Year
2022-23 representing a n increase of 41.52% which was primarily due to Miscellaneoud Income and FDR Interest.
Total Expenses
Total Expenses for financial year 2023-24 has increased to 25766.83 Lakhs from 19277.69 Lakhs in the financial year 2022-23 representing an increase of 33.66%, the said increase is due to increase in volume of business and related cost. Cost of revenue from operations and Change in Inventories of Finished Goods, Work In Progress & Stock In Trade together made up over 90% of the total expenses and increased by 33.66%. Moreover, an increase was observed under all other heads of expense as well.
Cost of Revenue from Operations
Cost of Revenue from Operations for the financial year 2023-24 has increased to 24780.51 Lakhs from 18390.74 Lakhs in the Financial Year 2022-23 representing an increase of 34.74%. This was primarily due to considerable increase in Purchase of Material, Salary & Wages, and Machine Hiring Charges etc.
Change in Inventories
Closing Inventories of Finished Goods, Work In Progress & Stock In Trade for financial year 2023-24 was 6705.97 lakhs as against 5,876.20 lakhs in financial year 2022-23 representing an increase of 14.12%.
COMPARISON OF FINANCIAL YEAR 2023 WITH FINANCIAL YEAR 2022 (BASED ON CONSOLIDATED RESTATED FINANCIAL STATEMENTS)
Total Income:
Total income for the financial year 2022-23 stood at 21056.28 Lakhs whereas in Financial Year 2021-22 the same stood at 18526.04 Lakhs representing an increase of 13.66% primarily due to an increase in revenue from operations.
Revenue from Operations:
Revenue from Operations for the financial year 2022-23 stood at 20889.94 Lakhs whereas in Financial Year
2021-22 the same stood at 18188.53 Lakhs representing an increase of 14.85%. This was primarily due to by 22% growth rate in revenue from Sewer Work & Treatment Plant Work, which accounted for over 50% of the total revenue from operations. Followed by over 500% growth rate from Jal Jeevan Mission which made up 15% of the total revenue from operations.
Other Income:
Other Income for financial year 2022-23 was 166.33 Lakhs as against 337.50 Lakhs in the Financial Year
2021-22 representing a decrease of 50.72% which was primarily due to decrease in rent received and unclaimed income, by 27% and 97% respectively. These income together contributed over 60% to other income in FY 2021-2022, which was reduced to 30% in FY 2022-2023.
Total Expenses:
Total Expenses for financial year 2022-23 has increased to 19277.69 Lakhs from 17937.14 Lakhs in the financial year 2021-22 representing an increase of 7.47%, the said increase is due to increase in volume of business and related cost. Cost of revenue from operations made up over 95% of the total expenses and increased by 28.34%.
Cost of Revenue from Operations:
Cost of Revenue from Operations for the financial year 2022-23 has increased to 18390.74 Lakhs from 14329.19 Lakhs in the Financial Year 2021-22 representing an increase of 28.34%. While there was a significant increase in Purchase of Material, job work expenses and cost of Land & Building Construction saw a decline.
Purchase of Stock-In-Trade:
NIL
Change in inventories:
Closing Inventories of Finished Goods, Work In Progress & Stock In Trade for financial year 2022-23 was 5876.20 lakhs as against 8223.34 lakhs in financial year 2021-22 representing decrease of 28.54%. This also included an adjustment of 2911.17 lakhs on account of Change of Subsidiary.
Employee benefits expense:
Employee benefits expense stood at 493.78 Lakhs during the financial year 2022-23 as compared to 658.95
Lakhs in the financial year 2021-22, representing a significant decrease of 25.06% primarily due to decrease in Salaries & Wages, .
Finance costs:
Finance costs for financial Year 2022-23, was 269.57 Lakhs as against 260.66 Lakhs during the financial year
2021-22, representing an increase of 3.42%, which is primarily due to the increase in Bank Charges & Commission, and Interest on Government Dues by 16% and 9% respectively. However, a decrease of 42% and 12% was observed in Bank Interest & Finance Charges, and Interest (Paid) on Debentures, respectively. Both long term and short term borrowings have reduced in FY 2022-2023.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses for financial year 2022-23 was 99.20 Lakhs as against 76.84 Lakhs during the financial year 2021-22, representing an increase of 29.10% primarily due to major additions in Plant & Machinery, Office Equipment, Computers and Vehicles.
Other Expenses:
Other Expenses for financial Year 2022-23 was 588.42 Lakhs as against 505.52 Lakhs during the financial year 2021-22. The increase of 16.40% was primarily due to increase in expenses of Travelling & Conveyance, Electricity & Water Charges, Printing & Stationery, Fees & Taxes, Repair & Maintenance etc.
Restated Profit/ (Loss) before tax:
Restated Profit/ (Loss) before tax for financial year 2022-23 was 1778.59 Lakhs as compared to 588.89 Lakhs in the financialyear 2021-22, representing a significant increase of 202.02% primarily due to the reasons discussed above.
Restated Profit/ (Loss) after tax:
Restated Profit/ (Loss) after tax for financial year 2022-23 was 1170.08 Lakhs as compared to 317.53 Lakhs in the financialyear 2021-22, representing a significant increase of 268.49% primarily due to the reasons discussed above.
COMPARISON OF FINANCIAL YEAR 2022 WITH FINANCIAL YEAR 2021 (BASED ON CONSOLIDATED RESTATED FINANCIAL STATEMENTS)
Total Income:
Total income for the financial year 2021-22 stood at 18526.04 Lakhs whereas in financial year 2020-21 the same stood at 12761.34 Lakhs representing an increase of 45.17% primarily due to an increase in revenue from operations.
Revenue from Operations:
Revenue from Operations for the financial year 2021-22 stood at 18,188.53 Lakhs whereas in financial year 2020-21 the same stood at 12,498.15 Lakhs representing a significant increase of 45.53% primarily due to increase in gross revenue from construction by 106%, followed by increase in Sewer Work & Treatment Plant Work by 18%.
Other Income:
Other Income for financial year 2021-22 was 337.50 Lakhs as against 263.20 Lakhs in the Financial Year
2020-21 representing a increase of 28.23% which was primarily due to increase in rent received and unclaimed income. Rent received and unclaimed income together accounted for over 60% of the total other income in year 2021-2022.
Total Expenses:
Total Expenses for financial year 2021-22 has increased to 17,937.14 Lakhs from 12,764.58 Lakhs in the financial year 2020-21 representing an increase of 40.52% the said increase is due to increase in volume of business and related cost.
Cost of Revenue from Operations:
Cost of Revenue from Operations for the financial year 2021-22 has increased to 14,329.19 Lakhs from 10,702.13 Lakhs in the Financial Year 2020-21 representing an increase of 33.89%, primarily due to increase in cost of material purchased, job work and Cost of Land & Building Construction.
Change in Inventories of Finished Goods, Work In Progress & Stock In Trade:
Closing inventory of Finished Goods, Work In Progress & Stock In Trade for financial year 2021-22 was 8,223.34 lakhs as against 10,329.33 lakhs in financial year 2020-21 representing a decrease of 20.39%.
Employee benefits expense:
Employee benefits expense stood at 658.95 Lakhs during the financial year 2021-22 as compared to 723.03 Lakhs in the financial year 2020-21, representing a decrease of 8.86% primarily due decrease in Gratuity Expense and Leave Encashment Expense by 79% and 91% respectively. There was also an increase in the cost allocated to cost of construction, thus resulting in lower employee benefit expenses.
Finance costs:
Finance costs for financial Year 2021-22, was 260.66 Lakhs as against 273.93 Lakhs during the financial year
2020-21, representing a decrease of 4.84%, which is primarily due to the decrease in Bank Interest & Finance Charges.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses for financial year 2021-22 was 76.84 Lakhs as against 102.97 Lakhs during the financial year 2020-21, representing a decrease of 25.38% primarily due to written down value method of depreciation.
Other Expenses:
Other Expenses for financial Year 2021-22 was 505.52 Lakhs as against 269.19 Lakhs during the financial year 2020-21. The increase of 87.79% was primarily due to increase in expenses of Rent, Rates & Taxes, Travelling & Conveyance, Legal & Professional Charges, Repair & Maintenance, and Advertisement etc.
Restated Profit/ (Loss) before tax:
Restated Profit/ (Loss) before tax for financial year 2021-22 was 588.89 Lakhs as compared to (3.24) Lakhs in the financial year 2020-21, representing a significant increase of 18282.39% primarily due to the reasons discussed above.
Restated Profit/ (Loss) after tax:
Restated Profit/ (Loss) after tax for financial year 2021-22 was 317.53 Lakhs in comparison to (162.59) Lakhs in the financial year 2020-21, representing a significant increase of 295.30% primarily due to the reasons discussed above.
Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:
An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:
1. Unusual or infrequent events or transactions
There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus,there are no unusual or infrequent events or transactions in our Company.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or incomefrom continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 29 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues
Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 29, 1187 and 280 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
5. Total turnover of each major industry segment in which our Company operates
Our business activity primarily falls within a single business and geographical segment, i.e. is engaged in the business of infrastructure business, as disclosed in "Restated Financial Statements" on page 172, we do not follow any other segment reporting.
6. Status of any publicly announced Business Segment
Except as disclosed in the Chapter "Our Business" on page 118, our Company has not announced any new business venture.
7. Seasonality of business
Our business is not subject to seasonality. For further information, see "Our Industry" and "Our Business" on pages 104 and 118, respectively.
8. Dependence on single or few customers
We derive a significant portion of our revenues from our tie up arrangements with Governmental organizations, third party administrators and corporations. The loss of any one or more of our major customers would have a material effect on our business operations and profitability. Our revenue comes from setting up of sewer treatment plants with governmental organisations, third party administrators and corporate entities. Our top 10 customers contribute 24.87%, 21.49% and 22.80% of our revenues during the financial year 2022-23, 2021-22 and 2020-21 respectively.
9. Competitive conditions
Competitive conditions are as described under the Chapters "Our Industry" and "Our Business" beginning on pages 104 and 118 respectively of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e.March 31, 2024 .
After the date of last Balance sheet i.e. March 31, 2024, the following material events have occurred after the last audited period:
1. Our company has approved the audited financial statements for the financial year ending March 31, 2024 in the Board meeting dated June 25, 2024.
2. Our Company has allotted Bonus Shares in ratio 28:1 to existing shareholders on September 06, 2023.
3. Our Company has approved the Restated Financial Statements for the financial year ending March 31, 2024, March 31, 2023, March 31, 2022 and March 31, 2021 in the Board meeting dated January 15, 2024
4. Our Company has authorized the Issue of Equity shares in the Board Meeting dated January 08, 2024.
5. Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated July 09, 2024.
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