w s industries india ltd share price Management discussions



The Objective of this Report is to present the Managements perception of the various developments in the business environment, challenges and opportunities before the Company as well as to provide an analysis of the Companys performance. This Report also summarizes the Companys internal control measures and significant initiatives taken by the Company to respond to such opportunities and challenges. It should be read in conjunction with the Directors Report to the Shareholders, Financial Statements and Notes forming part thereof.



India is experiencing a blitzkrieg upgrade in its infrastructure, driven by increased government investment and development initiatives. There are significant advancements in Indias transportation networks, including roads, railways, aviation, and waterways, and their impact on the countrys economic growth. These infrastructure developments aim to enhance connectivity, reduce logistics costs, and position India as a global economic powerhouse. Fuelled by the ambitious PM Gatishakti National Masterplan for multi-modal infrastructure development, the new roads and railways will help India fulfil its ambition to turn into a $5 trillion economy—up from $3.74 trillion currently (IMF, 2023).

Revitalizing Road Networks

India boasts of the worlds second-largest road network, with over 6.37 million kilometres. In recent years, there has been a substantial increase in the pace of construction of national highways. The governments budget support for road infrastructure has rapidly increased, reaching approximately Rs. 1.4 lakh crore in FY22-23.

Revolutionizing Railways

Indias railways have undergone substantial modernization and expansion. Capital expenditure on railway infrastructure has steadily increased over the past four years, with a budget of Rs. 2.5 lakh crore allocated in FY22-23, representing a 29% rise compared to the previous year.

Aviation Sectors UDAN

Indias aviation sector has experienced substantial growth, positioning the country as the worlds third-largest market. To promote regional connectivity and revive unserved or underserved airports, the government has allocated a budget of Rs. 4,500 crores under the Ude Desh ka Aam Nagarik (UDAN) scheme.

Harnessing Waterways

India recognizes the immense potential of its waterways in establishing a sustainable logistics sector. The governments focus on inland water transport has led to the declaration of 111 National Waterways. The Inland Vessels Bill 2021 further facilitates the growth of inland water transport, creating a robust multi-modal transport ecosystem and fostering ease of doing business. Additionally, the Sagarmala Project aims to develop ports, streamline compliances, and reduce vessel turnaround time.

Economic Implications and the Future

Transport infrastructure development reduces transport costs, increases gains from trade, and drives up wages, thus boosting economic activity.

India will be integrated into a high-quality transport network, powered by greenfield expressways, electrified railways, revamped airports, and an EV ecosystem. The transformative power of new infrastructure is a precondition for the high growth that India aspires to achieve. It is a rising tide that will lift all the sections of India.


Tamil Nadu is planning to come out with a new public-private partnership policy to woo private investments worth Rs 1 lakh crore for 100 iconic projects. The policy is being framed by Tamil Nadu Infrastructure Development Board (TNIDB). The state has identified seven sectors - agriculture, transport, social, industries, energy, urban amenities, and recreation - for taking up projects under PPP mode in the first phase. The projects could be related to urban transportation systems, power generation, transmission, drinking water supply, health infrastructure, solid waste management, and development of satellite towns.

Aiming to reach the trillion-dollar economy goal by 2030, the state government has taken steps to reduce the revenue deficit and create fiscal space for more capital expenditure. According to sources, the government is currently investing more than Rs 50,000 crore every year for capital asset creation and to reach the trillion-dollar goal by 2030, capital investments must be ratcheted up. According to a Deloitte report, the state must achieve an annual growth rate of 16.5%, from the current level of 10%, to achieve the trillion-dollar goal.

The state, while creating more fiscal space for investment from its own budget, is also keen on inviting private investments for infrastructure development. The focus of the new policy will be to share risks fairly, accommodate the concerns of private investors, and enhance the capacity of government agencies in a planned planner.


The Ministry of Power has recently accepted the recommendations of a task force report established to suggest ways to modernise and make the transmission sector smarter and future-ready. The task force was set up in September 2021 by the Ministry of Power, and POWERGRID chaired it. The goal of the task force was to identify and suggest ways to address the challenges in the transmission sector and propose modernization measures for a smart and future-ready transmission system.

India has significant potential in the transmission sector as it is the third-largest producer and consumer of electricity globally, with an installed power capacity of 408.71 GW as of October 2022. India also plans to set up 21 new nuclear power reactors with a total installed capacity of 15,700 MW by 2031. The Central Electricity Authority estimates that Indias power requirement will reach 817 GW by 2030, and renewable energy generation will increase from 18% to 44% by 2029-30, while thermal energys share is expected to reduce from 78% to 52%.

The task force has suggested several technological and digital solutions to modernize and upgrade the existing transmission system, including the use of advanced technology in construction, supervision, operations, and management, creating a smart and future-ready transmission system, and upskilling the workforce. The recommendations include centralized remote monitoring, operation of substations with SCADA, flexible AC transmission devices, cyber security, and the use of drones and robots for construction and inspection. The task force also suggests establishing benchmarks for transmission network availability and voltage control based on the performance of global transmission utilities.

Significance of future-ready transmission system

India is currently experiencing significant economic growth and population expansion, which has led to increasing demand for energy. To meet this demand, the country needs a future-ready transmission system that can efficiently transmit power from new power generation sources to the distribution network.

India has set an ambitious goal of achieving 500 GW of renewable energy capacity by 2030. To integrate such large-scale renewable energy into the grid, a future-ready transmission system is essential.

It can ensure efficient transmission and distribution of power and facilitate the integration of advanced technologies such as smart grids, energy storage systems, and demand response systems.

A future-ready transmission system can also improve grid stability by providing backup power during emergencies, ensuring the availability of power during natural disasters, and preventing blackouts.

This system can play a vital role in reducing transmission losses, which currently account for around 22% of the total power generated in India. By reducing transmission losses, the country can save a significant amount of energy and reduce greenhouse gas emissions.

Moreover, modern transmission systems can help meet sustainable goals by enabling the integration of renewable energy, reducing greenhouse gas emissions, and improving energy efficiency.


Project Segment:

The Company has discontinued the insulators business and has expanded the Infrastructure business including execution of Turnkey Projects in the verticals of electrical, EPC and construction projects.

The change in management in June 2022 has lot of significance as the Company after going through a turbulent period in the last decade, has turned around after resolving most of the litigations, challenges and clearing all the pending dues to the secured creditors. The new promoter group have the relevant experience and expertise in the infrastructure business and the Company has already bagged orders in infra structure project segments viz. integrated storm water drainage works, macro drain works, civil constructions including integrated bus terminal and multi utility facility center, pipe line projects valued at Rs.753.22 Cr. On the infrastructure vertical, the company is progressing rapidly and is actively participating in both State and Central Government and private sector projects. The focus on capex by the Government and the private sector will enable the company to achieve significant growth in the forthcoming years.

Under the stewardship of the new management, after continuous losses year on year the Company has achieved a profit before tax from continuing operations for the year ended 31.03.2023 for Rs. 32.01 millions with an EBITDA of Rs. 76.60 millions. Profit before tax from discontinued operations for the year ended 31.03.2023 for Rs. 164.54 millions.

The Companys Revenue from operations for the year ended 31.03.2023 stands at Rs. 796.72 millions.

Marching towards diversified portfolios:

a) The Company has been the successful bidder for a property under auction by Central Bank of India measuring an extent of 254 acres situated at Sunguvar Chathram, Sriperumbudur Taluk, Kancheepuram District of Tamil Nadu. The Company envisages a modern logistics park, and, in consultation with architects proposes to develop an integrated township with attendant infrastructure. The Company will associate with relevant industry leaders and financial institutions to develop this project and generate annuity and significant revenues. The total project outlay for land is Rs. 107,35,00,000/- (Rupees One Hundred Seven Crores and Thirty Five Lakhs only) and on completion of land acquisition, detailed plans including optimal land use will enable the Company to leverage significantly on this acquisition and consequent value maximization. The land is situated in the prime industrial hub of Sriperumbudur, Sunguvar Chatram and Oragadam and is in close proximity to major multinational companies.

b) The Company has entered into a joint venture with the Bangalore based Prestige Group for the development of IT/IT enabled services/parks in 6.53 acres of immovable property at No.108, Mount Poonamallee Road, Porur, Chennai - 600 116.

c) To harness the opportunities in defense segment, the Company propose/plans to add defense verticals/ segment also in its portfolios.


The exposure of the Company to various types of risk is detailed in Note 39 forming part of audited financial statements for the year ended 31st March 2023 along with the strategy employed to manage/mitigate the same.


The objective of the internal control systems is to ensure optimal use of resources, safeguard the Companys assets, exercise control and minimize system deficiencies and weaknesses. Internal Audit is carried out by an independent professional audit firm to review all aspects of the internal control system and adherence to policies and procedures. The Audit Committee of the Board of Directors reviews the internal audit reports and the implementation of corrective actions and also addresses all aspects of the Companys functioning from this perspective as required under SEBI and Company Law guidelines.


India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion. Indias population growth and economic development require improved transport infrastructure, including investments in roads, railways, and aviation, shipping and inland waterways. Development of infrastructure has a multiplier effect on demand and efficiency of transport and increases commercial and entrepreneurship opportunities. Budget 202324 is complemented with the continuation of the 50-year interest-free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of Rs. 1.3 lakh crore (US$ 16 billion). Under Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3 per cent of GDP and almost three times the outlay in 2019-20. Under Budget 2023-24, Infrastructure Finance Secretariat is being established to enhance opportunities for private investment in infrastructure that will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure, and power.

Your Management and the Company has made significant strides in the turn around and is confident that the days ahead will be very exciting considering the huge infra push by the government both Central and State.


Statements in the Managements Discussion and Analysis Report describing the Companys projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include demand-supply conditions, raw material and fuel and energy prices, changes in Government regulations, tax regimes and economic developments within the Country and State and other markets where the Company operates.