W S Industries (India) Ltd Management Discussions

A. Industry overview and Opportunities

i. Governments focus on Infrastructure Development.

The Indian Governments 2025 Union Budget continues to prioritize infrastructure as a core driver of economic growth, with over 1.2 -11.5 lakh Crore allocated for capital expenditure on core projects like Railways, Highways, Ports and urban development. New programs target Cities as Growth Hubs, urban redevelopment and water -sanitation initiatives, adopting a competitive, project-based funding model that relies on Public- Private partnerships to boost innovation and efficient delivery.

Government strategies now lean heavily on PPP model and Asset monetization, with a latest plan aiming to recycle Rs 10 Lakh Cr into new infrastructure projects from 2025-30, attracting more private capital while balancing public debt.

Urban challenge funds and special support for project feasibility via the Indian Infra Structure Project Development Fund encourage states to develop innovative infrastructure proposals.

There is a sharp pivot to sustainability- Green infrastructure, eco-friendly constructions and climate-resilient designs are now the norms. Project emphasize renewable energy, water conservation and efficient public transport, in line with Indias climate goals. AI, digital technologies, and smart city initiatives are becoming central, with allocations to develop integrated multimodal logistics parks, deploy digital twins for construction monitoring and promote the use of artificial intelligence across sectors.

Electric Vehicle Charging networks, rapid rail and Metro expansion and resilient infrastructure to handle extreme weather events are high on the agenda for 2025.

The PM Gati Shakti Master Plan anchors Government efforts to integrate rail, road, Ports and Industrial corridors, reducing logistics costs and facilitating seamless trade.

Large scale projects - like the National Industrial Corridor Development Corporations industrial and smart city corridors - are positioned to act as economic engines and make india globally competitive.

Rural connectivity (Pradhan Mantri Gram Sadak Yojana), urban housing, and potable water missions (Jal Jeevan Mission) remain priorities.

The focus on affordable housing, resilient rural roads and infrastructure for health care, tourism, and data centers aims to balance urban and rural development.

ii. Infrastructure development in Tamilnadu

Tamilnadu is undertaking a significant push towards strengthening its infrastructure across various sectors. The focus is on improving connectivity, boosting economic growth and enhancing the quality of life for its Citizens. A look at the key areas sums up as below

Roads and Highways

Extensive network-Tamilnadu has a large road network, including numerous National Highways. The largest expressway project is Chennai Peripheral Ring Road which is expected to be completed by January 2026. Different phases of the work are under various stages of completion. The other projects include elevated expressway on several state high ways including amenities like EV Charging Stations.

Urban Transporation

Likewise, the Chennai Metro work is being expanded with phase II receiving substantial funding. An extension from Airport to Kilambakkam is also planned. Initiatives like integrated Urban Development Mission and Tamilnadu Urban Road Infrastructure Programme are focussed on improving urban amenities such as water supply, roads, and drainage.

Industrial Corridors

Tamilnadu is unique in India as all its districts are covered by industrial corridor projects. These include the Tamilnadu Defence Industrial Corridor, Chennai- Bengaluru Industrial Corridor (CBIC), Chennai-Kanyakumari Industrial Corridor and Kochi-Coimbatore -Bengaluru Industrial Corridor. The Tamilnadu Industrial Development Corporation is responsible for the development and coordination of these corridors.

iii. IT Infrastructure Development in the country

India is significantly investing in IT infrastructure development to support its growing digital economy and improve public services. This includes expanding data centers, enhancing digital connectivity, and implementing digital platforms for better governance. Initiatives like the Digital India program and the PM Gati Shakti plan are driving this transformation, focusing on both urban and rural areas.

Government of Tamilnadu also plays a very vital role in development of IT infrastructure in a major way. Tamilnadu has created an exclusive Information Technology and Digital Services department to assist the Government in establishing Tamilnadu as an e-Enabled State. The vision statement clearly indicates to empower every individual and households in Tamilnadu by harnessing the power of Information Technology enabled through high-speed band width and low latency capacity.

iv. Jal Jeevan Mission

The Jal Jeevam Mission, a flagship program of the Government of India, aims to provide Functional Household Tap Connections (FHTC) to every rural household. The mission targets delivering tap water to approximately to 19 Crore rural households. As of early 2025 around 15.44 Crore rural households have been connected to tap water. This mission is being implemented by the Union Government in partnership with States.

v. Transporation Infrastructure

India has a vast and expanding transportation infrastructure, encompassing roads, railways, waterways and airways. The country boasts the Second-largest Road network globally and a significant railway network. The Government has invested heavily in infrastructure development, particularly through initiatives like Bharat Mala project for highways and Sagarmala program for ports and waterways.

B. Industry overview and Threats

Despite the enormous potential available for the Infrastructure Industry, acute competition prevails in the market. Also, the projections are prone to widespread changes on account of increased costs thereby reducing the margins. Availability of quality contract labour also poses issues

C. Segment Wise or Product Wise performance

The Company caters to only one segment of operations and hence Segment wise reporting is not applicable. Since there is no manufacturing activity Product wise performance is also not applicable.

D. Company overview and Performance

i. Company overview.

For the Financial year 2024-25, the Company continues its business on Infrastructure Projects. The Company also continues its efforts towards development of industrial and logistics hub at Santhavellore, Chennai.

ii. Financial performance

For the Financial year 2024-25 the Company achieved a total income of Rs 240.91 Cr as against Rs 328.70 Cr achieved during the earlier year. The decrease is mainly attributable to changes incorporated by the Main customer and various delay on account of such changes. Correspondingly the earnings before interest, Depreciation and taxes (EBIDTA) as well as Profit before tax has come down. Increase in interest and depreciation also added to the decrease in profits. However, despite all the above your Company could end up with a reasonable Profit before Tax of Rs 7.13 Cr.

Going ahead for the future the Company is committed to enhance the Total Income and profitability with dedicated existing projects, identifying new projects and new partnerships.

E. Outlook

i. Industry outlook

Indias infrastructure is poised for substantial growth, driven by ambitious government initiatives and increasing investments. The Nationss future infrastructure landscape will be shaped by a focus on improving connectivity, logistics and social infrastructure, aiming to propel India towards becoming a developed country by 2047.

Chennai is poised for significant infrastructure growth driven by a combination of government initiative, private investment and a focus on sustainable and smart city development.

• Transport and connectivity

Metro rail expansion, Road network enhancements, Chennai-Bangalore Industrial corridors, New Greenfield Airport are certain specific areas of concentration by the Tamilnadu Government.

• Industrial and Economic Growth

Towards achieving the above the Tamilnadu Government has created specific industrial corridors to attract various investments in manufacturing, electronic and textiles.

Smart Cities and IT parks are another area to address efficient public services and to drive urban development in peripheral areas.

To boost trade and achieve industrial growth the Chennai port expansion is being carried out.

• Social and civic infrastructure

Chennais social infrastructure is strengthened by renowned educational institutions like IIT, Madras and Anna University alongside advanced health care facilities catering to a growing population and medical tourism. Chennai is focused on sustainable practices, including rainwater harvesting, eco-friendly buildings and the development of green spaces to balance growth with environmental responsibility. A Rs 1032 Cr allocation has been made for storm water drainage projects to improve floods prevention in the kosathalaiyar and Kovalam basins benefiting areas such as Madipakkam, Sholinganallur and Madhavaram.

ii. Company outlook Consolidation and continued growth

Taking into consideration the thrust instituted by both Central and State Governments the Company continue to concentrate on Infrastructure Projects during the current year also to boost the growth. The company is also having a sizable order position which will help to achieve reasonable results.

The orders on hand of around Rs 125 Cr consists of the following infrastructure projects:

• Macro Drain in Pallavaram- Thorapakkam Road

• Integrated Bus Terminal and Multi-Utility Centre at Trichy

• Combined water Supply Scheme in Nagapattinam District, Tamilnadu under the Jal Jeevan Mission

• Rail Over Bridge near Maris Theatre Trichy

• Additional Work on Integrated Bus Terminal and Multi-Utility Centre at Trichy

• Construction of Omni Bus Stand at Panjapur Trichy

Projects in the Pipeline

Considering the need for growth and expansion the Company has undertaken certain strategic projects as below:

• Development of a modern logistics park on 400 acres of land at Sunguvar Chathram, Kancheepuram District, Tamilnadu including plans for integrated township.

• A joint venture with Prestige Group Bangalore for development of IT/ITES Parks in Chennai.

The Company is also looking into avenues for diversification into other infrastructure sectors towards expansion and growth.

F. Enterprise Risk Analysis and its Management

The Company identified the various risks associated with the business-like operational risks and strategic risks including tactical risks. Strategies are outlined to mitigate all these risks so that they are effectively managed to support the Company for the stability and growth.

G. Internal Control systems and their adequacy

• The Company maintains alnd majority its records in ERP system developed in-house and the work flow and majority approvals are routed through this system at the Registered Office of the Company at 3rd Floor, New No.48, Old No. 21, Savidhaanu Building, Casa Major Road, Egmore, Chennai - 600 008. Company has confirmed online access to these books of account is available and printouts can be generated at the Registered Office as and when required. All evidencing documents for the transactions reported in the books are physically available at the registered office of the Company.

• The Company has laid down adequate systems and well-drawn procedures for ensuring internal financial controls. It has appointed an external Audit firm as Internal Auditors for periodically checking and monitoring the internal control measures.

• Internal Auditors are present at the Audit Committee Meetings where Internal Audit Reports are discussed alongside of management comments and the final observation of the Internal Auditor.

• The Board of Directors have adopted various policies like Related Party Transactions Policy and Whistle Blower Policy and put in control and monitoring measures for ensuring the orderly and efficient conduct of the business of the Company, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

• The Statutory Auditors have also expressed satisfaction with the existing system in their Audit report to the Shareholders.

H. Cautionary Statement

This report contains forward-looking statements about projections, estimates, and expectations. Actual results may differ significantly due to various factors, including economic conditions, government policies, and market dynamics. The information provided should not be construed as investment advice

I Discussion on Financial Performance with respect to Operational Performance

This has been explained in details in the Directors Report to the shareholders. Despite delays and changes in the operational Plan as decided by the Main Customer, the Company could achieve a reasonable turnover and Profitability

J Material Developments in Human Resources/Industrial Relations front, including number of people employed

Relations between the Management and the labour were cordial throughout the year under review. The Company as on 31.03.2025 has an employee Strength of 106 Persons at all levels including the four Executive Directors.

i Details of Significant changes (i.e change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations.

The details of financial ratios are disclosed in the Notes to the Financial Statements, which form an integral part of this Report