<dhhead>MANAGEMNT DISCUSSION AND ANALYSIS </dhhead>
The discussion hereunder covers the financial results of GVP Infotech
Limited for the financial year 2022-23 and its business outlook for the future. Certain
statements in the ‘Management Discussion and Analysis Report’ section may be
forward looking and are stated as required by applicable laws and regulations. Many
factors may affect the actual results, which could be different from what the Directors
envisage in terms of the future performance and outlook.
Overview about Company
Fourth Dimension Solutions founded in 2011 (In recent changed its name
from Fourth Dimension Solutions Limited to GVP Infotech Limited), is an India-based
information technology (IT) and cable infrastructure Company which provides end-to-end IT
/ ITEs and telecom solutions combined with technical support and operations outsourcing.
The Company partners with government and public sector institutions to provide sustainable
IT strategies at competitive costs. It operates in three core verticals - Technology
Solutions, IT Infrastructure Services, and Operations Outsourcing.
Industry structure and developments
Technology is transforming businesses in every industry around the
world in a profound and fundamental way. In fiscal 2023, we saw emerging technologies,
like generative AI, 5G, Low Code No Code, shape the future of industries. Responsible
business approaches, including embracing ESG, have gained traction. We continued to
witness businesses attempting to reimagine their cost structures, increase business
resilience and agility, personalize experiences for customers and employees, and launch
new and disruptive products and services
Our strengths
We believe that we are well-positioned for the principal competitive
factors in our business. With experience in managing the systems and workings with
enterprises, we believe we are uniquely positioned to help them steer through their
technology transformation with our technological Framework.
Our competition
We see intense competition in traditional services, a rapidly changing
marketplace and the emergence of new players in niche technology areas.
Major opportunities of the Company are as follows
Wide experience in executing various government IT contracts. Track
record of successful execution of projects. Increase in IT-Automation and digitalization
in government sector. Financial Technologies sector.
Major Threats/Challenges to the Company are as follows
Competition. Cybersecurity.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The company has adequate internal control systems commensurate with its
size and operations to ensure orderly and efficient conduct of business while safeguarding
the assets, quality, safety, procurements, finance and accounts and reducing and detecting
error.
RISK & CONCERNS:
Risk Management is a critical exercise for all organizations,
particularly with the companies dealing in technology sector which is uncontrollable as
due to hardware and software failure, human error, spam, viruses and malicious attacks, as
well as natural disasters such as fires, cyclones or floods. However, the main aim of risk
management is to identify and analyze the risks through a structured Risk-Benefit Analysis
as and mitigate the risks wherever possible.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The financial performance of the Company is described in the
Director’s Report under the head "Financial Result" and "Review of
Operations".
Key Financial Ratios:
The key financial ratios for Financials are as per the below table:
Sr. Particular |
2022-23 |
2021-22 |
1 Total Revenue (Amount in lacs) |
1767.60 |
153.06 |
2 EBITDA (Amount in lacs) |
488.180 |
56.80s |
3 PBT (Amount in lacs) |
452.45 |
10.61 |
4 PAT (Amount in lacs) |
449.37 |
6295.57 |
5 Net Worth (Amount in lacs) |
16678.96 |
16229.59 |
6 ROE % (Net Profit after tax / Average
Shareholders Equity) |
2.69 |
38.79 |
7 Current Ratio (Current Assets / Current
Liabilities) |
2.27 |
0.07 |
8 Fixed Assets Turnover Ratio (Net Sales /
Average Fixed Assets) |
1.25 |
0.11 |
9 Debtors Turnover Ratio (Credit Sales /
Average Account Receivable) |
0.11 |
0.01 |
10 Interest Coverage Ratio (EBITDA / Interest
expenses) |
181.77 |
12.51 |
11 Inventory Turnover Ratio |
NA |
NA |
12 Debt Equity Ratio |
00.00 |
0.00062 |
During the year under review the revenue of the Company increased from
Rs. 153.06 Lakhs to Rs. 1767.60 Lakhs, an increase of 1054.84%. However, the profit after
tax decreased from Rs 6295.57 Lakhs to Rs. 449.37 Lakhs, decrease of 92.86%. Multiple
reasons contributed to this lower performance. Increased Operating Costs to expand its
operations to meet the growing demand for software development services, such as employee
salaries, infrastructure expenses. These rising costs offset the revenue growth and impact
profitability. The IT and software development sector is highly competitive, with numerous
companies vying for clients and projects. In such a competitive environment, companies may
offer competitive pricing or discounts to win contracts, which impacts profit margins
MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT:
The Company routinely undertakes employee development activities
keeping in mind the professional requirement of the employee as well as the growth of the
company.
The Company has embarked on the path to formalize its commitments and
is perhaps the one of the companies in India in the technology sector to move in this
direction. This is not only going to result in the better integration within the supply
chain but also offer a significant competitive edge in marketing our products in the
developed markets across the word.
The industrial relations were cordial throughout the year with no
incidence of strike or lockouts.
CAUTIONARY NOTE:
Certain statements in the ‘Management Discussion and
Analysis’ section may be forward-looking and are stated as required by applicable
laws and regulations. Many factors may affect the actual results, which would be different
from what the Directors envisage in terms of the future performance and outlook. Investors
are cautioned that this discussion contains forward looking statement that involve risks
and uncertainties including, but not limited to, risks inherent in the Company’s
growth strategy, dependence on certain businesses, dependence on availability of qualified
and trained manpower and other factors discussed. The discussion and analysis should be
read in conjunction with the Company’s financial statements and notes on accounts.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events, or
otherwise.
Date: August 24, 2023, |
By order of the Board |
| |
For GVP Infotech Limited |
Registered Office |
|
|
Office No. 710, Naurang House |
Rajesh Thakur |
Dhaval Mistry |
Kasturba Gandhi (KG) Road, |
Managing Director |
Director |
Connaught Place New Delhi 110001 |
(DIN: 08378490) |
(DIN: 03411290) |
+91-9892691696
