E Factor Experiences has established relationships with various local, state, and central government bodies in its role as an event management service provider.
The company has successfully organized significant events, including Eco Retreat in Odisha, Mandu Festival, Multimedia Light & Sound Show at Gateway of India, FIDE Chess Olympiad, Baba Saheb – The Grand Musical show on the life and teachings of Baba Saheb Ambedkar, Deepotsav in Ayodhya, and more.
The company has secured contracts for setting up, operating, and managing Eco Retreat at Sonapur (2022-2026), Ramchandi, Konark (2021-2026), and Pentha, Bhitarkanika (2021-2026) from the Tourism Department of the Government of Odisha.
In 2023, E Factor Experiences expanded its services to include social events in international destinations like Barcelona, Spain, generating revenue of Rs. 945.20 lakhs, contributing to 8.29% of its total revenue.
The company has established a long-term partnership with its experiential tourism brand, 'Sky Waltz,' owned by its subsidiary, E-Factor Adventure Tourism Private Limited. Sky Waltz specializes in managing and operating hot-air ballooning and yachting activities across India. It has been a government-approved commercial hot air balloon operator for the past 12 years and currently has a fleet of 2 yachts and 11 hot air balloons.
Approximately 89.55%, 93.26%, and 79.23% of its revenue from operations in the fiscal years 2023, 2022, and 2021, respectively, was generated from government authorities. The loss of key work orders or projects from these authorities could substantially adversely impact the company's business, financial condition, and cash flows.
Legal proceedings involving the company, its directors, and promoters could lead to adverse decisions that result in liabilities or penalties, potentially harming the company's business and operational results.
E Factor Experiences primarily operates in limited regions, such as Odisha, Delhi, Madhya Pradesh, and Uttar Pradesh, and works with specific government departments. Expanding operations to new geographies and collaborating with government authorities from other states may not be as profitable as existing contracts.
The company's subsidiary experienced a significant decline in revenue from its aviation-based café business, which was eventually discontinued.
Past losses incurred by the subsidiary or associate company and future operating losses could negatively affect the financial and operational results.
The company is exposed to fluctuations in foreign currency exchange rates, which could result in currency transaction losses.
As of March 31, 2023, E Factor Experiences had a total outstanding debt of Rs. 912.74 Lakhs.
The company has experienced negative net cash flows in the past and may continue to have negative cash flows
The company has availed unsecured loans amounting to Rs. 779.17 Lakhs, of which Rs. 395.00 lakhs is repayable on demand.