Diamond Power Infrastructure Ltd Management Discussions

Global Economy

The global economy showed signs of stability in 2024, despite encountering various challenges across economic, international relations, and governmental spheres. Global gross domestic product (GDP) expanded by 3.3%, as reported by the IMF. The pace of economic growth varied considerably worldwide. More established nations experienced a slowdown in growth, while developing economies, particularly those in Asia, generally maintained a consistent expansion. Notably, India ascended to become the worlds fourth-largest economy, surpassing Japan, and is on track to achieve the position of the worlds third-largest economy with a projected GDP of $7.3 trillion by 2030.

New uncertainties emerged in the global economic landscape following Chinas launch of DeepSeek and a subsequent wave of tariffs on key imports. These developments heightened concerns regarding disruptions to supply chains and an increase in geopolitical fragmentation. The escalation of tariffs also introduced a greater risk of retaliatory trade actions, which could adversely affect global investment flows and complicate inflation management for many economies. Throughout 2024, the global economic environment contended with persistent difficulties, including the ongoing conflict in Ukraine, disruptions in the Red Sea, international supply chain issues, trade disputes, and shifts in investment patterns influenced by climate policy.

(Source: , April 22, 2025)

Real GDP Growth (%)

World Output

Advanced Economies

Emerging Markets and Developing Economies

Outlook

The world economy is anticipated to continue on a steady expansion path, with growth rates projected at 2.8% for 2025 and increasing to 3.0% for 2026. This positive outlook stems from a balanced recovery across leading economies, which benefits from consistent demand and a reduction in inflationary pressures. Significant contributions to this growth are expected from key emerging markets, as they benefit from improvements in industrial activity and consumption.

For the United States, following a period of strong economic performance, growth is forecast to ease to 1.8% in 2025 and subsequently to 1.7% in 2026. This anticipated slowing reflects expected adjustments within the employment market and a return to typical levels of consumer spending. Meanwhile, a recovery is foreseen for the Eurozone, with growth estimated at 0.8% in 2025 and rising to 1.2% in 2026, primarily linked to an increase in consumer expenditure and declining inflation rates.

Globally, price increases are generally moderating, although certain regions still face stubborn high inflation. Worldwide inflation is projected to decrease to 4.3% in 2025 and further to 3.6% in 2026. Developed economies are expected to achieve their inflation targets sooner than other regions. Monetary policies will likely vary across different geographical areas, reflecting their diverse economic situations.

(Source: (April 2025))

Indian Economy

Indias economy sustained a consistent growth path and maintained stability throughout the financial year 2024-25. This performance reaffirmed its position as a significant global economy, achieving notable expansion. The National Statistical Office (NSO) estimated real Gross Domestic Product (GDP) growth at 6.5% for FY 2024-25, following a 9.2% growth recorded in the preceding fiscal year.

This stability underscores Indias strong economic foundations, effective governmental policies, a vibrant services sector, and robust domestic consumption. These elements collectively indicate a promising future for Indias long-term economic advancement. Indias economic standing continues its upward movement, now ranking as the worlds fourth-largest economy by nominal GDP, having surpassed Japan, and the third-largest when assessed by purchasing power parity (PPP). National objectives are set to reach a $5 trillion economy by FY 2027-28 and a $30 trillion economy by 2047. These ambitious aims are contingent on substantial investments in infrastructure, ongoing governmental reforms, and widespread adoption of technology. Demonstrating this commitment, the capital investment budget for FY 2025-26 increased to 11.21 lakh crore, representing 3.1% of GDP.

Significant governmental reforms and considerable capital allocated towards both physical and digital infrastructure are pivotal to Indias accelerated growth and increasing economic self-reliance. Government initiatives include Make in India 2.0, reforms aimed at enhancing the ease of doing business, and the Production-Linked Incentive (PLI) scheme. These programmes are designed to strengthen infrastructure, manufacturing capabilities, and exports, thereby positioning India as a prominent player in global manufacturing. With inflation anticipated to align with its targets by late 2025, a more accommodative monetary policy is probable. Furthermore, infrastructure development and supportive government policies will facilitate capital formation, while rural demand will also benefit from initiatives such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Real GDP Growth

E = Estimated P = Projected

Outlook

Indias economy is presently poised for significant expansion, with a projected growth rate of 6.2% for FY 2025-26. This forward momentum is primarily driven by considerable infrastructure investment, an increase in private sector capital expenditure, and the ongoing growth of financial services. Additionally, continuous governmental reforms are expected to offer long-term support for this economic advancement.

A range of factors contributes to this optimistic outlook. These include Indias favourable demographics, rising capital investment, proactive government initiatives, and robust consumer demand. Improved spending in rural areas also plays a part, aided by moderating inflation. The governments strategic focus on capital expenditure and sound fiscal management helps create an environment conducive to both investment and consumption. Further support comes from measures designed to enhance business and consumer confidence.

The Union Budget for FY 2025-26 outlines a financial strategy centred on stimulating growth while addressing both current and future economic needs. Through measures such as increasing disposable income, prioritising infrastructure development, and promoting domestic manufacturing, the budget aims for sustained growth alongside maintaining fiscal responsibility. A key highlight of this budget is the raised income tax exemption limit to 12.75 lakh per annum, which is anticipated to boost middle-class disposable income and encourage greater consumer spending.

Industrial Overview

Wires and Cables Industry

The Indian wire and cable sector is undergoing a significant transformation. Every new electric vehicle charging station, solar park, metro line, and 5G tower requires kilometres of specialised cables. Indian manufacturers are increasingly becoming preferred global partners for wiring solutions. As Indias energy, real estate, and digital infrastructure expand rapidly, so does the demand for cables and wires, which serve as essential conduits for power, data, and connectivity, indicating that the sector is experiencing substantial growth.

The organised cable and wire manufacturers are projected to achieve revenue growth of 16% in FY 2024-25, followed by an anticipated 15-16% in FY 2025-26. This growth is primarily driven by a considerable increase in Indias infrastructure spending, the ongoing momentum of the China+1 export strategy, and the accelerated pace of electrification across various sectors. The Indian wires and cables market was valued at $9.32 billion in 2024 and is projected to reach $17.08 billion by 2032, growing at a CAGR of 7.94%.

Key growth drivers include ambitious renewable energy projects, such as Indias solar energy targets, which necessitate extensive cabling. For instance, a 1 MW solar project requires approximately 50 kilometres of solar cable, translating to over 5 million kilometres needed for the 100 GW target. Government initiatives in power transmission, railways, and real estate are also fuelling domestic demand. Furthermore, export opportunities arising from the global shift towards diversifying supply chains position Indian manufacturers favourably in international markets.

The organised market, valued at 80,000 - 82,000 crore, is being reshaped by significant capital expenditure, which is expected to exceed 8,500 crore in FY 2025-26. Strong demand visibility forecasts an incremental demand of 20,000 crore in FY 202526. The sector is also experiencing export growth of 20-22% YoY, maintaining stable margins between 10-11% on a higher base.

Conductors Industry

The Indian conductor market is experiencing significant growth, driven primarily by rapid urbanisation, industrialisation, and escalating investments in power transmission and distribution infrastructure. The market plays a crucial role in supporting Indias expanding electricity grid by enabling efficient and reliable conductors that are essential for power cables, transformers, and other electrical systems.

The market is expected to grow at a CAGR of approximately 6.5% over the forecast period from 2025 to 2031. This growth trajectory reflects the continued demand for advanced conductor technologies that enhance performance, efficiency, and durability.

Key factors propelling the industry include ongoing government initiatives aimed at strengthening the countrys power distribution framework. Schemes such as the National Power Grid Program seek to expand and modernise transmission networks, thereby amplifying demand for quality electrical conductors. Furthermore, the national push towards cleaner energy sources, particularly renewable energy projects like solar and wind farms, necessitates conductors that support efficient power evacuation and grid integration.

The industry is witnessing a clear shift towards aluminiumbased conductors, notably All Aluminium Conductor (AAC) and All Aluminium Alloy Conductor (AAAC), prized for their lightweight characteristics, cost-effectiveness, and resistance to corrosion. These materials are increasingly preferred for overhead transmission lines, especially in challenging terrains and long-distance applications. The transition away from traditional copper conductors aligns with these economic and performance considerations.

From an application standpoint, power cable conductors constitute the largest segment, underscoring the critical need for robust infrastructure to cater to the growing electricity demand of residential, commercial, and industrial consumers. Demand from the construction sector, renewable energy installations, and rural electrification projects further corroborates this trend.

Despite the positive outlook, the market faces certain challenges. Fluctuating prices of key raw materials such as copper and aluminium pose cost pressures. Regulatory compliance, including adherence to Bureau of Indian Standards (BIS) certifications and quality benchmarks, remains a stringent requirement that impacts operational scalability. In addition, the presence of unorganised manufacturers delivering substandard products can hamper overall sector credibility and quality consistency.

Government support continues to be a significant enabler. Programs such as the Saubhagya Scheme, which facilitates the electrification of rural households, and the National Electricity Policy, which emphasises the development of modern power infrastructure, provide a conducive environment for sustained market growth. Collaborative efforts between public and private sectors further drive technological advancements and efficiency improvements.

Looking ahead, the Indian electrical conductors market is poised for steady expansion, driven by infrastructure development, smart grid adoption, and the integration of renewable energy. Innovations in conductor materials and designs aimed at enhancing conductivity while minimising environmental impact are likely to unlock new growth avenues and strengthen the nations power distribution capabilities. (Source:

Key Growth & Demand Drivers

Population growth and urbanisation: Indias urban population is projected to reach 600 million by 2031. According to the World Population Prospects 2024, India will remain the worlds most populous country, likely peaking at around 1.7 billion in the early 2060s. Economic growth, urbanisation (with 40% of the population expected to live in urban areas as per UN estimates), and changing lifestyles are boosting demand for new housing, in turn increasing the need for housing wires.

Government support: The budget prioritised housing and infrastructure, launching SWAMIH Fund II ( 15,000 crore) to complete stalled projects and a 1 lakh crore Urban Challenge Fund for urban development. Infrastructure allocation hit 11.21 lakh crore, focussing on power, railways and roads. BS-VI norms and capacity expansion are boosting power cable demand, while Smart Cities, metro networks and EV charging infrastructure drive the need for specialised cables.

Real Estate Demand: Construction capex is projected to grow 1.4x from 12.5-13.5 lakh crore (FY 2019-24) to 1819 lakh crore (FY 2024-29). This expansion in residential and commercial spaces will fuel demand for housing cables, while digital transformation accelerates the need for communication cables - creating dual growth drivers for the cable industry.

Renewable Energy Sector Demand: India is actively pursuing a target of 500 GW of installed electricity capacity from non-fossil sources by 2030. This transition necessitates specialised wires and cables, consequently driving increased demand within the sector.

Telecommunications Sector Expansion: Rapid growth in the telecommunications sector is fuelled by rising smartphone penetration (exceeding 46%), increasing 5G penetration (projected at 23% by the end of 2024), and a significant increase in broadband subscribers (approaching 950 million users).

?€? Growth of Data Centres (DCs): Indias Data Centre (DC) capacity is projected to nearly double from 1,150 MW (Dec 2024) to 2,000-2,100 MW by March 2027 (ICRA), while CRISIL estimates a 30% CAGR through FY27, surpassing 2 GW. This growth is fuelled by surging data consumption, 5G rollout, and adoption of IoT/AI/ML technologies, all requiring expanded cable infrastructure.

Company Overview

Diamond Power Infrastructure Limited (referred to as DICABS or the Company) is a prominent integrated manufacturer of power transmission equipment in India, recognised as the nations largest single-location producer of power cables and conductors. Our comprehensive product portfolio includes high-voltage cables, conductors, and robust transmission towers, all vital for Indias energy infrastructure.

A significant transformation occurred with the Company coming under new ownership, becoming part of a larger group associated with the Adani Group. This strategic alignment has ushered in a new era of growth, substantially boosting revenues and market valuation, largely driven by synergistic orders from within the group.

Our commitment to innovation and market leadership is further solidified by strategic collaborations, such as our partnership with TS Conductor (in the USA). This alliance enables us to bring nextgeneration, high-performance, and energy-efficient conductor solutions to Indias power sector, supporting critical initiatives like large-scale grid upgrades and renewable energy integration.

Our capabilities continue to be validated by substantial project wins, including a recent order valued at 1,349.11 crore from Adani Energy Solutions Limited for the supply of highperformance conductors, scheduled for execution by June 2028. This highlights our pivotal role in powering major infrastructure projects. The Companys shares are actively traded on the NSE and BSE (DICABS), reflecting our strong market presence. Diamond Power Infrastructure Limited is dedicated to advancing Indias energy landscape through continuous innovation and operational excellence.

Strategic Growth Outlook/Future Plans

Wires and Cables Business

Market Landscape and Growth Potential: Indias cables industry stands at the forefront of the countrys industrial and energy transformation. Supported by long-term government-led initiatives like Revamped Distribution Sector Scheme (RDSS), Gati Shakti, Smart Cities Mission, Green Energy Corridors, and National Infrastructure Pipeline (NIP), the demand for reliable and efficient cable systems is growing rapidly. As the nation transitions towards 24x7 power supply, smart electrification, and clean energy, cables are not just a commodity but a critical enabler of national progress.

The domestic wire and cable industry, currently valued at 850-900 billion, is projected to grow at a CAGR of 12?€“15% over the next five years. Globally, the industry is poised to touch $200 billion by 2029, driven by investments in power T&D networks, EV charging, data centres, and energy storage infrastructure.

DICABS is strategically positioned to capture this growth by leveraging its integrated manufacturing capabilities, product innovation, national footprint, and upcoming partnerships in global markets.

Capacity Expansion and Infrastructure Investments: Recognising the need to scale with speed, DICABS has initiated a major capex cycle focussed on doubling its cable capacity and diversifying into premium and future-ready products. Key investments include:

10 new Medium Voltage (MV) cable production lines ?€“ adding over 8,000 km/year to our existing capacity, catering to industrial and utility-grade applications.

A dedicated setup for Extra High Voltage (EHV) cables up to 400 kV, supported by advanced type-testing infrastructure, to compete with global OEMs and cater to national grid and metro electrification projects.

Expansion of compounding, extrusion, and sheathing lines to enhance vertical integration and improve quality control.

These capacity additions will not only support higher volumes but also enable product depth, cost optimisation, and faster delivery cycles ?€“ key to competing in both domestic and export markets.

Portfolio Diversification (Cables for the Future): DICABS is rapidly expanding its product portfolio to address the changing nature of power infrastructure. The shift from conventional transmission to distributed, renewable, and intelligent energy networks has created demand for cables with higher endurance, data-sensing capabilities, and environmental performance.

Key Product Launches:

DICABS Renew ?€“ A dedicated cable brand catering to clean and sustainable energy applications.

Solar DC & AC Cables with high UV resistance and long lifecycle for rooftop and utility-scale solar plants.

BESS (Battery Energy Storage System) Cables designed for thermal resilience and vibration endurance in grid-scale and commercial storage systems.

EV Charging Cables , including Type 2 and CCS2 compliant variants, are built for public charging stations and OEMs.

DICABS Urja ?€“ A new-generation LT power and control cable range for residential, commercial, and industrial segments, ensuring safety, energy efficiency, and compliance with the latest IS/IEC norms.

Fire Survival, Halogen-Free Cables ?€“ Developed for specialised and critical infrastructure sectors like tunnels, airports, metros, and defence.

Our R&D and type-testing infrastructure, along with an inhouse polymer compounding unit, allows us to rapidly develop, qualify, and deliver new-generation cable solutions for emerging use cases.

Strengthening Distribution & B2B Penetration: To align with the demand surge across Indias heartlands, DICABS is expanding its distribution and retail network at an accelerated pace:

State-wise distributor appointments, targeting 28 states and UTs by FY 2025-26.

Launch of regional warehouses and logistics hubs to ensure 72-hour delivery in Tier 1 and Tier 2 industrial clusters.

Deployment of a dedicated Channel Management and CRM platform, integrating order tracking, pricing transparency, and product catalogues for over 500 distributors.

In the institutional segment, DICABS is deepening its partnerships with:

EPC contractors executing RDSS and Green

Corridor projects

Railways and Metros under electrification and underground cabling mandates

Oil & Gas majors, Real Estate developers, and OEMs in energy infrastructure

Export Strategy and Global Presence: Building on our successful exports to South Asian markets (Nepal, Bangladesh, Sri Lanka), DICABS is now expanding into GCC, Africa, and Southeast Asia ?€“ regions with high infrastructure spend and favourable cable import dynamics.

Key initiatives:

Tie-up with ATOM Energy, Abu Dhabi: A strategic EPC player engaged in power and renewable projects across the UAE, Oman, and Saudi Arabia. Through this partnership, DICABS will export EHV, MV, and solar cables under joint branding for large-scale infrastructure and clean energy projects.

Ongoing certifications with GMark (Gulf), BASEC (UK), and UL (US) are in process, aimed at unlocking opportunities with utilities, oil & gas EPCs, and data centres.

Our export revenue is expected to grow at 40?€“50% CAGR over the next 3 years, contributing at least 10% of total cable revenues by FY 2026-27.

Raw Material Outlook: Building Resilience Through Integration: The global prices of aluminium and copper, our key raw materials, are expected to remain volatile due to geopolitical, energy, and demand-supply factors:

Aluminium: Prices are expected to remain stable with minor upside due to increased global smelting capacity and Chinas gradual recovery.

Copper: Structural bullishness may persist owing to its key role in EVs, semiconductors, and green infrastructure. Prices may average higher over FY 2026-30, with an expected CAGR of 3-5%.

DICABS in-house rod manufacturing units (4 rod mills) provide significant strategic insulation from price volatility. This backward integration ensures:

i. Better margins and cost predictability ii. Improved working capital management

iii. Ability to secure large volume orders with long price validity

Strategies and Goals FY 2025-30: DICABS is entering a new growth cycle where the Cables business will become a key growth and value creation engine for the company. Our key goals over the next 5 years include:

Achieve 100% capacity utilisation of new cable lines by FY 2026-27

Double cable revenues by FY 2027-28, with increasing share from EHV, solar, and exports

Establish DICABS as a top 3 Indian cable brand, both in institutional and retail markets

Drive product innovation and ESG-compliant cable development, aligned with global sustainability goals

With a long-term vision, agile execution strategy, and a comprehensive product portfolio, DICABS is committed to becoming a future-ready, globally relevant cables manufacturer. As the power sector transforms, DICABS is not just scaling capacity ?€“ it is building a legacy of trust, innovation, and infrastructure leadership.

Conductors Business

Industry Dynamics and Demand Outlook: Conductors are the backbone of transmission infrastructure and account for the largest material volume in Indias power grid expansion programs. With over 3.5 lakh crore worth of investments planned in Indias transmission and distribution (T&D) sector over the next 5 years, including new lines, reconductoring of ageing assets, and integration of renewable corridors, the domestic conductor market is expected to grow at a CAGR of 10-12%.

Simultaneously, global demand for high-performance conductors is rising in the Middle East, Africa, and Southeast Asia, as countries invest in grid modernisation, energy transition, and cross-border interconnections.

DICABS is well-positioned to capitalise on both replacement and greenfield demand, with a fully integrated manufacturing setup, advanced testing, and a diversified conductor portfolio.

Product Portfolio Expansion and Technological Edge: DICABS manufactures a comprehensive range of conductors ?€“ from conventional ACSR (Aluminium Conductor Steel Reinforced) and AAC/AAAC, to speciality and value-added conductors for complex terrain and high-load corridors. Recognising the evolving industry demand for thermal performance, reduced sag, and lower transmission losses, DICABS is accelerating the shift towards nextgeneration conductors.

In a strategic move to lead the innovation curve, DICABS has partnered with TS Conductor Corp., California, a pioneer in High-Temperature Low-Sag (HTLS) and carbon composite core conductor technology. This partnership aims to bring cutting-edge solutions to the Indian and global markets:

TS Conductor technology allows for 2x power transfer capacity, reduced line sag, and significant life-cycle cost savings ?€“ ideal for reconductoring projects where ROW (Right of Way) is constrained

DICABS will manufacture, market, and deploy TS

Conductors HTLS variants under licence for Indian and Middle Eastern utilities

Pilot projects and trials are underway with select SEBs and private transmission developers

This alliance positions DICABS as a technology leader in advanced conductor solutions at a time when utilities are shifting from volume-based to performancebased specifications.

Capacity Enhancement and Backward Integration: To support increased demand and shift to higher-spec conductors, DICABS is investing in:

Additional high-speed stranding and compacting machines, enhancing our capacity by 25% over the next 18 months

Commissioning of 4 in-house rod mills for aluminium and alloy rod production, ensuring full backward integration and hedging against raw material volatility c) Dedicated lab-scale testing facilities for HTLS, antitheft, and corrosion-resistant conductors

These upgrades will not only improve cost efficiency and margin resilience but also enable DICABS to reduce lead times and secure large-volume, time-critical utility orders.

Market Penetration (Utilities, Railways, EPCs): DICABS continues to strengthen its dominant position in Indias conductor market through:

Long-standing relationships with Power Grid Corporation of India (PGCIL), state transmission utilities (GUVNL, TANGEDCO, MSETCL), and Railways under electrification mandates.

Expansion into private EPC networks for urban T&D, renewable evacuation lines, and Smart City projects.

Bidding for Green Energy Corridor, Inter-State Transmission System (ISTS), and RDSS-based feeder upgrades.

A dedicated key account team and tender support cell have been set up to improve customer responsiveness and order conversion ratios.

Export Strategy and International Projects: As part of its global strategy, DICABS is expanding its conductor exports to emerging and high-opportunity markets:

Established presence in Nepal, Bangladesh, and Sri Lanka, with supply credentials for transmission lines and hydro evacuations

Targeting large-scale supply opportunities in GCC countries, backed by our partnership with ATOM Energy (UAE)

Developing region-specific conductor variants for Africa and Latin America, focussed on long-span performance and theft deterrence

We are currently in the process of securing IEC 61089, ASTM B232, and GCC utility certifications for increased acceptability in global utility tenders.

Raw Material Trends and Strategic Preparedness (Aluminium Market Outlook):

LME aluminium prices are expected to average $2,200?€“ $2,400/tonne in the medium term, supported by global infrastructure spending and green aluminium policies.

Regional premiums in India may stay moderate due to increasing domestic production and capacity expansions by Vedanta, Balco, and Hindalco.

DICABS backwards integration into aluminium rod production , along with strategic sourcing relationships with primary producers, provides:

i. Better cost predictability ii. In-house metallurgical control iii. Competitive positioning in volatile markets

Financial Overview Financial Performance FY 2024-25

( in Lakh)

?€? Goals & Strategies Priorities for FY 2025-30: To consolidate its leadership and capture new-generation demand, DICABS has laid out the following roadmap for its conductor division:

Strategic Priority Target Timeline

Achieve 35% YoY growth in HTLS and By FY27

specialty conductors

Reach 10% export contribution to conductor By FY28 revenues

Commission 2 additional rod mills to enhance By FY26 backward integration

Partner with at least 5 international utilities By FY30 or EPCs for advanced conductors

Become Indias largest privately-held HTLS By FY29 conductor supplier

Particulars Mar-25 Mar-24 YoY change Reason for Variance Total Revenue 1,11,539.25 34,337.10 225% The sharp rise in sales in FY 2025 is primarily due to FY 2024 being our first full year of operations. In FY 2025, we gained stronger market traction, expanded our customer base, and capitalised on opportunities identified in our initial year. Improved market penetration, better understanding of competitive dynamics, and operational scaling contributed significantly to the growth. EBITDA 6,757.08 4,317.86 56% The increase in the ratio is due to a significant increase in sales of the company in the current financial year Profit Before Tax 3,464.94 1,690.37 105% The increase in the ratio is due to a significant increase in sales of the company in the current financial year Profit After Tax 3,473.51 1,702.50 104% The increase in the ratio is due to a significant increase in sales of the company in the current financial year Earnings per Share (EPS) ( ) 0.66 0.32 106%* The increase in the ratio is due to a significant increase in sales of the company in the current financial year *The Board of Directors of Diamond Power Infrastructure Limited has approved the sub-division/Stock Split of existing equity shares of Diamond Power Infrastructure Limited, such that every existing 1(One) equity share of the Company having face value of 10/- (Rupees Ten only) each fully paid up be sub-divided/stock split into 10 (Ten) equity shares of face value of 1/- (Rupee One only) each fully paid up and the members of the Company in the Extraordinary General Meeting held on Friday, November 15, 2024, have also approved the same. The Board of Directors of Diamond Power Infrastructure Limited fixed Tuesday, December 3, 2024, as the Record date for determining the entitlement of Equity Shareholders for issuing equity shares upon sub-division/split. 41

With product innovation at the core, deep integration across the value chain, and global collaborations like TS Conductor, DICABS is set to lead the next era of transformation in the power conductor space. As the world moves toward smarter, greener grids, DICABS aims not just to serve markets, but to shape them, with conductors engineered for the future.

Key Financial Ratios

Particulars	Mar-25	Mar-24
Current Ratio	1.09	1.33
Debt-Equity Ratio	-0.52	-0.47
Inventory Turnover Ratio	6.85	3.65
Debtors Turnover Ratio	9.52	10.51
Interest Coverage Ratio	5.34	6.43
Operating Profit Margin	6.00%	12.36%
Net Profit Margin	3.11%	4.96%

S.W.O.T Analysis

Strengths

Established Market Leadership: The Company benefits from a well-established reputation and strong brand recognition within the Indian power transmission and distribution sector, solidified by its position as Indias largest singlelocation manufacturer of power cables and conductors.

Enduring Legacy and Experienced Leadership: Guided by a highly experienced leadership team, the Company draws upon an 85-year legacy and the accumulated expertise of three generations in the steel wire industry. This deep-rooted industry knowledge provides a significant competitive advantage.

Diversified Customer Portfolio: With a broad customer base exceeding 5,000 clients, no single customer contributes more than 5% of the Companys total revenue, significantly mitigating revenue concentration risk and enhancing market stability.

Enhanced Manufacturing Capabilities: Operations are supported by four existing manufacturing facilities, complemented by a newly established, state-of-theart single-location manufacturing facility in Dadri, India. This new plant is fully operational and poised to become one of Asias largest in terms of capacity, underscoring a commitment to production excellence.

Strategic Technological Alliances: The Company has entered into strategic collaborations, such as its partnership with TS Conductor, USA, a global leader in next-generation conductor technology. This enables the delivery of highperformance, energy-efficient solutions to the power sector.

Proactive Environmental Compliance: The Companys proactive adherence to evolving environmental standards, evidenced by its CBAM Certificate, transforms regulatory pressures into a distinct advantage, ensuring continued market access and competitiveness in regions with stringent environmental regulations.

Domestic Raw Material Access: The presence of key raw materials such as copper and aluminium within India reduces dependence on imports, contributing to supply chain stability.

Alignment with National Initiatives: The Company is wellpositioned to leverage significant government initiatives like "Make in India" and "Digital India," creating substantial business opportunities across the country.

Revitalised Management & Operational Focus: A new management team is actively driving the Company towards high growth, focussing on optimising resource utilisation and significantly boosting capacity, which had remained underutilised. This includes diligent efforts to streamline business activities and a strategic hiring of qualified professionals to execute this vision.

Weaknesses

Intense Market Competition: The Company operates within a highly competitive landscape, facing strong rivalry from both domestic and international players. However, this environment aligns with our core belief to imagine and innovate, driving us to implement advanced solutions and stay ahead of the competition.

Commodity Price Volatility: Exposure to volatile or steeply increasing commodity prices directly impacts the cost of production, potentially leading to diminishing profit margins. Nevertheless, our agile procurement strategies and focus on operational efficiencies enable us to mitigate these impacts and maintain robust performance.

Continuous Technological Investment: While committed to advanced technology, maintaining a leading edge in a rapidly evolving industry necessitates continuous and significant investment in upgrading infrastructure and adopting new innovations.

Opportunities

Growth in Renewable Energy: The increasing global and domestic demand for renewable energy technologies, particularly wind and solar power, presents a significant opportunity given the requirement for power cables in their transmission infrastructure.

Expanding Infrastructure Investment: Sustained government investment in large-scale infrastructure development projects, including smart cities, highways, and railways, continues to drive demand for the Companys products.

Electric Vehicle Market Expansion: The burgeoning electric vehicle market creates a growing demand for charging infrastructure and associated power cables.

International Market Expansion: There is significant potential to expand into new international markets, particularly across Asia and Africa.

Research and Development Incentives: Opportunities exist to capitalise on government incentives designed to encourage investment in research and development, fostering innovation and competitive advantage.

Optimising Wire Rod Sourcing: Market conditions leading to more competitive wire rod pricing present a strategic opportunity for enhanced cost efficiencies, allowing the Company to strengthen its competitive position for its finished steel wire products.

Threats

Aggressive Low-Cost Competition: Increasing competition from low-cost manufacturers, particularly from countries with excess capacity, poses a persistent threat of price pressures and potential loss of competitiveness.

Regulatory and Policy Shifts: Potential changes in government policies, geopolitical situations, and industry regulations could impact the Companys operations and market dynamics.

Technological Disruption: The emergence of alternative forms of energy transmission, such as wireless power transmission, represents a potential long-term technological disruption.

Economic Downturns and Global Crises: Broader economic downturns or global crises could negatively impact overall demand for power cables and related products.

Geopolitical Instability: Geopolitical challenges in various global regions may lead to volatility in commodity and foreign currency markets, potentially affecting raw material availability and costs.

Power Supply Disruptions: Any significant impact on power distribution and electricity delivery can directly affect the demand for electrical products, as stable and quality power supply is crucial for industry growth.

Brand Positioning Challenges: Competitor activities could impact the Companys brand positioning and market share.

Risk and Concern

The Company navigates a dynamic operational landscape, actively addressing key risks to ensure sustained performance. Our new management is dedicated to establishing a comprehensive and defined risk management framework.

Raw Material Price Volatility: Fluctuations in core commodity prices, particularly copper, directly influence production costs, potentially compressing profit margins and impacting international competitiveness.

Rising Logistical Costs: Elevated domestic fuel prices directly increase transportation expenses for wire and cable products, posing a continuous challenge to cost efficiencies.

Market Fragmentation & Quality Standards: A significant portion of the industry remains unorganised, leading to inconsistent product quality due to non-compliance with established guidelines, which can affect overall market dynamics.

Macroeconomic Vulnerability: Global economic shifts could trigger a slowdown in the Indian economy, presenting a short-term risk to industry growth and demand.

Evolving Risk Management Framework: The new management is actively reviewing and enhancing the Companys risk management policy, developing a comprehensive mechanism for risk mapping, trend analysis, exposure assessment, impact evaluation, and mitigation. Formalisation and execution of specific risk identification and monitoring exercises are ongoing.

Human Resources

The Company regards its relationship with employees as fundamental to its future success. We believe that beyond competence, capacity, and capabilities, every employee must embody sustainable, current, and contemporary values. This holistic approach ensures they remain useful, relevant, and competitive, enabling them to constructively manage change for the organisations overall growth.

The Companys efforts are directed towards cultivating a congenial work atmosphere that promotes individual growth, creativity, and dedicated participation in organisational development. Both in-house and external training programmes are provided to employees at all levels, blending technological advancements with highly skilled manpower to achieve a professional and productive culture.

Furthermore, the Company is committed to maintaining strong industrial relations. This is achieved through the active participation of workers, alongside regular meetings and open discussions on all legitimate and legally tenable issues, ensuring a collaborative and harmonious working environment.

Internal Control Systems and their Adequacy

The Company maintains a strong internal control framework, meticulously tailored to its operational scale and complexity. This framework is engineered to proactively manage evolving risk factors, thereby reinforcing a culture of stringent corporate governance.

The Internal Audit plan, sanctioned by the Audit Committee, systematically reviews internal controls and assesses risks across all Company operations. This comprehensive oversight extends to factories, warehouses, and centrally managed business units, ensuring rigorous adherence to established standards and procedures.

Cautionary Statement

The Management Discussion and Analysis may incorporate certain statements deemed forward-looking. These statements

are inherently subject to various risks and uncertainties. Actual results could materially deviate from those expressed, as significant factors such as government policies, local political and economic developments, industrial relations, and risks inherent to the Companys growth may influence operations.

Market data and product analysis presented herein are derived from internal Company reports, alongside industry and research publications. However, their accuracy and completeness cannot be guaranteed, nor can their absolute reliability be assured.