Ameya Precision Engineers Ltd Management Discussions

The Management Discussion and Analysis (MD&A) outlines the key industry trends, opportunities, challenges, and strategic direction of the Company. It provides insights into the Companys operational performance and long-term vision of evolving into a market-driven engineering solutions provider with diverse offerings. Despite increased competition and global uncertainties, the Company remains optimistic about capturing a greater share in both domestic and international markets through strategic initiatives, innovation, and customer-centric growth.

INTRODUCTION

This section of the Annual Report contains forward-looking statements based on managements current expectations, estimates, and projections. These statements involve risks and uncertainties and are subject to change due to various external and internal factors. Actual results may differ materially from those expressed or implied herein. The MD&A should be read in conjunction with the Companys financial statements and accompanying notes.

OUTLOOK AND STRATEGIC INITIATIVES FOR THE UPCOMING FISCAL YEAR

The Companys strategic focus for the upcoming year is to continue its trajectory of sustainable topline growth through increased value addition, market expansion, and integration of advanced capabilities. Key focus areas include:

1. Customer Acquisition

Objective: Expand the Companys customer base by leveraging its reputation as a trusted supplier of precision engineering components.

Strategy:

• Demonstrate Proven Expertise: Market the Companys strong track record through case studies, testimonials, and performance metrics to build credibility with potential clients.

• Targeted Outreach: Participate in trade shows, industry forums, and execute focused marketing campaigns to identify and engage new customers.

• Sales Team Enhancement: Strengthen the business development function through expanded sales and marketing teams, tailored value propositions, and industry-specific outreach.

2. Strengthening Customer Relationships

Objective: Deepen relationships with existing clients to uncover new growth opportunities and enhance customer loyalty.

Strategy:

Engagement Programs: Regular account reviews, personalized communication, and feedback mechanisms to anticipate customer needs.

Value-Added Solutions: Offer tailored products or services that directly address client challenges, enhancing satisfaction and retention.

Loyalty and Supply Agreements: Explore structured stocking arrangements and loyalty-based

programs to secure long-term collaborations.

3. Leveraging Developed Capabilities

Objective: Maximize the potential of technological advancements and process upgrades.

Strategy: New Market Penetration: Identify and target untapped sectors or geographies where the Companys expertise can provide competitive advantage.

Enhanced Product Offering: Continuously refine offerings to align with evolving customer expectations, including cost-efficiency and quality improvements.

Strategic Collaborations: Pursue partnerships or joint ventures that amplify the impact of developed capabilities and open new business avenues.

4. Focus on Research and Development (R&D)

Objective: Innovate and diversify offerings to remain competitive and meet emerging market demands.

Strategy:

Technology Integration: Invest in emerging technologies aligned with industry trends, including automation and digital solutions.

R&D Focus: Strengthen R&D efforts to explore new product lines and advanced manufacturing techniques.

Skill Development: Train employees to effectively implement and operate new technologies and innovations.

OVERALL IMPACT

By implementing the above strategies, the Company aims not only to grow its top line but also to enhance profitability and operational efficiency. The synergistic effect of acquiring new customers, deepening client relationships, optimizing capabilities, and embracing innovation will lead to a more dynamic, resilient, and competitive business model.

APPRECIATION AND ACKNOWLEDGEMENTS

Our journey has always been shaped by the trust and challenges presented by our valued customers, who continue to motivate us to innovate and maintain the highest standards in precision engineering. We thank them for their continued partnership.

We also extend our heartfelt appreciation to our dedicated team, whose belief in our vision and efforts to build the right organizational culture have been instrumental in driving transformation and growth. Special thanks are due to the Board of Directors for their consistent support, strategic insights, and valuable suggestions that have helped strengthen governance and management practices.

The Board remains confident in the future prospects of Ameya Precision Engineers Limited. With a clear focus on expanding our customer base and enhancing production capacity, we are well- positioned to scale new heights in the years ahead.

Segment-Wise or Product-Wise Performance

Revenue Distribution by Sector (%)

Valve Pump Defence Equipment Others

During the year, the Company recorded a total turnover of Rs. 39.08 crore, with the Valve segment emerging as the largest revenue driver at Rs. 26.53 crore, representing a dominant share of the overall business. The Pump segment contributed Rs. 9.38 crore, reaffirming its position as the second- largest contributor to the Companys portfolio. The Defence segment generated Rs. 1.28 crore, while Others accounted for Rs. 1.89 crore, reflecting niche but strategic market opportunities. This revenue composition highlights the Companys strong market leadership in the Valve segment, supported by steady performance in Pumps and a growing footprint in specialized sectors such as Defence. The balanced diversification across sectors positions the Company to leverage cross-segment synergies and tap into emerging demand in both core and allied markets.

INFRASTRUCTURE AND QUALITY STANDARDS

Ameya Precision Engineers Limited is equipped with state-of-the-art machinery, advanced tools, skilled manpower, material handling systems, and a range of in-house facilities to ensure smooth operations and consistent delivery of high-quality products. The Company has established a robust infrastructure base, which is regularly upgraded to align with the latest technological advancements and evolving industry standards.

Given that a significant portion of our clientele comprises international customers, the Company is committed to adhering to global quality standards and maintaining compliance across all production areas, including machinery, product markings, and operational processes. Regular audits and assessments form an integral part of our quality assurance system to ensure these standards are upheld.

Ameya Precision Engineers Limited is an ISO 9001:2015 certified company and continues to pursue additional external certifications to further enhance its credibility, customer trust, and global competitiveness. The Company remains steadfast in its commitment to excellence, customer satisfaction, and continuous improvement.

ZED Certification:

The Company is proud to share that it has been awarded the "ZED Certification" by the Ministry of Micro, Small and Medium Enterprises under the MSME Sustainable (ZED) Certification Scheme. This recognition reflects the Companys commitment towards quality, environmental responsibility, and sustainable business practices. The certification underscores our continuous efforts to enhance operational efficiency, reduce environmental impact, and adopt best-in-class manufacturing and management standards in line with national sustainability objectives.

Cautionary Statement

Statements made in the Management Discussion and Analysis and elsewhere in this Annual Report describing the Companys objectives, projections, estimates, expectations, or predictions may be considered forward-looking statements. These statements are based on certain assumptions and expectations of future events and are subject to various known and unknown risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied in such statements.

Factors that could significantly influence the Companys operations include, but are not limited to, economic and political developments in India and other countries, including geopolitical tensions such as the Russia-Ukraine conflict and the ongoing instability in the Middle East. These situations may affect the Companys finances, customer order bookings, and overall global demand environment.

In addition, foreign exchange rate fluctuations continue to impact product pricing and competitiveness in international markets. Extended lead times due to global supply chain disruptions also pose challenges in timely delivery and execution. Other risks include interest rate volatility, changes in government policies and regulations, amendments to tax laws, and other incidental or unforeseen factors.

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.

By Order of the Board of Directors Ameya Precision Engineers Limited

Sd/- Bipin Shirish Pande Managing Director DIN:06442748 Date: 19.08.2025 Place: Pune

Sd/- Shirish Madhukar Pande Director and CFO DIN:01855632

Sd/- Chaitanya Date Company Secretary A58626

The Audit Committee has accorded an omnibus approval for the related party transactions for the F.Y. 2024-25.

By Order of the Board of Directors Ameya Precision Engineers Limited

Sd/- Bipin Shirish Pande Managing Director DIN:06442748	Sd/- Shirish Madhukar Pande Director and CFO DIN:01855632	Sd/- Chaitanya Date Company Secretary A58626
Date: 19.08.2025 Place: Pune