Amic Forging Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENT

Forging sector is considered as the backbone of manufacturing industry. Forging process can create parts that are stronger than those manufactured by any other metal forming process. It is a major input to the sectors which support economic growth of the nation such as automobile, general engineering, agriculture, aerospace, power, construction & mining equipment, and railways.

The industry is characterized by fragmented capacities, with a large number of small and medium-sized units. Forging units are concentrated in specific regions, with major clusters in Western (Maharashtra, Gujarat), Northern (Punjab, Haryana, Delhi), Southern (Tamil Nadu, Karnataka, Andhra Pradesh), and Eastern (Jharkhand, West Bengal) regions. The organized sector dominates the closed die forging segment, while the unorganized sector has a strong presence in open die forging. The industry comprises a mix of different sized units, with SMEs making up the majority.

The forging industry in 2024-2025 has experienced robust growth, driven by increased demand from key sectors like automotive and aerospace, and technological advancements. The market is also seeing a shift towards advanced manufacturing technologies, including automation and precision forging, to enhance efficiency and productivity. With the adoption of advanced technologies to improve production efficiency, precision, and product quality, the Indian casting and forging industry is witnessing very large-scale changes. Technologies, such as 3D printing, automation, and artificial intelligence (AI) are increasingly being used to decrease inefficiencies in manufacturing processes.

The Indian forging industry is experiencing significant growth, driven by expansion in the automotive and construction sectors, and the increasing demand for precision-engineered components. The automotive sectors robust expansion fuels demand for forged components like crankshafts, axles, and gears. Infrastructure development projects, including smart cities and transportation networks, create sustained demand for high-quality forged components. Government initiatives such as "Make in India" and production-linked incentives (PLI) are boosting domestic manufacturing and exports. The industry is adopting advanced forging technologies like automation and precision forging.

OPPORTUNITIES AND THREATS Opportunity

The forging industry offers several opportunities due to its vital role in various sectors like automotive, aerospace, construction, agriculture, and energy. With increasing concerns about global supply chains and a shift toward localized production, there is an opportunity for domestic forging companies to capture business from customers looking to reduce their reliance on imports, particularly in critical industries. Investing in innovation, efficiency, and expansion into new sectors or markets can help companies in the forging industry capitalize on these opportunities.

Threats, Risk and Concern

• Competition: The forging industry is competitive, requiring strategic agility to maintain market share.

• Capital-Intensive Nature

Forging requires significant capital investment in machinery and technology, which can be a barrier for smaller players and new entrants • Skilled Labor Shortage The availability of a skilled workforce is crucial for maintaining quality and efficiency.. • Raw Material Volatility: Fluctuations in the price of raw materials such as steel can significantly affect the profitability of forging companies, especially for those operating with low margins.

FUTURE OUTLOOK

The forging industry is expected to continue evolving, with a focus on innovation, digital transformation, and sustainability. AMIC Forging aims to leverage its strengths and the growing market to achieve sustained growth. The company plans to capitalize on opportunities in expanding sectors like automotive, aerospace, and defense. Continued investments in backward integration and capacity expansion will enhance operational efficiency. The company will focus on attracting and retaining skilled labour to meet the industrys evolving demands. AMIC Forging will implement strategies to mitigate risks and address challenges effectively.

SEGMENT WISE PERFORMANCE

The Company (AMIC) does not have multiple segments. Hence, comments on segments wise performance are not required.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The details have been provided in Boards Report.

RATIO ANALYSIS

Following are ratios for the current financial year and their comparison with preceding financial year along with explanations:

Sl No	Ratio	2025	2024	% Changes	Explanation if the change is more than 25%
1	Debtor Turnover	4.29	4.96	-13.50%	NA
2	Inventory Turnover	14.79	37.25	-60.31	Due in increase in Closing inventory
3	Interest Coverage Ratio	118.58	36.47	225.1	Due to repayment of borrowings and increase in profit
4	Current Ratio	2.64	1.97	33.45%	Due to increase in current assets and decrease in current liabilities
5	Debt Equity Ratio	NA	0.06	NA	NA
6	Operating Profit Margin (%)	37.78	15.16	149.20%	Due to increase in EBITDA
7	Net Profit Margin (%)	29.31	10.96	167.43%	Due to significant increase in profit after rax
8	Return on Net Worth (%)	35.48	21.42	65.64%	Due to increase of profit after tax and reserve and surplus

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company remains committed to maintain, high standards of internal control designed to provide adequate assurance on the efficiency of operations and security of its assets. The adequate and effectiveness of the internal control across various activities, as well as compliance with laid down system and policies are comprehensively and frequently monitoring by your companies management at all levels of organization.

HUMAN RESOURCE

We firmly believe that our employees are pivotal to our success and growth. Our human resources strategy is designed to attract, retain, and nurture the best talent, ensuring that each individual contributes effectively to our business objectives. Our workforce includes Experienced Professionals, Skilled Workers, Semi-Skilled and Unskilled Workers.

CAUTIONARY STATEMENT

The statements in the report of the Board of Directors and the Managements Discussion and Analysis Report describing the Companys projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable Securities Laws and Regulations.

Actual results could differ materially from those expressed or implied since the Companys operations are dependent on many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly modify or revise any forward looking statements on the basis of any future events or new information. Actual results may differ from those mentioned in the report.

For and on behalf of the Board of Directors	Girdhari Lal Chamaria	Anshul Chamaria
AMIC Forging Limited	Managing Director	Director
Date: 23rd August, 2025	DIN: 00513552	DIN: 06586643
Place: Kolkata