Anmol India Ltd Management Discussions

Economic Overview

The global economy in FY 2024-25 faced a mixed outlook, shaped by continued geopolitical tensions, inflationary pressures, and varying monetary policy responses across countries. While advanced economies experienced moderated growth due to high interest rates and subdued consumer spending, emerging markets, particularly in Asia, showed resilience supported by domestic demand and policy support.

India remained one of the fastest-growing major economies during the year, with GDP growth estimated at 6.8% (as per government and RBI estimates). The growth was primarily driven by strong performance in the manufacturing and services sectors, robust infrastructure investments, and stable private consumption. The governments focus on capital expenditure, energy security, and industrial self-reliance through initiatives such as Atmanirbhar Bharat, PLI schemes, and energy transition programs further supported macroeconomic stability.

Inflation, while elevated in the first half of the fiscal, moderated gradually due to monetary tightening by the Reserve Bank of India (RBI) and easing supply chain constraints. The average Consumer Price Index (CPI) inflation was within the RBI?s tolerance band by year-end, while the rupee remained relatively stable against major currencies.

For the coal and energy sector, Indias sustained economic expansion translated into higher power demand, increased industrial activity, and continued reliance on coal as a primary energy source. Despite the long-term global shift toward renewables, coal maintained its strategic relevance in the Indian energy mix, particularly for baseload power generation and heavy industries like steel and cement.

Going forward, Indias macroeconomic fundamentals remain strong, with a positive investment climate, improving ease of doing business, and a strong push toward infrastructure and energy development. However, global uncertainties, supply chain risks, and the ongoing energy transition will continue to influence sectoral dynamics.

Indian Coal Industry Overview

Despite increasing emphasis on renewable energy, coal remains a dominant source for power generation and industrial fuel. In FY 2024-25, the coal industry witnessed moderate growth, driven by steady demand from the power and steel sectors. However, environmental concerns, regulatory challenges, and logistical constraints continue to impact operations across the value chain.

Globally, coal consumption remained under pressure due to clean energy transitions and decarbonization efforts. In contrast, India saw relatively stable demand as the economy continued its recovery post- COVID, with increased industrial activity and energy requirements. The Government of India?s push for coal gasification and commercialization of coal blocks under the new auction regime is expected to drive long-term efficiency and investment.

1. Industry Snapshot

• India is the second-largest producer and consumer of coal in the world, after China.

• Coal continues to be the backbone of Indias energy mix, accounting for around 55-60% of total power generation.

• The industry supports key sectors including power, steel, cement, fertilizers, and industrial heating.

• Despite Indias focus on renewable energy, coal demand remains resilient due to increasing power needs and industrial growth.

2. Coal Market Trends

Production

• India?s coal production reached a record-high of 998 million tonnes in FY 2023-24, an approximate 12% increase from the prior year.

• In the subsequent fiscal 2024-25, sustained momentum continued as private and captive coal mining expanded—propelling production past the 1 billion tonne milestone.

• The IEA projects continued growth, with India being one of few large producers expected to increase output into 2026 despite soft global demand

Consumption

• Domestic consumption stood at around 906 million tonnes in 2020-21, with the utility sector consuming over 64% of that total

• Electricity generation from coal surged through 2023-24, though thermal power consumption began declining in early 2025 due to a monsoon-related moderation of demand and a rapid ramp- up in renewables and hydro generation

• In H1 of 2025, overall coal power generation dropped 2.1% year-on-year, even as industrial coal use (notably steel sector) rose by an estimated 6%

Imports

• Total coal imports in FY 2024-25 declined by approximately 8% to 169 million tonnes, compared to FY 2023-24, saving India nearly US $7.9 billion in foreign exchange

• India remains the world?s second-largest coal importer, with imported volumes historically accounting for 20-26% of consumption—driven by needs for high-grade thermal and coking coal for power, steel, and cement industries

• Major suppliers include Australia, South Africa, Indonesia, and increasingly Russia, especially for coking coal. Indias steel sector has begun shifting imports toward Russian coking coal, leveraging cost discounts and rupee-based payments

3. Sectoral Demand Drivers

• Power Sector: Coal-fired power plants accounted for over 70% of Indias electricity generation. In periods of high demand (e.g., summer and post-monsoon), coal supplied up to 77% of total grid power.

• Steel & Cement: Continued infrastructure development under public schemes like Gati Shakti and PM Gati Shakti Master Plan boosted demand for coking and non-coking coal.

• Industrial Use: Non-power industries such as bricks, chemicals, and paper also contributed to steady demand.

4. Policy & Regulatory Developments

• Commercial Coal Mining: The auction of coal blocks under the commercial mining regime continued, with increased participation from private players and foreign investors.

• Coal Gasification & Liquefaction: The Ministry of Coal accelerated projects on Underground Coal Gasification (UCG) and coal-to-synthetic fuels to support energy transition goals.

• Sustainable Mining Practices: Enhanced focus on land reclamation, OB (overburden) management, dust control measures, and afforestation in coal-bearing regions.

5. Logistics & Infrastructure

• Rail Connectivity: Indian Railways prioritized coal rake availability, reducing transportation bottlenecks.

• Pit-head Plants: Growth in pit-head thermal plants helped improve efficiency and lower transportation costs.

• Digital Initiatives: Deployment of real-time coal tracking systems and mine automation improved supply chain visibility.

6. Outlook for FY 2025-26

• The Indian coal market is expected to maintain steady momentum, with production likely to surpass 1.1 billion MT.

• Government support for clean coal technologies, including coal beneficiation, gasification, and carbon capture, will shape future investment priorities.

• Despite the global energy transition, coal is expected to remain a dominant energy source for India in the medium term, underpinned by its affordability, availability, and integration with power infrastructure.

Conclusion

Coal will continue to be a pillar of India?s energy and industrial strategy in the near future. While the sector embraces innovation and sustainability, it remains instrumental in securing energy access and driving economic growth.

Business Overview

Anmol India Limited is one of Indias leading importers and suppliers of coal, offering a comprehensive, end-to-end solution for diverse coal requirements. Over the years, the Company has established a strong reputation in coal import, commodity trading, and supply chain management, demonstrating consistent and robust growth since its inception.

Operating across over 100 locations nationwide, Anmol has built enduring relationships with clients through reliable services and a customer-centric approach. The company has recently undergone a strategic transformation, adopting an integrated and optimized end-to-end supply chain model tailored to the evolving needs of the commodity trade sector.

This holistic approach encompasses a wide array of services, supported by advanced research capabilities and a refined global sourcing strategy. Anmol has significantly strengthened its operational framework by streamlining key functions such as sea freight coordination, cargo handling, insurance management, fund allocation, inland logistics, and last-mile delivery.

These enhancements form a vital part of its ongoing expansion strategy, designed to build a more agile, efficient, and resilient system. As part of its forward-looking vision, the company is pursuing strategic diversification — both in its product portfolio and geographic presence
51; to drive growth, enhance adaptability, and strengthen its market position.

Listed on both the BSE and NSE, Anmol India Limited is deeply committed to delivering sustainable longterm value to its shareholders. The company adheres to transparent, ethical business practices and upholds the highest standards of corporate governance in all its operations.

Strengths and Opportunities

- Strong Distribution Network- over the years the Company has built a reliable distribution network that can reach majority of its potential market.

- Coal remains one of the cheapest sources of energy, especially in developing economies where affordability outweighs environmental concerns.

- Availability and trading of high-grade coal (thermal and metallurgical) gives competitive edge in the markets.

- Use of digital platforms and analytics to optimize sourcing, pricing, and logistics can reduce costs and increase efficiency.

- Rising power demand and industrial consumption.

- Government initiatives promoting coal gasification and clean coal technologies.

- Increasing private sector participation under the commercial mining regime.

- Quality tested products from reputed independent agencies (like SGS, HRT etc)

- As small scale manufacturing units is increasing, the market size is ever increasing.

- As imported coal is washed and cheaper, more and more industries are shifting to this fuel.

Internal Control Systems and their adequacy

Anmol India Ltd believes that internal control is one of the key pillars of governance. It provides freedom to the management within a structure of appropriate checks and balances. The Company has a proper and adequate system of internal financial controls, commensurate with its size and business operation. It ensures timely and accurate financial reporting in accordance with applicable accounting standards, safeguarding of assets against unauthorized use or disposition and compliance with all applicable regulatory laws and Company policies. Internal Auditors of the Company review the internal financial control systems on a regular basis for its effectiveness, and necessary changes and suggestions are duly incorporated into the system.

The Company?s internal control environment warrants efficient conduct of operations, security of assets, prevention and detection of frauds/ errors, accuracy and completeness of accounting records, and the timely preparation of reliable financial information.

Financial Performance Overview

During the financial year 2024-25, the Company navigated a dynamic market environment marked by input cost pressures and pricing volatility. Total income for the year stood at ?1,284.05 crores, compared to ?1,514.27 crores in FY 2023-24, representing a decline of 15.20%. The reduction in income is primarily attributable to lower offtake volumes and softened coal prices in certain segments.

Net profit after tax declined significantly by 66.55% to ?6.99 crores, as against ?20.90 crores in the previous year, primarily due to increased operational costs, lower margins, and higher provisioning for environmental compliance.

Weaknesses and Threats

- Volatility in coal prices and global commodity trends.

- Environmental and regulatory risks, especially relating to emissions and land acquisition.

- Challenges in logistics and availability of railway rakes.

- Long-term demand uncertainty due to the global shift toward renewables.

- Political instability in coal-exporting nations and shipping/logistics issues can disrupt supply

- Heavy reliance on specific sectors (e.g., power and steel) makes the industry vulnerable to sector- specific slowdowns.

- Constant policy changes can disrupt trade and affect profitability.

Human Resources

The Company considers its human capital to be the most important asset and treats its people with respect and dignity in all situations. The team is a balanced mix of experience and youth which allows a holistic approach to varied situations. Employee knowledge enrichment is a core value of the organization, and focus has been placed on training and development of the Companys human capital. Our endeavour is to provide a work environment where continuous learning and development takes place to meet the changing demands and priorities of the business. The Company offers employee-friendly policies, industry benchmarked compensation, learning and career growth opportunities, and empathetic health and safety initiatives so that employees feel motivated to perform at their best.

Key Financial Ratios

Cautionary Statements

This Management Discussion & Analysis report makes forward looking statements based on certain assumptions and expectations of future events over which Anmol India Limited exercises no control. Anmol India Limited cannot guarantee their accuracy nor can it warrant that the same will be realized. Actual results could differ materially from those expressed or implies. There are various macroeconomic which could impact the operations of Anmol India Limited.