APM Industries Ltd Management Discussions

[Schedule V-Regulation 34(3) of SEBI (LODR) Regulations, 2015]

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias textile sector is one of the oldest and most significant industries in the countrys economy, with a history spanning several centuries. It plays a crucial role in both domestic economic development and international trade. The industry encompasses a broad spectrum of activities, ranging from traditional handloom weaving to state-of-the-art textile manufacturing units.

India has established itself as a prominent global manufacturing hub for textiles and apparel, owing to its rich textile heritage, skilled workforce, and competitive labour costs. The country ranks as the sixth-largest exporter of textiles, covering a wide range of segments including apparel, home textiles, and technical textiles.

India is recognized as the second-largest producer of man-made fibre (MMF) globally, after China. It is also among the worlds largest producers and exporters of cotton and jute. Major export destinations include the United States, European Union, United Kingdom, and the Middle East, which together account for nearly half of Indias total textile and apparel exports.

Furthermore, the sector is a major employment generator, being the second-largest employer in the country. It provides direct employment to around 45 million people and indirect employment to an additional 100 million in allied sectors such as agriculture, transportation, and retail.

With growing global demand, increased penetration of organized retail, rising disposable incomes, and government initiatives such as the Production Linked Incentive (PLI) scheme, PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, and the National Technical Textiles Mission (NTTM), the Indian textile sector is well-positioned to scale new heights in the years ahead.

2. OPPORTUNITIES & THREATS

The Indian economy continues to show resilience amid global uncertainties. Despite significant challenges in the global environment, India remained one of the fastest-growing economies in the world. The overall economic growth remained robust, estimated at 6.5% for the financial year 2024-25. For financial year 2025-26, Indias GDP is projected to grow between 6.3% and 6.8%. India is poised to become the fourth-largest global economy in 2025, driven by progressive domestic reforms, industrial modernization, and enhanced global positioning under the vision of Aatma Nirbhar Bharat.

The Indian textile and apparel industry stand to benefit significantly from these positive macroeconomic trends. Several growth opportunities exist in both domestic and international markets. Rising global demand for Indian textiles, especially from developed economies such as the United States, European Union, and the United Kingdom, presents a promising outlook for exports. Indias reputation for quality, skilled craftsmanship, and competitive labour costs continues to strengthen its position as a global sourcing hub.

Government initiatives such as the PLI Scheme, the establishment of PM MITRA Parks, and the NTTM are expected to boost investment, innovation, and capacity building across the textile value chain. Additionally, the growing demand for technical textiles across industries such as healthcare, automotive, defense, and agriculture is opening up high-margin, value-added opportunities. The expansion of the domestic market, supported by increasing disposable incomes, rapid urbanization, and changing fashion preferences, further adds to the sectors long-term potential. The rise of e-commerce and digital retailing is also providing new avenues for textile manufacturers and brands to directly reach consumers.

However, the industry faces several threats that could impact its performance. Volatility in the prices of raw materials such as cotton, polyester, and dyes poses a challenge to cost management and profitability. Global economic slowdowns, trade policy shifts, and geopolitical tensions could dampen export momentum. The sector also faces stiff competition from low-cost manufacturing countries like Bangladesh, Vietnam, and Turkey, which are aggressively expanding their global footprint. Furthermore, meeting the increasingly stringent environmental, social, and governance (ESG) standards of international buyers requires significant compliance infrastructure, especially for smaller players. Labour shortages, skill mismatches, and infrastructure bottlenecks continue to be areas of concern that may limit operational efficiency. Geopolitical tension and on- going conflicts are disrupting the export markets and affecting the overall demand for textile products.

Overall, while the Indian textile industry is well-positioned to leverage domestic and global growth opportunities, it must remain agile, innovative, and compliant to effectively navigate the challenges ahead.

3. SEGMENT-WISE PERFORMANCE

The Company currently operates in a single business segment, namely the manufacturing of synthetic blended yarn. Accordingly, segment-wise or product-wise performance is not applicable. Further, the Company does not have any operations outside India. Hence, no geographical segment has been identified.

4. OUTLOOK

The outlook for the Indian textile industry remains positive and promising, supported by favorable domestic and global economic indicators. Indias strategic position as a major player in the global textile value chain, along with robust domestic demand, provides a solid foundation for long-term growth. Increasing globalization and the strengthening of cross-border trade partnerships, including Free Trade Agreements (FTAs) with key markets such as the European Union, Australia, and the United Arab Emirates, are expected to enhance market access and export competitiveness.

Rising per capita incomes, both in India and globally, are contributing to sustained demand for textiles and apparel. This is further bolstered by shifting consumer preferences towards fast fashion, affordable luxury, and sustainable clothing, creating new growth avenues for Indian manufacturers. Indian textile companies are well-positioned to respond to these trends by leveraging traditional craftsmanship, expanding eco-friendly product lines, and adopting sustainable production practices.

Specifically, the Indian yarn market is projected to grow at a CAGR of 3-4% between financial year 2024 and financial year 2028, driven by steady domestic demand, improving discretionary spending, and the anticipated revival of textile imports in developed markets.

While external challenges such as geopolitical tensions, raw material price volatility, and global inflationary pressures persist, the Indian textile industry is expected to remain resilient. With strategic focus on innovation, value addition, sustainability, and market diversification, the industry is well-equipped to navigate uncertainties and capitalize on emerging opportunities in the years ahead.

5. RISKS & CONCERNS

While the Company remains optimistic about future growth, it continues to face certain risks and challenges that could impact its operations and financial performance. Volatility in raw material prices, particularly synthetic fibres linked to crude oil, remains a key concern. Regulatory changes, compliance obligations, and evolving environmental norms may affect operations and costs. Export-related risks, including geopolitical tensions and currency fluctuations, could influence international demand. Intense competition from low-cost producing countries also poses a threat to market share. Additionally, as a labour-intensive industry, challenges in workforce availability and operational efficiency may arise. The Company remains vigilant and is taking proactive steps to mitigate these risks through improved cost management, compliance monitoring, and operational safeguards.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place an adequate internal control system, supported by a well-defined organizational structure and clearly laid-out policies and procedures to ensure efficient conduct of its business operations. These internal controls are designed to provide reasonable assurance regarding the reliability of financial reporting, compliance with applicable laws and regulations, and safeguarding of assets from unauthorized use or loss.

The Company regularly monitors and evaluates the effectiveness of these internal controls through periodic reviews and audits. The management conducts periodic reviews of actual performance against approved budgets to ensure proper allocation and utilization of resources. All transactions are duly authorized, accurately recorded, and appropriately reported, ensuring transparency and accountability.

An Audit Committee, comprising independent directors, has been constituted by the Board. The composition and responsibilities of the Audit Committee are detailed in the Corporate Governance Report forming part of the Annual Report. The Company also engages independent Statutory Auditors and Internal Auditors, who carry out periodic audits and submit their findings and recommendations to the management and the Audit Committee. All significant observations and suggestions made by the auditors are duly reviewed, and appropriate corrective actions are implemented to enhance the internal control framework.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance for the year 2024-25 remained under pressure due to elevated global inflation, tightening of interest rates, and withdrawal of excess liquidity, which collectively impacted overall demand and market sentiment.

		(Rs. in Lakhs)
Particulars	Year Ended March 31, 2025	Year Ended March 31, 2024
Revenue from Operations	29,400	29,985
Total Revenue	29,531	30,132
Profit/(Loss) Before Tax	(364)	392
Profit/(Loss) After Tax	(61)	417

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. There has been no change in the accounting treatment followed by the Company during the year.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company strongly believes that its human resources are a key driver of organizational growth and long-term sustainability. It is committed to nurturing talent, fostering a culture of trust, inclusivity, and continuous learning. The Company recognizes that a motivated and engaged workforce is essential to achieving operational excellence and strategic goals. In line with this, initiatives are undertaken to promote professional development, leadership building, and skills enhancement across all levels of the organization. Employees are regarded as the most valuable asset of the Company, and every effort is made to provide a safe, healthy, and conducive working environment. The well-being of employees, including their physical and mental health, is a top priority. Work-life balance, safety protocols, and employee welfare measures are consistently monitored and strengthened.

Industrial relations during the year remained cordial and stable. There were no instances of industrial disputes, and the Company maintained constructive relationships with its employees and workforce. Management continues to engage in regular dialogue with employees to address concerns and ensure a collaborative working environment. The Company does not foresee any material issues on the industrial relations front in the foreseeable future.

As on March 31, 2025, the total number of employees stood at 1,742.

9. LONG TERM AND SHORT TERM STRATEGY OF COMPANY

Water Conservation

The Company has consistently prioritized water conservation as part of its long-term sustainability strategy. In alignment with the Jal Swavlamban Abhiyan of the Government of Rajasthan, the Company has implemented rainwater harvesting systems to preserve water and improve the groundwater table in and around its manufacturing facilities. Specifically, six mini ponds have been constructed outside the mill area for effective rainwater collection.

In addition, during the financial year 2020-21, the Company developed eight new groundwater recharge wells across four ponds in two villages of Tehsil Tijara (District Khairthal-Tijara), Rajasthan, to support local water recharge initiatives and enhance long-term water availability in the region.

Waste Water Utilization

The Company is committed to the efficient and responsible use of water resources. All effluents discharged from the dyeing operations are treated through an advanced effluent treatment plant (ETP), including condensate from the Multi-Effect Evaporator (MEE), and are subsequently reused in the process. Furthermore, 100% of the treated water from the Sewage Treatment Plant (STP) is also recycled and utilized in operations.

To enhance energy and water efficiency, an innovative Plate Heat Exchanger has been installed to recover heat from treated effluent water. This has resulted in significant savings in steam consumption, thereby reducing overall fuel usage and boiler feed water requirements. The STP was also upgraded in financial year 2021-22 to increase treated water recovery for reuse.

Renewable Energy

We believe that investment in renewal energy moderates the carbon footprint, reduces energy costs, enhances power security and provides a long term insurance against an increase in power cost. The Company had invested Rs. 415 lakhs to commission roof top solar energy panels of 1.0 MW in 2017-18 with a payback period of around 5 years. The Company had also invested Rs. 616 lakhs to commission ground mounted/ rooftop solar energy panels of 1.722 MW in 2019-20 with a payback period of around 4 years. The proactive investments moderated the Companys carbon foot print and power cost.

These activities towards energy conservation reduced energy consumption by 32.49 lakhs units in the financial year 2024-25.

10. KEY FINANCIAL RATIOS

The mentioned below are the key financial ratios of the Company with reasons for significant changes in the financial ratios which are 25% or more as compared to the previous year: -

Financial Ratios FY 2024-25 FY 2023-24 Change in % Reason for Change

25% or more as compared to the previous year: -
Financial Ratios	FY 2024-25	FY 2023-24	Change in %	Reason for Change
Debtors Turnover Ratio	32.53	25.65	26.82	Due to decrease in Trade receivables
Inventory Turnover Ratio	6.27	5.48	14.42	-
Interest Coverage Ratio	(1.49)	2.74	(154.38)	Due to decrease in profit before interest during the year.
Current Ratio	2.08	1.90	9.47	-
Debt Equity Ratio	0.04	0.17	(76.47)	Due to decrease in Debt.
Operation Profit Margin (%)	(1.19)	1.57	(175.80)	Due to decrease in operating profit.
Net Profit Margin (%)	(0.21)	1.39	(115.11)	Due to decrease in gross profit margin during the year.
Return on Net Worth (%)	(0.31)	2.58	(112.02)	Due to decrease in profit.

11. CAUTIONARY STATEMENT

The Management Discussion and Analysis Report containing your Companys objectives, projections, estimates and expectations, which are forward looking within the meaning of applicable laws and regulations. The statements in this Management Discussion and Analysis Report could differ materially from those expressed or implied elsewhere. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in governmental regulations, tax regimes, economic developments within India and other incidental factors.

For and on behalf of the Board

	For and on behalf of the Board
	Rajendra Kumar Rajgarhia
Place: New Delhi	Chairman and Whole time Director
Date: July 31, 2025	DIN: 00141766