Ashiana Ispat Ltd Management Discussions

1. Industry Structure and Developments

The Indian steel industry continues to be one of the core sectors contributing significantly to the nations economic development, infrastructure growth and industrialisation. Demand for long steel products such as TMT bars is largely driven by government investments in real estate, smart cities, housing for all, transport corridors, commercial infrastructure and private construction activities.

During FY 2024 25, the industry witnessed volatility in raw material prices, delays in construction activity during monsoon period and an overall slowdown in liquidity across the steel value chain. High financing costs and subdued market sentiment impacted capacity utilization levels across medium-sized steel manufacturing units. Competition from regional players with aggressive pricing strategies further increased pressure on margins.

Despite temporary challenges, the long term outlook for the TMT industry remains positive due to the continued government push toward infrastructure development and the growth of the real estate sector.

2. Business Overview

Ashiana Ispat Limited is engaged in the manufacturing and marketing of TMT steel bars under the brand gAL Kamdhenuh , catering to domestic demand from construction, infrastructure and industrial sectors. The Company has built strong brand visibility and distribution presence in its operating region.

During the year under review, operational disruptions, raw material procurement challenges and financial constraints severely impacted production volumes. This resulted in a substantial decline in turnover and profitability. The Company is focused on restoring normal operations through business realignment, financial restructuring, and improved cost strategies.

3. Financial Performance Review

The standalone financial performance for FY 2024 25 was significantly affected by operational shutdown and cash flow stress. Key financial indicators are summarised below:

Particulars	Rs. in lakhs	Rs. in lakhs
	2023-24	2024-25
Revenue from operations	32,183.60	14,153.53
Other Income	263.27	444.33
Total Revenue	32,446.87	14,597.86
Profit/(loss) before taxes	200.11	(5,114.08)
Total Revenue Expenditure	32,246.76	16,223.06
Profit/(Loss) before exceptional items	200.10	(1,625.20)
Exceptional items	NIL	3,488.88
Profit/(Loss) before Tax	200.10	(5,114.08)
Profit/(Loss) after Tax	147.18	(4,669.38)
Other comprehensive income	8.14	4.86
Earning per equity shares in	1.85	(58.57)
Rs.

A substantial decline in revenues along with high fixed costs additionally discontinuation of production from the end of second quarter resulted in a Net Loss of 4,669.38 lakhs in FY 2024 25. While finance and operational costs remained high, the intermittently shutdown of manufacturing facilities reflected directly on profitability.

4. Key Business Challenges During FY 2024 25

The Company encountered multiple challenges impacting its financial and operational performance:

Working capital shortages and delays in debt servicing.

Classification of banking facilities as NPA leading to restricted cash flow usage. Intermittently shutdown of plant operations due to shifting of machinery. Volatility in raw material (billets & scrap) prices. Reduced construction demand and competitive pricing pressure in regional markets.

5. Opportunities and Threats

Opportunities

Rising government expenditure on infrastructure and urban development.

Increasing demand for quality TMT bars due to safety awareness in housing and real estate. Potential to expand geographically through the AL Kamdhenu brand. Improved margins possible through operational efficiency and optimized procurement.

Threats

Continued price volatility in iron ore, billets and scrap.

Intense competition from organized and unorganized regional players. Regulatory and environmental compliance costs. High dependence on working capital and financing arrangements.

6. Outlook

The management expects demand for TMT steel products to revive progressively, driven by continued government infrastructure push, housing and construction activities. The Company is undertaking cost optimization initiatives, exploring alternative financing routes and working toward restoring plant operations to optimal levels. With improved liquidity, enhanced sales strategy and streamlined operations, the Company expects gradual stabilization and improved financial performance over the medium term.

7. Internal Control Systems and their Adequacy

The Company has an internal control framework commensurate with the size and nature of its operations. The internal control systems ensure:

Protection of assets Accuracy of financial reporting Efficient use of resources Compliance with applicable laws and regulations Internal audits are carried out periodically, and audit findings are reviewed by the Audit Committee. Corrective measures are implemented to strengthen controls wherever required.

8. Human Resource Management

The Company recognizes human capital as one of its most valuable assets. During the year under review, workforce strength was rationalized in line with reduced operational volumes. Training, capability building, safety standards and employee engagement remain priority areas. The Company continues to promote a work culture based on integrity, transparency and performance.

9. Cautionary Statement

Statements in this Management Discussion & Analysis describing the companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results could differ materially due to economic conditions, raw material price fluctuations, regulatory changes and other unforeseen factors.

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	For and on Behalf of the Board of Directors
	Ashiana Ispat Limited
Date: 04.12.2025	(Puneet Jain)
Place: New Delhi	Managing Director
	DIN: 00814312