AYM Syntex Ltd Management Discussions

This discussion covers the financial results, operational performance and other developments for the financial year ended March 31, 2025 in respect of AYM Syntexs business. The Management Discussion and Analysis (MD&A) should be read in concurrence with the Audited Financial Statements of AYM Syntex, and the notes for the financial year ended March 31, 2025 for a comprehensive understanding of the companys progress and strategic direction.

Cautionary Statement

The statements made in this Management Discussion and Analysis that pertain to the Companys objectives, plans, estimates, and expectations may be considered forward-looking statements under applicable laws and regulations. These statements, which discuss future performance and outcomes, are based on Managements current plans and assumptions using available information. However, these statements are subject to various risks, uncertainties, and potential inaccuracies in assumptions. Such forward-looking statements may be identified by the use of words such as anticipates, estimates, expects, projects, intends, plans, believes, aims, strives towards, or similar expressions. While due care has been taken in formulating these statements and their underlying assumptions, there can be no assurance that the expectations will be realised. Actual outcomes may differ materially owing to various factors beyond our control. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Economic Overview

Global Economy

The global economy has demonstrated steady resilience in 2025, with GDP expected to grow by 2.8% (IMF). While this is a moderation from the previous year, it reflects a welcome return to baseline growth levels after a turbulent half-decade. Much of this stability stems from steady disinflation, with global inflation projected to ease to around 4.2%, giving central banks in both developed and emerging markets greater flexibility to support long-term investment and employment.

The United States stronger-than-anticipated recovery-supported by consumer spending and industrial investment-has helped counterbalance weakness in Europe and parts of Asia (Reuters). Even so, geopolitical uncertainties, tightening credit cycles, and ongoing supply chain recalibration remain watchpoints. Companies that have embedded agility and digital resilience into their operating models are likely to outpace peers—especially those that can align with new global norms in sustainability, compliance, and tech-enabled efficiency.

The broader narrative is one of quiet optimism: a world economy no longer in survival mode, but cautiously building a new foundation-one where innovation is not just reactive but forward-looking.

That said, trade dynamics are evolving in ways that demand strategic vigilance. While global growth projections have been raised modestly to around 3.0% for 2025 and 3.1% for 2026 (Reuters), global trade volume growth is slowing noticeably (projected at just 2.8% this year), down from earlier expectations. These headwinds stem from elevated tariff levels, shifting trade policies, and ongoing policy uncertainty, particularly in key economies. Against this backdrop, businesses that embed strategic supply-chain flexibility, prioritise digital trade platforms, and lean into regional partnerships will be best poised to thrive.

India Economy

India continues to be the worlds growth engine, with GDP projected at 6.5% (ADB) and alternate forecasts such as 6.3% (UN) reinforcing its status as the fastest-growing major economy. This performance is not an anomaly—it is the result of structural reforms like GST and digital public infrastructure, which have enhanced formalisation and reduced friction in both trade and taxation.

What sets India apart in 2025 is not just its scale of growth but the quality of that growth. It is being driven by a blend of public infrastructure expansion, rising private consumption, and growing manufacturing investments under the

Make in India and PLI umbrella. Crucially, headline inflation has remained under control at 3.8%, and in some months dropped to 2.1% (Reuters), improving consumer sentiment and real income.

This combination of low inflation, robust investment, and rising productivity provides a uniquely fertile ground for sectors that rely on global competitiveness—especially those like textiles, chemicals, and electronics that are plugged into global value chains. For such sectors, India offers not just a low-cost base but a high-growth domestic market, creating a rare dual advantage.

Industry Overview

Global Textile Industry

The global textile market is expected to grow to USD 2.12 trillion in 2025, up from USD 1.98 trillion in 2024, driven by a 7.3% CAGR (Precedence Report, 2025). This growth is not just a rebound—it reflects a fundamental redefinition of the industrys value chain. Where low-cost production was once the only lever of advantage, the sector now prioritises material innovation, speed-to-market, traceability, and circularity.

Several secular shifts are underway: rising consumer preference for sustainable and traceable fibers, digitised production environments using AI and IoT, and reshoring efforts that value responsiveness over scale. Textile companies that adapt to these shifts—by embedding digital technologies into their operations and sourcing models—are set to lead the next decade.

Even traditional product categories like home furnishings, industrial yarns, and footwear uppers are being reimagined with composite materials, smart textiles, and embedded sensors. For India-based players like AYM Syntex, this environment creates a strategic inflection point: the opportunity to transition from being a cost-based

vendor to a value-based partner in innovation. As global markets evolve, collaboration between manufacturers, technology innovators, and brands is becoming central to sustaining competitive advantage. Strategic partnerships are enabling faster prototyping, customised solutions, and seamless integration of performance features into textiles—capabilities that are increasingly demanded across apparel, automotive, home, and industrial segments. Companies that can combine design agility with manufacturing expertise will be best placed to capture premium opportunities in both developed and emerging economies.

For AYM Syntex, this is a moment to leverage our technical know-how, advanced manufacturing infrastructure, and sustainability-driven practices to strengthen our global relevance. By investing in R&D, diversifying product offerings, and enhancing process efficiency through digital tools, we are positioned to deliver differentiated value to our customers. This approach not only reinforces our transition toward being an innovation-led organisation but also ensures that our growth remains aligned with the long-term shifts redefining the textile industry.

Indian Textile Industry

Indias textile and apparel exports are on track to reach USD 65 billion by FY 2025-26, propelled by a perfect storm of external and internal tailwinds (ET Manufacturing, 2024). On the global front, rising costs in China and growing Western appetite for supply diversification are repositioning India as a go-to partner. Domestically, labour reforms, tax rationalisation, and a huge rural consumption base are giving the sector strong structural footing.

The domestic market is expected to grow to USD 350 billion by 2030 (Invest India, 2024), offering companies a reliable buffer against external shocks. A telling indicator of transformation is the technical textiles segment, where exports grew by 15.5% YoY in FY 2024-25, reaching ^24,732 Crore with a CAGR of nearly 11% (ET Bureau, 2025).

Importantly, the sectors strength lies not just in economic output but in employment generation, with over 45 million direct jobs supported across spinning, weaving, dyeing, garmenting, and logistics (pib.gov, 2025). With increasing automation and AI entering plant floors, the industry is poised for a transformation where skill intensity and digital capabilities will be as critical as labour availability. In such a context, AYM Syntexs focus on value-added yarns, smart operations, and sustainability positions it squarely in the growth frontier of the Indian textile story.

Looking ahead, government initiatives such as the Production Linked Incentive (PLI) scheme for textiles, the National Technical Textiles Mission, and targeted infrastructure upgrades in textile parks are set to accelerate the industrys move up the value chain. At the same time, heightened emphasis on ESG compliance from global buyers is creating new opportunities for Indian manufacturers who can demonstrate transparency, resource efficiency, and product innovation. By aligning with these policy tailwinds and market expectations, AYM Syntex is well-positioned to expand its domestic and export footprint while contributing meaningfully to the sectors long-term competitiveness.

Business Overview

In FY 2024-25, the global economic backdrop offered a cautiously improved path forward. The IMF raised its forecast for global growth to 3.0% in 2025, up from the earlier April estimate of 2.8%, with a further uptick to 3.1% projected for 2026. This modest upward revision reflects easing trade tensions, front-loading ahead of tariffs, and stabilising global financial conditions. Nonetheless, the recovery remains fragile-geopolitical risks and uncertain protectionist policies continue to cast long shadows over the outlook.

Closer to home, India continued to stand out as a bright spot in the global economy. The country maintained a growth trajectory above 6%, driven by resilient domestic consumption, robust infrastructure investments, and government initiatives supporting the manufacturing and textile sectors. The Make in India and Production Linked Incentive (PLI) schemes have spurred capacity expansion and technology adoption, while greater emphasis on sustainability and circularity is reshaping industry standards. This combination of structural reforms, consumer demand, and policy push has strengthened Indias position as a competitive hub for textile innovation and exports, offering both resilience and opportunity amid uncertain global conditions.

Against this nuanced global backdrop, AYM Syntexs performance illustrates how purposeful innovation and strategic discipline create real advantage. Rather than merely responding to macroeconomic fluctuations, we have leaned into transformation-embedding digital tools, product sustainability, and agility into the way we operate. This approach has provided a firm foundation on which our operational units-from POY textiles to floor covering and dyed yarn-have delivered targeted growth, even as the wider environment remains unsettled.

POY - Textile

In FY 2024-25, AYM Syntexs POY (Partially Oriented Yarn) business remained a vital platform for both stability and capability upgrades. Following disruption in the prior year, the company concentrated on restoring and enhancing operational excellence, particularly by stabilising output at its Silvassa facility and recommissioning upgraded and modified lines. These efforts resulted in improved production yields, consistent product quality, and stronger responsiveness to market demand.

AYM Syntexs approach moved decisively away from traditional commodity volumes towards a greater share of specialty, value-added POY. The shift centred on dope-dyed yarns, which offer significant sustainability advantages by minimising water and chemical use versus conventional dyeing. These yarns have found strong acceptance among domestic technical textile clients and select export partners, thanks to their high degree of customisation and lower environmental footprint.

The Company prioritised collaborative product development alongside key customers, tapping into emerging application areas—particularly technical textiles, automotive interior fabrics, and engineered geosynthetics. Operational enhancements—including tighter process controls, real-time monitoring, and expanded automation—were implemented plant-wide. Senior management and manufacturing specialists were directly involved in rolling out these improvements, focusing on yield optimisation, reduced downtime, and continual product mix fine-tuning. As a result, AYM Syntex consolidated its competitive standing in both domestic and international markets, even amid industry-wide price and margin challenges.

Floor Covering

Floor covering yarns formed a bright spot for AYM Syntex in FY 2024-25, driven by enduring demand from global customers in worldwide. Global demand remained robust due to sustained cycles of residential renovation and major commercial fit-outs. AYM Syntexs reputation for technical excellence, timely delivery, and adherence to global specifications was further strengthened this year.A core differentiator has been the companys focus on white & solution dyed yarns.

Process improvements and downstream capacity enhancements greatly facilitated the delivery of these high-specification yarns, enabling AYM Syntex to reliably supply major international flooring and contract carpet brands.

In FY 2024-25, new launches tailored to the stringent requirements of the contract and hospitality segments (such as hotels, and offices) addressed customer priorities like durability, design variety, and performance. Targeted capacity expansions and debottlenecking allowed AYM Syntex to accommodate smaller, fast-turn orders and provide greater flexibility for international partners. The Company also deepened its use of recycled PET feedstock, reflecting growing preferences for sustainability and circularity in flooring projects worldwide. Great traction for AYMs Automative products, innovative offering in polyester which is the first of its kind challenges the dominance of Nylon in the Automative industry. Currently supplying to all the major OEMs world-wide.

Packaged Dyed Yarn

In FY 2024-25, the packaged dyed yarn segment stood out as one of AYM Syntexs most dynamic engines of growth. Strong order momentum was attributed to substantial investment in new dyeing lines equipped with advanced automation. These enhancements significantly shortened production turnaround and enabled precise, reproducible colour matching, thereby meeting the requirements of top-tier apparel and home textile brands.

Quality remained front and centre: the introduction of inline colour monitoring and defect detection ensured that every batch delivered met stringent customer standards, leading to fewer rejections and higher levels of satisfaction. AYM Syntexs agility in producing niche, technical colourways—especially for international buyers in Europe and emerging Asia—allowed the company to pursue attractive, margin-accretive opportunities in specialty applications such as mattress ticking, sportswear, and automotive interiors.

A clear focus on sustainability ran through all operations. The division expanded its use of water-efficient, closed-loop dyeing processes and eco-certified chemicals. These changes not only directly reduced environmental impact but also aligned with the ESG priorities of many premium customers. Compliance with global textile standards (Oeko-Tex, GRS, Inditex, etc.) was strictly maintained, reinforcing AYM Syntexs credentials as a reliable, traceable partner in circular supply chains.

These collective efforts allowed the packaged dyed yarn division to diversify its technical applications and regions served, maintain healthy operating margins, and build a strong order pipeline heading into the next financial year.

Industrial Yarns (IDY)

AYM Syntexs Industrial Yarns (IDY) business has continued its growth trajectory in recent years. Following a significant capacity expansion in FY 2023-24, we saw strong performance in FY 2024-25, driven by product approvals from global leaders across various industrial markets.

Our focus on sustainable and specialised industrial markets, combined with a comprehensive portfolio of products and services, has helped us differentiate from competitors. Sewing thread applications have been a key growth category, prompting investments in auxiliary technologies and capacity expansion to support top global brands and market leaders.

Customer relationships have strengthened, supported by the introduction of value-added products, an extended product range, and increased production capabilities. Regular third-party audits by international authorities reaffirm our commitment to quality and operational excellence, with AYM Syntex achieving an impressive rating.

The IDY business has further consolidated its competitive advantage in both domestic and export markets, with a strong emphasis on the United States and Europe.

Business Outlook

The outlook for FY 2025-26 is fundamentally upbeat. With global growth expected to stabilise and India consolidating its role as a manufacturing and innovation powerhouse, the textile sector is set for another phase of robust expansion. Advances in product innovation, digitalisation, and sustainability—along with strong government and market tailwinds—provide fertile ground for forward-looking textile companies such as AYM Syntex. Strategic discipline, agility, and a continued focus on higher-value applications will be key to harnessing the sectors abundant opportunities.

HR Overview

FY 2024-25 saw AYM Syntex elevate its people-first agenda to new heights, embedding holistic employee development, recognition, diversity, and well-being at the core of its operational and cultural DNA. These efforts have set the stage for continued innovation, resilience, and organisational excellence in the years ahead.

Recognition and Engagement

AYM Syntex further strengthened its culture of appreciation and continuous engagement, ensuring every employees contributions truly matter.

• GloryUs 3.0: Recognised over 560 high-performing employees, celebrating contributions and boosting morale throughout the company.

• Employee of the Month/Day Programs: These sustained platforms honoured both individual and team achievements, fostering a sense of belonging and consistent appreciation.

Learning and Development

We expanded opportunities for professional growth, making skill enhancement a part of the employee experience.

• Total Training Hours: Over 9,208 hours of training delivered through an array of programmes.

• Gyanodaya Learning Platform: Continued as the flagship for professional and technical upskilling.

• Tailored OEM and Leadership Programs: Collaborations with leading institutions (e.g., IIM Bangalore, Dale Carnegie, Mercer) bolstered leadership capabilities.

• Personalized Development: Individual Development Plans and learning nuggets supported targeted growth.

Talent Pipeline and Internal Mobility

AYM Syntex focused on nurturing future leaders and promoting talent from within, supporting a dynamic and aspirational workforce.

• Udgam - Campus to Corporate: Revamped intake brought in 35+ new graduates, with a 90% retention rate.

• Internal Recruitment: 93% of new hires sourced via internal referrals and career progression channels, highlighting strong mobility and a vibrant workplace culture.

• Cognitive Testing: Set of assessments designed and conducted across critical hiring, raising overall talent standards at AYM Syntex.

Diversity and Inclusion

Diversity took centre stage, as gender balance and opportunity broadened across organisational levels.

• Women in Technical Roles: Women comprised of Graduate Engineer Trainee hires—a significant leap in gender diversity across operational functions.

• Broader Inclusion: Women now represented in all divisions, including manufacturing.

Well-being, Health, and Safety

AYM Syntex prioritised employee wellbeing and workplace safety, fostering a secure and supportive environment.

• Employee Well-being: Expansive programmes addressed emotional, intellectual, and physical health, supported by structured 30-60-90 day check-ins for new joiners.

• Occupational Health & Safety: Zero fatalities for the fifth consecutive year. Robust incident reporting and comprehensive insurance and leave benefits reinforced the safety culture

HR Innovation and Process

The HR function embraced technology and novel methods to drive agility and organisational effectiveness.

• Communication Channels: HR at Your Desk and Sandesh drove effective communication, especially for decentralised teams.

• HR Automation: Initiatives underway to digitise and streamline HR processes for agility and data-driven action.

• SGIT (Small Group Initiative Technique): Cross-functional engineering teams undertook strategic, year-long efficiency and cost-saving projects.

Risk Governance and Management

The Company operates within a comprehensive Enterprise Risk Management (ERM) framework, supported by a robust internal control system, to identify, evaluate, address, and monitor the full spectrum of risks and uncertainties that could influence its performance. This disciplined approach helps safeguard and create value for stakeholders.

ERM holds a central position within our organisation, bringing a consistent, structured, and objective method to risk assessment and management. With the active involvement of various corporate functions, the framework facilitates the complete cycle of risk identification, assessment, prioritisation, mitigation, monitoring, and reporting. The process is strengthened through scheduled reviews, control mechanisms, self-assessments, and ongoing tracking mechanisms, self-assessments, and ongoing tracking of key risk indicators. Each functional unit carries out a detailed assessment of current and emerging risks and opportunities, which are then consolidated to present a holistic view at the organisational level. For significant risks, dedicated mitigation plans are prepared, with senior management providing active oversight through continuous monitoring.

Key Highlights of Enterprise Risks Identified for FY 2024-25 with Mitigation Strategies

Operational Risks

Risk Type and Description	Mitigation and Strategies
Manufacturing Excellence and Product Quality AYM Syntex is committed to high standards in manufacturing processes. Any deterioration in process efficiency or attention to quality can result in adverse outcomes. This not only damages our reputation but also diminishes our competitive position in the marketplace.	\u2022 Established robust mechanisms for promptly identifying, analysing, and resolving quality deviations, thereby fostering a culture of continuous improvement across all manufacturing processes. \u2022 Strengthened coordination among production, quality, and market teams to ensure alignment with market demand and consistently meet customer expectations. \u2022 Strict adherence to Standard Operating Procedures (SOPs).
Commodity Price and Supply Chain Disruption Interruptions in the supply of raw materials or fluctuations in their prices may disrupt production continuity, operations, and cost effectiveness, thereby impacting overall business performance.	\u2022 Alternate suppliers have been identified for key raw material supplies in both domestic and international markets. \u2022 Long-term contracts and sourcing agreements are in place to maintain supply consistency and manage costs. \u2022 Market intelligence and planning tools help optimise raw material procurement and inventory management.
Talent Retention and Capability Development Challenges in attracting, retaining, and engaging skilled employees, as well as factors such as motivation levels or workplace satisfaction, may result in increased staff turnover, changes in productivity, and possible impacts on business operations.	\u2022 Structured training programs are implemented based on departmental requirements to support employee skill development and retention. \u2022 Leadership development and job enrichment programs have also been introduced for advancement into higher-level positions. \u2022 Processes for identifying key talent are established to ensure succession planning for critical roles.
Technology Implementation and Cybersecurity Delayed or ineffective implementation of new technologies, automation tools, or inadequate protection of critical systems may affect operational efficiency, compromise data security, and disrupt business continuity.	\u2022 SAP ECC to S/4HANA migration is underway, to future-proof ERP infrastructure. \u2022 IoT-based monitoring is being piloted to enable predictive maintenance and enhance asset uptime. \u2022 Critical systems have been classified under Tier-1 and are protected through encrypted backup and recovery systems. \u2022 Firewall and endpoint security systems have been upgraded, with multi-layer authentication implemented across platforms. \u2022 Segregation of Duties (SoD) reviews are done annually to ensure proper access control and prevent misuse.

Regulatory Risks

Risk Type and Description

Mitigation and Strategies

Regulatory Risk Compliance challenges in different geographies could result in financial losses, delays, penalties, or reputational impact.

\u2022 Robust system for continuously monitoring changes in laws, regulations, and industry standards across all operating geographies. Involvement of external experts for due diligence. \u2022 Actively engage with government authorities and industry associations to provide expert input and shape policies in a manner that benefits the entire industry. \u2022 Dedicated compliance resources are assigned to streamline execution and reduce delays.

Strategic Risks

Risk Type and Description	Mitigation and Strategies
Expansion Risk Delays in capacity addition, unstable quality from new lines, or inadequate market development for targeted segments may affect demand fulfilment and profitability.	\u2022 Capex projects are initiated only after thorough financial and market viability analysis and are monitored by an internal Capex committee. \u2022 Funding through term loans and preferential equity was tied up in advance, reducing dependency on short-term debt. \u2022 Product launches and new capacity additions are aligned to growing demand, particularly in high-margin segments.
Competition Risk Increased competition across marketplace and aggressive pricing may influence market share, pricing strategies, and talent retention which could affect business growth.	\u2022 Operational flexibility has been strengthened through line modifications and additional capacity. \u2022 Efforts to optimise the product mix continue, prioritising higher-margin and export-oriented offerings. \u2022 Strategic realignment of the portfolio and targeted talent initiatives have been implemented to improve profitability and support sustained future growth.
Underperformance & New Product Launches Low success rates in new product launches can lead to restricted consumer adoption or challenges in scaling according to projections, which may affect revenue and market position.	\u2022 Timelines, ROI expectations, and budgets are systematically monitored through monthly review processes. \u2022 Product shortlisting is informed by comprehensive market research to prioritise viable new product development opportunities. \u2022 Strategic investments in quality and pilot-scale equipment have accelerated the sampling and approval process. \u2022 Underperforming SKUs are discontinued, allowing resources to be reallocated towards scalable and innovative solutions.

Financial Risks

Risk Type and Description	Mitigation and Strategies
Volatility in Financial Market Borrowing strategies that do not optimise financial performance, high interest rate and limited liquidity management can result in increased financing costs, cash flow challenges, and greater exposure to financial risk.	\u2022 Banking relationships have been broadened to secure more favourable borrowing terms and minimise dependence on individual lenders. \u2022 The infusion of preferential equity improves liquidity and mitigates financing limitations. \u2022 Borrowing strategies are regularly reviewed and adjusted in accordance with prevailing market conditions, while cost optimisation initiatives are implemented to effectively manage interest expenditures.
Foreign Currency Exposure Adverse currency fluctuations, if not effectively managed, may impact profitability, cash flows, and overall financial performance.	\u2022 Foreign exchange risk is addressed using a structured approach consistent with internal governance and risk mitigation procedures. \u2022 Import and export parity serves as a mechanism for managing transaction-level risk. \u2022 Continuous monitoring of currency trends facilitates prompt decisions and reduces risk from adverse fluctuations.

Internal Control System

We have an adequate system of internal controls in place. We have set policies, procedures and practices covering all financial and operating functions. These controls have been designed to provide a reasonable assurance regarding maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorised use or losses, compliances with regulations. We have continued our efforts to align all our processes and controls with best practices.

These policies, processes and practices help to prevent fraud, detect errors, and ensure compliance with laws and regulations. This sets the tone for the organisation, emphasising the importance of integrity, ethical values, and accountability. By identifying and analysing potential risks, it helps to focus control efforts on critical areas and prioritise resources effectively. An internal control system is a vital component of an organisations governance structure, designed to ensure the reliability of financial reporting and the effectiveness of operations. Therefore, Independent Internal Auditors regularly test these internal controls to assess their adequacy and reliability. The Audit Committee of our Company has appointed M/s Suresh Surana & Associates LLP as our Internal Auditors. The key focus areas by the internal auditors are Financial Reporting Controls, Segregation of Duties, Access Control, Monitoring & Review, Compliance Controls, and Documentation & Record Keeping.

By testing these internal controls regularly, auditors provide assurance to stakeholders, management, and the Board of Directors that the organisations systems are functioning as intended, thereby enhancing the reliability of the financial statements and the overall business operations. All possible measures are taken by the Audit Committee to ensure the objectivity of the Internal Audit process and independence of the Internal Auditor, including quarterly one-on-one discussions. The Audit Committee reviews the adequacy of design and the effectiveness of the internal control systems, takes note of significant audit observations and monitors the sustainability of remedial measures. The internal audit programme is reviewed by the Audit Committee at the beginning of the year to ensure that the coverage of the areas is adequate. Reports of the internal auditors are regularly reviewed by the management and corrective action is initiated to strengthen the controls and enhance the effectiveness of the existing systems. Summaries of the reports and actions taken on audit findings are presented to the Audit Committee of the Board. The Company also has a management audit team which is responsible for monitoring the implementation of action points arising out of internal audits. All audit observations and follow up actions thereon are tracked for resolution by the Internal Auditors and reported to the Audit Committee. The Statutory Auditors, as part of their audit process, also carry out a systems and process audit to ensure that the ERP and other IT systems used for transaction processing have adequate internal controls embedded to ensure preventive and detective controls.

The Company also has a system of Internal Control over Financial Reporting (ICFR) ensuring the accuracy of the accounting system and the related financial reporting. ICFR means the policies and procedures adopted by a company for ensuring accuracy and completeness of accounting records; orderly and efficient conduct of business, including adherence to policies; safeguarding of its assets; prevention and detection of frauds and timely preparation of reliable financial information. The management assesses the appropriateness and effectiveness of these financial controls and are also validated by Internal Auditors as well as Statutory Auditors.

For the year ended March 31, 2025, the Board is of the opinion that the Company has adequate ICFR commensurate with the nature of its business operations, wherein controls are in place and operating effectively and no material weakness exists. The Statutory Auditors have also issued an audit report expressing satisfaction on the adequacy and effectiveness of the internal financial control systems over financial reporting.

During the year under review, there were no risks which in the opinion of the Board threaten the existence of the Company.

In the Companys ongoing commitment to improving internal controls, it continues to embrace technology and embark on an automation journey. By leveraging cutting-edge technological solutions, the Company aims to enhance the efficiency, accuracy, and effectiveness of its internal control system. The Company is actively automating repetitive and routine processes within its internal control framework. By doing so, it reduces the potential for human error and ensures consistency in control execution. Technology-enabled workflows are being implemented to streamline the flow of information and approvals across various departments. This not only expedites decision-making but also enhances the segregation of duties. The automation journey is a continuous process, and the Company is committed to regular assessments and updates to optimise the effectiveness of the internal control system continually.

Financial Performance Overview

The Financial Year 2024-25 was characterised by a blend of opportunities and challenges. Persistent geopolitical tensions, volatility in international financial markets, geoeconomic fragmentation, disruptions in key sea trade routes, weak global demand, and extreme weather events continued to exert pressure on inflation, interest rates, and global supply chains. Despite these headwinds, Indias sustained structural reforms and strengthened physical and digital infrastructure have enhanced its resilience, enabling the nation to navigate global volatility and maintain a positive growth trajectory. The strong fundamentals and various steps taken by the government ensures that India remains comparatively well-positioned to navigate this period of uncertainty.

The global economy in 2024-25 experienced moderate yet uneven growth. While overall inflation eased, persistent services inflation and elevated interest rates continued to place downward pressure on economic activity. Key influencing factors included sustained anti-inflationary measures, ongoing geopolitical conflicts—particularly their impact on critical trade routes such as the Red Sea—and increasingly significant climate-related challenges, including droughts and floods.

Geopolitical tensions have emerged as the foremost risk to the global economy. Elevated interest rates and disrupted trade channels further constrained international performance.

These headwinds, together with rising global risks, contributed to weaker export growth in several economies. Moreover, the global outlook has deteriorated considerably amid heightened trade barriers and growing uncertainty over trade policy. As a result, global growth is projected to slow to its weakest pace this year.

The revenue from operations stood at ^1,489.0 crores as compared to ^1,358.2 crores in the previous year. On the back of increase in turnover, the operating EBITDA was higher at ^124.1 Crores (8.3% of revenue) as against ^107.9 crores (7.9% of revenue) in the previous year.

PARTICULARS	For the year ending March 31
	2025		2024
	Crores	% of Revenue	Crores	% of Revenue
Sales Volumes (MT)	61,760	-	60,866	-
Net revenue from operations Expenditure	1,489.0	-	1,358.2	-
Cost of Materials	796.6	53.5	756.5	55.7
Employee cost	87.0	5.8	75.8	5.6
EBITDA Margins	124.1	8.3	107.9	7.9
Exceptional Item	0.0	0.0	6.6	0.5
EBITDA Post Exceptions	124.1	8.3	101.3	7.5
Finance Charges	42.8	2.9	42.0	3.1
Depreciation	62.0	4.2	57.9	4.3
Tax	7.7	0.5	-0.7	-0.1
Profit after Tax	11.6	0.8	2.0	0.2
Other Comprehensive Income	0.1	0.0	0.0	0.0
Total Comprehensive Income	11.7	0.8	2.0	0.1
Earnings per share (EPS)(in f)	2.1	-	0.4	-

Revenue

Revenue from operations stood at ^1,489.0 Crores, recording 9.6% increase compared to the previous year. Sales have increased by about 1.4% over the previous year in terms of volumes. Company continues to retain focus on throughput improvement, filling up the enhanced capacities and getting the product sales mix right in the current year for sustainable profitable growth in future. The export sales, in line with strategy, have seen marginal change from ^644.6 Crores to ^640.1 Crores.

Cost of Materials

The cost of materials comprises consumption of raw material, packing material, dyes & chemicals, changes in inventories of finished goods, work-in-process. The cost of raw materials and changes in inventories is at 53.5% of revenue, which has decreased by 2.2% from 55.7% in previous year. The cost of materials has declined on account of efficiencies in buying, improved sales mix and operational metrics at the plant level. Raw Material costs have also impacted mainly due to favourable movement in brent crude prices from $86 per barrel to $73 per barrel.

Employee Costs

Employee cost includes salaries, wages, annual performance incentives, statutory bonus and gratuity, contribution to provident and other funds and staff welfare schemes expenses (except actuarial gain / (loss) on defined benefit plans). It also excludes labour engaged on contractual basis. During the year under review, employee cost stood at ^87.0 Crores which has slightly increased from

5.8% of revenues as compared to 5.6% in previous year. The same is in line with the increase in head counts and compensation. The Company continuously strives to put in place the adequate team structures to fuel the future growth. With resource optimization in mind, it had worked upon restructuring the roles to ensure focused approach towards key goals.

Earnings before Interest, Tax, Depreciation & Amortization

The Company has reported operating EBITDA in FY25 at ^124.1 Crores (8.3% of revenue) as against ^107.9 Crores (7.9% of revenue) in the previous year. Increase in EBITDA on account of increase in turnover and decrease in raw material cost. EBITDA post exceptional items is at ^124.1 crores (8.3% of revenue)

Finance Cost

Finance charges include interest on borrowings and other financial charges. Finance cost has decreased in FY 24-25 at 2.8% of revenue as against 3.1% of revenue in the previous year, During the current year, the Company issued and allotted equity shares on a preferential basis aggregating to ^141.7 Crores. The Company has utilised the net proceeds of ^58.8 Crores for reduction of working capital borrowings. The Company expects and is making efforts to reduce the charges of facility availed with improved financial performance and by utilizing low interest rate products.

Depreciation

Depreciation has increased from ^57.9 Crores in FY24 to ^62.0 Crores in the current year. The increase is on account of capitalization of ongoing modernization and expansion projects. Depreciation is expected to increase further in the coming year on account of the committed capex plan.

Tax Expense

During FY 25, the Company has paid taxes after utilising the MAT Credit to the extent available. The Company expects to fully utilise the MAT credit balance and does not foresee the situation of it getting expired without being utilised in the coming years.

Profit after Tax

Profit after tax has recorded year on year increase of 469.5%. Profit after tax stood at ^11.6 crores in FY 24-25 as against ^2.0 crores in FY 23-24.

Total Debt

Debt includes long-term, short-term borrowings including lease liabilities. Gross Debt as on March 31, 2025, stands at ^201.8 Crores as against ^324.0 Crores at the end of FY 24. The debt has decreased on account of repayment of long-term borrowings from accruals and reduction in short-term borrowings through utilisation of proceeds from preferential equity issue . Cash and cash equivalents of the Company in FY25 stood at ^18.1 Crores as compared to ^7.0 Crores in the FY24, Net Debt as on March 31, 2025, stands at ^167.7 Crores after reducing the cash and bank balance of ^ 18.1 Crores and liquid investment of ^ 16.0 Crores.

Net Debt to EBITDA ratio for the current year improved to 1.3 from 2.8 in the previous year on account of decrease in borrowings and increase in operating profit.

Fixed Assets

Fixed assets (tangible and intangible) including capital work-in-progress stands at ^493.4 Crores at end of FY25 as compared to ^500.3 Crores at the end of previous year. This decrease has been on account of depreciation being higher than capex on additional facilities.

Key Ratios

Key capital efficiency ratios for AYM Syntex have been highlighted which provides a snapshot of the health of the Balance sheet.

Key Ratios	2025	2024
Return on Capital Employed (ROCE)	8.0	5.8
Debt: Equity	0.3	0.8
Net Debt: EBITDAs	1.4	2.8
Debt Service Coverage Ratio	1.2	0.9
Interest Coverage Ratio	1.4	1.6
Current Ratio (Ex Current portion of Long term Debt	1.5	1.2
Creditors Turnover (days)	64	78
Debtors Turnover (days)	31	31
Inventory Turnover(days)	106	100

Outlook

The International Monetary Fund (IMF) has projected modest global economic growth of 3.0% for 2025 and 3.1% for 2026. The broader outlook remains one of economic deceleration and subdued expansion during this period, influenced by increasing trade barriers, restrictive financial conditions, and policy uncertainty. Key risks include the potential for weaker growth in major economies and ongoing geopolitical tensions.

In contrast, Indias economic outlook is comparatively robust, with strong growth anticipated in both 2025 and 2026. The Reserve Bank of India forecasts GDP growth for FY2025-26 at 6.5%, despite prevailing uncertainties stemming from shifts in global trade dynamics and the imposition of broad-based tariffs.

, While trade policy uncertainty continues to affect

t the prospects for merchandise exports, the recent

conclusion of a free trade agreement (FTA) with the United Kingdom, along with progress on negotiations with other nations, supports positive trade activity. Despite external headwinds, Indias economy remains relatively resilient due to its limited dependence on global goods trade, recent tax reforms, contained inflation, and the potential for a more accommodative interest rate environment.

The Company is primarily committed to a customer-centric approach, while also enhancing plant throughput, driving new product development, and implementing ongoing cost reduction initiatives. We are strategically aligning ourselves to effectively manage a challenging operational environment and to deliver sustainable value to all stakeholders by maintaining a focus on customer needs and a value-driven strategy.