Bansal Roofing Products Ltd Management Discussions

Your directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31st March 2025.

I. Overview

The objective of this report is to convey the Managements perspective on the external environment and Pre-engineering Building and Roofing industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY 2024-25. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Integrated Report and Annual Accounts 2024-25. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the

Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

II. External Environment

1. Global Economy

The global economy in F.Y. 2024-25 continued to navigate a complex environment marked by persistent geopolitical tensions, tightening monetary policies, and fluctuating energy and commodity markets. While inflationary pressures have begun to ease in some advanced economies, interest rates remained elevated, influencing global investment and consumption trends. The United States maintained steady growth supported by advancements in technology and resilient labour markets, though concerns around fiscal deficits and inflation management persisted. The European Union faced modest recovery, overcoming energy market disruptions but still dealing with structural challenges and the aftermath of regional conflicts. Chinas economic trajectory showed signs of stabilization, driven by government stimulus measures and manufacturing output, although its real estate sector remains under stress. Emerging markets displayed divergent outcomes, with commodity-exporting nations witnessing positive momentum, while others grappled with high debt levels and capital outflows due to stronger global currencies. Global trade witnessed incremental growth, supported by digitalization and logistics improvements, but lingering protectionist policies and trade realignments added to uncertainty. Overall, F.Y. 2024-25 has been defined by a cautious yet progressive global economic environment, with businesses and policymakers focusing on building resilience and fostering long-term, sustainable growth.

2. Indian Economy

The Indian economy in F.Y. 2024-25 sustained its strong growth momentum, supported by resilient domestic demand, robust infrastructure investments, and proactive government policies.

Indias GDP growth remained among the highest globally, driven by continued expansion in the manufacturing and services sectors, along with steady contributions from agriculture. Key government initiatives such as the Production-Linked Incentive (PLI) schemes, large-scale infrastructure projects under the National Infrastructure Pipeline, and accelerated digital transformation further strengthened the business environment. The manufacturing sector benefited from increasing foreign direct investments and the "Make in India" initiative, while the services sector, particularly IT, fintech, and telecommunications, continued to deliver exceptional growth. Agriculture maintained stability despite weather-related challenges, supported by technology adoption and improved irrigation facilities. Inflationary pressures moderated due to better supply-side management, allowing the Reserve Bank of India to maintain a balanced monetary policy stance. Export performance remained healthy, aided by diversified trade partnerships and strong global demand for Indian goods and services. However, challenges such as skill development, job creation, and fiscal consolidation continue to require strategic attention. Overall, Indias economy in F.Y. 2024-25 demonstrated resilience, making significant strides toward becoming a $5 trillion economy and reinforcing its role as a global growth driver.

III. Pre Engineered Building (PEB) Industry and Developments

1. Global Roofing & PEB Industry

The global pre-engineered buildings (PEB) and metal roofing industry continued its growth trajectory in FY 2024-25, driven by the rising demand for cost-efficient and sustainable construction solutions. Increasing industrialization, urbanization, and the growing preference for energy-efficient buildings have propelled the industry forward.

The global PEB market is estimated to have grown by around 9%, reaching a market size of USD 20.4 billion, while the metal roofing segment has expanded by 8%, touching approximately USD 15.3 billion. The surge is supported by:

Demand for faster construction methods in industrial, warehousing, and commercial sectors

Adoption of green building practices and recyclable materials

Technological advancements in lightweight steel and corrosion-resistant coatings

The Asia-Pacific region, particularly India and China, continues to be the key growth driver, while North America sees steady demand led by industrial refurbishments and energy-efficient building solutions.

2. Indian Roofing & PEB Industry

The Indian PEB and metal roofing industry exhibited double-digit growth in FY 2024-25, underpinned by strong infrastructure development, expansion of industrial clusters, and government focus on manufacturing and logistics under initiatives like "Make in India" and PM

Gati Shakti.

The Indian PEB market is estimated to have grown by 11%, reaching 13,900 crores, driven by new warehousing, logistics hubs, and expansion in the manufacturing sector.

The metal roofing segment grew by 10%, touching 9,100 crores, supported by increasing adoption in commercial and residential buildings due to durability and low maintenance requirements.

Sustainability and energy efficiency continue to be key growth drivers, with growing adoption of solar rooftop integration and eco-friendly cladding solutions. As industries continue to migrate from conventional construction to PEBs, the sector remains poised for sustained long-term growth.

Source: Indian Brand Equity Foundation (IBEF), TechSci Research, Construction World

IV. Demand Outlook

The Indian pre-engineered buildings (PEB) and metal roofing industry is poised for continued expansion in the upcoming years, driven by a combination of economic growth, government initiatives, and technological advancements. For the fiscal year 2024-25, the PEB market is projected to grow at a CAGR of 11%, with an estimated market size of 13,875 crores by the end of the year. This growth is expected to be supported by ongoing infrastructure projects, the expansion of industrial facilities, and the increasing adoption of efficient building solutions in urban areas. Similarly, the metal roofing segment is forecasted to grow at a CAGR of 10%, reaching a market size of 9,130 crores by 2024-25. The demand for metal roofing will continue to be driven by its benefits such as durability, low maintenance, and energy efficiency, along with the rising trend of sustainable construction practices.

Although specific published data for Gujarats PEB and roofing sector is limited, the states industrial growth of 12% and export share of 30.7% indicates strong infrastructure and industrial activity supporting steady demand. Given Gujarats leading position in engineering, petrochemicals, warehousing, and logistics infrastructure, the state is likely to mirror or exceed national growth trends of 8% 12% CAGR in the domestic roofing and PEB space. Gujarats strategic industrial clusters and export-linked projects are expected to fuel sustained growth in both PEB and roofing segments in F.Y. 2025-26 and beyond.

Key factors contributing to this positive outlook include:

Economic Recovery and Growth: As the Indian economy continues to recover and grow, the construction sector is set to benefit from increased investments in infrastructure and real estate.

Urbanization: Rapid urbanization and the consequent need for housing and commercial spaces will increase the adoption of PEB and metal roofing systems.

Technological Advancements: Innovations in materials and construction techniques will enhance the appeal and performance of these systems.

Sustainable Construction: The emphasis on green buildings and sustainable construction will further boost the demand for PEB and metal roofing solutions that offer environmental benefits.

Industrial Growth: Expansion in sectors such as manufacturing, logistics, and warehousing will fuel the need for pre-engineered buildings.

Moreover, the emphasis on green buildings and sustainable construction will further boost the demand for PEB and metal roofing solutions that offer environmental benefits. The increasing penetration of PEB and metal roofing in rural and semi-urban areas is also expected to contribute to market growth.

Source: Indian Brand Equity Foundation (IBEF), TechSci Research, Construction World, Business Wire

V. Growth Drivers for the Company

Several factors contribute to the growth of our PEB manufacturing company:

1. Diversified Product Portfolio: Our wide range of products, including various types of roofing systems, cladding solutions, decking systems, Perforation and Ventilation system and pre-engineered buildings, allows us to cater to diverse customer needs across different sectors. This diversification helps mitigate risks associated with market fluctuations and ensures steady revenue streams from multiple sources.

2. Expansion in Industrial Sector and Green Building Practices: The expansion of manufacturing, warehousing, and logistics sectors drives demand for pre-engineered buildings. Our companys strong portfolio of industrial solutions positions us well to capture a substantial share of this growing market. The growing emphasis on sustainability and green building practices favours our environmentally friendly products. Our PEB and metal roofing systems, known for their energy efficiency and recyclability, align with the industrys shift towards sustainable construction.

3. Strong Market Presence: Our Companys reputation for quality and reliability is a significant asset.

Building on this strong brand foundation, we can expand our market share by consistently delivering superior products and services.

4. Technological Advancements: Embracing advanced technologies like BIM and 3D modelling has improved our design capabilities and enhanced project efficiency. Continuous advancements in material science and construction technology enhance the performance and lifespan of our products. By investing in R&D, Bansal Roofing Products Ltd. can introduce cutting-edge solutions that meet evolving market needs, thus maintaining a competitive edge.

5. Customer-Centric Approach: By focusing on customer needs and preferences, Bansal Roofing Products Ltd. can develop customized solutions that address specific market demands. This approach fosters customer loyalty and drives repeat business, contributing to sustained growth.

6. Strategic Partnerships and Collaborations: Forming strategic partnerships with key stakeholders, including suppliers, contractors, and developers, can enhance our market reach and operational efficiency. Collaborative efforts can also drive innovation and open up new business opportunities.

By capitalizing on these growth drivers, Bansal Roofing Products Ltd. is well-positioned to achieve robust and sustained growth in the dynamic PEB and metal roofing industry.

VI. Challenges for the Company

Despite the positive outlook, we face several challenges that require careful management:

1. Fluctuations in Raw Material Costs: One of the primary challenges faced by our company is the volatility in raw material prices. The costs of our prime raw material which is steel can fluctuate significantly due to market dynamics, geopolitical factors, and supply chain disruptions. These fluctuations can impact profit margins and require effective cost management strategies to maintain competitive pricing without compromising on quality.

2. Competition from Unorganized Sector: The company faces intense competition from the unorganized sector, which often operates with lower overhead costs and offers products at reduced prices. This unorganized competition can exert downward pressure on pricing and market share, making it crucial for us to emphasize its value proposition, quality, and reliability to differentiate itself in the market.

3. Skilled Labour Shortage: The shortage of skilled labour in the construction and manufacturing sectors poses a significant challenge. Skilled workers are essential for maintaining high standards of product quality and operational efficiency. Addressing this shortage requires investments in training and development programs, as well as strategies to attract and retain qualified personnel.

4. Difficult to Retain Talent: Retaining talent remains a challenge in a competitive job market. The company must navigate issues such as high employee turnover, competitive salary expectations, and the need for continuous professional development. Building a strong organizational culture and providing opportunities for career growth are crucial to enhancing employee satisfaction and retention.

5. Teething Problems in Setting up New Unit: Establishing a new manufacturing unit often involves various teething problems, including logistical issues, regulatory compliance, and initial operational inefficiencies. These challenges can affect production schedules and cost structures. Effective project management and thorough planning are essential to mitigate these issues and ensure a smooth transition to full operational capacity.

Addressing these challenges requires a strategic approach, focusing on cost control, competitive positioning, talent management, and efficient project execution to maintain and enhance the companys market position

VII. Opportunities for the Company

1. Market Expansion: Exploring new geographical markets and expanding our presence in untapped regions could drive business growth.

2. Focus on Green Solutions: With increasing environmental awareness, offering eco-friendly and energy-efficient PEB solutions can attract environmentally conscious customers. 3. Vertical Integration: Exploring possibilities of vertical integration within the supply chain can help in cost optimization and improved quality control. 4. Strategic Partnerships: Collaborating with key stakeholders, such as architects, contractors, and project consultants, can lead to a broader customer base and mutual growth.

During the year under review, we continued to focus on operational and marketing excellence to achieve its aspiration of becoming the most reputed and valuable Roofing and PEB Company. Steel buildings are the fastest systems of industrial construction today and are popular all over the world in the form of Pre-engineered Buildings (PEB). PEBs are custom-designed, expandable, durable and maintenance free. Construction activity, including those of industrial and commercial buildings, is likely to gain momentum over coming quarters. With a clear shift towards PEBs from conventional structures, the PEB segment would grow faster.

As we move forward, our company will focus on the following key strategies:

1. Market Expansion: Target new geographies and sectors with high growth potential to expand our market presence.

2. Customer-Centric Approach: Strengthen customer relationships and provide excellent pre and post-sales support to enhance customer satisfaction.

3. Operational Excellence: Implement lean manufacturing practices and digital technologies to optimize production processes and streamline operations.

4. Talent Development: Attract and retain top talent to foster a culture of innovation, creativity, and excellence within the organization.

5. Risk Management: Proactively identify and mitigate risks related to supply chain, currency fluctuations, and regulatory changes.

VIII. FINANCIAL PERFORMACE

Major Highlights

The analysis of major items of the financial statements is given below:

1. During the year under review, the Revenue from Operations stood at 9,662.53 lakhs as compared to 10,558.40 lakhs in FY 2023-24, reflecting a decline of 8.48%. This reduction was primarily attributable to the decrease in steel prices during the year.

Other Key Financial Ratios:

Particulars	2024-25	2023-24	2022-23	2021-22	2020-21
Debtors Turnover Ratio	40.17	43.41	36.29	29.04	15.97
Inventory Turnover Ratio	7.27	13.81	8.83	7.02	4.99
Interest Coverage Ratio	23.48	11.43	12.67	39.84	38.29
Current Ratio	1.24	1.16	1.57	1.55	3.26
Debt Equity Ratio	0.07	0.15	0.27	0.30	0.13
EBITDA Margin	9.63%	6.31%	7.59%	8.12%	8.48%
EBIT / Operating Profit Margin	8.10%	5.09%	6.58%	7.49%	7.56%
Profit After Tax Margin	5.73%	3.36%	4.47%	5.43%	5.39%
Return on Equity (RoE)	18.23%	13.75%	18.99%	21.79%	14.60%
Return on Capital Employed
(RoCE)	22.58%	17.23%	21.79%	24.65%	19.20%

Product-wise Sales Quantity & Value Data:

	F.Y. 2022-23		F.Y. 2023-24		F.Y. 2024-25
Particulars	Qty	Value (in Rs)	Qty	Value (in Rs)	Qty	Value (in Rs)
Roll Forming	6,149	57,35,23,563	6,151	58,19,46,714	5,491	49,23,67,248
Products
FRP Sheet	79	2,47,07,587	26	80,70,186	9	26,26,035
Polycarbonate	15,369	1,59,87,495	15,058	1,86,06,812	18,102	1,86,02,648
PEB	2,867	26,88,91,858	3,362	30,01,06,348	3,862	33,89,63,101
Others	-	4,94,14,248	-	14,71,10,292	-	11,14,78,665

Above Quantity is in Metric Tonnes except for Polycarbonate Sheet which is in Square Meter. Other Sales item includes trading in Finished Goods, Labour Charges for Erection, Misc Income, etc.

X. Internal Financial Control Systems and their Adequacy

The Company has an Internal Financial Controls (‘IFC) framework, commensurate with the size, scale, and complexity of the Companys operations. The Board of Directors of the Company is responsible for ensuring that Internal Financial Controls (IFC) have been laid down by the Company and that such controls are adequate and operating effectively. The internal control framework has been designed to provide reasonable assurance with respect to recording and providing reliable financial and operational information, complying with applicable laws, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. The Companys internal financial control framework is commensurate with the size and operations of the business and is in line with requirements of the Companies Act, 2013. The Company has laid down Standard Operating Procedures and policies to guide the operations of each of its functions. Business heads are responsible to ensure compliance with these policies and procedures. Robust and continuous internal monitoring mechanisms ensure timely identification of risks and issues. The management, statutory auditors and internal auditors have also carried out adequate due diligence of the control environment of the Company through rigorous testing.

XI. Human Resource

In the fiscal year 2024-25, Bansal Roofing Products Ltd. placed a strong emphasis on enhancing its human resource capabilities to drive organizational growth and achieve strategic objectives. Recognizing that our employees are our most valuable asset, we undertook several initiatives to foster a culture of continuous learning, innovation, and engagement.

We faced challenges such as a skilled labour shortage and the retention of talent in a competitive market. To address these, we invested significantly in training and development programs aimed at up skilling our workforce and enhancing their technical and managerial competencies. Our efforts included partnerships with leading training institutes and the implementation of in-house training modules tailored to our specific needs.

To improve employee retention, we focused on creating a supportive work environment that promotes career growth, work-life balance, and employee well-being. We introduced various employee engagement activities, performance-based incentives, and career advancement opportunities to motivate and retain our top talent.

Furthermore, our recruitment strategies were aligned with our long-term vision, ensuring that we attract individuals who not only have the required skills but also fit well with our organizational values and culture. As we move forward, we remain committed to building a resilient and agile workforce capable of meeting the evolving demands of the industry and driving our company toward sustained success.

XII. Cautionary Statement

This document contains forwarding looking statements regarding anticipated future events and financial and operating outcome of BRPL. Actual results could differ materially from those expressed or implied. Readers are advised to exercise caution and avoid placing undue reliance on these forward-looking statements.

For and on Behalf of the Board of
Bansal Roofing Products Limited
Sd/-	04.08.202
Kaushalkumar S. Gupta	Date:
Chairman & Managing Director	Place: Vadodara
DIN: 02140767