Bedmutha Industries Ltd Management Discussions

Management Discussion and Analysis Report for the year under review, as per regulation 34 (2) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 is presented as below.

1. This section include discussion on the following matters which are within the limits set by the listed entity of its competitive position: A) ECONOMIC REVIEW

GLOBAL ECONOMY

As per the World Economic Outlook July 25 edition published by the IMF on Global Economy: Tenuous Resilience amid Persistent Uncertainty, the Global growth was projected at 3.0 percent for 2025 and grew by 3.3% in FY2024-25 and 3.1 percent in 2026, an upward revision from the April 2025 World Economic Outlook.

This reflects front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions. Global inflation is expected to fall, but US inflation is predicted to stay above target. Downside risks from potentially higher tariffs, elevated uncertainty, and geopolitical tensions persist. Restoring confidence, predictability, and sustainability remains a key policy priority.

Growth in advanced economies remained subdued particularly in Europe and the UK, where industrial activity was sluggish. In contrast, Indias economy continued to outperform, driven by strong domestic consumption and infrastructure investments. Chinas recovery was uneven, with a weak property market and subdued demand offset partially by policy support. Meanwhile, ongoing geopolitical tensions including the wars in Ukraine and the Middle East, and US–China trade frictions continued to disrupt global trade and energy markets, prompting shifts in supply chains.

Overall, the global economy continues to face structural and geopolitical challenges that may influence business strategies and trade dynamics in the near term.

Globally, copper demand is booming—driven by renewable energy, EV adoption, and digital infrastructure such as 5G and smart grids. The global copper wire market is expected to reach over USD 210 billion by 2030 with a CAGR of 6.6%. Meanwhile, the steel industry is under transformation toward lower-carbon production: electric arc furnaces (EAFs) are becoming more prevalent, particularly in Europe.

Emerging carbon policies loom—Indias export competitiveness to the EU may be impacted by the EUs Carbon Border Adjustment Mechanism (CBAM) beginning 2026, which aims to levy a carbon-intensive import tax unless compliance is demonstrated

INDIAN ECONOMIC REVIEW

The International Monetary Fund (IMF) has revised its forecast for Indias economic growth to 6.4 percent for both 2025 and 2026. Earlier in its April 2025 World Economic Outlook, IMF had projected Indias GDP growth at 6.2 percent for 2025 and 6.3 percent for 2026. position as the worlds fastest-growing major economy, IMF attributed the upward revision Reaffirming to a more benign external environment than anticipated in its April forecast. For India, projections are based on the calendar year, with the agency noting that Indias growth projections are 6.7 percent for 2025 and 6.4 percent for 2026 based on financial year data.

The IMF has also modestly raised its global growth outlook to 3.0 percent in 2025 and 3.1 percent in 2026, citing lower-than-expected impact from tariffs, a weaker US dollar, and improved financial conditions. China is forecast to grow at 4.8 percent in 2025 and 4.2 percent in 2026, while the US is expected to expand 1.9 percent in 2025 and 2.0 percent in 2026.

India continues to outperform global peers in steel production and infrastructure growth. Between FY19 and FY24, domestic steel output surged by 33%, while global production declined by roughly 1%. Government capital expenditure in infrastructure—including metro rail, transmission lines, smart cities, and real estate is expected to rise by 25% in FY26 to 9 lakh crore, generating approximately 20,000 Crore in additional demand for wires and cables. India has adopted a new "Domestically Manufactured Iron and Steel Products Policy 2025" requiring government agencies to preferentially procure domestically made steel, helping shield local mills from imports.

Further, the Construction, automotive, rail electrification, and renewable energy expansion are lifting demand for both steel wire and copper products. The India steel wire market is projected to grow at ~5–6% CAGR through 2029/31, while the copper wire and cable market reaches USD 15.1 billion in 2024 and is expected to grow at ~5-6% CAGR through 2033.

Apart from above, the industry also faced challenges such as rising input costs, supply chain disruptions in growth sectors. We expect that the initiatives by the Indian Government such as National Steel Policy and the Production-Linked Incentive (PLI) scheme will boost manufacturing sector in India.

(a) INDUSTRY STRUCTURE AND DEVELOPMENTS

In addition to aforesaid details mentioned under economic review for Global & Indian parameters highlighting impacts & effects for the copper & steel sectors the steel output is anticipated to increase in FY2025-2026 and coming years. The demand for steel set to increase, on account of the robust domestic spending and construction activity, particularly in emerging markets which drove demand for steel & copper products, supporting production and capacity utilisation. The initiatives by the Indian Government such as the National Steel Policy and the Production-Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing, also increased demand from sectors like construction, infrastructure development, and automotive manufacturing, driven by economic recovery.

On the other hand, as highlighted in previous year Annual Report, the global demand for copper continues to grow: world refined usage has more than tripled in the last 50 years, thanks to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. Demand of copper is increasing due to progress of implementation of electric vehicle worldwide with associated charging infrastructure, decarbonisation policy push by US and EU and more and more emphasis on green energy to mitigate climate change.

According to the Indian Bureau of Mines and USGS data, India contributes around 0.3–0.4% of the worlds total copper reserve and therefore has very limited copper ore reserves and Countries like Chile, Australia, Peru, and the U.S. have much larger reserves.

Indias mining output of copper (i.e., mined copper ore) is very small compared to the global total — approximately 0.2%. Further, we have seen a decline in domestic mining after the closure of major mines like the Balaghat mine and Hindustan Coppers mines in recent years.

However, our countrys refined copper production capacity is about 4% of worlds production, largely due to Hindalco, Vedanta (Sterlite Copper), and Hindustan Copper Ltd.

Therefore, imports copper concentrates to feed its refineries because domestic ore is insufficient. Due to such factors the Raw-Material volatility in Both steel and copper markets remain susceptible to volatility and to avoid such risk we continue to hedge strategically, and maintain a lean working capital cycle. The International Copper Study Group (ICSG) projects global copper mine production to grow 2.3% in

2025 and 2.5% in 2026. Refined copper output is expected to rise by 2.9% in 2025 and 1.5% in 2026, with a market surplus likely as demand growth moderates.

World copper mine production was projected to increase by 2.3% in 2025 to 23.5 million tonnes (mnt), mainlydrivenbytheramp-upofmajorprojectssuchasKamoaintheDemocraticRepublicofCongo(DRC),OyuTolgoiin Mongolia,andthecommissioningoftheMalmyzmineinRussia.However,thesegainswillbepartiallyoffsetbyexpected declines in Australia, Indonesia, and Kazakhstan.

Looking ahead to 2026, mine production growth is forecast to accelerate to 2.5%, supported by continued expansion in new and existing capacity, such as in China, along with anticipated output improvements in Chile and Zambia and a recovery in Indonesian production.

(b) OPPORTUNITIES, THREATS, RISKS AND CONCERNS

Opportunities:

Our companys product portfolio—which includes steel wires, wire products, wire ropes, and copper products serves a broad spectrum of industries, with significant application in the infrastructure sector as well as in emerging and fast-growing segments such as electrical and electronic products, industrial machinery and equipment, transportation, and consumer goods.

The Government of Indias Make in India initiative, coupled with increased public investment in infrastructure development—particularly in railways, urban and rural infrastructure, automotive (including electric vehicles), high-speed rail, and agriculture—is expected to drive strong volume growth across our product lines.

In addition, key national programmes such as Bharatmala & Sagarmala Projects, the Development of Smart Cities Mission, and Parvatmala are fueling sustained demand for high-performance wire ropes, especially in applications involving elevators, cranes, ports, and ropeways.

We also have planning for expanding our product portfolio with the introduction of a new verticals/products, which will positively increase the revenue and profit to the Company in long run.

Looking ahead, we anticipate a 15–20% year-on-year volume growth in the Indian market, underpinned by continued infrastructure development, accelerating urbanisation, and rising demand across core end-use industries.

Risks, Threats and Concern:

The risks which the Company may face are discussed as follows. Slowdown of major economies; Increased competition from small and new emerging business players; Inflationary conditions may result in tightening of interest rate; Geopolitical tension may affect supply chain of the company;

Raw-Material volatility in Both steel and copper markets remain susceptible to volatility; we continue to hedge strategically, and maintain a lean working capital cycle.

Trade and Policy Risks: Temporary safeguard duties and anti-dumping measures help protect us, but new trade disputes or EU Carbon Border Adjustment Mechanism (CBAM, pronounced Si-Bam) i.e. tariff on carbon intensive products, such as steel, cement and some electricity, imported to the European Union. Its implementation could affect exports. Therefore, in continuation to our efforts for enhancing emissions transparency and to reduce Carbon footprint and support sustainable development and green practices, we have successfully registered and got certified under Silver

Category of ECO-ID Certificate, which will help us to attract & retain export subsidy to the buyers and to boost export sales.

Regulatory & Environmental Compliance: Over 90% of Indias planned steel-making capacity is still under development, offering a window to transition from coal-centric blast furnaces to greener technologies.

The increased U.S. tariffs present short- to medium-term challenges for the steel and copper manufacturing sectors, particularly in export competitiveness and cost structures. Strategic adaptation, to mitigate associated risks and marketdiversification operationalefficiency, and maintain resilience.

(c) SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE

The comparative chart on segment-wise/product wise performance of the Company for the Financial Year ended on March 31, 2025 is provided herein below.

(Rs. in Lakhs)

Particulars	FY 24-25		FY 23-24		% (increase/ decrease)
	Steel	Copper	Steel	Copper	Steel	Copper
Revenue from Operations	37,629.49	67,303.95	36,183.5	44,977.34	4.00	49.64
EBITDA	4,908.33	2,942.32	5,142.59	3,019.94	-4.56	-2.57
PAT	273.72	2,066.37	-272.49	2,255.96	200.45	-8.40

(d) OUTLOOK

As we enter in the new financial year 2025 26, our strategic priority is to translate our investments into sustained operating momentum with effective utilisation of the resources available with the Company. The full utilisation of the capacity at our Nardana facility is progressing and is expected to be completed by end of this fiscal year. This expansion will significantly enhance our ability to serve increasing demand in high-value applications such as offshore, elevator, crane, and mining sectors etc.

We are firmly focused on optimizing asset utilization and improving throughput across key product lines to unlock further efficiencies and bolster our competitive position.

We are actively shifting toward lower-emission manufacturing, in line with industry expectations and global decarbonization goals. Additionally, recycling and scrap utilization are being prioritized to mitigate raw-material dependencies and reduce carbon intensity. Continued investments in sustainable production and automation, including predictive digital systems and smart plant infrastructure.

Aligned with evolving global demand trends, we are well-positioned to capitalize on strong domestic growth. Indias infrastructure momentum-particularly in the railways, urban and rural infrastructure, automotive (including EVs), high-speed rail, and agricultural sectors-is expected to support robust volume growth across our portfolio.

Export sales are projected to strengthen progressively, supported by improved product positioning and a strategic push towards international markets.

Operationally, we are driving structural efficiencyinitiatives and leveraging our sound financial foundation to support growth. We are also executing a major expansion plan under the Government of Maharashtras PSI scheme. This Mega Project is being implemented in a phased manner, with Phase I scheduled for completion by March 31, 2026, and Phase II targeted for March 2027. The project is primarily focused on capacity enhancement and diversification into more value-added products to cater to evolving industry needs.

Looking ahead, we remain committed to:

Improve our EBITDA margin;

Enhancing our product mix towards higher-value offerings, and

Maintaining execution discipline amidst a dynamic and evolving market environment.

Our strategic initiatives and operational resilience position us well for sustainable growth and value creation in FY 2025–26 and beyond.

(e) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a robust framework of internal controls that are in accordance with the nature and size of the business. The framework addresses the evolving risk complexities and underpins the Companys strong corporate culture and good governance. The Internal Audit plan is approved by Audit Committee at the beginning of every year. The purpose of an internal audit is to examine and evaluate the internal controls and risks associated with the Companys operations. It covers factories, warehouses and centrally controlled businesses and functions.

While these controls comply with the terms of the Companies Act, 2013, they are also regularly tested by statutory and internal auditors for their effectiveness. The framework is a combination of entity level controls that include enterprise risk management, legal compliance framework, internal audit and mechanisms framed under the Code of Conduct, Vigil Mechanism and Whistle-Blower Policy and process level controls, IT-based controls, period-end financial reporting and closing controls. The Company has and organisational structure to ensure smooth conduct of its business.clearly defined

Technologies are leveraged in process standardisation, automation and their controls.

The extensive risk-based process of internal audits and management reviews provides assurance to the

Board with respect to the adequacy and efficacy of internal controls. Internal audit reports are reviewed by the Audit Committee every quarter. Furthermore, the Committee also monitors the management actions implemented as a result of the internal audit reviews. Our Company is mindful of the fact that all internal control frameworks have limitations. Therefore, it conducts regular audits and review processes to ensure that the systems are continuously strengthened to improve effectiveness. The management has evaluated the operative effectiveness of these controls and noted no significant deficiencies or material weaknesses that might impact the financial statements as of 31 March 2025.

(f) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Operational Performance Review – FY 2024-25 vs FY 2023-24

Production and Sales Volumes

1. Steel Segment o Production stood at 37,091.67 MT in FY 24-25 compared to 38,971.58 MT in FY 23-24, reflecting a decline of 4.82%. o Sales volume also fell to 37,257.26 MT from 38,953.61 MT, marking a drop of 4.35%. o The decline in steel volumes indicates challenges in production as well as sales, possibly due to demand moderation, market competition, or operational constraints.

2. Copper Segment o Copper production increased significantly by 13%, reaching 6,589.10 MT compared to 5,830.85

MT in the previous year. o Sales mirrored production growth at 6,589.11 MT, also registering a 13% increase. o This segment provided positive support to overall volumes, partially offsetting the decline in steel.

3. Overall Performance o Total production decreased to 43,680.77 MT from 44,802.42 MT, showing a 2.50% decline. o Sales volumes were 43,846.36 MT, slightly lower than 44,784.46 MT last year, down 2.09%. o Thus, overall performance was mixed, with copper showing strong growth, while steel volumes dragged the aggregate performance.

Financial Performance Review-FY2024-25 vs FY2023-24

1. Revenue from Operations o Revenue surged to 1,04,933.43 lakhs in FY 24-25 from 81,200.73 lakhs in FY 23-24, registering a robust growth of 29.23%. o The strong revenue growth, despite lower total sales volume, indicates improved realizations, better product mix and higher market prices due to increase of raw material prices, especially in the copper segment.

2. EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) o EBITDA declined marginally to 8,020.09 lakhs compared to 8,240.20 lakhs last year, a decrease of 2.67%. o This indicates that although revenue growth was strong, higher operating costs, input costs, or production inefficiencies eroded profitability at the EBITDA level.

3. Net Worth o Net worth increased to 14,541.63 lakhs from 12,061.61 lakhs, an improvement of 20.56%. o This reflects strengthening of the balance sheet on account of retained earnings and improved financial stability.

4. Profit Before Tax (PBT) o PBT rose to 2,480.02 lakhs in FY 24-25 compared to 2,026.61 lakhs in FY23-24, marking a healthy growth of 22.37%. o The rise in PBT, despite lower EBITDA, suggests support from other income, better finance cost management, or lower depreciation impact.

Key Insights

Volume Trend: Copper drove the growth momentum with a double-digit increase, while steel faced contraction, dragging overall volumes down.

Revenue Growth: Strong topline growth highlights favorable pricing and better market conditions, particularly in copper.

Profitability: EBITDA decline points towards cost pressures, but the company managed to deliver higher PBT and strengthen net worth, reflecting efficient financial management.

Strategic Implication: Going forward, stabilizing steel operations while continuing copper growth will be key to sustaining both revenue and profitability.

Conclusion:

FY 24-25 was a year of mixed operational performance with declining steel volumes but strong copper growth. Financially, the company delivered robust revenue growth and improved profitability at the

PBT level, though operational margins (EBITDA) came under slight pressure. Strengthening of net worth is a positive indicator of long-term financial health.

(g) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Talent management has always been the crucial factor for the Company, as your Company believes that its continued success will depend on its ability to attract and retain key personnel with relevant skills and experience. The attrition rate among the Top Management of the Company has been negligible in last many years. The Company has robust process of human resource development. The Company has a HR Policy in place and encouraging working environment. The Company has continued to focus on various aspects like employee training, welfare and safety thereby maintaining a constructive relationship with employees.

The Management had taken all required efforts for prevention of outbreak at work places and Human Resource Department had taken effort in its implementation at all the sites.

During the year under review the Company has employed 37 number of people.

(h) DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING

There is no significant change of 25% or more as compared to the immediately previous financial year in the followingkeyfinancialrations. The company as such have shown improvement in all the parameters, the improvement in the abovementioned financial ratios is evidence for the same. However, said ratios provided to the stakeholders for reference and better understanding purposes.

Particulars	FY 2023-24	FY 2024-25
(i) Debtors Turnover (in times)	8.90	8.43
(ii) Inventory Turnover Ratio (in times)*	15.41	11.92
(iii) Interest Coverage Ratio	1.57	1.69
(iv) Current Ratio	1.47	1.51
(v) Debt Equity Ratio	1.94	1.49
(vi) Operating Profit Margin (%)	6.86	5.78
(vii) Net Profit Margin (%)	2.50	2.36
(viii)sector-specific equivalent ratios, as applicable	NA	NA

Note: * Inventory Turnover Ratio variance is primarily on account of increase in sales along with decrease in average inventory.

(J) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Return on Net-worth for FY2024-25 is 17.05 as compared to previous financial year of 16.80. The reason for such increase is due to increase in revenue from operations and also increase in profit before tax during the year as compared to previous year.

2. DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed the treatment laid down in the Accounting Standards prescribed by the Institute of

Chartered Accountants of India, in the preparation of financial statements. There are no audit qualifications in the Companys financial statements for the year under review. statements, a treatment different from that prescribed in an Accounting Where in the preparation of financial Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

CAUTIONARY STATEMENT

Statement in this Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable Securities Laws and Regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.

Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

For and on behalf of Board of Directors

BEDMUTHA INDUSTRIES LIMITED

 

Sd/-

Kachardas Bedmutha

Chairman

DIN: 00715619

Date: August 07, 2025

Place: Sinnar-Nashik