BEW Engineering Ltd Management Discussions

Pursuant to Regulation 34(2) (e) of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 the Board of Directors are hereby presenting the Management Discussion and Analysis Report.

Forward Looking Statement

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statements are prepared under historical cost convention, on accrual basis of accounting, and in accordance with the provisions of the Companies Act, 2013 (the Act) and comply with the Indian Accounting Standards as pronounced by the Institute of Chartered Accountants of India (ICAI) from time to time. The Management of BEW Engineering Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "BEW" are to "BEW Engineering Limited".

Global Economy Outlook:

The global economic environment in FY25 is defined by a slowdown in growth momentum and heightened policy uncertainty. According to the International Monetary Funds April 2025 World Economic Outlook, global GDP growth is expected to moderate to 2.8 percent in 2025, a decline from 3.3 percent in the previous year. This downturn is largely attributed to a sharp escalation in global trade tensions, most notably the near-universal imposition of tariffs by the United States in April 2025. These trade measures have not only disrupted supply chains but have also dampened investor sentiment, increased financial volatility, and led to a downgrade in trade and investment forecasts worldwide.

While inflationary pressures have eased compared to previous years, global headline inflation is projected to decline at a slower pace than earlier anticipated, settling at 4.3 percent in 2025. Services inflation remains elevated, and core inflation in several economies has seen a modest uptick, reflecting lingering cost pressures and labor market tightness. Advanced economies, including the United States and the Euro Area, are expected to witness subdued growth, while emerging markets and developing economies are also facing significant headwinds, particularly those most exposed to recent trade measures. Notably, China has experienced a downgrade in its growth projections due to ongoing structural adjustments and weak domestic demand.

The IMF underscores that the risks to the global outlook remain tilted to the downside. Intensified trade disputes, further erosion of policy buffers, and tightening global financial conditions could exacerbate existing vulnerabilities, particularly in economies with high debt burdens and limited fiscal space. On the other hand, a coordinated policy approach and a de-escalation in trade tensions could support a more favorable global growth trajectory. Against this backdrop, the global economy stands at a critical juncture, requiring clarity in policy direction, strengthened international cooperation, and sustained efforts to bolster resilience and medium-term growth prospects.

Source: https://www.imf.ora/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025

Indian Economy Outlook

Indias economic performance in FY25 has demonstrated resilience amid global uncertainties, with real GDP growth estimated between 6.3% and 6.5%. This steady growth trajectory is underpinned by robust domestic demand, strategic public investments, and a rebound in key sectors.

Deloittes May 2025 outlook projects Indias GDP growth in the range of 6.3% to 6.5% for FY25, with expectations of 6.5% to 6.7% for FY26. This optimistic forecast is attributed to tax incentives boosting consumer spending and strong domestic demand. However, potential headwinds include global trade uncertainties and the impact of international tariff regimes.

EYs assessment aligns with this outlook, projecting Indias real GDP growth at 6.4% for FY25 and 6.5% for FY26. The firm emphasizes the importance of well-calibrated fiscal strategies that support human capital development while maintaining fiscal prudence to enhance long-term growth prospects.

On the supply side, the agriculture sector is projected to grow by 3.8%, bolstered by favorable monsoon conditions and enhanced productivity in horticulture, livestock, and fisheries. The industrial sector is expected to expand by 6.2%, supported by growth in construction activities and utilities. The services sector continues to be a significant contributor, maintaining its upward trajectory.

Inflationary pressures have moderated, with retail headline inflation softening to 4.9% during April-December 2024. The Reserve Bank of India anticipates aligning consumer price inflation with the target of around 4% in FY26. Fiscal indicators remain robust, evidenced by an 8.2% growth in capital expenditure between July and November 2024. Additionally, gross FDI inflows increased by 17.9% year-on-year, reaching USD 55.6 billion in the first eight months of FY25. Foreign exchange reserves stood at USD 640.3 billion as of December 2024, sufficient to cover 10.9 months of imports and approximately 90% of external debt.

Looking ahead, Indias economic prospects remain favorable, supported by structural reforms, infrastructure development, and a focus on self-reliance. The governments commitment to enhancing the manufacturing sector and fostering innovation positions the country for sustained growth, with aspirations to ascend to the position of the worlds third-largest economy in the coming years.

Source - https://www2.deloitte.com/us/en/insiahts/economv/asia-pacific/india-economic-outlook.html https://www. pib.gov. in/PressReleasePage.aspx?PRID=2113316 https://www.ey.com/en in/services/tax/india-economic-pulse

Global Pharmaceutical Industry

The global pharmaceutical market continues to expand at a robust pace, with its total market size valued at USD 1,661.26 billion in 2023. This figure is projected to rise to USD 1,763.90 billion in 2024 and further reach approximately USD 3,148.31 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.5% over the forecast period. This growth trajectory is driven by increasing healthcare needs, technological innovation, and the rising burden of chronic diseases worldwide.

The COVID-19 pandemic served as a pivotal moment for the industry, accelerating the adoption of digitalization and automation across pharmaceutical operations. Enhanced digital infrastructure has led to greater scalability, operational efficiency, and cost optimization. In parallel, the industry has seen a significant shift toward outsourcing clinical trials and R&D functions to Contract Research Organizations (CROs), enabling pharmaceutical companies to reduce overheads and refocus efforts on core innovation. The integration of big data analytics and artificial intelligence (AI) into drug discovery is also transforming the R&D landscape, enabling faster drug development cycles and laying the groundwork for more personalized medicine.

Despite this optimistic outlook, the industry faces key challenges. A wave of patent expirations between 2023 and 2028 is expected to result in revenue losses estimated between USD 23-28 billion, potentially affecting the earnings of several leading pharmaceutical firms. Nonetheless, such expirations are also expected to open doors for generic drug manufacturers and biosimilar producers.

The Active Pharmaceutical Ingredients (API) market—a critical component of the pharmaceutical value chain—was valued at USD 238.47 billion in 2023, and is forecasted to grow at a CAGR of 6.6% through 2032. The Asia-Pacific region continues to dominate global API production, with China leading as the primary manufacturer and exporter. However, recent geopolitical and supply chain disruptions have prompted governments worldwide to boost domestic API production capabilities, aiming to build pharmaceutical resilience and reduce external dependencies.

Supporting this ecosystem, the Contract Manufacturing Organization (CMO) market—which provides manufacturing support to pharmaceutical firms—was valued at USD 172.8 billion in 2023, and is projected to grow at a CAGR of 7.7% until 2032. Outsourcing to CMOs allows pharmaceutical companies to improve production flexibility, lower operational costs, and scale output to meet dynamic market demands.

Pharmaceutical spending remains elevated across leading global markets. In 2022, per capita pharmaceutical expenditure stood at USD 1,310 in the United States, followed by Germany at USD 883 and Japan at USD 864, illustrating the industrys central role in healthcare ecosystems.

Looking ahead, the global pharmaceutical industry is well-positioned for sustained expansion. With increasing healthcare consumption, rapid advancements in drug development technologies, and evolving global market dynamics, the sector offers substantial opportunities for innovation, investment, and long-term value creation in global healthcare delivery.

Citations: https://www.statista.com/outlook/hmo/pharmaceuticals/worldwide

Indian Pharmaceutical Industry:

Indias pharmaceutical industry is on a dynamic growth trajectory, with the market projected to reach USD 130 billion by 2030. By FY25, the domestic pharmaceutical sector is expected to touch USD 57 billion, accompanied by an anticipated improvement in operating margins of 100-150 basis points. As one of the worlds largest producers and exporters of pharmaceutical products, India continues to play a pivotal role in shaping global healthcare delivery.

The country exports medicines to over 200 countries, fulfilling approximately 50% of Africas generic drug requirements, 40% of the United States demand for generics, and 25% of the medicines consumed in the United Kingdom. Additionally, India supplies nearly 60% of the global demand for vaccines, particularly for essential immunizations such as DPT, BCG, and Measles. Notably, about 70% of the vaccines procured by the World Health Organization (WHO) for its essential immunization programs are sourced from India — highlighting the nations integral role in global public health initiatives.

Between FY18 and FY23, the Indian pharmaceutical sector recorded a compound annual growth rate (CAGR) of 6-8%, driven by a robust 8% growth in exports and 6% growth in domestic consumption. Looking forward, the sector is poised to account for nearly 13% of the global pharmaceutical market, cementing Indias reputation for quality, affordability, and pharmaceutical innovation.

Referred to globally as the ‘Pharmacy of the World, India has built its dominance through a unique blend of cost efficiency and scale. Manufacturing costs in India are 30-35% lower than those in the US and Europe, while R&D spending is roughly 87% lower than in developed economies.

This cost advantage, coupled with a vast pool of skilled professionals, has positioned India as the second-largest contributor to the global pharmaceutical and biotech workforce.

Indias pharmaceutical ecosystem spans a wide spectrum of verticals, including generic drugs, over-the-counter (OTC) medicines, active pharmaceutical ingredients (APIs), vaccines, biosimilars, biologics, contract research, and bulk drug manufacturing. The sectors strength lies in its 118 pharmaceutical manufacturing clusters, spread across 19 states and union territories, with Maharashtra leading with 40 clusters, followed by Gujarat, Andhra Pradesh, Himachal Pradesh, and Telangana. Telangana is also home to the countrys largest MedTech research and manufacturing hub, the Medical Devices Park, which has become a magnet for domestic and international investments.

Looking ahead, Indias pharmaceutical sector is well-positioned not only to meet the rising domestic demand for affordable healthcare but also to expand its global footprint. In FY23, drug and pharmaceutical exports reached INR 2.04 trillion (USD 24.51 billion), representing 5.71% of Indias total exports. Key export destinations include the United States, Belgium, South Africa, the United Kingdom, and Brazil.

In a world where healthcare innovation and accessibility are more critical than ever, Indias pharmaceutical industry stands as a symbol of global leadership, trust, and progress — delivering transformative solutions that improve health outcomes across borders.

Source - https://www.ibef.org/industrv/pharmaceutical-india

https://www.linkedin.com/pulse/future-indian-pharma-opportunities-growth-proiections-bovapati-a3bqc/

Global Pharmaceutical Manufacturing Equipment Market

The global pharmaceutical manufacturing equipment market is poised for significant expansion in the coming decade, driven by increasing demand for quality healthcare products, advancements in pharmaceutical technologies, and the global emphasis on efficient and flexible manufacturing systems. According to Future Market Insights, the market is expected to grow at a compound annual growth rate (CAGR) of 6.4% from USD 14.7 billion in 2024 to approximately USD 27.3 billion by 2034.

This growth trajectory is underpinned by several key factors. The rising global demand for generic medicines, particularly from emerging economies, is creating sustained pressure on pharmaceutical companies to scale up production. Additionally, the need for flexible and modular manufacturing systems—capable of supporting both small-batch precision production and large-scale commercial output—has increased considerably. This shift is especially relevant as drug manufacturers seek to balance speed, compliance, and customization in line with regulatory expectations and evolving therapeutic needs.

Furthermore, the expansion of pharmaceutical manufacturing infrastructure worldwide, including in key regions such as Asia- Pacific, the Middle East, and Latin America, is accelerating the demand for cutting-edge processing equipment. Governments and regulatory authorities across the globe are also actively promoting schemes to enhance pharmaceutical quality standards, enforce Good Manufacturing Practices (GMP), and build domestic capabilities, all of which are fueling investments in modern equipment.

Key Opportunities & Trends

• A major transformational trend in this sector is the adoption of automation and robotics in pharmaceutical manufacturing. These technologies are revolutionizing how drugs are produced—improving operational efficiency, minimizing human error, reducing material wastage, and ensuring consistent product quality. According to Mordor Intelligence, automation-enabled equipment not only enhances compliance with regulatory requirements but also significantly shortens manufacturing cycles, giving companies a competitive edge.

• Another emerging opportunity lies in the integration of artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) within manufacturing ecosystems. These technologies are increasingly being leveraged for predictive maintenance, real-time process monitoring, and data-driven decision-making. AI-driven systems are also facilitating smarter cleanroom designs, autonomous operations, and adaptive control systems that align closely with evolving pharmacovigilance and compliance frameworks.

• The Contract Manufacturing Organization (CMO) segment is also contributing to the rise in demand for high-efficiency pharmaceutical equipment. As more pharmaceutical companies outsource their production to CMOs to lower capital expenditures and improve scalability, there is a growing need for advanced and standardized equipment to meet global quality benchmarks.

Indian Pharmaceutical Manufacturing Equipment Market

Indias pharmaceutical machinery industry is witnessing robust growth, propelled by the rising demand for high-quality pharmaceutical equipment, increasing export opportunities, and a strong push toward self-reliant manufacturing capabilities. The industry is estimated to grow at an annual rate of 15-20%, benefiting from the overall expansion of Indias pharmaceutical and manufacturing sectors.

As the worlds third-largest pharmaceutical producer by volume, India is home to a vast and evolving pharmaceutical manufacturing ecosystem. The country hosts approximately 3,000 active pharmaceutical ingredient (API) manufacturing units, 5,000 formulation plants, and around 2,000 pharmaceutical machinery manufacturers, making it a critical node in the global supply chain.

The sectors growth is strongly supported by increased foreign direct investment (FDI) inflows, government-led production- linked incentive (PLI) schemes, and the emphasis on "Make in India" policies that encourage domestic manufacturing and exports. These initiatives are helping Indian machinery manufacturers upgrade their production capabilities and align with international standards in terms of design, quality, and automation.

A key factor driving this upward trajectory is the growing demand for flexible, modular, and GMP-compliant machinery. As global regulatory requirements become more stringent and pharmaceutical companies shift toward more efficient and agile manufacturing practices, Indian machinery suppliers are adapting rapidly—integrating digital technologies, automation, and precision engineering into their systems.

Additionally, the global rise in generic drug production, offshoring, and contract manufacturing presents a substantial opportunity for Indian machinery suppliers, particularly in emerging markets across Asia, Africa, and Latin America. Indian manufacturers are increasingly exporting to regulated and semi-regulated markets, gaining recognition for their cost-effectiveness, reliability, and compliance-driven solutions.

Major players in the Indian pharmaceutical machinery landscape include ACG, Cadmach Machinery, Shree Bhagwati Pharma Machinery, and SaintyCo, among others. These companies have demonstrated excellence in engineering, end-to-end support, and customization, helping India solidify its position as a hub for pharmaceutical machinery innovation and exports.

Looking ahead, the Indian pharmaceutical machinery industry is expected to continue its growth momentum, playing a vital role in supporting the nations broader pharmaceutical ambitions and its integration into global supply networks.

Source: https://www.pharmaceuticalmachinery.in/pharmaceutical machinery indian market.htm

Filtration & Drying Equipment Market Trends

The global filtration and drying equipment market is witnessing strong growth, driven by rising demand across key sectors such as pharmaceuticals, food and beverages, chemicals, and water treatment. In 2023, the market was valued at approximately USD 1.39 billion and is projected to reach over USD 2.4 billion by 2030, growing at a compound annual growth rate (CAGR) of around 8.5% during the forecast period.

This expansion is largely attributed to the increasing need for high-performance separation technologies that support clean, efficient, and compliant manufacturing practices. As industries intensify their focus on product quality, process safety, and sustainability, the adoption of advanced filtration and drying systems continues to accelerate.

Key Growth Drivers

• The pharmaceutical industry remains a major driver of demand, with filtration and drying equipment playing a crucial role in ensuring sterile production environments, material purity, and regulatory compliance. The growing prevalence of chronic diseases and the rise in global healthcare spending have further amplified the need for efficient pharmaceutical manufacturing technologies.

• In the food and beverage sector, the use of filtration and drying equipment is essential for ensuring hygiene, product consistency, and shelf-life extension. With increasing consumer demand for processed and packaged food, manufacturers are adopting equipment that can deliver both speed and quality.

• Meanwhile, the chemical and specialty chemical industries require robust filtration systems to handle aggressive substances and complex processing conditions. Additionally, the water and wastewater treatment segment is becoming a significant area of growth, driven by rising environmental concerns and investments in sustainable resource management.

Technological Trends and Opportunities

Ongoing innovation is reshaping the landscape of filtration and drying equipment. There is a growing emphasis on systems that incorporate automation, remote monitoring, energy efficiency, and variable operating capacities, enabling greater operational flexibility and long-term cost savings.

Agitated Nutsche Filter-Dryers (ANFDs), in particular, have become integral in pharmaceutical and chemical applications. These systems offer efficient solid-liquid separation, crystallization, washing, and drying within a single closed unit-ideal for handling sensitive or hazardous materials. The ability to maintain an inert atmosphere and ensure uniform drying has made ANFDs a preferred choice among manufacturers focused on product integrity and process reliability.

As the global demand for quality, compliance, and sustainability intensifies, the filtration and drying equipment market is set to benefit from increased capital investments, shifting regulatory frameworks, and the ongoing modernization of manufacturing infrastructure.

Source: https://www.arandviewresearch.com/industrv-analvsis/filtration-drving-equipment-market-report

https://www.marketresearchfuture.com/reports/filtration-drving-equipment-market-30823

https://www.qrandviewresearch.com/horizon/outlook/filtration-and-dryinq-equipment-market/india

https://www.fortunebusinessinsiahts.com/filtration-and-drvina-equipment-market-109525

https://www.polarismarketresearch.com/press-releases/filtration-and-drvina-equipment-market

About BEW Engineering Limited

Incorporated in the year 2011, BEW Engineering Limited ("BEW") is engaged in the design and manufacturing engineers of Pharmaceutical & Chemical plants and process equipments.

BEW designs and manufactures special range of filtration, mixing and drying equipments specifically used in Pharmaceuticals, Sterile Applications, Intermediate Compounds, Fine Chemicals, Specialty Chemicals, Agro Chemicals, Pesticides, Insecticides, Dyes and Food Products. These equipments are manufactured from material such as Stainless Steel, Alloy Steel, etc.

The Companys major products are Agitated Pressure Nutsche Filter Dryer (ANFD), Rotocone Vacuum Filter Dryers (RVFD), Cantilever Rotocone Vacuum Dryer (RCVD), Retractable Plough Shear Mixer Dryer, Agitated Pan Dryer, Rotary Vacuum Paddle Dryer (RVPD) and Spherical Dryer.

The portfolio of products currently includes design and manufacturing of filters and dryers for chemicals industry comprising of Agro Chemicals and Pharmaceutical Industries like API, Bulk Drug and Intermediate Specialty Chemicals.

Having a registered office at Dombivali and being a leading design and manufacturing engineers of Pharmaceutical & Chemical plants and process equipments, the Company has developed long term relationships with reputed and renowned customers globally, which include corporations such as Cipla, Ipca, Lupin, Dr. Reddys, Sun Pharma, SRF, Mylan, Biocon, among others.

Achievements/ Developments during the Year

BEW Advances Global Footprint with Export of ASME "U" Marked Agitated Pressure Nutsche Filter to the USA

- This significant milestone marks a decade of compliance with ASME (American Society of Mechanical Engineers) standards, which demonstrates our capabilities to meet stringent standards set by ASME.

- Since 10 years, BEW has been registered with the National Board for the manufacture of ASME ‘U Marked Equipment, reflecting our dedication to producing pressure vessels and related equipment that meet rigorous global standards.

BEW Introduces High-Efficiency Close Loop Conical Mixer Dryer with Charging Glove Box for leading Domestic Pharma

Manufacturer

- This advanced Cone Mixer Dryer is a low-shear batch mixer dryer designed for efficient and accurate mixing with minimal power consumption.

- It ensures faster and more intensive mixing, making it ideal for a variety of applications, including mixing, heating, cooling, and drying.

BEW Engineering Limited Welcomes NIPRD Team for Insightful Equipment Inspection

- Successful visit of the SA (Admin) to DG/CEO and team from the National Institute of Pharmaceutical Research and Development (NIPRD), Nigeria, to our manufacturing facility.

- During their time at the facility, the teams engaged in valuable discussions that addressed technical queries and confirm that the equipment manufactured by BEW would fully meet their project requirements. This opens up a new market for us.

BEW Delivered Cutting-Edge Sterile/Containment Suitable Cantilever Rotocone Vacuum Dryer

- The Cantilever Rotocone Vacuum Dryer is of 250 Liters working capacity 500 Liters (Gross Capacity) designed for optimal performance in containment/cleanroom applications

BEW Engineering Limited launches Cutting-Edge 96-Tray Vacuum Tray Dryer (VTD) with Halar Coating

- This latest supply is designed to meet the specific demand of handling corrosive powder during drying- a customized solution.

- The Vacuum Tray Dryer (VTD), which ensures accurate and effective moisture removal under controlled vacuum conditions, is an essential component of industrial drying processes mainly in Pharmaceutical Industry.

BEW Engineering Limited Delivered Advanced Lab-Scale Equipment to Enhance Clients R&D Capabilities

- BEW Engineering recognizes the importance of research and development in creating efficient and reliable solutions and is proud to contribute to the advancement of its clients R&D efforts.

- These compact models are designed to play a crucial role in product development, process optimization, and R&D activities.

- Lab- Scale Equipment Details are as follows:

- ANFD (Agitated Nutsche Filter Dryer) 5 Litres Capacity

- Cantilever type RVPD (Rotary Vacuum Paddle Dryer) 5 Litres Capacity

- APD (Agitated Pan Dryer) 5 Litres Capacity

BEW Engineering Manufactured Fully Integrated 3 KL Rotocone Vacuum Dryer System for Pharmaceutical Applications

- This integrated system has been engineered to deliver exceptional drying performance, energy efficiency, and process reliability, aligning with global pharmaceutical manufacturing standards. In brief, RCVD with Hot Water System, Vacuum Pump, Condenser & Receiver, PLC, HMI, etc.

Financial Overview

The consolidated performance of the Company for the financial year ended March 31, 2025, is as follows:

• Total revenue from operations was at 134.36 crore for the year ended March 31, 2025, as against 120.76 crore for the corresponding previous period, an increase of 11.26%.

• The EBIDTA (earnings before interest, depreciation and tax) was 20.40 crore for the year ended March 31, 2025, as against 23.91 crore for the corresponding previous period.

• The PAT (profit after tax) was 12.16 crore for the year ended March 31, 2025, as against 13.56 crore for the corresponding previous period.

• The EPS (Earning Per Share) for the financial year ended March 31, 2025 was 9.30 for a face value of 10 per share, as against 46.56 for the corresponding previous period.

Resources and Liquidity

As on March 31, 2025, the consolidated Networth stood at 134.22 crore and the consolidated net debt was at 56.39 crore.

The net debt to equity ratio of the Company stood at 0.41 as on March 31, 2025.

Risks and Concerns

The Company has laid down the procedure to inform the Board about the risk assessment and minimization procedures. The Board reviews these procedures annually to ensure that there is timely identification and assessment of risks, measures to mitigate them, and mechanisms for their proper and timely monitoring and reporting.

The Company is concerned about prevailing exposure norms, financial position, entry of new players in the market, rising competition from banks & multilateral agencies, uncertain business environment, fluctuation in rupee, likely increase in cost of capital due to volatile market conditions. Further, the state of business and policy environment in the country also has a cascading effect on the interest-rate regime, cost and availability of raw materials and gestation period & capital outlays required for raw material. General economic conditions may also affect the capacity and production of the manufacturing of the products.

Regulatory developments

The Company is regulated by the Companies Act and some of its activities are subject to supervision and regulation by statutory and regulatory authorities. It is therefore subject to changes in Indian law, as well as to changes in regulation and government policies and accounting principles.

Credit Risk

To manage its credit exposure, BEW Engineering Limited has determined a credit policy with credit limit requests and approval procedures. The Company does its own research of clients financial health and project prospects before entering into an agreement with them. Timely and rigorous process is followed up with clients for payments as per schedule. The Company has suitably streamlined the process to develop a focused and aggressive receivables management system to ensure timely collections.

Interest Rate Risk

The Company has judiciously managed the debt-equity ratio. It has been using a mix of loans and internal cash accruals. The Company has well managed the working capital to reduce the overall interest cost.

Competition Risk

The Company faces significant competition from other Companies operating in the markets in India in which we operate. Some of these firms have greater resources and/or a more widely recognised brand than we have, which may give them a competitive advantage. Our ability to grow revenues will depend on demand for our services in preference to those of its competitors.

Internal Control Systems and Adequacy

Our Company has in place adequate systems of internal control. These have been designed to provide reasonable assurance with regard to maintaining the proper accounting controls, efficiency of operations, protecting assets from unauthorized use or losses and ensuring reliability of financial and operational information. Our Company continues its efforts to align all its process and control with best practices and is controlling its operating process through well-defined various international standard certification and accreditation. Some significant features of the internal control systems are preparation and monitoring of annual budgets, internal audit and its review, clear delegation of authority and responsibility, corporate policy on accounting and periodic management meeting to review operation and plans in business areas.

The Company has also implemented effective systems for achieving highest level of efficiency in operations, to achieve optimum and effective utilization of resources, monitoring thereof and the compliance with provisions all laws.

Human Resources

We believe that a good Human Resource Policy is very effective for supporting and building the desired organization culture and to maintain the same in our Company is taking actions on the day-to-day problems of the organization. The Company continues to focus on creating strong and long-term relationship with all employees as employee retention and development are among the highest priorities of the Company.

The Company is working on enhancing its competencies to take care of the current and future business. Its employee strength as on March 31, 2025 was 72 and 10 number of the contractors to execute the assignment of the Company. Human Resource and Industrial Relations departments have developed systems and policies on recruitment, performance management, learning and development, and employee engagement. Providing and ensuring health, safety, and environment for all became an imperative and required significant commitment more than ever before under the new pandemic situation.

The manpower is a prudent mix of experienced and young professionals which gives us the dual advantage of stability and growth. The work progress and skilled/ semi-skilled/ unskilled resources, together with the Companys strong management team, have enabled it to successfully implement our growth plans.

Outlook

Indias pharmaceutical industry continues its upward momentum, emerging as a global cornerstone in affordable healthcare solutions and reliable drug manufacturing. In FY25, the sector maintained strong growth, supported by resilient domestic demand and sustained global exports. India accounted for a significant share of global generic drug supply and remained the largest provider of vaccines worldwide, reinforcing its status as a trusted partner in public health. With an expansive base of formulation and API units and the highest number of USFDA-compliant manufacturing facilities outside the United States, India is deepening its integration with international healthcare systems.

In addition to traditional strengths, India is increasingly becoming a hub for high-value pharmaceutical segments such as biologics, contract manufacturing, and complex generics. This diversification, along with regulatory alignment and rising investment in pharmaceutical infrastructure, is positioning the country for long-term leadership in the global life sciences value chain.

Concurrently, the filtration and drying equipment market experienced a strong tailwind in FY25, driven by rapid expansion in the pharmaceutical, chemical, specialty chemical, and water treatment industries. The global market, valued at over USD 1.39 billion in 2023, is projected to grow at a CAGR of 8.5% through 2030, supported by the need for high-efficiency, integrated equipment that aligns with the evolving regulatory standards and manufacturing protocols.

Technologies like Agitated Nutsche Filter-Dryers (ANFDs), Rotary Vacuum Paddle Dryers (RVPDs), and Fluid Bed Dryers are now essential in modern manufacturing settings. ANFDs, in particular, are being widely adopted for their ability to combine multiple functions—filtration, washing, drying, and crystallization—into one compact, closed system. These systems support safer handling of sensitive materials, reduce contamination risks, and optimize throughout. The increased demand for such systems, particularly in export-oriented pharma and chemical manufacturing units, is driving equipment modernization in both domestic and international markets.

Indias own demand for process equipment is steadily rising, though the penetration rate remains relatively modest. European suppliers, traditionally leaders in this segment, continue to be less accessible due to cost and lead-time challenges. This has opened the door for high-quality Indian manufacturers to lead the next wave of equipment supply, especially as agrochemical and specialty chemical sectors register solid growth. Additionally, emerging regulatory frameworks focused on environmental compliance, process standardization, and GMP adherence are reinforcing the need for advanced, scalable solutions.

Amidst these favorable industry dynamics, BEW Engineering Limited delivered a noteworthy performance in FY25, underscoring its commitment to precision engineering and customer-focused innovation.

The Company crossed a major milestone with revenues exceeding 134.36 crore, driven by strong order inflows, timely execution, and expansion into new geographies. I am pleased to share several important milestones that BEW Engineering Limited has accomplished during the fiscal year 2024-25, reflecting our commitment to innovation, operational excellence, and sustained value creation for our stakeholders.

In a move to reward our shareholders, the Board of Directors approved a bonus issue in the ratio of 3:1, whereby shareholders received three additional fully paid-up equity shares of 10/- each for every one share held by them. The record date for this bonus issue was October 25, 2024, demonstrating our ongoing efforts to enhance shareholder value and broaden market participation.

> On the business development front, we secured a significant domestic order worth 25 crore from a globally recognized enterprise. This order affirms our strong capabilities in delivering precision-engineered, customized process equipment that aligns with the highest standards of quality and industry compliance.

> Further strengthening our global presence, BEW Engineering successfully bagged an export order from Italy, marking a strategic step in expanding our footprint in the European market. This accomplishment not only reinforces our position as a reliable global partner but also validates the competitiveness and trust our brand commands internationally.

> In line with our focus on continuous innovation, we introduced our 96-Tray Vacuum Tray Dryer with Halar Coating—a state- of-the-art product developed to meet the stringent operational and regulatory requirements of the pharmaceutical and chemical sectors. This reflects our ongoing commitment to engineering excellence and providing solutions that address real-world challenges faced by our clients.

These achievements have significantly bolstered our order book and further solidified BEW Engineerings position as a leader in the design and manufacturing of specialized process equipment. We remain dedicated to driving growth, fostering innovation, and delivering long-term value across every aspect of our business. BEW Engineering Limited is well-positioned to capitalize on opportunities arising from industry growth and regulatory developments. Our commitment to innovation, customer-centricity, and operational excellence will drive sustainable growth and value creation for our shareholders.

Changes in Key Financial Ratios:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

Key Financial Ratio		FY 2024-25	FY 2023-24
1. Debtors Turnover Ratio	%	5.05	13.08
2. Inventory Turnover Ratio	%	0.88	0.74
3. Interest Coverage Ratio	%	5.61	5.21
4. Current Ratio	%	2.48	1.65
5. Debt Equity Ratio	%	0.41	0.98
6. Operating Profit Margin	%	11.95	15.05
7. Net Profit Margin	%	8.97	11.24
8. Change in Return on Net Worth	%	9.06	20.18

‘Previous years Figures have been regrouped / rearranged wherever necessary

For & on behalf of the Board of Directors of
BEW Engineering Limited
Rohan Prakash Lade	Ratnakar Venkappa Rai
Managing Director	Independent Director
DIN: 00460811	DIN: 00126309
Place: Mumbai	Place: Mumbai
Date: August 28, 2025