I. Overview
The purpose of this report is to present Managements insights into the external environment and the industry, alongside discussions on strategy, operational and financial performance, key developments in human resources and industrial relations, as well as an assessment of risks, opportunities, and the adequacy of internal control systems during the Financial Year 2024-25. It should be reviewed in conjunction with the Companys financial statements, including schedules, notes, and other sections of the Integrated Report and Annual Accounts for 2024-25.
The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), adhering to the requirements specified under the Companies Act, 2013, as amended, and regulations prescribed by the Securities and Exchange Board of India (SEBI).
II. External Environment
1. Global Economy
The global economy grew by 2.8% during FY 2024, although the growth was not the same in all regions. There were some positive signs, like lower inflation and easier monetary policies in many countries. However, concerns about trade policies and ongoing conflicts continued to affect global economic confidence. The world economy is expected to keep growing in 2025. Tariffs are becoming less intense in many areas, but important developments such as trade agreements between major economies like the United States, United Kingdom, European Union, China, and others, as well as a possible ceasefire between Russia and Ukraine will play a big role in shaping global economic activity.
Outlook
According to the IMFs projections, global economic growth is anticipated to remain steady at the 2023 level of 3.2% throughout 2024 and 2025. Concurrently, global headline inflation is expected to decline from 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in 2025. The IMF foresees advanced economies achieving their inflation targets ahead of their emerging and developing counterparts. In 2024, several countries are scheduled for elections, potentially providing a short-term fiscal stimulus to their economies. As the disinflation process progresses, central banks may consider reducing rates in the latter half of the year to support economic stability.
The IMF expects global GDP growth to slow to 2.8% in 2025 and 3% in 2026. While this is slower than normal long-term growth, its still better than the levels usually seen during a recession. These forecasts were made before the U.S. announced some reductions in tariffs. So, while the general direction of the IMFs outlook is useful, the numbers might change once the global trade situation becomes clearer.
The IMF anticipates that advanced economies will adopt a more restrictive fiscal policy stance starting in 2024 and continuing into the future. This adjustment is reflected in projections for the structural fiscal balance as a percentage of GDP, which is expected to notably increase in both the US and the Euro area. Meanwhile, emerging markets and developing economies are likely to maintain a generally neutral policy stance in 2024, with a slight inclination towards tightening in 2025.
Trade policy effects are deemed by the IMF to be adverse almost across the world, with more severe impacts on the US and China, which are the most affected by tariff escalations. Tariffs could push inflationary tendencies in the US, complicating the future trajectory of US Fed rates. The Fed has adopted a wait-and-watch stance amidst the risks to both sides of its mandate, viz. inflation and employment, and indicated that it would wait for more data on the economys direction before changing interest rates.
The progress on disinflation has mostly been stalled, and inflation has edged upward in some cases, with an increasing number of countries exceeding their inflation targets. The tariffs are expected to mount these pressures and will put a question mark on future monetary easing by the US Federal Reserve.
2. Indian Economy
India is one of the fastest-growing major economy. It demonstrated a growth rate of 6.5% in FY2024-25. Despite global headwinds, Indias growth is expected to remain rangebound, 6% - 6.5%, in the next couple of years. The economy is expected to be driven by strong domestic consumption, government capital expenditure, and robust expansion in the services and manufacturing sectors.
The Indian economy has shown considerable resilience amid global challenges. After a sluggish start to the financial year, growth gained momentum in the latter half. GDP growth rebounded to 6.2% in the OctoberDecember quarter, up from a seven-quarter low of 5.6% in JulySeptember, driven by a pickup in both government and private consumption. With a full-year GDP growth projection of 6.5%, this implies a robust 7.6% growth in the JanuaryMarch quarter. Rural demand continues to hold firm, while urban consumption is steadily improving, supported by a rise in discretionary spending. Investment activity has strengthened, buoyed by higher capacity utilisation, sustained government focus on infrastructure, healthier balance sheets in the banking and corporate sectors, and easing financial conditions.
Indias economic prospects remain resilient, supported by strong domestic demand, proactive policy interventions, and the stability of key sectors. Strengthening trade partnerships with advanced economies is expected to further accelerate growth, with the IndiaUK trade agreement serving as a promising example. By harnessing its internal strengths and advancing strategic reforms, India is well-placed to overcome global uncertainties and sustain its progress as a prominent player in the global economic landscape.
III. Industry Structure and developments:
India remains the worlds second-largest steel producer and a major force driving global demand. Steel consumption in the country is expected to rise by 8% in 2025, driven by strong momentum in steel-intensive sectors. By 2030, demand is projected to reach between 200 and 210 million tonnes, supported by substantial growth in infrastructure, housing, transportation, power, and renewable energy development.
1. Our Business:
Bharat Wire Ropes Limited ("the Company") is a leading steel wire rope manufacturing company established in the year 1986. Wire ropes are a value-added product, formed from wire rods, which falls in the long steel category of steel products. Over the years, with significant improvement in the strength of steel wire ropes manufactured, the usage of these steel wire ropes has significantly increased in various diverse applications.
The wire ropes, Slings, Spiral Strands are used in general engineering, fishing, elevators, cranes, material handling, power transmission, suspension bridges, onshore / offshore oil exploration, ports and shipping, mining, defence, railways and allied industries. The Company caters to a rich mix of clients ranging from Overseas Consumers, Private Players, Government and Semi - Government Organizations. Providing service to a variety of clients has helped the company develop versatility which makes it better equipped to handle diverse / heterogeneous kinds of enquiries.
2. Segment-wise or Product-wise performance:
The Company is engaged solely in the business of manufacture and sale of Wire & Wire Ropes.
3. Business Strategy: i. Expansion of Companys presence in the domestic markets:
The Company is actively pursuing marketing initiatives to broaden and strengthen its footprint in current business sectors. By targeting markets where it can offer cost-effective, cutting-edge products, the Company aims to establish closer relationships with key end-users, enhancing client engagement significantly. Additionally, the Company has achieved BIS certifications for steel wire ropes and strands, among other products, and has secured approvals from major engineering consultants and equipment suppliers, underscoring its commitment to quality and industry standards. These efforts reflect the Companys proactive approach to expanding its market presence and fostering trusted partnerships in the industry.
ii. Focus on development of international markets for the Companys Products:
The Company is actively focusing for distribution of its products across Europe, the US, the Middle East, Nepal, New Zealand, Australia, Singapore, South Africa, Vietnam, and other key markets. Leveraging state-of-the-art machinery from South Korea and Germany, the Company remains at the forefront of global competition, ensuring cutting-edge technology in its operations.
iii. Strengthening of product portfolio and developing capabilities to manufacture a wider range of products:
The company has strengthen the product portfolio by developing capabilities to manufacture a wider range of products. To provide quality product at reasonable prices has always been the ultimate aim of the Company. The Company manufacture all wires at its plant in Chalisgaon, thereby eliminating the dependency on the limited types of wires available in the market and enabling the Company to manufacture and offer an increased range of high quality wire rope products, including but not limited to marketing high performance crane ropes for ports, large diameter spiral strands for structures and bridges, elevator ropes, high performance mining ropes, long-life-cycle fishing ropes, onshore and offshore ropes, swaged ropes and special ropes for construction sector. Further, strategic efforts have been made to focus on improving marketing enhancing productivity and maximizing plant utilization by minimizing wastage, reducing material holding costs and focusing on sustainable operations. We continue to create consistent value through capacity expansion, technological innovation, and sustainable manufacturing techniques.
iv. Meeting Quality Standards and developing customer focus:
In our commitment to sustaining a globally respected reputation, we have purposefully expanded our product range and strengthened our market reach. Our products are precisely designed and undergo thorough quality inspections throughout every stage of production, ensuring optimal safety and alignment with top-tier industry standards. Backed by a robust technical support network, we provide customized solutions tailored to individual client needs, drawing on the capabilities of our modern manufacturing infrastructure and highly experienced R&D teams. Our technically proficient team is dedicated to achieving zero defects and minimizing rejections. With robust testing facilities in place, all products undergo thorough scrutiny before leaving our factory, ensuring minimal grievances and enhancing customer satisfaction.
Developing a strong customer focus means aligning our operations, strategies, and innovations with the needs and preferences of our customers. By actively listening to feedback, personalizing solutions, and ensuring consistent service quality, we aim to build lasting relationships and enhance overall customer satisfaction ultimately driving business growth and loyalty.
Chalisgaon Plant:
Plant is fully integrated and synchronized to manufacture value added ropes ranging from 6 mm to 100 mm with various type of rope construction Company has been accredited with ISO 9001, ISO 14001 and ISO 45001 certifications by TUV SUD South Asia Private Limited.
Company holds approvals of LLOYDS Register, Bureau of Indian Standards (BIS) to put ISI mark on the products confirming to IS: 2266,IS:2365, IS: 4521, IS: 1835, IS 1855, IS 1856 & IS: 10891/Part 1. Company also has CE Certification for Chalisgaon Plant.
Atgaon Plant:
Company has been accredited with ISO 9001 certification by TUV SUD South Asia Private Limited for our Atgaon plant. Plant is approved by Central Organization Railway Electrification (CORE) Research Designs &Standards Organization (RDSO), Power Grid, defense applications, certificate from Indian Register of Shipping for Manufacturer of Steel Wire Ropes etc.
IV. Opportunities and Threats
Massive investments in roads, bridges, ports, metros, airports, and smart cities create a consistent demand for steel wire ropes used in construction, lifting, and support applications. Schemes like Make in India, Atmanirbhar Bharat, Infrastructure development promote domestic manufacturing and boost demand for industrial inputs like wire ropes. Growth in sectors such as mining, shipping, oil & gas, power transmission, and railways requires heavy-duty ropes for operations, offering long-term volume growth. Innovations in coating, tensile strength, corrosion resistance, and safety features allow companies to develop value-added and specialized wire ropes for high-performance applications.
Fluctuations in the prices of steel, carbon, and alloy wires directly affect production costs and profit margins. In India, low-cost, unregulated players pose a pricing threat to organized manufacturers, especially in price-sensitive markets. Cheap imports from countries like China can undercut local players, particularly in segments like general-purpose ropes or coated variants. Since wire ropes are largely tied to sectors like construction, mining, and shipping, economic downturns or infrastructure delays can impact demand.
V. Risks and Concerns
In todays increasingly volatile global environment, geopolitical conflicts represent a critical risk to Bharat Wire Ropes Limiteds international operations. Heightened tensions can trigger trade restrictions, sanctions, tariffs, and disruptions in cross-border logisticsall of which can hinder its ability to serve international customers. These risks are further intensified by unstable foreign exchange rates and rising protectionist policies, which could significantly affect both procurement costs and export competitiveness. Moreover, global instability often disrupts supply chain continuity and limits expansion into new markets, constraining Bharat Wire Ropes growth potential.
The domestic steel sector in India is particularly vulnerable to the influx of lower-cost imports and shifts in demand dynamics. Cheaper imports have the potential to erode market share, revenue, and profit margins for Bharat Wire Ropes Limited. However, the company can mitigate these challenges by enhancing product quality, optimizing its supply chain, and expanding its customer base.
We operate in a dynamic environment which not only provides opportunities but also exposes the business to various risks. To proactively identify and manage key risks for achieving our strategic objectives. Growth of the sector is depended on the enlargement of allied sectors. Forecasted plans and projections are subject to risk. Various kinds of risk associated with the development are Liquidity Risk, Market Risk, Regulatory Risk, Financial Risk, Market Risk and Operational Risk. Other dominant threats faced by the Company are in the form of competition it faces in the industry. In particular, the Company competes with other wire rope manufacturing companies, both in India and abroad, on the basis of a number of factors, including but not limited to quality, time of delivery and price. Fluctuations in the price, availability and quality of raw materials used in our manufacturing process could have a material adverse effect on cost of sales or the Companys ability to meet customer demands. There can be no assurance that the Company will always be successful in its efforts to protect the business from the volatility of the market price of raw materials, and the business can be affected by dramatic movements in prices of raw materials.
Risk is the vital factor of every business. The Company has in place a Risk management Committee which outlines the amount of risk involved in the business and various techniques for risk mitigation & Risk minimization. The Company believes that managing risks helps in maximizing returns. The Companys approach for addressing business risks is comprehensive and includes identification of Risks, periodic review of such risks and measures to for mitigating such risks.
VI. Internal Control System and their adequacy:
Company has in place robust Internal Control system to maximize the effectiveness and efficiency by including activities that are tailored to the nature, size and complexity of the entity. The Company follows proper hierarchy for reporting of routine activities. Direct access to the senior Management is available in extreme cases. The Company has framed whistle blower policy to report concerned areas to the Management.
The Companys internal control system commensurate with the size, scale and complexities of its operations. The Audit Committee actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.
The Company has appointed an independent firm of chartered accountants to monitor the internal audit of its activities, based on an internal audit plan, which is reviewed each quarter in consultation with the statutory auditors and approved by the audit committee.
Management is responsible for establishing and maintaining internal financial controls. The Company has adequate Internal Control system with reference to financial statements and to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
Bharat Wire Ropes Limited has upgraded its Governance, Risk, and Compliance system, reinforcing its ability to monitor and manage controls effectively. The Management conducted a comprehensive review of the internal financial controls and updated the risk control matrix, ensuring alignment with leading industry practices.
These collective efforts have strengthened the Companys control environment, ensuring operational efficiency, timely identification of control gaps, and continued support for Companys strategic growth objectives.
VII. Internal Audit
Internal Audit at the Company is an independent and objective activity designed to provide assurance to senior management and add value by identifying opportunities to deliver business benefits and improvements to internal controls. It helps us accomplish our objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of processes, controls, and governance. The internal audit function carries out a focused and risk-based annual internal audit plan approved by the Audit Committee.
VIII. Financial Performance:
The Financial statements of the Company are prepared in Compliance with the Companies Act, 2013 and significant accounting policies used for the preparation of financial statements are disclosed in the notes to financial statement.
Historical Financial Performance (Rs. in Lakhs) | |||
Particulars |
FY25 | FY24 | FY23 |
Revenue from Operations |
61,931.62 | 62,183.53 | 58,906.45 |
Total Expenses | 48693.10 | 45,782.07 | 45,024.78 |
EBITDA |
13238.52 | 16,401.46 | 13,881.67 |
EBIDTA Margins (%) | 21.38% | 26.38% | 23.57% |
Depreciation and amortisation expenses | 2202.58 | 2,116.36 | 2,065.68 |
Finance Cost | 1,332.89 | 1,478.63 | 2,219.89 |
Other Income | 79.28 | 82.16 | 66.93 |
PBT |
9782.33 | 12,888.63 | 9,663.03 |
Tax | 2538.32 | 3,254.41 | 3,437.87 |
PAT |
7,244.01 | 9,634.22 | 6,225.16 |
PAT Margins (%) | 11.70% | 15.49% | 10.57% |
Other Comprehensive Income | (18.65) | (31.55) | 189.21 |
Total Comprehensive Income |
7225.36 | 9,602.66 | 6,414.37 |
Diluted EPS | 10.60 | 14.17 | 9.68 |
Revenue from Operations:
Revenue for the year is lower by 0.4% YOY basis on account of decrease in sales realization due to global geo political situation.
Profit before Depreciation, Financial Cost, Exceptional Items and Tax (PBIDT):
PBIDT is lower on account of decrease in sales realization and less margins as compared to previous year.
Finance Cost:
Finance cost has decreased on account of decrease of borrowings.
Ratios: |
|||
Ratios |
FY 2024-2025 | FY 2023-2024 | Variance |
Debtors Turnover Ratio | 6.81 | 8.96 | -24.06% |
Inventory Turnover Ratio | 3.11 | 3.13 | -0.90% |
Current Ratio | 4.57 | 7.55 | -39.51% |
Debt Equity Ratio | 0.18 | 0.2 | -11.10% |
Interest Coverage Ratio | 9.99 | 11.15 | -10.40% |
Operating Profit Margin (%) | 17.95% | 23.10% | -22.30% |
Net Profit Margin (%) | 11.70% | 15.49% | -24.50% |
Return on Net worth | 10.37% | 15.78% | -34.60% |
1. Net Profit has reduced on account of reduction net sales realisation, increase in manpower cost and fuel cost.
2. Return on equity/ Return on Net worth reduced on account of reduction in profitability.
3. Current ratio decreased on account of increase in utilization of short term borrowings and availment of extra credit from suppliers to fund increase of current assets.
4. Trade Receivable Turnover ratio/Debtors turnover ratio variation is on account of increase of debtors at the year end.
Historical Balance Sheet | |||||||
Particulars |
FY25 | FY24 | FY23 | Particulars |
FY25 | FY24 | FY23 |
Equity |
73,657.70 | 66,079.63 | 56,016.87 | Non-Current Assets |
54,111.19 | 50,263.00 | 50,691.19 |
(a) Equity Share Capital | 6,844.89 | 6,804.20 | 6,789.75 | (a) Property, Plant and Equipment | 48,267.60 | 47,499.62 | 48,089.27 |
(b) Other Equity | 66,812.81 | 59,275.44 | 49,227.12 | (b) Capital Work in Progress | 4,689.66 | 1,232.02 | 306.21 |
Non-Current Liabilities |
12,844.14 | 13,054.84 | 14,916.04 | (c) Other Intangible Assets | 83.41 | 26.03 | 29.35 |
(a) Financial Liabilities | (d) Intangible Assets under Development | - | 48.84 | 43.00 | |||
(i) Borrowings | 7,736.11 | 10,476.93 | 14,266.44 | Other Financial Assets | 410.85 | 437.35 | 441.02 |
(ii) Other Financial Liabilities | 326.00 | 372.56 | 368.63 | (f) Deferred Tax Assets (Net) | - | - | 1,422.81 |
(b) Provisions | 427.97 | 383.05 | 280.98 | (g) Other Non-Current Assets | 659.68 | 1,019.13 | 359.52 |
(C) Deferred Tax Liabilities (Net) | 4,354.06 | 1,822.30 | - | ||||
Current Liabilities |
9,076.15 | 4,405.80 | 7,185.53 | Current Assets |
41,466.80 | 33,277.28 | 27,427.26 |
(a) Financial Liabilities | (a) Inventories | 12,323.91 | 9,858.42 | 11,006.81 | |||
(i) Borrowings | 5,366.91 | 2,745.90 | 3,902.97 | (i) Trade Receivables | 8,671.28 | 7,915.70 | 4,766.90 |
(ii) Trade Payables | 1,656.21 | 588.52 | 1782.16 | (ii) Cash and Cash Equivalents | 7.58 | 5.62 | 3.81 |
(iii)Other Financial Liabilities | 408.60 | 11.53 | 10.2 | (iii) Other Bank Balances | 927.85 | 826.18 | 869.06 |
(b) Other Current Liabilities | 1,546.63 | 991.56 | 1,443.67 | (iv) Other Financial Assets | 132.39 | 110.60 | 86.51 |
(c) Provision | 97.80 | 68.29 | 46.54 | (c) Other Current Assets | 19,403.79 | 14,560.76 | 10,694.17 |
TOTAL EQUITY AND LIABILITIES |
95,577.99 | 83,540.28 | 78,118.45 | TOTAL ASSETS |
95,577.99 | 83,540.28 | 78,118.45 |
IX. Human Resource:
Human Resources are capital of the Company. It could be invested through education and training which leads to an improvement in the quality and level of production. The Company has always given importance for developing individuals as well as teams. The system followed is transparent and performance based and it endeavors to retain, develop and provide better working environment to the employees by providing an atmosphere of trusteeship, competition and challenge, thereby providing opportunities for personal and professional growth through training and ample career enhancement opportunities. The Company organizes and provides requisite training to its employees from time to time and periodical appraisal and rewarding systems are in put well in place.
As on 31st March, 2025, the number of permanent employed is 529 and there were 768 employees in contract basis and others.
Bharat wire ropes Limited has shown full commitment towards employees, investors, contractors, consultants and all related personnel by providing safe-working conditions along with other welfare measures.
X. Forward Looking statement
This document contains forward-looking statements relating to the anticipated future performance, financial outcomes, and operational developments of Bharat Wire Ropes Limited. These statements are inherently predictive in nature and involve certain assumptions, estimates, and expectations that are subject to known and unknown risks, uncertainties, and other factors beyond the Companys control. As such, actual results or developments may differ materially from those expressed or implied in these statements.
Readers are advised not to place undue reliance on forward-looking statements. Several factors including economic conditions, regulatory changes, market dynamics, and internal performance could cause actual outcomes to vary significantly from those projected.
These forward-looking statements are qualified in their entirety by the assumptions, disclaimers, and risk factors detailed in the Managements Discussion and Analysis section of Bharat Wire Ropes Limiteds Annual Report for FY 202425, which should be read in conjunction with this document.
For Bharat Wire Ropes Limited | For Bharat Wire Ropes Limited |
Murarilal Mittal |
Mayank Mittal |
Managing Director |
Joint Managing Director |
DIN: 00010689 |
DIN: 00127248 |
Date:11th August, 2025 |
|
Place: Mumbai |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.