Bhatia Colour Chem Ltd Management Discussions

This Report contains forward-looking statements that involve risks and uncertainties. When used in this Report, the words anticipate, believe, estimate, expect, intend, will and other similar expressions as they relate to the Company and/or its Businesses are intended to identify such forwardlooking statements. The Company undertakes no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forwardlooking statements that speak only as of their dates. This report should be read in conjunction with the financial statements included and the notes.

INDUSTRY STRUCTURE AND DEVELOPMENT

1. GLOBAL SCENARIO • Global Economic Scenario

The Indian chemicals industry is highly diversified, covering more than 80,000 products and employing more than 2 million people. A network of 200 national laboratories and 1,300 R&D centres provides a strong base to the Indian chemical industry to drive innovations. The chemical industry is expected to contribute US$ 300 billion to Indias GDP by 2025.

Globally, India is the third-largest consumer of polymers, fourth-largest producer of agrochemicals and sixth largest producer of chemicals. The Indian chemicals industry makes up 3.4% of the global chemicals industry. Indias chemical sector, which was estimated to be

worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.

India has traditionally been a world leader in generics and biosimilar and major Indian vaccine manufacturers, contributing more than 50% of the global vaccine supply.

The Indian specialty chemicals sector is expected to increase at a CAGR of 12.4%, from US$ 32 billion in 2019 to an estimated US$ 64 billion by 2025. Also, ICRAs ratings indicate improved exports and a positive outlook for agrochemicals and surfactants. On February 15th, 2023, Indian Specialty Chemical Manufacturer Association (ISCMA) signed an MoU with USIIC to promote trade in specialty chemicals. According to a report by the Agro Chem Federation of India (ACFI) and EY Indias agrochemical exports are projected to exceed Rs. 80,000 crore (US$ 9.61 billion) by 2028.

India is the world leader in dye manufacturing, accounting for 16%-18% of global dyestuff exports. The Indian Dye is exported to 90+ countries. From April to November 2024. Indias dye exports (Dyes and Dye Intermediates) totalled Rs. 14,712 crore (US$ 1.70 billion).

Major chemical production reached 1,008.9 thousand metric tonnes in December 2024, while petrochemical production reached 1,840.22 thousand metric tonnes. In December 2024, production levels of various chemicals were as follows:

• Soda Ash: 295.65 (000 MT)

• Caustic Soda: 319.48 (000 MT)

• Liquid Chlorine: 218.20 (000 MT)

• Formaldehyde: 28.06 (000 MT)

• Pesticides and Insecticides: 18.49 (000 MT)

Indias proximity to the Middle East, the worlds source of petrochemicals feedstock, enables

it to benefit on economies of scale.

Notes: GDP: Gross Domestic Product, FDI: Foreign Direct Investment, CAGR: Compounded Annual Growth Rate

Source: Department of Chemicals and Petrochemicals, Nirmal Bang Group

• Textile Auxiliaries Market Segment analysis:

• The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030. Moreover, India is the worlds 3rd largest exporter of Textiles and Apparel. India ranks among the top five global exporters in several textile categories, with exports expected to reach US$100 billion.

• The textiles and apparel industry contributes 2.3% to the countrys GDP, 13% to industrial production and 12% to exports. The textile industry in India is predicted to double its contribution to the GDP, rising from 2.3% to approximately 5% by the end of this decade.

• Textile manufacturing in India has been steadily recovering amid the pandemic. The manufacturing of textiles Index for the month of June 2024 is 106.

• Global apparel market is expected to grow at a CAGR of around 8% to reach US$ 2.37 trillion by 2030 and the Global Textile & Apparel trade is expected to grow at a CAGR of 4% to reach US$ 1.2 trillion by 2030.

• Indias home textile industry is expected to expand at a CAGR of 8.9% during 2023-32 and reached US$ 23.32 billion in 2032 from US$ 10.78 billion in 2023.

• The Indian Technical Textile market has a huge potential of a 10% growth rate, increased penetration level of 9-10% and is the 5^th largest technical textiles market in the world. Indias sportech industry is estimated around US$ 1.17 million in 2022-23.

• The Indian Medical Textiles market for drapes and gowns is around US$ 9.71 million in 2022 and is expected to grow at 15% to reach US$ 22.45 million by 2027.

• The Indian composites market is expected to reach an estimated value of US$ 1.9 billion by 2026 with a CAGR of 16.3% from 2021 to 2026 and the Indian consumption of composite materials will touch 7,68,200 tonnes in 2027.

• India is the worlds largest producer of cotton. In the first advances, the agriculture ministry projected cotton output for 2023-24 at 31.6 million bales. According to the Cotton Association of India (CAI), the total availability of cotton in the 2023-24 season has been pegged at 34.6 million bales, against 31.1 million bales of domestic demand, including 28 million bales for mills, 1.5 million for small-scale industries, and 1.6 million bales for non-mills. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers. It is expected to surpass US$ 30 billion by 2027, with an estimated 4.6-4.9% share globally.

• In 2022-23, the production of fibre in India stood at 2.15 million tonnes. While for yarn, the production stood at 5,185 million kgs during the same period. Natural fibres are regarded as the backbone of the Indian textile industry, which is expected to grow from US$ 138 billion to US$ 195 billion by 2025.

• Indias textile industry is on the brink of expansion, with total textile export projected to reach US$ 65 billion by FY26.

• India saw a 36.4% increase in industrial design applications, particularly in textiles, accessories, tools, machines, health, and cosmetics.

• According to ICRA, Indian apparel exporters are projected to achieve revenue growth of 911% in FY25, driven by the gradual reduction of retail inventory in key end markets and a shift in global sourcing towards India.

• During FY24, the total exports of textiles (including handicrafts) stood at US$ 35.9 billion. Exports of textiles (RMG of all textiles, cotton yarns/fabs/made-ups/handloom products, man-made yarns/fabs/made-ups, handicrafts excl. handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 35.90 billion in FY24. In FY24, exports of readymade garments including accessories stood at US$ 14.23 billion. Indias textile and apparel exports to the US, its single largest market, stood at 32.7% of the total export value in FY24.

• In FY25 (April- June) the total exports of textiles stood at US$ 9.17 billion

• In FY25 (April-June), exports of readymade garments including accessories stood at US$ 2,244 million.

• Indias textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country.

India has traditionally been a world leader in generics and biosimilars and major Indian vaccine manufacturers, contributing more than 50% of the global vaccine supply. Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.

An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. Specialty chemicals account for 20% of the global chemicals industrys US$ 4 trillion, with Indias market expected to increase at a CAGR of 12% to US$ 64 billion by 2025. This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries.

The Department of Chemicals & Petrochemicals intends to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.

A shift in the global supply chain brought on by the China+1 strategy and a resurgence in domestic end-user demand was expected to fuel significant revenue growth of 18-20% in 2022 and 14-15% in 2023.

2. INDIAN ECONOMIC SCENARIO • Chemicals market in India

• Chemicals industry in India covers >80,000 commercial products.

• India accounts for 2.5% of the worlds global chemical sales, exporting to more than 175 countries.

• India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to Indias GDP.

• The industry is expected to reach US$ 304 billion by 2025 at a CAGR of 9.3%, driven by rising demand in the end-user segments for specialty chemicals and petrochemicals segment.

• Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.

• Specialty chemical companies are seeking import substitutions while exploring export opportunities to accelerate their business.

• India is the third largest polymer consumer in the world and is expected to consume 60 million tonnes by 2040.

• The agrochemicals market in India is expected to register an 8.6% CAGR to reach US$ 7.4 billion between 2021 and 2026.

• Specialty chemicals account for 20% of the global chemicals industrys US$ 4 trillion, with Indias market expected to increase at a CAGR of 12% to US$ 64 billion by 2025. This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries.

• In February 2025, the government has implemented enhanced quality compliance requirements via Quality Control Orders (QCOs) for more than 150 products across various sectors, including household appliances and industrial materials. This initiative, overseen by the Bureau of Indian Standards (BIS), aims to enforce stricter safety and performance standards.

Indias chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 383 billion to Indias GDP by 2030.

India has traditionally been a world leader in generics and bio similars and major Indian vaccine manufacturers, contributing more than 50% of the global vaccine supply. Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.

An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. Specialty chemicals account for 20% of the global chemicals industrys US$ 4 trillion, with Indias market expected to increase at a CAGR of 12% to US$ 64 billion by 2025.

This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries.

The Department of Chemicals & Petrochemicals intends to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.

The Indian chemical industry is expected to further grow with a CAGR of 11-12% by 2027, increasing Indias share in the global specialty chemicals market to 4% from 3%.

A shift in the global supply chain brought on by the China+1 strategy and a resurgence in domestic end-user demand was expected to fuel significant revenue growth of 18-20% in 2022 and 14-15% in 2023.

Chemical sector imports and export statistics

? From April to November 2024, exports of organic chemicals stood at Rs. 45,001 crore (US$ 5.2 billion) & inorganic stood at Rs. 12,548 crore (US$ 1.45 billion).

? Imports of organic chemicals were Rs. 96,059 crore (US$ 11.1 billion) and inorganic chemicals Rs. 36,347 crore (US$ 4.2 billion) from April to November 2024.

? From April to November 2024, exports of castor oil, essential oil, and cosmetics and toiletries stood at Rs. 23,885 crore (US$ 2.76 billion).

? Imports of castor oil, essential oil, and cosmetics and toiletries are Rs. 15,577 crore (US$ 1.8 billion) during April-November FY25.

? In April-November 2024, the export of agrochemicals was Rs. 23,885 crore (US$ 2.76 billion), dyes were Rs. 13,673 crore (US$ 1.58 billion) and the other dye intermediates were Rs. 883 crore (US$ 102 million).

? The import of agrochemicals was Rs. 10,385 crore (US$ 1.2 billion), dyes were Rs. 1,869 crore (US$ 216.4 million) and the other dye intermediates were Rs. 7,849 crore (US$ 907.9 million) during April-November 2024.

? India holds a strong position in international trading of chemicals and ranks 9th in exports and 6th in imports at a global level (excluding pharmaceuticals).

India exports chemicals and chemical products to more than 175 countries with key export destinations like China, USA, Brazil, Netherlands, Saudi Arabia, Indonesia, UAE, Japan, Germany, etc. The industry also started exporting to markets like Turkey, Russia, and Northeast Asian countries namely Hong Kong, Japan, Korea RP, Taiwan, Macao, and Mongolia. During FY23, the USA was the largest importer of chemicals from India valued at US$ 3.85 billion, followed by Brazil with imports of US$ 1.82 billion. Chemical exports to China were valued at US$ 1.74 billion in FY23.

China is a major importer of dye intermediates and castor oils from India. The USA remained the largest importer of dyes, inorganic chemicals, organic chemicals, agrochemicals, and essential oils from India.

• India Textile Chemicals Market Report

India textile chemicals market stood at $ 1.5 billion in 2017 and is projected to grow at a CAGR of around 10% to reach $ 2.6 billion by 2023, on the back of growing demand for high-quality finished textile products.

Stringent environmental regulations imposed in China against pollution have forced several Chinese textile dye manufacturers to discontinue their operations, thereby resulting in opportunities for Indian players to further penetrate the international market.

India is the second largest textile exporter in the world and the state government of Maharashtra is taking initiatives to establish around nine textile parks, which is expected to encourage domestic textile manufacturing, which in turn is anticipated to spur the demand for textile chemicals in India in coming years.

• Chemical Finishing in Textile

Chemical finishing in textile plays an important role but the recent trend to "High Tech" product adds a great popularity to it. With the increase of high performance textiles, the popularity of chemical finishing has also increased. The chemicals and auxiliaries that are utilized in a year is about one-tenth of the worlds fiber producation. About 6 million tons of chemicals are consumed for 60 million tons of fiber The consumption of chemicals in finishing covers 40% of total textile auxiliaries. Within the textile finishing group, the product breakdown, based on TEGEWA, is given as a survey in the following table. In terms of value, the repellent group is the leader with the highest ratio of cost per amount. This reflects the relatively high cost of the fluorochemical subgroup of repellents.

Opportunities and Threats

Opportunities:

1. Growing Textile Industry in India

o Indias status as a major textile and apparel producer ensures consistent demand for textile chemicals across all processing stages.

o Rising domestic consumption and global outsourcing boost growth potential.

2. Demand for Sustainable Chemicals

o Increasing awareness among global buyers and regulatory bodies creates strong demand for eco-friendly, biodegradable, and low-impact textile chemicals.

o Opportunity to develop and supply compliant products.

3. Government Incentives and Support

o Production Linked Incentive (PLI) schemes, National Technical Textile Mission, and focus on Make in India encourage investment and innovation in textile processing.

4. Technical Textile Boom

o Growing use of technical textiles in healthcare, automotive, agriculture, and defense sectors increases demand for high-performance specialty chemicals.

5. Digitalization & Smart Manufacturing

o Adoption of automation, IoT, and data analytics in chemical manufacturing can improve quality, reduce waste, and enhance traceability.

6. Strategic Collaborations

o Possibility to partner with international chemical companies for joint R&D and technology transfer in sustainable chemistry and innovation.

Threats

1. Stringent Environmental Regulations

o Compliance with increasingly strict pollution control norms can lead to higher operational costs and capital investment in ETPs/ZLD.

o Non-compliance can result in plant shutdowns, fines, or loss of reputation.

2. Volatility in Raw Material Prices

o Heavy reliance on petrochemical-based inputs makes the industry vulnerable to global oil price fluctuations and supply disruptions.

3. Intense Competition

o Both domestic and international players, including Chinese suppliers with lower cost structures, contribute to pricing pressure and margin erosion.

4. Technological Obsolescence

o Failure to upgrade technology or adapt to new environmental standards may result in loss of market share or regulatory action.

5. Customer Consolidation

o Larger textile customers are increasingly negotiating aggressive pricing or switching to vertically integrated suppliers, reducing leverage for chemical manufacturers.

6. Global Economic Uncertainty

o Recessionary trends, inflation, or geopolitical disruptions may impact textile exports, indirectly affecting chemical demand.

7. Currency Fluctuations

o For exporters and importers of raw materials, forex volatility can significantly affect cost structures and profitability.

8. Health and Safety Risks

o Handling of hazardous chemicals involves risks to worker safety and potential liabilities in case of accidents or regulatory lapses.

BUSINESS OVERVIEW:

The Company is in trading & manufacturing of Chemicals, Dyes and Auxiliary products. Company produce finished Textile Auxiliaries & Chemicals by mixing basic Textile Auxiliaries & Chemicals with our standardised formulation of chemicals with the help of stirrers. The Company produce Foil Binders, Printing Inks and Zari Binders in our Company with the variety of ranges and specialisation as per the demand of the client.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

OUR PRODUCT Textile Auxiliaries

The Textile Auxiliaries are specially used for washing and dying of yarns and fabrics. These auxiliaries are formulated for textile products in the forms of cationic, non-ionic, surfactants and amphoteric. These auxiliaries find usage in textile industries for dyeing, finishing, printing and sizing fabric applications. Textile auxiliary chemicals, commonly called as the dyeing auxiliaries are formulated chemical compounds which are used in various operational processes in a textile. It is formulated chemicals used for, dyeing, printing, and effectively completing the manufacturing process to get the desired effect.

It is an essential product which is essential for a textile industry because it helps in the preparation of the substrate, which is used for colouration. It is also used for stabilization of the medium of application, plays a major role in increasing the fastness property of dyeing and modification of the substrates.

We are manufacturing the Foil Binders of different specifications as per the requirements of the processing houses. The product manufactured by us are innovative and compete with the market on the price range. The quality of our product is accepted by the processing houses and they got desired results by using our product satisfactorily, on account of that, we have developed cordial relation with the customers and got repetitive orders.

Value Added Printing Products

By looking at the revolution in the textile industries, in our Company, we manufacture the Value Added Printing

Products by way of dyes and chemical for the textile industry.

The Value Added Printing Products involves below mentioned products:

• Value Added Printing

• Glitter Powder

During, the period of 01.04.2024 to 31.03.2025, companys Revenue from Textile Chemicals & Auxiliaries is Rs. 12503.26 Lakhs.

OUTLOOK

Indias position as one of the worlds largest textile and apparel exporters continues to fuel steady demand for textile processing chemicals, including pre-treatment, dyeing, finishing, and specialty chemicals. With growing emphasis on high-quality exports and compliance with global environmental standards, there is a noticeable shift towards advanced formulations and biodegradable chemicals. This transition is expected to open up significant opportunities for innovation and value-added product development.

The domestic market is also witnessing robust growth, supported by rising consumption of readymade garments, home textiles, and technical textiles. The production-linked incentive (PLI) schemes,

National Technical Textile Mission, and focus on Make in India are anticipated to provide further momentum to the sector.

Digitalization, automation, and data-driven process optimization are also expected to reshape manufacturing and supply chain efficiency. Forward-looking players who integrate technology and sustainability into their core operations are likely to lead the next phase of growth.

Overall, the industry is well-positioned for expansion, supported by rising textile demand, sustainability-driven innovation, and Indias growing stature as a global manufacturing hub.

THE ROADMAP OF THE COMPANY FOR IS AS FOLLOWS:

• Short-Term Goals

A. Operational Strengthening

Upgrade existing manufacturing facilities for better process control and efficiency.

Streamline supply chain and vendor management for consistent raw material sourcing.

Implement quality assurance protocols aligned with international benchmarks.

B. Regulatory Compliance & EHS

Ensure full compliance with local and international environmental laws Establish or enhance effluent treatment facilities.

Introduce stricter occupational health and safety (OHS) practices at all sites.

C. Product Portfolio Optimization

Phase out non-compliant or outdated chemical formulations.

Launch eco-friendly product lines.

Create a database of performance metrics for existing product efficacy and customer feedback.

• Long-Term Goals

A. Sustainability Leadership

Become a leading supplier of sustainable textile chemicals with net-zero emissions targets. Introduce biodegradable and circular textile chemical solutions.

Publish annual sustainability reports and obtain global certifications.

B. Technological Integration

Implement AI-driven predictive systems for formulation design and process control.

Explore blockchain for traceability in chemical supply chains and client transparency.

C. Strategic Partnerships and M&A

Form joint ventures with global players for technology access and market reach.

Explore acquisition of regional competitors or niche technology firms.

Establish application labs and demo centers in key textile markets.

D. Brand & ESG Positioning

Position the company as an innovation-led, environmentally responsible partner for global textile brands.

Participate in ESG indices and sustainability forums to enhance investor and customer trust.

RISK AND CONCERNS

• Constant advancements are required to stay combative in the market, especially in terms of technology for improving product quality.

• Disruption in supply of materials from the major suppliers would adversely affect operations.

• Our business involves handling and storage of hazardous chemicals, which are a potential risk to the environment.

• Unable to retain or acquire competent and experienced employees may hamper the Companys ability to pursue its growth strategies effectively.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the described policies and procedures of the Company. The Audit Committee and the Management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue from operations for the period ended on 31^st March, 2025 is Rs. 12503.26 lakhs. EBIT came in at around Rs. 693.51 lakhs and Profit after Tax was Rs. 366.27 lakhs. The company expects to be in a good wicket in FY26.

To conserve resources for the Companys future growth plans, no dividend is being recommended by the Directors for the year ended 31st March, 2025.

Company has recorded a total Sales of Rs 12503.26/- lakhs in current financial year 2024-25 as compared to Rs 11447.83/- in previous financial year 2023-24.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The company firmly believes that its human resources are the key enablers for the growth of the company and are an important asset. Hence, the success of the company is closely aligned to the goals of the human resources of the company. The company has over 195 employees, skilled and unskilled combined who are proficient and carry rich experience. They form a perfect team, and are the true reason behind the improvement of the performance of the Company. Taking this into account, the Company would continue to invest in developing its human capital and establishing its brand on the market to attract and retain the best talent.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO

Ratio analysis compares line-item data from a companys financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a company is performing over time, while comparing a company to another within the same industry or sector.

• Interest Coverage Ratio

The interest coverage ratio measures the ability of a company to pay the interest on its outstanding debt. This measurement is used by creditors, lenders, and investors to determine the risk of lending funds to a company.

The companys Interest Coverage ratio is 4.31 in FY 2024-25 and 3.68 in FY 2023-24.

• Current Ratio

The company is maintaining its Current Ratio at 3.13 in FY 2024-25 compared to 4.98 in FY 202324, which is intended to make sure it has enough resources to meet its short-term obligations.

The current ratio has decreased substantially, since, the company has utilised its cash credit facility with the State Bank of India in the current year to the extent of 13.64 Crores, whereas, in the preceding year as at the yearend, the said facility was not utilised and on the contrary in the said cash credit facility account, the company has the balance of 14.32 Crores which was reflected in the Cash & Cash Equivalents i.e. Current Assets in the preceding year, which has mainly contributed to the decrease in the Current Ratio of the current year as compared to preceding year.

• Debtors Turnover Ratio

Debtors Turnover Ratio measures how many times a business can turn its accounts receivable into cash during a period. The company is maintaining its Debtors Turnover Ratio at 1.91, indicating good liquidity in financial year 24-25 which was 1.42 in previous year 23-24.

The Trade Receivable turnover ratio has increased, since the average trade receivables in the current year has reduced, as compared to preceding year, whereas, the net credit sales in the

current year has gone up as compared to the preceding year, which has lead to the increase in trade receivable ratio in current year as compared to the preceding year.

• Inventory Turnover Ratio

The inventory turnover ratio is an important tool which measures how well a company generates sales from its inventory. The company in FY 2025 has maintain a healthy Inventory turnover ratio at 5.82 which was 5.76 in previous FY 2024, which suggests that the company is able to sell goods quickly and there is existence of demand for the products and services provided by the company.

• Operating Profit Margin (%)

The operating margin measures how much profit a company makes on an amount of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a companys operating income by its net sales. The Company aims to maintain a stable Operating Margin Ratio; in FY2025 Operating Profit Margin was 5.65% compared to 5.55% in FY2024.

• Debt to Equity

The debt-to-equity (D/E) ratio is used to evaluate a companys financial leverage and is calculated by dividing a companys total liabilities by its shareholder equity. The FY25 Debt- to Equity ratio of the company is 0.26 which in FY24 was 0.32.

• Net Profit Margin (%)

The Net profit margin is intended to be a measure overall success of a business. In FY 2025, Net Profit Margin of the company was 2.93% and in FY 2024 is 3.01%.

RETURN ON NET WORTH

The Company witnessed a Return on Net Worth at 5.10% in FY 2024-25 which was 5.67% in FY 202324. The company expects to be on a good wicket in the coming Fiscal Years.

Place: Surat	For and on behalf of the Board of Directors
Date: 02nd August, 2025	Bhatia Colour Chem Limited
	Sd/-	Sd/-
	Rameshchand Chanduram Bhatia	Bharat Brijlal Bhatia
	Whole-Time Director	Chairman/Managing Director
	DIN:09431185	DIN:09095082