Bright Brothers Ltd Management Discussions

ECONOMIC AND BUSINESS OVERVIEW ACROSS THE GLOBE

In recent years, global economic growth remained relatively stable, despite having a series of unprecedented shocks. However, there is a shift in global economic environment due to realignment of their policies by certain countries. There has been a significant negative development due to the introduction of new tariff measures by the United States, followed by retaliatory actions from its trading partners. These trade tensions have not only directly impacted growth but have also created heightened uncertainty, which is weighing heavily on economic activity and future outlooks.

As a result, global economic growth is now expected to decline to 2.4% in 2025, down from 2.9% in 2024. This downward revision is affecting both advanced and developing economies. Slowing global trade and reduced investment flows are further exacerbating the deceleration. Many developing nations that depend heavily on trade are grappling with a combination of falling exports, declining commodity prices, tighter financial conditions, and elevated debt levels.

While inflation is gradually easing across much of the world, short-term risks remain, particularly from tariff-induced cost increases and growing uncertainty. In this changing environment, businesses and countries need to stay flexible and prepared, approaching the future with careful optimism.

ECONOMIC AND BUSINESS OVERVIEW IN INDIA

With a population exceeding 1.4 billion, India stands as the worlds largest democracy. Over the past decade, the countrys deeper integration into the global economy has driven steady economic expansion, establishing India as a key player on the global stage. The projected real GDP growth of 6.4% for FY25 aligns closely with the average growth rate of the past ten years.

Indias economic strategy emphasizes broad deregulation aimed at accelerating growth. Key priorities include easing compliance requirements and expanding economic freedom. These reforms are central to streamlining the regulatory environment, which in turn supports small businesses and promotes job creation—especially within the manufacturing sector.

Indias future growth is increasingly tied to progress in digital and green technologies. Achieving this will require major investments in innovation and infrastructure to drive sustainable development and long-term competitiveness.

In conclusion, Indias economic outlook remains optimistic, underpinned by structural reforms, technological advancement, and a growing emphasis on sustainability. As the nation continues to modernize its economy and strengthen its global footprint, it is well-positioned to become one of the leading drivers of global growth in the years ahead.

INDUSTRY STRUCTURE AND DEVELOPMENT

The global plastic industry remains vital to key sectors such as packaging, automotive, healthcare, and construction, owing to plastics versatility and cost-effectiveness. However, growing environmental concerns and regulatory pressures are driving a shift toward sustainability. Companies are increasingly adopting recycling technologies, circular economy practices, and developing alternative materials to meet evolving global standards.

Indias plastic industry is a core part of its manufacturing landscape, supporting employment, exports, and industrial demand. With rising urbanization and consumer needs, domestic demand continues to grow. Government initiatives are encouraging local manufacturing and sustainability, while the industry focuses on waste reduction, recycling, and integrating advanced technologies to boost productivity and environmental responsibility.

As the industry transforms globally and in India, the emphasis is clearly on sustainable growth, innovation, and compliance. Companies must stay agile, invest in green technologies, and align with regulatory frameworks to thrive in this evolving landscape while contributing to long-term economic and environmental goals.

Category of products	Products manufactured
Injection Moulded Products	Plastic moulded parts of refrigerators, washing machines, water purifiers, juicer, mixer, grinder, air-conditioners, fan blades, electrical switches, smart meters, crates, electric vehicles (two-wheelers), etc.
Composites Products	Plastic moulded parts of railway wagons, construction equipment, electrical charging stations and industrial cleaning robots.
Haircare division Products	Hair and beauty accessories (Trading business)

OVERALL FINANCIAL PERFORMANCE (CONSOLIDATED)

The company has reported improvement in its financial performance, driven by multiple strategic and operational initiatives. An increase in sales contributed to higher revenue generation, supported by increase in customer base. Operational efficiency improved across key functions, resulting in cost savings and better productivity. Furthermore, the ramp-up in capacity utilisation of newly commissioned plants allowed for increased output. The acquisition of a subsidiary in the United States also played a role, enabling the Company to mark its footprint in the international market. As a result of these combined factors, the Company recorded a substantial improvement in profitability, with Earnings Per Share (EPS) rising from a negative -8.39 to a positive 14.95, reflecting a strong recovery and value creation for shareholders.

The details of cash flow are provided below:

( in lakhs)

<td ALIGN=RIGHT>(170.29)

	Standalone		Consolidated
Particulars	2024-25	2023-24	2024-25	2023-24
Net cash flow from/ (used in) operating activities	893.71	1,077.32	1,119.04	917.08
Net cash flow from/ (used in) investing activities	(1,121.22)	(92.95)	(922.00)	47.69
Net cash from/ (used in) financing activities	(63.04)	(169.48)	(210.59)

REVIEW OF OPERATION

During the year under review, following your Companys focus for diversification in both product line and customer base,there has been good growth in both turnover and profitability. In continuation to the observations mentioned in previous years annual report, your Company has proactively taken steps to expedite the sales in the newly acquired wholly-owned subsidiary incorporated in the USA. This subsidiary, being an existing operating entity with its own order book has kick started supplies to the mass transit sector. This has helped the Pune plant to accelerate its operations and billing along with exports to the USA. Further, efforts have been undertaken to improve the operational efficiencies at other manufacturing units to maximise utilisation of the installed capacity and improve business turnover.

GROWTH DRIVER

The outlook for the current year remains positive, supported by steady growth projections from our existing customer base. Expanding our customer network and targeting new industry sectors continue to be key strategic priorities. Meanwhile, the composite division in India is actively pursuing export opportunities in new international markets beyond the USA.

OPPORTUNITIES

The recent tariff war has positioned India as a stable manufacturing hub. This coupled with the Indian governments initiative to boost domestic manufacturing through initiatives such as the Production Linked Incentive (PLI) scheme has enhanced countrys appeal as an attractive export-oriented manufacturing hub. This will help Indian manufactures to get more visibility and enquiries for overseas requirements.

THREAT

The ongoing global geopolitical instability poses potential risks to logistics, commodity prices, and supply chains. In the event of significant escalations, short-term impacts on growth, demand, and profit margins may be unavoidable. The trade tensions between China and the USA present a double-edged sword—while China may experience reduced orders from its key trading partner, this could lead to excess capacity and a potential influx of low-cost goods into the Indian market. Additionally, market uncertainty could temporarily dampen consumer sentiment.

FINANCIAL RATIOS

The significant changes in the financial ratios of the Company on Standalone basis, which are more than 25% as compared to the previous year are summarized below:-

Ratio	F.Y.2024-25	F.Y.2023-24	Change (%)
Interest Coverage Ratio	2.28	0.54	322.41%
Net Profit Margin (%)	2.63%	-1.27%	-307.63%
Return on Net Worth (%)	11.89%	-4.80%	-347.79%

The Company has demonstrated a significant improvement in key financial ratios, reflecting its strengthened financial position and enhanced profitability. The Interest Coverage Ratio improved considerably, indicating a stronger ability to meet interest obligations through increased operating profits. The Net Profit Margin Ratio also showed notable growth, driven by higher revenue, better cost management and improved operational efficiency, highlighting the Companys ability to convert sales into actual profit. Additionally, the Return on Net Worth ratio saw a marked increase, reflecting improved returns to shareholders and efficient utilisation of equity capital. These positive trends collectively indicate a more resilient and financially sound organisation.

INTERNAL CONTROL SYSTEMS

The Company has adequate internal audit and control systems. Internal auditors comprising of professional firms of Chartered Accountants have been entrusted the job to conduct regular internal audits at all units and report the lapses, if any, to the management. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up and remedial measures are being taken including review and increase in the scope of coverage, wherever necessary. The Audit Committee of Directors in its periodical meetings, review the adequacy of internal control systems and procedures and suggest areas of improvements. The Company has undertaken a detailed exercise to revisit its control systems in technical and other non financial areas to align them properly with Management Information Systems (MIS) to make MIS more efficient and result oriented. Information technology base created by the Company over the period is providing a very useful helping hand in the process. Needless to mention that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain the central point of the entire control system.

CAUTIONARY STATEMENT

Statements in this "Management Discussion and Analysis" describing the Companys projections, expectations or predictions may be "Forward looking statements" within the meaning of applicable Securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make a different to the Companys operation include cyclic demand and pricing of raw materials, changes in Government regulations, tax regimes, cost of power and interest cost and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise.

	For and on behalf of the Board,
	BRIGHT BROTHERS LIMITED
	Suresh Bhojwani
	Chairman & Managing Director
	DIN: 00032966
Place: Mumbai
Date : 10th May, 2025