Chemtech Industrial Valves Ltd Management Discussions

Industry Structure and Development

Our Company is engaged in the business of manufacturing industrial valves, a sector which continues to evolve in response to global industrial and infrastructure development. Valves are critical components in fluid control systems, serving purposes such as regulation, direction, and flow control. These components are widely used in sectors including oil & gas, steel, chemicals, water treatment, military, and transport.

The modern industrial valve industry has seen a shift toward automated and intelligent valve systems, integrated with smart plant automation and control systems. This trend is being driven by the increasing demand for safety, efficiency, and remote operability in critical plant operations.

The Indian valve manufacturing sector is experiencing strong tailwinds due to the Governments continued focus on “Make in India”, infrastructure expansion, and industrial investments. Internationally, valve suppliers in Asia, particularly India, are gaining prominence due to cost competitiveness and improved quality. According to recent market reports, the global industrial valves market is expected to witness steady growth with increasing demand from energy, water infrastructure, and process industries.

Our Company began its operations by manufacturing general-purpose valves. Over time, we have strategically shifted toward value-added solutions ? evolving from manually operated shut-off valves to automated control valves and from standalone components to custom-engineered modular systems. Our strategy is to act as a solution partner for our clients, assisting them in designing, planning, and implementing flow control solutions aligned with their technical and operational goals.

We also continue to invest in sustainable product development, focusing on materials innovation, process engineering, and environmentally responsible manufacturing methods.

Opportunities and Threats:

Fully Integrated Manufacturing Facility

Our fully integrated and self-sufficient manufacturing setup gives us a competitive edge. We have stable access to raw materials, consumables, utilities (power and fuel), and skilled manpower. All required plant and machinery are in place, enabling us to maintain continuity in operations.

Experienced Management Team

The Company is led by a strong team of professionals under the leadership of Mr. Harsh Pradeep Badkur, who brings over a decade of experience in the valve industry. Their strategic direction, coupled with an experienced operations team, has enabled the Company to maintain consistent growth and customer satisfaction.

Continuous Focus on developing Innovative Products

We place strong emphasis on continuous innovation, product customization, and process optimization. Our engagement with clients helps us anticipate their evolving needs and enhance their operational efficiencies.

We are proud to highlight that the Company is receiving Good Response for its patented & innovative product, Line Blind, which offers over 90% cost savings in pipeline blanking operations while significantly improving safety standards.

Strong Customer Base

We have long-standing relationships with our customers for whom we have executed repeated orders over an extended period of time, which we believe have been established and are strengthened by the dedicated infrastructure and our ability to meet Clients requirements for customized products. Our customers include leading steel plants, government companies, engineering companies and EPC contractors.

We also have our Marketing Managers at various major Industrial belts.

Technical Expertise and Industrial Expertise

The promotor and the promotor group are experienced in our line of business. Further we have employed professionals having technical and commercial backgrounds. Our Company feels that the strength of any successful organization lies in both, the experience and guidance of its team leaders and the efficiency and technical capability of the staff.

Quality Assurance and Standards

The Company adheres to rigorous quality standards, supported by ISO 9001 certification. Our quality systems are embedded across all processes to ensure reliability and compliance with customer specifications.

Segment wise performance

Our operations are classified under two primary business segments:

1. Manufacturing of Industrial Valves

2. Trading of Project-Specific Materials

These segments are aligned with our internal organizational structure and reporting practices. For FY 2024-25, the entire Business was achieved from Manufacturing of Industrial Valves and the Company continues to focus on enhancing market share and profitability.

Future Outlook

The demand outlook for industrial valves is robust, backed by:

• Capacity expansion plans by key industries

• Strong capital expenditure in infrastructure and utilities

• Increasing automation and digital transformation in industrial operations

The steel sector, in particular, remains our major focus area. With Indias ambitious National Steel Policy and the target to reach 300 million tonnes of steel capacity, significant investments are expected over the next 5-7 years. Industrial valves are estimated to account for approximately 1-1.5% of total capex, offering a substantial market opportunity.

Our product portfolio has been realigned to meet the evolving needs of the steel industry, including large-diameter and critical application valves. The Company is well-positioned to cater to this segment, with long-standing relationships with clients such as JSW Steel, Jindal Steel & Power, SAIL, ArcelorMittal Nippon Steel India, and Tata Steel.

We foresee increased order visibility and revenue growth in the medium to long term from this segment.

Internal Control Systems & their Adequacy

The Company has a sound internal control system commensurate with its size. Internal Audit reports are discussed by the professionals, members of audit committee & suitable corrective actions as suggested are adopted by the Board of Directors of the Company. We have always believed that transparency, systems and controls are important factors in the success and growth of any organization.

Discussion on financial performance with respect to operational performance

The financial performance is mentioned herein under:

The Company has recorded a revenue from operations of ^4,003.91 Lakhs for the financial year ended 31^st March, 2025, as against ^3,137.94 Lakhs for the previous financial year ended 31^st March, 2024, reflecting a growth of approximately 27.60%.

Further, the Profit Before Tax stood at ^924.33 Lakhs for the Financial Year 2024-25, compared to ^416.94 Lakhs in the previous year, registering a significant increase of 122%.

Discussion on financial performance with respect to operational performance

The financial performance is mentioned herein under:

PARTICULARS	31st March, 2025	31st March, 2024
Revenue from operation	4003.91	3137.94
Other Income	263.27	38.60
Total Revenue	4267.19	3176.54
Less: Depreciation	94.57	94.45
Less: Finance Charges	35.40	102.96
Less: Other Expenses	3212.89	2562.20
Profit/(Loss) before Taxation	924.33	416.94
Less: Provision for Taxation	222.643	1.44
Net Profit/(Loss) after taxation	701.68	415.49

The details of the changes in key Financial Ratios mentioned in the table below;

Ratios	31st March, 2025	31st March, 2024
Debt-Turnover Ratio (Times)	4.65	5.11
Inventory Turnover Ratio (Times)	10.88	8.41
Interest Coverage Ratio (Times)	31.80	5.61
Current Ratio (Times)	11.57	3.15
Debt-Equity Ratio (Times)	0	0.14
Operating Margin Ratio (Times)	0.63	0.77
Net Profit Margin (%) (Times)	0.16	0.13
Return on Net-Worth (%) (Times)	0.07	0.12

Material Development on Human Resources / Industrial Relations

The biggest strength of the Company has always been its people. Only with their participation we have managed to achieve a healthy work culture, transparency in working, fair business practice and a passion for efficiency. The Company follows a unique, home grown philosophy of allowing people to set their own targets and give them the freedom to achieve: ‘I can. This philosophy has spread across all our employees and has been a constant source of motivation for our people. Further, to enhance their skills and enrich their experience, the Company provides continuous training. This includes workshops, courses, seminars and visit to the Companys plants. Of late, we have also started in-house conferences for various disciplines. Employees from all our offices are invited to participate. It is a useful forum for sharing experiences, ideas, innovations and developmental work undertaken in their respective work places. From the beginning, we have followed a progressive policy of taking keen interest in the well-being and progress of our people. All of this, we believe, has nurtured a strong sense of belonging among our people. During the year under review, Industrial Relations were cordial.

Cautionary Statement

Statement in the Management discussion & analysis describing the Companys objectives, projections, estimates & exceptions may be “forward looking statements” within the meaning of applicable securities laws & regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic & overseas markets in which the Company operates & changes in the Government regulations, tax laws & other statutes & other incidental factors.

REGISTERED OFFICE:	FOR AND ON BEHALF OF THE BOARD OF DIRECTOR
503, Sunrise Business Park, Plot No. B- 68, Road No-16 Near Kisan Nagar-2, Wagle Industrial Estate, Thane- 400604

 

	Sd/-	Sd/-
	Puneet Pradeep Badkur	Harsh Pradeep Badkur
Place: Thane	Whole Time Director & CFO	Chairman & Managing Director
Date:03rd September, 2025	DIN: 07803209	DIN: 00676715