Cybele Industries Ltd Management Discussions

Global Economic Overview

The global economy has demonstrated remarkable resilience. with growth holding steady and advanced and emerging economies countries returning to then target inflation levels after stay mg elevated lor the past few years Tne post-pandemic period saw a war between Russia ami Ukraine This was aecompanidd by supply cham disruptions, middle- eastern wars, and various thhei geopolitical crises, whicn led to a surge m inflation. Howaver despite predictions of s recession, the world economy avoided a downturn The tanking -system proved robust arm major emerging market economics remained stable, avoiding sudden stops

According so The IMF s April 2Q24 toport, global growth reached 3.2% by the end of 2023, with headline inflation remaining id 6 Sit. Following a similar ftend m growth. 2024 and 2025 are exiiectad to remain steady at around 3 2%. with headline ir.nation declining to 5 m 2024 and 4 5% m 2025. Advanced economies ate prelected to return to their inflation targets sooner itian emerging maricete and developing etonom tos This tan be attributed Active monetary.pcflt^atfluslms pta, etabi&rat ion df supply chains m ode rat ion in commodity prices end wag a growth elective management of inflation expectations. technological advancements, productivity gains, and supportive fiscal .policy measures

The global commodity market hasexpenenr.ed sign.floenl price volarilily. driven by goopotlhcal tensions m th? Middle East and shifts in supply and damans dynamics Commodity prices are expected lo Mflen slightly in 2024 and 2025 but will remain above pr a-pandemic levels Metal commodities have also seen notable price movements The IMFs base mere Is puce index rose by 4 7% from Augusi 2023 to February 2024 driven try record stoe! production m China

Copper prices increased by 3% in I he first quarter or GY 2G24 reaching a two-year high due to si ranger demand from China and supply co nan amis m South America. Although there is an increase in 2024 percent-wrsi* toe y-o-y (year-oh-yeai; average monthly Copper LME prices were USD 8,630.MT in Match 2023, compared to USD 8.678fMT In March 2024, snowing a t .81 % drop tn Inc prices. Nonetheless the ongoing energy transition to clEan and green energy Continues Id drive copper demand particularly tor electric vetncJee (?Ys> and renewable energy infrastructure Coppai prices are projected to use 5% in 3024 a no remain steady in 2025 3s hew production capacities com; oniltre

rn (fortrust Aluminium prices edged up by Q.3% in early 2024 ufte Cupper, the yo-y average morilhly Aluminium LME prices aisn dropped by 2.97V with prices In Moron 2023 being USD 22J9CI--MT and March 2024 being USD2.222MT Th,; prices are driven by concerns over supply from Russia and steady demand from the automotive construction and Ev seniors, and renewable power infrastructure

Indian Economic Overview

Indias economic land&cajM; in 2023-24 is marked by resilience and growth This reflects the crumbys ability Io maintain a strong economic trajectory despite global uncertainiies

According to provisional estimates of gross dome sue product :GDP) growth released by the National Statistics Office (NS Or India registered llte highest growlh al B 2% among majr>r advanced and emerging market economies This positions tne couthry as a gioba? economic leader,

Tire Index ol Industrial F induction i IIP) (an index that indurates the perfm-mance of various Industrirrl secicns of the Indian economy j Im March 2024 published by I he Central Statistical Cuganisatlon (CGOi stood al 159.2 The indices for the mining manufacturing and electricity seotofs stand at 156 i 155 1. and 204 2 respectively. indicating steady industrial growth

Pricing pressuies remain. a fecat pulm with tne annual inflation rate baaed on ihe consumer price index (CPU provisionally el 4 75% (combinedI tor May 2024 This reflects rural and urban inflation rates of 5 25% and 4 15% respectively The combined CPI was at 4 31%, the rural CPI was a! 4.23%, andlhe urban CPI was at 4.33% in May 2023

Trie current repo rate stands at 0,50%. unchanged since February 2023 maintaining a balance between inflation control and economic growl h Import duties and indirect I aye?.. Including GST and Customs hove also teen pivotal wifh the gross to* collection laigot Foi 2023-24 revised lo INR 34.37 Trillion Additionally. India s enpeuts have shown resilience, contributing positively to the overall economic geiTormooce

The capital ftHpencfhufe out lay. as detailed rn the Interim Union Sudgel tor 2024-25 stands at ITJR 1 Ml Lakhs Crores Strung domestic demand for consumption and investment, along with the Govemnnenls continued emphasis on capHal expenditure are among Ihe key drivers of GDP growth In the first half of 2023-24

Industry Review Wires and Cables jWACft

Th; consumer electrical industry m India plays a crucial role in the economy, significantly cornriburing to manufacturing production. GDP and erpon* n includes heavy eieettrcaJ products like wires and cables (W?C) and light eledncat products such as tost

moving pteqtrteaJ goods i.FMEG) erTOOitipassing appllantss litre tans, lighting appliances switches and switchgears. Th? rKJnsIry is highly competitive with in any players offering products and Services

The WSC industry experienced suttsramiai growth reaching approwmatoly 1NR 34 500 Crorps In 202-5-24, compared to Rs 74.SDQ Cm res in 2022-23 Thrs growth driven by sectors like power reilwayi. and real estate is expected to continue at a CAGE of approximately 13% from 2023-2d till 2020-27 to reach ? market Value of Rs 1.20,000 C no res The fest- moving electrical goods industry reached approximately Rs. 1,02,000 Crums in 2023-24 and is expecTfld to regular a CAGE of 8% from 2023-24 till 2027-26,

Key Sub-Categories of Wires A Cables-

4 wire Is a single conductor while a cable consists at multiple conductors tor transmitung electricity and lelecammunicallon signals The W6C maitfsl includes:

Housing Wires: Used In commercial indue! n&t and residential properties to carry efeclncal currem Power Cables Utilised tor power transmission and distribution

Control and Instrumentation Cables: Multi-conductor cables tor low-energy signals In power system monitoring and

control

Common leal toil Cables: Transmit inform alia h signals incfeuing coaxial hbre gpiic data ether net. amt twisted wite pairs Flexible and Specialty Cables: Used In consumer appliances railways, mining and specific sectors like manne and dl 3 Key Growl h Drivers of Wires and Cables Mark el in India Residential and Commercial Real Eslate

Tne booming real estate market increases the demand tor high-quality wiring and cabling soiullons As new buildings and Complexes are developed the need tor refialife eledrural infrraalructme rises direuly boosting sales for Cybefe Industnes.

Push toward* Renewable Energy

Under the Parra Agioemeni countries like Japan South Korea India, and those tram the European Union have com milled to achieving nei zero emissions, with India targeting 2070 This grafal commitment nae accelerated the adoption ar renewable energy, particularly solar and wind power creating significant growth opportunities for Indias consumer eleclncal industry Cybefe stands to benefii from Dll* shill, with Indie aiming to Install 500 GW ut renewable energy Capacity by 2030 driven primarily by solar energy projects

The interim union Budget 2024-25 a I located the following

Grid-Based Solar Power; iNff 10,000 C rotes far 2024-25. a significant Increase from the revised estimate of luR 4 757 Crates lor 2023- 24

Wind Power: 1UR 93Q Crateo for 2024-25. slightly up from INR 91S Crones in 2023-24

Rooftop Solaria.ilioti: To cover 10 Million homes with the rooftop talar scheme Which w)l provide 300 unite ol free electricity each month to these househotds

EV Transition

Thu transilion la EVs presents a significant growth oppnnunily tor Cybole Industries in ihe WiC inriuslry With mi! Indian Government targeting 30% vehicle eletrrifitaiicmtty 2030 amf implementing supporl ive polldesiucti as ihe FAME India Scheme and PLl Scheme The EV market is poised for mpuf expansion Additional Initiatives live Ihe Battery Swapping Policy and tax ‘.xcmptiono lurcher stimulate EV adopt ion Given me anticipated need for 20.5 Lakhs changing infrastructure mate Nations by CY 2030. Cyttefe inriustneo Is weii- positioned to capita Hsu on Ihe EV transition in India

Rural Electrification

Thu enhancemenl ol road eonnectivrty between rural and uittan areas has improved the living slandaids ol rural households, leading to a significant increase m the demand tor patre efeclrical needs Although seven statue have aerneved full access to etectrtcity more mart n s Lakhs households, still await access to electricity

Since 1S5D the number of villages with electricity has surged from 3.000 to GOD 000. driving substantial growth in the electrical marker Thiv expansion offs? 5 I u cm live opportunities far companies ¹¹ kc Cyuefe industries lo penetrate rural maTkEts and most Ihe rising demand tor wiring cables and FMEG products. Tne ongoing rural etoclrificahon dove Is sal to turther stimulate demand as il requires the establishment and maintenance of new power Intristruriuro.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The company n engaged m toe business of manufacture asp sale or Bund mg Cables Flexible Cables, Power catties, submersible Pump Cables, Automotive Cattles, Control Cables, Railway Signaling Cables and H amess Cables which are class ill etl under the Industrial Structure a* Electrical Caties and Wires- The company a too In property development.

OPPORTUNITIES AND THREATS

The product portfolio of lire Comps ny Js jtfaftf rwtid t)y imeats pose d hy ma mitaiturar s in urvorganieeid nador As me Goyernme i n Is initialing various measures to encourage the inti-asJfuciur& and housing sector. there is possibility of increase m deni and lor cables and Wiles and also improvemenl in Itie real estate sector

RISK AND CONCERNS

The fortune of I he Ccmpgny is dependant on enlry barnojs.sel up by efectncaf cables and wires business in the unorganized sector. Further as a manufacturer in me mganiaed sector the fined coals In terms ol administrative enpe rises are high

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Hie Company has adequate mternar control system monitored by internal Auditors who ore r sporting tolhe Audit Committee. The Audit Committee is meeting periodically for reviewing the performance or (he company snd formulaimg policiesV issuing guite lines to the Management

FINANCIAL PERFORMANCE

Toe Com psiiy made a profit a tier Ibk of RsTflfi I n k III, during Ihe year Trie Company is taking netessniy stops to improve the

performance or (he company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES i INDUSTRIAL RELATIONS FRONT. INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company regularly deputes employees losemmats and various programmes to help them to enrich then professional skills and knowledge The company has formulated intenlivo schemas to employees 1c increase the productivity and performance Tito company maintains cordial rotation chip with Markers end employees 31 e:] Levels

REPORTING OF FRAUD

The Auditors of life Company have not reported any fraud as specified under Section i?t3:12) or the Companies Act, 2U1S SECRETARIAL STANDARDS

The Company has complied wiln lhe applicable Secretarial Sfandards as amended from Lime to time DISCLOSURE OF ACCOUNTING TREATMENT-

Pursuanl to the notification, issued by the Mimsliy or Corporate Affairs dated Fetuuary 1(5,291$ relating to rhe Companies (Indian Accounting Standards) Rules 25115 tbs Company has adapted UVD ASwith effect from latApnl2Q 16. Accordingly lhe (mahcifli statements tot the year have been prepared incompliance wnti the -irtltt Rules.

ACKNOWLEDGEMENT

Tbe Directors woufd like to place on record lheir sincere appreciation to its customers, Vendors desfers Suppliers. Investors, business associates, bankers. Government Authorities for their continued support during Hie year. The Directorslrulv appreciates the contiibuiion made by *mptoyees a! an levels for their hem work, ecu eerily. cu-operaiion and support

	iSy order of the Boardj lorCYBELE INDUSTRIES LTD.,
Place CtTenrtfli	Thomas P Joy
Date 29. OS. 202 4	Managing Director