D P Wires Ltd Management Discussions

ETNANCTAL YEAR 2024-25- A GLANCE

Annexure VIII

MACRO-ECONOMTC SCENARIO Global Landscape

• Muted overall demand ahead

In 2024, global steel demand declined by about 1%, mainly due to drops in China (~3.5%), and declines in Europe, Japan, and the U.S.·each around 2-3% CRISIL. In 2025, demand is expected to edge up modestly by 0.5·1.5%, aided by easing financing conditions and a rebound in residential construction CRISIL.

• Chinas slowdown and residual overcapacity

Chinas steel demand is shrinking·forecast to fall from around 900 million tonnes in 2023 to 800·850 million tonnes by 2035 McKinsey & Company. Despite lower domestic demand, production has not slowed proportionally, leading to persistent overproduction and sustained export pressure globally McKinsey &CompanyAtradius.

• Rising focus on green steel and decarbonization

The global industry is shifting toward low-emission steelmaking: electric arc furnaces (EAF), direct reduced iron (DRI), and recycling-based production methods are gaining traction McKinsey & Company. Demand for “green steel” is expected to scale up about 2.5* over the next five years McKinsey & Company

OVERVJEWOETNDLANSTEELTNDUSTRY

Indian Steel Market

• Robust demand growth continues

India is bucking the global slowdown. Steel demand is projected to grow 8·9% in 2025, driven by construction, infrastructure, engineering, and packaging sectors The Economic TimesICICI Direct. S&P Global projects infrastructure spending (which accounts for 25·30% of steel demand) to rise ~11% in FY25, maintaining momentum regardless of election outcomes mint.

• Domestic supply constraints and rising imports

Although demand is strong, supply growth is weak. Largest producers showed negligible expansion, while medium and small producers delivered higher but still modest increases ICICI DirectCRISIL. Moreover, finished steel imports rose sharply·24.5%· leading to downward pressure on domestic prices. Key export partners include China, Japan, and Vietnam, with Chinese HRC imports rising 28-fold between 2022 and 2024 LinkedInCRISIL.

• Safeguard duty as a corrective lever

To counter cheap imports, India is considering a safeguard duty·possibly up to 25%·expected to support domestic prices with a 4·6% upside in 2025 ICICI Direct+1CR1SIL.

• Policy support and capacity expansion

The government is pushing critical infrastructure programs, PLI schemes for specialty steel, and foreign investment through initiatives like the National Steel Policy. New mega-projects such as JSWs 25/ MT plant in Gadchiroli are underway IBEF. JSPL is expanding its Angul facility to 12/ MTPA by 2025 and 25.2/ MTPA by 2030, with an emphasis on sustainability and green tech

Dimension	Global Steel Tndustry	Tndian Steel Tndustry
Demand Trend	Flat/mild growth (0.5·1.5%)	High growth (8·9%)
Raw Material Dynamics	Overcapacity, green shift	Import pressure, domestic capex
Policy & Trade Measures	Tariffs, decarbonization	Safeguard duty, infrastructure push, green incentives
Long-Term Outlook	Green transition, demand shift	Self-reliance, capacity ramp-up

Tmplications for DP Wires Limited

Given DP Wires product portfolio·LRPC strand wires, galvanized wires, spring steel, geomembranes, and plastic films·your company stands to benefit from:

• Tndias strong infrastructure-led steel demand, boosting overall steel ecosystem traction.

• Policy tailwinds, including pricing stabilization via import curbs and growth through domestic capex.

• Opportunities in green and specialty markets, tapping into sustainable construction and industrial applications.

Indian economy

Opportunities for the Indian Steel Industry

1. Robust Infrastructure Push

¦ Government-led initiatives like PM Gati Shakti, National Infrastructure Pipeline (NIP), and Smart Cities Mission are expected to drive steel consumption across sectors like:

^ Roads and highways ^ Railways and metro projects

^ Airports, ports, and logistics hubs

¦ Over ^ 100 lakh crore worth of infrastructure investments are planned by 2030.

2. Housing & Urban Development

¦ Schemes like Pradhan Mantri Awas Yojana (PMAY) and Affordable Rental Housing Complexes (ARHCs) are fueling demand for construction-grade steel.

¦ Real estate recovery and Tier-II & Tier-III city expansion offer long-term growth in steel for construction and interior segments.

3. Manufacturing and Engineering Growth

¦ Sectors like automotive, white goods, electrical equipment, and capital goods are expanding rapidly, especially under the PLI (Production-Linked Incentive) schemes.

¦ Specialty and value-added steels (e.g., electrical steel, automotive-grade, coated steel) are gaining traction.

4. Renewable Energy Sector

¦ Massive investments in solar, wind, and green hydrogen projects require structural steel, galvanized steel, and wire rods.

¦ Solar mounting structures, wind turbine towers, and transmission lines are emerging steel-intensive verticals.

5. Rural Consumption & Agri-Infrastructure

¦ Expansion of irrigation networks, water tanks, rural roads, and cold storage facilities is boosting demand for:

^ Galvanized steel wires

^ Structural pipes and rebar steel

^ Fencing and fabrication products

6. Export Potential

¦ With Chinas declining domestic demand and global capacity rebalancing, India has an opportunity to become a key global exporter of:

^ Long products (e.g., wire rods, structural steel)

^ Value-added and coated steel ^ Specialty wires and engineering-grade products

7. Digitalization & Automation

¦ Smart manufacturing technologies (IoT, AI, process automation) are improving operational efficiency, cost control, and product quality, enhancing global competitiveness.

8. Green Steel & ESG Opportunity

¦ India has an opportunity to lead in low-carbon steelmaking through:

^ Electric arc furnaces (EAFs)

^ Hydrogen-based DRI (Direct Reduced Iron)

^ Waste heat recovery and renewable energy integration

¦ Government support through green financing and carbon credits is expected to grow.

9. Growth of Ancillary Sectors

¦ Industries such as defense, shipbuilding, aerospace, and space technology are increasingly sourcing high-grade Indian steel for structural and application-critical use.

10. Domestic Demand Momentum

¦ India is projected to become the second-largest steel consumer globally by 2030.

¦ Per capita steel consumption (~80 kg) is still far below the global average (~230 kg), highlighting immense room for growth. Strategic Outlook & Long-Term Goals

¦ The National Steel Policy 2017 envisages:

^ Production capacity: 300/ MT by 2030-31 ^ Per capita consumption: 160/ kg

IBEF+1

¦ Prime Minister Modi emphasized the goal of zero imports and becoming a net exporter, with 500/ MT capacity by 2047 to support Indias advanced economy aspirations.

Insights

¦ Despite high production levels, consumption in FY/ 25 declined compared to FY/ 24·a sign of possible demand fluctuations or data coverage differences. Further breakdown by quarter or sector could clarify this.

¦ The growth momentum remains strong, backed by infrastructure investments, PLI incentives, and megaprojects from leading firms.

¦ Policy support is robust, with initiatives aimed at import reduction, green production, and capacity scaling.

¦ The visionary goals for 2030 and 2047 reflect the governments ambition to elevate India to a globally competitive steel powerhouse.

We are further planning to expand our business to emerging markets and therefore we need to expand further capacities in both wire and plastic division. Our primary focus is on wire division in which we are planning to increase our bandwidth and meet our customers requirements.

Economic Background and Financial Background

The Company has wide basket of products which cater to our customers across the globe with presence in countries like Nepal, Oman, Doha, Muscat, Sri Lanka. R&D Department of the Company looks after the innovation and also takes into consideration the standards laid down under the ISO certification 9001:2015. At present there are only three suppliers who are dealing in Stranded Wires and we are an approved supplier of various Government authorities like National Highway Authority in India (NHAI), National Thermal Power Corporation Limited (NTPC), Delhi Metro Rail Corporation Limited(DMRC), Public Work Department(PWD), Central Public Work Department(CPWD), Railways, large public and private sector industries. Due to increased overseas demand and technological advancement the Company has vide opportunities to expand its existing production capacity, business operations and product base across the Globe.

The development of a countrys infrastructure is vital to the growth of its sectors and the overall economy. There is an opportunity for DP Wires Limited to become more organized, through growth and acquisitions. This would improve overall construction quality. Strong population growth and a growing economy is fueling demand for infrastructure. The government is looking to attract private companies to invest in infrastructure through public-private partnership (PPPs). With emphasis on “Vocal for local”, the company sees many opportunities in renewable power in India. We have set up wind energy based 2 wind farms of 0.80 MW each in village Okha- Madhi and Jodhpur in District Jamnagar, Gujarat. These wind farms are connected by 33kV grid capacity Enercon Site, sub-station at Bhogat.Global slowdown in international market, logistics and transportation hurdles, increased competition, technological changes etc. remains as threats.

STRENGTH, WEAKNESS, OPPORTUNITIES AND THREAT ANALYSIS

Future Outlook

Our Company caters to needs of different users which include government and private sectors. Among the government sector we have clients in central, state and local bodies. Most of the existing clients are loyal and have maintained healthy relationship with the Company. 25 Years of experience helps in a better understanding of requirements, demands & market trends. Customers are held in highest esteem. When dealing with our customers, we are characterized by our reliability, flexibility as well as solution-oriented work approach.

Internal Control System and adequacy

The company has adequate internal control procedure commensurate with its size and nature of the business the internal control system is supplemented by regular reviews by management and well documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statements the company continuously upgrades this systems in line with best accounting practices the company is benefited from having a team of professionals as promoter and independent directors who are capable of exercising various checks and controls effectively.

REVIEW OF OPERATIONALAND FINANCIAL PERFORMANCE

1. Sources of funds/ Application of funds

(a) Share Capital

At present, the Company has only one class of shares - equity shares of par value of Rs. 10/- each. The Companys authorized share capital is Rs. 1800 Lakh, divided into 180Lakhequity shares of Rs. 10/- each. The issued, subscribed and paid-up capital stood at Rs. 1550.04Lakh as on March 31, 2025.

(b) Security Premium Reserve

The balance in securities premium reserve account as on March 31, 2024as well as March 31, 2025 was Rs. 2919.00 Lakh. There was no change in Securities Premium Account during the year.

(c) Profit and Loss Account

The balance in the Profit and Loss account as at March 31, 2025 is Rs.18923.03Lakhwhich has increased from Rs. 16899.99Lakhas reported in the previous year.

2. Deferred Tax Assets / Liabilities

Deferred Tax assets were reported to be Rs. 38.96Lakhs. We assess the likelihood that our deferred tax assets will be recovered from future taxable income.

3. Trade Receivables

The Trade Receivables of the company weredecreasedas compared to previous year. The figure of Trade Receivables was reported at Rs. 6240.61Lakhsas on March 31, 2025 which was Rs. 9833.18 Lakhson March 31, 2025.

4. Cash & Cash Equivalents

The Cash & Cash Equivalents of the company decreased as compared to previous financial year. The figure of Cash & Cash Equivalents was reported at Rs.125.69 Lakhas on 31^st March, 2025 which was Rs.4424.10 Lakh in the previous year.

5. Income from Operations

Income from operations reported a figure of Rs.62093.15Lakhas on 31st March, 2025 as compared to Rs. 100307.60 Lakhin the previous year ended 31st March 2024 showing adecrease of around 38.09%.

6. Revenue

Total revenue also reduced from Rs. 100833.77 Lakh in 2025 to Rs.62982.81Lakh in 2024.

7. Other Income

Income from other sources during the Current Year ended 31^st March, 2025 was Rs.889.66Lakh as compared to Rs. 526.17 Lakh in the previous Financial Year ended 31^st March 2024.

8. Earnings Per Share

The earnings per share for the financial year 2024-25 is Rs. 14.33/- in comparison to figure reported for financial year 2023-24 i.e. Rs. 23.43/-.

9. Details of changes in Key Financial Ratios

Following is the comparative chart of all the significant financial ratios of the company:

S. No. Type of Ratio	2025	2024
1. Debtors Turnover Ratio	17.04	13.99
2. Inventory Turnover Ratio	22.07	25.70
3. Interest Coverage Ratio	21.84	30.21
4. Current Ratio	2.84	6.43
5. Debt Equity Ratio	0.11	0.003
6. Operating Profit Margin Ratio	8.13%	7.84%
7. Net Profit Margin Ratio	3.58%	3.62%

Human resources

The company has impressive record of maintaining human relations at all levels in past due to the professional approach of the management. The company has rarely faced any unrest or discomfort in connection with employees.

Your companys philosophy on people is deep rooted in building and nurturing talent and leadership within the organization. We believe that our people have always been the drivers of innovation, efficiency and productivity leading to our consistent track record of growth The Company continuously invests in the development of its human resources through a series of employee friendly measures aimed at talent acquisition, development, motivation and retention. Our focus and belief lie in enabling and empowering our talent pool for the challenges of tomorrow by providing new avenues of learning and development through behavioral and leadership interventions.

Human Resources at DP Group of Industries serve as a steward for excellence and leadership through:

• Organizational effectiveness by ensuring good governance and adopting best practices

• Fair process for recruitment, retention and enrichment

• Continuous Employee Engagement

• By providing regular performance-based incentives

Employee engagement at the company does not end with hiring of an employee; in fact, it begins with the employees appointment and continues through his whole career span in the organization.

The company is also carrying regular performance appraisal of employees to enable them identify their strengths and weaknesses and to strive for better performance.

CAUTIONARY STATEMENT

This report contains several forward-looking statements that involve risks and uncertainties, including, but not limited to, risks inherent in DP Wires growth strategy, acquisition plans, dependence on certain businesses, dependence on availability of qualified and trained manpower, economic conditions, government policies and other factors. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto

	For & on behalf of the Board of Directors
	Sd/-	Sd/-
	Anil Kumar Mehta	Praveen Kataria
Place : Ratlam	Chairman (DIN:07657024)	MD Chairman (DIN: 00088633)
	90/3, Sajjan Mill Road, Sajjan Mill	63, Ghas Bazar, Ratlam,
Date : September 05, 2025
	Ratlam, 457001 MPIN	457001 MP IN