Energy-Mission Machineries (India) Ltd Management Discussions

(Pursuant to Regulation 34(2)(e) and Schedule V ofSEBI (LODR) Regulations 2015)

Your Directors have pleasure in presenting the Management Discussion and Analysis Report" for the Financial Year ended on 31 st March, 2025.

A. OVERALL REVIEW OF THE COMPANY

ENERGY-MISSION MACHINERIES (INDIA)

LIMITED:

Established in 2011, ENERGY-MISSION MACHINERIES (INDIA) LIMITED designs and manufactures CNC, NC and conventional metal forming machines which caters to the industrial sector requirement for metal fabrication solutions. The companys wide spectrum of metal forming machines includes press brake machines, shearing machines, plate rolling machines, iron workers machines, hydraulic presses and busbar bending, cutting & punching machine. The Companys machines are utilized across a wide gamut of industries such as automotive, steel, preengineered building, furniture, HVAC, agricultural equipments, road construction equipments, elevators, food processing machinery, metalworking workshops and many others.

The Company has its plant at GIDC-Sanand, Ahmedabad using the latest technology and process to provide manufacturers with vital precision machines which are required for metal cutting and forming operations.

The Company offers over 600 variants of metal forming machines and the Company has supplied more than 1400 machines to over 1000 customers. The Company has sold products in India and several other countries across the globe which including USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE, Saudi Arabia and other Middle east countries. The Company also provides machinery tools and spare parts such as Die punch, Shearing Blade, Roller Set, Holding Spring, Limit Switch, Foot Switch, Seal Kit, Linear Scale etc. which also aids in addressing after-sales support and services. The manufacturing operations of company comprise, in addition, to its production lines, CNC Plasma cutting shop, machine shop, heavy fabrication shop, hydraulic Cylinder Shop, hydraulic power pack shop, Electrical Panel wiring, sheet

metal shop, shot blasting chamber, paint booth chamber, assembly lines and testing facilities. Further, the following information on the economy and industry is based on the various reports on industry and websites and the Company is not responsible for any discrepancy/error in the information.

B. OVERVIEW OF THE GLOBAL ECONOMY:

In 2025, the global economy continues navigating a complex landscape shaped by geopolitical uncertainties, escalation of trade wars, policy uncertainty, rapid technological advancements, environmental imperatives, and evolving consumer behavior. According to the International Monetary Fund (IMF), the world economy is expected to grow at 2.4% in 2025 down from 3.3% during the last year. This is largely due to rising trade tensions, geopolitical conflicts, and supply chain disruptions. Renewable energy, clean technologies, and circular economy are expected to attract investments and drive economic growth, although investments in various green fuel projects have been deferred by various energy majors. The rise of the middle class, urbanization and digitization across emerging economies is significantly boosting global consumption and economic dynamism. Persistent inflation & supply chain vulnerabilities in key sectors are eroding consumer purchasing power and hindering production.

C. OVERVIEW OF THE INDIAN ECONOMY:

Indias economic growth has demonstrated notable resilience despite heightened geopolitical tensions and moderation in global economic momentum. Macroeconomic stability has been strengthened by ongoing fiscal consolidation efforts and a well-managed current account deficit, supported by the robust performance of the services and agriculture sectors. Prudent economic policies, sustained structural reforms, a strong digital infrastructure foundation, and improving corporate balance sheets have collectively reinforced Indias economic strength, reaffirming its position as the fastest-growing major economy. As of April 2025, the International Monetary Fund (IMF) revised Indias economic growth forecast downwards to 6.2% for the fiscal year 2025-26 from its earlier estimate of 6.5%. Driven by supportive policy measures and robust demand, the IMF predicts a marginal improvement in the growth to 6.3% during the

next fiscal year, and further to about 6.5% in the longer term. This downward revision for the fiscal year 2025-26 reflects the anticipated impact of geopolitical conflicts, global trade uncertainties, particularly the imposition of tariffs by the United States. However, India is expected to maintain its status as the fastest-growing major economy globally

D. INDUSTRY INSIGHT

Indian Industrial and Machine Tools Industry

Machine tool sector is a part of the capital goods industry. It is a sub-sector of the engineering industry included under the category heavy engineering units. Machine tool segment produces mother machines therefore plays a vital role in the technological up gradation, quality control and cost in the engineering & manufacturing sector.

Machine tools industry is a critical part of the manufacturing sector. The machine tools industry in India has been serving the need for manufacturing through the production of machine tools, accessories/attachments, subsystems and parts.

According to Fortune Business Insights" The global CNC (computer numerical control) machine market size was valued at USD 95.29 billion in 2024 and is projected to grow from USD 101.22 billion in 2025 to USD 195.59 billion by 2032, exhibiting a CAGR of 9.9% during the forecast period. Asia Pacific dominated the global market with a share of 55.32% in 2024. The computer numerical controls machine tools market in the U.S. is projected to grow significantly, reaching an estimated value of USD 15.03 Bn by 2032, driven by the rapid technological advancement in the manufacturing sector.

In recent years, automotive processing industry is undergoing rapid development backed by the emergence of digital technology enhancing the grade of auto parts and effectively reducing production costs. The traditional automotive processing industry largely focused on the scale and benefit. However, the introduction of numerical control technology and its extensive application have enabled automotive manufacturers to speed up and optimize the machines run time, including material choice and part tolerances.

India stands 17th in production and 12th in the consumption of machine tools in the world. The country is set to become a key player in the global machine tools industry and is likely to see substantial high-end machine tool manufacturing. Studies have rated India higher in terms of manufacturing capability and availability of quality engineers. This design strength gives the Indian

machine tools industry a competitive advantage, in terms of special purpose machine tools.

E. DISCUSSION ON FINANCIAL

PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The company achieved total Revenue of Rs. 15,112.90 Lakhs in the current year, against Rs. 12,628.93 Lakhs in the previous year, thereby registering increase of 19.67 % as compared to the previous year. The Company has registered a profit of Rs. 1185.99 Lakhs in the current year, against profit of Rs. 1096.76 Lakhs in the previous year, thereby registering an increase in the Net Profit of 8.14 % as compared to the previous year. The Board and upper management worked very hard towards achieving extra-ordinary results.

F. PRODUCT WISE PERFORMANCE DURING THE FY 2024-25

Product	Amount in Lac Rs.
Hyd.Busbar M/c - Finish	21
Hyd. Plate Rolling M/c Finish	336
Hyd.Press Brake M/c Finish	11108
Hyd. Press M/c -Finish	135
Hyd.Shearing M/c- Finish	2136
Hyd.Sigma (Iron) M/c Finish	151
Machinery Parts & Others	1127
Total	15,014

G. OUTLOOK

Your Companys growth is linked to overall economic activity, inflation trends and disposable income. To overcome the challenges and competition, we have taken various initiatives to reduce the operational cost, development of innovative value-added products and exploring new markets based on certain parameters, to achieve better margins in the future.

Your Company is focused on growing its business across all products, regions and formats and will continue to pursue its strategy of targeting growth while maintaining financial discipline.

Your Company also aims to stabilize its operations and profitability by adding to its range of products

and entering new territories for the sale of its products. We are focused to achieve healthy annual growth in the coming years and are working towards strategies and execution that will help us achieve this goal. As the revenue grows, we expect our EBITDA margins also to improve in the coming years.

H. SWOT ANALYSIS STRENGTH

?€? Robust Team of Research & Development.

?€? Ever-growing production capacity.

?€? Wide range of products.

?€? Satisfied and prestigious Client base.

?€? Experienced and Visionary Management.

?€? Trained Workforce.

?€? Debt Free culture.

?€? Strong Operational and Financial Strength.

?€? Delivering value to end users

?€? Strong tender/ Government Business

WEAKNESS

?€? Long manufacturing cycle.

?€? Inventory Maintenance of critical components.

OPPORTUNITIES

?€? Growing demand of capital goods in the market.

?€? Presence of fewer major players in the machine tools industry.

?€? Automation and artificial intelligence opening doors for machine tools manufactures to manufacture high end machines with specifications.

?€? Make in India and Aatmanirbhar Bharat abhyan are triggering concepts for Indian Manufacturer and which will enhance inhouse manufacturing and reduces burden of imports.

?€? There is opportunity and potentiality for Exporting of Machines and Machining components

THREAT

?€? Entry of global players in the machine tools industry.

?€? Mobilization of funds in various segments of industry is very essential for demand pull in capital goods sector. This is to be maintained on macro-economic level otherwise poses a

threat to capacity utilization of any machine tool company since, majority of machines roll out based on end users loan facilities.

?€? External factors such as political,

environmental, technical etc

I. RISK AND CONCERN

The Company has adopted a comprehensive and integrated risk appraisal, mitigation and

management process. The risk mitigation

measures of the Company are placed before the Board of Directors periodically for review and improvement.

J. THE KEY FINANCIAL RATIOS ARE GIVEN BELOW:

The details regarding financial ratios of the company for financial year 2024-25 in comparison with previous year is given after Note 38 as "Ratios" in Notes forming part of Audit Report

K. FUTURE SCENARIO

Machine tool industry has emerged in the new avatar courtesy of Digitalization and Industry 4.0. One of the oldest and traditional industries, the machine tool industry has walked many miles to achieve the current status. In the coming years, digitalization will completely transform the Machine tool industry and the merger of these dynamic elements will result in process efficiency and productivity. Although the industry is flooded with numerous solutions, it is essential to identify the space, which requires transformation and adopt solutions accordingly. The industry is witnessing innovative technological solutions in every aspect of the processes.

The sensor integration, utilization of artificial intelligence (Al), and the integration of sophisticated simulation features, enable the advancements in machine performance and overall equipment effectiveness (OEE). Additionally, the advanced sensors and modern ways of communication, controlling, and monitoring systems allows creating new opportunities for smart services and new business models in the machine tool market. The digitally enhanced services are about to become

part of each OEMs portfolio in the future. Along with various innovative technologies, the market is laden with new trends, which will help to boost the machine tool industry. In the current digital age, mass customization, reduced time-to consumer, error proofing using latest technologies are a few trends that require enhanced machine flexibility. It is essential to comprehend the new machines and utilize them to achieve maximum efficiency. Additionally, core aspects such as price, usability, longevity, process speed, quality, and greater machine flexibility are few characteristics of new machines.

L. HUMAN RESOURCES

Human Resources play a critical role in driving EMMILs strategies and growth. The Company endeavors to become the best place to work for its employees and to provide them with a nurturing environment that is essential for their growth. As on 31 st March, 2025 the company employed 385 Employees. The Company has implemented comprehensive and well-structured HR policies to ensure employee growth both at personal and professional levels. The Companys talent pool comprises a diverse set of experienced and skilled people who play key roles in enhancing business efficiency, devising strategies, setting up systems and evolving business as per industry requirements. The Company provides a safe, conducive and productive work environment to its people. EMMILs strong organizational culture also enables it to attract talented resources. The Company conducts regular training programs for employees to ensure skill upgradation and personnel development. High employee retention levels is a key outcome of this initiate.

M. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has an adequate system of internal controls to ensure that all the assets are safeguarded and are productive. Necessary checks and controls are in place to ensure that transactions are properly verified, adequately authorized, correctly recorded and properly reported. The Internal Auditors of the Company conduct Audit of various departments to ensure that internal controls are in place and are submitting quarterly reports to the Audit Committee. The management maintains adequate internal financial control systems encompassing its entire business

operations, statutory compliances and Financial Reports.

N. CONCLUSION

Your Companys primary focus will be to grow volumes across markets. The Company will address each market depending on local conditions and consumer trends. While we recognize that the global environment is extremely challenging, there are new opportunities emerging to meet consumer needs. Your Company will focus on profitable growth through a mix of brand led growth, innovation and cost efficiencies.

Cautionary Statement: -

This document contains statements about expected events and financial and operational results of Company which are forward-looking. By their nature, forward-looking statements require the Company to make assumption; predictions and other forward-looking statements may not prove to be accurate. Readers are cautioned not to place under reliance on forward-looking statements as a number of factors could cause assumptions, and actual results and events to differ materially from those expressed here.

On behalf of the Board of Directors

Sd/-

Satishkumar Parmar

(Chairman, CFO and Director)

DIN: 03297705

Sd/-

Dineshkumar Chaudhary

(Managing Director)

DIN: 03297711

Date: 22/08/2025 Place: Ahmedabad