Energy-Mission Machineries (India) Ltd Management Discussions

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

Your Directors have pleasure in presenting the "Management Discussion and Analysis Report" for the Financial Year ended on 31^st March, 2024.

A. OVERALL REVIEW OF THE COMPANY ENERGY-MISSION MACHINERIES (INDIA) LIMITED: Established in 2011,ENERGY-MISSION MACHINERIES (INDIA) LIMITEDdesigns 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 Companyhas its plant at Sanand 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, sheetmetal 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:

According to the IMF, the baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025 will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually. The global economy has been surprisingly resilient, despite significant central bank interest rate hikes to restore price stability. Oil prices have also been steady of late, and range bound, which will also help to decelerate the inflation, which in turn will help in boosting growth globally.

C. OVERVIEW OF THE INDIAN ECONOMY:

India economy has emerged as the fastest- growing major economy in the world and is expected to be one of the top three economic powers in the world over the next few years, backed by its robust democracy and strong partnerships.

United Nations revised its earlier forecasts and said that Indias economy is expected to grow by 6.9% in 2024 and 6.6% in 2025. According to the report the growth will primarily driven by robust public investment and resilient private consumption. This will be mainly driven by strong public investment and resilient private consumption. Although subdued external demand will continue to weigh on merchandise export growth, pharmaceuticals and chemicalsexports are expected to expand strongly," said World Economic Situation and Prospects as of mid-2024. Further, supply chains are expected to move slowly towards many emerging economies, India being one of them. This will help to boost growth.

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 83.99 billion in 2021 and is projected to grow from USD 86.83 billion in 2022 to USD 140.78 billion by 2029, exhibiting a CAGR of 7.1% during the forecast period. The Asia Pacific dominated the CNC (Computer Numerical Control) machine market with a share of 54.44% in 2021.

The growing demand for greater efficiency in complex machining products by industries is expected to affect market growth positively. In addition, an increase in demand for high precision and reduced operating costs and technological advancements in production processes further influence the popularity of CNC technology. Moreover, the surge in mass production of products across industry verticals, including automotive and electronics, accounts for the CNC (Computer Numerical Control) machine market growth. An upsurge in demand for mass customization is also boosting the uptake of these tools.

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. 12,628.93 lakhs in the current year, against Rs. 9,956.34 lakhs in the previous year, thereby registering increase of 26.84 % as compared to the previous year. The Company has registered a profit of Rs. 1096.76 lakhs in the current year, against profit of Rs. 737.50 lakhs in the previous year, thereby registering an increase in the Net Profit of 48.71% as compared to the previous year. The Company and management was also in motion of moving towards Initial Public Offer on NSE EMERGE Platform. The Board and upper management worked very hard towards achieving extra-ordinary results.

F. PRODUCT WISE PERFORMANCE DURING THE FY 2024

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 tomanufacture high end machines with specifications.

• Make in India and Aatmanirbhar Bharat abhyan are triggering concepts for IndianManufacturer and which will enhance in-house manufacturing and reduces burden ofimports.

• 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 2023-24 in comparison with previous year is given after Note 35 in Notes forming part of accounts

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- toconsumer, 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, 2024 the company employed 263 Employees. The Companyhas 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 these 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