Galaxy Agrico Exports Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Industry Overview

During the financial year 2024-25, the agricultural machinery and engineering products sector witnessed significant transformation driven by technological advancements, government initiatives, and export-oriented demand growth.

The industry has seen rapid innovation in precision agriculture, including GPS-guided equipment, drone-based spraying systems, and IoT-enabled tractors and tillers, improving farm productivity and reducing labor dependence. These developments align with Galaxy Agricos core manufacturing strengths in agro-equipment and spare parts.

Under the PM-KUSUM, Sub-Mission on Agricultural Mechanization (SMAM), and other central/state schemes, the Indian government continues to subsidize modern agro machinery, especially for small and marginal farmers. This has expanded the domestic market for cost-effective and durable agricultural tools and components.

Indias engineering goods exports, especially in the forged and casted components and auto parts segments, recorded healthy growth in FY 2024-25. The demand from North America, Middle East, and Europe surged due to global supply chain realignment. Companies with backward integration and versatile manufacturing capacity, like Galaxy Agrico, are positioned to benefit.

2. OPPORTUNITIES AND THREATS:

Opportunities:

• Expansion into organic and inorganic chemicals opens doors to new markets and product segments.

• A streamlined and asset-light structure post-slump sale may allow increased operational flexibility.

• Rising global demand for specialty chemicals and agrochemicals could provide synergy with new object clauses.

Threats:

• Volatility in global and domestic economic conditions may impact business sentiment.

• Rising raw material and logistics costs can pressurize margins.

• The transition from core business activity to a new sector involves inherent execution and market-entry risks.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Currently, the Company operates in a single segment. However, given the recent object clause amendment, it is expected that product and segment diversification may take place in upcoming years. The detailed segment-wise performance has been given separately in the note on "Segment Reporting" forming part of financial statements.

4. OUTLOOK:

Galaxy Agrico Exports Limited is in the process of realigning its business strategy with its expanded scope into chemicals and allied sectors, the Company is evaluating suitable business opportunities. Management is optimistic that this diversification will yield longterm value for stakeholders. This change opens avenues in specialty and industrial chemicals, tapping into new customer bases and market opportunities.

5. RISKS AND CONCERNS:

The Company has implemented a Risk Management Policy to identify and mitigate potential risks. Key concerns include:

• Sectoral risks related to entry into the chemical domain.

• Dependence on economic cycles, particularly for industrial and agrochemical applications.

• Compliance and environmental regulations applicable to chemical-related businesses.

• The major risk factors affecting the company are overcapacity in industry, cash constraints at customers end leading to inventory pile up, increasing receivable position and volatility in currency and raw material prices.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate internal control systems commensurate with the size and nature of its operations. The internal audit function, reporting to the Audit Committee, ensures operational efficiency, safeguarding of assets, and regulatory compliance. Periodic reviews and corrective actions are undertaken based on internal audit findings.

7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Particulars	FY 2024-25 (Rs. in Lakhs)	FY 2023-24 (Rs. in Lakhs)
Revenue from Operations	359.04	723.40
Other Income	24.54	15.33
Total Revenue	383.58	747.73
Total Expenditure	379.35	818.93
Profit / (Loss) Before Tax	4.23	(71.21)
Net Profit / (Loss) After Tax	12.07	(50.43)
EPS (Basic & Diluted)	0.30	(2.05)

The Company generated operational revenue during the year, as opposed to no significant activity in the prior year. Despite incurring a net loss, the operational revival signals potential recovery with strategic redirection.

The Company achieved a Revenue from Operations of Rs. 359.04 Lakhs in FY 2024-25, compared to Rs. 723.40 Lakhs in FY 2023-24. While this reflects a drop year-over-year, it is important to note that FY 2023-24s figures were reported despite a period of dormancy, and FY 2024-25 revenue was realized after significant restructuring and realignment of business activities. The total income stood at Rs. 383.58 Lakhs (previous year: Rs. 747.73 Lakhs), which includes other income of Rs. 24.54 Lakhs.

The Company recorded a Profit Before Tax (PBT) of Rs. 4.23 Lakhs, a considerable improvement from the loss of Rs. 71.21 Lakhs in the previous year. Additionally, after tax adjustments and other comprehensive income, the Net Profit stood at Rs. 12.07 Lakhs compared to a Net Loss of Rs. 50.43 Lakhs in the previous fiscal year, signalling an initial but promising recovery in operational performance.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

The Company recognizes human resources as its core asset. During the year, the overall employee relations remained cordial. The management acknowledges the contribution of its employees and continues to focus on talent retention and organizational growth.

9. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

The Company has not provided specific ratio analysis in the financials. However, due to losses incurred during the year and sale of its major assets, there has been an adverse impact on profitability and return ratios.

10. CAUTIONARY STATEMENT:

Statements in this Report describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments, changes in regulatory environment, and other incidental factors.

	On behalf of the Board of Directors
	GALAXY AGRICO EXPORTS LIMITED
Date: 06th September, 2025	NATHABHAI JERAMBHAI SADARIA
Place: Shapar	Managing Director
	DIN: 00167254