Garware Marine Industries Ltd Management Discussions

INDUSTRIAL STRUCTURE & DEVELOPMENT:

Your Company continues to operate its Ship Repair Division.

OPPORTUNITIES:

The Company has earned a profit during the year in view of increase in Income from ship repairing services. At the same time, costs continued to be controlled The Company also hopes its main customer will grow in the future years which will translate into higher Income for the Company as well. The Company strives to improve and increase its customer base in the future and will hopefully be able to achieve the same as vessel upkeep requirements become more affordable in view of the improvement in the industry conditions.

THREATS:

The main threat faced by the Company will be from increasing competition form repair outfits which tend to "mushroom" every time the industry conditions improve. Additionally, the future of the Company is primarily dependant on the future of its main customer and while the Company is making efforts to reduce its dependence on one Company it has been difficult to expand its customer base.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company operates in a single segment viz. ship repairs.

OUTLOOK:

In the short term, while the Company continue to face challenges, one favourable aspect is that the Companys main Customer is expected to increase the size of its fleet in FY 25/26. The Company continues to put ion efforts to widen its Customer base and expects its efforts to "bear fruit" during the year

On a long term horizon, the Company hopes that Offshore Shipping market continues to sustain inspite of the global uncertainties that persist in the world today, and Customers once again expand their fleets, which would translate into more business for the Company. The Company is also looking to expand its operations/increase its "flying squad" members in anticipation of an increase in demand for Ship repair services.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Company has an Internal Control System commensurate with its business. Adequate measures have been taken to mitigate all types of unforeseen risks and to protect the Company from any potential risks which may affect the existence of the Company and the Board of Directors. Utmost care has also been taken to ensure preservation of interest of all its stakeholders. The Audit Committee reviews the report of Internal Auditors and recommends steps for future improvement with respect to internal control.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue from operations (including other income) for the year ended 31st March, 2025 stood at Rs. 120 42 lakhs as against Rs. 71.21 lakhs for the previous year ended 31st March, 2024 (increased by 69.11%).

The profit for the year ended 31st March, 2025, stood at Rs. 43.14 Lakhs as against a loss of Rs 6.81 lakhs for the previous year, in view of a substantial increase in revenue from operations and the control over costs.

As a result of an increase in market price of listed investments, Other Comprehensive Income stood at a "surplus" of Rs 647.68 lakhs as opposed to Rs. 320.28 lakhs for the previous year. Therefore, the Total Comprehensive Income for the Year stood at a profit of Rs.690.72 Lakhs as against a profit of Rs. 313.67 Lakhs in the previous year.

No material changes/commitments have occurred after the financial year ending till date of this report, which affected the financial position of the Company

The Company does not have any debt outstanding.

FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, following are the details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

Key Financial Ratios	F.Y. 2024- 25	F.Y. 2023- 24	Change in %	Remark
Return on equity Ratio	2 40%	-0.62%	489.78%	Due to profit generation during the current year.
Trade Receivable Turnover Ratio	0 25%	0.14%	73.47%	Due to increase in total income.
Net Capital Turnover Ratio	0.26%	0.15%	65.36%	Due to substantial increase in total income .
Net Profit Ratio	35.90%	-10.29%	448.79%	Generation of Profits in the current year.
Return on capital employed	2.31%	-0.58%	498.59%	Generation of Profits in the current year

RISKS AND CONCERNS

While in the short term the Company will face challenges, in view of the reduction on the fleet of Vessels owned by the Companys main Customer in the recent past, we hope the medium /long term will be better in terms of sales and margins as the Company tries to widen its customer base and its main Customer undertakes expansion of its fleet.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Cordial relations were maintained at all levels. The Company wishes to place on record its appreciation of all the sacrifices made by dedicated employees.

FORWARD-LOOKING STATEMENTS:

Statements in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events The Companys actual results could differ materially from those expressed or implied The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Further, important factors that could make a difference to the Companys performance are circumstances in the industry, tax regimes and acts of God.