Gorani Industries Ltd Management Discussions

INDUSTRYSTRUCTURE AND DEVELOPMENTS

Changing household and commercial lifestyles, availability ofeconomical electricity, rising concerns regarding eco- friendly and energy efficient appliances are expected to be the key drivers of the kitchen appliances market size. Development of e-commerce distribution channels, emergence of Information technology and other smart technologies will support further the overall kitchen appliances market share.

Environmental concerns regarding rising pollution and global warming has led to the development of appliances that are energy efficient. Technological advancements in accordance to this trend may help manufacturers garner huge gains over the forecast timeline. Moreover, regulatory bodies are expected to entertain such portfolio in the industry and may boost the current growth rate which is corroborated by the measures taken by exchequer with regard to MSME enterprises, start-ups through various subsidy schemes.

The Company is in the business of production, manufacturing and dealing in Kitchen appliances and Home appliances which is one such sector within the overall household segment that has been in the limelight in recent past. Kitchen appliances are gaining popularity due to the rise in disposable income and changing lifestyles of people, which in turn narrowing the price gap between similar consumer products offered by different companies. In addition to this, technological advancements in appliances have also catalyzed the growth of kitchen appliances market. Easy to operate and safely functional appliances are the need of the hour, which has led to the development of smart, standardized and efficient appliances. All products of the Company are ISI certified and are sophisticated to bring the age-old domestic appliances to a new height. The legendary products of the Company like BLOWHOT, ONLINEreflect the sophistication of the products and the reliability as well as exquisite look due to modernization of the design of the product.

Discussion on financial performance with respect to operational performance:

Sr. No. Particulars	2024-25	2023-24
1. Net Sales from operations	42,98,84,066	42,32,02,778
2. Other Income	23,71,205	33,73,010
3. Sub-total	43,22,55,271	42,65,75,788
4. Total Expenditure (Before interest and Depreciation)	40,62,76,487	39,51,97,311
5. Operating Profit (EBIDTA)	2,59,78,784	3,13,78,477
6. Operating Margin %	6.04%	7.41%
7. Profit / (Loss) After Tax	85,75,068	1,35,84,535
8. Return on Capital Employed % (EBIT)	16.57%	21.85%
9. No. of Months Receivables (Receivables / Sales X 12)	2.48	2.69
10. Current Ratio (Current Assets / Current Liabilities)	1.62	1.65
11. Borrowings: Equity Ratio (TL/Equity)	0.83	0.82
12. Production (Nos.):-
(A) Gas Geyser	31,728	31,313
(B) LPG Glass Top	54,141	58,729
(C) Chimney	26,184	31,381

Companys revenue from operations for the year 2024-25 was Rs. 42,98,84,066/-, reflecting an increase of 1.58% over the previous year. The Companys profit before exceptional items and tax during the year ended 31st March 2025 was Rs. 1,19,40,107/-, Fell by 32.86%.

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION (EBIDTA)

During the fiscal 2024-25, the Company reported an EBIDTA of Rs. 2,59,78,784/- when compared to the previous years figure of Rs. 3,13,78,477/-.

PROFIT BEFORE TAX (PBT)

PBT was at Rs. 1,19,40,107/- in FY 2025, compared with previous years Rs. 1,77,84,617/-.

PROFIT AFTER TAX (PAT)

PAT stood at Rs. 85,75,068/- in FY-2025 as compared to Rs. 1,35,84,535/-in FY-2024.

EARNINGS PER SHARE (EPS)

EPS in the fiscal 2024-25 stood at Rs. 1.60 per share compared to EPS of Rs. 2.53 per share in fiscal 2023-24.

OPPORTUNITIES ANDTHREATS

Demand for smart kitchen appliances has increased over the past few years. Technological advancements have influenced the demand for up gradation of kitchen appliances, thereby enabling smooth and reliable productivity while cooking. The Company has been adopting the strategy of continuously offering innovative, newer and improved products as well as marketing strategies to stay above competition whether organized or unorganized as a result of this the newly developed Chimney has shown the growth in demand and has secured a status amongst the other established brands of same kind and quality with the most competitive pricing factor.

These facts are supporting practically our belief of catching and then holding the pace of growth in our segment of products, as also revealed by the current year performance considering the industry wise slack season in the last quarter of the financial year.

The Company is in the process of making and implementing the strategies to capitalize available opportunities and minimizing the threats to ladder products across capacities, formats and prices. The Company will put its every effort to maximize the internal accruals by way of input tax credit available in the GST law and by optimizing the product common costs so as to enable it to sustain profitably in the market.

The single threat Company foresees is the political conditions of China which may cause delay in import of components and volatility in foreign exchange rates and also a radical chance of product itself getting obsolete due to certain government policy.

SEGMENT WISE PERFORMANCE/PRODUCT WISE PERFORMANCE

The Company has only one segment of Home Appliances and the products considered as part of the segment are, LPG stoves. Gas Hobs, Gas geysers. Water Heaters and Kitchen Chimneys.

The Company is hopeful that through a combination of powerful marketing strategies, innovative new products and market development and expansion activities, it would increase its share in the domestic market of most of its products. The newly added organized customers to the chain of Company products due to GST regime are very promising

for the segmental growth.

OUTLOOK

The Indian kitchen appliances market grew at a healthy double-digit rate over the last decade, driven by a host of factors such as increasing rural penetration, improved disposable incomes and a revolution in lifestyle standards, purchasing preferences and buying trends. In the last couple of years, availability of our products on the e-commerce platform has shown an attractive growth and looking in to the current scenario of people purchasing products directly through such platforms the Company sees the jump in the turnover.

However, in the last four years, the high growth of the past tapered off thus witnessing a sobering effect in the kitchen appliances industry. The key growth challenge encountered by the industry primarily came from the consumer sentiment and stagnation of incomes.

RISKANDCONCERNS

Our Company has developed and implemented a Risk Management Policy which includes identification of elements of risk, if any, which in the opinion of the Board, may threaten the existence of the Company.

Our Company continuously monitors and revisits the risks associated with its business. The Company has review mechanism of risks at regular intervals. The management of the Company has identified some of the major areas in relation to business strategy, operations and transactions, statutory/legal compliance, financial reporting, information technology system and overall internal control framework. With improved efficiencies and economies of scale your Company is hopeful of maintaining a healthy margin and return on capital employed. Efficient working capital/ asset management, cash generation and robust stewardship will continue to be ourfocus areas as in the past.

Risks identified through our risk management processes are prioritized and, depending on the probability and severity of the risk. We have general response strategies for managing risks, which categorize risks according to whether the Company will avoid, transfer, reduce or accept the risk. INTERNALCONTROL

The Company and the Management has adequate internal control systems in place to safeguard and shield the Company from losses and, unofficial use or deposition of assets. This also ensures that the Companys assets and interests are carefully protected and all the transactions are appropriately authorized, recorded and presented to the

management. The Company always adheres to prescribed guidelines and follows all Accounting Standards prescribed for maintenance of books of accounts and reporting of financial statements. The appointed internal auditor monitor and report on the effectiveness of the internal control systems of the various areas of operations Key matters that are reported in the Internal Audit are brought to the notice of the Audit Committee of the Board of Directors and corrective measures are recommended and appropriate actions are taken. The Internal Control systems ensure the business operations function efficiently and the applicable laws, rules, regulations, policies of the Company are followed, in addition to safeguarding the reliability of financial reporting. HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT The Company fully values the Human Capital and continued to have the cordial and harmonious relations with its employees. The Company focuses on training of employees on a continuous basis. The Company considers the quality of its human resources to be most important asset and constantly endeavors to attract and recruit best possible talent. The Company maintains a strong business linkage to all human resource and initiatives.

The Unit of the Company has 217 non-management employees. The overall relations with these employees continued to be cordial and harmonious during the year 2024-25. As on 31st March, 2025, the employee strength of the Company was 224 as compared to 243 as on 31st March, 2024.

SIGNIFICANTCHANGES

Details of significant changes in key financial ratios, along with detailed explanations therefor, including:

i. Debtors Turnover-4.68

ii. Inventory Turnover-2.10

iii. Interest Coverage Ratio-2.19

iv. CurrentRatio-1.62

v. Debt Equity Ratio-0.83

vi. Operating Profit Margin (%)-6.04%

vii. Net Profit Margin (%)- 2.00%

viii. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.-

Disclosure of Accounting Treatment:

Being the listed public limited company, the Indian Accounting Standards (IND-AS) are applicable on the Company and the standards as on date notified were applied while preparingthefinancial statements.

Cautionary Statement

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, predictions & contains forward looking statements within the meaning of applicable rules and regulations. It contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.

By Order of the Board Sd/-

Date:26thAugust2025 Nakul Gorani

Place: Indore (Holding DIN : 06543317)

(Chairman cum Whole Time Director)

Regd. Office:

Plot No. 32-33, Sector F,

Sanwer Road, Industrial Area,

Indore-452015 (M.P.)