Goyal Aluminiums Ltd Management Discussions

The aluminium industry in 2025 stands at a pivotal juncture, shaped by evolving market dynamics, geopolitical uncertainties, and the accelerating drive toward sustainability. Stakeholders must navigate these complexities to position themselves for a transformative year ahead.

Global primary aluminium production increased consistently from 2020 to 2025. This suggests a growing demand for primary aluminium, likely driven by various sectors like construction, transportation, and packaging. Global primary aluminium production increased from 69.04 million tonnes in 2022 to 70.7 million tonnes in 2023.

Global Aluminium Production Trends: 2020-2024 (in million tonnes) Primary aluminium production trend

Note: The primary aluminium production number is based on company data reported directly to the IAI (up to November 2024); the remaining period is based on estimation.

The global aluminium market size from 2025-2030, with a projected value of $355 billion by the end of the forecast period.

The market is anticipated to expand at a compound annual growth rate (CAGR) of approximately 4.8 per cent during this timeframe. This growth is primarily driven by increasing demand from various end-use industries, including automotive, construction, packaging, and electrical. The automotive industry, in particular, is expected to be a significant driver of aluminium demand due to the growing trend of lightweighting vehicles to improve fuel efficiency and reduce emissions. The industrys headwinds are formidable: soaring energy costs, volatile trade policies, and regulatory hurdles threaten market stability.

One of the most defining trends of 2025 is aluminiums paradoxical role in the sustainability movement. Of course, sustainability is not a new trend in the industry; it is driving the industry to a greener future and positioning aluminium as the metal of the future.

On one hand, the metal is indispensable in decarbonisation efforts, particularly in electric vehicles, renewable energy infrastructure, and lightweight construction. However, its production remains one of the most energy-intensive industrial processes, contributing significantly to global carbon emissions.

The aluminium sectors heavy reliance on global trade makes it especially vulnerable to geopolitical shocks. Sanctions on Russian metals, Chinas dominance in primary aluminium production, trade tariffs, Europes energy crisis, and the economic slowdown are all reshaping supply chains in ways that could lead to unpredictable price swings. The report

highlights an impending supply-demand imbalance·while aluminium demand remains strong.

Trade policies will also play a critical role. With Chinas production nearing its regulatory ceiling, any stimulus measures from Beijing could trigger a new wave of market distortions. Meanwhile, in Europe, stringent environmental regulations are forcing smelters to either shut down or transition to costlier energy sources. The United States, despite its stable demand, is grappling with supply constraints, primarily due to its dependence on Canadian imports and the White House administrations new tariff threats on Canada, Mexico and China. Will it open the doors for the other primary producers? The United States prioritises green aluminium initiatives, investing in sustainable solutions with a strong emphasis on secondary aluminium production. Additionally, it is driving primary aluminium production using renewable energy sources.

With global aluminium consumption projected to grow steadily, should companies double down on expansion plans? The answer is far from straightforward. While demand for aluminium in EVs, packaging, and renewable energy is rising, the capital-intensive nature of smelting means that many firms remain hesitant to invest aggressively.

Note: Aluminium usage includes primary & recycled metal;

Source: https://www.alcircle.com/news/global-aluminium-industry-outlook-2025

https://www.alcircle.com/api/media/1737994477.44137 global-aluminium-industry-outlook-2025-sample-copy.pdf INDIAN ECONOMY

India Aluminium Market was valued at USD 11.28 billion in 2023, and is predicted to reach USD 19.76 billion by 2030, with a CAGR of 7.6% from 2024 to 2030.

Indias ambitious infrastructure development plans significantly impact the demand for aluminium. The construction of new airports, railways, highways, smart cities, and other infrastructure projects necessitates using aluminium due to its lightweight, durability, and corrosion resistance. According to the National Investment Production and Facilitation Agency, the Indian government intends to invest USD 1.4 trillion in infrastructure between 2019 and 2023 to achieve sustainable national development. Since 2019 many road infrastructures, gas pipeline initiatives, and industrial development have occurred. The governments focus on enhancing urban and rural infrastructure creates a strong demand for the aluminium market in India.

For instance, in 2021, India inaugurated Scandinavias biggest wind farm, "Kriegers Flak," which has a total capacity to cover the electricity consumption of approximately 600,000 Danish households. The emphasis on renewable energy sources and Indias commitment to transitioning to clean energy contribute to the demand for the aluminium market in the wind energy sector.

However, the aluminium industry is affected by environmental regulations and sustainability requirements such as emissions control, waste management, and energy efficiency targets, which can increase operational costs and pose challenges for some producers. Compliance with stringent emissions standards, waste management regulations, and energy consumption targets can require significant investments and efforts to reduce the environmental impact of aluminium production. These sustainability measures aim to minimize emissions, promote responsible waste management, and encourage energy efficiency. While these regulations are essential to promote a greener and more sustainable industry, they can add to the overall costs and complexities of aluminium production.

On the other hand, the increasing emphasis on sustainable packaging is expected to create ample growth opportunities for the market in the future. Aluminium is well-suited for applications such as cans, bottles, and foils, benefiting from its recyclability and ability to maintain product quality and freshness. Eco-conscious consumers and brands seeking to minimize their environmental impact prefer aluminium as a preferred choice. By opting for aluminium packaging, they reduce waste and promote sustainability, aligning with their commitment to a greener future. This growing demand for sustainable packaging solutions drives the growth of the aluminium market.

Source:https://www.alcircle.com/specialreport/2389/india-aluminium-market-report-forecast-till- 2030?m=true&srsltid=AfmBOopEtC3Ivpf MHuC5Ko5Q2DBRoCqGUwvziOOVde3vMuqIvfelz0U

INDUSTRY STRUCTURE AND DEVELOPMENTS

Aluminium Industry is the second most important metallurgical industry in India. Aluminium has gained popularity as a substitute of steel, copper, zinc and leads in a number of industries because it is light metal, resistant to corrosion, a good conductor of heat, malleable and becomes strong when it is mixed with other metals. There are 8 aluminium smelting plants in the country located in Odisha (formerly Orissa) (Nalco and Balco), West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra and Tamil Nadu. In 2004, India produced over 600 million tons of aluminium. Bauxite, the raw material used in the smelters is a very bulky, dark reddish coloured rock. The flow chart given below shows the process of manufacturing aluminium. Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for location of the industry.

Aluminium is a metal of significant strategic importance to India, critical to almost all sectors of significance to modern life and essential to build a sustainable tomorrow. By virtue of its unusual properties like high strength-to-weight ratio, exceptional design flexibility, superior thermal & electrical properties, 100% recyclability over and over again, Aluminiums demand in space exploration, aviation, electric vehicles, renewable energy production, electricity transmission, construction, consumer goods, and more, is only slated to increase.

India is a leading player in the global Aluminium industry with the second largest Aluminium production capacity of about 4 million tonnes per annum (MTPA).

Indias Aluminium demand is estimated to double again by the year 2025 with current resilient GDP growth rate driven by increasing urbanization and push for boosting domestic infrastructure, automotive, aviation, defence, and power sectors.

OPPORTUNITIES AND THREATS

Aluminum is the most abundant mineral on earth behind oxygen and silicon, making it the most abundant metal naturally found on the planet and the second-most used metal globally, behind only Iron. It is largely used as an alloy, even if the aluminums content is as high as 99%. The Aluminium industry meets the requirements of a wide range of industries including engineering, electrical and electronics, automobile and automobile components etc. The principal user segment of the aluminums industry in India continues to be the electrical and electronics sectors followed by automotive, transportation, building, construction, packaging, consumer durables.

According to data released by Department for Promotion of Industry and Internal Trade (DPIIT), Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the tune of US$ 13.4 billion in the period April, 2000 to March, 2020 (Source: Aluminium Industry India - Sector Research & Analysis - Equity master)

The aluminium business continues to be affected to a large extent by the volatility in the aluminium raw material prices, foreign exchange fluctuations and low-quality aluminium products being dumped by neighboring countries.

The Board of Directors regularly overview external and internal risks associated with the operations of the Company and carries out its impact assessment & effective implementation of the mitigation plans and risk reporting is conducted.

BUSINESS PERFORMANCE

The Company has reported consolidated revenue from operations is Rs. 7,67,947.34 thousand and total standalone revenue from operations is Rs. 7,67,947.34 thousand against total consolidated revenue from operations is 6,87,242.17 thousand and total standalone revenue from operations is Rs. 6,87,242.17 thousand in previous year. The consolidated Net profit for the year under review amounted to Rs.22,864.17 thousand and total standalone Net profit Rs. 14,887.90 thousand in the current year as compared to consolidated Net profit Rs. 23,211.88 thousand Lakh and total standalone Profit incurred in last year amounting to Rs. 25,590.67 thousand.

OUTLOOK

The presence of a stable government at the center will be a major catalyst in taking major decisions which would push forward the pace of reforms and thereby directly improving the macro-economic environment. It is now being forecasted that in the near future, the Indian economy will become the fastest growing emerging market.

RISKS AND AREAS OF CONCERN

The Company is exposed to several inherent market risks from its normal business activities. These risks include changes in raw material prices, foreign currency exchange rate, interest rate which may adversely impact the Companys financial assets, liabilities and/or future cash flows. The Company is trying to mitigate these risks by carefully planning an optimum sales mix, product diversification, innovation and penetration of domestic and international markets and active treasury management, Further cost saving measures across all segments of the Company, would help in improving the margins in an otherwise difficult market.

Our strength is our determination and team work, weakness is the low equity base, opportunities are multiples and threats are the vibrations in the economy and government policies.

In any business, risks and prospects are inseparable. As a responsible management, the Companys endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has carried out the internal audit in-house and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system. The system also ensures that all transaction is appropriately authorized, recorded and reported. Exercises for safeguarding assets and protection against unauthorized use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management and as and when necessary, improvements are affected.

The internal audit process is designed to review the adequacy of internal control checks and covers all significant areas of the companys global operations.

The company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company has reported consolidated revenue from operations is Rs. 7,67,947.34 thousand and total standalone revenue from operations is Rs. 7,67,947.34 thousand against total consolidated revenue from operations is 6,87,242.17 thousand and total standalone revenue from operations is Rs. 6,87,242.17 thousand in previous year. The consolidated Net profit for the year under review amounted to Rs.22,864.17 thousand and total standalone Net profit Rs. 14,887.90 thousand in the current year as compared to consolidated Net profit Rs. 23,211.88 thousand Lakh and total standalone Profit incurred in last year amounting to Rs. 25,590.67 thousand.

Directors of your company have been vigorously working on to acquire more order to increase the companys profits. And continuously looking for a new avenue for future growth of the Company and expect growth in future period.

KEY INITIATIVES WITH RESPECT TO STAKEHOLDER RELATIONSHIP

A Stakeholders relationship committee is formed for reviews of statutory compliances and services relating to security holders, dividend payments and performance of Registrar and Transfer Agents. No complains was raised or received from any shareholders during the year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

The Company had sufficient numbers of employees at its administrative office. The Company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The Company enjoyed excellent relationship with workers and staff during the last year.

SUMMARY OF KEY FINANCIAL METRICS AND KEY RATIO

The Summary of Key Financial metrics and Key Ratio has been mentioned in the Note No. 36 of Audited Financial. CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements” within the meaning of applicable laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand- supply conditions finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations, tax laws, natural calamities litigation and industrial relations, monsoon, economic developments within the country and other factors.

For and on behalf of Board of Directors Goyal Aluminium Limited

SD/- SD/-

(Sandeep Goyal) (Kanchan Goyal)

Date: 22/08/2025 Chairman, Managing Director & CFO Director

Place: New Delhi DIN:07762515 DIN: 09597233