Hawa Engineers Ltd Management Discussions

KEY FINANCIAL RATIO:

Pursuant to amendment made in Schedule V to the SEBI Listing Regulations, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios and any changes in Return on Net Worth of the Company (on standalone basis) including explanations therefore are given below:

Sr.	Particulars	F.Y. 2024-25	F.Y. 2023-24	% Changes
	PROFITABILITY RATIOS (%):
1	Operating Profit Margin	5.15	5.05%	0.10%
2	Net Profit Margin	1.32%	1.50%	-0.18%
3	Return on Net Worth	8.05%	9.87%	-1.82%
	WORKING CAPITAL RATIOS:
4	Debtors Turnover	5.97	5.79	0.18
5	Inventory Turnover	6.31	5.98	0.33
	GEARING RATIOS:
6	Interest Coverage	2.10	1.76	0.06
7	Debt / Equity	0.82	1.05	-0.23
	LIQUIDITY RATIO:
8	Current Ratio	1.82	1.67	0.15

Return on Net worth ration is decreased due to decreased in net profit of the company.

Global Economy

In 2025, global economic expansion demonstrated resilience, as inflation decreased at a faster pace than expected. However, outcomes varied among countries, with robust growth seen in the United States and numerous emerging markets, while most European countries experienced a slowdown. Projected global growth stands at 3.1% for 2024 and 3.2% for 2026. However, this projection for 2024-25 falls below the historical average of 3.8% (2000 19). Elevated central bank policy rates aimed at curbing inflation, reduced fiscal support due to high debt burdens dampening growth contribute to this outlook.

VALVE INDUSTRY STRUCTURE AND DEVELOPMENTS:

India Industrial Valves Market was valued at USD 3,736.73 million in 2025 and is anticipated to project robust growth in the forecast period with a CAGR of 7.74% through 2030 The India industrial valves market comprises a wide range of valves used across various industries to control the flow of liquids, gases, and slurries within a system. These valves are crucial components in sectors such as oil and gas, power generation, chemicals, water and wastewater treatment, and manufacturing The markets growth is driven by several key factors, including rapid industrialization and urbanization, which increase the demand for energy and infrastructure. As India continues to develop its industrial base, the need for efficient flow control mechanisms becomes more critical fostering the demand for industrial valves. Additionally, government initiatives aimed at boosting domestic manufacturing under the "Make in India" campaign and increasing investments in infrastructure projects further propel market growth The expansion of the oil and gas industry, along with the growing power sector, also contributes significantly to the rising demand for industrial valves With the emphasis on upgrading aging infrastructure and the development of smart cities, there is a continuous need for advanced and reliable valve solutions to ensure optimal performance and safety. Furthermore, the increasing focus on water and wastewater management due to nsing environmental concerns necessitates the use of specialized valves for effective treatment processes Technological advancements, such as the integration of ioT and automation in valve operations, enhance efficiency and monitoring, making modern industial valves more attractive to industries. This market is expected to see substantial growth due to the synergy of these factors, alongside the rise in foreign investments and collaborations with international valve manufacturers, which introduce innovative products and best practices into the indian market. Overall, the India industrial valves market is set to rise significantly, driven by a confluence of economic development, technological progress and strategic government initiatives aimed at bolstering the countrys industnal and infrastructure capabilities Global industrial gearbox market is expected to be driven by growing government investments for the development of power generation sector, growing construction activities and increasing automation across varied industries and applications. Moreover, the market is benefitting from increasing investment in renewable power generation, especially wind power, for addressing increasing energy needs and reducing reliance of fossil fuel-based power. The other factors driving the growth and development of global industrial gearbox market is the rapid utilization of industry 4.0 combined with various technologies such as internet of things and artificial intelligence. Rising usage of automated industrial gearboxes in various end use industries such as food processing, agriculture, automotive, and machinery is also supplementing the boost in global industrial gearbox market.

OPPORTUNITIES AND THREATS:

India is poised to grow faster than most of the large economies over the next decade giving rise to tremendous opportunities. The industry is staringat immense growth prospects in terms of exports, enhancing import substitution, expanding aftermarket offerings, developing data-enabled services and solutions, and offering new or modified features in line with constantly shifting market dynamics and changing OEM needs. The automotive value chain is likely to see significant shift to non-traditional sub-segments such as EVs, advanced driver assistance systems (ADAS), dataenabled services, etc. in the coming future. Adapting to the required changes to seize these upcoming opportunities, the auto component manufacturers will be in a strategic position to leapfrog into the global arena.

As uncertainties prevail in the global economy, the industry continues to face a range of business risks related to supply chain and changing customer preference. Delay in economic recovery, increase in commodity prices and forex volatility are some of the headwinds being confronted. Moreover, evolving regulatory and trade environment, technological changes and environmental regulation, continue to pose challenges to the sector.

SEGMENT-WISE PERFORMANCE:

There is no segment in the company.

OUTLOOK:

In 2025, the India industrial valves market is on a strong growth trajectory, driven by economic development, infrastructure expansion, and rapid technological adoption

RISKS AND CONCERNS:

Apart from the normal business risk, no major risk is foreseen.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has proper and adequate systems of internal controls. Internal audits and checks are carried out at regular intervals. An audit committee, headed by an Independent Director, reviews control systems and their adequacy.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The details of the financial performance of the Company appear in the Balance Sheet, Statement of Profit and Loss and other Financial Statements. Highlights for the year 2024-25 are as under:

(Amounts in lakhs)

Particulars	Year Ended 31/03/2025	Year Ended 31/03/2024
Revenue from Operations	12,106.18	11,964.08
Other Income	52.33	43.96
Profit/loss before Depreciation, Finance Costs, Exceptional items and Tax Expense	623.97	604.53
Less: Depreciation/ Amortisation/ Impairment	90.07	81.45
Profit /loss before Finance Costs, Exceptional items and Tax	533.9	523.08
Expense
Less: Finance Costs	297.74	296.71
Profit /loss before Exceptional items and Tax Expense	236.16	226.37
Add/(less): Exceptional items	0	0
Profit /loss before Tax Expense	236.16	226.37
Less: Tax Expense (Current & Deferred)	76.58	46.46
Profit /loss for the year (1)	159.58	179.91
Total Comprehensive Income/loss (2)	0	0
Total (1+2)	159.58	179.91
Balance carried forward	1629.41	1469.83

The financial performance of the Company has been explained in the Directors Report of the Company for the financial year ended 31^st March 2025 appearing separately.

HUMAN RESOURCES:

Human Resources are a key focus area of the Company. The Company endeavours to attract and develop the best talent available in each area of its operations. The Companys policy is to create a conducive environment for nurturing talent and developing the requisite skills needed to keep pace with the ever-changing needs of the market. Training is imparted to employees at all levels and covers both technical and behavioural aspects.

The Industrial Relations scenario during the year under review was smooth. The Company has an excellent track record in this regard and has maintained cordial relationships with all its employees.

CAUTIONARY STATEMENT:

Certain statements in the Management Discussion and Analysis describing the Companys views about the industry, expectations, objectives, etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in the statement. Factors like supply and demand situations, input prices and their availability, changes in Government regulations, economic developments, etc. may influence the Companys operations or performance.

	By order of Board of Directors
	Hawa Engineers Limited
	Sd/-
	Aslam Kagdi
Date: 22.07.2025	Chairman
Place: Ahmedabad	DIN: 00006879