Hawkins Cookers Ltd Management Discussions

We operate in the Kitchenware market consisting of Pressure Cookers, Cookware and Kitchen Electricals. The industry structure is quite competitive with both small-scale and organized sector units. During the year, we have successfully launched our first electrical kitchen product, the Smart Electronic Kettle. We have also commenced commercial operations at our fourth factory in India at A-3, Sathariya Industrial Development Area, Jaunpur District, Uttar Pradesh, in the month of June 2025.

The raw material costs were very high during the year and importing was not economical. We expect the competition to be intense, but your brands strength has continued to improve in both pressure cookers and cookware. We expect our products to continue to do well with the 58 new product launches we have done during the year at a rate of more than one launch per week. We have plans of further increasing new product launches in the next year.

Our permanent employees as on April 1,2024, were 593 and as on March 31, 2025, were 572 through normal attrition and recruitment. The morale of our employees at all locations is high and industrial relations are normal. We appreciate the contribution of our employees to the successful working of your Company.

Net profit after tax as a percentage of net sales in 2024-25 was 10.3% as against 10.7% in 2023-24. The average shareholders funds/net worth grew to Rs.358.36 crores vs. Rs.304.81 crores in 2023-24. The net return after tax on shareholders funds/net worth was 32% (in 2023-24: 36%).

In our judgment, the Company has adequate financial and administrative systems and controls and an effective internal audit function.

The required details of significant changes (25% or more) in the key financial ratios for the year 2024-25 as compared to the year 2023-24 are as follows:

Cash flow during the year was good. Cash and cash equivalents plus balances with banks on deposit accounts as on March 31, 2025, were Rs.191.21 crores (previous year: Rs.182.56 crores). We have plans to utilise these funds appropriately, including for working capital, improving quality and in further expanding production capacity.

Your Company has a Risk Management Committee as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of which are provided in the Report on Corporate Governance.

Foreseeable risks that the Company may encounter and concerns have been addressed in a documented Risk Management Framework and Policy which is reviewed by the Risk Management Committee and the Board from time to time.

Our capital and financial resources, liquidity position, supply chain and assets are healthier than ever.

The excellent demand for our brands augurs well for the future of the Company.

The cost of Aluminium, our main raw material, has increased substantially, though the price trend currently seems to be downwards. Your Company is taking steps to deal with the challenge including taking appropriate price increases in our products from April 2025.

General inflation can impact the purchasing power of our customers.

Management continues to diligently watch the cost trends and pursues effective cost controls from time to time to keep our products affordable.

We believe the outlook for our business is excellent under the circumstances. In this year, we have further strengthened the good reputation we have amongst our consumers and traders, associates and vendors. We expect to continue to increase our sales and profits.

All forward-looking statements in our report are based on our assessments and judgments exercised in good faith at this time. Of course, actual developments and/or results may differ from our present anticipation.

Prof. Leena Chatterjee was re-appointed by the shareholders at the 64th Annual General Meeting (AGM) of the Company on August 5, 2024, as an Independent Director for a second consecutive term of five years with effect from August 6, 2024, on the recommendation of the Board.

General V. N. Sharma (Retd.), Independent Director, ceased to be a Director with effect from September 18, 2024, consequent to the completion of his second consecutive five years term as an Independent Director of the Company. The Company has immensely benefitted from his experience, insights and inputs on all aspects during his 25 year long association with the Company. The Directors place on record their deep appreciation for his contribution to the Company.

All the five Independent Directors, namely, Mr. Ravi Kant, Prof. Leena Chatterjee, Mr. Murli Aildas Teckchandani, Mr. Shyamak Ramyar Tata and Mr. Sanjay Khatau Asher, have given written declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013, and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Mr. Sudeep Yadav retires by rotation as a Director at the 65th AGM of the Company and, being eligible, offers himself for re-appointment for which the Board has resolved to recommend to the shareholders a suitable resolution.

The present tenures of Mr. Subhadip Dutta Choudhury, Chairman and Managing Director designated as the Chief Executive Officer, and Mr. Sudeep Yadav, Vice-Chairman and Chief Financial Officer, will end on September 30, 2025. Pursuant to the recommendations of the Nomination and Remuneration Committee and the Audit Committee, the Board at its Meeting (Serial No.41) held on May 28, 2025, approved and resolved to recommend to the shareholders suitable resolutions for the re-appointments of Mr. Dutta Choudhury as the Chairman and Managing Director designated as the Chief Executive Officer and Mr. Yadav as the Vice-Chairman and Chief Financial Officer for a further period of three years each with effect from October 1,2025, on revised terms as stated in the Notice to Shareholders for the 65th AGM of the Company.

All the Directors, including Independent Directors, were extensively updated on the Companys performance and plans on May 27, 2025. The required details of the Independent Directors Familiarization Programs are available at https://www.hawkinscookers.com/idfp.

The value of exports at Rs.73.28 crores in 2024-25 was up 30.2% over the previous year. Foreign Exchange used in 2024-25 was Rs.39.02 crores (Rs.19.81 crores in the previous year). Your Company has been recognised as a two-star export house.

Our Research & Development Unit is recognised by the Department of Scientific and Industrial Research. The expenditure on Research & Development in 2024-25 was Rs.10.50 crores, 36.6% higher than the previous year. Required details are given in Appendix I.

Efforts continue in our factories and offices to save energy wherever possible.

The required details of Fixed Deposits taken under Sections 73 and 76 of the Companies Act, 2013, are as follows:

(a) Additional Amount accepted during the year: Rs.2.66 crores.

(b) Amount that remained unpaid or unclaimed as at the end of the year: Nil.

(c) Default in repayment of deposits or payment of interest thereon: Nil.