Hindustan Tin Works Ltd Management Discussions

According to the International Monetary Fund (IMF), in its July 2026 World Economic Outlook Update, India is projected to remain the fastest-growing major economy, with GDP growth estimated at 6.4% for 2026, while the 2027 outlook has been raised to 6.7%, reflecting confidence in the economy.

Reserve Bank of India (RBI) has projected GDP growth to 6.7 percent in this fiscal year, deciding to keep the Repo rate unchanged at 5.25 percent with neutral stance. RBI Governor, Mr. Sanjay Malhotra has said that countrys economic growth continues to be supported by resilient demand and it remains worlds fastest growing large economy.

India has expanded its trade network by signing or implementing several major Free Trade Agreements (FTA) and Comprehensive Economic Partnership Agreements (CEPAs) with the global economies, including landmark deals with the European Union, the UK, Australia, and European Free Trade Association. This will help tremendous growth of Indian Exports in near future.

Your Company achieved revenue from operations (net of GST) of Rs.42048 lakhs as against the previous years revenue from operations (net of GST) of Rs. 40629 lakhs i.e. an increase of Rs. 1419 lakhs (3.49 %). The export sale of the Company has been decreased from Rs. 9677 lakhs in previous year to Rs. 8531 lakhs in current year i.e. decrease of Rs.1146 lakhs (11.84%).

Your Company has achieved total comprehensive income of Rs. 886 lakhs as against the previous year of Rs. 1164 lakhs.

Your Company has been working with regulatory bodies to develop packaging standards and increase demand of prime tinplate in our country. Your Company is also investing in digitalisation of supply chain, finished goods tracking and better inventory control practices to improve customer compliances and shorter lead times.

OPPORTUNTIES & THREATS

Our Company is one of the leading and established Companies in Metal packaging industry. We are keenly conscious of the emerging opportunities in the can-manufacturing sector in India as well as abroad and we shall endeavor to take benefit of every good opportunity in the very best interest of our members. Following are the opportunity and threats of our Company:

OPPORTUNITIES

1. Historical established performance.

2. Reputed customer profile and wide customer base.

3. Reputation for quality, well recognised brand.

4. Edge in raw material procurement.

5. Ability to expand and diversify.

6. Expansion in export market especially as per recent FTAs.

7. Professionally & technically qualified Human Resource.

8. Priority of the Government to promote Food Processing Industry and MSMEs.

9. Innovation and new product development.

10. Environmental concerns against plastic products.

THREATS

1. Global & Domestic competition.

2. Lower recovery in Global Economy.

3. Volatility in exchange rate (with rupee depreciation).

4. Competition from unorganized sector.

5. Thin margin.

6. Development and innovation in alternate packaging materials

7. Uncertainty in availability of seasonal fruits & vegetables

8. Finance Cost

9. Increased cost of inputs like Tinplate & Labour Cost.

10. West Asia War

11. Antidumping Duty on Easy Open Ends (EOEs) imported from China

12. Scarce availability of EOEs due to quality control order (QCO) dated 17/07/2020 issued by Ministry of Steel

PRODUCT WISE PERFORMANCE

The Company had been mainly focusing on food products and now gradually expanding its base in non food sector. In addition, Company is developing new innovative products for domestic and global market.

OUTLOOK

The outlook of the Company seems to be progressive. The management of the Company is engaged in the task of reducing overheads and other costs. Company has a vision to consolidate its position as leader in metal packaging segment.

RISK

There is a trend towards alternate packaging which is cheaper as compared to metal packaging with shorter shelf life inspite of the fact that metal packaging has an edge over them in terms of shelf life, sustainability etc.

CONCERN

The main concern is the trade war among countries resulting into increase in cost of various inputs and decrease in the exports.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with its size and complexity of operations. The Internal Control systems are aimed at monitoring efficiency of operation, ensuring protection of resources, accuracy and promptness of financial reporting and compliance with statutes and regulations. All the vital internal control systems in the Company are working satisfactorily. Our statutory and Internal Auditors have not reported any serious departure in any of the internal control systems. The Audit Committee of the Company regularly reviews internal control systems of the Company and continuous improvements are being made in the same. Budgets are prepared every year and the actual performance is compared to the budgeted performance. The variances are reviewed on a monthly basis and corrective actions are taken accordingly.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Inspite of fierce competition & extremely challenging domestic and international business environment, your Company achieved revenue from operations (net of GST) of Rs.42048 lakhs as against the previous years revenue from operations (net of GST) of Rs. 40629 lakhs i.e. an increase of Rs. 1419 lakhs (3.49 %). The export sale of the Company has been decreased from Rs. 9677 lakhs in previous year to Rs. 8531 lakhs in current year i.e. decrease of Rs.1146 lakhs (11.84%).

Your Company has achieved total comprehensive income of Rs. 886 lakhs as against the previous year of Rs. 1164 lakhs

STATUTORY COMPLIANCE

All the statutory compliance with respect to SEBI regulations, provisions of the Listing Regulations, 2015 with the Stock Exchanges, Income Tax Act, Goods and Services Tax Act, 2017, Companies Act, 2013 and all other applicable Acts, and Rules & Regulations are complied with.

HEALTH & SAFETY

The Company continuously focuses on the health and safety of all its workers and staff. Adequate safety measures have been taken at the plant for the prevention of accidents or other untoward incident. The necessary medical facilities are available for the workers and staff to maintain good health and also related necessary precautions are being properly followed.

CORPORATE SOCIAL RESPONSIBILITY

The Company recognizes the fact that, beyond the day-to-day conduct of its business, as a responsible corporate citizen, it has to discharge its duties towards the larger society in which it operates.

The core areas identified by your Company and CSR Committee in order to improve the society are Promotion of education & skill development, Eradicating hunger, poverty and malnutrition, rural development, Check Dam Project, Upgradation of Govt. School, providing rural housing facility to BPL family, promoting healthcare and building climate resilience through natural resources etc.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL FUND

The Companys ability to deliver value products to clients depends largely on its ability to attract, train, motivate, empower and retain the best professionals. Annual performance appraisal system is already in place to evaluate the operational performance of each employee on the basis of predefined Key Responsibility Area. The Company has 592 permanent employees as on 31st March, 2026.

Industrial relation front continued to be peaceful with no working day loss due to any activity.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREOF

Ratio	2026	2025
Debtors Turnover	3.95	3.86	The ratio has marginally improved primarily due to higher revenue from operations, resulting in better realization from trade receivables.
Inventory Turnover	4.81	4.38	This ratio has slightly increased due to decrease in average inventory level and increase in Raw Material consumption
Interest Coverage Ratio	2.90	4.25	The ratio has declined primarily due to higher finance costs
Current Ratio	2.09	2.35	The ratio has decreased mainly due to an increase in current liabilities, particularly trade payables.
Debt Equity Ratio	0.32	0.36	The ratio has improved due to repayment/reduction of borrowings and increase in shareholders funds on account of profit retained during the year.
Operating Profit Margin (%)	5.01%	5.54%	The operating profit margin has declined due to higher operating costs, resulting in lower operating profit during the year.
Net Profit Margin (%)	1.98%	3.02%	The net profit margin has declined due to lower profit after tax as compared to the previous year.
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH
Return on Net Worth (%)	3.67%	5.70%	The return on net worth has declined primarily due to lower profit after tax during the year, resulting in lower returns on shareholders funds.

CAUTIONARY STATEMENT

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The actual performance may differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors. Such statements represent intentions of the management and the efforts put in to realize certain goals. The success in realizing these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgment before taking any investment decisions.