Hindustan Tin Works Ltd Management Discussions

India continues to be a bright spot in the global economy, demonstrating resilience amidst persistent geopolitical tensions, tightening global financial conditions, and rising trade uncertainties. According to the International Monetary Fund (IMF), India is projected to remain the fastest-growing major economy with GDP growth expected at 6.4% for both 2025 and 2026 which is revised upward from its earlier projections of 6.2% in 2025 and 6.3% in 2026.

This growth continues to be supported by strong domestic demand, a resilient services sector, and relatively limited dependence on exports, which buffers the economy from external shocks. After a period of high inflation, slowing wage growth, and elevated interest rates, some of these pressures are showing signs of easing. The Union Budget introduced measures aimed at reviving consumption and is expected to support recovery. The Reserve Bank of Indias shift to an accommodative monetary policy stance, signaled by an interest rate cut in April 2025 and recently in June 2025, aims to further support growth amid global headwinds. Indias consistent performance amid global turbulence reflects the strength of its macroeconomic fundamentals and reinforces its role as a key driver of global growth.

Overall, India became the 4th largest global economy in 2025 and the worlds fastest-growing major economy. This year ending and starting of next year India will become 3rd largest economy.

The global economy continues to show resilience despite facing several strong headwinds viz., the continuing Israel war, Russia /Ukraine war, high costs and falling household purchasing power, rising geopolitical and global trade uncertainties amid US stopping its USAID program and its everchanging Tariff rates and forced monetary tightening. This presents a challenging landscape for economies worldwide incoming days.

Your Company achieved revenue from operations (net of GST) of Rs. 40629 lakhs as against the previous years revenue from operations (net of GST) of Rs. 41935 lakhs i.e. a decrease of Rs. 1306 lakhs (3.11 %). The export sale of the Company has been decreased from Rs. 10100 lakhs in previous year to Rs. 9677 lakhs in current year i.e. decrease of Rs. 423 lakhs ( 4.19%).

Your Company has achieved total comprehensive income of Rs. 1164 lakhs as against the previous year of Rs. 1693 lakhs.

Your Company has been working with regulatory bodies to develop packaging standards and increase demand of prime tinplate in our country through BIS (Bureau of Indian Standards). 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. Established customer profile and wide customer base.
3. Reputation for quality, well established brand.
4. Edge in raw material procurement.
5. Ability to expand and diversify.
6. Expansion in export market.
7. Professionally & technically qualified Human Resource.
8. Priority of the Government to promote Food Processing Industry.
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. US & China Trade 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. 40629 lakhs as against the previous years revenue from operations (net of GST) of Rs. 41935 lakhs i.e. a decrease of Rs. 1306 lakhs (3.11 %). The export sale of the Company has been decreased from Rs. 10100 lakhs in previous year to Rs. 9677 lakhs in current year i.e. decrease of Rs. 423 lakhs (4.19%).

Your Company has achieved total comprehensive income of Rs. 1164 lakhs as against the previous year of Rs. 1693 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 in Gov. Primary School, providing rural housing facility to BPL family and training to promote rural sports 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 543 permanent employees as on 31st March, 2025.

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	2025	2024
Debtors Turnover	3.86	3.96	Ratio has slightly reduced due to decrease in sales as compared to previous year
Inventory Turnover	4.38	4.50	This ratio has slightly decreased due to increase in average inventory level and decrease in Raw Material consumption
Interest Coverage Ratio	4.25	4.65	Ratio has decreased due to lower Profit After Tax as compared to previous year
Current Ratio	2.35	2.58	Ratio has decreased as compared to previous year mainly due to decrease in inventory and increase in trade creditors
Debt Equity Ratio	0.36	0.40	Ratio has improved as compared to previous year due to decrease in Loans and increase in total equity
Operating Profit Margin (%)	5.54	7.15	Ratio has decreased due to lower Profit Before Tax as compared to previous year
Net Profit Margin (%)	3.02%	4.06%	Ratio has decreased due to lower Profit After Tax as compared to previous year

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH

Return on Net Worth (%)	5.70%	8.32%	The return on net worth has reduced due to lower profit margin on sales as compared to previous year

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.