Honeywell Automation India Ltd Management Discussions

Key Financial Indicators and Performance Highlights for FY 2024-25

	For the year ended		Variation
	31st March 2025	31st March 2024
Revenue from Operations ( in millions) Refer note 21.2, to the financial statements	41,896	40,582	Up 3.2% bps
Operating Income (%)*	18.3%	18.0%	Up 30 bps
Net Income (%)	12.5%	12.4%	Up 10 bps
* Includes Other Income

INDUSTRY OUTLOOK AND OPPORTUNITIES

The Companys operating results are aligned to megatrends of energy resiliency and transition, Urbanization including infrastructure creation and broad themes of Digitization and Asset efficiency. The companys outlook is particularly depended on the economic activity in India with respect to the above-mentioned megatrends and with exports to Honeywell and its global macroeconomic trends such as geopolitical changes, supply chain regional / local rebase lining, global workforce, commodity prices and foreign exchange.

India Economic Overview

Indias GDP growth appears to have moderated in the fiscal year 2024-25, with an estimated growth rate of 6.4%, reflecting subdued private demand and delayed government investment. Modest fiscal stimulus and monetary policy easing are expected to sustain growth at a projected 6.4% in the fiscal year 2025-26, although rising external headwinds such as the instability around changes in geopolitical relationship and impact of potential tariff are anticipated to lower growth to a projected 6.2% in the fiscal year 2026-27. Stabilising food prices brought inflation under control in early 2025 following a brief spike in the fourth quarter of 2024. Ample food supply and moderate global commodity prices should ensure inflation remains contained in 2025, although rupee depreciation poses an upside inflation risk. The Reserve Bank of India reduced policy rates twice to 6% per annum, with the most recent reduction on 7^th April 2025, providing relief amidst the central banks tight monetary policy stance. However, the scope for additional easing will be limited by depreciation pressure on the rupee. The initially proposed reciprocal tariff plan could imply a higher average effective rate increase, although it has not been incorporated into the forecast at this stage. It is assumed that governments response measures will be asymmetrical and targeted, with a willingness to negotiate tariff concessions. (Sources: S&P Global & Press Information Bureau)

We believe the Indian Government will continue to prioritise capital expenditure, particularly in infrastructure projects, energy security, and urban development, while reducing subsidies to accommodate increased spending. However, the near-term focus will shift towards reviving private demand and normalising the pace of public capital expansion in favor of fiscal consolidation.

The government maintains strong financial support for infrastructure over the next five years, while balancing other priorities and fiscal consolidation. An allocation of 150,000 crores allocated for the 50-year interest free loans to states for capital expenditure and incentives for reforms in the India Budget 2025-26. The government has recognised ‘energy security as a core priority and allocated substantial funds for clean energy expansion, including the Nuclear Energy Mission, which aims to achieve 100 GW by 2047 with an outlay of 20,000 crores. Additionally, the Urban Challenge Fund of 100,000 crores aims to transform cities into clean growth hubs. A recovery in capacity utilisation, along with a revival of positive business outlook, is likely to assist the private sector in furthering improved sentiments around investment. Indias firm movement towards digital transformation is also evidenced by an increase in data consumption, coupled with rapidly growing adoption of cloud services and unprecedented technology demand, leading blue-chip corporations to invest in extensive infrastructure to meet expectations. (Sources: S&P Global & Press Information Bureau)

Industry Overview

The Company operates in multiple sectors, i.e. infrastructure, manufacturing and energy that are directly linked to the sustainable, digitalized, economic and industrial growth of the country. The company also aspires to be an able supplier of choice to Honeywell globally maintaining its share of trade in the export of services and goods.

Infrastructure: Infrastructure sector is expected to grow at 8% CAGR till 2028, driven by build-out of transport and logistics capabilities and urban centers. Investments are flowing into the aviation sector, roads, ports, railways, metros, logistics parks, industrial cities, data centers, cold storage and warehouses. Middle class resurgence and migration of people to urban areas are key drivers of infrastructure growth and is expected to continue for the next decade. Construction capex outlook estimates year-on-year growth in 2025 to be 7.2% - further broken down to 7.3% growth estimate for residential segment, 8.4% for office segment and 8.6% for infrastructure segment.

(Source: S&P Global)

Manufacturing: Indias manufacturing & industrial sector remains a pivotal driver of economic growth, contributing significantly to GDP and employment. The sector is strengthened by government initiatives such as Make in India, Atmanirbhar Bharat, and Production-Linked Incentive (PLI) schemes, which aim to enhance domestic production, attract foreign direct investment (FDI), and strengthen export capabilities. The sectors growth is further driven by advancements in Industry 4.0 technologies, including automation, artificial intelligence, and smart manufacturing, which are enhancing productivity and global competitiveness. The Manufacturing Purchasing Managers Index™ (PMI?) has been strong in early 2025, with the seasonally adjusted HSBC India Manufacturing PMI edging up to 57.6 points in March 2025 from 56.3 in February 2025. Yet, with trade uncertainty likely to intensify and global demand to weaken, it is now projected that Indias manufacturing activity to moderate and industrial output growth to slow down to 4.5% in 2025. Despite challenges such as global trade volatility and domestic skill shortages, Indias manufacturing & industrial sector is well-positioned to contribute to the nations ambition of becoming a USD 5 trillion economy by 2027, provided structural reforms and investment momentum are sustained.

(Source: S&P Global)

Energy: Indias energy sector is a critical driver of its economic growth, navigating the dual imperatives of meeting rising demand and advancing sustainability. As the worlds third-largest energy consumer, India balances its reliance on oil & gas with an ambitious push toward renewable energy and sustainable practices. The Ministry of Petroleum and Natural Gas (MoPNG) anticipates crude oil imports to reach 5.8 million b/d by 2030. Natural gas is gaining prominence as a transitional fuel. The International Energy Agency (IEA) forecasts a 60% increase in natural gas consumption by 2030, reaching 297 million standard cubic meters per day (mmscmd) from 188 mmscmd in FY24, with industrial demand driving 40% of growth. The Ministry of New and Renewable Energy targets 500 GW of non-fossil-based capacity by 2030, with projections of 250 GW by 2026. Solar power leads at 85.47 GW, followed by wind (46.66 GW), large hydro (46.93 GW), and biomass (10.24 GW). Indias National Green Hydrogen Mission, launched in 2023, aims to produce 5 MMT of green hydrogen annually by 2030.

Indias energy landscape is poised for dynamic growth, with oil and gas ensuring supply stability and renewables driving sustainability. In 2025 and 2026, priorities include expanding refining capacity, completing gas pipeline networks, and scaling renewable infrastructure.

Sustainability initiatives like green hydrogen, Carbon Capture, Utilization and Storage (CCUS) and Electric Vehicles (EVs) will enhance Indias global leadership in clean energy. Companies in this sector are well-placed to capitalize on growth opportunities while contributing to Indias vision of energy independence and net-zero emissions by 2070.

OPERATIONS

The Company has only one segment as per Ind-AS namely "Automation and Control Systems" across various business operations, as stated below:

Honeywell Process Solutions and Products

The Process Solutions business continues to deliver strong performance across all the key strategic and financial parameters. We saw a strong traction with many of our strategic customers and EPCs, with our business delivering a robust performance. This business provides leading technologies from the plant floor to the boardroom as well as comprehensive lifecycle services to ensure more productive and stable operations. We also continued to optimize and integrate our wide portfolio of products and solutions that help customers to operate safely, reliably, efficiently, sustainably and achieve profitable operations. We have the expertise and breadth of resources to execute projects of every size and complexity in oil & gas, refining, pulp & paper, industrial power generation, chemicals & petrochemicals, biofuels, pharma & life sciences and metals. We continue to expand our reach in various underpenetrated geographies within India through channel partners and OEM engagements. These have helped the business of the Company to deliver reasonable performance in a challenging environment.

The Process Solutions business will continue to stay focused on its core strategies of creating at scale install base which eventually will drive life cycle value and aggressively pursue the new growth levers of digitization, sustainability and tailwinds across various industry segments like metals, life sciences, pharmaceuticals and gas etc. The entire business landscape is changing as the country drives make in India, sustainability goals, builds energy security & independence and encourages use of digital solutions. The Company is excited about the opportunities that these industries bring to the business. Apart from the core markets and solutions, the Company is uniquely positioned to drive growth in software solutions such as cyber security. The Company is also enhancing its reach and coverage to serve the renewable energy market with new and innovative solutions. As customers shift their focus to carbon neutral and environmentally compliant operations, the Company would like to serve these new needs in the industry.

Honeywell Sensing Solutions

As machines are getting smarter every day it needs a lot of sensors to gather information about surroundings and critical physical parameters. Honeywell Sensing Solutions (HSS), business consists of various sensors and switches which make machines safer, more productive and energy efficient. These sensors are used in key industries like Transportation (including EV), Medical & Health Care, and Defense & Aerospace. HSS offers a wide portfolio, which includes pressure switches, airflow sensors, humidity and temperature sensors, oxygen and breath sensors.

HSS also enhanced its defense & military product portfolio to get into new military programs of government customers. HSS business did a good job in marketing products for upcoming new verticals and on-time supply to customers by efficient operations management. This business rationalized its portfolio and gave priority to the right technologies and future customer demand. To drive higher business growth, the Company took number of initiatives like channel footprint expansion, establishing the application engineering support system in India, technology day events to improved reach to focused customers, Digitization in sales process to improve productivity and enabled us to focus on strategic accounts.

Honeywell Building Solutions

Honeywell Building Solutions (HBS) is leading the charge in revolutionizing integrated building operations through advanced automation and control technologies. The Building Solutions business focuses on meeting customer needs by offering comprehensive system integration services that transform facilities into environmentally friendly, efficient, safe and intelligent structures. Notably, this business deploys Honeywells Enterprise Building Integrator™ (EBI), which allows for the seamless integration of various building systems, enhancing operational efficiency and safety.

Key offerings from HBS also include state-of-the-art airfield ground lighting systems that ensure optimal runway and taxiway illumination across numerous airports, enhancing aviation safety and operational efficiency in all weather conditions. Furthermore, HBS provides extensive after-sales services and maintenance plans to support the longevity and performance of building systems, mitigating downtime and ensuring operational excellence.

HBS is well-positioned for growth, especially with the increase in government funding for critical infrastructure sectors such as airports. railways and hospitals. Coupled with a surge in private investments in emerging industries, including data centers, semiconductor factories, Li-ion battery manufacturing and solar panel production, there are ample opportunities for HBS to showcase its expertise. The company uses data analytics for energy optimization, offers software solutions for connectivity and incorporates robust cybersecurity measures, ensuring a secure and efficient future for smart buildings.

Building Management Systems

Building Management Systems (BMS) is a leading provider of building automation products that seamlessly integrate with specific automation needs. BMS portfolio offers a comprehensive suite of controllers, field devices and software solutions, allowing customers to tailor their systems effectively. We excel in facilitating the easy monitoring and management of a buildings mechanical, electrical and electromechanical elements.

Our extensive portfolio includes solutions for Healthy Buildings and Heating, Ventilation, and Air Conditioning (HVAC) applications, catering to a diverse range of sectors across India. These sectors include large, mission-critical facilities in pharmaceuticals, healthcare and government infrastructure (such as airports, stadiums and metro stations), as well as IT parks, residential complexes, industrial spaces and hospitality sectors.

BMS has experienced consistent growth throughout the year and remains committed to its core strategies. This commitment is evident through a focus on commercial excellence, including optimized sales deployment, efficient onboarding processes, channel partner excellence, robust pipeline expansion and the introduction of innovative new products. These initiatives ensure continued growth by leveraging our existing product portfolio. The business is actively targeting high-growth sectors such as healthcare, data centers and government infrastructure. We are fostering this expansion through exciting new initiatives, including Connected Buildings and upcoming product launches, alongside a strategic enhancement of our market reach. These efforts strengthen our position in a rapidly evolving market.

Exports

The exports business focuses on Engineering Services, Contract Manufacturing including Projects across Companys line of businesses for Honeywell affiliates.

Global Engineering business provides engineering services across multiple verticals in Industrial Automation and Building Automation businesses. It provides basic and detailed engineering, application software development, project management services, solution consulting, system integration and testing, site commissioning for Projects, Life Cycle Services, Connected Process, Measurement Controls, Building Solutions and Building Management solutions of Honeywell. This delivers projects efficiently by leveraging technical competency, economy of scale and improving productivity and cost competitiveness for several Honeywell businesses and regional affiliates. For Process Solutions, it serves several core verticals like oil & gas, refinery & petrochemical, power, minerals, mining, & metals, etc. and new areas like life sciences, energy management and storage, etc. For Building Solutions, it provides services for airports, data centers, pharma, commercial and residential buildings, etc. Capability development and engineering skill enhancements to cater to evolving technologies are managed through full-fledged Honeywell Academy which provides training to the engineers.

Under contract manufacturing we deliver high-quality products and project solutions quickly and efficiently to both the Indian and global markets. By embedding built-in and continuous improvement processes within the Honeywell Accelerator framework, it ensures excellence in every aspect of our operations. There is continuous focus on strategic investments in new product development, meaningful automation, capacity enhancement, and localization efforts. These initiatives are designed to enhance cost competitiveness while improving delivery performance. In the realm of project solutions, company excels in delivering turn-key automation and control contracts for industrial applications, including both batch and continuous processes. This business serves as a Center of Excellence for end-to-end project execution for global projects involving Process Solutions systems, safety and environmental controls, industrial security system, software application engineering and advanced software applications. This competitive edge enables Honeywell to thrive in highly competitive markets, particularly within the EMEA and APAC regions, as well as in large-scale global programs. The offerings are tailored to meet the needs of critical industries such as oil & gas, refining, power production, water, chemicals and life sciences. With a strong emphasis on delivering innovative and reliable solutions, we continue to drive growth and create value in the global marketplace.

Sustainability Portfolio

The Company offers a variety of products and solutions that support the countrys ambitious goals in energy transition and sustainability:

a) Battery Energy Storage Systems (BESS): These systems store electrical energy generated from renewable sources, such as solar or wind. They function as operating reserves, managing frequency fluctuations on the electrical grid by charging during off-peak times and discharging when energy demand and electricity costs rise.

b) Innovative Control Technology: We provide advanced control technology for automating compressed biogas systems, compressors, distribution, and other applications.

This includes features for odorization, station automation, smart metering, and software visualization for pressure, quantity, and measurement.

c) Process Automation and Controls: Our portfolio offers comprehensive solutions for hydrogen production and first-generation (1G) and second-generation (2G) ethanol production. We deliver innovative software applications that manage, monitor, and control operations for maximum efficiency and minimal production costs.

d) Enhanced Safety Solutions: Our suite of sensors enhances safety in electric vehicle (EV) batteries and energy storage systems, combining high performance with reliability. Honeywells battery current sensing devices provide highly accurate readings with low temperature drift, ensuring effective electrical management protection and monitoring the state of charge.

e) Automation and Process Safety Solutions: Our solutions are employed in Gigafactories, aiding operators in maintaining safe operations while optimizing energy use and minimizing waste, which contributes to increased battery production.

f) Intelligent Building Optimization: Our solutions assist building owners and operators in achieving two often conflicting objectives: reducing the environmental impact of buildings to meet carbon neutrality goals and optimizing indoor air quality for occupant well-being.

By leveraging these innovative technologies and solutions, we aim to contribute significantly to sustainability efforts and energy transition initiatives.

PEOPLE

Leadership and Talent

The Company believes in the immense potential of its human capital and continues to invest in technical and leadership capabilities as key enablers for business growth. The Company leverages processes that have been the cornerstone of its growth we are pivoting in new areas of business & verticals, and our skilled people plays very important role in this. We have strong processes like Honeywell Performance Development and Management (HPD) Resource Review. These foundational processes enable careful and continual review of leadership talent within the organization, while promoting meritocracy, clarity in goals, providing structured feedback, development planning, Individual Development Plan (IDP) and proactive succession planning for all key positions across the organization.

As part of our evolvedHoneywell Behaviors (ACT WITH), talent development continues to be a strategic priority for us as we work to develop and retain niche talent. Career advancement and development opportunities continue to fuel retention and engagement. Several initiatives are undertaken within the organization like mid-year reviews, learning sessions, Individual development plans and accelerate readiness and succession for future career progression.

Developing leadership capability in employees is a key expectation of every business leader and the Company actively promotes internal movements for career growth.

Development plans help focus on capability building and skills development to enable leaders to take up larger roles. The HPD process ensures that there is a consistent framework to assess our employees on goals and behaviors, creating opportunities for objective feedback and discussions on development plans. We are committed for inclusion culture within our company and drive various initiatives to drive and promote the same like unconscious bias trainings, partnership with leading external forums and focus intervention to promote inclusive culture in all walks of diversity

As on 31^st March 2025, the Companys full time employee strength was 3,140 as compared to 3,096 as on 31^st March 2024.

Employee Health, Safety (HSE) and Volunteering

At Honeywell, we prioritise the health and safety of our employees, recognising that a safe workplace is essential for both the well-being of our workforce and the sustainability of our operations. Our commitment to health and safety is not just a regulatory obligation but also a core value that shapes our company culture. Throughout the past year, we have strived to create a working environment free from hazards, fosters wellness, and enhances productivity.

Our health and safety program aims to achieve the following objectives:

Ensure Compliance: Adhere to all relevant local, national, and international health and safety regulations.

Reduce Incidents: Aim for a sustained decrease in workplace accidents and incidents.

Promote Safety Culture: Foster a workplace culture where safety is everyones responsibility.

Throughout the past year, we have implemented various initiatives and programs to support our employees in maintaining and improving their health. The key highlights include:

Health and Wellness Programs: We offer a range of health and wellness programs, such as nutrition workshops and mental health awareness sessions. These programs are designed to empower employees to make positive lifestyle choices and take control of their health. Our company gym provides access to fitness equipment and exercise classes, ensuring employees have the resources to stay active and maintain their physical well-being. We also conduct ergonomic assessments to ensure employees have a proper workstation and equipment to support their physical well-being and prevent musculoskeletal injuries. We also provide personalised ergonomic training and help implement ergonomic solutions tailored to each employee.

Training and Awareness Programs: Training remains a cornerstone of our health and safety strategy. In the past year, we have conducted various training sessions, reaching employees in critical areas such as emergency response, high-risk operations, and workplace ergonomics.

HSE Excellence: Contract manufacturing factory consistently demonstrates high standards of safety requirements, encompassing staging and customer experience, resulting in five years without a recordable incident. Additionally, at all our project and field services sites, we excel in implementing customer safety practices and adhering to Honeywell Management system requirements, ensuring the safety of our employees and contractors. This commitment has resulted in various recognitions and awards for our dedication to customer safety protocols.

ISO Certification: Honeywell is committed to maintaining exemplary standards in health, safety, and environmental management. Throughout the year, we have made significant strides in these areas, culminating in the achievement of both ISO 45001 and ISO 14001 certifications. These certifications reflect our commitment to creating a safe workplace and minimizing our environmental impact, thereby aligning our operations with internationally recognized standards.

Honeywells commitment to health and safety remains unwavering. We understand that the well-being of our employees is critical to our success, and we will continue to prioritise their safety in all aspects of our operations. By adapting to challenges and embracing continuous improvement, we strive to create a workplace where everyone can work safely and productively.

Employee Volunteering Program: Employees contributed their time through 15 different volunteering events, collectively championing the cause of environmental sustainability, advancing STEM education and women empowerment.

FINANCIALS

Overall revenue from operations was 41,896 million registering a 3.2% growth as compared to the previous year, adjusted revenue growth 10.1%. Refer note 21.2, to the financial statements. The domestic segment registered revenue of 24,271 million for the current year as compared to 24,178 million in the previous year, registering a 0.4% growth. Revenue from exports was 17,546 million as against 16,370 million in the previous year, registering a growth of 7.2%. The New Orders book increased by 14.1% YoY.

Overall profit after tax was 5,236 million. The Company delivered a return of 12.5% on sales for the year (previous year: 12.4%). Cost of goods sold was 60.8% of sales (previous year: 57.0%).

Net cash flow from operations was 4,263 million, as compared to 4,387 million in the previous year representing 81.4% of net profit (previous year: 87.5%). The Company will continue to focus on working capital performance and positive operating cash flows.

Related party transactions for the financial year ending 31^st March 2025 are in accordance with the provisions of Section 188 of the Act and Regulation 23 of the SEBI Listing Regulations, 2015.

RISKS AND CONCERNS

The Company generates a significant portion of its sales and profits from non-affiliated third-party customers as well as from its relationships with Honeywell affiliates, including the ultimate holding company. The Companys capacity to sustain or enhance its revenue and profits from customer categories as above depends on several critical performance factors:

Identifying emerging trends and customer requirements to develop product and service offerings that are superior to those of competitors.

Commitment to meet or exceed the price, quality, and delivery standards set forth by Honeywell affiliates and their end customers in a cost-effective and competitive manner.

Developing and retaining employees and leaders with the necessary expertise.

Honeywell-specific business considerations (independent of its shareholdings in the Company), including changes in Honeywells strategies regarding utilization of alternative opportunities to globally source products and services currently provided by the Company (including from alternative sources that Honeywell affiliates may acquire or develop), the level and/or mix of Honeywells business with the Company.

The overall competitive landscape, which includes pricing pressures on the sale of goods and services to Honeywell, potential reductions in order volume, or shifts in the mix of orders or sales to Honeywell.

In addition, major macro and micro economic factors pose some risks to business despite Companys diversified products & services for varied industries as follows:

Geopolitical risks: In 2025, India may face significant geopolitical risks stemming from the ongoing Russia-Ukraine conflict and rising tensions in the Middle East. These geopolitical tensions are likely to disrupt the global economy, leading to increased trading and logistics costs. The ramifications could be particularly pronounced in India, affecting supply chains across various sectors, including energy and agriculture.

High oil import bill: By 2025, Indias net oil and gas imports are projected to reach approximately $130 billion, reflecting the countrys ongoing heavy reliance on crude oil, which is expected to account for over 80% of its energy consumption. Although there may be fluctuations in global oil prices, any potential downturns are likely to be offset by geopolitical tensions, particularly in the Middle East and the repercussions of the Russia-Ukraine conflict. These dynamics could lead to increased volatility in oil prices. Consequently, the existing reliance on imported oil is likely to exert upward pressure on inflation and challenge Indias economic stability moving forward. (Source: MoPNG)

Global economy: In 2025, the global economy will grapple with lingering effects from tariff policies as nations reassess trade relationships, especially amid ongoing tensions between the U.S. and China. Countries may seek to adapt by pursuing new trade agreements and regional partnershipstomitigatetheimpact.Asbusinessesnavigate these challenges, the focus on diversification of sourcing and investment in technology to enhance efficiency will become critical for maintaining competitiveness in an increasingly protectionist environment. Your company will be closely monitoring the impact of global tariff changes on supply chains, import prices, and currency volatility, among other factors.

Forex rate fluctuations: Substantial fluctuations are expected for the Indian rupee against key currencies, driven by geopolitical events, Indias economic recovery and the monetary policies of central banks in 2025. The rupees value may rise or fall in response to interest rate adjustments made by the Reserve Bank of India (RBI) aimed at managing inflation and promoting growth. Moreover, variations in global oil prices and trade balances will significantly impact the rupees exchange rate. The company normally takes advantage of natural hedge position given a good mix of Exports business before taking any decision on hedging.

Global supply chain disruptions and energy price shocks: India may likely face challenges from global supply chain disruptions and high energy costs, which could hinder industrial output in 2025. These disruptions may delay production and reduce material availability, while elevated energy prices could compress corporate profit margins and fuel consumer price inflation. As demand weakens and investments slow, India may experience slower-than-expected GDP growth, highlighting the need for improved supply chain resilience and energy diversification.

Competition: The Company faces a highly competitive environment in India, with escalating pricing pressures on goods and services in both domestic and export markets. Increased competition from local startups and global players may impact revenue and profit margins.

INTERNAL CONTROLS

TheCompanyhasinstitutedrobustinternalcontrolprocedures that are appropriate to the nature of its business and the scale of its operations. The Companys internal control processes have been effective, providing reasonable assurance regarding the reliability of financial information, compliance with prevailing laws and regulations, and adherence to standard operating procedures. These processes ensure the documentation and evaluation of entity-level controls through existing policies and procedures, primarily to identify significant gaps and define key actions for improvement. The Company has consistently endeavored to align all its processes and controls with the best global practices. We believe that our system of internal controls offers reasonable assurance concerning the reliability of financial reporting and the effectiveness and efficiency of operations. We remain committed to continuously evaluating and enhancing our internal control framework to adapt to evolving risks and business requirements.

In addition to external audits, the Companys financial and operational controls are regularly reviewed by the internal audit team in accordance with the annual plan approved by the Audit Committee. The Committee routinely reviews the significant audit findings, corrective action plans (CAP), the adequacy of internal controls, compliance with accounting standards, and any changes in accounting policies and practices.

The Company also maintains a robust Integrity and Compliance (I&C) programme, wherein all employees undergo communications and training to become acquainted with leadership expectations regarding behaviors and compliance, legal requirements, avoiding conflicts of interest, maintaining a healthy and safe workplace, safeguarding Company property and information, appropriate use of information technology resources, and understanding how to report any suspected unethical or illegal conduct without fear of retaliation. The Companys Code of Conduct outlines the fundamental standards to be adhered to by employees in all business dealings and day-to-day operations. The Company also has a formal process to receive and address incidents related to business conduct reported by employees and other stakeholders.

SUMMARY

The Companys mix of exports revenue increased as compared to the previous period. Overall revenue improved 3.2%. Net income was 12.5% of sales as compared to 12.4% in the previous year. Increased competitive environment in both domestic and exports segments, supply chain and project execution disruptions and inflation continue to be a challenge. The risks and concerns mentioned above are being addressed through concerted efforts on operational excellence, driving productivity and cost rationalization. The Company is continuously driving new productivity initiatives to remain committed to the journey of profitable growth.

Details of various key ratios have been presented in the "Performance Highlights" section. Please note that the interest coverage ratio and debt equity ratio is not applicable to the Company as there is no debt.