ITL Industries Ltd Management Discussions

The objective of this discussion is to share the Managements view on the various developments in the business environment, challenges and opportunities, as well as to provide an analysis of the Companys performance. This discussion also summarizes the Companys internal control measures and significant development in Human Resources. This discussion should be read in conjunction with the Letter to Shareholders, Directors Report, Financial Statements and Notes to Financial Statements included in this Annual Report.

i. Global Economy

The global economy in 2024 proved unexpectedly steady, growing at 3.3%, only a shade below the 3.5% posted a year earlier, despite persistent noise and disruption. According to the International Monetary Fund, this resilience held firm against an unsettled backdrop of inflationary pressures, geopolitical fault lines, and fragmenting trade ties. The United States, driven by buoyant consumer and government spending, led the developed world with GDP growth of 2.8%. Yet this strength stood in contrast to more subdued performances across Asia and Europe.

Chinas recovery, once a cornerstone of global momentum, remained hesitant. Sluggish consumer demand and ongoing stress in the property sector weighed heavily.

Geopolitical tensions, now more durable than episodic, compounded market uncertainty. A more fragmented world economy, shaped by competing spheres of influence and rising trade friction, added further complexity. Yet not all signals were dim. Inflation eased dropping from 6.6% in 2023 to 5.7% in 2024, reflecting tighter monetary policy and a marked softening of supply chain disruptions. Inflation is projected to fall further to 4.3% in 2025 and 3.6% in 2026, but service sector inflation remains sticky, and trade disruptions could yet spark fresh cost pressures.

Merchandise trade, long the engine of global growth, faces an uncertain future. New tariffs and retaliatory measures risk pulling global trade volumes into contractionary territory. Encouragingly, recent bilateral trade deals suggest that diplomacy is not entirely off the table.

ii. India

Standing Strong in a Fractured World India emerged as an outlier of stability and momentum in a world adrift. With projected GDP growth of 6.4-6.5%, it retained its crown as the fastest growing major economy. The final quarter surged to 7.4%, powered by construction, manufacturing, and sustained government capital outlay. Policy credibility, macroeconomic resilience, and diversified growth engines underpinned this performance. Consumption rebounded and exports rose. Agriculture benefited from favourable monsoons and strong foodgrain output. Services, still Indias growth mainstay, grew by 7.2%, accounting for over half of gross value added. Indias export story was particularly telling. Merchandise and services exports reached an all-time high of US$ 824.9 billion, up 6.01% year-on-year, a feat few economies could match amid global headwinds. Inflation, a lingering concern globally, trended down decisively. The headline rate eased to 4.6%, from 5.4% a year earlier, helped by effective supply-side interventions, softening input costs, and timely monetary policy adjustments. The Reserve Bank of India moved from tightening to a neutral stance in October 2024, then back to accommodative in April 2025. The financial system stood firm. Balance sheets strengthened and asset quality improved. Loan growth remained in double digits. Yields softened across government and corporate debt, reinforcing investor confidence. India enters the new fiscal year with tailwinds intact. GDP growth is projected at 6.5%, with risks well balanced. Consumption is expected to pick up further. Public investment will likely remain a key growth lever, while fiscal consolidation continues. Manufacturing momentum is expected to build, supported by the Production Linked Incentive (PLI) scheme and the new National Manufacturing Mission. Infrastructure will remain a priority, buoyed by initiatives under Gati Shakti, higher allocations for affordable housing, and a renewed push under the Asset Monetisation Plan. The external sector outlook, though exposed to global turbulence, remains cautiously optimistic. Ongoing trade negotiations and regional partnerships offer a buffer against a volatile trade landscape. While global financial market volatility, geopolitical tensions, and trade fragmentation pose downside risks, Indias sound macroeconomic fundamentals, robust financial sector, and commitment to sustainable growth position the economy to remain the fastest-growing major economy in 2025-26

iii. Industry Structure and Developments:

The domestic industry structure remained largely unchanged. ITL continues to hold a pioneer position in Metal Sawing Machines by developing import-substitute products. During the year, the Company introduced 5th Generation NC-AC Servo Feed Bandsaw Machines, well accepted for their PLC-based menu-driven operations requiring minimal operator involvement.

For the first time globally, ITL developed NC Carbide Circular Sawing Machines capable of performing multiple operations?cutting, facing, chamfering, centre drilling, and drilling?on a single machine. Sales have begun in India, with exports initiated to the USA. The Company plans to expand this line with models of different capacities in the near future.

iv. Opportunities and Threats:

The Company has significant opportunities to grow through expanding market demand, technological advancements, and strategic partnerships, which can enhance its competitive position. However, it also faces threats from regulatory changes, economic uncertainties, and rapid technological shifts that require constant innovation and adaptability to mitigate risks and sustain growth.

v. Segment-Wise or Product-Wise Performance:

a) Manufacturing Division :-

Manufacturing Division has achieved Sales / Income of Rs. 13330.28 lacs in the year 2024-25 as against Rs 11600.71 lacs in the year 2023-24, showing a growth of 14.94%. from Bandsaw Machines, designing and manufacturing of equipments.

b) Trading DivisionTrading Division of Hydraulics & other engineering products has achieved Sales / Income of Rs. 6238.34 lacs in the year 2024-25 as against Rs. 5354.07 lacs in the year 2023-24, showing a growth of 16.51% . During the current financial year, the above division is also receiving good orders from the customers.

vi. Outlook:

In current year, the Company is confident of growing much faster in comparison to economy & capital goods industry looking to the present level of orders and enquiries for Manufacturing Division i.e. Bandsaw and Circular Saw Manufacturing equipment are showing good sign of recovery.

ITLs outlook on over-seas markets and domestic market are positive on account of its strength on cutting edge technology, cost and effective after sales services.

vii. Risks and Concerns:

The Company is falling under the capital goods industry, the growth of which is determined by overall growth of the Industry. An overall concern is pertaining to the pressure on the profitability. However, ITL has taken all measures to reduce the Direct and Indirect cost. During the current year, the manufacturing division has shown excellent growth in orders and inquiry due the overall growth of Industry. The advancement oftechnology and strategic positioning of products is expected to give better results.

viii. Internal Control Systems and Their Adequacy:

The Company has well established internal control systems and to further strengthen the systems, it has appointed an internal Chartered Accountant to carry out Internal Audit and to review the internal control measures.

ix. Discussion on Financial Performance with Respect to Operational Performance:

The company Sales/Income were Rs. 18621.81 Lakhs in the financial year 2024-25 compared with Rs. 16184.12 Lakhs in the previous year (2023-24), showing a growth of 15.06%. The Profit before tax for the financial year 2024-25 is Rs. 1281.54 against Rs. 1187.49 Lakhs in the year 2023-24. The profit after tax of the Company increased from Rs. 895.17 Lakhs to Rs. 911.18 Lakhs showing a growth of 1.79%.

x. Material Developments in Human Resources / Industrial Relations Front:

ITL Industries continues to consolidate the belief that employees are our key resource. We continue to maintain a relatively young age factor amongst our employees and we are happy to report that they have taken full advantage of the opportunities that have been created for them. It continues to encourage innovative thinking as well as invest in internal training programs and initiatives for employees. We are proud to say that we are well on our way to establishing a work culture and environment in which every employee feels stimulated and motivated to contribute and perform.

We are proud to report that we have continue to maintain cordial industrial relations, and our employees actively participate in any initiative aimed at improving productivity, co-operation and understanding. This is indeed a proud achievement and we intend to continue to maintain this enviable track record.

xi. Changes (Change of 25% Or More) in significant key financial ratios and return on net worth:

The details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with the detailed explanations thereof, are as follows:

S.N.	Particulars	March 31,2025	March 31,2024	% Change in Ratio	Reasons for Significant Change
1	Current Ratio	2.03 %	2.27 %	(10.62) %	N.A.
2	Debt -Equity Ratio	0.24 %	0.19 %	26.99 %	The variance is on account of increase in borrowings during the year.
3	Debt Service Coverage Ratio	1.63 %	4.26 %	(61.87) %	The variance is on account of increase in borrowings during the year.
4	Return on Equity Ratio	12.20 %	13.55 %	(9.98) %	N.A.
5	Inventory turnover ratio	2.90 %	2.83 %	2.61 %	N.A.
6	Trade Receivables turnover ratio	6.43 %	6.73 %	(4.51) %	N.A.
7	Trade payables turnover ratio	7.20 %	6.54 %	10.21 %	N.A.
8	Net capital turnover ratio	355.87 %	331.88 %	7.23 %	N.A.
9	Net profit ratio	4.89 %	5.53 %	(11.54) %	N.A.
10	Return on Capital employed	16.18 %	17.20 %	(5.92) %	N.A.
11	Return on investment	2.62 %	3.76 %	(30.41) %	The variance is on account of increase in investments and decrease in income from investments during the year.

xii. Disclosure of Accounting Treatment:

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS). During the year, the Company identified a prior period error relating to non-recognition of dividend income from preference shares of its subsidiary for the year ended 31 March 2023. In line with Ind AS 8, the comparative figures have been restated retrospectively. This correction does not affect the current years results, except for recognizing the previously unrecorded dividend income.

xiii. Disclaimer Statement:

Report on Management Discussion and Analysis deals with the Companys objectives, estimates, expectations and forecasting which may be forward looking within the meaning of applicable Security Laws and/ or Regulations. The aforesaid statements are based on certain premises and expectations of future events as such the actual results may however di er materially from those expressed or implied. The Government Regulation, Tax structure, demand-supply conditions, cost of raw material & their availability, finished goods prices and economic development within India and the countries with which the Company has business relationship will have an important bearing on the statements in the above Report. Global and Indian economic facts and figures are based on publicly available sources such as IMF, World Bank, RBI, and other recognized industry reports.

The foregoing discussions and analysis only set out the management perception of the Companys environments, in the coming months, which, by their very nature are uncertain and may undergo substantial changes in view of the events taking place later. Thus, the Company should and need not be held responsible, if, which is not unlikely, the future turns to be something quite different even materially, subject to this management disclaimer, this discussion and analysis should be perused.

		For and On behalf of the Board
	Rajendra Jain	Mahendra Jain
PLACE: Indore	Managing Director	Joint Managing Director
DATE: 28.08.2025	DIN - 00256515	DIN:00256047