JTEKT India Ltd Management Discussions

ECONOMIC SCENARIO

Global economic scenario

The global outlook is becoming increasingly challenging. Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist. Higher trade costs, especially in countries raising tariffs, will also push up inflation, although their impact will be offset partially by weaker commodity prices.

In this challenging and uncertain environment, global growth is predicted to decline from 3.3% in 2024 to a modest 2.9% in 2025 and in 2026. Weakened economic prospects will be felt around the world, with almost no exception. Lower growth and less trade will hit incomes and slow job growth. Although inflation has recently declined in most countries, service price inflation remains stubbornly sticky and goods price inflation has increased slightly in many countries due to rising food prices. Protectionism is adding to these inflationary pressures, and inflation expectations have risen substantially in several countries. And even though inflation if forecasted to come down to central bank targets by 2026 in most countries, it will now take longer to reach those targets. In the countries more affected by tariffs, inflation might even rise first before coming down.

Fiscal risks are also increasing. Public debt levels are already elevated in many advanced and emerging market economies and spending pressures are rising in areas such as defence, investing in the green transition and costs related to the ageing of our societies. Debt service costs are rising too, further increasing pressures on public finances. High debt levels and tighter financial conditions pose particular risks for developing countries, many of which have large debt refinancing needs in the near future. (Source: OECD Economic Outlook, Volume 2025 Issue 1 June 2025)

Indian economic scenario

While a significant uptick in economic activity in the fourth quarter of financial year 2024-25 pushed GDP growth for the full year to 6.5%, this is the slowest since the pandemic year 2020-21 and a drop from the 9.2% high recorded in financial year 2023-24.

The agriculture sector continued its strong performance and grew 4.6% in the full year 2024-25, up from 2.7% in 2023-24. The manufacturing sector grew 4.5% in the full financial year 2024-25, down from 12.3% in 2023-24.

The construction sector growth stood at 9.4% in 2024-25, down from 10.4% in 2023-24 and the tertiary sector_grew at 7.2%, lower than the 9% in the previous year. (Source: Press Release dated 30th May 2025 by Ministry of Statistics, Govt of India)

Real GDP is projected to grow by 6.3% in fiscal year 2025-26 and 6.4% in 2026-27. Private consumption will gradually strengthen, driven by rising real incomes that are helped by moderate inflation, recent tax cuts and a strengthening of the labour market. Investment will be supported by declining interest rates and substantial public capital spending, but higher US tariffs will weigh on exports. Infiation will remain contained at around 4% as economic activity grows around trend. A less benign monsoon season or higher global commodity prices could drive up food prices and inflation.

The Union Budget for the fiscal year 2025–26 foresees a moderate fiscal consolidation, aiming to reduce the headline budget deficit from 4.8% of GDP in fiscal year 2024-25 to 4.4% in 2025-26. With inflation firmly within the target range, monetary policy is gradually expected to become more accommodative. Better targeting of energy and fertiliser subsidies, and an overhaul of tax expenditures, could enhance spending efficiency and free resources for other policy priorities. Improving logistics efficiency, upgrading digital infrastructure, and enhancing policy predictability, particularly in tax administration, could bolster private investment. (Source: OECD Economic Outlook, Interim Report June 2025)

INDUSTRY

Global Auto Scenario

The Global light vehicle sales were 84 million units in 2024 and are projected to reach 85.1 million units in 2025, witnessing a YoY growth of 1.3% from 2024 to 2025. Further, within the regional market, the Asia-Pacific region accounted for almost half of the market share. While Internal Combustion Engine (ICE) Vehicles held the major share, the Hybrid Electric Vehicles (HEV) segment is expected to grow at a high rate of 20-25% over 2024-2025.

Dedicated to achieving zero emission targets, the OEMs have planned to invest over USD 500 Billion by 2030 for EV production facilities. In 2025, at least 10 new manufacturing plants of various OEMs are expected to commence. Further, the price of Lithium-ion batteries is expected to fall below USD 100/KWh in 2025. Moreover, OEMs have attempted to diversify the EV battery supply chain to de-risk from any possible supply chain disruption of raw material. (Source: https://www.marketsandmarkets.com/ Market-Reports/global-automotive-industry-outlook-77960341.html)

The global auto industry outlook is improving due to recent US tari_ agreements with China and the UK, alongside the exemption of USMCA-compliant parts from tariffs. Although the situation remains _uid, the adjustments reflect a generally better position for the industry, particularly in North America and China. (Source: https://www.spglobal.com/automotive-insights/en/blogs/2025-light-vehicle-production-forecast)

Indian Scenario

TheIndianautomobileindustryshowed strong growth in FY 2024–25, with domestic sales increasing by 7.3% and exports rising by 19.2%. This growth was supported by strong customer demand, government policies, rising infrastructure investments, and a focus on sustainable mobility. Passenger Vehicles (PVs), Two-Wheelers (2Ws), and Three-Wheelers (3Ws) all saw positive growth. PV sales reached a record 4.3 million units (2% growth), 2W sales grew by 9.1% to 19.6 million units, and 3W sales rose by 6.7% to 7.4 lakh units. However, Commercial Vehicles (CVs) saw a small decline of 1.2%, though recent months showed some recovery. The electric vehicle (EV) segment also performed well, with EV registrations growing by 16.9%. This includes a 21.2% rise in e-Two Wheelers and an 18.2% increase in electric Passenger Vehicles. Government schemes such as EMPS, PM E-Drive, and PM e-Sewa helped give a big boost to EV adoption in the country. The growing consumer preference for cleaner transportation options, along with new model launches and wider availability of EV charging infrastructure, contributed to the rise. Additionally, rising fuel prices have also encouraged many consumers to shift towards electric vehicles, further supporting the industrys green transition.

Production

The industry produced a total of 3,10,34,174 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycles in April 2024 to March 2025, as against 2,84,34,742 units in April 2023 to March 2024.

Domestic Sales

Total Passenger Vehicle Sales increased from 42,18,746 to 43,01,848 units. The overall Commercial Vehicles sales increased from 9,68,770 to 9,56,671 units in FY 2024-25 compared to the previous year.

Sales of Three Wheelers increased from 6,94,801 to 7,41,420 units, in FY-2024-25, compared to the previous year.

Two Wheelers sales increased from 1,79,74,365 to 1,96,07,332 units, in FY-2024-25, compared to the previous year. (Source: https://www.siam.in/ statistics)

Exports

In April 2024 to March 2025, Passenger Vehicle Exports increased from 6,72,105 to 7,70,364 units and Commercial Vehicle Exports increased from 65,816 to 80,986,_ Three-Wheeler Exports increased from 2,99,977 to 3,06,914 and Two Wheelers Exports increased from 34,58,416 to 41,98,403 units over the same period last year. (Source: https://www.siam.in/statistics. aspx?mpgid=8&pgidtrail=15)

Domestic Market Share for 2024-25

Segment wise demand change in Passenger Vehicles

OUTLOOK

Looking ahead, the Indian auto industry is expected to continue its growth in FY 2025–26, supported by stable economic conditions, increased spending on infrastructure, and helpful government policies. A normal monsoon, as predicted, will likely support rural demand, especially for Two-Wheelers and smaller cars. The recent changes in personal income tax, along with two interest rate cuts by the RBI, are expected to make vehicle loans cheaper and increase customer spending. Exports are also likely to stay strong, especially in markets like Africa and neighboring countries, where Indian-made vehicles are becoming more popular. The industry will continue to watch global economic trends and supply chain developments, which could affect future growth. With growing interest in EVs, ongoing government support, and improving customer confidence, the Indian auto sector is well-positioned for steady growth in the coming year. Also, rising urbanization and increasing middle-class income levels are expected to further support auto sales. Stronger dealer networks, more financing options, and growing digital sales platforms will likely improve customer reach and convenience. Overall, the industry is optimistic and preparing for a more dynamic and competitive future.

OPERATIONAL PERFORMANCEAND FINANCIAL REVIEW

Financial Review INR/Mn.

	2024-25	2023-24
Net Income from Operation	23,807	22,281
Other Operating Income	186	174
Total Revenue	23,993	22,455
Raw Material	17,404	15,965
Staff Cost	2,471	2,260
Other Expenditure	2,270	2,079
EBIDTA	1,848	2,151
Other Income	97	115
Depreciation and Amortisation	826	814
EBIT	1,119	1,452
Finance Charges	103	61
PBT before Exceptional Items	1,016	1,391
Exceptional Items (gain (-) / loss (+))	(7)	(74)
Share of profit of associates	-	-
PBT	1,023	1,465
Tax	271	396
PAT	752	1,069
Other Comprehensive Income	(18 )	(10)
Total Comprehensive Income	734	1,059
Profit attributable to Owner	734	1,059
Capital Expenditure	3,742	1,707
EPS	2.96	4.20
D/E Ratio	0.18	0.14

Ratio Analysis

For the Financial Year, the profit margins were under pressure due to several internal and external factors. EBIDTA margins are down from 9.5% achieved last year FY 2023-24 to 7.6% in the current FY 2024-25. Export Sales to our US Customers declined reducing share of exports sale in our overall sales from 4% in FY 2023-24 to 2.4% in FY 2024-25 and impacting margins by 0.56%. The Company incurred additional warranty cost during the year impacting margins by 0.3%. Other factors impacting margins were increase in inward freight cost due to geo-political red sea issue, increase in testing charges due to increased activity of new product development, plant rationalization activity post-merger of Jtekt Fuji Kiko Automotive India Limited with the Company, actuarial impact of start of employee leave encashment scheme etc.

RECOGNITION

During the fiscal, the Company received Gold Award from Toyota Kirloskar at the Regional Quality Circle Competition. The Company also received Silver award from Maruti Suzuki at Quality Circle Competition 2024.

As a result of decline in margins and profits, there was a decline in Net Profit ratio from 4.76% last year to 3.14% in current year. Return on Equity ratio declined from 13.74% last year to 8.85% in current year. Further Return on Capital Employed ratio declined from 16.28% last year to 10.88% in current year.

For the FY 2024-25, the Company incurred total capex of INR 2878 million primarily towards expanding production capacity. Due to increase in Capex, the borrowings from the banking system increased from INR 1096 million as of end of March 2024 to a level of INR 1532 million as of end of March 2025. This resulted in increase in Debt Equity ratio from 0.14 times last year to 0.18 times in current year. Further the Debt Service Coverage ratio reduced from 7.95 times last year to 4.32 times in current year. For meeting the capital expenditure, the Company utilized surplus cash and as a result Current ratio declined from 1.65 times to 1.11 times.

There has been no significant change in other financial ratios, including inventory turnover, trade receivable turnover and trade payable turnover ratios.

TECHNICAL CAPABILITY / RESEARCH & DEVELOPMENT

The Company is committed to its mission of continuously contributing to Earth and Society through the development of high-quality steering and driveline products, with a strong emphasis on safety, quality, and environmental compliance. We strive to deliver reliable products and services while fostering a safe and inclusive environment for employees and communities.

Customer satisfaction remains a top priority. To support this, the Company continues enhancing internal capabilities through long-term training at headquarters, process standardization, localized development, and simultaneous engineering—paving the way for greater self-reliance.

Advancing digitalization, we are emphasizing virtual simulations to achieve "first-time right" designs and reduce reliance on physical testing. Expansion of protocell facilities and enhanced validation capabilities are also underway to strengthen local development.

With a proactive mindset, the India Technical Center is playing a key role in developing cost-e_ective, market-specific solutions and competitive products tailored to Indian conditions. We remain focused on self-reliance, cost competitiveness, and exceeding customer expectations.

MANUFACTURINGRATIONALIZATIONS

As the Indian automotive industry enters a new phase of accelerated growth, the Company is strategically transforming its manufacturing landscape to stay ahead of the curve. At the heart of this transformation lies a robust Manufacturing Rationalization Roadmap—a long-term initiative aimed at building agile, efficient, and scalable operations aligned with our customers evolving needs.

Operating across seven plant locations, the Company caters to a diverse customer base with a wide product portfolio. To maintain speed, flexibility, and cost competitiveness, the company has prioritized rationalization as a key enabler for delivering operational excellence.

In FY 2024–25, we successfully completed 10 manufacturing rationalization projects, involving strategic consolidation, product line transfers, and layout optimization. An additional 7 projects are underway, with 6 slated for completion in FY 2025–26. These initiatives are being executed in close coordination with customers to ensure minimal disruption and seamless transitions.

Recognizing the need to support future growth in the western region aligned to its main customer, the Company has announced the establishment of a new state-of-the-art manufacturing facility in Gujarat. This plant will enhance customer proximity and responsiveness by localizing production and shifting select product lines from northern India, thereby improving lead times and reducing logistics costs.

Through these collective efforts, the Compoany has achieved:

Faster capacity ramp-up to match market demand

Higher operational efficiency and resource utilization

Optimized manufacturing footprint across India

This journey is not just about operational efficiency—it is about preparing for the future. By integrating rationalization with our growth strategy, we are creating a stronger, more sustainable foundation for the Company to emerge as a best-in-class automotive components manufacturer.

We remain committed to excellence, innovation, and value creation—for our customers, our people, and society.

HUMAN RESOURCES

At JTEKT India Limited, we believe that when we care for our people, they drive our success. Our Human Resources strategy is built on this foundation—creating a work environment where individuals feel valued, supported, and empowered to grow.

Our People, Our Priority

With a diverse workforce of over 3,400 employees across locations, we recognize our people as our greatest asset. We are committed to nurturing a healthy, inclusive, and future-ready workforce, supporting employees throughout their journey with JTEKT.

Well-being at the Core

We place holistic well-being at the heart of our employee experience:

Health and wellness programs, including comprehensive medical coverage and preventive care initiatives.

Work-life balance support through flexible and inclusive policies.

Employee engagement activities that build a sense of belonging, community, and camaraderie.

Performance with Purpose

We foster a high-performance culture through:

Transparent goal setting aligned with individual strengths and business priorities.

Performance-based appraisals that reward meaningful contributions.

Continuous feedback to support growth and development.

Investing in Growth and Learning

We believe in growing careers from within. Our focus on upskilling, internal mobility, and leadership development helps employees realize their potential:

90+ training sessions conducted in FY 2025.

92% workforce coverage across technical, functional, and behavioral areas.

Hands-on DOJO programs for shop floor readiness.

A dynamic E-Learning platform with 45+ modules and 7,600+ sessions for self-paced learning.

Welcoming Fresh Talent

To keep our organization agile and future-ready, we engaged and groomed young professionals through structured campus recruitment. In FY 2025, we on-boarded:

15 Graduate Engineer Trainees (GETs).

182 Diploma Engineer Trainees (DETs).

Career Growth from Within

We provide strong career paths, especially for Trainees and off-roll associates

159 internal roles were filled through elevation from Trainee and offroll category in FY 2025.

Growth driven by performance, potential, and structured succession planning.

PURCHASING

At JTEKT, the primary goal of Purchasing is to create value for the organization, not just to minimize the costs. Quality, Delivery, Services and long term relationship are also considered in addition to price. We consider suppliers as business partners. We believe that building long term relationships is a pre-requisite for better quality, innovation and reliability.

The Company is committed to sustainable and ethical sourcing practices. This includes considering the environment and social impact of purchasing decisions and striving for responsible sourcing.

In current competitive and emerging Indian Automotive market, new projects are being launched frequently by OEMs with advanced technologies and features. To respond to such business scenario, an agile and responsive supply chain is required. We are continuously working on improvement activities in response to changing market conditions. Here are some key activities which are carried out to stay competitive in market and to meet customers expectations:

1. Front Loading activities to improve the cost and capability enhancement. At initial parts development stage, the Company is involved and closely work with its supply partners to develop the parts. It helps to improve the cost and design optimization.

2. Parts Development lead-time reduction activity – Parts development stages are clearly defined with its development time to have timely development of parts. To reduce the development lead time, SPTT (Supplier Parts Tracking Team) system is introduced and implemented. Under SPTT system, development steps are reviewed to reduce the lead-time. During SPTT-1, Agreement is made with supply partners by deciding Quality, Delivery and Cost targets and fix the team to review the development progress at each stage.

3. The Company believes in long term and fair partnership with supply partners and for building robust partnership and growing together, the management team of the Company is meeting with its supply partners frequently to know each other, share the new projects and businesses in pipeline and understand their challenges and issues to resolve the same mutually. JTEKT India Region has been organizing Partners Meet on regular basis to share future growth plan, new businesses and initiatives taken to improve the supply chain, cost, delivery and quality.

SAFETY, SECURITY & SUSTAINABILITY

At JTEKT India, Safety, Security, and Sustainability are integral to our corporate philosophy. These pillars not only influence our daily operations but also define our long-term strategic vision, aligned with global best practices and stakeholder expectations.

Employee Safety: Our Top Priority

The health and safety of our employees remain paramount, especially as we expand operations at our current facilities. We continue to foster a culture of safety through:

Ongoing Training and Awareness:

Regular training sessions, safety drills, and workshops ensure employees are equipped to handle operational risks and emergencies.

Advanced Safety Infrastructure:

Deployment of modern PPE, interlocks, and safety monitoring systems at all sites.

Ergonomic Enhancements:

Workstations are continually being redesigned to promote employee wellness and reduce ergonomic risks, particularly in high-intensity operations.

Process Safety: Ensuring Continuity and Compliance

In preparation for our ISO 45001:2018 re-certification, we have strengthened our process safety framework to ensure safe operations during expansion and scale-up:

HIRA & RED Machine Implementation: Regular Hazard Identification and Risk Assessment (HIRA) and identifying RED machines to mitigate operational risks.

Standardized Safety Systems: Uniform implementation of safety SOPs and emergency preparedness plans across all locations.

Preventive Maintenance: Emphasis on TPM and reliability-centered maintenance to reduce equipment failure and downtime.

Physical Security: Safeguarding People and Assets

With an increasing footprint, we have reinforced security controls at all locations:

Access Control and Surveillance: Use of RFID-enabled entry systems, 24x7 CCTV surveillance, and security patrols.

Incident Management System: Timely reporting and resolution of any safety/environment incidents or near-miss observations, enabling proactive response.

Sustainability: A Core Business Driver

Environmental Stewardship

We are focused on improving CO_ emissions and water consumption per unit of sales.

Our environmental initiatives include:

Energy Efficiency Projects: Adoption of energy-e_cient motors, compressors, and LED lighting; energy audits and real-time monitoring of utilities.

Green Energy Transition: In process procurement of renewable energy through open access and group captive solar projects.

Water Resource Management: Deployment of rainwater harvesting, ETP/STP upgradation, and water recycling technologies to lower fresh water dependency.

Waste Minimization: Focus on reducing landfill waste, increasing recycling rates, and engaging vendors in sustainable disposal practices.

ISO 14001:2015 Compliance: All facilities adhere to environment management system requirements, ensuring continuous improvement and regulatory alignment.

The Company remains committed to embedding safety, security, and sustainability across its value chain to create a resilient, responsible, and future-ready organization.

INFORMATION TECHNOLOGY

The major focus during the financial year was to drive digital transformation across manufacturing and support functions, enhance cyber security readiness, and improve operational efficiency through automation and in-house software development. The following key initiatives were undertaken during the year:

Online KY (Kiken Yochi) Exercise System implemented to strengthen risk identification and promote proactive safety practices. KY digital platform enables employees to systematically recognize potential hazards in their work environment, fostering a culture of safety awareness and preventing accidents before they occur.

Supplier Capacity Mapping in-house software was developed and implemented for part-wise and supplier-wise capacity mapping, utilizing long-term forecast data derived from the sales plan. This system enables better visibility of supplier capabilities, supports proactive capacity planning, and helps prevent supply shortages by aligning procurement with future demand.

Automation of supplier performance score cards deployed on the Supplier Portal to improve transparency and engagement. It provides real-time visibility into key metrics like delivery, quality, and responsiveness, helping suppliers track their performance and encouraging continuous improvement.

Customer sample part tracking system implemented to improve process visibility and turnaround time. This system enables real-time monitoring of sample part movement across departments, ensuring timely updates, reducing manual follow-ups, and enhancing customer satisfaction through improved responsiveness.

E-Kanban system deployed for direct material management at our Bawal Plant, streamlining logistics operations and reducing inventory levels. The system ensures real-time visibility of material movement, improves production line efficiency, and minimizes manual intervention in inventory replenishment.

4M Change Management System was developed and implemented to govern changes in Man, Machine, Material, and Method. This digital platform improves process stability and product quality by ensuring traceability, approval workflows, and compliance across departments.

Product traceability system implemented at GGN, BWL, DHR1, and CHN locations to meet customer traceability requirements and regulatory norms, enabling part-level tracking across the production lifecycle and that will help in reducing the risk of recalls, and enhancing quality assurance through end-to-end material flow visibility.

Regular Cyber Security Drills (phishing simulation exercises) were conducted across all departments to assess the cyber awareness levels of employees.

Based on the results, targeted training and awareness sessions were provided to identify users to strengthen the human firewall against social engineering attacks and reduce the risk of security breaches caused by user negligence.

Cyber Security assessments of critical suppliers to enhance supply chain resilience and mitigate risks of cyber-related disruptions. These evaluations were focused on identifying weakness in suppliers IT infrastructure and ensuring alignment with JTEKTs cyber security standards, thereby reducing the likelihood of operational downtime or financial losses due to cyber incidents.

RISKS AND CONCERNS

The Company understands that effective risk management is critical in meeting its objectives and achieving sustainable growth. Risk management policies have been designed in a manner that the Company can respond swiftly and implement the necessary mitigation actions. In compliance with the prudential norms, we have constituted a Risk Management Committee and developed a risk management framework. The objective was to ensure sustainable business growth and promote a proactive approach in reporting, evaluating and mitigating risks associated with the business.

The Committee reviews the framework periodically in view of the dynamic business environment. This risk management policy has helped enhance process robustness, ensuring that strategic & operational risks are addressed effectively.

The Companys strategic & operational risks are broadly classified into the following four major categories:

Economic risks: Refer to risks resulting from the economic and political scenario in the country.

Operational risks: Refer to the risks that are inherent to the business and include manufacturing and distribution operations.

Financial risks: Refer to the risks that result from fluctuations in currency market and interest rate.

Human resource risks: Refer to the risks of losing out on skilled workforce due to competition.

The Committee recognizes that risk management is an integral part of good management practices. Thus, it has made risk management an essential element in achieving business goals and deriving benefits from market opportunities. While the Company cannot completely rule out the possibility of a negative impact owing to risks, we continue to take cautious steps to mitigate risks.

INTERNAL CONTROL AND ADEQUACY

Audit Committee monitors the adequacy and effectiveness of the Companys internal control framework. Internal control systems are supported through management reviews and verification by internal and statutory auditors.

Internal Audit Plans are aligned to the objective of Companys business and the same are approved by Audit Committee to ensure the adequacy & effectiveness of the Companys Internal Control framework.

Internal Audit Reports are reviewed by Audit Committee on Quarterly basis to ensure the robust internal control system commensurate with the size & operations of the Company.

CORPORATE SOCIAL RESPONSIBILITY

The Company considers corporate social responsibility as a fundamental aspect of its business philosophy. The Companys dedication to CSR reflects its focus on creating a meaningful impact in the communities, where it serves. The Companys CSR initiatives, approved by its CSR Committee, focus on key areas such as healthcare, education, environmental sustainability and rural development. Companys efforts are aimed not only at fulfilling regulatory requirements but also at fostering inclusive growth and sustainable development. Through these targeted efforts, the Company is committed to driving sustainable change and making a meaningful, lasting contribution to the well-being and progress of the communities.

During FY24-25, the Company has further extended these activities and has significantly increased its financial commitment to these projects. The Company focusses on directly implementing these projects in local areas after a detailed assessment of the requirements of the community with the objective to derive maximum benefit from these activities and to ensure that these CSR projects achieve the norm of sustainability._ With the CSR programme, the Company continues to make positive impact on the lives of the people and encourages employees of the Company to participate in the CSR initiatives of the Company in huge numbers.

Few of the CSR projects implemented by the Company during Financial Year 2024-25 are as under:

Skill Development

During the financial year 2024–25, one of the Companys key CSR initiatives was the establishment of a Skill Development Centre aimed at enhancing the practical capabilities of diploma engineering students at a total cost of INR 4.89 million. This initiative was undertaken in partnership with

Government Polytechnic College, Lisana (Rewari)—a reputed institution known for its quality technical education. Recognizing the growing need for industry-aligned technical skills in the automotive sector, the Company collaborated with the college to design and implement a customized training curriculum.

The Skill Development Centre shall provide hands-on training, equipping students with practical knowledge and exposuretoindustrybestpractices.This initiative shall significantly contribute towards enhanced technical skills, improved employability, increased creativity, and greater competence among participating students.

Health and well-being

During the year, the Company extended its support to Vivekanand Arogya Kendra by contributing essential medical equipment, including a Motorized ICU Bed with Mattress, a BPL 100 MA Mobile DR Model, and a BPL Vivid View Monitor. These contributions were made to assist in the establishment of a dedicated Cardiac Surgery Facility, which also includes an Emergency Centre for critical heart care. The facility once completed is expected to provide comprehensive cardiac treatment, including emergency interventions and minor surgeries.

Additionally, the Company supported infrastructure upgrades at the Maternity Ward, Community Health Centre in Bawal, by providing AC stabilizer installation, shaded pathway construction, roof access stairs, and window glass _lm application to improve comfort and functionality. Further Company installed two water coolers along with R.O Facility at two Anganwadi Centers in Malpura Village ensuring safe and clean drinking water for young children and staff thereby supporting better health and hygiene standards.

Education

During FY 2024-25, Company collaborated with the Central Himalayan Rural Action Group (CHIRAG) Foundation to support the expansion of a school in Uttarakhand by adding new classrooms and providing furniture. Additionally, under its CSR initiative for FY 2024–25, the Company donated 12 computers with furniture to the Electrical Engineering Department of Assam Engineering Institute, Guwahati.

To further support student development, the Company collaborated with Monk.e.Wise an institution focused on student wellness, to enhance English speaking and communication skills among students at S.D. Modern Senior Secondary School. The programme witnessed enthusiastic participation, with students engaging in various activities and showing a strong interest throughout the course. The initiative received highly positive feedback upon completion. The company also provided funding for the salary of a computer teacher at Government Senior Secondary School in Banipur Village.

The Company also extended infrastructural and educational support to various schools, including S.D. Modern Senior Secondary School in Gurugram, Captain Chandan Lal Special School for the Blind in Gurugram; Panchayat Union Middle School, Pondhur in Chennai; and Government Primary School, Malpura.

Community Development

The Company undertakes community development initiatives in villages near its facilities to enhance the quality of life for local residents. During the year, it supported the installation of an open gym in a community park it had previously developed, promoting health and fitness among the youth and elderly. The facility benefits many from Below Poverty Line (BPL) households and aligns with the Companys focus on environmental sustainability through the creation of eco-friendly public spaces.

Water Conservation

As part of its commitment to sustainable water management and environmental conservation, the Company undertook the development of a rainwater harvesting pond in Jaurashi village under its CSR initiatives at a total cost of INR 6.60 million. This project aims to enhance groundwater levels by constructing a pond, creating a pathway, and installing pipelines from the nearby school to the pond to collect and store rainwater directly. The pond not only serves as a crucial water conservation measure but also benefits the local community by ensuring access to a more reliable water source, especially during dry seasons.

Zero Hunger

To promote Zero hunger under the CSR imitative, the Company collaborates with Mother Teresa Charitable Trust, Tamil Nadu for the project entitled "Mid- day Meals for old age people residing at Mother Teresa Joy Home, Thanjavur, Tamil Nadu". This trust operates an old age home called Mother Teresa Joy Home, which provides meals to old age people.

ADOPTION OF GREEN TECHNOLOGY

The Company made further efforts towards harnessing solar energy for generating electricity for our manufacturing units. Currently, our seven manufacturing locations have solar power generating facilities, and the total solar power generating capacity stands at 4391 KWp. The Company has plans to further increase the capacity in the coming years. In addition to this, all other energy-saving efforts such as the adoption of energy-e_cient fixtures and equipment, zero water discharge through water recycling, etc. continue to receive the focus of the management. This transition to cleaner and more efficient energy will significantly reduce our carbon footprint and improve air quality. Our dedication to sustainable practices and green technologies reflects our long-term vision for a more sustainable future.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in the automobile sector, significant changes in the political and economic environment in India, exchange rate fluctuations, tax laws, litigation, labour relations, and interest cost.