Jyoti CNC Automation Ltd Management Discussions

Global Economy

The global economy in 2025 continues to display measured resilience, although the overall risk environment remains elevated. According to the IMFs July 2025 World Economic Outlook update, global growth is now projected at 3.0% in 2025 and 3.1% in 2026. These represent upward revisions of 0.2 percentage points for 2025 and 0.1 percentage points for 2026 compared with the April 2025 forecast. The improvement reflects stronger-than-anticipated front-loading of activity ahead of higher tariffs, lower- than-initially-announced average effective US tariff rates in April 2025, more accommodative financial conditions, including a weaker US dollar, and fiscal expansion in several major economies.

Despite the upgrade, growth expectations remain below the 3.3% achieved in 2024 and the prepandemic average of 3.7%. Global trade registered robust expansion in the first quarter of 2025, fuelled by anticipatory imports and consumption in the US. However, preliminary data indicate that this momentum started to ease in the second quarter, with a gradual unwinding expected to persist into 2026.

Global headline inflation is projected to ease to 4.2% in 2025 and 3.6% in 2026, broadly in line with 2025 Aprils forecasts. While lower energy prices and moderating demand are supporting disinflation, dynamics vary across economies. In the United States, inflation is likely to remain above target through 2026, partly reflecting tariff-related cost pass-through and the impact of a weaker dollar. In contrast, inflation in the euro area and other large economies is expected to remain relatively subdued.

(Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/07/29/world-economic-outlook-update-iuly-2025)

Risks to the outlook remain skewed towards the downside. A renewed increase in effective tariff rates could dampen global activity, while continued policy uncertainty may restrain investment and trade. Escalating geopolitical tensions could disrupt supply chains and push up commodity prices. On the upside, advancement towards stable trade agreements could reduce tariff-related uncertainty and enable a more supportive investment climate.

Indian Economy

India remains firmly positioned as the fastest- growing major economy globally, maintaining steady momentum in the face of an uncertain external environment. In 2024-25, real GDP growth was estimated at 6.5%. The RBI projects the same rate for 2025-26. This sustained performance is supported by strong domestic demand, easing inflation, robust capital markets and rising exports. It reflects an economy marked by resilience and balance. Key indicators such as record foreign exchange reserves, a manageable current account deficit and rising foreign investment show growing global confidence in Indias long-term prospects.

The governments manufacturing-led growth strategy remains central to this performance. Flagship initiatives such as Aatmanirbhar Bharat, Make in India, the production-linked incentive (PLI) schemes and the long-term Viksit Bharat 2047 vision aim to strengthen industrial capacity, reduce import dependence and position India as a global manufacturing hub. According to the Ministry of Statistics and Programme Implementation, manufacturing Gross Value Added (GVA) at constant prices rose from 15.6 Lacs Crore in 2013-14 to 27.5 Lacs Crore in 2023-24. While the sectors share of GDP has remained steady at around 17.3%, the near doubling of output reflects a substantially broadened industrial base.

Exports remain a key driver of growth. Indias total exports reached a record USD 824.9 Billion in 2024-25. This was up 6.01% from USD 778.1 Billion in 2023-24 and sharply higher than USD 466.22 Billion in 2013-14. This performance reflects advances in both services and high-value manufacturing, underpinned by stronger industrial capacity, enhanced competitiveness in technology and services, and the emergence of strategic sectors such as defence production and electronics.

With resilient domestic fundamentals, a strong reform agenda and sustained export momentum, India enters the second half of 2025 well positioned to consolidate its role as a key driver of global growth.

(Source: https://www.pib.gov.in/PressNoteDetails. aspx?NoteId=154840&ModuleId=3)

Global Machine Tool Industry

In 2025, the global manufacturing industry stands at a pivotal juncture, driven by rapid digital transformation, advanced automation, and evolving market demands. Despite ongoing challenges such as supply chain disruptions, geopolitical uncertainty, and fluctuating raw material costs, the sector continues to demonstrate resilience. These dynamics are prompting manufacturers to reassess operational models, accelerate the adoption of advanced technologies, increase investment in workforce development, and place greater emphasis on sustainability.

Manufacturers across major economies like the US, Germany, India, Vietnam, and Brazil are increasingly focussed on agility and efficiency. At the heart of this evolution lies technology. Smart factories powered by digital twins, AI, and real-time analytics are becoming commonplace.

usd 97.1 Billion

Global Machine Tool Industry Market Value in 2024

usd 196 Billion

Global Machine Tool Industry Market Value by 2034 (P)

usd 98.9 Billion

Incremental Growth (2024-2034)

P - Projected

(Source: https://www.qminsiqhts.com/industry-analysis/ machine-tool-market)

The global machine tool industry is undergoing significant transformation, largely due to Industry 4.0 technologies. Modern machine tools are now intelligent systems featuring IoT connectivity, real-time sensor feedback, predictive maintenance, and AI-driven error detection. These capabilities help manufacturers boost productivity and minimise downtime.

Demand for ultra-high-precision machining is rising, particularly from the automotive (especially TVs), aerospace, electronics, and medical sectors. These industries require complex geometries and multi-axis capabilities. Material innovations, including advanced tooling materials like carbide, ceramics, diamond coatings, and CVD are improving tool longevity and enabling machining of next-generation sustainable materials like carbon nanomaterials and lightweight alloys.

Regional Landscape and Market Size

Asia-Pacific remains the dominant region, accounting for around half of global demand, led by China, India, and Japan. China continues as the worlds largest consumer and producer, while Indias machine tool market stands out driven by strong industrial automation uptake.

46.2%

Asia-Pacifics Share in the Global Machine Tools Industry

(Source: https://www.gminsights.com/industry-analysis/ machine-tool-market)

The automotive sector continues to be a primary driver of CNC machine tool demand, propelled by the transition to electric vehicles, the adoption of lightweight structural components, and the integration of robotics into production lines. CNC platforms, valued for their precision, scalability, and efficiency, are increasingly deployed in high-volume manufacturing environments where consistent quality and throughput are critical.

Similarly, the aerospace industry requires high- precision machine tools to produce critical components such as turbine blades, fuselage sections, landing gear, and engine assemblies. The use of advanced materials like titanium, composites, and superalloys further amplifies demand. Growth in commercial air travel, defence spending, and space exploration is prompting investments in next-gen technologies such as multi-axis CNC systems and additive manufacturing.

usd 66 Billion

Cutting Machines Market Size 2024

(Source: https://www.gminsights.com/industry-analysis/ machine-tool-market)

Outlook

The convergence of precision, automation, and material innovation is accelerating the adoption of advanced manufacturing solutions. Trends like highspeed machining, hybrid manufacturing, and smart Industry 4.0-enabled machine tools are expected to drive the global machine tool industry forward over the next decade.

(Source: https://www.gminsights.com/industry-analysis/ machine-tool-market)

Indian Machine Tool Industry

India is strategically focussed on transforming itself into a manufacturing-led economy, placing industrial growth at the centre of national development plans. This ambition targets a significant rise in manufacturings share of GDP, currently around 13-14%, as part of Vision 2047 which aims to position the country among developed nations.

(Source: https://www.cii.in/PressreleasesDetail.aspx?enc=+6h SfwVOd2t0Uj5k1nBcOyQ7W60kLflavJeCxPYZyUE=)

Indias emergence on the global manufacturing stage is closely tied to evolving dynamics in international trade and supply chains. Geopolitical tensions and the China+1 strategy have prompted multinational corporations to diversify production footprints. The government has advanced structural changes by easing legacy regulations, increasing FDI thresholds in key sectors, simplifying tax regimes, and encouraging innovation. National programmes such as Make in India and Aatmanirbhar Bharat have outlined ambitious goals for export expansion, employment generation, and the growth of higher-value manufacturing.

Within this broader manufacturing push, rising automation, evolving production standards and growing demand for precision engineering are accelerating the adoption of advanced machine tools. Industries such as automotive, aerospace, electronics and heavy engineering are at the forefront of this shift, driven by the need for higher accuracy, reduced downtime and improved operational efficiency.

The Indian machine tool industry is gaining steady momentum, with the market valued at USD 1.7 Billion in 2024 and projected to reach USD 3.4 Billion by 2033, growing at a CAGR of 7.8% during 2025-2033 (Source: IMARC Group). Growth is being fuelled by rapid industrialisation, rising demand from sectors such as automotive, defence and aerospace, and increased adoption of automation, robotics and CNC technologies.

This demand is further supported by favourable supply- side conditions, including improved infrastructure and government-led manufacturing policies such as the National Capital Goods Policy, which aim to boost indigenous manufacturing capabilities and reduce import dependency. The integration of smart manufacturing, Industry 4.0 and data- driven systems is transforming shop floors through predictive maintenance, real-time monitoring and improved ergonomics. Government budget allocations are enabling this transformation, while domestic manufacturers are investing in R&D and adopting hybrid tools to enhance precision, efficiency and customisation. Additionally, infrastructure development, foreign investment and the rise of small and medium enterprises (SMEs) are widening the base of demand across tool types and applications.

As manufacturing in India scales to higher-value and more complex products, the role of the machine tool industry will only deepen, making it a critical enabler of the countrys industrial competitiveness.

Company Overview

Established in 1991, Jyoti CNC Automation Limited (Jyoti CNC, We, or The Company) is engaged in the business of manufacturing metal-cutting Computer Numerical Control (CNC) machines. Over the years, we have built a diverse product portfolio that ranges from entry-level CNC metal-cutting machines to high- end 5-axis and multi-axis CNC machines. Today, we offer more than 200 product variants across 44 series, covering CNC Turning and Turn Mill Centres, CNC Vertical Machining Centres (VMCs), CNC Horizontal Machining Centres (HMCs), CNC 5-Axis Machining Centres, and CNC Multi-Tasking Machines. Our product range is organised into three segments: entry- level machines, mid-range machines, and high-end machines. We have also introduced advanced offerings aligned with Industry 4.0 and AI integration, engineered to perform automated, complex, and repetitive operations with collision-prevention technology. We aim to transform into a mechatronics company. We launched seven new models during 2024-25.

Our customer base spans critical sectors such as aerospace, defence, automotive, electronics, die and mould, healthcare, pumps and valves, power, agriculture, and increasingly, renewable energy manufacturing, where our machines are being deployed in the production of solar equipment components.

We are a vertically integrated company, with our own foundry, machine shop, sheet metal shop, paint shop, sub-assembly, and assembly facilities. This integration minimises reliance on external suppliers, enhances operational efficiency, and reinforces our ability to deliver precision and quality. Our manufacturing footprint includes two plants in Rajkot, India, and one in Strasbourg, France. The Rajkot facilities also house a service centre and our Leonardo Da Vinci R&D Centre, which plays a pivotal role in product innovation and technology development. As of March 31, 2025, we have an installed capacity to produce 6,000 machines per annum in India and 121 machines per annum in France, with plans to increase our production capacity by an additional 10,000 machines per annum over the next two years, focussed primarily on entry- level products, including EMS machines. In France, the expansion of the Huron facility is scheduled for completion in 2025 and will significantly enhance assembly capabilities.

Our in-house capabilities span assembly, foundry, machining, sheet metal fabrication, painting, and sub-assembly operations, and are certified to ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards. We have established a robust sales and service network comprising 29 branches and 2 distributors or dealers in India, along with 11 distributors or dealers overseas. Our machines are installed in more than 1,35,000 locations worldwide, serving a diverse and loyal customer base. After-sales service remains a central pillar of our business model, ensuring long-term customer relationships. Our wholly-owned subsidiary, Huron Graffenstaden SAS in France, is a global pioneer in 5-axis machining technology. Its acquisition has significantly strengthened our technological capabilities and expanded our capacity to serve high- end engineering applications, particularly in aerospace and defence, across international markets. Through continuous innovation, entry into new sectors such as solar manufacturing, expansion of mechatronics-based capabilities, and a fully integrated operational model, we are well-positioned to address the growing and diverse demands of precision engineering industries worldwide.

Opportunities

1. Strategic Shift in Global Manufacturing (China+1 Strategy)

Major economies are accelerating efforts to diversify supply chains and limit reliance on China. In this realignment, India has emerged as a preferred manufacturing hub, supported by its strategic location, a large domestic market, a skilled workforce, and competitive labour costs.

2. Strong Indian Economic Growth and Manufacturing Push

Indias GDP is projected to grow by 6.5% 202526, with manufacturings contribution to Gross Value Added expected to rise. Government initiatives focussing on infrastructure development and improved logistics are aimed at reducing operational costs and enhancing export competitiveness.

3. Policy Support and Government Campaigns

National campaigns like Make in India, Aatmanirbhar Bharat, and the PLI schemes are shaping a supportive ecosystem for domestic manufacturing. These policies aim to encourage the adoption of advanced technologies and modernisation of manufacturing processes across industries.

4. Aerospace and Defence Sector Growth

The aerospace and defence sectors are poised for significant growth in both domestic and global markets. The government has allocated substantial funds for domestic procurement while also setting targets for increased defence exports. These developments are driving a strong requirement for precision-engineered, high-performance CNC machines.

5. Expanding EMS Industry

The Electronics Manufacturing Services (EMS) industry is evolving rapidly, and India is emerging as a potential hub. This mid-term growth story offers significant opportunities for CNC machines to support large-scale, high-quality production.

6. Semi-Conductor Industry

With a persistent demand-supply gap in semiconductors and heavy reliance on imports, India is prioritising the establishment of domestic manufacturing facilities. This presents a long-term growth opportunity for CNC machine suppliers to provide critical equipment for semiconductor fabrication.

7. Demographic Dividend and Expanding Domestic Market

Indias rapidly growing middle class and expanding working-age population, projected to peak by 2030, are driving higher domestic consumption. This sustained demand is expected to support robust growth in manufactured goods, thereby increasing the requirement for advanced production equipment, including CNC machines.

8. Import Substitution Potential

A considerable portion, around 60%, of Indias CNC machinery demand is still met through imports. This reliance presents a material opportunity for domestic manufacturers to reduce dependence on foreign suppliers by scaling local production capacity. Such a transition would enhance cost competitiveness, shorten lead times, and enable a greater capture of domestic market share.

Threats

1. Skilled Labor Shortage

The CNC industry relies heavily on skilled operators, programmers, and engineers. A shortage or high turnover of such talent can hinder productivity and quality.

2. Import Tariff Changes

Any introduction or increase of import tariffs in India or in key export markets could disrupt supply chains, impact pricing competitiveness, and affect the overall cost structure for CNC machinery.

3. Capacity vs. Demand Gap

Rising demand for CNC machines may outpace existing manufacturing capacity. Without timely expansion, this gap could result in order backlogs, longer delivery times, and loss of business to competitors.

4. Global Economic Uncertainty

Economic slowdowns, recessionary trends, or geopolitical tensions in major export markets can lead to reduced capital investments in manufacturing, directly affecting CNC machinery demand.

Risk	Risk Description	Risk Management
Economic Conditions	A slowdown in Indias economic growth or adverse global economic conditions could negatively impact our business, financial condition, and results of operations.	We continue to diversify our revenue streams across geographies and industries, reducing dependency on any single market. We closely monitor macroeconomic indicators and adjust our production, inventory, and sales strategies to align with changing market conditions.
Governmental Actions and Policy Changes	Changes in government, government policies, introduction of new regulations, or onerous compliance requirements in India or overseas may affect our operations and financial performance.	We maintain ongoing engagement with industry bodies and regulatory authorities to anticipate policy shifts. Our compliance team ensures that we meet all statutory requirements in a timely manner, while also adapting our business processes to comply with new regulations.
Dependence on Application Industries	A significant share of our revenue comes from select application industries such as automotive, general engineering, and defence. Any downturn in these sectors could affect our business, cash flows, and financial health.	We actively diversify our customer base and sector exposure. Our R&D team continuously develops solutions for emerging industries such as renewable energy, aerospace, and electronics, thereby broadening our end-market presence.
Reliance on Machinery	Our production is heavily dependent on machinery, and any significant breakdown could impact our output, revenue, and growth prospects.	We follow a strict preventive and predictive maintenance schedule to minimise downtime. Critical spare parts are maintained in stock, and we have service contracts in place to ensure quick response in case of equipment failure.
Capacity Limitation	Demand growth may exceed our current manufacturing capacity.	We have initiated a capacity expansion plan to increase output by 10,000 machines over 2026-27. This will reduce lead times and help us meet rising demand more efficiently.
Quality Standards and Innovation Failure	Failure to meet quality standards can lead to cancellations, warranty claims, and loss of customers. Inability to innovate may reduce competitiveness in a fast-evolving industry.	We maintain stringent quality controls across all manufacturing stages. Our R&D and design teams work closely with customers to develop technologically advanced solutions. In 2024-25, we introduced seven new products, further expanding our portfolio and addressing evolving market needs. We have also implemented Industry 4.0 features and AI integration to enhance operational efficiency and ensure we remain ahead of technological trends.
Skilled Manpower Gap	A shortage of skilled personnel may We operate an in-house Centre of Excellence (COE) limit our ability to scale production. for employee training. In 2024-25 alone, we trained over 1,000 individuals in advanced manufacturing techniques, occupational health, and safety protocols.

Internal Control Management

Jyoti CNCs internal control system is designed to adapt to evolving operational needs and provides reasonable assurance on the accuracy of financial and operational reporting, legal compliance, asset protection, authorised transactions, and adherence to internal policies. The controls are appropriate to our Companys size and scale of operations.

Compliance with applicable statutes is monitored by functional compliance heads and overseen by a central Compliance Team, with regular reporting to management. We are in the process of digitalising our compliance function to enhance efficiency. The Audit Committee periodically reviews internal and statutory audit reports and verifies financial statements to ensure regulatory compliance.

Human Resources Management

As of March 31, 2025, we have a total workforce of 3,507 individuals, including skilled, semi-skilled, and unskilled team members. We are expanding our workforce in line with our growth while continuously upgrading their skills, knowledge, and competencies through comprehensive training and development programmes. Along with enhancing functional skills, we have trained our employees in occupational health, personal safety, safe working practices, and sustainability across all business processes. We have also undertaken preventive and call-based maintenance of our machinery to ensure their safe and efficient operation at all times.

To address the industry-wide challenge of skilled labour availability, we have launched a large-scale training programme at our campus, where more than 1,000 individuals are being trained to become skilled professionals. This initiative not only supports our own captive requirements but also contributes to the overall socio-economic development of the region. By building a pipeline of industry-ready talent, we are ensuring long-term workforce sustainability. Additionally, we have tied up with select colleges and technical institutes to strengthen our talent pool through structured training, internships, and recruitment programmes.

Forward-looking Statements

This Management Discussion and Analysis Report contains forward-looking statements that reflect our current expectations and projections in line with applicable securities laws. Actual results may differ materially from those expressed or implied due to various factors, including market demand and supply conditions, regulatory changes, fluctuations in exchange rates, changes in tax policies, weather patterns, natural disasters, and broader economic developments at the national and global levels.

Financial Performance

Standalone Financial:

For 2024-25, the Company recorded profit after tax of 310.05 Crore (previous year 139.99 Crore). The same is on account of the increase in revenue from operations. The jump in profit after tax is contributed from revenue from sales of customised machines sold during the year.

Analysis of major items of financial statements is given below:

Income:

Our total income comprises (i) revenue from operations and (ii) other income

a] Revenue from Operation:

Revenue from operations is recognised over time, when the outcome of the contract can be estimated reliably by reference to the percentage of completion of the contract on the reporting date under input method. Revenue from operations comprises (i) sale of products which further comprises of sale of machinery and sale of machinery parts, (ii) sale of services such as income from annual maintenance contract, machine service, job work and installation and commissioning; and (ii) other operating income which primarily includes income from export and other incentive schemes and others.

During the year, the revenue from operation of the Company increased by 35.75% primarily due to higher revenue from customised and high-end models.

b] Other Income:

Other income comprises (i) interest income; (ii) gain on sale of property, plant and equipment (iii) foreign exchange fluctuation gain (net of loss); (iv) gain on sale of investment; and (v) Others.

During the year, other income increased primarily due to favourable forex fluctuation and higher interest income.

Cost of Materials Consumed

Cost of materials consumed consists of raw materials used for manufacturing components and includes the electronics and other components that we procure.

During the year, the cost of material consumed was at 50.86% against 56.09% in the previous year. This is mainly because of the higher revenue from sales of customised and high-end machines.

(Increase)/decrease in inventories of finished goods and work-in-progress:

(Increase)/decrease in inventories of finished goods and work-in-progress denotes increase/decrease in inventories of finished goods and work in progress between opening and closing dates of a reporting period as adjusted for changes on account of foreign currency translation.

Jyoti CNCs inventories at the year end consist of raw materials, work in progress, finished goods and stores and spares. At the end fiscal year under review, the inventories were 821.82 Crore compared to 792.26 Crore at the end of previous fiscal year.

Employee Cost:

Employee benefit expenses primarily include salaries and wages, contribution to provident fund and other funds, and other employee benefit expenses.

During the year under review, the employee cost increased primarily due to salary revisions, new hiring and its consequential impact on retirement provisions.

Depreciation and Amortisation:

Depreciation and amortisation expenses primarily include depreciation expenses on our tangible properties other than lands (under long term lease), amortisation expenses on lands (under long term lease) our right to use assets and intangibles assets.

During the year under review, depreciation and amortisation expenses expense was 32.02 Crore which is 1.96% of total income for the period.

Other Expenses:

Other expenses comprises: (i) consumption of stores and spares; (ii) job work charges; (iii) power and fuel expenses; (iv) factory expenses; (v) transportation expense; (vi) clearing, forwarding and agency expenses; (vii) repairs & maintenance expense; (viii) advertisement, marketing expenses and exhibition expenses; (ix) AMC expenses; (x) Legal & Professional Charges; (xi) Office Expenses;

(xii) postage, stationary and telephone expenses;

(xiii) commission expense; (xiv) travelling, conveyance and vehicle expenses; (xv) foreign exchange fluctuation loss (net of gain); (xvi) expected credit loss; (xvii) warranty expense; (xviii) corporate social responsibility expenses; (xix) donation; (xx) audit fees; and (xxi) miscellaneous expenses.

During the year under review, the increase/(Decrease) in expenses is due to operation of the Company.

( in Crore)

Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024
Manufacturing and Other Direct Expenses
Consumption of Stores and Spares	12.11	8.84
Job Work Charges	27.17	20.74
Power and Fuel Expenses	24.70	19.80
Transportation Expenses - Inward	9.64	9.83
Clearing, Forwarding and Agency Expenses - Import	1.89	2.31
Repairs & Maintenance - Machinery*	5.00	4.49
	80.51	66.01
Administrative and Selling Expenses
Advertisement, Marketing Expenses, and Exhibition Expense	13.46	10.71
AMC Expenses	3.04	2.52
Clearing and Forwarding Expenses - Exports	0.68	1.00
Donation	0.62	0.15
Transportation Expense - Outward	12.10	10.94
Legal and Professional Charges	10.83	7.08
Office Expenses	1.04	1.29
Postage, Stationery, and Telephone Expenses	1.42	1.14
Remuneration to Auditor
- Audit Fees	0.55	0.26
- Certification Fees	0.10	0.08
Commission Expense	3.60	2.61
Travelling, Conveyance, and Vehicle Expenses*	14.58	11.74
Corporate Social Responsibility Expenses#	1.78	0.39
Expected Credit Loss	3.55	1.26
Warranty Expense	0.86	(0.27)
Miscellaneous Expense	19.64	8.40
	87.85	59.29
Total	168.36	125.30

Finance Cost:

Finance costs include interest expenses on borrowings and others and bank and other financial charges. During the year under review, the finance cost was 17.36 Crore indicates decrease by 73.61%. During the year, we repaid all the remaining financial obligations and opted for low-cost external finance (both fund- based and non-fund-based facilities) towards our working capital needs.

Indebtedness:

As of March 31, 2025, our non-current borrowing was 0.22 Crore, and our current borrowing was 198.23 Crore. During the year under review, the reduction in non-current borrowing was due to repayment. While the increase in current borrowing is reflected, fresh borrowing to meet our working capital needs.

Earnings before Interest, Tax and Depreciation & Amortisation (EBITDA):

EBITDA was 458.27 Crore in 2024-25 compared to EBITDA of 272.05 Crore in 2023-24. While EBITDA margin was improved and stand at 28.38% in 202425 mainly due to optimal use of resources and low finance cost.

Income Tax Expense:

During the year under review, our total income tax was 106.21 Crore compared to 46.93 Crore in previous 2023-24. The increase in income tax expense was primarily due to an increase in profit before tax from the operation of our Company.

Profit for the Year:

We earned profit (after tax) of 310.05 Crore in 2024-25 compared to 139.99 Crore in 2023-24.

Particulars	( in Crore)
Cash Flow from operating activities	(16.55)
Net Cash flow from/(used in) investing activities	(290.69)
Net Cash flow from/(used in) financing activities	81.04
Net (decrease)/increase in cash and cash equivalents	(226.30)
Cash and cash equivalent at year end	5.21

[a] Cash Flow from Operating Activities:

Cash flow from operating activities was (16.55) Crore during the financial year ended on March 31, 2025. During the period, net profit before tax was 416.27 Crore. The primary adjustment consisted of depreciation and amortisation expense 32.02 Crore and finance cost of 17.36 Crore.

The operating profit before changes in operating assets and liabilities was 464.53 Crore. The primary adjustment consisted of changes in current and noncurrent liabilities of 82.32 Crore; current and noncurrent assets of (447.07) Crore; and change in inventory of (29.56) Crore.

[b] Cash Flow from Investing Activities:

Net cash flow used in investing activities for the financial year ended on March 31, 2025 was (290.69) Crore, primarily due to acquisition of property, plant and equipment and intangible assets (including capital work in progress, intangible assets under development and capital advance) of (188.89) Crore; movement in bank deposit of (28.65) Crore; and investment of (79.01) Crore.

[c] Cash Flow from Financing Activities:

Net cash flow generated from financing activities for the financial year ended on March 31, 2025 was 81.04 Crore, primarily on account of reduction in current borrowing of 108.39 Crore, payment of finance cost of (16.46) Crore and loan of (8.54) Crore given.

Changes in Key Financial Ratios:

Changes exceeding 25% in key financial ratio as compared to previous year, along with explanation is given herein below are given below:

Particulars	2024-25	2023-24	Change in %	Reason for Change
Debtor Turnover (days)	99	72	39%	Due to increase in sales.
Inventory Turnover	1.27	1.1	16%	Due to fast movement in Inventory.
Interest in Coverage Ratio	25.50	3.84	564%	Due to increase in earnings available for servicing debt.
Current Ratio	2.76	3.34	(17%)	Due to increase in debt towards working capital.
Debt Equity Ratio	0.10	0.05	92%	Due to increase in borrowing.
EBITDA Margin	28.38	22.87	24%	Due to Increase in Margin.
Net Profit Margin	19.20	11.77	63%	Due to Increase in Net Profit.

Change in Return on Net Worth:

Our return on net worth for the financial year 2024-25 was 16.22 compared to 12.50 in the previous financial year 2023-24. This improvement was mainly due to higher earnings from our operations and lower debt levels.

Consolidated Financial:

During 2024-25, the Company recorded profit after tax of 316.01 Crore (previous year 150.86 Crore). The same is on account of the increase in revenue from operations as well as the turnaround in the operation of subsidiary.

Analysis of major items of financial statements is given below:

Income:

Our total income comprises (i) revenue from operations and (ii) other income

a] Revenue from Operation:

Revenue from operations is recognised over time, when the outcome of the contract can be estimated reliably by reference to the percentage of completion of the contract on the reporting date under input method. Revenue from operations comprises (i) sale of products which further comprises sale of machinery and sale of machinery parts, (ii) sale of services such as income from annual maintenance contract, machine service, job work and installation and commissioning; and (ii) other operating income which primarily includes income from export and other incentive schemes and others.

During the year, the revenue from operations of the Company increased by 36% primarily due to higher revenue from sale of customised and high-end models.

b] Other Income

Other income comprises (i) interest income; (ii) gain on sale of property, plant and equipment (iii) foreign exchange fluctuation gain (net of loss); and (iv) gain on sale of investment.

Cost of Materials Consumed:

Cost of materials consumed consists of raw materials used for manufacturing components and includes the electronics and other components that we procure.

During the year, the cost of material consumed was 47.80% against 50.33% in the previous year. This is mainly because of the revenue contribution from sales of customised and high-end machines.

(Increase)/decrease in inventories of finished goods and work-in-progress:

(Increase)/decrease in inventories of finished goods and work-in-progress denotes increase/decrease in inventories of finished goods and work in progress between opening and closing dates of a reporting period as adjusted for changes on account of foreign currency translation.

The inventories of the Company at the year end consist of raw materials, work in progress, finished goods and stores and spares. At the end of the fiscal year under review, the inventories were 900.48 Crore compared to 865.99 Crore at the end of previous fiscal year.

Employee Cost:

Employee benefit expenses primarily include salaries and wages, contribution to provident fund and other funds, and other employee benefit expenses.

During the year under review, the employee cost increased primarily due to salary revisions, new hiring and its consequential impact on retirement provisions.

Depreciation and Amortisation:

Depreciation and amortisation expenses primarily include depreciation expenses on tangible properties other than lands (on long-term lease), amortisation expenses on lands (on long-term lease), right to use assets and intangibles assets.

During the year under review, depreciation and amortisation expenses expense was 36.45 Crore which is 1.99% of total income for the period.

Other Expenses

Other expenses comprises: (i) consumption of stores and spares; (ii) job work charges; (iii) power and fuel expenses; (iv) factory expenses; (v) transportation expense; (vi) clearing, forwarding and agency expenses; (vii) repairs and maintenance expense; (viii) advertisement, marketing expenses and exhibition expenses; (ix) AMC expenses; (x) legal & professional charges; (xi) office expenses; (xii) postage, stationery, and telephone expenses; (xiii) commission expense;

(xiv) travelling, conveyance & vehicle expenses;

(xv) foreign exchange fluctuation loss (net of gain);

(xvi) expected credit loss; (xvii) warranty expense; (xviii) corporate social responsibility expenses; (xix) donation; (xx) audit fees; and (xxi) miscellaneous expenses.

During the year under review, the increase/(decrease) in expenses was driven by our operational activities.

		(Rs. in Crore)
Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024
Manufacturing and Other Direct Expenses
Consumption of Stores and Spares	12.68	9.53
Job Work Charges	29.29	23.59
Power & Fuel Expenses	29.84	26.31
Transportation Expenses - Inward	14.83	16.79
Clearing, Forwarding and Agency Expenses - Import	1.89	2.31
Repairs & Maintenance - Machinery*	6.19	5.44
	94.72	83.97
Administrative and Selling Expenses
Advertisement, Marketing Expenses, and Exhibition Exp	15.37	12.02
AMC Expenses	3.04	2.52
Clearing and Forwarding Expenses - Exports	0.68	1.00
Donation	0.62	0.15
Transportation Expense - Outward	12.10	10.94
Legal and Professional Charges	10.95	7.16
Office Expenses	1.04	1.29
Postage, Stationery, and Telephone Expenses	1.91	1.68
Remuneration to Auditor
- Fees Paid to Auditor	2.65	1.15
Commission Expense	6.44	4.24
Travelling, Conveyance and Vehicle Expenses*	19.47	15.47
Corporate Social Responsibility Expenses#	1.78	0.39
Expected Credit Loss	3.55	1.26
Warranty Expense	0.86	(0.27)
Misc Expense	24.63	16.35
	105.08	75.35
Total	199.80	159.32

Finance Cost:

Finance costs include interest expenses on borrowings and others and bank and other financial charges.

During the year under review, the finance cost was 42.08 Crore, drastically decreased by 53.10% as compared to previous years cost of 89.72 Crore. The same was due to repayment in borrowings and opting for low-cost external finance (both fund-based and nonfund-based facilities) towards its working capital need.

Indebtedness:

As of March 31, 2025, the non-current borrowing was 102.56 Crore, and current borrowing was 394.32 Crore.

During the year under review, non-current borrowing increased due to availment of finance by subsidiaries for their business.

Further, the increase in current borrowing reflects our decision to opt for fresh borrowings to meet our working capital needs.

Earning before Interest, Tax and Depreciation and Amortisation (EBITDA):

EBITDA was 490.86 Crore in 2024-25 compared to EBITDA of 300.95 Crore in 2023-24. While EBITDA margin was 27.00% in 2024-25 compared to 22.48% in 2023-24.

Income Tax Expense:

During the year under review, our total income tax was 101.73 Crore compared to 34.09 Crore in the previous fiscal. The increase in income tax expense was primarily due to higher profit before tax from our operations.

Profit for the Year:

We earned a profit (after tax) of 316.01 Crore in 202425 compared to 150.86 Crore in 2023-24.

Cash Flows:

( in Crore)

Particulars	Amount
Cash Flow from operating activities	(105.43)
Net Cash flow from/(used in) investing activities	(328.96)
Net Cash flow from/(used in) financing activities	145.43
Net(decrease)/increase in cash and cash equivalents	(288.96)
Cash and cash equivalent at year end	13.38

[a] Cash Flow from Operating Activities:

Cash flow from operating activities was (105.43) Crore during the financial year ended on March 31, 2025. During the period, net profit before tax was 417.74 Crore. The primary adjustment consisted of depreciation and amortisation expense 36.45 crores; finance cost of 42.08 Crore; Interest and Commission income of (8.51) Crore; unrealised forex of 7.44 Crore; and expected credit loss of 3.55 Crore.

The operating profit before changes in operating assets and liabilities was 503.88 Crore. The primary adjustment consisted of changes in current and noncurrent liabilities of 75.28 Crore; current and noncurrent assets of (563.33) Crore; and change in inventory of (34.49) Crore.

[b] Cash Flow from Investing Activities:

Net cash flow used in investing activities for the financial year ended on March 31, 2025, was (328.96) Crore, primarily due to acquisition of property, plant and equipment and intangible assets (including capital work in progress) of (309.83) Crore; movement in bank deposit of (28.65) Crore; interest and commission received of 5.82 Crore; and investment of 3.67 Crore.

[c] Cash Flow from Financing Activities:

Net cash flow generated from financing activities for the financial year ended March 31, 2025, was 145.43 Crore, primarily due to a reduction in current borrowings of 174.82 Crore, a reduction in non-current borrowings of 18.05 Crore, payment of finance costs amounting to 41.61 Crore, and loans given amounting to 5.82 Crore.

Changes in Key Financial Ratios:

Changes exceeding 25% in key financial ratio as compared to previous year, along with explanation is given herein below are given below:

Particulars	2024-25	2023-24	Change in %	Reason for Change
Debtor Turnover (days)	74	54	37%	Due to increase in sales.
Inventory Turnover	2.06	1.14	81%	Due to fast movement in Inventory.
Interest in Coverage Ratio	11.14	3.06	264%	Due to increase in earnings available for servicing debt.
Current Ratio	2.15	2.47	(13%)	Due to increase in debt towards working capital.
Debt Equity Ratio	0.29	0.22	34%	Due to increase in borrowing.
EBITDA Margin	27.00	22.48	20%	Due to increase in Margin.
Net Profit Margin	17.39	11.27	54%	Due to increase in Profit.

Change in Return on Net Worth:

Return on net worth for 2024-25 was 20.72 as compared to 20.86 in 2023-24. Change in return on net worth is due to lower equity base consider for financial year 2023 - 24.

Contingent Liabilities:

The following table set forth the principal components of our contingent liabilities as per Ind AS 37 - Contingent Liabilities to the extent not provided for, as at March 31,2025:

Particulars	(Rs. in Crore) 2024-25
Letter of Credit, Standby Letter of Credit, Letter of Comfort, and Bank Guarantee
(i) Outstanding Letter of Credits and Bank Guarantee	115.43
(ii) Outstanding Standby Letter of Credit and Letter of Comfort	167.43
Claim Against the Company not Acknowledged as Debt
- Vendor	-
- Customer (Compensation claim)	0.82
- Customer (Amount paid under protest)	0.54
Disputed Excise Duty, Service Tax and Other Liabilities in respect of Pending Litigations before Appellate Authority and Against which amount paid Under Protest are as follows
- Disputed excise duty liabilities	2.27
- Disputed income tax liabilities	19.57
- Disputed GST Liabilities	1.86
- Disputed CST liabilities	15.53
- Disputed VAT liabilities	2.59
- Amount paid under protest - Excise duty	0.23
- Amount paid under protest - CST	1.40
- Amount paid under protest - GST	0.53

For contingent liabilities and commitments, Shareholders are requested to refer the notes to the financial statements given in this annual report.

Related Party Transactions:

During the year under review, we entered into various transactions with related parties in the ordinary course of business. These primarily included the sale of finished goods, purchase of raw materials, temporary loans taken from directors and the promoter along with interest on such loans, employee benefits, loans and advances given, trade receivables, and directors sitting fees. The details of these transactions are provided in Note No. 36 to the audited financial statements included in this Annual Report.

Change in Accounting Policies and Treatment:

In preparing our financial statements, we have followed accounting policies and treatments that fully comply with the prescribed accounting standards, without any deviations during the year.

Auditors Observations:

The report on the auditor and notes on the financial statements referred to in the Auditors Report are self-explanatory and do not contain any remarks, qualifications, reservations which require separate explanation thereto. Also, attention of Investors is drawn to the emphasis of matter given in the report of Auditor.