Kalyani Cast-Tech Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

- INDUSTRY STRUCTURE AND DEVELOPMENT

Kalyani Cast-Tech Limited has been actively engaged the business of Manufacturing of high-quality castings and specialized cargo containers. Kalyani Cast-Tech Limited has witnessed and contributed to significant growth and evolution in this sector. We remain dedicated to maintaining our competitive edge and driving sustainable growth.

- LEADERSHIP AND EXPERTISE

The growth and success of Kalyani Cast-Tech Limited are the result of strong and effective leadership. Our management team, with its extensive industry experience, has played a crucial role in guiding the company through key milestones and achieving significant progress.

 

i. Mr. Naresh Kumar, Chairman & Managing Director: Mr. Naresh Kumar, with over 35 years of experience in the manufacturing and industrial sectors, brings a wealth of expertise to our organization. His extensive background has been instrumental in guiding the company through periods of growth and transformation. Mr. Kumar’s strategic insight has been vital in shaping our long-term vision and navigating the complexities of the industry. His leadership has helped drive key initiatives, including the successful execution of our IPO and expansion strategies. His emphasis on adopting advanced technologies and optimizing processes has significantly enhanced our operational efficiency and product quality, contributing to our competitive advantage.

 

ii. Ms. Jayashree Kumar, Whole Time Director: As Whole-Time Director, Ms. Jayashree Kumar plays a crucial role in managing the company’s day-to-day operations. Her oversight ensures that our operations align with our strategic goals and maintain high standards of performance. Ms. Kumar is actively involved in streamlining operational processes and implementing effective management practices. Her contributions have been key to improving efficiency and achieving operational excellence. Ms. Kumar’s leadership in coordinating various departments and overseeing critical projects has been essential in achieving our business objectives and supporting our growth initiatives.

 

iii. Mr. Devender Kumar: As a Non-Executive Director, Mr. Devender Kumar provides essential governance and oversight. His role is crucial in ensuring that the company adheres to best practices in corporate governance and maintains high standards of integrity and accountability. His contributions help in shaping the company’s strategic direction and in making informed decisions that align with our long-term objectives. With a wealth of experience in the industry, Mr. Kumar brings valuable perspectives to the Board. His background helps in evaluating business strategies, assessing risks, and supporting the company’s growth initiatives. Mr. Kumar provides guidance on key business matters and strategic issues, helping to ensure that the company’s actions are aligned with its mission and vision.

 

iv. Kumar Sharat Chandra, Independent Director: As an Independent Director, Mr.

Kumar Sharat Chandra plays a key role in providing unbiased oversight and ensuring that the company adheres to high standards of corporate governance and ethical practices. Mr. Chandra’s extensive experience brings valuable perspectives to the

Board, helping to evaluate and refine our strategic initiatives. His insights are crucial in guiding the company towards its long-term goals. Mr. Chandra actively participates in various Board committees, contributing to effective decision-making and the formulation of policies that support the company’s growth and compliance objectives.

 

v. Mr. Sanjeev Negi, Independent Director: Mr. Sanjeev Negi, in his role as an Independent Director, ensures robust governance and accountability. His independent judgment supports the Board in maintaining transparency and aligning business practices with regulatory requirements. Mr. Negi’s expertise in the industry provides valuable input into the company’s strategic planning. His advice helps in identifying opportunities and addressing challenges, contributing to the company’s strategic success. Mr. Negi’s active participation in Board committees supports the development of sound policies and procedures. His role is integral to ensuring effective governance and strategic oversight.

- OUTLOOK

Kalyani Cast-Tech Limited remains optimistic about its growth trajectory for the coming years. Continued positive trends in the manufacturing and logistics sectors, along with rising demand for industrial castings and specialized cargo containers, are opening up substantial opportunities for expansion.

The Company is strategically positioned to leverage these emerging opportunities through consistent product innovation, adoption of advanced manufacturing technologies, and a strong emphasis on operational efficiency. Our commitment to sustainability and environmentally responsible practices further aligns us with global business trends and stakeholder expectations.

In FY 2025, our focus remains on:

- Operational excellence across all business functions - Geographic and market expansion - Enhancing customer experience and satisfaction - Managing risks through proactive strategies

With strong fundamentals and a dynamic business approach, we are confident in our ability to adapt to evolving market conditions, address challenges like raw material price volatility and regulatory changes, and continue delivering sustainable value to our stakeholders.

- OPPORTUNITIES AND THREATS

Opportunities and Strengths:

1. Experienced Promoters and Professional Management

Our business continues to benefit from the strategic vision and industry insight of our experienced promoters, supported by a professional management team. Their combined expertise ensures agile decision-making and long-term value creation.

2. Rising Demand Driven by Infrastructure and Export Growth

With continued investments in infrastructure, logistics, and the "Make in India" and "Atmanirbhar Bharat" initiatives, there is growing domestic and international demand for high-quality castings and cargo transport solutions. Our offerings align well with the needs of sectors.

3. Established and Diversified Clientele

We maintain long-standing relationships with reputed institutional clients across India and select global markets. Our reputation for delivering consistent quality and timely solutions has enabled us to secure repeat business and expand into new industry segments.

4. Strong Focus on Product Customization and Innovation

We continuously invest in design and engineering capabilities to develop tailored casting components and cargo container solutions that meet evolving industry requirements. Our R&D efforts position us as a preferred partner for specialized and high-performance products.

5. Skilled and Agile Marketing Team

Our marketing team remains focused on tapping into emerging sectors and geographic regions. Through targeted outreach and deep customer engagement, we continue to build brand recognition and generate new business opportunities.

6. Operational Excellence and Cost Efficiency

We have embedded lean manufacturing practices and continuous improvement initiatives across our operations. These efforts enhance productivity, ensure optimal resource utilization, and improve our ability to respond quickly to changing market demands.

7. Robust Quality Assurance and Compliance Systems

Our stringent quality control protocols, backed by modern testing infrastructure, ensure that every product meets both domestic and international standards. This commitment to quality builds client trust and reduces warranty and service costs.

 

Threats and Risks:

Raw Material Price Volatility: Fluctuations in raw material prices can impact production costs and profit margins. Managing these cost variations through effective sourcing strategies is essential.

 

Regulatory Changes: Evolving regulations and compliance requirements may pose challenges. Staying abreast of regulatory changes and adapting our practices accordingly is crucial to mitigating potential risks.

 

Market Competition: Increased competition in the manufacturing and logistics sectors could affect our market share and pricing strategies. Continuous innovation and operational efficiency are key to maintaining our competitive position.

 

Economic Uncertainty: Economic fluctuations and geopolitical factors can influence market conditions and business performance. Adopting flexible strategies and maintaining financial resilience will help us navigate these uncertainties.

 

Political and Policy-Related Risks: Political instability or changes in government at the central or state level may impact infrastructure spending, taxation, and procurement policies. Delays in clearances or inconsistent policy implementation can affect project timelines and order flows.

 

SEGMENT WISE PERFORMANCE

Kalyani Cast-Tech Limited does not have multiple segments. Hence, comments on segments are not required.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The details have been provided in Board’s Report.

 

INTERNAL CONTROL

The Company has adequate internal control system commensurate with the nature, size, and scale of its business operations. Internal control systems comprising of policies and procedures are designed to ensure the robust operational controls, reliability of financial policies, procedures, applicable laws and regulations and that all assets and resources are acquired economically, used efficiently and adequately protected. These systems enable integrity of financial reporting and adherence to defined guidelines.

Internal controls are regularly reviewed for the changing business economic and regulatory environment and to ensure efficiency and effectiveness. Corporate policies, management information and reporting system for the major operational areas form part of the overall control mechanism.

 

DEVELOPMENT IN HUMAN RESOURCE

At Kalyani Cast- Tech Limited, we firmly believe that our employees are pivotal to our success and growth. Our human resources strategy is designed to attract, retain, and nurture the best talent, ensuring that each individual contributes effectively to our business objectives. Our workforce includes:

 

Experienced Professionals: These individuals bring valuable industry knowledge and expertise, contributing to strategic decision-making and high-level operational oversight. Skilled Workers: Employees with specific technical skills and specialized knowledge play a crucial role in maintaining operational efficiency and product quality. Semi-Skilled and Unskilled Workers: These team members are integral to day-to-day operations, supporting various tasks that are essential for the smooth functioning of our manufacturing processes.

 

SIGNIFICANT CHANGES

Particulars	2025	2024
Debtor Turnover	07	11
Inventory Turnover	10	06
Current Ration	6.50	3.99
Debt Equity	0.08	0.16
Net Profit Margin	10	10
Debt Service Coverage	0	85
Return on Equity	22.05	19.07
Net Capital Turnover Ration	03	02
Return of Capital employed	34	40

 

FUTURE PERSPECTIVE:-

Kalyani Cast-Tech Limited’s forward-looking approach, characterized by strategic expansion, technological advancement, product innovation, and commitment to sustainability, positions us for continued success and value creation for our stakeholders.

 

CAUTIONARY STATEMENTS

All statements made in Management and Discussion Analysis have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.