Kovilpatti Lakshmi Roller Flour Mills Ltd Management Discussions

INDUSTRY STRUCTURE, DEVELOPMENTS AND FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Results

The Companys total income stood at 42,879.75 lakhs in contrast to 41,365.90 lakhs achieved during the previous year 202425.

The EBIDTA of the Company for FY 202425 is 1,688.34 lakhs compared to 2,653.19 lakhs in FY 202324.

The PAT reported for FY 202425 is 128.97 Lakhs compared to 781.28 lakhs in FY 202324.

OPPORTUNITIES, THREATS, RISKS & CONCERNS

Food Division

The Indian wheat market and wheat products market have experienced significant changes during the FY 202425. Indias wheat production during the year was 122.7 million tons a slight increase compared to the previous year.

The OMSS (Open Market Sales Scheme) program implemented by the FCI (Food Corporation of India) for the FY 202425 was continued from November 2024 to February 2025 , to facilitate the sale of surplus food grains, primary wheat, and rice, from the central pool in the open market at predetermined prices through eauction in the open market time to time which enhances the supply of wheat during the lean season.

Weather conditions such as droughts and floods can significantly impact wheat production and quality, leading to fluctuations in the market

Domestic demand for wheat is expected to remain strong, driven by the increasing demand for wheatbased products such as bread, pasta, and biscuits. The demand is also influenced by the growing population and urbanization.

Engineering Division

The Indian foundry industry is oldest and largest industries, with over 5000 foundries spread across the country. India is now the second and largest producer of castings in the world after China. Estimated to grow at a CAGR of 10.30% between 20242029.

The industry caters to various segments such as but not exclusive to; Railways, Machine Tool Building Equipment, Sanitary Fittings, Defense, Aerospace, Earth Moving Machinery, Energy related equipment, Pumps & Valves., while the automotive sector continues to be the largest consumer of castings the industry is seeing growth in demand from sectors such as Railways, Defense, and power.

The Indian foundry industry continues to innovate in its adoption of energyefficient technologies reducing the consumption of energy within the industry, Despite the adoption of new technologies the industry faces challenges in the forms of increasing energy costs, lack of infrastructure, inadequate R&D, and increasing competition globally. These challenges must be addressed to sustain the Indian Foundry Industries growth momentum.

The industry has the potential for continuous growth and innovation with increasing demand from various sectors and the adoption of new technologies.

SEGMENTWISE AND PRODUCTWISE PERFORMANCE

Segmentwise and productwise results are stated separately under the relevant notes on accounts to the financial statements.

ECONOMIC OUTLOOK FOR THE YEAR

The International Monetary Fund (IMF) has upgraded Indias real GDP growth forecast to 6.4% for both 2025 and 2026, reaffirming India as the fastestgrowing major economy worldwide.

The Reserve Bank of India (RBI) has already trimmed its policy rate twice and is expected to pursue further easing as inflation remains aligned with targets.

Supported by the Indian Governments push for structural reforms and growing consumer confidence, the country is selfconfident to handle global challenges.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Planned periodic reviews are carried out resulting in identification of deficiencies and formulation of time bound action plans to improve efficiency. The adequacy of the internal control systems is periodically reviewed by the Audit Committee. This, supplemented with existing periodical management reviews, will enable the Company to improve its monitoring system at all levels.

The Company has internal control procedures commensurate with its size and the nature of its business for purchase of raw materials, plant and machinery, components, other items and sale of goods.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the company during the financial year 20242025 has been discussed in the Directors Report and the audited financial statements, which has been prepared in accordance with the requirement of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, discloses a true and fair view of the performance of the company during the said period.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes that its people are a key differentiator, especially in knowledge driven, competitive and a global business environment. Adapting work culture to suit the dynamic balancing of people requirements and employee needs is an ongoing process. Fundamental HR processes which enable higher performance orientation, speed, skill and competency development, talent management are corner stones for the success of any organization. The Company is giving direct employment to 208 employees as in the past, the industrial relations continued to remain cordial in all the divisions of the Company.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS INCLUDING DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF