La Tim Metal & Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS BUSINESS OVERVIEW

The Company is engaged in the business of manufacturing and dealing in color coated coils and profiles for the Indian market. The Company envisages a long term potential for steel consumption in the domestic market. The Steel Industry is considered as backbone of the modern society and has direct correlation with the Industrial development of the Country. The Company has also ventured into the export markets, specially the European market. Besides local procurement, the Company also depends on imports for its raw material requirements.

Company also has a business segment in real estate development.

GLOBAL SCENARIO

Global economic growth remained resilient, moderating from 3.5% in CY 2022-23 to 3.3% in CY 2023-24, and is projected at 3.2% in 2025. Despite some volatility and rising sovereign yields, financial conditions remained broadly accommodative. Growth trends varied across regions, with strong performance in the United States supported by technology investments, while Europe and China witnessed slower momentum. Meanwhile, inflation remained largely stable, with both headline and core inflation showing mild firming sequentially but remaining contained on an annual basis, supporting overall macroeconomic stability.

Global growth is projected to remain resilient at 3.3% in 2026 and 3.2% in 2027, broadly in line with 2025 levels, despite moderating momentum in high-tech sectors and lingering trade uncertainties. Inflation is expected to ease from 4.1% in 2025 to 3.4% by 2027. Advanced economies will witness steady but moderate growth, while emerging markets, including India, will continue to drive global expansion, supported by structural strengths and policy support. The situation in West Asia remains dynamic, set against an evolving global economic landscape. Encouragingly, the resilience demonstrated by global markets and economies provides confidence in their ability to adapt and navigate emerging challenges effectively.

Indian Economy & Steel Industry

India continues to stand out as one of the worlds fastest-growing major economies with GDP growth for FY 2025-26 was 7.6%, driven by the twin engines of consumption and investment. Strong domestic demand, supported by rising purchasing power, stable employment and healthy rural and urban consumption, remains the cornerstone of growth. Investment activity has also strengthened, reflecting improving business confidence and sustained public capital expenditure. While global uncertainties and trade-related challenges persist, India has demonstrated resilience by advancing structural reforms, enhancing ease of doing business and strengthening economic fundamentals. Inflation remains largely contained, and balance sheets across households, corporates and banks are robust.

OUTLOOK

FY 2026-27 is expected to mark a phase of steady consolidation, supported by resilient domestic demand and strengthening investment momentum. While global uncertainties persist, moderating inflation and more accommodative monetary conditions provide a supportive backdrop. Continued policy reforms, improved ease of doing business and ongoing trade negotiations are likely to ease external pressures. With healthy balance sheets and sustained public investment, he Indian economy remains well-positioned to navigate global volatility, with GDP growth projected at ~7.2%, reflecting a stable and optimistic growth outlook.

OPPORTUNITIES AND THREATS

The major threat to the global economy as a whole is inflation. The action by the US government of increasing the interest rates sharply as a result of high inflation, and to try and control it, has led to fall in consumption and purchases. It has also resulted in the currencies of most countries depreciating against the USS. All these factors are a threat to the growth in global trade.

Prospect for the steel sector in India, however, is seen to be bright in the long term. Production capacities have increased. Government has introduced the Productivity Linked Incentive Scheme (PLI) for the steel sector. The steel body also sees growth coming for the Industry from investments in railways, infrastructure and automotive sector which is making consistent efforts to boost sales of their lower segment priced vehicles. The Company has a positive outlook to benefit from the commodity market revival in the year.

In India, color coated coils and profiles are mainly consumed in construction and infrastructure sector. In recent years, color coated coils and profiles have gained lots of acceptance in the domestic market and consequently their consumption has tremendously increased in last several years. It is widely expected that color coated coils and profiles will gradually replace traditional roofing and siding materials in construction sector.

Your Company is cautious while looking for growth opportunities and also for new markets in its product segments. The Company faces several market risks arising in its normal course of business. The major threat to this industry include variations in raw material prices, fluctuations in foreign currency exchange rate and changes in interest rates which may have an adverse effect on the Companys financial assets, liabilities and/or future cash flows. The Company however has identified certain growth opportunities and is planning to expand in those niche segments.

OPERATIONS/STATUS OF COMPANYS AFFAIRS

During the Financial Year under review, the Company has earned the Total income of Rs 39,173.36 lakhs as compared to Rs. 26138.36 lakhs in the previous year and the Net Profit of Rs. 780.78 lakhs

as compared to Loss of Rs. 85.99 lakhs (including exceptional items) in the previous year.

FUTURE STRATEGY

Your Company has taken innovative steps in strict negotiations for Raw Materials sourcing, improved inventory management and increasing Domestic Sales besides starting of exports. This helped us improve operational performance of the Company. In keeping with the initiatives taken by your Company for increasing investments, it has introduced new designs in wood, marble, stones and flowers in various shades. The company is planning to expand into the printed multi color design which has opportunities in various furniture and interior and exterior segments of the construction industry. This has helped increase not only business volumes, but also value addition of product lines. We foresee a much bigger demand for domestic and export sales. Besides, our efforts to penetrate more specialized market of appliance sector would also offer a much higher return. The demand for Steel products in the market is definitely bound to improve and expected to grow further in the medium to long term. With all these investments, your Company is expected to do much larger business volumes in the coming years. The Company has been exploring new business verticals under different product line like

1. Stone Coated steel/ Roofing sheets.

2. Self-drilling screws for roofing/cladding/paneling etc.

3. Designer coated steel coils with prints of Wood, Marble stones, Floral prints for wall, Ceiling Panels/Louvers/Furniture/Fencing etc.

Our Company has been successful in launching the new product of stone coated steel, roofing in various markets in India. This new product vertical has a good value addition and is mainly targeted towards the premium category of hotels, resorts & Bunglow schemes, premium community housing etc.

It is targeting towards the growth is hospitality industry as well as the premium real estate industry. Our Company has focused on the niche markets with dedicated marketing & promotion towards brand creation. And is also expanding its reach through large potential building material distributors and dealers.

Our Company is very confident for this product in the Indian market and the company is expecting more demands for it. To meet the supply chain requirement, the company will take necessary action like expansion of plant or set up a new pant.

The Company always involved in research and development for enhancing new products. In this process, the company comes with a new product which is First time launched by the company in this year. The product is in an advanced development stage will combine the function generating energy with the help of solar panels which are integrated into the stone coated roofing. The Company will launch this product very soon. In future products company is planning to introduce Stone Coated Solar Roofing Tiles and Asphalt Shingles.

Company is also in real state business. To expand its business in this sector, company entered into new venture La Tim Industrial Park, large land parcel in Khopoli-Pali area, LaTim Group brings huge business potentiality, among an existing hub of steel industries including Tata Bhushan Steel Ltd., Asian Colour Coated Ispat Ltd., Uttam Galva Steels, Top worth Pipes and Tubes, Maharashtra Seamless Tubes & JSW Steel Plant and many more in the nearby vicinity.

RISK AND CONCERN

While risk is an inherent aspect of any business, the company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio, financial, legal & internal process risk.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Companys internal financial control systems are commensurate with the nature of its business and the size and complexities of its operations. These systems are designed to ensure that all the assets of the Company are safeguarded and protected against any loss and protected against loss and that all transactions are properly authorized, recorded and reported. The company is always trying to improve on the internal controls to further safeguard any leakages.

STANDALONE FINANCIAL PERFORMANCE AND FY 2025-26

(Amount in Lakhs)

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

It is your Companys belief that people are at the heart of corporate purpose and constitute the primary source of sustainable competitive advantage. Your Companys belief in trust, transparency and teamwork improved employee KEY FINANCIAL RATIOS productivity at all levels. The Company continues to lay emphasis on developing and facilitating optimum human performance. Recruitment process has been strengthened to ensure higher competence levels. Company has total 47 employees as on March 31^st, 2026 to meet the need of business. From time to time Company introduced new employees and conduct programs to develop the skills of the employees.

The Ratios as per latest amendment to Schedule III are as below:

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF;

The Return on Net Worth of the Company for the financial year ended 31st March, 2026 was 10.48%, as compared to (1.22)% in the immediately preceding financial year ended 31st March, 2025.

The significant improvement in Return on Net Worth during the year under review is primarily attributable to the substantial improvement in the profitability of the Company. The Company recorded a Profit After Tax of Rs780.78 lakhs during FY 202526 as against a Net Loss of Rs85.99 lakhs during FY 2024-25.

Further, the Net Worth of the Company increased from Rs7,041.19 lakhs as at 31st March, 2025 to Rs7,824.61 lakhs as at 31st March, 2026, representing an increase of approximately 11.13%. The increase in Net Worth, coupled with the significant improvement in profitability, resulted in a substantial improvement in the Return on Net Worth during FY 2025-26.

The improvement in profitability is primarily attributable to the overall improvement in the Companys operational and financial performance during the year under review.

DISCLOSURES

During the year the company has not entered into any transaction of material nature with its promoters, the directors or the management, their subsidiaries or relatives etc, which may have potential conflict with the interest of the Company at large. All the details of transaction covered under related party transaction are given in the notes to accounts.

CAUTIONARY STATEMENT

Certain statements in the Management Discussion and Analysis and Directors Report describing the Companys Objectives, Strategies, projections, outlook, expectations, estimates and others may constitute forward · looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.