Forward Looking Statement - In this, Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Company s objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that, these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company s operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.
Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 the Listed Companies are required to furnish Management Discussion and Analysis Report (MDAR) as a part of Director s Report to the Shareholders.
As per Schedule V of SEBI (Listing Obligations and Disclosures Requirements), Regulations, 2015, Annual Report shall contain the below points in the Management Discussion and Analysis Report (MDAR):
* Industry Structure and developments.
* Opportunities
* Risk and Concern
. * Internal Control System and their adequacy.
* Discussion on Financial performance with respect to operational performance.
* Material developments in Human Resources/ Industrial Relations front, including number of people employed.
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
The global pumps market is estimated at around USD 59 61 billion in 2024 and is projected to grow at a CAGR of approximately 4.5 5.5% over the next decade. Centrifugal pumps dominate the industry with nearly two-thirds of the total revenue share, serving applications in clean water, wastewater, irrigation, and industrial processes. Positive displacement pumps represent a smaller but important niche, particularly in dosing, chemical processing, and oil & gas. Regionally, Asia Pacific leads with about 45% of the global market, supported by rapid urbanization, large-scale infrastructure spending, and expansion of water supply networks. North America is expected to record one of the fastest growth rates, driven by industrial upgrades, energy efficiency mandates, and water reuse initiatives.. A major emerging opportunity lies in solar pumping solutions. The global solar water pump market is valued between USD 1.6 billion and USD 2.8 billion in 2024, with growth forecasts of 8 9% CAGR over the medium term. Declining photovoltaic costs, improved BLDC and permanent-magnet motor efficiency, and government incentives for off-grid irrigation are accelerating adoption. Buyers increasingly prefer integrated systems combining the pump, advanced controllers, protection devices, and remote monitoring favoring manufacturers with strong engineering depth and after-sales networks. The Indian market is also witnessing a rapid structural shift toward solar pumping, driven by programs such as PM-KUSUM, state solar irrigation schemes, and utility-scale feeder solarization. These initiatives are promoting the replacement of diesel and grid-powered pumps with solar-powered submersibles, reducing life-cycle operating costs for farmers. Concurrently, energy-efficiency policies, such as BEE star labelling for pump sets and mandatory IE3-class motors in certain applications, are accelerating the replacement of outdated installations. The overall global outlook for the pump industry is positive, with mid-single-digit growth expected through the next decade. Long-term drivers include urban water security, wastewater treatment and reuse, renewable energy-powered irrigation, and replacement of low-efficiency installed bases. This environment is well aligned with Latteys Industries Limited s focus on energy-efficient stainless-steel submersible pumps, solar-ready systems, electronics integration, and a robust service footprint, positioning the company to leverage emerging opportunities across both domestic and export markets.
2. OPPORTUNITIES
* Replacement of low-efficiency pump-sets with BEE-rated or BLDC solutions.? * Solarization of agriculture feeders and off-grid irrigation.? * Rural water infrastructure, wastewater treatment, and reuse.?
* Expanding export potential to Africa, Middle East, and South Asia where climatic and groundwater conditions mirror India.?
THREATS
* Raw-material price volatility and exchange fluctuations.?
* Water-table decline in certain regions affecting duty points and product sizing.? * Tender-linked pricing pressure and elongated receivable cycles in institutional business.? * Unorganized competition in price-sensitive pockets.? * Component availability for electronics and power semiconductors.?
3. INTERNAL CONTROL SYSTEM
The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.
4. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Latteys Industries Limited recorded a strong financial performance in FY 2025 compared to the previous year. The company s revenue grew from 636.46 million in FY 2024 to 802.68 million in FY 2025, marking a healthy year-on-year growth of 26.1%. This increase reflects higher demand for its products and possibly better market penetration in the pump and solar segments.
From an operational performance perspective, operating income (EBIT) rose from 37.63 million in FY 2024 to 41.5 million in FY 2025, a growth of about 10.3%. While this is a positive increase, it is notably lower than the revenue growth rate. This disparity suggests that the cost of goods sold, raw material expenses, or other operational overheads grew faster than anticipated, slightly diluting operational efficiency.
The company s net income increased from 14.94 million to 18.07 million, up by approximately 21%, indicating that despite moderate operating profit growth, overall profitability benefited from other factors such as improved non-operating income or better tax management. However, the net margin slipped marginally from 2.35% to 2.25%, highlighting the impact of rising input costs or operational expenses on profitability ratios.
In summary, while Latteys Industries posted excellent financial growth in absolute terms, its operational performance, though positive, lagged behind revenue expansion. This suggests that the company successfully captured more business but needs to focus on controlling operational costs to align profitability growth more closely with sales growth.
The financial performance of the company is as follows:
Particulars | FY 2024-25 | FY 2023-24 |
Turnover | 8026.83 | 6364.61 |
Other Income | 32.30 | 31.00 |
Total Income | 8058.86 | 6395.61 |
Finance Cost | 158.85 | 166.21 |
Depreciation and amortization expenses | 60.22 | 143.85 |
Profit Before Tax | 256.14 | 203.02 |
Tax Expenses: | 55.56 | |
Current Tax | 19.90 | 62.07 |
Deferred Tax | -8.61 | |
Profit after Tax | 180.69 | 149.55 |
Ratio
Particulars | Numerator/Denominator | For the Year 2024-25 | For the Year 2023-24 | Variance (%) |
a) Current Ratio | Current Assets | 1.44 | 1.33 | 8.27% |
Current liabilities | ||||
b) Debt-Equity Ratio | Total Debt | 0.43 | 0.90 | -52.22% |
Total Equity | ||||
Earning before Interest and Tax | ||||
c) Debt-Service Coverage Ratio | Interest Expense + Principal Repayments made during the Year for Long Term Loans | 1.85 | 1.73 | 6.94% |
d) Return on Equity Ratio | Profit after tax (Attributable to Owners) | 9.00% | 8.00% | 12.50% |
Average Net Worth | ||||
e) Inventory Turnover Ratio | Cost of Goods Sold | 3.44 | 2.17 | 58.53% |
Average Inventories | ||||
f) Trade Receivable Turnover | Total Turnover | 4.33 | 4.33 | 0.00% |
Ratio | Average Trade Receivable | |||
g) Trade Payable Turnover Ratio | Net Purchase | 4.76 | 3.89 | 22.37% |
Average Trade Payable | ||||
h) Net Capital Turnover Ratio | Total Turnover | 7.26 | 6.62 | 9.67% |
Net Working Capital | ||||
i) Net Profit Ratio | Profit After Tax (after exceptional items) Total Turnover | 2.00% | 2.00% | 0.00% |
j) Return on Capital Employed | Net Profit After Tax + Deferred Tax + Finance Cost (-) Other Income Average Capital Employed | 10.00% | 9.00% | 11.11% |
5. Material developments in Human Resources/ Industrial Relations front, including number of people employed
Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. The Company aims to develop the potential of every individual associated with the Company as a part of its business goals. The Company focuses on providing individual development and growth in a work culture that ensures high performance and remains empowering. The Company has employed 297 people (including contractual) strong and dedicated workforce travel abreast of the latest trends.
FOR AND ON BEHALF OF THE BOARD | FOR LATTEYS INDUSTRIES LIMITED |
PLACE: AHMEDABAD | |
DATE: 19 th August 2025 | KAPOOR CHAND GARG |
MANAGING DIRECTOR | |
DIN: 00434621 | |
PAWAN GARG | |
WHOLE TIME DIRECTOR | |
DIN : 00436836 |
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