Maharashtra Seamless Ltd Management Discussions

The objective of this report is to convey the Managements perspective on the external environment as well as strategy and financial performance during FY 2024-25. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

Global growth has been revised up to 3.0 percent in 2025 and 3.1 percent in 2026, reflecting stronger industry outlook, lower tari rates compared to initial expectations, easier financial conditions, including a weaker US dollar and scal expansion in some jurisdictions. However, trade tensions continue to hurt the the global economy. Global in ation continues to decline, reaching 4.2 percent in 2025 and 3.6 percent in 2026.

Risks to the outlook are leaning towards di cult business conditions. A rebound in effective tari rates could lead to weaker growth. Elevated uncertainty has started weighing more heavily on activity, also as deadlines for additional tari s expire without progress on substantial, permanent agreements. Geopolitical tensions may disrupt global supply chains and push commodity prices up. Larger scal de cits or increased risk aversion could raise long-term interest rates and tighten global financial conditions. Combined with fragmentation concerns, this could reignite volatility in financial markets. On the upside, global growth could be lifted if trade negotiations lead to a predictable framework and to a decline in tari s. Policies are required to bring con dence, predictability, and sustainability by calming tensions, preserving price and financial stability, restoring scal bu ers, and implementing much-needed structural reforms.

World trade volume is revised upward by 0.9% for 2025 and downward by 0.6% for 2026. The surge in trade flows in view of elevated trade policy uncertainty and in anticipation of tighter trade restrictions is expected to fade in the second half of 2025, with the associated payback expected to materialize through 2026. A weaker dollar ampli es the tari shock instead of absorbing it, leading to a positive impact of tari s on the US current account balance, which the expansionary scal stance more than o sets. Over the medium term, expansionary scal packages in economies with current account surpluses are expected to contribute to declining global imbalances.

Global in ation is expected to continue to decline, with headline in ation falling to 4.2 percent in 2025 and 3.6 percent in 2026. This is virtually unchanged with trends of cooling demand and falling energy prices remaining in place. The tari s, acting as a supply shock, are expected to pass through to US consumer prices gradually and hit in ation in the second half of 2025. Elsewhere, the tari s constitute a negative demand shock, lowering in ationary pressures. In ation is projected to remain above the 2 percent target through 2026 in the United States, whereas in the euro area in ationary dynamics are expected to be more subdued, in part on account of currency appreciation and one-o scal measures. Although headline in ation in China is projected to remain broadly unchanged from the forecast in April because domestic energy prices have been lower than forecast then, core in ation is revised upward slightly to 0.5 percent in 2025 and to 0.8 percent in 2026. These revisions reflect recent higher-than-expected growth possibility and reduced tari s.

Indias GDP is expected to grow between 6.5% and 6.7% in FY2026, powered by domestic demand, scal support, and stable in ation. The impact of reciprocal tari s imposed by the United States on Indian GDP is likely to be rangebound. There will be a potential positive impact of tax incentives because the Union Budgets tax stimulus could raise GDP at least by 0.6% to 0.7% this scal. Besides, lower in ation, range-bound global oil prices, lower borrowing rates, and more liquidity (due to the easier monetary policy), and a more certain global environment by the end of the year will help boost sentiment. All of these factors will considerably push domestic consumer spending and investments forward.

Recent data has shown signs of easing in ation. Retail in ation (CPI) decreased to 2.10% in June 2025, reaching its lowest point since January 2019. This decline is primarily due to a favorable base effect and reduced food in ation. The RBI has responded by cutting the repo rate by 50 basis points, bringing it down to 5.50% in June 2025. This move aims to stimulate growth while ensuring in ation remains within the target range of 4% (+/- 2%). Experts anticipate further rate cuts if in ation remains under control.

The Indian economy has demonstrated resilience in the face of geopolitical challenges. It has consolidated its post-Covid recovery with policymakers scal and monetary ensuring economic and financial stability. Continued implementation of various policies such as Amtanirbhar Bharat, Gati Shakti for improved connectivity and the National Monetization Pipeline (NMP) to nance infrastructure creation, will determine the pace of Indias growth story. It will have a multiplier effect on private investments and help India move closer to its target of becoming a developed country by 2047.

Indian seamless steel pipes market size is expected to grow at a CAGR of 5.2% during 2025-2031. The market for seamless steel pipes in India is driven and shaped by many drivers, thereby increasing its influence over the last few decades. These include oil and gas production growth in the country, as most seamless steel pipes are used extensively in oil and gas exploration, its production, and the transportation of oil and gas due to their high strength and resistance to corrosion. The creation of more infrastructure projects, including pipelines and re neries, further raised the demand of the energy sector for seamless steel pipes.

On the other hand, the Indian seamless steel pipes market faced different issues, which hindered both the growth and competitiveness of the market. Major issue was dumping of pipes from China which lead to considerable reduction in sales realisation and created arti cial competition. Prominent drivers of steel pipes and tubes market are the growing demand for oil & gas and increased need for steel pipes worldwide in infrastructure projects. The highest market share and revenue generated by steel pipes industry, based on end use application, is oil & gas sector. Steel pipes play a pivotal role in the transfer of gas and liquid across various applications, with a predominant usage of low alloy or carbon steel pipes. Honourable Prime Minister Narendra Modi has rea rmed that Governments plans to invest actively in oil and gas infrastructure over the next four years. The Government plans to add more districts to the City Gas Distribution Network in next few years and are also working on Har Ghar Jal mission to provide tap water supply to every rural household. India is the 3rd largest global consumer of energy, oil and LPG and the 4th largest LNG importer. Acknowledging the importance of oil and gas segment as a vital sector directly contributing to energy security of the country, the current Government remains committed towards strengthening the oil and gas industry. It has gradually moved towards investor friendly liberalized policies and reforms in the sector. Initiatives to boost demand in domestic E&P sectors includes increased FDI in E&P Projects, NELP & CBM Policies and Freight Subsidy Scheme.

Indias existing pipeline infrastructure falls short of what is required to cater to the upcoming boom in demand from the oil and gas and water segments. The actions and initiatives of the Government bode well for seamless and ERW pipes industry in India, as demand visibility is clear.

( in Crores except EPS)

1. Trade Payable Turnover Due to decrease in creditors

2. Debt Service Coverage Ratio Due to no long-term debt leading to lower interest and higher earnings.

3. Current Ratio Due to increase in current investment.

4. Return on Capital Employed Due to lower operational pro tability.

The Company has a rm belief that human capital is core to development of Company and the Companys philosophy of wider inclusion and participation from employees has resulted in the transformative growth to enable the Company to reach where it is currently. The focus on employee safety was achieved through an agile workforce and development of world class occupational health and safety protocols. As on 31st March 2025, the Company had a total count of 1829 employees.

As per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013, the Company has a Risk Management Framework in place. Risk management in the Company covers the ve components of the Internal Control - Control Environment, Risk Assessment, Control Activities, Information & Communication (ICT) and Monitoring. Accordingly, the operations are structured and it functions with business and process owners acting as first line of defence and management acting as the second line of defence. In addition there is a third party internal audit rm which conducts periodic audit of the various functions as per the Internal Audit plan. Statutory audits are also conducted on periodic basis.

As the Companys products are primarily used in oil and gas sector, demand - supply factors, pricing, economics and sovereign policy on oil and gas affect demand and cost of our products. The Company continuously monitors foreign exchange rates movement and our foreign exchange policies safeguard price escalation risk. The Company hedges foreign currency exposure as and when required.

The Company has a framework in place for Internal Controls over Financial Reporting which complements the size, scale and complexity of business operations and covers all major processes to ensure an effective operating environment. The framework has been designed to provide a robust recording and reporting environment, effectively implement the change management process and with the annual review of the operations and business processes and compliance with statutory, legal, corporate laws and policies it stays relevant. This system is supplemented by internal audit review by management and documented policies, guidelines and procedures. The Company has a well-de ned organisation structure, authority levels, internal rules and guidelines for conducting business transactions. A third party audit rm carries out the internal audit of company operations and reports its nding to the Audit Committee. The Company strives to undertake sustainable measures as necessary in line with its intent to adhere to procedures, guidelines and regulations in a transparent manner. Internal Audit is carried out as per a risk based internal audit plan which is reviewed by the Audit Committee of the Company. The Committee periodically reviews the findings and suggestions for the improvement and is apprised on the implementation status in respect to the actionable items.

The controls, based on the prevailing business conditions and processes have been tested during the year and no reportable material weakness in the design or effectiveness was observed. These have been reviewed by the internal and external auditors. The Company uses an IT system to keep the Internal Financial Control framework robust and our internal IT team governs the IT system. The systems, standard operating procedures, and controls are implemented by the executive leadership team and are reviewed by the internal audit team whose findings and recommendations are placed before the Audit committee.

The strategy of the Company has been realigned to increase focus on pipes and renewable energy segments. Internal accruals are currently being utilised for working capital, capital expenditure requirements and growth opportunities. Two capital expenditure projects at Telangana and Maharashtra will be completed this year which will consolidate our market leadership position further.

The Company is focussing on developing value addition pipe products and improving e ciencies both in production process and in production mix. The Companys in-house product development team has successfully developed various import substitution products such as subsea pipes, cylinder pipes, drill pipes, cold-drawn pipes and premium connections. These products are high margin opportunities both for domestic as well as export markets. High priority has also been given to the addition of new customers in export markets.