Maiden Forgings Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

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

The industry witnessed a mixed trajectory marked by domestic resilience and global volatility. On the domestic front, government-led infrastructure initiatives, including the National Infrastructure Pipeline, PM Gati Shakti, and accelerated investments in railways, roads, and urban housing, drove demand for steel and allied products. The automotive and capital goods sectors also contributed to the revival in steel consumption. The forging industry, as a vital downstream segment, benefited from increased demand in sectors such as defence, agriculture, and railways, resulting in improved capacity utilization and order inflow for quality forged components.

Globally, the steel industry remained affected by declining high material prices, freight costs, and geopolitical instability, particularly the prolonged conflict in Eastern Europe and disruptions in supply chains from key exporting nations. These factors resulted in fluctuations in global steel prices, putting pressure on margins for both integrated and downstream players. However, India continued to maintain a competitive advantage due to its strong domestic market, policy support, and availability of skilled manpower.

The Indian governments push for self-reliance under the Atmanirbhar Bharat Abhiyan and the introduction of Production Linked Incentive (PLI) schemes in the specialty steel sector further encouraged capital investment and product diversification. Environmental sustainability and green steel initiatives also gained traction, with regulatory agencies increasingly advocating for cleaner and more energy-efficient steelmaking processes. The industry is expected to continue its transition towards digitalization, automation, and ESG compliance to remain competitive in a global context.

Your Company is engaged in the business of manufacturing of wide range of Bright Steels bars and Wires which main aim to provide the best quality of its products to its customers and to meet their dynamic demand. Your Company has experience of more than 20 years in the manufacturing of bright steel bars and it has a complete in-house manufacturing facility, including testing, pickling, and annealing, and accordingly, has become a domestic leader in the Industry, offering reliable customized solutions and constant access to new and cutting-edge solutions to its customers domestically and globally.

During the year, Your Company has recognized the need to accelerate its product portfolio and add products which has created a huge opportunity to access the developed nations via export of its products and improve its profitability. Further, after the impact of covid-19 it is being observed that the demand for steel is constantly increasing from the automotive sector and other sectors, which has and will create a tremendous opportunity for the Company.

Moreover, it has been seen that India, the second-largest steel producer globally, has been a key driver of growth for the global steel industry. Indias steel consumption recorded a robust growth of 11.5% in FY 2024-25, the fourth consecutive year of double-digit growth. In the four years ending FY 2024-25, Indias

GDP at constant prices increased 37% while steel consumption grew 60%. Over this period, the elasticity of steel consumption to economic growth (computed as the ratio of growth in steel consumption to growth in real GDP) was recorded at 1.5, compared to an elasticity of 0.8 during the decade before the pandemic. This subsequently establishes an extreme opportunity for your Company.In the amid stresses being witnessed across developed and emerging economies of the world, the India outlook appears fairly encouraging. On the steel consumption and demand front, there is a visible upswing both on account of pent up demand getting released as well as shift in consumption behavior. This, coupled with the significant capital expenditure by the Government of India, rising demand for affordable housing, infrastructure developments and construction projects, has led to a V-shape recovery in demand in most steel markets. Government spending in infrastructure projects such as airports, metro rail projects, highways has been very encouraging and is likely to continue to be key driver in steel demand.

Your Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy, and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks in the operations of the Company.

Your Company is carrying out the business of manufacturing of wide range of bright steel bars and wires and accordingly, there is no segment reporting is required.

During the financial year 2024-2025, Your Company has shown good performance an all aspects as follows:-

Your Company has in place adequate internal financial controls that are commensurate with the size and nature of its operations of Your Company and has been operating satisfactorily. Further, Internal control systems comprise policies and procedures that are designed to ensure the reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, applicable laws and regulations, and that all assets and resources are acquired economically, used efficiently, and adequately protected.

The employees are the backbone and true assets for the success of Company. Your Company on regular basis takes initiatives for their welfare; development, up gradation in their performance in order to build a strong team of talented professionals. Your Company human resources are commensurate with the size, nature and operations of the Company. Further, Your Companys total permanent employee strength as on 31st March 2025 stood at 96 and it continues to maintain open and cordial employee relations with the employees.

Moreover, the establishment of Vigil Mechanism plays an important role as a watchdog via which employees and directors can report their genuine concerns to the management of Your Company.

During the year under review, Return on Net Worth (%) of the Company has decreased by 42.25% due to decrease in PAT and better working capital management.

Statements in this ‘Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans or industry conditions or events are ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results, performance, or achievements could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, competitors pricing, changes in government regulations, tax regimes, and economic conditions within India. The Company assumes no responsibility to publicly update, amend, modify, or revise any forward-looking statements, based on any subsequent development, new information, or future events or otherwise except as required by applicable law.