Mallcom (India) Ltd Management Discussions

Global economic review

Overview

Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably.

The growth in advanced economies remained steady at 1.7% from 2023 to

2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).

On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.

The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook

The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring the various economic uncertainties. (Source: IMF, United Nations)

Indian economic review

Overview

The Indian economy grew at 6.5% in FY 24-25, compared to a revised 9.2% in FY 23-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy.

Indias nominal GDP (at current prices) was H330.68 trillion in FY 24-25 (H301.23 trillion in FY 23-24). The nominal GDP per capita increased from H2,15,936 in FY 23-24 to H2,35,108 in FY 24-25, reflecting the impact of an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 24-25, closing at H85.47 on the last trading day of FY 24-25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar).

Inflationary pressures eased, with CPI inflation averaging 4.63% in FY 24-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY 24-25, was the lowest since the pandemic, catalysing savings creation.

Indias foreign exchange reserves stood at a high of US$676 billion as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualised rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to US$81 billion during the last financial year, the fastest pace of expansion since 2019-20. The increase in the year was despite a contraction during the fourth quarter of 2024-25 when inflows on a gross basis declined 6% to US$17.9 billion due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Growth of the Indian economy

	FY22	FY23	FY24	FY25
Real GDP growth (%)	8.7	7.2	9.2	6.5

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 24-25

	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25
Real GDP growth (%)	6.5	5.6	6.2	7.4

(Source: The Hindu, National Statistics Office)

Indias exports of goods and services reached US$824.9 billion in FY 24-25, up from US$778 billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching US$374.1 billion.

Indias net GST collections increased 8.6%, totalling H19.56 lakh crore in FY 24-25. Gross GST collections in FY 24-25 stood at H22.08 lakh crore, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 24-25. The industrial sector grew by 6.5%, supported by growth in construction activities, electricity, gas, water supply and other utility services. Indias services sector grew at 8.9% in FY 24-25 (9.0% in FY 23-24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY 24-25, compared to 8.6% in FY 23-24. Meanwhile, the construction sector expanded at 9.4% in FY 24-25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY 24-25, with growth at 4.5%, which was lower than 12.3% in FY 23-24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY 24-25, compared to 8.1% in FY 23-24. From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY 24-25, surpassing the previous financial years rate of 5.6%.

The Nifty 50 and SENSEX recorded their weakest annual performances in FY 25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of US$3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties. Total assets managed by the mutual fund (MF) industry jumped 23% or H12.3 lakh crore in fiscal 2025 to settle at H65.7 lakh crore. At close of FY 24-25, the total number of folios had jumped to nearly 23.5 crore, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to H24,113 crore.

Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately US$20 billion by year-end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY 25-26.

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give New Delhi a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. Chinas share of apparel imports into the US was 25%, compared with Indias 3.8%, a large opportunity to address differential (Source: Niti Aayog).

Union Budget FY 24-25: The Union Budget 2025-26 laid a strong foundation for Indias economic trajectory, emphasising agriculture, MSMEs, investment, and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H11.21 lakh crore for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H12 lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 lakh crore in tax savings could boost consumption by H3-3.5 lakh crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 lakh crore. Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritised restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Global personal protective equipment (PPE) industry overview

Emergency response and recovery personnel primarily rely on personal protective equipment (PPE) to safeguard themselves. Items such as safety gloves, helmets and eye or facial shields are essential across a wide spectrum of industries, ranging from manufacturing, healthcare to fire protection, food services, transportation and the oil and gas sector.

Valued at USD 58.64 billion in 2023, the global PPE market is on a steady upward trajectory, expected to climb to USD 128.57 billion by 2032, with a compound annual growth rate (CAGR) of 4.9% from 2024 to 2032. In 2024, North America emerged as the leading region, accounting for 33.69% of the market. The United States, in particular, is set to witness robust growth, with projections indicating a market value of USD 37.98 billion by 2032, driven largely by the countrys expanding infrastructure and construction sectors.

The PPE sector is undergoing a notable evolution, shaped by technological advances, regulatory shifts and changing industrial demands. Developments such as next-generation materials, the rise of smart wearables and the enforcement of more rigorous safety norms are redefining how businesses approach worker protection. In this dynamic environment, timely market intelligence is crucial for companies aiming to stay competitive and tap into emerging opportunities. At its core, PPE plays a critical role in shielding individuals from occupational hazards and promoting safe work environments. Its importance is especially pronounced in high-risk industries like oil and gas, mining, construction and manufacturing, where worker safety is becoming increasingly prioritised.

This heightened focus on employee well-being is expected to bolster demand for PPE products in the coming years. In the Asia Pacific region, sectors such as construction, chemicals, pharmaceuticals and food manufacturing are seeing accelerated growth due to strong public and private investment. This industrial expansion, combined with greater awareness about safety protocols, is likely to fuel continued momentum in the PPE market.

(Source: Grand View Research, Fortune Business Insights, Frost & Sullivan)

Indian personal protective equipment industry overview

The Indian personal protective equipment (PPE) sector has expanded considerably in recent years, driven by a stronger focus on workplace safety and rising concerns over the spread of infectious diseases. The local market includes a wide range of protective gear such as face masks, gloves, gowns, respirators, ear protection and safety eyewear.

The India personal protective equipment (PPE) market was valued at USD 2.7 billion in 2024 and is estimated to reach USD 4.7 billion by 2033, growing at a CAGR of 5.86% during 2025–2033. This market growth is being driven by increased awareness among industry stakeholders regarding employee safety, coupled with the enforcement of stringent safety regulations by government authorities.

The government has played a key role in reinforcing workplace safety through initiatives and regulatory frameworks that require the use of PPE in sectors such as construction, healthcare and manufacturing. At the same time, there is a growing push for industry-specific innovations, with tailored solutions emerging for sectors like mining and agriculture where distinct risks exist. A noticeable trend is the growing preference for personalised and ergonomic PPE, especially in jobs that demand prolonged use. Technological integration is also gaining ground, smart textiles and wearable tech are being embedded into PPE to enhance user comfort and functionality.

Sustainability is another key area of focus, with manufacturers exploring eco-friendly materials and reusable PPE alternatives to align with both environmental concerns and cost-effectiveness. As Indias industries rebound and evolve in the post-pandemic phase, the demand for durable, advanced and regulation-compliant protective gear is expected to remain on a steady rise, reflecting a broader transformation in safety culture.

(Source: Imarc, Market Research Future)

Sectorial growth drivers

Accelerated industrialisation: Indias fast-paced economic development has significantly boosted the need for personal protective equipment (PPE) across various sectors. The manufacturing industry, projected to hit USD 1 trillion by 2025–26, driven by states like Gujarat, Maharashtra and Tamil Nadu, is benefiting from growing investments in automotive, electronics and textiles. Flagship government programs like ‘Make in India and the PLI scheme are attracting foreign investments and expanding industrial infrastructure, creating a strong case for domestic PPE systems to safeguard the workforce.

Expansion in healthcare and pharma: The healthcare and pharmaceutical sectors remain major contributors to PPE demand, especially in the context of ongoing public health preparedness. With a 191% increase since 2014-15, reaching H99,858.56 crore for 2025–26, the Ministry of Health and Family Welfare has emphasised the critical importance of protective gear in medical and frontline settings. This allocation reflects the continued prioritisation of safety and pandemic resilience in these industries.

Strengthened focus on occupational safety: Occupational safety has gained greater visibility across Indian industries, with more companies adopting stricter safety measures and investing in employee training. This cultural shift, supported by labour unions and regulators, has particularly impacted high-risk sectors like construction and manufacturing, where PPE adoption is on the rise as part of broader safety initiatives.

Enhanced focus on workplace safety: India is witnessing rising adherence to safety norms, driven by increased regulatory enforcement, such as the Factories (Amendment) Bill of 2020. Sectors like construction and manufacturing are adopting PPE, including helmets, gloves and safety shoes, at a faster pace, with compliance expected to boost demand by nearly 30% in the coming years.

Industrial and infrastructure expansion: Government-backed initiatives like the National Infrastructure Pipeline, with investments exceeding USD 1.4 trillion, are fuelling construction and industrial activities. This has resulted in a sharp rise in PPE demand, especially for face masks, safety goggles and hearing protection, with the construction sector alone expected to drive a 25% uptick over the next decade.

E-commerce and retail growth: The expansion of logistics and warehousing, spurred by Indias booming e-commerce sector (expected to reach USD 200 billion by 2026), has increased the need for PPE among frontline workers. Major players like Flipkart and Amazon have set higher safety standards, sustaining consistent demand in this segment.

(Source: Ken Research, Market Research Future, Times of India)

Company overview

Mallcom India Ltd, established in 1983, has grown into a leading name in the Indian PPE industry, offering comprehensive full-body safety solutions. With globally certified manufacturing and in-house labs aligned to international standards, it ensures top-tier quality and compliance. Trusted by global buyers for private label production, Mallcom exports to over 50 countries across six continents. Its reputation is built on reliability, ethical practices, and end-to-end safety expertise.

SWOT analysis

Strengths

Legacy of trust: Backed by four decades of industry presence, Mallcom has earned a solid reputation as a trusted name in the PPE space. Leveraging its strong foundation in research, development and manufacturing, the Company has introduced a number of high-quality PPE lines both in India and global markets. Brand equity: Mallcom is widely acknowledged both within India and internationally, having built a loyal clientele and achieving strong brand recognition across diverse markets.

Accreditations and market reputation: Mallcoms presence in global markets is underpinned by its strict adherence to country-specific compliance and quality benchmarks. The Companys commitment to maintaining international standards has earned it a strong reputation as a dependable and certified supplier. For over three decades, Mallcom has held the distinguished ‘3 Star Export House status and is recognised as an authorised R&D organisation. They have consistently maintained a long-term credit rating of ‘A with a stable outlook from ICRA. We not only reflect the Companys operational excellence but also reinforce its competitive edge in the global PPE landscape.

Comprehensive product portfolio: In the PPE industry, buyers increasingly prefer the convenience of sourcing multiple products from a single trusted supplier. Mallcom caters to this need with an extensive, high-quality product mix under one brand umbrella. Its ability to deliver a diverse range of protective gear ensures customer satisfaction and positions the Company as a preferred one-stop solution provider.

Commitment to R&D and innovation: Mallcom continues to invest in strengthening its R&D infrastructure and enhancing its manufacturing capabilities. Focused on innovation, the Company develops products that not only keep pace with shifting market expectations but also comply with evolving global health and safety norms. This adaptability gives Mallcom a competitive edge in the Indian and international markets.

Weakness

Limited brand recall among end users: Despite strong B2B relationships, Mallcoms brand visibility and recall remain relatively low among retail and end consumers, particularly in non-industrial segments.

Dependence on institutional sales: A significant portion of our revenue comes from institutional buyers. This concentration makes the Companys revenue subject to demand fluctuations in specific industries such as construction, mining, oil and gas.

Slower retail expansion: Compared to newer PPE brands that have aggressively entered the D2C and e-commerce space, Mallcoms retail footprint and online presence are still evolving, which may delay market capture in high-growth consumer categories.

Supply chain vulnerabilities: Operating across geographies with a manufacturing-heavy model, the Company remained exposed to global supply chain disruptions, raw material price volatility and geopolitical risks affecting exports.

Innovation gaps in high-tech PPE: While strong in traditional product lines, the Company lags behind some global peers in integrating cutting-edge technologies like IoT-enabled wearables or smart safety gear.

Opportunities

Rising demand driving growth potential: Heightened global attention on workplace safety, hygiene and healthcare has led to a surge in the demand for personal protective equipment. This evolving landscape presents Mallcom with a strong opportunity to scale its international presence and tap into new export markets.

Tapping into developing markets: Indias infrastructure boom and greater awareness of workplace safety protocols are opening up new avenues for growth. Mallcom is strategically placed to meet this rising demand and deepen its reach among a growing customer base in emerging regions.

Blending innovation with practicality: With strong research and development capabilities, Mallcom consistently brings to market products that match shifting safety regulations and user expectations. This seamless integration of innovation and functionality reinforces the Companys leadership in the PPE space.

Unlocking digital opportunities: As consumers increasingly turn to digital platforms for purchasing decisions, Mallcom has the chance to broaden its market reach. By engaging through online channels, the Company can build stronger connections with end users and stay aligned with evolving buying patterns.

Building strategic collaborations: There is significant potential for Mallcom to align with healthcare institutions, corporates and government bodies to promote awareness about the importance of PPE. Such partnerships not only elevate brand credibility but also create sustained demand across sectors.

Threats

Exposure to global economic volatility: As a business with a strong export orientation, Mallcom is naturally influenced by shifts in the global economic environment. Uncertainties arising from geopolitical tensions, evolving trade policies and supply chain disruptions present ongoing challenges that require constant vigilance.

Foreign exchange sensitivity: With a large portion of revenues derived from international markets, fluctuations in currency exchange rates can have a considerable impact on the Companys financial performance. This inherent exposure makes it vulnerable to shifts in global forex dynamics.

Capital investment risks: Over time, Mallcom has committed significant resources to upgrading its infrastructure, launching new production facilities, enhancing product quality and conducting in-depth market research. While these investments have largely been self-funded to manage risk, there remains the possibility that such expenditures could affect profitability if expected returns do not materialise.

Complex regulatory landscape: Navigating stringent compliance requirements such as certifications like FDA or CE, can demand both time and substantial resources. Failure to secure or maintain these approvals could result in penalties, operational setbacks, or even reputational harm.

Reputational vulnerability: Incidents such as product recalls, safety failures, or ethical missteps can undermine the Companys credibility and damage the brand equity built over decades. Any erosion in customer confidence could weaken Mallcoms market position and influence.

Risk management

Competitive landscape pressure

Operating in a rapidly growing PPE market, Mallcom faces strong competition from both organised and unorganised players. As safety awareness continues to rise, the market has become increasingly crowded, potentially impacting pricing power and margins.

Mitigation: Backed by over 40 years of industry presence, Mallcom has cultivated a strong and trustworthy brand identity. The Companys unwavering focus on delivering premium-quality protective gear has helped it retain a loyal client base, with nearly 80% of revenue driven by returning customers.

Environmental and sustainability challenges

In an era where environmental accountability is paramount, Mallcom recognises the growing importance of sustainable practices. Falling short on sustainability expectations could invite stakeholder scrutiny or loss of business opportunities.

Mitigation: The Company is embedding sustainability into its manufacturing approach, adhering strictly to environmental norms, investing in low-impact processes and focusing on eco-conscious product development. It also emphasises transparency and cooperation across its value chain to reduce its ecological footprint.

Pressure on working capital

The business model requires high working capital due to the need to maintain a wide range of inventory and accommodate a stretched receivables cycle. This operational requirement can create liquidity constraints and impact inventory movement.

Mitigation: Mallcom strengthened its working capital efficiency, with its net working capital to operating Income (NWC/OI) decreased to 19.90% in FY 24-25 from 26.64% in FY 23-24.

Policy and compliance exposure

Mallcoms business performance is partially dependent on policy benefits such as export incentives and interest subvention schemes offered by the Government of India. Shifts in these structures or changes in duty frameworks could affect revenue generation.

Mitigation: To stay agile in a changing regulatory environment, the Company has broadened its product mix and actively tracks updates to duty tariffs and export benefits. By maintaining close engagement with government agencies and industry bodies, Mallcom stays ahead of potential disruptions.

Supply chain vulnerabilities

The Companys reliance on external vendors for raw materials and production can lead to challenges such as procurement delays, quality inconsistencies, or sourcing bottlenecks, threatening smooth production and delivery timelines. Mitigation: Mallcom has built a reliable and diversified supplier ecosystem. With proactive risk evaluation and efficient inventory control processes, the Company safeguards its operations against potential supply chain interruptions.

Risk from product accountability

As a manufacturer of safety-critical equipment, Mallcom is exposed to liability risks in the event of product malfunction or performance failure. Such incidents could lead to legal disputes, high settlements and reputational setbacks.

Mitigation: The Company enforces rigorous quality assurance protocols, accompanied by clear usage documentation and safety instructions. It also holds comprehensive product liability insurance to limit financial exposure from potential claims.

Human resources management and industrial relations

At Mallcom, people remain at the core of its progress. The Company considers its workforce a foundational pillar that drives performance and growth. Recognising this, Mallcom has built a workplace culture that promotes continuous learning, mutual respect and shared success.

In recognition of its employee-centric culture and practices, the Company was also awarded the ‘Great Place to Work certification during FY 24-25 - a significant achievement earned on its very first attempt. Throughout its operations, Mallcom maintained a strong commitment to safe and supportive work environments, ensuring all protocols and safety norms are met across units. The Company has consistently introduced proactive measures to uplift its teams—especially during challenging times. Among its notable efforts, a comprehensive vaccination campaign resulted in over 99% coverage across the workforce and their families. This reflects a deep-seated responsibility towards employee wellbeing.

Mallcom also encourages transparent dialogue between leadership and teams, fostering trust and collaboration. Structured consultations and collective bargaining efforts underline the Companys focus on inclusive growth and long-term industrial harmony. With a clear emphasis on safety, development and collaboration, Mallcom continues to invest in building empowered and future-ready teams.

Financial overview

The Company recorded a profit after tax of H5,743.49 lakh during the financial year ended March 31, 2025 as against H3,631.58 lakh during the financial year ended March 31, 2024. The basic and diluted earnings per share were H92.04 for the financial year FY 24-25 as against H58.20 for the financial year FY 23-24.

Highlights of financial performance (H in lakh)

Particulars	Standalone		Consolidated
	FY 24-25	FY 23-24	FY 24-25	FY 23-24
Net sales/Income from operations	47,094.04	40,571.76	48,677.65	42,071.62
Other income from operations	2,872.20	411.82	2,890.62	413.44
Total income from operations	49,966.24	40,983.58	51,568.27	42,485.06
Total expenditure	42,446.37	36,145.85	44,155.95	37,514.90
EBITDA	5,985.11	5,444.87	6,087.26	5,768.64
EBITDA margin (%)	12.71	13.42	12.51	13.71
Depreciation	766.69	630.28	960.39	787.26
Finance cost	570.75	88.68	605.17	424.66
Profit before tax (PBT)	7,519.87	4,837.73	7,412.32	4,970.16
Provision for tax	1,655.37	1,294.43	1,668.83	1,338.58
Profit/Loss after tax (PAT)	5,864.50	3,543.31	5,743.49	3,631.58
PAT margins (%)	12.45	8.73	11.80	8.63

Cash flow analysis (H in lakh)

Particulars	Standalone		Consolidated
	FY 24-25	FY 23-24	FY 24-25	FY 23-24
Sources of cash
Cash generated from operation	1,761.05	1,901.67	1,838.36	1,935.51
Increase in borrowings	2,280.52	130.51	2,310.62	195.15
Sale of investment	2,913.41	1,245.13	2,832.76	1,245.13
Cash flow from investing activities	722.84	408.89	723.29	410.51
Decrease in cash and cash equivalents	-	-	-	-
Total	7,677.82	3,686.2	7,705.03	3,786.3
Use of cash
Net capital expenditure	7,821.17	2,574.84	7,866.77	2,633.17
Financial expenses	570.75	388.68	605.17	424.66

 

Particulars	Standalone		Consolidated
	FY 24-25	FY 23-24	FY 24-25	FY 23-24
Dividend (including dividend tax)	187.20	187.20	187.20	187.20
Direct taxes paid	1,655.37	1,292.65	1,668.83	1,306.77
Purchase of investment	-	-	-
Increase/(Decrease) in non-current investments/	-	-	-
acquisitions
Repayment of borrowings	-	-	-
Increase/(Decrease) in cash and cash equivalents	(2,556.67)	(757.17)	(2,622.43)	(765.51)
Total	7,677.82	3,686.2	7,705.03	3,786.3

Key financial indicators

Particulars	Standalone		Consolidated
	FY 24-25	FY 23-24	FY 24-25	FY 23-24
Debtors turnover ratio (Times)	6.56	6.65	6.47	6.55
Inventory turnover ratio (Times)	4.42	5.15	3.89	4.37
Debt service coverage ratio (Times)	14.18	13.45	13.25	12.70
Current ratio (Times)	1.49	1.70	1.51	1.81
Debt/Equity ratio (Times)	0.38	0.38	0.40	0.39
PAT (%)	12.45	8.73	11.80	8.63
EBITDA (%)	12.71	13.42	12.51	13.71
Return on net worth (%)	20.50	15.66	19.23	15.29

Outlook

The Company is well positioned to leverage the growth opportunities offered by the developments in the infrastructure in the country in the coming years. With the increasing manufacturing capabilities and an inflow of investments, the Company is targeting to achieve a total turnover of H1,000 crore by FY 27-28. In

addition to this, the organisation aims to offer its customers sustainable product offerings in the forthcoming years.

Cautionary statement

The Management Discussion and Analysis may contain forward-looking statements regarding the Companys objectives, expectations, or forecasts, which are subject to applicable laws and regulations. Actual results may vary significantly from those expressed. Key factors influencing the Companys operations include global and domestic supply and demand dynamics impacting finished goods prices, availability and costs of inputs, regulatory changes, tax laws, local economic trends, and other variables like legal disputes and labour relations.

Internal control systems and their adequacy

The Company maintains robust internal control systems that are proportionate to its size and the nature of its business operations. These internal controls are designed to offer reasonable assurance that all operational and financial processes are adequate to protect against any unauthorised use or disposal, and to ensure that all transactions are appropriately authorised, recorded, and reported. Given the current economic downturn, the significance of internal control systems is heightened. Regular monitoring, review, and assessment of these internal controls across various functions are conducted by the Audit Committee. Whenever necessary, corrective actions are promptly initiated. Continuous evaluation is essential to ascertain the effectiveness of the implemented internal control system as intended by the Board of Directors. The Audit Committee engages with the companys Internal Auditors and Statutory Auditors to gather their perspectives on the adequacy of the internal control systems. The committee then informs the management of any significant observations made during these discussions.