Manaksia Ltd Management Discussions

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.

World output 3.2 3.3

Advanced economies 1.7 1.7

Emerging and developing economies 4.2 4.4

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of the major economies, 2024

(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 on 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 currently be estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade

restrictions and climate risks. In view of this, the World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring in the various economic uncertainties. (Source: IMF, United Nations)

Overview

The Indian economy grew at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. 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 H 330.68 Trillion in FY 2024-25 ( H 301.23 Trillion in FY 2023-24). The nominal GDP per capita increased from H 2,15,936 in FY 2023-24 to H 2,35,108

in FY 2024-25, reflecting the impact of an economic expansion.

Growth of the Indian economy

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H 85.47 on the last trading day of FY25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018,

rising 2.39% (arising out of a weakening US dollar).

Inflationary pressures eased, with CPI inflation averaging 4.63% in

FY 2024-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in

FY 2024-25, was the lowest since the pandemic, catalysing savings creation.

Indias foreign exchange reserves stood at a high of USD 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 USD 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 USD 17.9 Billion due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Real GDP growth (%) 8.7 7.2 9.2 6.5

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024- 25

Real GDP growth (%) 6.5 5.6 6.2 7.4

(Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross non- performing assets (NPA) for scheduled commercial banks (SCBs) declining

to 2.6% as of September 2024, down from 2.7% in March 2024. The capital- to-risk-weighted assets ratio for SCBs stood at 16.7% as of September 2024, reflecting a strong capital position.

Indias exports of goods and services reached USD 824.9 Billion in

FY 2024-25, up from USD 778 Billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching USD

374.1 Billion.

Indias net GST collections increased 8.6%, totalling H 19.56 Lakh Crore in FY 2024-25. Gross GST collections in FY 2024-25 stood at H 22.08 Lakh Crore, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25. 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 FY25 (9.0% in FY 2023-24), 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 2024-25, compared to 8.6% in FY 2023-24.

Meanwhile, the construction sector expanded at 9.4% in FY 2024-25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY25, with growth at 4.5%, which was lower than 12.3% in FY 2023-24.

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 FY25, compared to 8.1% in FY 2023-24.

The agriculture sector grew at 4.6% in 2024-25 (1.4% in 2023-24). Trade,

hotel, transport, communication and services related to the broadcasting segment were estimated to grow at 6.4% in 2024- 25 (6.3% in 2023-24).

From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY 2024-25, 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 USD 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 H 12.3 Lakh Crore in fiscal 2025 to settle at H 65.7 Lakh Crore. At the close of FY25, the total number of folios had jumped to nearly 23.5 Crore, an all-time peak. During the last fiscal, average monthly systematic investment plan

(SIP) contribution jumped 45% to

H 24,113 Crore.

Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately USD 20 Billion by

year-end. 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. Reserve

Bank of Indias initial estimates have forecasted 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 FY26:

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories,

chemicals, plastics and rubber where the USs 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 the differential (Source: NitiAayog).

Union Budget FY 2025-26: 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 H 11.21 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 H 12 Lakh annually will

be fully exempt from income tax. Economists estimate that the resulting H 1 Lakh Crore in tax savings could boost consumption by H 3-3.5 Lakh Crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H 200 Lakh Crore.

Free trade agreement: In a post- Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to

a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero-duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully duty-free within 10 years.

Pay Commission impact: The 8 th Pay Commissions awards could lead to a significant salary revision for nearly ten Million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7 th Pay Commission more than tripled its monthly salaries, raising the range

from H 7,000 to H 90,000 to H 18,000 to H 12.5 Lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food inflation outlook.

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.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-

26. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.

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)

Nigerias construction sector is witnessing steady growth, fuelled by major investments in transport, energy, housing, and industrial

infrastructure. Strategic partnerships and international collaborations are driving large-scale projects across the country. The construction industry

in Nigeria is on a significant growth trajectory, with an expected annual increase of 8%, reaching Nigerian Naira (NGN) 25.72 Trillion by 2025. The industry has thrived with a CAGR of 12.1% between 2020-2024 and

is projected to continue its ascent

at a CAGR of 6.4% from 2025-2029, culminating in an estimated value of Nigerian Naira (NGN) 35.38 Trillion by the end of 2029.

Growth in the industry will also be driven by increased investments across key infrastructure sectors, including oil and gas, electricity, transport, industry, healthcare, and education.

At the beginning of 2025 FDI stood at 19.35% to USD 250 Million and direct investment (DI) inflows stood at USD

0.25 Billion.

Nigeria has approved a USD 652 Million China Exim Bank funding package for the construction of a road to move goods from a sea port and petroleum refinery on the edge of its main city Lagos to its southern states. The road will be an evacuation

corridor from the Lekki Deep Sea Port, the Dangote Petroleum Refinery - Africas biggest with refining capacity of 650,000 barrels per day - and its adjoining fertiliser plant to at least a dozen southern states.

(Source: Business News Wire, Market research, Reuters, Africaconstructonlaw)

Nigerias metal packaging market is witnessing consistent growth, driven by the rapid expansion of the food and beverage sector, ongoing urbanisation, and rising consumer preference

for durable, sustainable packaging solutions.

The Nigerian packaging market size is worth USD 0.92 Billion in 2025,

growing at an 2.96% CAGR and is expected to hit USD 1.06 Billion by 2030.Increasing investments in

several end-user industries, such as the food processing industry, cosmetics, household care, and others, are driving the packaging industry in Nigeria.

The aerosol packaging market is expected to expand from USD 7.72 Billion in 2025 to USD 11.59 Billion by 2034, growing at a CAGR of 4.62%

during the estimated period from 2025 to 2034.

Growing demand for aerosol packaging is propelling the expansion of the aluminium packaging market. At

the same time, rising preference for recycled products, along with rapid urbanisation and greater mobility, is fueling the need for packaged and frozen foods.

Rising environmental awareness and supportive government initiatives are accelerating the growth of the metal packaging market. Manufacturers

are increasingly opting for lighter, sustainable, and recyclable packaging solutions, further driving demand.

(Source: Mordor Intelligence, Globe News Wire)

Manaksia Limited has a broad	products, including galvanized steel		ferrous alloys, primarily for automotive
operational footprint in Nigeria	coils and sheets, color-coated steel		applications. The Nigerian subsidiary
through its various subsidiaries.	and pre-painted aluminum coils and		has the capacity to manufacture kraft
These entities are involved in the manufacturing of a wide range of	sheets, and metal closures. They also produce paper packaging and non-		paper.
Key ratios
Regional growth (%)		FY25		FY24
EBITDA/turnover (%)	14.00		21.00
Debt-equity ratio (x)	0.04		0.13
Return on net worth (%)	10.00		14.00
Book value per share ( H )	87.31		83.98
Earnings per share ( H )	8.54		11.53
Debtors\u2019 turnover ratio (days)	12.62		7.27
Inventory turnover (days)	52.55		51.24
Interest coverage ratio (x)	9.30		12.93
Current ratio (x)	6.28		4.90
Net profit margin (%)	7.00		10.00
Operating profit margin (%)	7.00		12.00

Currency risk

Manaksia Limiteds strong presence in African markets naturally exposes it to fluctuations in foreign exchange rates. These shifts can influence cost structures, earnings performance, and the Companys ability to service foreign obligations. Such volatility, if

Mitigation: Manaksias diversified product portfolio and wide-ranging consumer demand reduce its sensitivity to political fluctuations. The strong

and consistent appeal of its offerings provides resilience, helping the Company sustain performance even amid policy or governance shifts.

Quality risk

Maintaining product quality throughout the supply chain is crucial, with potential risks of deterioration or damage during transit.

Mitigation: The Company enforces rigorous quality control protocols at

unchecked, could weigh on growth momentum.

every stage of production and logistics.

These measures ensure products

Mitigation: The Company has adopted various strategies to manage both short-term and long-term foreign

Finance risk

Access to cost-effective financing remains critical for capacity expansion and operational continuity. A disruption

consistently retain their integrity and

meet customer expectations upon delivery, reinforcing confidence in the Manaksia brand.

exchange exposures to reduce

the adverse impact on its financial

in funding channels or elevated borrowing costs could restrict growth

performance

Regulatory risk

As a multinational operator, Manaksias activities are shaped by the regulatory environments in which it operates.

Policy shifts or changes in compliance frameworks can introduce uncertainty and affect business operations.

Mitigation: The Company tracks regulatory developments closely, ensuring full compliance with applicable laws and standards.

Proactive engagement with regulators and industry bodies enables

Manaksia to adapt seamlessly to evolving frameworks while sustaining operational efficiency and growth.

Political risk

Nigerias dynamic political and policy environment can at times create uncertainty for businesses, with potential implications for stability and growth.

opportunities.

Mitigation: The Company has prudently strengthened its balance sheet. In FY 2024?€“25, Manaksia improved its debt-equity ratio to 0.04x from 0.13x in FY 2023?€“24, while maintaining an interest cover of 9.30x as of March 31, 2025. This financial prudence enhances flexibility to fund future investments at competitive costs.

Cultural risk

Operating across diverse regions presents challenges linked to cultural, linguistic, and business practice differences, which could impact market relationships.

Mitigation: Manaksia has cultivated trust through long-term partnerships, effectively bridging cultural and linguistic gaps. Around 90% of its importer and customer base has partnered with the Company for over five years, underscoring its ability to build enduring and mutually rewarding relationships.

Competition risk

Nigerias caps and crowns segment has witnessed a steady increase in smaller players serving local beverage brands, intensifying competition.

Mitigation: Drawing on decades of industry expertise, Manaksia

leverages economies of scale, superior technology, and deep consumer insight to maintain its leadership. Its ability to offer reliable, high-quality

solutions at competitive prices ensures continued dominance over fragmented competition.

Opportunities and threats

By offering a diverse product portfolio and maintaining a broad domestic and international footprint, the Company effectively spreads risk and implements appropriate safeguards against potential challenges.

Internal control systems and its adequacy

Manaksias internal control and risk management frameworks are closely aligned with the principles outlined in its corporate governance code.

These systems are deeply integrated into the organisations structure, with coordinated efforts across various levels of personnel to ensure effective execution of responsibilities. The Board of Directors provides overall oversight and guidance, supervising the Executives with support from dedicated monitoring committees.

Human resources

Manaksia Limited regards its workforce as the foundation of its competitive advantage. Drawing on diverse industry backgrounds and specialised technical skills, employees fuel the Companys drive for innovation. Guided by a forward-looking HR philosophy that challenges conventional norms, Manaksia emphasises decisions that foster both professional development and personal fulfilment, promoting work-life balance and nurturing a culture of pride and belonging across the organisation.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements 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 realised by the Company. Actual result could differ materially from those expressed in the statement

or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements on the basis of any subsequent developments.