Mangalam Worldwide Ltd Management Discussions

Financial Performance Highlights (FY 2024–25)

Mangalam Worldwide Limited delivered robust financial growth in the fiscal year 2024–25, laying a strong foundation for future expansion. Key standalone financial metrics include:

• Revenue: Rs.1,066.03 crores, a 29.6% year-on-year increase driven by higher sales volumes and improved product mix.

• EBITDA: Rs.59.11 crore, up 42.3% YoY, with EBITDA margins expanding to 5.54% (from 5.05%) on better operating efficiencies.

• Net Profit: Rs.29.41 crore, growing 46.3% YoY, reflecting enhanced operational performance and cost optimization. Net profit margin improved to 2.76% (vs. 2.44% last year).

• Earnings Per Share: Rs.10.27, up 32% YoY, bolstered by profit growth and a one-time equity infusion by promoters (conversion of warrants) which strengthened the capital base.

This strong performance, significantly outpacing the broader industry demand growth (~8% in India), underscores Mangalam Worldwides ability to capture market opportunities and improve efficiencies. The companys revenue growth (~30%) exceeded the domestic stainless steel consumption growth, indicating market share gains and successful scaling of operations. Profitability improvements were supported by favorable raw material costs and internal cost-control measures, positioning the company for sustained growth in the coming years.

Operational and Strategic Developments

FY 2024–25 was marked by strategic initiatives and operational enhancements aimed at long-term value creation:

• Expanded Product Portfolio: Mangalam Worldwide offers a comprehensive range of stainless steel products under two brands – Mangalam Saarloh (long products: billets, ingots, bright bars, forged bars, etc.) and Mangalam Tubicore (tubular products: seamless pipes and tubes). A focus on value-added products and custom grades helped meet diverse demand in domestic and export markets, contributing to higher realization and customer stickiness.

• Capacity and Infrastructure: The companys integrated manufacturing facilities in Halol, Changodar, and Kapadvanj (Gujarat) have a combined annual capacity of 180,000 MT, with state-of-the-art equipment (induction furnaces with AOD, continuous casting, rolling mills, peeling and polishing machines, pilgering and drawing benches, bright annealing units, etc.). During the year, operational efficiencies improved through debottlenecking and process optimizations, enabling higher throughput. The fully integrated setup (from scrap melting to finished bars/pipes) ensures reliable in-house raw material supply and quality control, enhancing both reliability and flexibility for customers.

• Brand Building and Market Expansion: Mangalam Worldwide continued to invest in marketing and brand presence, enhancing its reputation as a trusted stainless steel supplier globally. The companys legacy of 80+ years and adherence to strict quality (with complete traceability via Mill Test Certificates) have strengthened customer confidence. In FY25, the company expanded its reach in export markets and new domestic regions, capitalizing on its wide product portfolio and credibility. These efforts have positioned Mangalam Worldwide to tap growth in infrastructure, OEM, and international segments in the coming years.

• ESG Initiatives: Sustainability and Governance: In line with its commitment to sustainable growth, Mangalam Worldwide commissioned a 1,200 KWP Rooftop Solar Power Plant at its Kapadvanj unit for captive consumption. This green energy investment will reduce carbon emissions and energy costs, supporting Indias renewable energy goals. The shift to solar power is a key step in the companys ESG journey, complementing ongoing energy-efficiency measures and process optimizations. Mangalam Worldwide prides itself as an "environmentally friendly manufacturer," continuously evaluating energy efficiency initiatives and adopting green energy wherever possible. On the governance and social front, the company maintained high standards of corporate governance and engaged in community development through CSR initiatives. These ESG endeavors not only ensure compliance with regulatory expectations but also enhance long-term stakeholder value.

Looking ahead, Mangalam Worldwide will continue to prioritize operational excellence, including debottlenecking production to meet rising demand, strict quality assurance, and lean cost structures. Strategic focus remains on innovation and value addition – developing new steel grades (including duplex and High Nickel Grades), offering processing services (cut-to-length, forging, machining), and providing end-to-end solutions to customers. With these initiatives, the company is well-prepared to capture growth in FY 2025–26 and beyond, while upholding its sustainability commitments.

Market Environment and Outlook:

Looking ahead, India is set to remain a standout growth economy in FY 2025–26. The Reserve Bank of India (RBI) projects Indias GDP to expand around 6.5% in the coming fiscal year, which would keep India as the worlds fastest-growing major economy. This outlook is underpinned by resilient domestic demand and supportive policies. High-frequency indicators show robust momentum: for instance, Indias manufacturing PMI has remained in the high-50s, indicating strong expansion in factory output and new orders. In the January–March 2025 quarter, GDP surged 7.4% YoY, led by a 10.8% jump in construction and a solid 4.8% rise in manufacturing output. Private consumption and investment are expected to drive growth, bolstered by rising disposable incomes, improving capacity utilization, healthier corporate balance sheets, and the governments sustained infrastructure spending push. The Union Budgets increase in capital expenditure (with public capex reaching ~3.3% of GDP in FY24) is funneling into sectors like roads, railways, and urban development, creating multiplier effects across steel-intensive industries. Additionally, a normal monsoon forecast bodes well for agriculture and rural demand, while the services sector is poised to maintain strong growth on the back of tourism and rising digital consumption.

Key Macroeconomic Forecasts for India (FY 2025–26):

• Real GDP Growth: ~6.5% (RBI estimate) driven by domestic consumption and investment. Risks are "evenly balanced", with global uncertainties (trade tensions, geopolitical risks) being offset by Indias internal growth engines and reforms.

• Inflation: Average CPI inflation is expected around the 4–5% range, within the RBIs target band. Headline inflation cooled to 3.2% in April 2025, a near six-year low, thanks to softer food and fuel prices. This benign inflation outlook has increased purchasing power and created room for accommodative monetary policy.

• Interest Rates: The policy environment is turning growth-friendly – the RBI has begun trimming rates after a period of tightening. Bank lending rates are likely to ease further improving credit availability for businesses and consumers.

Overall, business sentiment in India remains upbeat. Corporate earnings and investment intentions are robust, even though executives note caution on external headwinds. A recent survey showed the majority of Indian companies still expect revenues and profits to rise in the coming months, albeit with a bit more caution than a year ago. This optimism is reflected in strong manufacturing and services PMI readings, indicating that firms are expanding production and payrolls to meet demand. Notably, manufacturers ramped up hiring at record pace in mid-2025, signaling confidence in the future order pipeline. The main challenges to the outlook are external: a global slowdown or adverse developments in the U.S.–China trade war could trim Indias export growth and introduce volatility in commodity markets. However, Indias relatively insulated growth drivers – large domestic consumption and public investment – provide a cushion. Progress on trade agreements (such as new FTAs with key partners like the UK and ongoing talks with the U.S.) may also mitigate external risks by opening new markets.

Implications for the Stainless Steel & Manufacturing Sectors:

The positive domestic outlook augurs well for steel demand. Infrastructure projects, urban housing, and industrial capital expenditure are set to fuel steel and stainless steel consumption. In FY 2024–25, Indias domestic stainless steel consumption was estimated at 4.8 million tonnes, up 8% year-on-year, reflecting strong end-user demand. Industry experts (ISSDA) project this demand will continue growing ~7–8% annually over the next few years, outpacing global growth, as India undergoes rapid urbanization and asset creation. Key sectors driving this surge include railways (e.g. dedicated freight corridors, high-speed rail), construction (smart cities, metro projects), power and renewable energy, and emerging areas like green hydrogen which uses stainless steel in electrolysers and storage tanks. For Indian manufacturers, the domestic order pipeline is strong: government initiatives like the Production-Linked Incentive (PLI) schemes and Make-in-India are boosting industrial production in electronics, automotive (including electric vehicles), defense, and other segments, all of which are steel-intensive.

For Mangalam Worldwide, Indias favorable economic climate provides a tailwind. Healthy growth in construction and infrastructure translates into greater demand for long products like stainless billets and rebars, while a thriving automotive and engineering sector supports demand for forged and bright bars. The companys broad product mix is aligned with these opportunities – for instance, increased manufacturing of EVs and Metro coaches raises demand for high-quality stainless bars and tubular products that Mangalam Worldwide supplies. With inflation under control and interest rates easing, consumer and business confidence in India should remain solid, supporting orders for steel products. Mangalam Worldwides strategic focus on the domestic market – which accounted for significant volume growth last year – means it can capitalize on Indias high growth/high spend environment. In summary, Indias outlook for FY 2025–26 is strongly positive, building a conducive setting for Mangalam Worldwides continued growth.

Indian Monetary Policy Overview and Impact on Business Conditions:

During FY 2024–25, Indias monetary policy pivoted from an anti-inflationary stance to a more accommodative orientation, a shift that will significantly influence business conditions in FY 2025–26. Inflation dynamics have been the driving factor: after peaking above 7% in 2022 due to supply shocks, consumer price inflation steadily moderated to 3.2% by April 2025 – the lowest level in nearly six years and below the RBIs 4% target. This decisive cooling of price pressures, aided by stable food prices and fuel tax cuts, gave the RBI room to support growth. Accordingly, the RBIs Monetary Policy Committee halted its rate hike cycle (after raising the repo rate from 4.0% to 6.5% between May 2022 and Feb 2023) and maintained a pause for most of 2024. By early 2025, with inflation well-tamed and external growth risks rising, the RBI changed course to rate cuts. In a series of moves by RBI during calender 2025 aimed at stimulating the economy, the repo rate was reduced from 6.5% to 5.5% by June 2025. In the June policy meeting, the RBI even delivered a larger 50 bps cut (bringing repo to 5.50%) and also lowered the Cash Reserve Ratio, signaling a strong easing bias. The central banks message is clear – with CPI inflation expected to stay within the 4?2% band, it is prioritizing reinvigorating growth and credit flow.

This monetary easing has several important impacts on general business conditions in India:

• Lower Cost of Capital: A cumulative 75+ bps reduction in the repo rate in 2025 has started to transmit into cheaper financing for borrowers. Banks have begun trimming lending rates (for both working capital and long-term loans). For businesses, especially in manufacturing, this means reduced interest expenses on existing debt and improved viability for new expansion projects. Companies that postponed capex due to high borrowing costs may revive those plans as credit becomes more affordable. Likewise, consumers benefit via lower EMIs on home and auto loans, which can stimulate demand for automobiles, housing, and appliances – sectors that directly consume steel and stainless steel. In short, easier credit conditions generally boost investment and consumption, creating a more favorable environment for growth.

• Improved Liquidity and Financial Stability: Alongside rate cuts, the RBIs measures (such as CRR reduction and open market operations) are augmenting system liquidity. Ample liquidity ensures that productive sectors have access to funds. It also helps keep corporate borrowing spreads in check. From a business perspective, smoother access to credit lines and trade finance reduces cashflow stress, which is particularly beneficial for small and mid-sized manufacturers and suppliers.

• Business Confidence: The RBIs pro-growth stance has sent a positive signal to the market. It indicates that policymakers will backstop the economy against downside risks. This has helped uplift business confidence indices. Equity markets and corporate bond markets have also responded by stabilizing, which improves wealth and lowers funding costs. Anecdotally, industrial firms are now more confident in planning capacity additions, knowing that interest rates are unlikely to spike and derail demand. The central banks assurance to maintain an "accommodative as long as necessary" approach – so long as inflation remains in check – provides greater predictability for business planning in FY 2025–26.

Specific repercussions for the stainless steel and manufacturing sector: Mangalam Worldwide and other manufacturing industries stand to gain in multiple ways from the softer monetary policy.

Financing of expansion: Mangalam Worldwide has been in growth mode (expanding capacity, investing in efficiency improvements), and lower interest rates directly reduce the cost of financing these projects, improving their return on investment.

Working capital: Steel manufacturing is working-capital intensive (to purchase raw materials like scrap, maintain inventories, etc.). Cheaper bank credit eases working capital financing, which can support smoother operations and potentially better negotiating power on input procurement (e.g., buying raw materials in bulk when prices are attractive).

Customer demand: Many stainless steel products end up in interest-sensitive sectors – for example, architecture and real estate (building demand rises with lower mortgage rates), automobiles (car sales are boosted by lower auto loan rates), and capital goods (companies invest more when financing costs fall). Thus, the RBIs rate cuts, by bolstering these downstream sectors, have a positive second-order effect on steel demand.

It is also noteworthy that low inflation and monetary stability contribute to a stable rupee exchange rate and input cost environment. For an importer of raw materials and exporter of finished goods like Mangalam Worldwide, currency stability and moderate inflation help in planning production and pricing with fewer shocks. Stable energy and transport costs (a by-product of controlled inflation) additionally support manufacturing margins.

Going forward, if inflation remains benign, the RBI is expected to continue an accommodative bias – markets anticipate possible further mild rate cuts later in 2025. This would further entrench the pro-growth monetary setting. Of course, the RBI will stay vigilant: any flare-up in inflation (perhaps due to oil prices or an erratic monsoon) could pause the easing cycle. Additionally, global financial developments could influence RBIs room to maneuver. Nonetheless, as

FY 2025–26 begins, Indias monetary policy stance is unequivocally supportive of growth. This supportive backdrop, combined with prudent fiscal management, creates a conducive financial climate for Mangalam Worldwide and its peers to execute their business plans – be it raising capital for expansion or capitalizing on improved client demand – thereby fostering a positive outlook for the companys operations in the year ahead.

Global Stainless Steel Industry Outlook

Global Demand & Production: The stainless steel industry globally is on an upswing, supported by broad-based economic growth and a resurgence of industrial activity. Global stainless steel melt production reached ~62.6 million tonnes in 2024, a robust 7% increase over the previous year. This growth was led by Asia – particularly China – and a recovery in the U.S., even as Europe saw a modest uptick. China remains the dominant producer, accounting for ~39.4 Mt (about 63% of global output) in 2024. Other regions like Asia (ex-China) and "Other countries" (including Indonesia, South Korea, Russia, etc.) also registered healthy growth (~6–9% YoY) as they ramped up capacity. Global consumption of stainless steel has kept pace, driven by the post-pandemic economic rebound and mega-trends like urbanization and clean energy. Notably, the world stainless steel market size was estimated around USD 126.4 billion in 2024, and is projected to grow at ~6.7% CAGR to reach nearly USD 197 billion by 2030 – underscoring strong long-term demand fundamentals.

Key End-Use Sectors: Across the globe, stainless steels unique properties (corrosion resistance, strength, and recyclability) make it indispensable in multiple sectors. The construction and infrastructure industry is a major consumer – for structural components, architectural facades, bridges, and rebar in high-corrosion environments. With a global construction market expected to reach $1.42 trillion by 2027 (17%+ CAGR) and an emphasis on "green construction," stainless steel demand is set to expand. Modern green building standards (LEED, BREEAM) favor stainless steel for its durability and recyclable nature, boosting usage in commercial projects. The automotive and transportation sector is another growth driver – stainless steel is used in exhaust systems, engine and transmission components, structural parts, and increasingly in electric vehicle (EV) battery and hydrogen fuel cell systems. As global auto production recovers from recent supply chain shocks, stainless steel round bars and precision components for vehicles are seeing rising orders. Energy and petrochemicals represent a crucial demand segment: oil & gas exploration (especially offshore) and refining require stainless pipes, tubes, and fittings that can withstand high pressure and corrosive media. Additionally, the transition to renewable energy is creating new avenues – e.g. wind turbines, solar panel frames, and the burgeoning hydrogen economy (for electrolyzers, fuel cells, and hydrogen storage) all utilize specialty stainless steels. The consumer goods and appliances segment remains robust as well, accounting for an estimated 37% of stainless demand (for kitchenware, appliances, electronics casings, etc.) in 2023. This diversified usage across sectors insulates overall stainless steel demand and provides multiple engines of growth moving into 2025–26.

Global Product Trends: Flat vs Long Products: In 2023, flat-rolled stainless products (sheets, coils, plates) made up ~73% of global revenue share, owing to their wide application in industrial equipment, process plants, and construction. Long products (such as bars, rods, wire, and sections) comprise the balance, serving critical uses in automotive, defense, shipbuilding, capital machinery, and fabrication industries. For example, stainless steel round bars are vital in making fasteners, shafts, valves, and machine parts due to their machinability and high strength; theyre even used in infrastructure (reinforcement, grillwork) due to aesthetic appeal and longevity. The global stainless steel bars & shapes market was valued at roughly USD 23 billion in 2024, and is forecast to reach ~USD 36.2 billion by 2034, growing ~4.5% annually. This steady growth is underpinned by rising requirements in construction (rebar and structural sections), industrial machinery, and the aerospace sector (which uses stainless bars for high-stress components). A notable trend is the increasing demand for high-grade industrial bars – e.g., duplex and aerospace-grade stainless – prompting manufacturers worldwide to invest in advanced rolling, heat treatment, and surface finishing to produce higher value-added bars.

Global Stainless Pipe & Tube Market:

Stainless steel pipes and tubes form the backbone of fluid transport in harsh environments and continue to exhibit moderate to strong growth globally. As of mid-2025, the global stainless pipe market is projected to expand from ~$38 billion in 2024 to over $41 billion in 2025, reflecting robust ~7–8% growth driven by energy, infrastructure, and industrial sectors. Key end-uses include oil & gas pipelines, petrochemical refineries, LNG terminals, water supply systems, power plants, and process industries. With the acceleration of wind energy farms, hydrogen infrastructure (electrolyzers, fuel pipelines), and even semiconductor fabs, the need for corrosion-resistant, high-pressure stainless seamless and welded pipes has surged. For instance, global investments in LNG and hydrogen projects are boosting demand for austenitic stainless pipes that can handle cryogenic and high-purity conditions. Regionally, Asia-Pacific (especially China and India) is leading growth: massive infrastructure builds and industrialization have caused a spike in orders for industrial-grade stainless pipes/tubes in these markets. Technological advancements in pipe manufacturing – e.g., laser welding, automated ultrasonic testing, and digital supply chain tracking – are improving pipe quality and delivery, which in turn encourages more adoption in critical applications. Notably, nickel price trends (a key stainless input) remain a watch factor: after a spike in recent years, nickel prices have stabilized or slightly softened in early 2025, easing some cost pressures. However, supply constraints (like Indonesias nickel ore export policies) and geopolitical factors could influence stainless production costs globally. Overall, the outlook for stainless steel pipes and tubes is positive, supported by global climate initiatives (which demand stainless for clean energy systems) and replacement of aging infrastructure in developed markets.

Indian Stainless Steel Industry Outlook

Demand and Consumption: Indias stainless steel market continues to be one of the fastest-growing in the world. In FY 2024–25, Indias stainless steel consumption reached approximately 4.8 million tonnes, reflecting about 8% year-on-year growth. This solid uptick is a clear signal of Indias strong industrial momentum, underpinned by economic growth and an infrastructure boom. India is currently the second-largest consumer of stainless steel globally and its production ("melt") ranks third (trailing only China and Indonesia). Whats notable is Indias low base – per capita stainless steel consumption is only ~3.4 kg, versus the global average of 6+ kg – indicating vast untapped potential as the country urbanizes and industrializes further. The Indian Stainless Steel Development Association (ISSDA) projects domestic stainless demand to grow by 7–8% annually over the next 2–3 years. This outlook is supported by Indias status as the worlds fastest-growing major economy (expected to remain so in 2025), which translates into robust requirements for steel in general and stainless in particular. Government infrastructure spending is a key catalyst: capital expenditure has risen to ~3.3% of GDP in FY24, and marquee projects in railways, urban metros, ports, airports, highways, and smart cities are all stainless-intensive (for example, use of stainless rebars, railway coach bodies, bridges, piping for water and sewage, etc.). The construction sector in India – projected to reach USD 1.4 trillion by 2027 – offers massive scope for stainless use, from durable roofing and cladding to plumbing and structural applications. Additionally, the push for new energy (like green hydrogen and solar) and manufacturing (Make in India, defence production) will contribute to rising stainless steel consumption in specialized applications.

Domestic Production & Capacity: On the supply side, India has been ramping up its stainless steel production capacity. As of 2022, installed stainless melting capacity was around 6.6–6.8 million tonnes annually. Ambitious expansion plans aim to grow this to ~9.3–9.5 MT by 2030 and further to ~12.5 MT by 2040. This will significantly boost domestic output and potentially make India more self-sufficient in meeting its stainless demand. Indias vision to become a $5 trillion economy by 2027 (and $40 trillion by 2047) with manufacturing and infrastructure as pillars suggests sustained growth in stainless steel usage. By 2030, Indias per capita stainless consumption is expected to more than double (to ~6.6–6.8 kg), implying that domestic production will need to keep pace through continuous capacity addition and technology upgrades.

Uses of Stainless Steel in India (by Product): The application profile of stainless steel in India mirrors global patterns but with some local distinctions:

• Stainless Steel Ingots & Billets: These primary cast forms are largely used as intermediate stock for downstream rolling and forging. In India, ingots and continuously cast billets (produced by companies like Mangalam Worldwide) feed the production of bars, wire rods, and seamless tube hollows. Demand for stainless billets is tied to the health of forging industry and re-rollers, which serve sectors like automotive (forged auto parts), defence, and industrial machinery. With auto and capital goods manufacturing picking up, billet demand has been healthy. Additionally, India exports some stainless billets to other countries in the region.

• Stainless Steel Bars (Bright Bars and Round Bars): India has a strong market for stainless long products, particularly bars. Bright bars (cold finished bars with a smooth surface and precise dimensions) are in high demand for engineering applications – from automotive components (shafts, axles, fasteners) to industrial equipment, food processing machinery, and construction (e.g., architectural fittings). The versatility and corrosion resistance of stainless bright bars make them a preferred choice in these areas. Indias stainless steel round bar segment serves both domestic consumption and exports (to markets like Europe for machinery parts). The global outlook for stainless bars is positive (projected market size ~$28–29 billion by 2030) and India is poised to benefit as a cost-competitive producer. Domestically, the governments emphasis on defense and aerospace manufacturing is opening new avenues for specialty stainless bars (e.g., for missiles, aircraft components

• Stainless Steel Pipes & Tubes: This is a high-growth segment in India, driven by multiple end-user industries. Stainless pipes and tubes are extensively used in oil & gas refineries, petrochemical plants, power generation (including nuclear), fertilizer and chemical factories, water treatment and distribution, as well as urban plumbing and firefighting systems. The Indian market for stainless pipes and tubes is projected to reach USD 2.4 billion in 2025, growing at a rapid CAGR of ~8.9% during 2025–2031. Domestic production volume of stainless pipes/ tubes is estimated around 1.21 million tonnes in 2025, up from ~0.93 MT a decade earlier, reflecting both capacity additions and demand growth. Key drivers in India include the expansion of city gas distribution (requiring stainless pipelines for CNG/LNG), modernization of railways (stainless water pipes and pantry equipment in trains), and water infrastructure (stainless steel is increasingly used in potable water pipelines and sewage treatment due to its longevity and low maintenance). The automotive sector in India also uses stainless tubes for exhaust systems and motor parts – with stricter emission norms (BS VI) and longer warranties, automakers are shifting to stainless exhaust pipes for durability. Moreover, industries like pharmaceuticals and food processing demand stainless steel tubing for hygienic fluid transport. Indian manufacturers of pipes/tubes (including Mangalam Worldwide) are capitalizing on this demand, and some have developed expertise in high-end segments like seamless instrumentation tubes and heat-exchanger tubes. India has seen an influx of imported stainless steel tubes, which pressures local producers margins. To counter this, the government has initiated quality control orders and is considering tariff measures to curb sub-standard imports. The outlook for Indian stainless pipes/tubes remains very optimistic, thanks to heavy infrastructure spending (e.g., the Jal Jeevan Mission for water pipelines, new refinery projects, and renewable energy installations that all use stainless piping). Local companies are also exploring export opportunities, as Indian stainless tubes meet global standards and can be cost-competitive.

Outlook and Strategy for FY 2025–26

Mangalam Worldwide Limited is a Fully Integrated Stainless Steel Mill and approaches FY 2025–26 with optimism and a clear strategic roadmap. With its fully integrated infrastructure Mangalam Worldwide is uniquely positioned to serve customers with agility and consistency.

The confluence of strong domestic demand, favorable industry trends, and the companys internal strengths is expected to drive another year of growth. Market outlook for Mangalam Worldwides product segments is robust: the domestic stainless consumption is projected to climb at high single digits, and global demand remains firm across key sectors. The companys broad product mix – from basic billets to high-precision bright bars and tubes – positions it to cater to multiple end-user industries and diversify revenue streams. Forward-looking, Mangalam Worldwide plans to leverage its recent capacity enhancements and process improvements to capitalize on the infrastructure boom in India, servicing large projects in rail, roads, and urban development with quality stainless inputs. Simultaneously, the company will pursue export market expansion in regions like the Middle East, Europe, and North America, where demand for reliable stainless suppliers is growing (especially as some Western clients seek to diversify supply chains away from China).

On the operational front, the focus will be on achieving higher asset utilization and economies of scale. With the new 1.2 MW solar plant operational, Mangalam Worldwide expects reduced energy costs and improved cost stability, giving it a competitive edge in manufacturing. Further investments in debottlenecking the production lines, automation, and training of the workforce are planned to sustain the high quality and consistency of output. The company is also cognizant of raw material volatility (nickel, chromium prices) and is strengthening its procurement to secure critical materials and hedge price risks. A prudent financial strategy remains in place: despite growth ambitions, Mangalam Worldwide will maintain a stable balance sheet, moderate debt levels, and efficient working capital management to navigate any market fluctuations.

In terms of industry positioning, Mangalam Worldwide aims to consolidate its position as a leading stainless steel player in India. The companys growth rates in recent years have outperformed the industry average, and it plans to maintain this momentum. Peer benchmarking indicates that there is ample room in the growing market for agile players like Mangalam Worldwide to thrive by focusing on niche products and superior customer service. Mangalam Worldwide will deepen its presence in long products and specialized tubular segments, carving out a resilient market share. The company also fosters long-term partnerships with customers, emphasizing customized solutions, timely delivery, and technical support – a strategy that drives repeat business and client loyalty.

Risks and Mitigation: The management remains vigilant about potential challenges in FY 2025–26. Global economic uncertainties (inflation, interest rate movements in key economies) and geopolitical tensions could indirectly impact stainless steel demand or input costs. To mitigate this, Mangalam Worldwides diversified market exposure (domestic and export, multiple industries) acts as a natural hedge. The threat of continued high imports is being addressed at an industry level through government policy – any positive move on tariffs or trade remedies would be upside for domestic producers. Internally, the companys risk management framework is geared to ensure raw material supply continuity and to maintain financial liquidity even under adverse scenarios.

In summary, Mangalam Worldwide is entering the new fiscal year with a forward-looking growth agenda. The company will build on the solid foundation of FY25 by executing its strategy of market expansion, product innovation, operational efficiency, and sustainability focus. Given the strong tailwinds in stainless steel demand (both globally and in India) and the companys preparedness, the management is confident of delivering another year of robust performance. Mangalam Worldwide remains committed to creating long-term shareholder value by aligning its business goals with market opportunities and responsible business practices. With prudent management and favorable industry dynamics, the outlook for 2025–26 is one of sustainable growth and strengthened market leadership.

z Plants Location:

Sr.No.	Plant	Location
1	Unit - I - Halol (Steel Melting Shop)	Plot No. 2348 bearing Survey No. 219 paiki, Chandrapura Taluka, Halol, Dist: Panchmahal, Gujarat.
2.	Unit - II - Changodar (Rolling Mill)	Sub Plot No. 3, "Panchratna Industrial Estate" Survey/ Block No. 375/P, Changodar, Tal: Sanand, Dist: Ahmedabad, Gujarat.
3.	Unit - III - Kapadvanj (Bright Bars) Unit- IV- Kapadvanj (Seamless Pipes & Tubes)	South Side Amalgamated Survey No. 1025/3, Modasa Road, Kapadvanj, Gujarat.

FINANCIAL POSITION AND RESULTS OF OPERATIONS:

Our Company has robust growth and improvement in top line and bottom line on Standalone basis in the Current and previous financial years which is explained below:

(Rs. in Lakhs)

PARTICULARS	STANDALONE - FINANCIAL STATEMENTS-YEAR ENDED		CONSOLIDATED - FINANCIAL STATEMENTS-YEAR ENDED
	31st March, 2025	31st March, 2024	31st March, 2025	31st March, 2024
Revenue From Operations	1,06,070.94	81,810.80	1,06,070.94	81,810.80
Other Income	532.25	436.14	532.43	436.28
Total Revenue	1,06,603.19	82,246.94	1,06,603.37	82,247.08
Earnings Before Interest, Depreciation and	5,910.9	4,153.33	6005.49	4,251.85
Amortization Expense and Taxes
Less:- A) Finance Cost	2,378.60	1,480.71	2,378.86	1,481.06
Less:- B) Depreciation and Amortization Expense	776.10	640.22	860.96	725.09
Profit / (Loss) before Exceptional Items / Extra-	2,756.20	2,032.40	2,765.67	2,045.70
Ordinary Items and tax
Add/(Less): Exceptional Items/ Extra-Ordinary Items	185.50	-	185.50	-
Profit / (Loss) after Extra Ordinary Items and before tax	2,941.70	2,032.40	2,951.17	2,045.70
Less: Tax Expense:
A) Current Income Tax	1.08	2.07	1.08	2.07
B) Deferred Tax (Assets)/Liabilities	(0.86)	20.00	(2.46)	(254.02)
Profit / (Loss) After Tax	2,941.48	2,010.33	2,952.55	2,297.65

Note:

1. Previous year figures have been regrouped / re-arranged wherever necessary.

During the year under review, the revenue from operation was increased by 29.65%.

During the year under review, the Standalone Total Revenue of your Company is increased to Rs. 1,06,603.19 Lakhs for the financial year 2024-25 from Rs. 82,246.94 Lakhs for the previous financial year 2023-24. Further, the Company has earned a Standalone Profit Before Tax (PBT) of Rs. 2941.70 Lakhs and Standalone Profit After Tax (PAT) of Rs. 2941.48 Lakhs during financial year 2024-25 as compared to Standalone Profit Before Tax (PBT) of Rs. 2032.40 Lakhs and Standalone Profit After Tax (PAT) of Rs. 2010.33 Lakhs, respectively, in the previous financial year 2023-24.

The Company is engaged in steel manufacturing activities and it is operating in a single business / geographical segment.

FACTORS AFFECTING FUTURE RESULTS OF OPERATIONS:

Our Companys future results of operations could be affected potentially by the following factors:

• Political Stability of the Country.

• World Economy stability.

• Competition from existing players;

• Disruption in supply of Raw Materials and Labour Supply at site.

• Occurrence of Environmental Problems & Uninsured Losses.

• Ability to expand the geographical area of operation.

• Government policy and regulations towards Steel Sector.

• Change in demand and supply of products.

• Transportation cost for procuring raw materials and supply of finish products.

SWOT ANALYSIS: Strength

• The management of the Company has successfully scaled up the business over past few years.

• Long-term trust-based relationships with customers for expansion.

• Measures for cost-effective production and timely order fulfillment.

• Adaptable to diverse industry segments and efficient procurement capabilities.

• Ability to use in-house manufactured stainless steel products for reduced costs.

• The Company is fully integrated stainless steel manufacturing company with in-house Melting plant, Rolling Mill, Bright Bar manufacturing and seamless & welded pipes manufacturing facility. With its end to end manufacturing prowess, the company provides complete range of products to its customers ranging from Billets, Ingots, Bright bars to Pipes & Tubes.

• Maintaining highest standard of governance helps us to boost the confidence of all the stakeholders.

Weakness

• The prices of the raw material are fluctuating in nature so the Company should keep an eye on the prices and pass on the price change to the customers.

• The Company may have to offer discounts and compete with existing players in the initial period of operations to scale up the volumes.

• All Units are significantly dependent on external power from grid as it doesnt have a captive power plant of its own.

Opportunity

• The automotive industry is forecasted to reach US$ 260-300 billion by 2026. The industry accounts for around 10 per cent of the demand for steel in India. With increasing capacity addition in the automotive industry, demand for SS is expected to be robust.

• Government infrastructure programs (water pipelines, rail, metro, green energy) and industrial policies (Make in India, defense manufacturing) are driving demand for high-grade stainless long products

• Rising automotive, aerospace and engineering activity bodes well for Mangalam Worldwides bright bars and specialty tubes

• The company can further capitalize on global trends – Western buyers are diversifying supply away from China, creating export opportunities in Europe, Middle East and North America

• Steel and steel products have its uses across multiple industries – shipbuilding, automotive, pharmaceutical, aviation, real estate, energy, home appliances, electronics etc.

• Technology has made buying and selling of steel and steel products easier today. Buyers can buy steel online through reliable steel marketplaces and online websites, in a secure, transparent, and quick manner.

• Various Government initiatives like Production Linked Incentive, National Steel Policy (NSP) 2017, etc. targeting development in steel sector pose a unique opportunity for the Company.

Threats

• Any change in Government Polices that may affect the industry performance

• Capital intensive industry with fluctuating raw material and finished goods prices. The input prices and the finished goods prices always move in tandem and thereby, any change in input costs would be transferred to finished products.

• Economic recession/downturn in the country as well as globally may affect the industry as a whole.

• Prospects of steel industry are strongly co-related to economic cycles. Demand for steel is sensitive to trends of particular industries, viz. automotive, construction, infrastructure, and consumer durables, which are the key consumers of steel products. These key user industries in turn depend on various macroeconomic factors, such as consumer confidence, employment rates, interest rates and inflation rates, etc. in the economies in which they sell their products.

• The steel Industry is likely to be subjected to stringent environmental regulations at any point of time.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has robust internal control system and procedures compatible with size and operations. The company has well defined internal control system and policies. The Internal Audit of the Company is done by internal auditor who is professionally qualified accountants and internal control system is monitored by IT executives. Some elements of the Companys internal control system:

• Preparation and supervision of annual budgets for all operating and service functions

• Making Standard Operating Procedures and guidelines and ensure compliance with same.

• Scope of internal audit and the frequency of audit being decided every year to ensure sufficient coverage of different areas and functions over a reasonable period.

• The audit plan is discussed and approved in Audit Committee

• Internal Audit is conducted regularly during the year and Internal Audit Report is being submitted to audit committee for their review and also for future improvements in the system across the organization.

• The Company is also having well defined delegation of power with authority limits for approving revenue and capex expenditures including approval of non-routine and abnormal items.

• Also, External Auditor is also performing independent testing of Internal Finance Controls over financial reporting which is line with regulatory reporting requirements.

• Internal Auditor is also checking the Internal Financial Controls as part of their Audit scope

The Audit Committee of the Board of Directors comprises of maximum number of independent Directors, which quarterly reviews the audit plans, significant audit findings, adequacy of internal controls system, compliance with Accounting Standards etc.

ENVIRONMENT SAFETY, HEALTH AND ENERGY CONSERVATION:

The Company is steadfast in commitment to environmental stewardship and sustainability. Despite the challenges posed by external factors, we have remained resolute in our mission to minimize our environmental impact and contribute positively to the planet.

The Company had successfully installed and commissioned 1200 KWp Rooftop Solar Power Plant at the Companys unit situated at Kapadwanj, District - Kheda, Gujarat to generate electricity for Captive Consumption, which shall significantly boost our renewable energy production and contributing to our sustainability goals. The Company is committed to sustainable practices and reducing its environmental footprint through this project. There will be reduction in carbon emissions resulting into positive environmental impact and lower energy costs with increase in energy independence. It shall also have positive impact on the local community and the environment and also contribute to renewable energy targets of the country.

Ensuring the safety and health of employees at the workplace remains a paramount focus for the Company. The aim is to maintain the higher standards of safety across factories and workplaces; and ensure that latest best practices are implemented across the business to bring operational efficiencies and save energy.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company considers employees as its vital and most valuable assets. Your Company considers manpower as its assets and understands that people have been driving force for growth and expansion of the Company.

As of March 31, 2025, there are 370 permanent employees on the rolls, diligently working and dedicated to the companys goals. Through our Learning and Development initiatives, the Company continues to upskill and reskill our employees for their jobs. The Company is into process of continuous improvements based on feedback and inputs from multiple stakeholders, past experiences and industrys best practices (Recruitment and Selection, Leave & Attendance Management) for giving better employee experiences. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

INVESTOR RELATIONS AND ENGAGEMENT:

Investor Relations (IR) is playing an increasingly important role in todays volatile world in enabling companies to manage investor expectations. The objectives of Companys investor relations activities are to boost confidence and develop a long-term relationship of trust with stakeholders including Shareholders, Investors & Analysts, through true and fair disclosure of information/explanation, and bilateral communication.

To pursue these objectives at all times, the Company continuously discloses necessary information and conducts various investor relations activities. Engaging closely with the investor community helps the Company to gain investor confidence, thereby enabling it to drive maximum value out of the IR programme. The Company publishes Investor presentation and the required disclosures are shared with the Stock exchange as well as hosted on the website of your Company for Investor Relations and Engagement:

STAKEHOLDER ENGAGEMENT:

The Companys endeavour is to maintain regular engagement with all its stakeholders to ensure that their concerns are addressed and expectations are met. Dynamic processes are in place within the Company to ensure integration of feedback from various stakeholders such as suppliers, customers, employees, and investors on a routine basis. By trusting employees, partnering with suppliers and dealers, and engaging with local communities, we work towards serving and delighting our customers.

KEY FINANCIAL RATIOS:

Sr. No.		Numerator	Denominator	As at 31st March, 2025	As at 31st March, 2024	% Change	Reason for variance
1	Current Ratio (In Times)	Current Assets	Current Liabilities	1.42	1.44	(1.39%)	-
2	Debt-Equity Ratio (In Times)	Debt Consists of Borrowings and Lease Liabilities	Shareholders Equity	0.77	0.60	28.33%	The increase in Debt Equity Ratio reflects strategic borrowing to fund growth, while maintaining a balanced and prudent capital structure.
3	Debt Service Coverage Ratio (In Times)	Earning Available for Debt Service	Total Debt Service	2.58	2.95	(12.54%)	-
4	Return On Equity Ratio (In %)	Net Profit After Tax	Average Shareholders Equity	14.01	13.37	4.83%	-
5	Inventory Turnover Ratio (In Times)	Cost of Goods Sold	Average Inventory	4.48	7.11	(36.99%)	Due to increased inventory levels required for supporting new high value product introductions that have a longer manufacturing cycle and also maintaining adequate inventory levels, which helps ensure smooth production and timely delivery.
6	Trade Receivables Turnover Ratio (In Times)	Revenue from Operations	Average Trade Receivable	7.97	10.81	(26.27%)	Due to an decrease in The reduction in Trade Receivable Turnover Ratio reflects the companys strategy to offer extended credit stronger sales growth as part of its market expansion.ering
7	Trade Payables	Purchase	Average Trade	11.98	23.49	(49.00%)	The decrease in Trade Payable Turnover Ratio arises from availing longer credit periods from suppliers, in line with market practices, Which improves the companys working capital management during its growth phases.
8	Net Capital Turnover Ratio (In Times)	Revenue from Operations	Net Working Capital	7.28	8.94	(18.57%)	-
9	Net Profit Ratio (In %)	Net Profit	Revenue form Operation	2.77	2.46	12.60%	-
10	Return On Capital Employed (In %)	Earnings Before Interest and Taxes	Capital Employed	11.37	12.39	(8.23%)	Due to increase in equity and borrowings.
11	Return On Investment (In %)	Income Generated from Investment Funds	Average Invested funds	0.35	0.49	(28.57%)	Our main activity is manufacturing and trading; investment income is incidental and earned only on surplus funds available beyond routine business needs.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis contains "Forward Looking Statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future/ likely events or circumstances.

Date : June 28, 2025	For and on behalf of Board of Directors
Place : Ahmedabad	MANGALAM WORLDWIDE LIMITED
Registered office:	VIPIN PRAKASH MANGAL
102, Mangalam Corporate House,	CHAIRMAN
42, Shrimali Society, Netaji Marg,	DIN: 02825511
Mithakhali, Navrangpura,
Ahmedabad-380 009, Gujarat.