Marco Cables & Conductors Ltd Management Discussions

1. INTRODUCTION:

Our Company was originally incorporated as a private limited under the name "Marco Cables Private Limited" under the provisions of Companies Act 1956 and Certificate of Incorporation was issued by the Registrar of Companies, Mumbai on April 13, 1989. Subsequently, the name of our Company was changed to "Marco Cables & Conductors Private Limited" vide Shareholders Resolution dated April 25, 2023 with Certificate of Incorporation pursuant to change of name issued by Registrar of Companies, Mumbai dated May 22, 2023. Eventually, the status of our Company was changed to Public Limited and the name of our Company was changed to "Marco Cables & Conductors Limited" vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on May 25, 2023. The fresh Certificate of Incorporation consequent to conversion was issued on June 19, 2023 by the Registrar of Companies, Mumbai. The Corporate Identification Number of our Company is U27320MH1989PLC051376.

2. INDUSTRY STRUCTURE:

The last two to three decades are probably the fastest infrastructure growing years of India, and so it is for the Wire & Cable industry. The rapid urbanization and industrial development have contributed to the exponential growth of the electrical cable industry in the country. According to a study - the global wire and cable market is growing at a CAGR of 6.45%. It predicts that the global market size of this industry is expected to reach USD 332.65 bn by 2026 from USD 201.76 bn in 2018.

The Indian wire and cable market is growing at an even faster pace. With a whopping CAGR 15% growth rate, the rising Indian market reflects the rapid developments in the power and infrastructure sector. And its not going to slow down any time soon. With the advent of industrial revolution 4.0, global investors are eying the potential Indian market.

3. INVESTMENTS/ DEVELOPMENTS:

The Government of India, from time to time, has made policy pronouncements on Foreign Direct Investment ("FDI") through press notes and press releases.

4. OPPORTUNITIES AND THREATS:

Strength:

• Qualifying in BQR of Government tenders.

• Assured Quality and High Standard Service

• Strong Customer Base

• Leveraging the experience of our Promoters and Directors

• Customized Product Development

• Strong Financial Management

• Strong Marketing Practices

Opportunities:

• Vast Industrial Presence in both Public and Private Sectors

• Huge demand for Domestic services

• Avail of Low-cost, Skilled Human Resources.

• Proactive government continued thrust on reforms- Further liberalization under process.

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Our portfolio of wires, cables and conductors primarily comprise single & multistrand cables, 1.1 KV, XLPE/ PVC Power/Control Cables, FRLS Cables, AAAC/ACSR Conductor and Aerial Bunched Cables. We manufacture wires and cables in accordance with various Indian and international standards.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, there has been no change in the Paid-up Share capital of the Company:

The highlight of the financial performance of the Company for the year ended March 31, 2025 is summarized as follows:

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations	11,140.65	7164.97
Other Income	26.12	42.53
Total Income	11,166.77	7207.51
Direct & other related expenses	9017.35	5733.44
Employee Benefit Expenses	236.86	97.53
Financial Cost	632.65	596.69
Depreciation and amortisation expenses	51.46	46.93
Particulars	FY 2024-25	FY 2023-24
Other Expenses	521.17	302.45
Total Expenses	10,459.97	6777.04
Profit/(Loss) before Tax	706.80	430.47
Add: Exceptional items	-	-
Profit/(Loss) before Tax	706.80	430.47
Provision for Taxation (Net)	(187.25)	(126.82)
Profit/(Loss) after tax	519.54	303.65
Other Comprehensive income for the financial year	-	-
Total Comprehensive income/(loss) for the financial year	519.54	303.65
Earnings per Equity Share (t) - Face value of 10/- each	2.78	1.74

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement The Company’s Human Resources is commensurate with the size, nature and operations of the Company.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

Particulars	Numerator	Denominator	31st March, 2025	31st March, 2024	Change	Remarks
Current Ratio	Current Assets	Current Liabilities	1.86	1.81	2.76%	NA
Debt- Equity Ratio	Total Debt	Shareholders’ Equity	1 .11	1 .48	25.01%	Debt Equity Ratio changed by 25.01% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in Equity for the year ended 31.03.2025
Debt Service Coverage Ratio	Earnings available for debt service	Debt service	1.15	1.11	37.29%	Debt Service coverage Ratio changed by 37.29% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in Earning available for debt service for the year ended 31.03.2025
Return on Equity ratio (%)	Net Profits after taxes	Shareholders’ Equity	16.15%	11.25%	43.48%	Return on Equity ratio changed by 43.48% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to decrease in Net Profit for the year ended 31.03.2025
Trade Receivables Turnover Ratio	Net Sales	Trade Receivables	4.53	2 .56	77.26%	Trade receivable turnover ratio increased by 77.26% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in Net Sales for the year ended 31.03.2025
Trade Payable Turnover Ratio	Net Credit purchase	Trade Payables	9.58	6 .49	47.49%	Trade Payables Turnover ratio decreased by 47.49% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in Net Purchase for the year ended 31.03.2025
Working Capital Turnover Ratio	Net sales	Working capital	3.13	2.13	46.76%	Working Capital Turnover ratio increased by 46.76% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in Net sales for the year ended 31.03.2025
Net Profit Ratio (%)	Net Profit	Net sales	4.66%	4.24%	9.91%	NA
Return on Capital Employed (%)	Earnings before interest and taxes	Capital Employed	33.33%	27.55%	21%	N. A
Return on Investment (%)	Market value at the end of the year - Market Value at the beginning of the year	Market Value at the beginning of the year	15.12%	25.18%	39.98%	Return on Investment ratio decreased by 39.98% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to decrease in market value at the end, for the year ended 31.03.2025

10. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Company’s objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

For and on behalf of the Board Marco Cables & Conductors Limited

Sd/-

Sumit Sugnomal Kukreja

Managing Director

DIN:00254625

Date: 02-09-2025

Place: Thane