Mideast Integrated Steels Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The steel industry is a key pillar of industrial development, playing a critical role in infrastructure, construction, automotive, and manufacturing sectors. Globally, the industry is experiencing growth driven by urbanization and renewable energy projects. In India, it is the second-largest producer of crude steel, supported by government initiatives like the National Steel Policy. Technological advancements and sustainable practices are shaping the future of steel production.

The Indian steel industry witnessed robust growth in FY 2024 25, driven by strong domestic demand from infrastructure, construction, and automotive sectors. Crude steel production crossed 130 million tons, maintaining Indias position as the second-largest producer globally. Capacity utilization improved, and exports remained stable despite global headwinds. Government initiatives like PLI schemes and infrastructure spending continued to boost sector performance.

Opportunities include rising domestic demand fueled by infrastructure projects, housing, and renewable energy sectors. Government policies like the National Infrastructure Pipeline and PLI scheme offer strong growth potential.

Threats include volatility in raw material prices (iron ore, coking coal), global overcapacity, trade restrictions, and environmental compliance challenges, which may impact profitability and competitiveness.

The outlook for the Indian steel industry remains positive, supported by strong government infrastructure spending, rapid urbanization, and industrial growth. Demand from sectors like construction, automotive, and renewable energy is expected to drive consumption. Continued policy support and investment in green steel technologies will enhance long-term sustainability. However, global market uncertainties and raw material cost fluctuations may pose short-term challenges.

The steel industry faces risks from volatile raw material prices, especially iron ore and coking coal, which impact cost structures. Global economic uncertainties, trade barriers, and currency fluctuations can affect exports and margins. Environmental regulations and the push for decarbonization may require significant investments. Additionally, overcapacity in global markets poses a threat to price stability and competitiveness.

The Company has adequate and efficient Internal Control Systems for achieving the following business objectives of the Company: Efficiency of operations. Judicious utilization and protection of resources. Accuracy and promptness of financial reporting. Compliance with the laid down policies and procedures. Compliance with various laws and regulations.

During the year under review, the Company?s net revenue from operations was Rs. 470.50 million as against Rs. 1813.73 million in the previous financial year. The Company?s Profit / (Loss) before

Depreciation Interest and Tax ("PBDIT") is Rs. (858.54) million in the financial year ended 31st March, 2025 as opposed to PBDIT of Rs 998.27 million in the immediate previous financial year.

Taking into account depreciation and interest cost, profit/ (Loss) before tax (PBT) stood at Rs. (1215.28) million as against Rs. 597.05 million in the previous financial year and total comprehensive income for the year was Rs. 1413.01 million as against Rs. 600.15 million in the previous financial year.

The Human Resources department is committed to recruiting strong candidates and this commitment involves discussing the needs of a department, advising on recruitment strategies, participating in the selection of the right candidate, checking references and making job offers. As part of this process, Human Resources analyzes data such as the number of vacant positions, the number of positions filled and the time it took to fill positions. Tracking this information helps to ensure quality of service and leads to a better understanding of the time required to fill a position.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS: The details of significant changes in the key financial ratios during financial year 2024-25 as compared to the immediately previous financial year 2023-24 are given below: