Mishra Dhatu Nigam Ltd Management Discussions

1.0 FORWARD LOOKING STATEMENTS:

1.1 Certain statements in this report about our business activities may be forward-looking. Statements about financial status, corporate strategy, management goals and future operations arenotconsideredhistoricalfacts.Forward-lookingstatements use language like ‘believes, ‘estimates, ‘anticipates, ‘expects, ‘intends, may, ‘will, ‘plans and ‘outlook to describe future operational or financial performance. Forward-looking statements depend on assumptions, data and methods that may not be accurate or achievable due to various risks, uncertainties and other important factors. They are not guarantees of future results but rather reflect our current expectations based on reasonable assumptions. We do not intend to update or amend any forward-looking statements based on new information or future events. 1.2 The financial statements are prepared using the historical cost convention, on an accrual basis of accounting and by the rules of the Companies Act of 2013 (the "Act"), as well as the Indian Accounting Standards (Ind AS) stipulated in Section 133. We have employed cautious and reasonable assumptions and judgments in our financial statements to accurately depict the years state of affairs.

1.3 The discussion of our financial condition and operations should be read together witRs.our audited consolidated financial statements and notes in the Annual Report.

2.0 Global economic overview¹:

2.1 Despite persistent economic hurdles, the global economy maintained a stable trajectory in FY 2024. Alterations in tariff policies, trade dynamics and sustained geo-political unrest continued to hinder growth. The global economy expanded by 3.3% in FY 2024. The US economy achieved a steady growtRs.on the back of robust consumer spending and sustained employability. Conversely, muted growtRs.was noticed in the economies of Europe. Germany, one of the largest economies of Europe faced stagnation during the year. GrowtRs.was subdued in China as it grappled witRs.challenges in its property sector. While developed countries grew at 1.8%, emerging and developing economies witnessed a stronger pace of 4.3%.

2.2 Inflation eased in many parts of the world. Global headline inflation fell from 6.7% in FY 2023 to 5.8% in FY 2024. This decline was primarily facilitated by lower energy costs and better supply chain conditions in advanced economies. However, heightened levels of inflation persisted in some developing economies, affected by weak currencies and ongoing supply chain challenges.

2.3 In addition, the recent implementation of tariffs by the US government and the countermeasures initiated by nations around the world pose considerable threats to the stability of global trade. Positively, advanced economies reached closer to their target inflation rates and many Central Banks gradually lowered interest rates to support growtRs.and enhance credit flow.

2.4 Demand for advanced materials, including high-performance alloys, remained strong across aerospace, Defence and critical manufacturing sectors. Global stainless-steel production also witnessed steady growth, driven by expanding urban infrastructure and manufacturing investments. These trends are expected to support sustained demand for specialty materials.

3.0 Outlook:

3.1 The outlook for the global economy remains cautiously optimistic. Global GDP is projected to grow at an estimated rate of 2.8% in FY 2025 and 3.0% in FY 2026. This growtRs.is expected to be supported by further easing of inflationary pressures and accommodative fiscal and monetary policies of economies around the world. Global inflation is expected to decline further to around 4.3% in FY 2025. 3.2 As inflation goes down and the economy grows, Central Banks are expected to slowly reduce interest rates. The outlook of the Emerging Market and Developing Economies (EMDEs) remains positive witRs.projections estimating a growtRs.of 3.7% in FY 2025 and 3.9% in FY 2026. Further, advanced economies are envisioned to grow at 1.4% in FY 2025 and 1.5% in FY 2026. 3.3 The inflation outlook as a whole has improved but theres still some uncertainty. In particular, the effects of recently imposed tariffs on inflation across countries will depend on whether the tariffs are perceived to be temporary or permanent. The patRs.forward demands clarity and coordination. Countries need to come together to create a stable, reliable trade environment. In addition, stable oil prices and decline in food inflation and accommodative policy support are expected to create an atmosphere conducive to growth.

GrowtRs.in the Global GDP: Global Economy

4.0 Indian economic overview:

4.1 India continued to be one of the best-performing large economies in FY 2024-25, witRs.an estimated GDP growtRs.of 6.5%. This growtRs.was driven by robust growtRs.in private consumption and strong export performance. The growtRs.was further bolstered by strong performance across sectors, sucRs.as manufacturing, services and agriculture. Improved agriculture output augmented rural spending, whicRs.helped private consumption grow by 7.6% and added 4.3% to the countrys total GDP growth.² 4.2 The Governments sustained focus on infrastructure development, logistics and digital services played a crucial role in stabilising the economy. Further, througRs.the Union Budget, the government has allocated H11.11 LakRs.crore for capital expenditure, whicRs.is 3.4% of Indias GDP. ³ 4.3 Retail inflation witnessed a decline to 4.6% in FY 2024-25, compared to 5.4% in the previous year. However, new tariffs introduced by the United States may lead to higher inflation, as the increased import costs could be passed on to buyers. In response, India is closely observing the evolving tariff scenario, while calibrating an appropriate response. Meanwhile, the RBIs recent rate cut is expected to boost liquidity, lowering borrowing costs and enhancing credit flow in the economy.

Outlook

Looking ahead, the outlook for the Indias economy remains promising. This growtRs.will be supported by favorable monetary and fiscal policies, higher rural incomes and lower inflation, all of whicRs.are likely to increase consumer confidence. The services sector is expected to stay strong and manufacturing is likely to do better witRs.energy costs coming down.

The inflation is expected to ease further to around 4% in FY 2025-26, aided by stable global commodity prices and improved domestic food supply.⁴ Additionally, energy prices are expected to remain relatively low, helping ease input costs across key sectors. Robust foreign reserves, targeted government spending and accommodative policies are expected to drive growth.

5.0 Ind ustry Overview

5.1 Steel industry

Steel utilised botRs.as a foundational raw material and a vital intermediary in various industries. Due to these properties, steel production and consumption serve as crucial indicators of a nations economic progress. India retained its position as the second-largest producer of crude steel globally. In FY 2024-25 (April to January), the country produced 125.49 million tonnes (MT) of crude steel and 120.43 MT of finished steel. The total crude and finished steel production for FY 2023-24 stood at 144.3 MT and 139.15 MT respectively. This data indicates a sustained year-on-year growtRs.and highlights the resilience and expanding capacity of the industry.

The Indian housing, manufacturing and infrastructure sectors have been witnessing significant growth. This is also impacting the growtRs.of the steel industry positively. India was the second-largest producer of crude steel in FY 2024.

Production and Consumption of Steel over the years

(in million tonnes)

Category	FY 2019-20	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
Crude Production	109.14	103.54	120.29	127.20	144.30	125.49
Finished Steel Production	102.62	96.20	113.60	123.20	139.15	120.43
Finished Steel Consumption	100.17	94.89	105.75	119.89	136.29	125.42

Steel consumption also witnessed a significant elevation. The consumption of finished steel in FY 2024-25 (April to December) reached 125.42 MT, compared to 119.89 MT in FY 2022-23. This growtRs.was primarily facilitated by the heightened demand from sectors, sucRs.as construction, automotive, capital goods and infrastructure. In terms of trade, finished steel exports stood at 3994 thousand tonnes, while imports were at 8369 thousand tonnes during April to December FY 2024-25. India, while still a net importer, continues to focus on enhancing self-sufficiency and promoting exports in value-added steel segments.

The Indian steel industry is benefitting from strong policy initiatives and financial backing. The Ministry of Steel continues to back ResearcRs.and Development (R&D) initiatives witRs.heightened collaboration and financial assistance. In January 2025, the Government launched the Production Linked Incentive (PLI) Scheme 1.1 witRs.a financial outlay of INIR 6,322 crores to enhance production of specialty steel, reduce imports and promote energy efficiency. This is expected to attract investments and generate employment. Other measures sucRs.as the reduction in customs duty on select inputs, export duty on iron ore and initiatives under the National Steel Policy 2017, whicRs.targets 300 MT of steel-making capacity by FY 2030-31, are strengthening the foundation of the domestic steel ecosystem. Driven by strong fundamentals, rising domestic demand and proactive government initiatives, the Indian steel industry is well-positioned to sustain its growtRs.trajectory and emerge as a global leader in specialty and value-added steel production.

5.2 High-performance alloys⁸

High-performance alloys, sucRs.as Hastelloy, Inconel, Haynes and Monel are produced by utilising elements like nickel, aluminium and cobalt. These materials are extensively utilised in industries sucRs.as aerospace, Defence, electronics, oil and gas and marine, owing to their strengtRs.and durability. HigRs.temperature tolerance and corrosion resistance positions these alloys as crucial components in aerospace engines and critical components. Further, recent years witnessed heightened utilisation of these alloys in the medical field. Durability and their compatibility witRs.the human body have been the primary facilitators of this growth. HigRs.performance alloys are increasingly being preferred by industries whicRs.require reliable materials to perform under challenging conditions. The high-performance alloy industry was valued at USD 10.12 billion globally in CY 2024 and is expected to reacRs.USD 15.65 billion in CY 2032 witRs.an estimated CAGR of 3.65%. This growtRs.is foreseen to be propelled by several factors, sucRs.as including a heightened emphasis on the utilisation of high-performance materials in the automotive, Defence and aerospace sectors. Further, increased application in steam turbines, economies of scale, sustained technological advancements and elevated government spending, particularly in developing countries will serve as crucial tailwinds.

The Asia Pacific region is projected to be the fastest-growing market. The revenue is expected to grow at a CAGR of 5.9%. This growtRs.is expected to be driven by rising automobile production and the expansion of the aerospace sector. Additionally, the growing GDP of emerging economies and the pusRs.for indigenous manufacturing are expected to further fuel demand throughout the forecast period. The market is largely dominated by NortRs.America on account of higRs.consumption volume of the aerospace industry in the US.

5.3 Defence manufacturing

The Defence market is divided into several segments based on the type of offering. These include air-based, sea-based and land-based Defence equipment. Further, the market encompasses services for maintaining, repairing and overhauling Defence systems. It also includes support and auxiliary equipment like communication systems, radars and other essential technologies. The global Defence market is expected to grow from USD 573.5 billion in FY 2023 to USD 780.8 billion in FY 2028, followed by a growtRs.at 4.6% CAGR during the period of FY 2028-2033.⁹ Government initiatives, integration of advanced technology, rising security threats and military modernisation are expected to direct this growth. However, challenges like rising cyber-attacks and the impact of a global recession could slow down this growtRs.in the years ahead.

India has one of the largest Defence industrial bases in the world, supported by a robust ResearcRs.and Development (R&D) ecosystem. Indias Defence production has seen notable growtRs.since the launcRs.of the ‘Make in India initiative. In FY 2024-25, Defence exports reached a record H23,622 crore.¹⁰ This highlights Indias strive towards developing a Defence industry that supports economic growtRs.and augments in self-reliance in the Defence sector. Strategic policies have played a key role in driving this progress by promoting private sector involvement, encouraging innovation and supporting the development of advanced military systems. The significant elevation in the Defence budget from RS.2.53 LakRs.crore in FY 2013-14 to RS.6.81 LakRs.crore in FY 2025-26 reflects Indias resolute approacRs.towards building a more capable and modern Defence infrastructure. Out of this allocation, RS.1.8 LakRs.crore will be spent on capital outlay on Defence services.¹¹

5.4 Ind ian Aerospace Industry

The heightened activity of the Defence and civil aviation is facilitating the strong growtRs.of Indias aerospace industry. The ascending demand of large aircraft from Indian airlines, along witRs.steady growtRs.in Defence capital spending, is creating new opportunities in the aerospace and Defence industry. WitRs.a growing focus on advanced infrastructure and strong government support, the Indian Aerospace and Defence (A&D) market is expected to reacRs.USD 70 billion by 2030.¹² In the Union Budget 2025-26, the aircraft and aero engines segment has been allocated 27% of the total capital budget, witRs.a 21% YoY increase from RS.40,278 crore to RS.48,614 crore.¹³ The increased budgetary allocation, coupled witRs.a strong emphasis on indigenous manufacturing, modernisation and export promotion will be the key growtRs.drivers for the Indian aerospace and Defence manufacturing sector.

5.5 Energy sector

The energy and power sector sustained its position as a crucial pillar of Indias economic growth. Robust policies, rising demand and heightened integration of renewable resources are providing crucial support to the industry. The Government of India is undertaking measures to improve the power transmission network througRs.the Green Energy Corridor initiative. This initiative is aimed at augmenting the growtRs.of renewable energy across the country. FY 2024-25 witnessed robust capacity additions and infrastructure developments aligned witRs.the countrys sustainability goals. As of MarcRs.2025, Indias total installed power generation capacity stood at 475.21 GW (gigawatt).¹⁴

Source-wise Electricity Installed Capacity Trends

				(in GW)
Source	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
Coal	210.69	211.85	217.58	221.81
Oil & Gas	254.09	25.41	25.62	25.12
Nuclear	6.78	6.78	8.18	8.18
Hydro	46.72	46.85	46.92	47.72
Solar	52.43	62.67	76.27	100.89
Wind	40.35	42.63	45.88	50.03
Bio-power	10.2	9.67	10.35	10.74

5.6 Superalloys¹⁵

Superalloys are specially designed materials that can handle extreme heat, pressure and harsRs.environments. Made from a mix of elements like nickel, cobalt and iron, they offer higRs.strength, thermal stability and strong resistance to damage and corrosion. The crystal structure of superalloys is carefully designed to perform well under extreme conditions. This makes them essential for aerospace engines, gas turbines and other demanding industrial uses. They are mainly used in parts that need to handle heavy loads and resist heat, oxidation and corrosion. The global superalloys market was valued at USD 6.5 billion in FY 2024 and it is expected to reacRs.USD 10 billion by FY 2033, showing a CAGR of 4.88% during FY 2025-2033.

GrowtRs.Drivers

GrowtRs.in high-temperature industrial applications

The ascending demand of high-performance components is augmenting the growtRs.of the superalloy market. This demand can be specially noted in the aviation and power sector. Recognised for their strength, heat resistance and durability, superalloys are essential for jet engines and turbines. Industries are increasingly prioritising efficiency and emission reduction and are investing in strong, advanced and future-proof materials. This shift is presenting opportunities to the superalloy market.

Heightened focus on material science research

Material science has witnessed remarkable progress. This progress has turned superalloys from experimental components to industry essentials, particularly in the aerospace, healthcare and oil and gas sectors. The advances in researcRs.has enabled these materials to withstand extreme heat, pressure and corrosion, whicRs.is ideal for jet engines, implants and drilling. New utilisation opportunities are emerging witRs.eacRs.new breakthrough. This is further fuelling innovation and is augmenting market growth.

Significant elevation in military spending

Amid prevailing geo-political uncertainties, governments around the world are reinforcing their defence capabilities. This entails a significant rise in military spending. Superalloys, whicRs.are integral to aerospace engines, weapons and other high-performance military gear are experiencing a notable hike in demand. Their strength, heat resistance and durability make them essential for advanced defence technology. WitRs.more resources being directed towards defence, the demand for superalloys is foreseen to sustain its upward trend.

5.7 Titanium¹⁶

T itanium is widely recognised for its strength, light weight and resistance to corrosion. Owing to these strengths, it is widely utilised in the production of aircraft components, medical implants and a wide range of industrial equipment. The global Titanium market size was estimated to be USD 30.34 billion in CY 2024 and it is projected to reacRs.USD 52.52 billion by CY 2032, witRs.a CAGR of 7.10% during the forecast period of CY 2025-32. In addition, witRs.the increasing momentum of civil aviation, the demand for titanium is foreseen to sustain its growth.

Indian Titanium market size was USD 679.1 million in CY 2024 and it is expected to reacRs.USD 1,048.5 million by CY 2033, showing a CAGR of 4.94% during CY 2025-33.¹⁷ Indias focus on deep-sea exploration is increasing the demand for titanium. Its corrosion resistance and ability to withstand amplified levels of pressure make it ideal for submersibles, underwater drones and sensor housings used in sucRs.environments.

5.8 Speciality alloys

Specialty alloys are advanced materials, specially designed for high-performance utilisation. These are manufactured by combining metals like nickel, titanium and cobalt witRs.chromium and molybdenum. This combination imparts strength, heat and corrosion resistance and durability in extreme conditions. Specialty alloys are predominantly utilised in higRs.temperature and corrosive environments.¹⁸ Industries, sucRs.as, aerospace, automotive, energy, medical and Defence widely utilise specialty alloys in their manufacturing processes.

The global speciality alloy market is expected to grow at a CAGR of 6.4% from CY 2024 to CY 2030 to reacRs.a market size of USD 572 million by FY 2030.¹⁹ In addition to their wide-scale utilisation in the aerospace industry, specialty alloys are witnessing heightened utilisation in power generation sector. These alloys are being used in heat exchangers. Overall, the rising demand from various sectors present a positive outlook for the specialty alloys market in the years ahead.

6.0 Major strategies and initiatives implemented

Our Strategies	Our Plans	Key initiatives
Capacity Expansion and Modernization	1. Titanium Production Expansion	The Company commissioned a high-capacity Vacuum Arc Remelting (VAR) furnace to increase Titanium production capacity.
	2. Equipment Modernization and Commissioning	The Company sustained its focus on modernizing the facilities, whicRs.were installed in 1980s. It has planned an RS.60 crore CAPEX for FY 2024-25 witRs.an additional RS.100 crore envisioned for the next two years.
Strengthening Product Portfolio and	1. New Alloy Development	MIDHANI developed high-end superalloy Inconel 718 witRs.large diameter (325 mm) and low defect tolerance for aero engines.
Indigenisation	2. Strategic Sector Participation	The Company supplied materials for strategic projects. Developed advanced ultra-supercritical (AUSC) alloys.
ResearcRs.and Development	1. Strategic Material Research	The Company continued developing superalloys and specialty materials for defence, aerospace and energy sectors.
	2. Alloy and Process Innovation	MIDHANI focused on expanding its casting capabilities, including Titanium castings for naval applications.
Enhancing Workforce Competence and Capacity	1. Employee Skill Development	MIDHANI continues to invest in building technical and managerial competencies througRs.targeted training programmes. These programmes are aimed at upgrading the skills of its employees in order to remain aligned witRs.the evolving industry requirements and shifting demand patterns.
	2. Organisational Capability Building	WitRs.expanding operations and entry into new markets, the Company is recruiting talent, strengthening internal capabilities througRs.upskilling and cultivating a high-performance, innovation- driven organisational culture.

7.0 SWOT Analysis:

Strengths:

MIDHANI has end-to-end capabilities in Titanium and superalloy production, including melting, forging, casting and rolling whicRs.gives it a significant technological edge.

The Company successfully developed and commercialized critical alloys like Inconel 718 and continues to supply materials for defence and aerospace programmes.

A skilled R&D team focused on product innovation and strategic material development for critical defence and aerospace programmes strengthens MIDHANIs market position.

Weakness:

The Companys dependence on imported raw materials exposes it to global supply chain disruptions and price volatility.

Capacity limitations in specific segments, may impact its ability to meet the increasing demand in key markets.

Opportunities:

Heightened focus on indigenisation by the Indian Government is expected to drive demand for domestically produced strategic materials.

The commissioning of the new high-capacity VAR furnace and sustained modernisation efforts will enable MIDHANI to scale its production and meet the growing demand in sectors like aerospace, energy and defence. MIDHANI is expanding its export markets, particularly in the aerospace sectors, focusing on high-value specialty alloys.

Threats:

Global geopolitical tensions and trade restrictions could potentially disrupt supply chains and increase costs of raw materials.

Intense competition in the Titanium and superalloy sectors from botRs.domestic and emerging foreign entrants could pressurise the pricing and market share of the Company.

Review of Operations:

MIDHANI is one of the leading producers of special steel and superalloys. In addition, it is leading manufacturer of Titanium alloy in India.

During the year, the Company achieved a marginal increase in sales turnover compared to the previous fiscal.

During the year under review, the Company invested approximately H4,992 LakRs.in capital expenditure, whicRs.included commissioning of new facilities and capacity expansion. These investments are aimed at bolstering future growtRs.and production capacity.

Manufacturing Locations

Hyderabad

The Hyderabad plant is equipped witRs.advanced and versatile manufacturing facilities, whicRs.enable the production of a wide range of special metals and alloys. These include forged bars and flats, rings, near-net shapes, closed die forgings, hot-rolled bars and sheets, cold-rolled sheets, strips, foils, wires, castings, tubes and fasteners.

Rohtak

MIDHANI has an armour manufacturing unit in Rohtak, where it produces bulletproof vests, vehicle armouring, helicopter armouring and ‘MIDHANI Kavach, a lightweight bullet-resistant jacket. The Company has established a nano material plant to produce Carbon Nano Tubes (CNT), whicRs.are used to strengthen Ultra HigRs.Molecular Weight Polyethylene (UHMWPE) for making Bhabha Kavach, Indias lightest bulletproof jacket.

Manufacturing Facilities

MIDHANIs manufacturing facilities encompass botRs.primary and secondary melting furnaces, sucRs.as electric arc furnaces witRs.ladle refining, vacuum induction melting, vacuum arc re-melting, electro slag re-melting and electron beam melting furnaces. Depending on the output, size and form, additional processes are carried out using 6000T/1500T forge presses, ring rolling mills and more. The production process also includes conditioning, heat treatment, machining, pickling and quality control.

Portfolio of Products

Special Alloys (Ferritic, Austenitic, Martensitic, Maraging, Armour Steel).

Super Alloys (Iron/Cobalt/Nickel Based).

Titanium Alloys in the form of melted, forged, rolled and drawn product.

Special Steels and Titanium Alloy grades constitute a major portion of production tonnage.

Key Raw Materials

Titanium

The Company manufactures Titanium alloys, whicRs.are widely used in the aerospace and defence industries. These alloys are known for their strong strength-to-weight ratio and excellent resistance to heat and corrosion.

Nickel

The company makes nickel-based superalloys whicRs.are used in jet engines components like turbine blades, discs and combustors. Moreover, this alloy is used in making of biomedical implants.

Cobalt

MIDHANI utilises cobalt to produce alloys sucRs.as Stellite, whicRs.are utilised in aerospace components, cutting tools and valves.

Tungsten

Tungsten is used by the Company as a raw material to make alloys, including high-performance steels.

Zirconium

Zirconium, due to its higRs.corrosion resistance and low neutron absorption is integral for the manufacturing of nuclear reactor components, sucRs.as structural and cladding materials.

Aluminium

Aluminium is a key raw material utilised in the production of various alloys used in aerospace and defence applications.

Copper

Copper is used by the Company to manufacture alloys, brass and bronze, whicRs.are further used in musical instruments, marine applications and electrical components.

ResearcRs.and Development

MIDHANIs ResearcRs.and Development (R&D) department focuses on innovation, marketing, cost management and the development and improvement of new products.

In FY 2024-25, the Company invested RS.2,417.61 LakRs.in its R&D efforts. The R&D Division has considerably reduced the Companys dependence on imports and has played a key role in establishing collaborations witRs.premier institutions and universities to develop advanced products.

FINANCIAL PERFORMANCE

13.1 The Summarized financial position for the Financial Year 2024-25 and for the two preceding Financial Years is given below:

Particulars	31-Mar-25	31-Mar-24	31-Mar-23
ASSETS:
Non-current assets
Property, Plant and Equipment	1,07,119.42	1,02,777.80	1,01,087.21
Capital work-in-progress	2,508.78	8,305.75	7,964.40
Intangible assets	284.07	373.16	463.00

 

Particulars	31-Mar-25	31-Mar-24	31-Mar-23
Financial Assets
(i) Investments	2,483.31	2,210.11	2,210.11
(ii) Loans	-		-
Non-current tax assets (Net)	-	-	52.88
Other non-current assets	360.95	195.19	228.77
Total Non-Current Assets (1)	1,12,756.53	1,13,862.01	1,12,006.37
Current assets:
Inventories	1,28,097.93	1,30,971.81	1,22,484.37
Financial Assets
(i) Trade receivables	41,031.36	32,300.17	31,579.89
(ii) CasRs.and casRs.equivalents	5,101.18	1,661.37	1,441.54
(iii) Other financial assets	2,058.60	1,712.32	922.40
Other current assets	2,370.17	10,063.03	17,925.95
Total Current Assets (2)	1,78,659.87	1,76,708.70	1,74,354.15
Total Assets (1+2)	2,91,416.40	2,90,570.71	2,86,360.52
EQUITY AND LIABILITIES
EQUITY
Equity share capital	18,734.00	18,734.00	18,734.00
Other Equity	1,22,713.93	1,13,210.30	1,09,885.42
Total Equity (1)	1,41,447.93	1,31,944.30	1,28,619.42
LIABILITIES
Non-current liabilities
Financial liabilities
(i) Borrowings	3,907.88	5,914.13	6,735.67
(ia) Lease Liabilities	8,064.25	8,099.94	8,132.68
(ii) Other Financial Liabilities	109.83	109.83	94.53
Provisions	232.45	207.71	184.60
Deferred tax liabilities (net)	5,184.33	4,467.78	3,957.46
Other non-current liabilities	63,913.32	62,312.67	58,545.29
Total Non-current liabilities (2)	81,412.06	81,112.06	77,650.23
Current Liabilities
Financial liabilities	19,499.90	26,500.00	31,999.63
(i) Borrowings	3,504.01	2,750.43	1,997.12
(ii) Lease Liabilities
(iii) Trade payables	554.15	768.39	429.96
(A) Micro Enterprises and Small Enterprises	8,772.44	11,228.91	14,147.74
(B) Other than Micro Enterprises and Small Enterprises	11,424.49	13,079.33	12,191.95
(iii) Other financial liabilities	21,765.35	20,233.92	16,290.18
Other current liabilities	3,036.07	2,953.37	3,034.29
Provisions	68,556.41l	77,514.35	80,090.87
Total Current Liabilities (3)	2,91,416.40	2,90,570.71	2,86,360.52
Total Equity and Liabilities (1+2+3)	1,10,103.46	99,194.35	94,263.28
Working Capital	1,45,355.81	1,37,858.43	1,35,355.09
Capital Employed	1,41,447.93	1,31,944.30	1,28,619.42
Net Worth	7.55	7.04	6.87
Net wortRs.per rupee of paid-up capital (H)

8.0 MOU 2024-25 PERFORMANCE AND WORKING RESULTS:

8.1 For the FY 2024-25, MIDHANIs MoU performance is expected to qualify for an overall "Good" rating. The rating is subject to evaluation and confirmation by Department of Public Enterprises.

8.2 The performance of your company against various parameters was as under:

S. No.	Name of the Parameter	Unit	Target	Actual
1	Value of Production	RS.In Cr	1,500	1,065.62
2	CAPEX	RS.In Cr	60	49.92
3	Export/Income from Overseas	RS.In Cr	150	94.19
4	Reduction in Total Imports consumed as % of Revenue from Operations over the Previous Year	%	25.52	36.98
5	EBITDA as % of Revenue	%	30.00	22.60
6	Return on Net worth	%	20.38	8.11
7	Asset Turnover Ratio	%	40.31	37.91
8	Acceptance/ Rejection of Goods & Services througRs.the TReDS portal within specified time	%	100	60
9	Procurement from GeM as per approved procurement plan	%	100	100
10	Trade Receivables as number of days of Revenue from Operations	No. of Days	90	139.43
11	Expenditure on R&D/ Innovations Initiatives as % of PBT	%	13.96	15.42

The Total Return to Shareholders (TRS) during FY 2024-25 stood at -30.61%.

(Market cap. at end of FY - Market cap. at end of Previous FY)

+ Dividend Paid + Dividend/ Interest/ Redemption of Bonus Pref. Shares or Debenture, etc.

T otal Return to Shareholder = x 100 Market cap. at the end of Previous FY

8.3 Your Company has complied witRs.DPE guidelines issued from time to time on CSR expenditure by CPSEs for the FY 2024-25. 8.4 The procurement of goods or services througRs.MSEs was 54.49% of total domestic procurement of goods or services procured by Company during FY 2024-25.

8.5 The procurement of goods or services as % of total domestic procurement of goods and services througRs.SC/ST MSEs and Women MSEs was 1.90% and 3.12% respectively during FY 2024-25.

9.0 Significant highlights of the performance for FY 2025 and its comparison witRs.the previous two years:

S. No.	Particulars	2024-25	2023-24	2022-23
1	Sales - To Customers	1,07,410.15	1,07,267.45	87,194.14
2	Sales – Export (Direct)	9,419.32	6,201.20	2,064.70
3	Value of Production	1,06,562.38	1,14,764.49	1,10,026.63
4	CasRs.Profit	21,952.02	18,951.15	26,955.37
5	Profit Before Tax (Excl. OCI)	15,603.90	13,095.95	21,654.92
6	Net Profit (PAT) (Excl. OCI)	11,006.87	9,126.32	15,587.61
7	Value Added	64,340.23	62,417.24	70,908.96
8	Value added per employee	81.86	81.06	94.42
9	Productivity per employee	135.58	149.04	146.51
10	Value added per direct worker	166.68	161.70	184.18
11	Paid up Capital	18,734.00	18,734.00	18,734.00
12	No. of Employees	786	770	751

10.0Some of the important financial ratios indicating financial healtRs.and working of the Company at the end of last three years are as under:

S. No.	Particulars	2024-25	2023-24	2022-23
A.	Current Ratio	2.61	2.28	2.18
B	Profitability Ratios
a)	Profit Before Tax to
	i) Capital Employed (%)	10.73	9.50	16.00
	ii) Net wortRs.(%)	11.03	9.93	16.84
	iii) Sales (%)	14.53	12.21	24.84
b)	Profit After Tax to Equity (%)	58.75	48.72	83.20
c)	Earnings Per Share (in Rupees)	5.88	4.87	8.32

11.0 The other Key Financial Ratios are as under:

S. No.	Particulars	FY 2024-25	FY 2023-24	Change in % as compared to FY 2023	Detailed explanation for change of 25% or more
1.	Debtors Turnover	2.93	3.36	-12.80%	-
2.	Inventory Turnover	0.72	0.75	-4.00%	-
3.	Interest Coverage	8.45	6.48	30.40%	Increase in Profit Before Tax
4.	Current Ratio	2.61	2.28	14.47%	-
5.	Debt Equity Ratio	0.17	0.25	-32.00%	Repayment of working capital loan and CAPEX Loan.
6.	Operating Profit Margin (%)	11.65	9.42	23.67%	-
7.	Net Profit Margin (%)	10.25	8.51	20.45%	-
8.	Return on Net worth	8.05	7.01	14.84%	-

12.0Amount available for Appropriation:

In FY 2024-25, the amount available for appropriation was INR 11,006.87 LakRs.whicRs.increased from INR 9,126.32 LakRs.in FY 2024.

13.0Risks and Risk Analysis:

Risk Type	Risk description	Risk probability and Impact	Risk mitigation
Market risk	A significant portion of	Medium (M)	MIDHANI has focused on diversifying
	MIDHANIs customer base comprises government sector clients, including Defence, Space and PSUs. Any change in government priorities may affect the Companys current and projected strategy.	The higRs.concentration of sales from the Government makes MIDHANI sensitive to policy changes that impact the Defence and Space sectors, directly affecting revenue and business strategy.	its product portfolio and expanding into new markets. The Company continues expand its clientele.
Finance Cost	Fluctuations in financial	Medium (M)	The Company maintains a strong and
	metrics, sucRs.as interest rates, liquidity issues and foreign exchange rates, could negatively affect MIDHANIs bottom-line performance.	Heightened borrowing and elevated interest rates have led to increased finance costs, whicRs.has impacted profitability.	healthy balance sheet and carefully diversifies its funds to reduce financial risks and ensure long-term stability.

 

Risk Type	Risk description	Risk probability and Impact	Risk mitigation
Raw Material	MIDHANIs reliance on	Medium (M)	MIDHANI has taken proactive steps to
risk	imported raw materials exposes the Company to risks stemming from fluctuations in global trade policies and material price volatility.	Strained global supply chains and unpredictable raw material costs, exacerbated by geopolitical factors, may disrupt the availability and pricing of key materials like titanium, nickel and cobalt.	ensure a steady supply of raw materials by identifying alternative suppliers and upgrading technologies to enhance the utilisation of domestic resources. Availability and stocks of vital raw materials are closely monitored by the Company.
Change in	Alteration in government	Medium (M)	MIDHANI constantly monitors policy
Government Policies	regulations, particularly in the aerospace and defence sectors, may introduce new compliance requirements or restrictions, impacting operations.	Shifts in regulatory frameworks, especially in defence and aerospace, may require the implementation of high-cost adjustments and could delay or disrupt operations.	changes and maintains compliance witRs.all regulations. The Company is also expanding its clientele into non- defence sectors to reduce dependency on defence-related policies

14.0HUMAN RESOURCE DEVELOPMENT:

MIDHANI has a dedicated and skilled team that plays a key role in helping the Company reacRs.its objectives. As of MarcRs.31, 2025, the Company employed 786 permanent staff members, including 49 new hires.

The Company offers training programmes that provide continuous learning and development opportunities to its employees. During FY 2024-25, 2,953 person days training was imparted for its employees and Company spent RS.21.96 LakRs.on training programmes.

15.0INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

MIDHANI has implemented internal controls that are appropriate for its size and operations. Management conducts internal audits and reviews them to improve the internal control system. The in-house internal audit function, assisted by skilled external audit firms, conducts comprehensive risk-focused audits and regularly evaluates the efficacy of the internal control structure and functions. The Company has implemented internal financial controls as outlined in the Companies Act of 2013. These have been established at all levels to ensure compliance witRs.internal control standards, regulatory compliance and accurate financial and operational information recording.

Sagar & Associates, an external audit firm, conducted an internal audit during the reporting year to establisRs.adequate systems and controls. The Audit Committee reviewed these reports. The In-house Internal Audit team conducts frequent audits of processes. Internal audit reports and corrective action are discussed witRs.management and reviewed by the Audit Committee. The Audit Committee evaluates the efficacy of internal controls.

16.0Cautionary Statement

The Management Discussion and Analysis section of the document may contain forward-looking statements regarding the Companys objectives and predictions, as defined by relevant laws and regulations. It is important to note that the actual results may differ significantly from these statements due to various risks and uncertainties. These risks and uncertainties may arise from economic and political conditions in India, fluctuations in interest rates and exchange rates and the impact of new regulations and government policies on the Companys business and its ability to execute its strategies. The Company does not guarantee the accuracy of these forward-looking statements and does not commit to updating them.