Mohite Industries Ltd Management Discussions

The management of Mohite Industries Limited presents the analysis of business performance of the Company for the year 2025-26 and its outlook for the future. This outlook is based on assessment of the current business environment. The management of Mohite Industries Limited presents the analysis of business performance of the Company for the year 2025-26 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other depending upon the economic and climatic conditions, government policies, taxation and other laws and other incidental factors.

1. INDUSTRY STRUCTURE & DEVELOPMENTS :

The Company entered the Financial Year 2025-26 with hopes from positive market condition which helped the company to increase business and profitability as well.

As the company is producing special quality yarn i.e. Compact and Slub yarn, it could fetch a good price for this quality of yarn during the year under report.

The management can see opportunity to stand firmly in the market as regards price of yarn since other mills are not yet able to start in a full fedge manner which reduced the competition. The main threat to face by the management is rapid increase in cotton price in the start of the year 2025-26. To cope with this situation, the management has to keep its grip on the market and try to fetch high price as far as possible.

Segment-wise performance is given in Note No.1 (13) to Financial Statements.

Taking into account overall market situation, the management see no risk and concerns in continuing the mill operation.

The Company has laid down processes and control framework, which enable implementation of appropriate internal financial controls across the company. It encompasses policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of business, including adherence to its policies, safeguarding of its assets, prevention and detection of frauds and errors, the accuracy and completeness of accounting records and the timely preparation of reliable financial information. Appropriate review and control mechanisms are put in place to ensure that such control systems are adequate and are operating effectively, on an ongoing basis.

The management has appointed a reputed firm of chartered accountants to carry out internal audits/ reviews on a periodic basis. The internal auditors directly present their report to the Audit Committee for its consideration. The Audit Committee reviews important issues raised by the Internal and Statutory Auditors and the status of rectification measures, regularly. For the Financial Year 2025-26, your Company has got its internal financial controls over financial reporting evaluated and the internal financial controls were adequate and operating effectively.

The Company would like to place on record, sincere appreciation for the contribution and support of all its employees towards the performance of the Company. Your Company is happy to have a management team comprising of professionals and experienced one. The Company continues to remain focused and sensitive to the role of human resources in optimizing results in all its areas of working and its industrial relations also continue to be cordial.

a) Generation of Hydro Power was 31148700 KWH units during the year 2025-26, out of which No Units were transmitted to Textile Division (Intersegment), as the entire generated Units i.e. 31148700 KWH were sold to Eon Kharadi Infrastructure Pvt. Ltd. As against units sale of 25353400 KWH to Kharadi Infrastructure Pvt. Ltd. During 2024-25.
b) Production of Yarn during the year 2025-26 was increased by 50.09% and Sales of Yarn and Fabric during the year 2025-26 were decreased by 26.34% as compared to previous year.
c) The Direct Export & Merchant Export of Yarn was ? 1 NIL during the year 2025-26 as compared to Direct Export & Merchant Export of Yarn and Fabric of ? 1 NIL during the year 2024-25.
e) RAW MATERIAL: Total raw material (Cotton + Yarn + Waste) cost for the year 2025-26 was ? 5905.77 Lakhs compared to ? 9920.00 Lakhs for the previous year. Cost of material consumed to sales ratio (Cotton + Yarn + Waste) for the period ended 31.03.2026 is 59.45% as compared to 80.45% for the previous year.

1 POWER AND FUEL : a) The cost of power was 1378.95 Lakhs for the year 2025-26 as compared to 1173.25 Lakhs for the year 2024-25. Cost of power is 50.83 per kg of the production for the year 2025-26 as compared to power cost of 64.35 per kg of production for the previous year g) SALARY AND WAGES (EMPLOYEES BENEFIT COSTS): The salary and wages & other employee benefits cost was 1241.95 Lakhs for the year 2025-26 as compared to 921.32 Lakhs for the year 2024-25. The Company has taken step to fully provide for the gratuity liability h) INTEREST AND FINANCE COST: The interest and finance cost was 1003.42 Lakhs for the year 2025-26 compared to 1077.76 Lakhs for the year 2024-25. 1) PROFITABILITY: The Company earned Profit before Depreciation, Interest and Tax of 1611.30 Lakhs in the current year as against 1737.98 lakhs in the previous year. The Company earned Profit before Depreciation and Tax of 607.87 Lakhs in the current year as compared to 660.22 Lakhs in the previous year. The Company earned Profit before Tax (after interest and depreciation) of 102.98 Lakhs and Profit after Tax of 32.36 Lakhs for the current financial year under review as against 89.86 Lakhs and 65.24 Lakhs respectively for the previous financial year j) RESOURCE MOBILISATION: The Gross Fixed Assets (excluding capital work in progress) as at 31 March, 2026 were 21902.14 Lakhs as compared to 21901.07 Lakhs in the previous year. During the year, the Company had purchased fixed assets amounting to 2.95 Lakhs.

The Company earned Profit before Depreciation, Interest and Tax of 1611.30 Lakhs in the current year as against 1737.98 lakhs in the previous year. The Company earned Profit before Depreciation and Tax of 607.87 Lakhs in the current year as compared to 660.22 Lakhs in the previous year. The Company earned Profit before Tax (after interest and depreciation) of 102.98 Lakhs and Profit after Tax of 32.36 Lakhs for the current financial year under review as against 89.86 Lakhs and 65.24 Lakhs respectively for the previous financial year

The Gross Fixed Assets (excluding capital work in progress) as at 31 March, 2026 were 21902.14 Lakhs as compared to 21901.07 Lakhs in the previous year. During the year, the Company had purchased fixed assets amounting to 2.95 Lakhs.

The change in Return on Net Worth compared to the previous financial year is due to decrease in business and profitability.