Mold-Tek Technologies Ltd Management Discussions

Mold-Tek Technologies Limited (MTTL) is among Indias leading providers of Civil and Mechanical Engineering services, specializing in Structural Steel Design & Detailing, Building Information Modeling (BIM), and Body-in-White (BIW) services. With a strong international presence, MTTL serves some of the largest construction, fabrication, automotive, and EPC companies across North America and Europe.

The Companys expertise is built on a dynamic team of young engineers guided by seasoned professionals with deep domain knowledge. Its core capabilities span Structural Steel Design & Detailing, Miscellaneous Metals, Pre-Engineered Metal Building (PEMB) Detailing, BIM solutions, and In-house Connection Design. These services are tailored to meet the requirements of Steel Fabricators, Architects, Automotive OEMs, and General Contractors worldwide.

MTTL is consistently focused on building long-term relationships with its customers, dedicating significant resources to quality control, training, and analytics to deliver the best possible outcome. Our culture instills in every employee the drive to continuously learn and enhance project delivery and quality, ensuring we meet customer requirements while creating maximum value.

As an ISO 9001:2015 certified organization, Mold-Tek ensures rigorous compliance and quality checks across every process, supported by robust training programs, well-defined systems, and a commitment to continuous improvement.

In addition, being ISO 27001:2005 certified for Information Security Management Systems, Mold-Tek follows strict protocols to safeguard data in all formats—paper, electronic, and physical. Our risk assessment framework is built on the principles of Confidentiality, Integrity, and Availability, while the ISMS process encompasses regular training, defined objectives, and implementation of appropriate controls.

All our structural steel detailing projects are carried out using advanced technical software that enables clash and interference checks during the detailing phase, thereby reducing rework and saving significant time and resources at the site. Our team is trained through AISC/NISD-approved programs, and our strong in-house engineering expertise allows us to thoroughly understand and efficiently execute projects.

MTTL operates from five delivery centers in India and maintains sales offices in the USA and Europe. This global delivery model enables round-the-clock project support and the flexibility to deploy resources at client locations when required.

Guided by its vision and leveraging advanced technologies to enhance value for clients, Mold-Tek Technologies has established itself as a trusted name in the civil and mechanical engineering services sector. The Companys innovative solutions have helped it sustain a strong competitive edge in the marketplace.

Engineering and Construction Sector Overview (2024)

In 2024, the U.S. construction market was valued at approximately USD 1.77 trillion, with real-term growth estimated at 1.5% following a 1% advance in 2023. Forecasts suggest a moderate upward trend ahead, buoyed by government infrastructure programs and private-sector commitments.

On the global front, steel demand is anticipated to rebound by 1.7% in 2024, reaching 1.793 billion metric tons, with further growth of 1.2% projected in 2025. India is expected to be the main driver of this growth, while Chinas demand stabilizes. In Europe, demand should return modest gains in 2024 and strengthen by 5.3% in 2025.

Globally, the construction market reached USD 15.46 trillion in 2023 and is forecasted to climb to USD 19.52 trillion by 2027 at a CAGR of 6%.

Despite a strong post-pandemic recovery, the U.S. construction sector is facing headwinds from aggressive interest rate hikes, rising land and material costs, which are dampening residential activity. However, non-residential and infrastructure segments are being supported by legislation like the 2021 Infrastructure Law and the Inflation Reduction Act.

The manufacturing sector is slowing from its post-lockdown surge. Nevertheless, demand for light vehicles is projected to improve, with an 8% rebound expected in 2023 and another 7% gain in 2024 pushed by moderating interest rates. This upturn is a positive indicator for steel and construction-related demand.

North America Construction Market Analysis:

The North American construction sector is estimated to be worth USD 2.59 trillion in 2024 and is anticipated to expand at an annual growth rate of 3.7% through to 2028. Robust investment in non-residential infrastructure especially in manufacturing, transportation, and utilities is a key driver of this upward trend.

E-commerce growth continues to reshape industrial real estate. While demand initially surged, 2024 saw cooling after years of expansion. Notably, Asian logistics firms doubled their warehouse leasing in U.S. hubs like New Jersey and Los Angeles due to global trade shifts, despite an overall downturn in warehouse absorption. Simultaneously, a record 1.45 billion sq. ft of new warehouse space was built between 2022–2024, leading to the highest vacancy rates in over a decade (7.3%). Prominent buyers like Brookfield seized the moment—acquiring 53 warehouses worth USD 428 million in key Texas and mid-Atlantic markets.

In Canada, significant government backing is bolstering construction activity. Innovative programs such as the Canada Housing Infrastructure Fund (C$6 billion), the Affordable Housing Fund, the Housing Accelerator Fund, and the Rapid Housing Initiative are accelerating housing and infrastructure development. For example, the Infrastructure for Housing Initiative has already earmarked C$140 million to upgrade water and sanitation systems in Manitoba, equipping the region to support approximately 15,000 new homes.

The construction landscape is also being energized by transformative megaprojects and technological adoption. Projects like the Site C Clean Energy initiative in British Columbia, the GO Expansion in Ontario, and Torontos Ontario Line subway are fueling urban and sustainable infrastructure growth. Additionally, emerging technologies such as BIM, AI, IoT, prefabrication, modular construction, and 3D printing are fostering improved efficiency and innovation across the industry.

With industrial absorption cooling, e-commerce logistics undergoing shifts, and strong government infrastructure stimulus, the North American construction sector in 2024 reflects both dynamic challenges and compelling opportunities particularly for businesses offering structural and detailing engineering services.

Indias Engineering Export Performance:

Indias engineering exports reached a record USD 116.67 billion in fiscal year 2024–25, marking a robust 6.74% increase over the USD 109.30 billion recorded in FY 2023–24. This surpassed the previous peak of USD 112.10 billion in FY 2021–22.

According to EEPCs Quick Estimates, engineering exports accounted for 26.67% of Indias total merchandise exports in FY 2024–25, up from 25.01% previously.

Panel-wise, out of 34 engineering categories, 22 segments posted export growth during April–November 2024–25, while

12 segments recorded a drop. On a cumulative basis, 27 panels grew, whereas 7—including iron and steel and certain non-ferrous sectors—declined.

Regionally, the U.S. remained Indias largest market, with engineering exports surging 8.7% to USD 19.15 billion in FY 2024–25. Other markets like the UAE, Singapore, Nepal, Japan, and France also registered notable gains. In November 2024, top regional growth was seen in Sub-Saharan Africa (+29.4%), ASEAN (+25.7%), and Other Europe (+23.6%), while North America (~20%) and the EU (~17%) remained major markets.

India remains a strong performer in global steel output, supported by solid infrastructure spending, healthy macroeconomic fundamentals, and rising investment in GDP—particularly in the residential space, driven by affordable housing and urban demand growth.

The capital goods sector is expected to ride this wave of infrastructure and renewable-energy investments. Rising demand in automotive and consumer durables is bolstered by robust private consumption trends.

Opportunities and Threats

The engineering services industry presents strong opportunities driven by rising global infrastructure investments, increasing adoption of digital engineering tools such as BIM, and sustained demand for structural steel detailing and specialized mechanical design services. Expanding opportunities in plant engineering, special-purpose machinery, and hybrid/ retrofitting solutions further broaden our growth prospects. At the same time, the Company remains cautious of external threats, including macroeconomic slowdowns, volatility in the automotive and EV sectors, regulatory uncertainties in global markets, cybersecurity challenges, and competitive pricing pressures. By diversifying service offerings, expanding into newer geographies, and strengthening our risk management framework, MTTL aims to mitigate these threats while positioning itself to capture long-term opportunities.

Financial Performance Overview:

The financial statements of Mold-Tek Technologies Limited and its subsidiary are prepared in accordance with the Indian Accounting Standards (referred to as ‘Ind AS) prescribed under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to financial statements.

The following table gives an overview of the standalone and consolidated financial results of the company: in Lakhs

	Standalone		Consolidated
Particulars	FY	FY	FY	FY
	2024-25	2023-24	2024-25	2023-24
Revenue from
	12,899.83	14,617.23	14,584.90	16,074.18
operations
Earnings before
interest, tax,
depreciation and	2,324.89	4,419.53	2,353.49	4,439.72
amortization (EBITDA)
(before other income)
Profit Before Tax (PBT)	1,603.92	3,691.03	1,631.52	3,709.58
Profit After Tax (PAT)	1,189.17	2,766.50	1,216.78	2,784.90
Earnings per share ( 2
	4.16	9.75	4.26	9.81
Face Value)

Operational Performance Overview:

On a Standalone level, the Company achieved revenue of

12,899.83 Lakhs in FY 2024-25 as against 14,617.23 Lakhs during the previous year FY 2023-24, i.e., a down of 11.75%.

On a Consolidated level, Company achieved revenue of

14,584.90 Lakhs in FY 2024-25 as against 16,074.18 Lakhs during the previous year FY 2023-24, i.e., a down of 9.26 %.

Standalone Profit after Tax for FY 2024-25 is 1,189.17 Lakhs as against 2,766.50 Lakhs in FY 2023-24, a drop of 57.02%.

Companys Standalone Earnings per share (EPS) for FY 2024-25 is 4.16 as against 9.75 in FY 2023-24, a drop of 57.02 %. Consolidated Profit after Tax for FY 2024-25 is 1,216.78 Lakhs as against 2,784.90 Lakhs in FY 2023-24, a drop of 56.31%.

Companys Consolidated Earnings per share (EPS) for FY 2024-25 is 4.26 as against 9.81 of FY 2023-24, a drop of 56.31%.

Civil Engineering Services (CES) generated a revenue of

10,498.16 Lakhs for the financial year 2024-25 compared to

12,208.68 Lakhs for the financial year 2023-24, i.e., a down of 14.01%, and the Mechanical Engineering Services (MES) generated a revenue of 2,401.67 Lakhs for the financial year 2024-25 compared to 2409.08 Lakhs for the financial year 2023-24, i.e., a down of 0.31%.

Key Financial Ratios:

Particulars	FY 2025		FY 2024	% Change
Debtors Turnover	3.55		3.53	0.68%
Current Ratio	3.21		5.66	-43.36%
Particulars		FY 2025	FY 2024		% Change
Debt Equity Ratio		NA	NA		No Debt
Net Profit Margin		9.22%	18.93.%		-51.29%
Return on Net worth (%)		20%	37%		-45.42%

Return on net worth decreased on account of decrease in profitability during the FY 2024-25.

Net profit margin decreased on account of decrease in revenue during the FY 2024-25.

Future Outlook – Civil and Structural Division:

The Civil and Structural Division experienced a mixed year, marked by temporary slowdowns in US construction activity due to political uncertainty during the election period. This impacted demand during Q3 and Q4 of FY 24–25. However, as stability returns with the new administration, early signs of recovery are evident with improved order inflows and renewed momentum across our key markets. The division is well-positioned to capitalize on this upturn.

Encouragingly, the order book has strengthened in recent months. In Q1 of FY 25–26, we secured major contracts including a 17,000-tonne casino project, a 6,300-tonne stadium project, and a 22,000-tonne aircraft manufacturing facility. These large-scale projects are expected to gather full execution momentum by Q2 and provide a strong base for growth in the coming year.

Our participation in global industry platforms, such as The Precast Show 2025 in Indiana, USA, has opened new opportunities in the precast concrete segment. In parallel, our Pre-Engineered Metal Building (PEMB) business has gained traction, with several previous clients re-engaging with us for new assignments. These developments highlight growing client trust and present significant opportunities for expansion in the structural and modular construction space.

A notable milestone during the year was the signing of an MoU with Interarch Building Solutions Limited, one of Indias leading pre-engineered steel building companies. Under this arrangement, Mold-Tek will exclusively handle the designing, stamping, detailing, and project management for Interarchs exports to the US. This strategic alliance provides a recurring commission-based revenue stream while strengthening our positioning as a comprehensive solutions provider for the US construction industry.

On the operational front, our continued investment in automation tools such as API and Tek Assist has yielded tangible benefits, with productivity improvements leading to better cost management. Cross-training programs have also been rolled out to enhance workforce agility and ensure optimal deployment across projects.

Looking ahead, the Civil and Structural Division remains optimistic about its growth prospects. With a decent order book, large-scale project wins, strengthened client relationships, new alliances in PEMB and precast segments, and strong financial reserves, the division is well-placed to deliver sustainable growth. As US policy direction stabilizes, and as Mold-Tek continues to expand its capabilities and service offerings, the division expects to strengthen its leadership position in engineering and detailing services while improving profitability in FY 25–26.

The company also retains a strong financial foundation, with cash reserves of over _42 crore invested in fixed-income instruments. This debt-free position provides ample flexibility to pursue inorganic opportunities. In line with this, Mold-Tek is actively evaluating acquisitions in structural design, civil and architectural services in the US market, supported by the planned appointment of an experienced M&A consultant to accelerate the process.

Future Outlook - Mechanical Division:

As we close FY 24–25, the Mechanical Division continues to remain aligned with Mold-Teks long-term strategic roadmap. The year witnessed a moderation in inflows from the Electric Vehicle (EV) and automobile sector due to slowing adoption trends and regulatory uncertainties across key markets. Despite this temporary slowdown, the division remains resilient, with a renewed emphasis on diversification and capability expansion to reduce dependence on cyclical industries.

During the year, we strengthened our Business Development team, expanding resources in Q2 to actively pursue opportunities in adjacent sectors. Early traction has been achieved in Special Purpose Machinery (SPM) and Plant Engineering, where we have established promising leads. These engagements are expected to mature into firm orders in the coming quarters, providing an alternate growth engine and enhancing the stability of our project pipeline.

The EV sector, while still a critical part of our long-term strategy, has faced challenges in FY 24–25, with adoption rates tapering and consumer sentiment shifting toward hybrid and transitional solutions. In response, we have recalibrated our approach to reduce reliance on EV-only programs. Our renewed focus includes hybrid technologies, retrofitting services, and process engineering solutions, ensuring that our engineering capabilities remain relevant and in demand even amid sectoral volatility.

At the same time, the Mechanical Division is prioritizing sectoral diversification to capture opportunities in industries such as manufacturing equipment and general engineering. This approach not only broadens our revenue base but also positions us to leverage our core expertise across multiple high-demand applications. These initiatives are expected to mitigate risks from cyclical slowdowns while creating a balanced and sustainable portfolio.

Operational excellence continues to be at the heart of our growth strategy. The division is pursuing automation, workflow streamlining, and process optimization to enhance delivery efficiency. These measures are designed to boost productivity, shorten turnaround times, and improve resource utilization, thereby reinforcing our ability to deliver high-quality solutions at competitive costs.

Looking ahead, we are confident of leveraging macroeconomic tailwinds expected in H2 FY 25–26, particularly from the manufacturing and industrial sectors. With diversified service offerings, strengthened business development efforts, and enhanced execution capabilities, the Mechanical Division is well-positioned to capitalize on new opportunities and deliver consistent value to clients.

Key Risks and Mitigation measures at enterprise level:

As a global player in Engineering and Technology Solutions with a growing footprint in international markets, the Company remains exposed to a range of enterprise-level risks that may impact operations, financial performance, and long-term strategy. Recognizing this, the management team undertakes periodic assessments of potential risks and continuously strengthens mitigation frameworks to safeguard sustainable growth and operational resilience.

The Board of Directors provides strategic oversight by closely monitoring risk exposures and ensuring proactive response mechanisms are implemented. With structured reviews and timely interventions, the Company is committed to minimizing risk exposure while maintaining agility to adapt to dynamic market conditions.

Cyber security and Digital Resilience

Nature of Risk: With increasing reliance on digital platforms, risks of cyber-attacks, unauthorized access, and IT disruptions pose potential threats to operational continuity and the protection of client-sensitive data. Such events could result in data breaches, reputational damage, or disruptions in client delivery.

Mitigation Measures: The Company has instituted a comprehensive cybersecurity framework that integrates robust firewalls, multi-layered access controls, and automated monitoring systems. Periodic validation exercises are undertaken by divisional heads, supported by regular vulnerability assessments and penetration testing. Employee-focused cybersecurity training continues to reinforce awareness and strengthen organizational resilience.

Data Privacy and Regulatory Compliance

Nature of Risk: The handling of sensitive client and employee information entails exposure to data privacy risks, particularly under diverse jurisdictional regulations. Any breach could lead to regulatory penalties and loss of stakeholder trust.

Mitigation Measures: The Company actively upgrades business systems to meet evolving data privacy requirements. Initiatives include regular privacy impact assessments, deployment of encryption and privacy-enhancing technologies, and implementation of a structured data governance framework. Independent reviews are also carried out to ensure compliance with global data protection norms.

Internal Control Systems and Adequacy:

The Company maintains a well-structured internal control environment tailored to its scale of operations and complexity of business. These systems provide reasonable assurance on the integrity of financial reporting, safeguarding of assets, adherence to legal and regulatory requirements, and prevention of unauthorized transactions.

Clearly defined delegation of authority policies ensure accountability across functions, while comprehensive planning and budgeting processes help align annual and long-term business objectives with resource allocation. The internal audit function, operating independently, conducts systematic reviews of critical business processes and reports directly to the Audit Committee, thereby reinforcing transparency and governance.

Human Resources:

At Mold-Tek Technologies Limited (MTTL), people remain the cornerstone of our success and long-term sustainability. We view our workforce as strategic assets who drive competitiveness, foster innovation, and sustain client trust.

Our focus remains on attracting the best talent, nurturing their skills through continuous training, and fostering an inclusive, safe, and collaborative workplace. Structured development programs ensure that employees are future-ready, equipped to address the evolving needs of global clients.

As on 31^st March, 2025, the Companys employee strength stood at 1,174, reflecting our continued investment in expanding delivery capabilities and strengthening domain expertise. The emphasis on employee engagement, retention, and career development remains central to our human capital strategy, ensuring that MTTL sustains its edge in a competitive market.

Disclosure of Accounting Treatment:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (IndAS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 read with Section 133 of the Companies Act, 2013.

Cautionary Statement:

In compliance with relevant securities laws and regulations, certain statements in the Management Discussion and Analysis should be considered "forward-looking statements" regarding MTTLs objectives, plans, estimates, and expectations. It is important to acknowledge that actual results may differ materially from those expressed or implied. Factors that could significantly impact the Companys operations include economic conditions affecting market demand, supply, and pricing dynamics in its operational markets, changes in governmental regulations, tax laws, and other statutes, as well as unforeseen events such as epidemics, pandemics, or natural disasters beyond our direct or indirect control.