P.M. Telelinnks Ltd Management Discussions

As of April 2023, India was the worlds second-largest producer of crude steel, with an output of 10.14 MT. In FY22, the production of crude steel and finished steel stood at 133.596 MT and 120.01 MT, respectively. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

The Indian steel industry is classified into three categories - major producers, main producers and secondary producers.

The Company was incorporated as a Limited Company on 05.03.1980 and was engaged in the business of manufacturing of Cold Roll Steel. In 1997 the Company entered in to Pipes and Tubes of HR and CR steel. In 1999 the company expanded and added galvanizing of tubes and ventured in to different shapes of Tubes and also added Jointing Kits for Telecom Cables.

As at 31^st March, 2026, the Company was engaged in the trading of iron and steel products, including TMT bars, rebars, tower parts, etc.

Company has recorded the revenue of Rs. 29,508.50 (in thousand) during 2025-26 as compared to Rs. 68,986.51 (in thousand) in 2024-25.

Other income in FY 2025-26 is Rs. Nil as compared to Rs. 38.95(in thousand) for FY 2024-25. Expenditure

The expenses for 2025-26 are Rs. 30,825.18 (in thousand), compared to Rs. 68,894.00 (in thousand) in 2023-24.

There is Loss before Tax of Rs. 38,740.81(in thousand) for FY 2025-26 when compared to 2024-25 of Rs. 131.46 (in thousand).

The Profit After Tax for 2025-26 of Rs. (38,818.58) thousand as against Profit After Tax of Rs 49.54 thousand in the previous year 2024-25.

The EPS for 2025-26 is Rs. (3.85)

Risks are inherent to our business as our operating environment is complex, highly regulated, and dynamic. To attain our strategic growth objectives, protect the interests of all our stakeholders and meeting legal requirements we have an established process of identifying, analysing, and responding appropriately to all business risks. We have a well-embedded Risk Management Framework to ensure that we are well-placed to manage any adverse effect posed by financial, operational, strategic or regulatory related risks.

Our framework adopts appropriate risk mitigation measures for identified risks across functions. The process ensures that new risks, which might arise, or the impact of existing risks which might have increased, are identified and a strategy is put in place for mitigating such risks. The major risks identified by the management are regulatory, competition, supply chain disruption, cyber and data security.

Your Company has a robust and reliable system of internal controls commensurate with the nature of the business, and the scale and complexity of operations. The Company has adopted policies and procedures covering all financial, operating and compliance functions. These controls have been designed to provide a reasonable assurance over:

1. Effectiveness and efficiency of operations

2. Safeguarding of assets from unauthorised use or losses

3. Compliance with applicable laws and regulations

4. Prevention and detection of frauds and errors

5. Accuracy and completeness of the accounting records

6. Timely preparation of reliable financial information

The current system of Internal Financial Controls (IFC) is aligned with the requirement of the Companies Act 2013, The Internal Audit team (IA) function of the Company functionally reports to the Chairperson of the Audit Committee, thereby maintaining its objectivity.

Your directors are focusing to strengths its Domestic Market through expansion of its activities and will make the necessary investment when attractive opportunities arise.

India continues to remain a key growth market for the global steel industry, supported by infrastructure development, urbanisation, manufacturing activity and government spending, providing opportunities for sustained growth in domestic steel demand. However, the industry continues to face challenges such as volatility in steel prices, fluctuations in raw material and energy costs, geopolitical uncertainties, changing trade policies and competitive pressures. The Company remains focused on improving operational efficiencies, maintaining cost competitiveness and effectively managing these risks while leveraging emerging opportunities in the domestic steel market.

Your company has been following the philosophy of providing the highest quality products and services at the lowest possible prices. Your Companys philosophy to provide high class quality products i.e., full value for money, to consumers would greatly benefit in the long run. Your company will continue to follow this philosophy in the new operations that it is likely to undertake.

Your Company believes in creating an environment, wherein human resources derive a sense of purpose, passion and personal growth at work, leading to organizational performance. Towards realizing this, the company relies on the four pillars, namely, performance management, talent engagement, Capability development and maintaining cordial industrial relations. It also believes in review of its HR processes and systems on an ongoing basis to optimize costs, time and labour.

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, changes in government regulations and policies, tax regimes, economic conditions within India and the countries within which the Company conducts business and other such factors. The Company does not undertake to update these statements.