P S Raj Steels Ltd Management Discussions

P S Raj Steels Limited is engaged in the business of Manufacturing of Stainless Steel Tubes & Pipes. From manufacturing process involved, it may be classified as a stainless steel tubes and pipes manufacturer. The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. The government is backing the industry through favorable industrial reforms. Indian steel demand is expected to boost by Infrastructure & Construction development sustained by industrial, manufacturing and capital goods and be stimulated by the automotive, railways and consumer durable sectors. Your Company has an immense capability to keep pace with the growing requirement of the industry. Besides, we always look forward to cope with technology advancement to grasp the all available opportunities.

1. ECONOMIC OVERVIEW

a) Global Economy ¹ :

In CY 2024, the global economy demonstrated resilience, registering a growth of 3.3%, notwithstanding challenges such as geopolitical unrest, persistent supply chain disruptions and inflationary pressure. The economy globally is projected to continue to grow in 2025. While there is a reducing intensity in tariffs globally, developments in this area including trade agreement between major blocks like United States of America, United Kingdom, European Union, China among others, and a ceasefire deal between Russia and Ukraine, also between Iran and Israel will be key factors impacting the economic activities.

b) Economic Outlook ¹:

Looking ahead, the global economy is projected to maintain its growth trajectory, with GDP growth forecasted at 3% for CY 2025.The tension around trade and high levels of policy uncertainty are expected to have a significant impact on the economic activity. Global inflation is expected to moderate to 4.2% in 2025 and 3.6% in 2026, approaching central bank targets. While advanced economies are likely to contain inflation more effectively than emerging markets, rise in protectionism and geopolitical tensions around trade will significantly impact prices of domestic products especially in United States. Inflation in the services section in major economies like the United States and the Europe is expected to remain above pre-pandemic levels. The monetary policy remains divergent, with some central banks maintaining caution in their easing cycles. Fiscal policy in advanced economies is expected to tighten in 2025, with developing economies implementing comparatively moderate adjustments.In United States, growth is expected to be 1.9% in 2025, supported by consumer demand, rising incomes, productivity gains, and accommodative financial conditions. However, policies under the new U.S. administration—particularly on trade, taxation, immigration, and regulatory changes—may have diverse implications on the economy. The Chinese economy continued to grow in 2024, witnessing a growth rate of 5%.

c) India’s Economy Overview ²:

India continued to maintain its position as the fastest growing major economy, with a robust GDP growth of 6.5% this FY 2024-25, despite a challenging global environment marked by volatility. Strategic interventions under government-led schemes, particularly those focused on infrastructure development and expanding rural connectivity, played a pivotal role in catalyzing economic momentum. These efforts spurred economic activity across sectors, with manufacturing, agriculture and technology benefitting from sustained government support.

Inflation is projected to moderate and be rangebound, 4.0-4.5% in the near term, supported by favourable food price trends. The moderation in inflation has enabled the Reserve Bank of India to adopt a more accommodative stance, with interest rate cuts anticipated to stimulate consumer spending and credit growth. The Government of India remains focused on fiscal consolidation, employment generation, and boosting capital investment.

Overall, Indias economic outlook remains strong, driven by robust domestic demand, policy support, and sectoral resilience. The Indian economy is expected to sustain its growth momentum in FY 2025-26, with GDP expansion expected to be 6.4%.

Note:

1. Reference /data referred from IMF Report named as "World Economic Outlook"

2. Reference /data referred from IMF Report named as "World Economic Outlook" and PIB.

2. INDUSTRY OVERVIEW:

a) Global Steel Industry:

The global outlook for the stainless steel industry is strongly positive, with sustained demand growth driven by automotive, construction, infrastructure, and sustainable manufacturing trends, especially in emerging markets such as Asia-Pacific and India.

Stainless Steel is the fastest-growing major metal globally, clocking an impressive 5.4% CAGR far outpacing alternatives like aluminium and copper, Stainless Steel growth rate is more than 2x than that of Copper and Carbon Steel. Stainless Steel Industry is on a powerful upward trajectory with global consumption expected to grow 49.8 MTPA in 2022 to 70.8 MTPA by 2030 at a steady CAGR of 4.0-4.5%.

b) Indian Steel Industry:

India remains the worlds second-largest steel producer and second-largest stainless steel Producer and one of the strongest demand drivers, with steel demand expected to grow by 8% in 2025. Demand is expected to reach 200-210 million tonnes by 2030, driven by strong expansion in steel-intensive sectors such as infrastructure, housing, transportation, power, and renewable energy.

With India per capita Stainless Steel Consumption at just 2.8KG significantly below the global average of 6 KG and far behind China’s 20.1 KG, it represent a vast untapped market poised for rapid expansion. India in particular stands out with a remarkable 7.5% CAGR, nearly doubling its stainless steel consumption from 3.5 MTPA in FY 20 to a projected 6.5 MTPA by FY 30, making it one of the fastest-growing markets globally.

Growth is further supported by rising demand for consumer durables and capital goods. Additionally, government initiatives, including Production-Linked Incentives (PLI) schemes and increased investments in infrastructure and manufacturing, have played a crucial role in boosting steel production and consumption. In the Union Budget for FY 2025-26, the Government of India has maintained capital expenditure (capex) as a share of GDP at the same level as 2024, reinforcing its commitment to industrial growth. While steel demand remains robust in India, steel prices are expected to remain range bound, capped by the threat of Chinese imports.

3. Segment-wise or Product wise Performance:

Currently your Company is engaged in one type of product and involves one type of process that is manufacturing of Stainless Steel Pipes and Tubes so there is no segment wise or product wise performance available.

4. Company Overview:

Our Company was originally incorporated as ‘P S Raj Steels Private Limited’ as a private limited company under the Companies Act, 1956 on November 09, 2004 pursuant to a Certificate of Incorporation bearing CIN U27109HR2004PTC035523 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Thereafter, our Company was converted into a public limited company from a private limited company pursuant to a special resolution passed by the shareholders of our Company on May 17, 2024 consequent to which the name of our Company changed from ‘P S Raj Steels Private Limited’ to ‘P S Raj Steels Limited’ and a fresh Certificate of Incorporation bearing no. U27109HR2004PLC035523 was issued by the Registrar of Companies, NCT of Delhi and Haryana ("ROC") on August 06, 2024.

The Company’s equity shares were listed on the NSE Emerge Platform on 19th February, 2025 and became a listed entity on NSE Emerge Platform w.e.f. 19th February, 2025. The Company has raised the total fund of Rs. 28.28/- Crore through SME IPO of the Company. The Company’s SME IPO has received an exceptional response being oversubscribed by 9.16 times led by the strong participation from Retail Investors, Non-Institutional Investors and Qualified Institutional Buyers (QIBs).

5. Risk and Concerns:

Due to Recent BIS Regulations the import of Stainless Steels coils from China Vietnam has drastically reduced creating a high demand for domestic Steel Product (Steel Coils) which is a raw material. This pushed a price of Raw Material industry wide. ⁶

6. Internal Control System and their Adequacy:

Your Company has adequate internal control systems commensurate with its size and operations, although not documented. The Company regularly gets its accounts audited .The Company has an effective internal control system that is commensurate with its size and nature of its Business Operations which is periodically reviewed and strengthened through revised standard operating procedures. The Company complies with all applicable Accounting Standards in maintaining its books of account and in the preparation of Financial Statements.

7. Financial Performance with respect to Operational Performance:

Financial Performance during the year 2024-2025 are as follows:

Particular	2024-2025 (Rs. In Lakhs)	2023-2024 (Rs. In Lakhs)
Turnover	26627.15	29775.44
Sales and Other Income	26630.55	29776.39
Operating Profit (PBIDT)	1230.27	1081.55
Interest Cost	137.44	152.16
Profit before Depreciation (PBDT)	1092.83	929.39
Depreciation	96.41	82.41
Profit before tax	996.42	846.98
Provision for Taxation	255.47	213.32
Profit after Tax	740.95	633.66

8. Industrial Relations and Resource Management:

The Company during the previous year continued its record of good industrial relations with its employees & Other associated Shareholders. During the year various initiatives had been taken to improve the performance and productivity levels in various departments of the Company. The Company conducts training sessions on various topics ranging from safety, productivity, handling of hazardous products etc. that help to train employees to overcome operational constraints. The Company has its in house technical centre in the plant to train the new recruits before their placement that helps in optimum utilization of resources as well as maintaining quality standards. It also indulges into and implements various HR initiatives and activities including employee welfare, special rewards, performance review system and various employee motivation activities.

9. Cautionary Statement:

Management Discussion and Analysis Report may be "forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied depending upon global and Indian demand-supply conditions, changes in government regulations, tax regimes, and economic developments within India and overseas.

For and on behalf of the Board of Directors

Place: Hisar	Deepak Kumar	Gaurav Gupta
Date: 06/09/2025	Managing Director	Whole-time director
	DIN: 00677030	DIN: 00593822
	Add.: H.No. 164, Sector -9/11	Add.:H.No. 163, Sector -9/11
	Hisar -125001	Hisar -125001