Paramount Communications Ltd Management Discussions

ECONOMIC REVIEW Global Economy

The global economy remained influenced by multiple headwinds, including inflationary trends, tightening monetary policies, supply chain disruptions, and geopolitical uncertainties. Despite these challenges, demand from the infrastructure, renewable energy, and construction sectors provided resilience to industrial and manufacturing activity. Emerging economies, particularly India, continued to demonstrate strong growth momentum, contributing significantly to global economic expansion.

The economic outlook for the world remains stable, but underwhelming, with growth estimated by the International Monetary Fund (IMF) at 3.3% in CY 2024, similar to the level in CY 2023, and projected to return back at 2.8% in CY 2025, before a slight uptick at 3.0% in CY 2026. Global manufacturing slowed down due to supply chain disruptions and weak external demand, especially in Europe and parts of Asia.

The United States drove global growth, with GDP expansion estimated at 2.8% in 2024, supported by strong consumer spending, favorable financial conditions, and a resilient labor market. However, the current trade-related disruptions are expected to impact growth, with projections indicating deceleration to 1.8% in 2025.

Policy-generated disruptions to the ongoing disinflation process interrupted the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. There was a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms to balance the risks.

Global headline inflation is estimated to have reached 5.9% in CY 2024 and is projected to decline to 4.5% in CY 2025, and further to 3.5% in CY 2026, converging back to the target earlier in advanced economies than in emerging market and developing economies. Fiscal policies were more stimulative, with the biggest gains in spending expected from pension, healthcare and defense sectors. Global disinflation continued, with headline inflation declining from 6.8% in 2023 to an estimated 4.7% in 2024, and this is projected to fall further to 4.3% in 2025 and to 3.6% in 2026.

Moving forward, inflation is projected to decline further to 3.4% in 2025, although this outcome will depend on how trade restrictions evolve. Global inflationary pressures are easing in most economies, but elevated inflation is still persistent in a few countries, driven by rising energy and food prices and fiscal instability. Service sectorinflation is moderating as well, since foreign tourism is propping up service sector inflation.

(Source: https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/ worldeconomic-outlook-update-january-2025#Overview)

Future Outlook

Key risks to the outlook include increased policy uncertainty, adverse changes in trade policies, rising conflicts, geopolitical tensions, higher inflation, more frequent extreme weather events due to climate change, and slower growth in major economies. On the positive side, faster progress in reducing inflation and stronger demand in key economies could result in better-than- expected global activity. The modest growth outlook and numerous challenges underscore the need for decisive policy action.

Region-wise Growth

(Estimated & Projected) (In %)

WORLD ECONOMIC OUTLOOK APRIL 2025

GROWTH PROJECTIONS

(REAL GDP GROWTH, PERCENT CHANGE)

GLOBAL ADVANCED EMERGING MARKET &

ECONOMY ECONOMIES DEVELOPING ECONOMIES

3.3

IMF.org/pubs

(Source: IMF World Economic Outlook, April 2025)

The World Bank report says global growth will stabilize as inflation approaches the target levels, with ongoing monetary easing supporting activity in advanced economies and emerging markets and developing economies (EMDEs). It will result in global expansion from 2025 to 2026, averaging 2.7% annually, driven by stronger trade and investment. While the emerging economies are estimated to grow by 4.2% and 4.3%, respectively, for the years 2025 and 2026, the advanced economies will be seen growing at 1.9% and 1.8%, respectively, for the same period.

Indian Economy

India continues to remain one of the fastest growing major economies. Despite global uncertainties such as inflationary pressures, volatile commodity prices, geopolitical tensions, and supply chain realignments, the Indian economy has demonstrated resilience supported by robust domestic demand, structural reforms, and strong government-led capital expenditure.

As per the second advance estimates by the National Statistics Office (NSO), the Ministry of Statistics and Programme Implementation (MOSPI), Indias real GDP is estimated to grow by 6.5% in FY 2024-25, as compared to 8.2% in FY 2023-24. Sound fiscal policies, a well-calibrated monetary framework and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth.

Macro-economic fundamentals continue to remain strong, and economic growth is poised to sustain the momentum driven by robust domestic demand, steady investment activity, ongoing policy-driven infrastructure development, and a pick-up in government spending.

Growth in the services sector is expected to be driven by healthy activity in financial, real estate, professional services, public administration, defense, and other services. Decline in unemployment rates from 6% to 3.2% in FY 2024-25 gave rise to the disposable incomes in the hands of population and has driven an increase in household consumption, boosting demand across various sectors.

Retail inflation in India stood reduced from 5.4% in FY 2023-24 to 4.6% in FY 2024-25, aided by various government initiatives and monetary policy measures, indicating a promising outlook for India in the coming years. This is largely driven by a decrease in core services inflation and fuel price inflation. The Governments administrative measures such as strengthening of buffer stocks for essential food items, open market releases and efforts to ease imports during supply shortage have been crucial in stabilizing inflation.

According to the Reserve Bank of India (RBI), CPI inflation is forecasted to decline further in FY 2025-26. However, continued uncertainty in global financial markets, coupled with volatility in energy prices and adverse weather events, presents upside risks to the inflation trajectory.

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2097892)

Tariff imposition by United States

As the largest trading partner for most economies, United States President Donald Trump recently imposed a sweeping set of steep additional tariffs on imports across Europe and the Asia-Pacific region. Trump doubled Indias tariffs to 50% by adding an extra 25% duty on top of the previously announced rate as part of his efforts to pressure Russia to end the Ukraine conflict. He imposed an ongoing 25% tariff on Indian imports, as well as a secondary tariff of 25% on Indias economic dealings and its crude oil trade with Russia, citing national security and foreign policy concerns.

The combined tariff of 50% on Indian exports is expected to reduce demand for Indian goods substantially, with the effect of these tariffs set to come into force on August 27, 2025. These sanctions are typically a foreign policy and national security tool used to apply political pressure on countries to change their behavior, unlike tariffs whose main purpose is to raise revenue for the government and to protect domestic industries from foreign competition by making imported goods more expensive.

With these tariffs expected to remain in place for the remainder of Trumps presidency, these are expected to drag growth, particularly on investments and exports. According to Moodys Analytics, some companies in these countries may slash prices to maintain volumes, and this will affect the performance of these companies in the form of lower margins, a squeeze on wages, and investment.

Future Outlook

Currently the fifth-largest economy, India continues to maintain its position as the fastest-growing major economy for the next two fiscal years. According to the January 2025 edition of the World Banks Global Economic Prospects (GEP) report, the economy is expected to grow at a steady rate of 6.7% in FY 2025-26 and FY 2026-27, moving much ahead of its global and regional counterparts.

With global growth expected at 3.0% in FY 2025-26, Indias impressive performance highlights its strong foundation and the significant role it plays in shaping the worlds economic direction. Supporting this outlook, the IMF also predicts Indias growth to remain strong at 6.5% for both FY 2024-25 and FY 2025-26. India is at a historical turning point, with the potential to leap confidently into the future.

Momentum in the service sector, a strong manufacturing base and significant government initiatives play a pivotal role in establishing India as a cornerstone of global economic stability. Indias growth story is indeed a powerful narrative of ambition, innovation, and unparalleled potential.

Strategic priorities for FY 2025-26 include fostering equitable and sustained growth through enhancement in employment intensity and growth potential of the economy, according to a report published by the Ministry of Finance in January 2025. Further, increased public capital spending, building productive capacities in research and development for critical technologies, and an unflinching commitment to fiscal responsibility and transparency are other key factors supporting growth.

A notable trend was the slowdown in global manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies.

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2097921)

INDUSTRY OVERVIEW Infrastructure sector

The infrastructure sector is a key enabler helping India become a US$ 30-trillion economy, as per NITI Aayogs vision of Viksit Bharat by 2047, elevating India to high-income status. India has made great progress in building public infrastructure over the past ten years, which is essential for economic growth, improving connections, trade and the overall quality of life. The infrastructure sector, which includes power, bridges, dams, roads, and urban infrastructure development, acts as a key catalyst for Indias economic growth, and also drives growth of the allied sectors such as townships, housing, built-up infrastructure, and construction development projects.

The Union Budget FY 2025-26 allocated 11.21 lakh crore (3.1% of GDP) for the national infrastructure sector, aligned with the governments vision of Viksit Bharat. It placed a strong emphasis on achieving multifaceted economic growth, such as enhancing the infrastructure sector, fostering public-private partnerships, ensuring inclusive development, boosting private sector investments, improving household sentiments, and increasing the spending power of Indias growing middle class.

The Prime Minister Gati Shakti National Master Plan (NMP), has been a fore-runner to bring effective reforms in the sector and has successfully reviewed 208 major infrastructure projects worth 15.39 lakh crore from various ministries that follow the PM Gati Shakti guidelines. India has the second-largest road network in the world, with National Highways stretching over 1,46,145 km, forming the main road system of the country.

In FY 2024-25, under the Pradhan Mantri Grameen Sadak Yojana, 7,71,950 km of roads were completed, with a total cost of ? 331,584 crore. The number of active airports in India grew from 74 in 2014 to 157 in September 2024, making India the third-largest domestic aviation market in the world. The total number of data centers is expected to increase from 138 in 2022 to 183 in 2025.

Expansion of National Highways in India

Under the Smart Cities Mission (SCM), 8,076 projects valued at ?1,64,706 crore have been planned, with 7,401 projects worth ? 1,54,351 crore already completed, according to data from the 100 Smart Cities.

Between CY 2004 and CY 2014, about 13.46 lakh houses were approved under schemes like the Jawaharlal Nehru National Urban Rural Mission (Jn NURM). This increased nearly 9 times between 2015 and 2024, with 118.64 lakh houses approved under the Pradhan Mantri Awas Yojana-Urban (PMAY-U). In terms of completed houses, while 8.04 lakh houses were built between CY 2004 and CY 2014, this grew by 11 times between CY 2015 and CY 2024, with a total of 88.32 lakh houses completed during this period.

Investments in Urban Sector

28,52,527 crore

2004-2014 (10 Years)	AMRUT 3,77,000 crore	SBM (U)	PM eBus Sewa 57,613 crore
Urban Infra		2,03,000 crore	NUDM
85,000 crore	\u2014	Urban Transport	8,586 crore
Housing	Smart Cities Mission	1,90,583 crore	CITIIS 2.0
38,203 crore	2,05,018 crore	PMAY (U) 18,07,361 crore	1,866 crore
Urban Transport 54,850 crore	HRIDAY 500 crore		Center of Excellence 1,000 crore

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2098788)

Indias growing Power Sector

Indias power sector is the third-largest in the world and plays a pivotal role in the countrys economic growth. With rising urbanization, industrialization, digitalization, and government-led infrastructure expansion, the demand for reliable and sustainable power continues to grow at a rapid pace.

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. Ministry of Power has made significant efforts over the past few years to make it one of the most diversified sectors in the world. In India, power generation ranges from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable and non-conventional sources such as wind, solar, agricultural, and domestic waste.

As per the National Infrastructure Pipeline project 2019-2025, the energy sector accounted to 24% of Indias total expected capital expenditure of 111 crore, and is expected to attract further an investment worth 17 lakh crore over the next 5-7 years.

FY 2024-25 was a landmark year for Indias power sector, with significant progress in energy generation, transmission, and distribution. The power sectors transformation is driven by the nations energy goals of achieving energy independence by2047 and net-zero emissions by 2070. India is set on the path to becoming a global energy leader with pioneering initiatives such as universal electrification, increasing availability of rural power, and by embracing cutting-edge technologies. However, to be able to meet the increasing demand for electricity, there is a need for massive addition in Indias installed generating and transmitting capacity.

The nation has set an ambitious target to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. During FY 2024-25, Indias installed capacity increased to 475 GW, with the addition of 33.24 GW new generation capacity.

Electricity demand in India grew 5.80% y-o-y in 2024 amid strong economic growth. Peak electricity load in India has shown strong growth in the recent years, rising from 148 GW in 2014 to 250 GW (+68%) in 2024 and reducing energy shortages at the national level, led by rapid expansion of its industry, development of agriculture, enhanced electricity access and increased use of air conditioning and appliances in residential and commercial sectors.

(Source: Electricity 2025 Report by IEA)

Increase in Renewable Energy capacity

To meet the increasing demand for electricity, massive addition to the renewable energy generating capacity is a key imperative. The nation has made remarkable progress in renewable energy, reflecting its steadfast commitment to achieving its vision for 2030, and showcasing Indias dedication to fulfilling its climate commitments, while strengthening energy security.

Renewable energy contributed 86% to the new capacity additions in FY 2024-25, compared with 71% in FY 2023-24. As on March 31, 2025, Indias renewable energy installed capacity reached 220.10

GW, crossing the key milestone of 200 GW and higher than the capacity of 198.75 GW as on March 31, 2024. The renewable energy capacity includes 105.65 GW of solar power, 50.04 GW of wind power, 11.58 GW of bioenergy, and 5.10 GW of small hydro power, demonstrating Indias strong commitment to clean energy.

Renewable energy now constitutes about 48% of Indias total installed capacity, highlighting a growing dependence on cleaner, non-fossil fuel-based energy sources. Indias power sector is entering a transformative phase, with a massive investment opportunity of 42 trillion over the next decade. This investment is driven by the need to upgrade aging power infrastructure, meet growing energy demand, and achieve the countrys ambitious renewable energy goals.

(Source: Economic Survey, FY 2024-25)

(Source: https://www.ibef.org/industry/power-sector-india)

The power generation industry in India is projected to require total investment of 33 lakh crore (US$ 400 Billions) by CY 2032 to meet the rising energy demands, as per the National Electricity Plan 2022-32. By CY 2031, the current installed nuclear power capacity is expected to rise from 7,480 MW to 22,480 MW because of the progressive completion of projects under construction and accorded sanctions.

Indias renewable generation sector is set to attract close to 18.80 lakh crore between FY 2024-25 and FY 2029-30, indicating a significant investment of 21 lakh crore anticipated during the above period in the entire power sector. Adequate financing of power projects led by renewable energy will be instrumental in achieving near doubling of Indias installed capacity by 2030.

Strengthening Power Transmission and Distribution

The transmission system plays a crucial role between power generating stations and the distribution system. As Indias major power load centers are in the northern, western and southern regions, this skewed resource distribution makes it imperative to have a robust transmission system. This includes establishment of inter-regional corridors to seamlessly transfer power from surplus regions to the areas that are deficit in power generation to enable consumers across the country gain access to power.

The transmission network in India has been expanding rapidly, with increased capacity at both interstate and intra-state levels. Indias power transmission segment is on the cusp of a massive transformation expansion with an aim to double the power capacity to 900 GW by CY 2032.

Addition in Indias transmission capacity

Source	Addition in Transmission Lines (ckm)	Addition in transformation capacity (MVA)
FY 2014-15	22,101	65,554
FY 2015-16	28,114	62,849
FY 2016-17	26,300	81,816
FY 2017-18	23,119	86,193
FY 2018-19	22,437	72,705
FY 2019-20	11,664	68,230
FY 2020-21	16,750	57,575
FY 2021-22	14,895	78,982
FY 2022-23	14,625	75,902
FY 2023-24	14,203	70,728
FY 2024-25	8,830	86,433

(Source: https://powermin.gov.in/en/content/overview-0)

As India moves ahead on this target and also that of meeting 50% of power generation capacity from non-fossil fuels by 2030, it is imperative to make substantial investments in inter-state and intrastate transmission networks. The transmission sector isgetting strengthened with the addition of transmission lines and inter-regional capacity. It is transitioning into a congestion-free, well-integrated and interconnected network, and being consolidated into one of the worlds largest synchronous grids. This shift demonstrates the governments push to build critical infrastructure and attract private investment.

Indias power transmission sector has transitioned into a congestion-free, well-integrated and interconnected network, getting consolidated into one of the worlds largest synchronous grids. An estimated investment of 10 lakh crore is required to double the power capacity to 900 GW by 2032. The transmission sector is being continuously strengthened and transformed with the addition of transmission lines and inter-regional capacity to expand the physical infrastructure of the grid.

Outlook for Indias power sector

Indias growing demand for electricity, coupled with its focus on clean energy, presents a bright outlook for the sector. As power consumption continues to rise, especially with Indias per capita electricity usage still well below the global average, the sector is set for sustained growth and robust returns for investors over the next decade. The electricity sector is witnessing a major transformation in the current decade of CY 2020-29 with respect to demand growth, energy mix and market operations. India wants to ensure that everyone has reliable access to sufficient electricity at all times, while accelerating the clean energy transition by lowering its reliance on fossil fuels and moving towards environment-friendly, renewable sources of energy.

Wires & Cables Industry

Global Wires & Cables sector

Robust growth in infrastructure, as well as an increase in power generation & transmission capacity, leads to an increase in market size and demand for the wires & cables industry. The global wires and cables market size, which was estimated at US$ 202.0 Billions in FY 2023-24, is now projected to grow at a CAGR of 4.5% in the next few years. India accounted for about 5% of the global wires and cables market.

The global wires and cables market is dominated by the Asia Pacific region, which holds the largest share. Countries like China and India are experiencing significant growth in these areas. Increased investments insmart upgradingofthe power transmission

Wires & Cables Market

Global Vs India

India

Rest of the Worldand distribution systems and development of smart grids are anticipated to drive the markets growth.

North America accounted for a significant share, with a high growth rate. The region is witnessing a rise in demand due to the expansion of renewable energy projects and the modernization of aging power grids. Europe is driven by similar factors, with a focus on sustainable energy solutions and infrastructure upgrades. The remaining share is distributed among other regions, including South America, the Middle East, and Africa.

The rapid rise in Indias organized sector and the governments focus on investment in infrastructure and development projects is set to promote large-scale growth across sectors, such as infrastructure, power, telecom, transmission and distribution, manufacturing, real estate, engineering, and automotive. Growth in renewable power generation, expansion and revamping of Transmission & Distribution (T&D) infrastructure, increasing investments in metro railways and smart grid projects, and growth in the data center sector will also contribute to the robust demand for wires & cables in India. Increasing urbanization and commercialization are expected to bolster investments in the real estate industry and drive the demand for low-voltage insulated wires and cables.

Indian Wires & Cables sector

The wires and cables market in India is a significant segment of the electrical industry and plays a crucial role in powering varioussectors of the economy. The market for the same was valued at 1,083.71 Billions in FY 2023-24, and projected to rise from 1,240.85 Billions in FY 2024-25 to 4,197.28 Billions by FY 2033-34, at a CAGR growth of 14.5% from 2025-2034. Generally, wires consist of a single conductor, whereas cables involve one or more conductors which are used for the transmission of electricity, data, or signals. (Source: Expert Market Research Report)

The sector encompasses a wide range of products catering to different applications. India has a well-established domestic manufacturing base with the presence of large and small manufacturers catering to diverse customer requirements.

The wires and cables industry, which accounts for nearly 40-45% of the Indian electrical equipment market, is witnessing strong growth momentum, supported by the Governments focus on infrastructure development, rural electrification, renewable energy, housing, and urban development projects.

The industry remains a crucial component of Indias electrical ecosystem, catering to diverse applications across residential, commercial, industrial and infrastructure projects, contributing around 40-45% of Indias electrical industry. Established players continued to gain market share through brand trust, compliance with safety and quality standards and better reach. The demand shift toward branded and certified products is also being driven by regulatory changes and increasing awareness among institutional and retail buyers.

Growth in Wires & Cables Market in India (FY 2024-25 and FY 2033-34)

(In Billions)

The organized wires and cables market in India is valued at 590 Billions in FY 2023-24.

Key Sub-Categories

The wires & cables market in India can be divided into five key sub-categories, namely housing wires, power cables, control and instrumentation cables, communication cables and flexible and specialty cables.

?€? Housing wires are used in the construction of almost every commercial, industrial, and residential property, and these products carry electrical current to all power applications in a building

?€? Power cables are mainly used for power transmission and distribution purposes and accounted for 27% in FY 2023-24

?€? Control and instrumentation cables are multiple-conductor cables that convey low-energy electrical signals used for monitoring or controlling electrical power systems and their associated processes

?€? Communication cables are electrical cables used to send information signals and are most commonly found as coaxial, fiber optic, data Ethernet and twisted wire pairs

?€? Flexible cables are used in consumer appliances, railways and mining and specialty cables are used in marine, oil and gas facilities, offshore/onshore transmission

Impact of US tariffs on Indias Wires & Cables Industry

The recent tariffs on Indian imports by President Trump mark a significant shift in global trade dynamics. This can pose a substantial challenge to Indias labor-intensive and manufacturing sectors, and if a 50% duty is levied for an extended period, it could lead to a downward revision in the countrys overall economic growth projections. The steep tariffs not only risk slowing exports and investment, but also add pressure on the rupee raising concerns for the overall economic outlook. Indian rupee is expected to come under renewed pressure due to rising trade tensions and global uncertainties. Impact on private capex, domestic manufacturing as well as labor markets can emerge as a key risk in the coming months.

These uncertainties make it difficult for businesses to plan long-term investments. Manufacturers may hesitate to launch new projects or expand until the full impact is clear. While some companies may seek alternative suppliers to avoid the tariffs, this process is time-consuming and could require major adjustments in logistics and quality control. To navigate this new landscape, businesses will need to become more agile, focusing on diversifying their supply chains and optimizing production to emerge stronger in the long run.

Future Outlook

The Indian Wires & Cables market is expected to grow at a CAGR of 11.8% and reach 1,430 Billions by FY 2028-29. Increasing urbanization and commercialization are expected to bolster investments in the real estate industry and drive the demand for wires and cables. Further, the rapid rise of the organized sector and the governments focus on investment in infrastructure anddevelopment projects would promote large-scale growth across sectors, such as power, telecom, transmission and distribution, manufacture, real estate, engineering, and automotive will drive demand.

Growth in renewable power generation, expansion and revamping of Transmission & Distribution (T&D) infrastructure, increasing investments in metro railways and smart grid projects and growth in the data center sector will also contribute to a robust demand for wires and cables in India. The market also faces its share of challenges in terms of price volatility of raw materials, intense competition, and compliance with regulatory standards.

Wires & Cables in India - Future Growth (FY 2024 to FY 2029)(In Billions)

FY24 FY25 FY26 FY27 FY28 FY29

A significant increase in demand for Wires & Cables in India is projected owing to the nations ambitious renewable energy goals and growing awareness of the potential of solar and wind power. Rapid growth of solar panels has resulted in a growing demand for solar cables in India. There is a need for high-quality cabling to connect electrical components with minimal energy loss in solar power plants, particularly photovoltaic (PV) projects.

The market for wires and cables is poised for continued growth driven by government initiatives, infrastructure development, growing urbanization, growth in fast-moving electrical goods driving demand for power cables and building wires, and the increasing demand for electricity and connectivity.

Key Growth Drivers

1. Increasing Infrastructure investments in Smart Grid Projects: Smart grid technology is a significant trend enroute to long-term economic growth and Indias carbon reduction goals. The government has launched the Revamped

Distribution Sector Scheme (RDSS) with a budget of ?3.03 trillion for 2021-2026. This is targeted at supporting power distribution companies (DISCOMs) in modernizing and strengthening distribution infrastructure to improve quality, reliability, and affordability of power supply.

2. Advancements in Wire Technology accelerating growth of Renewable Energy and Green Energy Solutions:

Large-scale development of transportation networks and energy infrastructure has increased the need for wires and cables for the purpose of power transmission, communication, and construction. The endeavor of companies to adopt advanced and green technologies has led them to optimize their existing wires and cables, which is also resulting in significant increase in sales and shipment volumes of wires and cables.

3. Expansion of Construction industry owing to Rapid Urbanization:

Indias construction sector is experiencing massive expansion in the past few years, and this is projected to continue rising by double-digits in the future too. Ongoing infrastructure development, including construction of residential and commercial projects, requires a substantial amount of wiring and cabling for power distribution and control systems. Moreover, the expansion of renewable energy projects, such as wind and solar farms, often requires specialized cables for power transmission and connectivity.

4. Increase in Transmission of Data at a faster speed leading to a rise in Power Consumption:

The increasing demand for faster data transmission is driving a significant rise in power consumption and investment, particularly in the development of new data centers. This trend is leading to the adoption of advanced cabling solutions, such as hybrid cables that combine power and data, and thinner, modular connectors. This is also creating demand for large-scale government initiatives like the BharatNet project, which aims to provide high-speed broadband connectivity to all of Indias village councils by laying extensive optical fiber networks.

5. Railway Electrification:

Indias railway modernization is on track with major advancements in high-speed rail, freight corridors, renewable energy, station infrastructure and safety systems. Further, India has become the third-largest metro network in the world, with the government focusing on making it more powerful and advance and laying multiple development projects, reshaping urban travel and furthering connectivity.

Indian Railways electrified 62,119 Route Kilometers (RKMs) till March 2024, about 94% of the total broad-gauge network (65,775 RKMs) of Indian Railways. Further, projected electrification up to FY 2024-25 was 64,589 route Kilometers, which is 97.05% of the total broad-gauge network, including Konkan Railways.

In both FY 2024-25 and FY 2025-26, budgetary support from the central government was estimated at 2.52 lakh crore,financing 95% of the capital expenditure in these years. Further, the government has allowed 100% foreign direct investment (FDI) in the railway sector as a further growth enabler. The entire electrified mainline rail network in India uses 25 kV AC; DC is used only for metros and trams. With the Indian railways having achieved almost 100% electrification, it indicates a huge opportunity for the Wires & Cables industry in India.

(Source: https://www.fortunebusinessinsights.com/india-wires-and- cables-market-109992)

COMPANY OVERVIEW

Paramount Communications Limited is one of Indias leading wire & cable manufacturing companies. With nearly seven decades of operations, the Company widened its product portfolio. It consistently strives to exceed global quality benchmarks in providing comprehensive cabling solutions.

As a trusted industry leader, it has built a prestigious clientele that includes government, institutional and the private sector and set up a diversified product range. Paramounts wide range of clients, channel partners and electricians are connected through a unified digital platform, the Parivaar app, which effectively manages its distribution and retail network through a unified loyalty platform.

The Company offers a wide variety of 25+ products with 2,500+ SKUs, including HV & LV power cables, optical fiber cables, telecom cables, railway cables, specialized cables, instrumentation & data cables, and fire survival cables. It is Indias first manufacturer of axle counter railway cables, lead-free house wires, fire survival cables, laying and repairing, and undersea cables.

750+ 200+

No. of Institutional Clients No. of Channel Partners

7,500+ E-Commerce

No. of Electricians presence on recognized

platforms

Competitive Strengths

?€? A diversified portfolio of 25+ products across power, telecom, railway, solar, defence, space research and domestic turnkey sectors

?€? A pan-India and growing distribution network

?€? Share of strong institutional business

?€? Expansion of retail business through a customer-focused approach

?€? Strong financial position; A zero debt company

?€? Focus on export business

?€? Growing opportunities in specialized turnkey services

Key Certifications

The Company has key certifications from various Indian and global agencies. Its key certifications include ISO 9001:2015 for robust quality management system, ISO 14001:2015 for environmental sustainability and ISO 45001:2018 for Occupational Health & Safety Management.

The Companys world-class and state-of-the-art manufacturing plants in Khushkera, Rajasthan, and Dharuhera Haryana are ISO certified with a special focus on health and safety at the workplace, in addition to environment sustainability and QMS. The Company also conducts independent audits by globally recognized bodies, such as LPCB. Quality testing includes computerized raw material testing, process inspections, and routine, sample, and special tests at every stage of production.

Research & Development

The Company has a strong in-house R&D team that is focused on achieving product excellence through quality workshops, to equip the staff on latest skills and knowledge, fostering continuous improvement. Its strong dedication to innovation and ongoing investment in R&D enables it to create cutting-edge, high-quality products that meet customer needs, giving it a competitive advantage in the market.

Key Partnerships & Relationships

Paramount Cables emphasizes constant growth and development to maintain high-quality products. It prides itself on its customer relations, which is its biggest asset, as it strives to provide best-inclass products to all its customers. The Company has built long-standing relationships with its national and international customers, including government institutions, private sector companies, and major industries worldwide.

The Company has a strong presence in domestic and exports markets. Its export markets span across UK, Spain, Russia, South Africa, UAE, Jordan, Sri Lanka, Bangladesh, Nigeria, and others. It has also undertaken large projects in Iraq and Oman. It has established a strong presence in the US market, supplying its products to every part in the country, and being its largest exporter of electric wires and cables. Exports in US are well-supported by approvals obtained over the past five years, showcasing its commitment to global expansion and innovation.

Business Enablers and Future Growth Prospects

Backed by a robust distribution network, strong customer relationships, solid financial health, and promising future prospects, it continues to maintain its growth trajectory. The company is continuously investing in expanding its capacities as well as introducing new products in its portfolio.

During FY 2024-25, the Company has been allotted 31 acres of land in the industrial area of Narmadapuram in Madhya Pradesh by MPIDC (Madhya Pradesh Investment Development Corporation). This land will be utilized to establish a new greenfield facility for the manufacturing of for wires & cables, aligning with its growth targets.

A Diversified Product Portfolio

Our company maintains a diversified product portfolio designed to serve a wide range of industries, including power, telecommunications, railways, and defence. This comprehensive offering is built around three core segments: Cables, Flexible Wire Cables, and Specialized Turnkey Services.

POWER CABLES	RAILWAYS & INFRASTRUCTURE	TELECOM SECTOR CABLES
\u2022 LT & HT Power Cables	\u2022 Railway Signaling Cables	\u2022 Optical Fiber Cables (OFC)
\u2022 LT & HT Aerial Bunch Cables	\u2022 Axle Counter Cables	\u2022 Fiber to the Home Cables (FTTH)
\u2022 Control Cables	\u2022 Railway Power Cables
\u2022 Instrumentation Cables
\u2022 UL certified cables for USA

RENEWABLES AND SPECIALIZED APPLICATIONS

?€? HTLS and specialized conductors

?€? MVCC

?€? PV Solar Cables

?€? Fire survival cables

?€? HDPEductsandpipesforvariousapplications

Revenue Break-up by Product Segments (%) (*)	FY 2024-25	FY 2023-24
Power Cables	50.6%	42.4%
Railway Cables	9.1%	15.7%
Telecom Cables	2.1%	5.6%
House Wires	5.5%	6.2%
Exports	31.0%	26.4%
EPC	0.4%	2.1%
Pipe & Others	1.3%	1.6%

POWER CABLES

The domestic power cables segment continues to be a significant source of revenue for the company. In FY 2024-25, this segment accounted for 50.6% of total revenue, with sales reaching 7,870 Millions, compared to 4,439 Millions in FY 2023-24. The power cable industry is experiencing growth due to the global rise in renewable energy adoption, increased capacity in solar and wind energy, growing investments in power transmission and distribution, as well as strong expansion in the real estate and infrastructure sectors.

RAILWAY CABLES

Paramount Cables remains one of the leading suppliers of specialized cables for Indian Railways. The Railway Cables segment saw strong growth in FY 2024-25, contributing 9.1% to the overall revenue from 15.7% in FY 2023-24. Total sales in this segment reached 1,413 Millions, compared to 1,641 Millions in FY 2023-24. The segment is expected to continue expanding, driven by the governments focus on infrastructure development, particularly in the railway sector, and its commitment to achieving 100% railway electrification.

TELECOM CABLES

The Company is a leading provider of high-quality wiring and cabling solutions for the telecommunications sector. This segment accounted for 2.1% of total revenue. Sales of Telecom Cables reached 326 Millions in FY 2024-25, compared to 586 Millions in FY 2023-24. The growth of telecom cables is expected to be driven by the governments emphasis on the telecom sector, the rapidrollout of 5G networks, and the development and deployment of 6G technology.

DOMESTIC WIRES

Paramount Cables offers a wide range of durable and fire-retardant building wires for the Indian consumer market. This segment accounted for 5.5% of total revenue in FY 2024-25. Sales of house wires reached 858 Millions in FY 2024-25, compared to 651 Millions in FY 2023-24.

EXPORTS

Paramounts export markets span across countries such as the US, UK, Spain, Russia, South Africa, UAE, Jordan, Sri Lanka, Bangladesh, Nigeria, and others. The United States is the largest export market, and revenue from exports increased from 2,761 Millions in FY 2023-24 to 4,830 Millions in FY 2024-25, constituting 31.0% of total sales, as against 26.4% in the earlier year. Its products are supplied to almost every port in the US, and the total number of distributors in the country stood at 8 vis-a-vis 2 in FY 2019-20. The Company remains focused on replicating its US success story in other international geographies too.

Revenue Break-up: Domestic vs Exports (%)	FY 2024-25	FY 2023-24
Domestic	69%	74%
Exports	31%	26%

Order Book

Domestic Exports

50.00% 50.00% SPECIALIZED TURNKEY SERVICES

The segments contribution to total revenue declined to 0.4%, from 2.1% in the previous fiscal year. The turnkey projects contributed 67 Millions in FY 2024-25, compared to 227 Millions in FY 2023-24.

FINANCIAL PERFORMANCE

The financial statements of Paramount Communications Limited are prepared in accordance with the Indian Accounting standards 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 the financial statements.

Particulars in Millions	FY 2024-25		FY 2023-24
	Standalone	Consolidated	Standalone	Consolidated
Revenue from Operations including other income	15,695	15,866	10,562	10,786
EBIDTA	1,333	1,344	960	973
Profit Before Tax (PBT)	1,106	1,109	816	820
Profit After Tax (PAT)	867	870	854	856
Earnings Per Share (in )	2.85	2.85	3.28	3.29

In FY 2024-25, the Company achieved its highest-ever yearly Revenue from Operations (including other income) (on a consolidated basis) stood of 15,866 Millions, growing by 47.10% year-on-year compared to 10,786 Millions in FY 2023-24. Growth was driven by robust demand for the Companys products across markets and segments.

With a strong emphasis on high-quality products and a diverse product portfolio, the Company recorded a 38.13% increase in EBITDA to 1,344 Millions in FY 2024-25, as compared to 973 Millions in FY 2023-24. Net Profit stood at 870 Millions, compared with 856 Millions, driven by strong performance across all its segments.

As on March 31, 2025, the Company has a pending order book of more than 6507 Millions comprising domestic cables of 3276 Millions and export of 3231 Millions. During the year, the Company incurred capital expenditure of 604 Millions, as against 526 Millions in FY 2023-24.

During the financial year 2024-25, the Company turned debt free as it liquidated its ARC debt and obligation. The increase in equity helped in improving the net debt/ equity ratio to 0.04, as on March 31, 2025, compared to 0.16 as on March 31, 2024. Other Income primarily comprises earnings from foreign exchange gains interest on Bank Deposits and Profit on Sale of investment.

Details of Significant Changes in Key Financial Ratios Particulars	FY 2024-25	FY 2023-24	% Variance	Reasons for Variance 25%
Current Ratio (in times)	3.55	3.40	5
Debt Equity Ratio (in times)	0.04	0.16	-77	Due to decrease in total debts
Debtors Turnover Ratio (in times)	6.88	6.23	10
Inventory Turnover Ratio (in times)	4.30	6.95	-38	Due to increase in net total sales
Interest Coverage Ratio	10.94	14.88	-27	Due to decrease in Debt Services
Operating Profit Margin (%) EBIDTA	8.47	9.02	-6
Net Profit Margin (in %)	5.54	8.03	-31	Net margins decrease due to tax implications
Return on Equity (in %)	12.95	18.59	-30	Due to increase in average shareholder\u2019s equity of the Company

RISK MANAGEMENT

The Company has a structured and comprehensive risk management framework for the timely identification, assessment and mitigation of key business risks. The Companys risk management process is rigorously enforced across all departments to safeguard its operational and financial performance. Through periodic reviews, Paramount Cables devises mitigation frameworks and strategies to address key risks.

The Company\u2019s key risks and its mitigation strategies are listed below: Risk Impact	Mitigation
Competition Risk Intense competition in the industry, from both organized and unorganized players, poses a challenge to the Company\u2019s business and growth trajectory. The failure to provide high-quality products at competitive prices may negatively impact the Company\u2019s market share and profitability.	With over six decades in business, the Company has forged a reputation with its technological prowess, a broad array of products with international certifications and competitive pricing. By manufacturing innovative products to meet diverse customer demands, the Company secures its competitive advantage. It is focused on brand development by delivering high-quality products and exceptional value propositions.
Macro-Economic Risk Economic slowdown, inflation, geopolitical tensions, and other macroeconomic factors have the potential to dampen demand and adversely impact the Company\u2019s export business.	Despite global economic challenges, economic growth in India and declining inflation are expected to stimulate growth across sectors. The Company is optimistic about its growth prospects, bolstered by a strong customer base and favorable market conditions in India. With client base in over 25 countries, it regularly assesses geographical risks and operational feasibility. Furthermore, leveraging its vast experience and its presence in diverse sectors, the Company\u2019s comprehensive business continuity plan ensures resilience in times of uncertainty.
Raw Material Risk Increased costs of raw materials like copper, aluminum steel, nickel, etc., and potential delays, shortages, or disruptions in their supply, could impact the Company\u2019s operations, leading to increased input costs and impacting financial performance.	The Company consistently maintains adequate inventory levels at optimal cost, ensuring efficient operations and seamless production. With robust internal control systems in place, it effectively manages financial risks and price volatility, taking proactive measures such as price adjustments to mitigate the impact of commodity price fluctuations.
Currency The Company is exposed to foreign Fluctuations Risk exchange fluctuation risk due to its imports of raw materials and exports of final products. Foreign exchange volatility can impact the Company\u2019s margins and profitability.	The Company vigilantly monitors currency movements and conducts detailed sensitivity analysis for its export/ import transactions. It employs robust hedging strategies to minimize the impact of currency fluctuations, utilizing long-term and forward contracts to safeguard revenue and margins.
Technology Risk The inability to deliver technologically advanced and upgraded products according to clients\u2019 technical specifications and quality requirements may result in a loss of business.	The Company prioritizes technology and stays at the forefront of technological advancements through consistent investments in research & development and innovation. This enables continuous upgrading of its products to align with the latest technological developments. Paramount\u2019s R&D team and stringent process control systems play a crucial role in maintaining quality and driving technological advancements.
Policy Changes Risk Fluctuations in monetary policy may adversely impact Paramount\u2019s borrowing terms and margin profile. The companys business is susceptible to adverse shifts or modifications in government legislation, policies, and regulations, potentially impacting its operations.	Paramount emphasizes three core objectives, enhancing its retail business to minimize dependency on government policies, diversifying into multiple industries, and increasing the contribution of its export business to total sales to mitigate the impact of policy regulations.
Concentration Risk Overreliance on a few customers may adversely impact the Company\u2019s revenues and profitability.	Paramount Cables has effectively mitigated concentration risk over the years by innovating and expanding its product range across multiple industries. It fosters robust relationships with key customers and diversifies across industries.

INFORMATION TECHNOLOGY

Paramount Cables has built a strong Information Technology (IT) infrastructure, supported by a skilled and knowledgeable IT team that keeps a close watch on technological advancements. This ensures that the companys processes across operation, technology and cybersecurity are re aligned with the latest trends and industry standards viz companys SAP software solution.

The IT infrastructure also supports remote work, ensuring seamless business continuity. By leveraging advanced software and servers, Paramount streamlines operations, fosters innovation, and continuously upgrades its products, services, frameworks, processes, and methodologies. Continuous investments in R&D and technology processes by the company betters its capacity in operational efficiency and innovative solutions for its customers.

Additionally, Paramount has launched an app called Paramount Parivar, for its retailers, electricians as well as consumers and has brought them all on the same platform. This platform gives multiple technological advantages in terms of benefits and schemes offers along with earning of rewards by redeeming points accumulated during scanning of their products.

The app is advantageous for its entire distribution network, as it connects the entire chain from the plant to the end consumer, providing them with digitally verified warranty certificates for the companys products and is truly a game changer in the electrical industry. The company continues to strive exploring and implementing new software solutions in its business processes.

HUMAN RESOURCES

The credit to having a highly skilled employee resource in all functions including engineering, technical support, marketing and finance is appreciative views of the company considering employees to be the top most assets. To support a productive, collaborative, and positive work environment, Paramount Cables comprehensive HR policy, fosters a culture that values meritocracy and ensures that employees goals are aligned with its broader growth vision. The Company facilitates work arrangement, Paramount drives inclusivity by facilitating a work environment that accommodates the evolving preferences and needs of its employees.

Paramount strongly believes in skill development through regular training programs, designed to enhance employees technical abilities and overall competencies. In addition to technical training, The Company facilitates workshops and sessions aimed at improving leadership, team-building, problem-solving, and decision-making skills. The company also emphasizes continuous employee engagement, motivating staff with performance-based incentives and growth opportunities.

The company also emphasizes continuous employee engagement, motivating staff with performance-based incentives and growth opportunities. Acknowledging and appreciating employees contributions is integral to fostering a culture of excellence.

The Company implements robust recognition and reward systems to celebrate achievements and encourage high performance. This not only motivates employees but also reinforces a sense of pride and ownership in their work.

Employee recognition and rewards are an integral part of the Companys culture, acknowledging the hard work and dedication of its team. Paramount remains committed to ensuring the health, safety, and security of its workforce which stands at 355 permanent employees, as of March 31, 2025.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

A robust internal control system tailored to the size, nature, and complexity of its operations is implemented by the Company. The primary goal of this system is to manage emerging business risks, ensure the precision and trustworthiness of financial reporting, streamline the timely reporting of financial and operational activities, safeguard organizational assets, and maintain compliance with relevant regulations and laws. For real-time operational insights and centralized data management, Paramount Cables depends on the SAP system to handle accounting and financial records. The Company remains committed to refining its SAP processes and controls, aligning them with the best practices in the industry. The Company has clearly defined the policies and organizational structure to ensure smooth conduct of its business.

P. Bholusaria & Co., the statutory auditors for the Company, are tasked with auditing the financial statements included in this annual report. Additionally, they have provided a report on the Companys internal control over financial reporting, as mandated by Section 134 of the Companies Act, 2013. Internal audits for the Company are managed by M/s Jagdish Chand & Co., Chartered Accountants, who regularly assess the internal controls and risks across various functions such as finance, accounting, SAP modules, procurement, and employee engagement. All audit reports are submitted to the Audit Committee of the Board, which reviews the findings and suggestions for improvements, ensuring corrective actions are implemented on a quarterly basis.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain certain statements describing the Companys objectives, projections, estimates and expectations which may be forward-looking statements within the meaning of applicable laws and regulations. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those either expressed or implied in these statements depending on the circumstances and factors such as economic conditions affecting demand & supply and price conditions in the domestic and international markets in which the Company operates, changes in government regulations and policies, tax laws and other incidental factors that could make a difference to the companys operations. The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in future.