Parle Industries Ltd Management Discussions

1. World Economy:

In 2024, the world economy grew at a moderate rate of 3.3% as per IMF, signifying a phase of relative stability, but growth was still restrained. As we progress through 2025, the global environment is seeing a substantial transformation, prompted by nations realigning their policy priorities in reaction to escalating geopolitical tensions and increasing economic difficulties.

The United States has implemented a series of additional tariff measures, eliciting immediate and vigorous responses from key trading partners. This resulted in the enactment of nearly universal tariffs on April 2. Consequently, effective tariff rates have escalated to unprecedented heights, inflicting a severe and detrimental impact on global GDP. The issue has been exacerbated by the rapid and erratic nature of these policy shifts, which have markedly intensified economic uncertainty and rendered the short-term outlook highly unstable.

In light of this uncertainty, worldwide headline inflation is projected to decrease at a slower rate than previously planned. IMF projection indicates a decline to 4.3% in 2025 and thereafter to 3.6% in 2026. The revision indicates elevated inflation projections for industrialized nations, somewhat counterbalanced by slight downward modifications in emerging markets and developing economies.

2. Indian Economy:

Throughout the current FY 2024-25, Indias economy has maintained consistent growth and stability, reinforcing its standing as a leading major global economy for expansion. The National Statistical Offices (NSO) Second Advanced Estimate (SAE) projects real Gross Domestic Product (GDP) growth of 6.5% for this financial year, following 9.2% growth in the preceding year. This upward trend highlights Indias strong economic base, supportive government strategies, a vibrant services sector, and robust domestic demand, all contributing to a positive long-term outlook. Key to this enhanced growth and self-reliance are substantial government reforms and significant investments in both physical and digital infrastructure, alongside initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme. Indias services sector expanded steadily by 7.2%, driven by strong performance in finance, property, professional services, public administration, and defense, amongst others. The nations economic stature continues its upward climb. India now stands as the worlds fifth-largest economy by nominal Gross Domestic Product (GDP) and the third-largest when assessed by purchasing power parity (PPP). Ambitious national targets aim for a USD 5 trillion economy by FY 2027-28 and a USD 30 trillion economy by 2047. These goals are supported by substantial infrastructure investments, ongoing governmental reforms, and widespread technological adoption. Reflecting this commitment, the capital investment budget for the upcoming financial year (2025-26) has been increased to ^ 11.21 Lakh Crores, representing 3.1% of GDP.

3. Overview - Real Estate & Paper waste recycling:

Despite all the external and internal roadblocks, including inflation, general elections and geopolitical tensions, India continues to be one of the fastest growing major economies in the world. The Indian real estate sector has shown robust growth since the pandemic. While initial recovery saw a surge in housing sales, commercial leasing has also gained significant traction over the past year. Hospitality sector continues to do exceedingly well with average daily rates at an

all-time high. As India moves from being a low-income to a middle-income country, household incomes and spending will continue to rise giving a long runway for growth in the real estate sector. Real estate will continue being a driver of growth and employment and will continue to take larger share of the countrys GDP, as is the case in other more developed and advanced economies.

India consumes 23 million tonnes of paper annually, projected to reach 30 million tonnes by 2030. With limited wood pulp availability, 70-80% of domestic paper production depends on recycled waste paper. However, recovery rates remain low at 30-35% versus the global average of 5560%, highlighting untapped potential. Policy measures such as the ban on single-use plastics, Extended Producer Responsibility (EPR), and rising demand for sustainable packaging are driving growth. Going forward, the sector is expected to expand steadily, supported by greater formalization of collection, technology adoption, and the shift towards circular economy practices.

4. Business Analysis, Performance & Outlook:

Your company continues to experience substantial growth and transformation within the real estate sector, investment and paper waste recycling sector. This strategic move of expansion through inorganic acquisitions, positions us for enhanced market presence and diversified revenue streams. Our focus remains on delivering sustainable growth and maximizing shareholder value.

Looking ahead, we anticipate continued growth driven by our strategic expansion and new business initiatives. We are committed to enhancing shareholder value through:

• Ongoing Acquisition Strategy: Identifying and integrating new business streams to drive revenue and market presence.

• Innovation and Sustainability: Investing in technology and sustainable practices to stay ahead of industry trends.

• Operational Excellence: Continuously improving our processes and efficiency to deliver superior financial performance.

Acquisition of Subsidiaries

During the year, the Company had proposed acquisitions of Windfield Spaces Private Limited (WSPL), Welldone Integrated Services Private Limited (WISPL), and Marvelous Vickyfoods Private Limited (MVPL) through share swap arrangements. The Company has acquired 100% stake in Windfield Spaces Private Limited. Accordingly, it became Wholly Owned Material Subsidiary of the Company.

While equity shares were allotted for the acquisition purpose, the shareholders of WISPL and MVPL failed to comply with their contractual obligations. Consequently, the Company terminated the respective Share Purchase Agreements. It is clarified that WISPL and MVPL never became subsidiaries of the Company and, accordingly, have not been consolidated in the financial statements.

Subsequently, the Company forfeited 2,26,50,000 equity shares earlier issued to such shareholders of WISPL and MVPL. The forfeiture has resulted in a reduction of the Companys paid-up capital, but has no adverse impact on the Companys ongoing operations, business model or financial position, as the proposed acquisitions were not consummated.

The Board believes that the Companys financial strength, ongoing projects and growth prospects remain intact, and that prudent legal and contractual measures have safeguarded shareholders interests.

5. Segment wise Performance of The Company during the year is as follows:

Particulars	01.04.2024-31.03.2025
	Audited (Rs. in lacs)
Segment Revenue
a. Infrastructure & Real Estate	99.30
b. Papers waste recyling	27.77
Net Sales/Income From Operations	127.07

6. Opportunities, Risks & Concerns:

In India, real estate contributes 7% to the countrys GDP. This is considerably lower as compared to developed economies, where it averages around 15% and China, where it is about 21%. While short term shocks on account of interest rates and commodity prices will invariably occur, because of the reforms of the past decade (RERA, demonetisation, GST, stricter regulations on lending practices of Banks/NBFCs), the supply side excesses are behind us. This presents a clear and unobstructed runway fully positioning real estate not only as a beneficiary but as a driver of economic growth.

While we are favorably positioned to capitalize on the growth prospects within the Indian real estate sector, there are potential challenges that the industry might need to navigate in the near to medium term which are as follows:

• Increase in housing prices greater than wage growth

• Economic slowdown for an extended period

• Disruptions in job creation because of artificial intelligence making certain roles redundant

• Job creation not keeping pace with the aspirations of the skilled workforce

• Geopolitical risks causing shocks in commodity prices and supply-side disruption

• High interest rates, affecting purchasing power of the middle class

• The management actively monitors potential trends in the external environment and remains agile in implementing strategies to mitigate any emerging risks.

7. Internal Control Systems & their adequacy:

The Company has a regular system of internal check & control, costing, budgeting, forecasting, monitoring projections & efforts are regularly put in to further strengthen the system.

8. Human Resources:

The Company engages a strong team of experienced professionals, including engineers, contractors, suppliers, and legal advisors. Along with our own employees, these partners bring the technical expertise and competence necessary for the successful and timely execution of our projects.

With a clear focus on growth, innovation, and sustainability, the Company is well positioned to build a stronger future. The Board expresses its sincere appreciation to our shareholders, employees, and all stakeholders for their continued trust and support as we move forward into the next phase of expansion and development.

9. Key financial ratios:

Sr. No	Particulars of Ratio	F.Y. 31.3.2025	F.Y. 31.3.2024	Change in Ratios	Explanation for change in Ratios
1	Current Ratio	4.78	65.33	-92.68%	The ratio has decreased due to increase in current investments
2.	Debt-Equity Ratio	0.01	0.05	-85.03%	The ratio has improved due to issue of additional shares during the year
3.	Net Profit ratio	29.58	6.26	372.75%	The ratio has improved due to increase in revenue and net profit during the year
4.	Trade Receivables turnover ratio	0.00	0.00	0.00%	There were no credit sales in the given, hence ratios are non- comparable with previous year.
5.	Inventory Turnover	0.07	0.00	0.00%
6.	Interest Coverage Ratio	0.00	0.00	0.00%
7.	Operating Profit Margin	30.91	0.00	30.91%	The ratio has improved due to increase in revenue and profit during the year

10.Details pertaining to net-worth of the company (Rs. In lakhs)

Particulars	31st March, 2025	31st March, 2024
Net-worth	14556.86	2040.38

11. Financial performance:

Standalone Results

• Standalone Total Income increased to Rs. 128.99 lakhs compared to Rs. 46.11 lakhs in the previous financial year.

• Profit Before Tax increased to Rs. 27.54 lakhs, versus Rs. 4.42 lakhs in the previous financial year.

• Profit After Tax increased to Rs. 38.15 lakhs, compared to Rs. 2.89lakhs in the previous financial year.

Consolidated Results

• Consolidated Total Income stood at Rs. 470.28 lakhs.

• Profit Before Tax stood at Rs. 66.30 lakhs.

• Profit After Tax stood at Rs. 47.50 lakhs.

12. Cautionary Note:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections and expectations may be "forward looking statement" within the meaning of applicable laws and regulations. Actual result might differ materially from those either expressed or implied. Important factors that materially affect the future performance of the Company include the State of the Indian economy, changes in government regulations, tax laws, input availability and prices, and the state of financial markets and other factors such as litigation over which the Company does not have direct control.

By order of board of directors, Parle Industries Limited

Sd/- Anand Jain

Whole Time Director DIN:07730608

Date: 20^th August, 2025

Place: Mumbai