Parvati Sweetners and Power Ltd Management Discussions

Global Economy Overview

Overview

Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably. The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023). On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well. The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4
(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of major economies, 2024

United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023. China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023. United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023. Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023. Germany: GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook

The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring the various economic uncertainties.

(Source: IMF, United Nations)

Overview

The Indian economy was projected to grow at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy. Indias nominal GDP (at current prices) was H331 trillion in FY 2024-25 (H301.23 trillion in FY 2023-24). The nominal GDP per capita increased from H2,15,936 in FY 2023-24 to H2,35,108 in FY 2024-25, reflecting the impact of an economic expansion. The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H85.47 on the last trading day of FY 25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar). Inflationary pressures eased, with CPI inflation averaging 4.63% in FY 2024- 25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY 2024-25, was the lowest since the pandemic, catalysing savings creation. Indias foreign exchange reserves stood at a high of $676 Billion as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualized rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%). Gross foreign direct investment (FDI) into India rose 13.6% to $81 Billion during the last financial year, the fastest pace of expansion since 2019-20.The increase in the year was despite a contraction during the fourth quarter of 2024-25 when inflows on a gross basis declined 6% to $17.9 Billion due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Growth of the Indian economy

	FY 22	FY 23	FY 24	FY 25E
Real GDP growth (%)	8.7	7.2	9.2	6.5

E: Estimated (Source: MOSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

	Q1 FY 25	Q2 FY 25	Q3 FY 25	Q4 FY 25E
Real GDP growth (%)	6.5	5.6	6.2	7.6

E: Estimated (Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross nonperforming assets (NPA) for scheduled commercial banks (SCBs) declining to 2.6% as of September 2024, down from 2.7% in March 2024. The capital-to-risk weighted assets ratio for SCBs stood at 16.7% as of September 2024, reflecting a strong capital position.

Indias exports of goods and services are projected to reach $800 Billion in FY 2024-25, up from $778 Billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports were expected to grow 2.2% YoY, reaching $446.5 Billion.

Indias net GST collections increased 8.6%, totalling H19.56 Lakh Crores in FY 2024-25. Gross GST collections in FY 2024-25 stood atH22.08 Lakh Crores, a 9.4% increase YoY. On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25. The industrial sector was expected to grow 6.2%, supported by growth in construction activities, electricity, gas, water supply and other utility services. Indias services sector grew an estimated 7.3% in FY 25 (9.0% in FY 24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY 25, compared to 8.6% in FY 24. Meanwhile, the construction sector expanded at ~8.6% in FY 25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY 25, with growth projected at 4.3%, which was lower than 12.3% in FY 24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY 25, compared to 8.1% in FY 24. The agriculture sector growth was estimated at 3.8% in 2024-25 (1.4% in 2023-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in 2024- 25 (6.3% in 2023-24). From a demand perspective, private final consumption expenditure at constant prices was forecast to grow 7.3%, indicating a rebound in rural demand and stronger consumer confidence. The Nifty 50 and SENSEX recorded their weakest annual performances in FY 25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of $3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties.

Total assets managed by the mutual fund (MF) industry jumped 23% or H12.3 Lakh Crores in fiscal 2025 to settle at H65.7 Lakh Crores. At close of FY 25, the total number of folios had jumped to nearly 23.5 Crores, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to H24,113 Crores. Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately $20 Billion by year-end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

Outlook

India is expected to remain the fastestgrowing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY 26.

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give New Delhi a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. Chinas share of apparel imports into the US was 25%, compared with Indias 3.8%, a large opportunity to address differential (Source: Niti Aayog).

Union Budget FY 24-25

The Union Budget 2025-26 laid a strong foundation for Indias economic trajectory, emphasizing agriculture, MSMEs, investment, and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H11.21 Lakh Crores for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H12 Lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 Lakh Crores in tax savings could boost consumption by H3-3.5 Lakh Crores, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 Lakh Crores.

Free trade agreement: In a post Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero-duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully duty-free within 10 years.

Pay Commission impact: The 8th Pay Commissions awards could lead to a significant salary revision for nearly ten Million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7th Pay Commission more than tripled its monthly salaries, raising the range from H7,000 to H90,000 to H18,000 to H12.5 Lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an above normal monsoon in 2025. This augurs well for the

countrys farm sector and a moderated food inflation outlook.

Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August

2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points,

reducing it to 6% in its first meeting of FY 2025- 26. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritized restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of

External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Global sugar sector review

Increasing urbanization, shifting consumer preferences towards convenient food options, and the rapid growth of the food service sector are collectively driving higher demand for sugar, especially due to the popularity of sweet and indulgent treats. The chemical segment of the sugar industry is expanding, propelled by the rising need for bio-based products, the redirection of surplus sugar towards ethanol production, supportive government policies, and the emergence of sustainable alternatives such as bio-plastics and specialty chemicals. The growing incorporation of sugar in cosmetic products for its natural exfoliating and moisturizing properties is becoming an important factor contributing to the industrys growth. In 2024, global sugar production stood at 194.9 Million Tonnes, with forecasts projecting an increase to 223.1 MillionTonnes by

2033. This growth reflects a compound annual growth rate of 1.36% during the period from 2025 to 2033.

Brazil continued to dominate the market, holding a notable 25% share in 2024. The sectors expansion was primarily fueled by

rising consumer consumption of processed foods, broader pharmaceutical uses, and extensive distribution network coverage.

Performance of major sugar growing States

United States: Sugar production is projected to decline slightly to 8.4 Million Tonnes due to lower yields of sugarbeet and sugarcane in SS 2024-25. Imports are also expected to decrease, reflecting projected quota programs aligned with minimum requirements under World Trade Organization and free-trade agreement obligations. Additional factors include reduced imports from Mexico, reexports and high-tier tariff imports. While consumption remains largely unchanged, stocks are anticipated to decline due to reduced import volumes.

India: Indias sugar production is projected to stand at 27 Million Metric Tonnes, while domestic consumption is anticipated to

surpass 29 Million Tonnes over the year.

Brazil: For the 2024/25 season, the Centre-South region of Brazil is expected to produce 42.5 Million Metric Tonnes of sugarcane, driven by optimal weather and an increase in cultivated land. China: Sugar production is estimated to rise by 1.0 Million Tonnes to reach 11.0 Million Tonnes in SS 2024-25, driven by an expansion in the area cultivated for both sugarcane and sugarbeets. Consumption is expected to increase slightly, supported by higher consumer spending driven by lower sugar prices. Imports are forecasted to remain steady, while stocks are anticipated to grow due to the increased production.

Thailand: Sugar production is projected to increase by 16% to 10.2 Million Tonnes in SS 2024-25, driven by favourable weather conditions that have boosted sugarcane output and sugar yields. While consumption continues to grow, the rate of increase is slower due to lower anticipated disposable income. Exports are expected to nearly double, supported by the higher production, while stock levels are forecast to drop by one-third due to the surge in exports.

EU: Sugar production is forecast to rise by 6,90,000 Tonnes, reaching 15.6 Million Tonnes in SS 2024-25, as an expansion in sugarbeet cultivation aims to meet higher demand. Consumption remains stable, while imports are expected to decline due to the increased domestic production. Despite the production growth, exports are projected to decrease compared to the elevated levels seen in recent marketing years. Stocks are anticipated to increase as a result of reduced export volumes.

Mexico: Sugar production is estimated to rise by 8% to 5.4 Million Tonnes, supported by favourable weather alleviating some drought impacts. Consumption and stock levels are expected to decline, driven by higherexport volumes. Exports are projected to increase due to greater supply availability, with shipments to the United States determined by the terms of the amended suspension agreements.

Australia: Sugar production is projected to decline by 1,00,000 Tonnes to 4.0 Million Tonnes due to unfavourable rains in SS 2024-25, which left some sugarcane unharvested and deferred to the next season. Consumption is expected to increase slightly, driven by population growth, while exports are forecasted to rise despite reduced supplies, supported by strong global demand.

Indonesia: Sugar production is estimated to decrease by 3,00,000 Tonnes, reaching 2.0 Million Tonnes in SS 2024-25, due to

adverse weather conditions. Consumption is projected to grow in line with population increases and higher demand from the food and beverage industry. To meet this rising demand amid lower domestic production, imports are expected to increase,

resulting in a decline in stock levels.

Turkey: Sugar production is forecasted to decline by 3,00,000 Tonnes to 3.1 Million Tonnes due to hot and dry weather in SS 2024-25. Imports are projected to more than double to compensate for the reduced production, while exports are expected to decrease. Consumption and stock levels are anticipated to remain unchanged.

(Source: USDA)

Indian sugar industry overview

India holds the distinction of being the largest consumer of sugar in the world, making the sugar industry one of the most significant agro-based sectors in the country. The industry not only supports Millions of farmers but also contributes meaningfully to the rural economy and national GDP. The major by-products of sugar production are molasses, bagasse fibre, and cane wax. Cane is the syrups that remain after the sugar has been crystallized out. India achieved a sugar production of 25.49 Million Tonnes by April in the ongoing 2024-25 sugar season, an 18% dip from last year. Indias sugar availability is expected to remain comfortable due to a carry forward stock of about 8.5 Million Tonnes from the previous sugar season (2023-24). Sugar consumption is expected to reach approximately 28 Million Tonnes, a decrease from the 29 Million Tonnes consumed in the previous year. This decline is attributed to the absence of significant events, such as the 2024 General Elections, which had previously boosted sugar demand with an estimated 4 Million Tonnes of sugar (sucrose) diverted towards ethanol production and closing stocks of 8.78 Million Tonnes as of September 2025. Despite a slight reduction in acreage from 5.74 Million hectares to 5.37 Million hectares, cane yields are expected to improve, supporting a strong output of 439.93 Million Tonnes in 2024-25. Indian sugar producers and traders are anticipating a substantial 19% decline in sugar production for the 2024 25 season. Indias net sugar production for the 2024 25 season is projected to be approximately 26.4 Million Tonnes (264 Lakh Tonnes).This estimate accounts for the diversion of about 3.5 Million Tonnes of sugar towards ethanol production. The reduction from earlier forecasts is primarily due to lower sugarcane yields in key producing states like Maharashtra and Karnataka. ISMA projected a closing stock of around 5.4 Million Tonnes by the end of the season, which exceeds the normative requirement and should help stabilize prices. The sharpest decline is expected in Maharashtra, with a projected fall of approximately 27%, while Uttar Pradesh is likely to see a decrease of about 13%. The Indian sugar and bioenergy manufacturers association (ISMA) provided a slightly more optimistic estimate, forecasting sugar production at around 26.4 MT, after accounting for the diversion of 3.50 Million Tonnes toward ethanol production. At the beginning of 2025, ISMA reported total production of 23.3 Million Tonnes, with 228 mills still operational across India. In Uttar Pradesh, improved plant cane recovery and yields may extend the crushing season into April, although mills in the central and eastern regions are expected to shut by the end of March. Meanwhile, reduced cane yield per hectare has lowered availability in Maharashtra and Karnataka, with some mills in Karnataka expected to resume operations during a special crushing season in June or July 2025. Final output projections stand at 8 Million Tonnes for Maharashtra (down from 11 Million Tonnes), 9 Million Tonnes for Uttar Pradesh (down from 10.4 Million Tonnes), and 4.1 Million Tonnes for Karnataka (lower than last years 5.3 Million Tonnes but slightly above earlier projections).

(Source: ISMA, Chem Analyst, Statista, Mordor intelligence, new Indian express)

Sugar Balance Sheet 2024-25 (in Million Tonnes)

Opening stock	8
Estimated production during sugar season FY 2024-25	26.2
Sugar availability	37.9
Estimated domestic consumption	28
Targeted exports during sugar season FY 2024-25	1
Closing stock	5

(Source: Gleat Business Standard)

Sugar opening stock, production, consumption and closing stock in India over the years

(in Million Tonnes)

Year	Opening Balance	Production	Consumption	Closing Balance
2014-15	7.47	28.3	25.6	9.08
2015-16	9.08	25.1	24.8	7.75
2016-17	7.75	31.6	24.5	3.88
2017-18	3.38	32.5	25.4	10.72
2018-19	10.72	33.16	26	14.5
2019-20	14.5	27.4	25.3	10.7
2020-21	10.7	30.8	26	8.5
2021-22	8.5	36	27.5	7
2022-23	5.7	35.0	27.5	6.2
2023-24	5.18	34.0	29.50	7.68
2024-25	8	33.3	30.10	5

(Source: Chini Mandi. The Hindu Business Line)

Performance of major sugar growing states

Maharashtra: Sugar production declined to 8.07 Million Tonnes as of mid-April 2025, down from 10.94 Million Tonnes in the previous season. The decrease is attributed to reduced sugarcane yields and early closure of mills due to lower cane availability.

Uttar Pradesh: Production slightly decreased to 9.11 Million Tonnes from 10.18 Million Tonnes in the 2023 24 seasons. Despite this, Uttar Pradesh experienced the smallest decline among major producing states, owing to improved plant cane recovery and yield.

Karnataka: Sugar output fell to 4.04 Million Tonnes, compared to 5.06 Million Tonnes in the previous season. The decline is due

to lower sugarcane yields and early cessation of milling operations.

(Source: Statista, Money Control, ISMA)

Sugar exports and imports

At the beginning of 2025, India approved the export of up to 1 Million Tonnes of sugar for the year 2024-25, offering a boost to local sugar prices and enhancing liquidity. India exported 2,87,204 Tonnes of sugar by early April in the ongoing 2024 25 marketing year. This move is expected to improve realizations, supporting 50 Million farming families and 5,00,000 workers, while ensuring timely payments for sugarcane.

As the worlds second-largest sugar exporter from 2018-19 to 2022-23, India played a crucial role in supplying markets like Indonesia, Bangladesh, and the UAE. Despite no exports in the 2023-24 season, the limited export quota for 2024-25, coupled with strong production prospects, signals positive market conditions.

(Source: Chinimandi, Reuters)

Fair and remunerative prices

The Centre approved a H15/quintal increase in fair and remunerative price (FRP) of sugarcane for the 2025-26 season (October-September). Last year, the FRP was raised by H25/quintal. The FRP of sugarcane for season 2024-25 (October to September) stood at H340/ quintal for a basic recovery rate of 10.25%. Earlier, it was H315/quintal. There will be a premium of H3.46/quintal for every 0.1% increase in recovery over and above 10.25% and a reduction of H3.46/quintal in FRP for every 0.1% decrease in recovery.

(Source:Chini Mandi, The Hindu Business Line, Pib)

FRP over ther years

(in per quintal)

Year	FRP
2012-13	146
2013-14	170
2014-15	210
2015-16	220
2016-17	230
2017-18	255
2018-19	275
2019-20	275
2020-21	285
2021-22	290
2022-23	305
2023-24	315
2024-25	340
2025-26	355

Indian ethanol sector review

Indias ethanol market was valued at $6.51 Billion in 2023 and is expected to reach $10.45 Billion by 2029. This growth trajectory reflects a robust CAGR of 8.84%. Ranking just behind the United States and Brazil, India now holds the position of the worlds thirdlargest ethanol producer. A key pillar of its renewable energy strategy involves repurposing excess sugar into ethanol, a move that not only curbs dependency on fossil fuel imports but also reinforces the nations commitment to meeting its COP 26 pledges.

Oil Marketing Companies (OMCs) had finalized procurement contracts for approximately 369.54 Crores litres of ethanol. Of this, 181.03 Crores litres originated from sugar-based sources, while 188.51 Crores litres came from grain-based production, marking a nearly even split with grain accounting for 51.02% and sugar for 48.98%.

Indias ethanol-petrol blending rate has seen significant gains from just 5% in 2019-20 to 12% by 2022-23. During this time, ethanol production surged from 173 Crores litres to beyond 500 Crores litres. As of the conclusion of the Ethanol Supply Year (ESY) 2024, the blend ratio had climbed to 14.6%, reflecting steady progress toward the 20% target. Impressively, by the end of March 2025, blending had already hit 18.36%, with a monthly average of 19.78% achieved for March alone positioning India to meet its 20% target by 2025, well ahead of the initial 2030 deadline laid out under the National Policy on Biofuels (NPB) 2018.

To support this growth, the Union Cabinet recently revised the procurement price of ethanol derived from C-heavy molasses (CHM), raising it by H1.69 per litre to H57.97. The prices for ethanol produced using B-heavy molasses (BHM) and sugarcane juice (SCJ) have been maintained at H60.73 and H65.60 per litre, respectively, for a second consecutive year. This price revision benefits CHM-based producers, helping improve their operating margins. In contrast, distilleries utilizing BHM and SCJ continue to feel the pinch, especially after sugarcane prices rose by 3 5% in the previous year. As a result, production is expected to shift increasingly toward CHM and grainbased ethanol, which currently offer better returns.

(Source:ISMA,Chinimandi, groww.in, pib.gov)

Indian co-generation sector overview

Biomass plays a pivotal role in Indias energy landscape, supplying nearly onethird about 32% of the nations primary energy needs. For more than 70% of the population, it remains a vital energy source. In recent times, the bioenergy sector has demonstrated steady progress, with installed capacity rising from 10.84 GW in December 2023 to 11.35 GW by December 2024 marking a 4.70% growth over the year. Projections suggest that the domestic biomass market could scale up to H32,000 Crores by FY 2030 31, propelled by policy-driven support and growing international interest from clean energy investors.

To expand biomass use, especially in rural and underserved areas, the Indian government has rolled out targeted interventions, particularly focused on co-generation and biogas plant development. These policies have successfully attracted global green energy firms keen to participate in Indias expanding market for sustainable and dependable power sources. As energy demand continues to climb, biomass is expected to be a vital contributor to meeting this demand sustainably.

As part of its broader clean energy roadmap, India has anchored biomass development under the National Bioenergy Programme, which is being executed by the Ministry of New and Renewable Energy (MNRE) from 2021 through 2026. Phase-I of the programme is backed by a budgetary allocation of H858 Crores and is structured around three main components. The first is the Waste to Energy initiative, designed to harness energy from agricultural, municipal, and industrial waste streams complementing the SATAT schemes vision of commissioning 5,000 compressed biogas (CBG) plants. The second stream, the Biomass Programme, is focused on fostering pellet and briquette production while also pushing biomass co-generation as a solution to address crop residue burning. The third segment, the Biogas Programme, promotes decentralized energy through biogas plants tailored for small to mid-sized rural applications. Together, these schemes aim to shift the country away from fossil fuels, mitigate pollution, and generate economic opportunities at the grassroots level.

The sustained implementation of these policy measures is expected to deliver bioenergy, close to 130 Million Tonnes of oil

equivalent (Mtoe) by 2040 meeting roughly 15% of Indias total projected energy requirement.

(Source: Economic Times, Ministry of New and Renewable Energy)

Government initiatives

The government capped sugar diversion for ethanol making at 17 Lakh Tonnes for the current 2023-24 season (October-September) in view of likely fall in sugar production due to drought in parts of Maharashtra and Karnataka. The government had recently announced an incentive for ethanol made from maize. But since the sugarcane crop is more efficient in terms of water, nutrients, land use or carbon sequestration, as compared to maize, sugarcane also deserves to be supported more by the government. (Source: business-standard.com)

Demand drivers in the sector

Growing population: The population of India is projected at 1.46 Billion as of March 31, 2025, a 0.92% increase from 2023. This

steady growth ensures a broader market reach for the Company.

Environmental growing conditions: Sugar cultivation in India is expected to rise, as South Indias milder summers and frost-

free, moderate winters create favorable growing conditions.

Beverage market gap: Indias low nonalcoholic beverage consumption offers strong growth potential.

More demand for related products: The tea industry in India was valued at H 1.00 trillion in 2024 and is expected to reach H 1.47 trillion by 2029, expanding at a compound annual growth rate (CAGR) of 6.98% (2025-2030). Sugar, a complementary good to tea, is expected to see parallel growth.

Value-addition importance: The growing consumer interest in enhanced products is fueling expansion in the packaged goods

sector.

Rising end-product demand: The growing appetite for sweets and chocolates is directly driving higher sugar consumption.

Pharmaceutical industry: Indias pharmaceutical industry, valued at around US$58 Billion, is projected to reach US$120-130

Billion by 2030 and US$400-450 Billion by 2047. Sugars vital role in pharmaceutical production supports industry expansion.

(Sources: India Briefing, Global News Wire, Worldometer)

Company overview

Parvati Sweetners & Power Limited ("PSPL"), is a part of the LNCT Group, Bhopal (M.P.) Established in 2011, the Group is in the sugar business for over 14 years and consequent upon various schemes of merger and demerger, this Company was incorporated on 13.12.2011 PSPL Sugars core business includes sugar and its bye products. Sugar mills have crushing capacity of 2500 TCD. PSPL Sugar plant is located in Gwalior (M.P.).

Financial Performance with respect to operational performance

During the year under review, the Revenue from operations amounted to Rs. 5,356.95 as against Rs. 8,057.90 in the previous year. The Profit Before Tax decreased to Rs. 4.34 as against Rs. 299.66 reported in previous year. The Net Profit for the year under review amounted to Rs. 58.48 as against Rs. 142.64 in the previous year. During the year under review, the Earning per Share of the company is Rs 0.04 (Basic) and Rs 0.04 (Diluted).

All figure in lakhs*

Ratio

Ratios	FY24-25	FY23-24
Debtor Turnover Ratio	48.59 times	40.35 times
Inventory Turnover Ratio	0.62 times	0.86 times
Interest Coverage Ratio	0.19 times	2.09 times
Current Asset Ratio	6.61 times	1.91 times
Debt to Equity Ratio	0.29 times	0.51 times
Operating Profit Margin Ratio	0.86 times	1.81 times
Net Profit Margin Ratio	1.09%	1.77 %
Return on Equity Ratio	0.01%	0.01 %

Financial Review

Total revenue:- Rs. 5374.37 Lakhs Total Expenditure:- Rs. 5370.03 Lakhs Profit after Tax:- Rs. 58.48 Lakhs

Risk, Concern and Threats

The Company recognizes that risk is inherent to any business activity and that managing risk effectively is critical to the immediate and future success of the Company. The Company having many risk, concern like:-1. The distance between the mills and cane fields are expected to pose a risk to the Companys business.

2. The Company could get affected by a situation of excess of supply over demand. 3. The Company may face risks involved in the procurement of sugarcane. 4. The Company may face the risk of low-quality sugarcane 5. The Company may face risks due to increasing debts.

6. Climatic vagaries could impact cane availability, quality and recovery

7. A change in the regulatory environment could impact operations

Risk management at our organization,

At PSPL, the corporate policy (and in effect our ability to manage organisational risk) is framed by our Board of Directors, comprising esteemed professionals with vast industry experience. Our governance principles, including overall risk tolerance, are directed by the Board of Directors. Our Board is assisted by various committees with specific functions like Risk Management Committee, Audit Committee, Stakeholders Relationship Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee, which also includes Board member(s) who report their findings to the Board of Directors. As a governance initiative, we ensure that members within our risk management structure are acquainted with our risk strategy and processes, ensuring complete transparency as well as improved ability to manage everyday risks. Our risk governance boosts the development and maintenance of an effective risk and control culture.

We have the following procedure for mitigation the risk:-1. Risk identification 2. Risk assessment

3. Development, implementation and follow up of risk management activities

4. Monitoring

Internal Control systems and their adequacy

The Companys internal audit system is being continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented by the independent internal auditors on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively

Human Resource Management

The Company believes that the quality of the employees is the key to its success and is committed to equip them with skills, enabling them to seamlessly evolve with ongoing technological advancements. During the year, the Company organised training programmes in different areas such as technical skills, behavioural skills, business excellence, general management, advanced management, leadership skills, safety, values and code of conduct. The Companys employee strength stood at 489 as on 31 March, 2025.

Cautionary Statement

Statements in the Management Discussion and Analysis relating to the Companys objectives, predictions, and outlook may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may vary significantly from the forward looking statements contained in this document due to various risks and uncertainties.

These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates and in the security market, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update these statements.

Environment, Health and Safety

Environment

The Company strives to be a responsible corporate entity. The Company, therefore, recognizes the impact of its operations on the environment and hence are committed to strictly adhere to the Environment, Health and Safety (EHS) norms and compliance standards set by the Government of India.

Green Initiative

Your Company has set up a standard operating procedure (SOP) for managing hazardous waste at all units also formed an inter-unit committee with the objective of minimising freshwater consumption. It is done by enhancing the use of recycled water, which automatically reduces the use of water.

Environmental initiatives

The company continues to abide by all applicable environmental regulations for all its operations in India. From energy generation to energy consumption, water consumption to wastewater generation and its disposal, product manufacturing to waste generation and fuel consumption is reported on a monthly basis to the management. SPCC tank assessments have also been initiated at all sites to identify gaps in the system and prepare plans to take necessary steps for its implementation.

Health and safety

During the year, the Company continued its efforts to strengthen the health and safety of its employees your company also start many safety and health measurements for protection of the employees and their family, your Company has strictly adhere the guidelines stipulated by the government of India. Advanced fall protection systems were implemented in a phased manner at all sites to ensure better safety of employees.