Plaza Wires Ltd Management Discussions

PRIMARY BUSINESS OF OUR COMPANY

We are an ISO 9001:2015 and 14001:2015 certified company engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminium cables and fast moving electrical goods under our flagship brand "PLAZA CABLES" and home brands such as "Action Wires" and "PCG". In 2021, we launched a line of house wire under the brand "Action Wires" for product at economical price range. Our product mix comprises different type of wires and cables, and fast moving electrical goods such as electric fans, water heaters, switches and switchgears, Poly Vinyl Chloride insulated electrical tape and Poly Vinyl Chloride conduit pipe & accessories. we are one of the growing manufacturers in the wires and cables industry in northern region in India, and provide extensive range of wires and cables.

GLOBAL MARKET OVERVIEW

With stable but modest growth for 2024, the global economy remained on the path of cautious stability. According to the International Monetary Fund (IMF), the global economy grew at a modest rate of 3.3%, matching the previous year but below the historical average of 3.7% from 2000-2019. In January 2025, the IMF expected the global economy to grow at 3.2% for both 2025 and 2026. But escalating trade tensions and tariff implementation by the current US administration have led to significant uncertainty in global economic projections. IMFs April 2025 World Economic Outlook reflects some of these concerns, with downward revision to growth estimates at 2.8% and 3% respectively for 2025 and 2026. For 2024, the economic performance varied significantly across regions. 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 labour market. However, the current trade-related disruptions are expected to impact growth, with projections indicating deceleration to 1.8% in 2025. The Euro Area presented a contrasting picture with a sluggish growth of 0.9% in 2024 amid manufacturing weaknesses and geopolitical uncertainties. Growth is expected to slow further to 0.8% in 2025 before rebounding in 2026. Advanced economies (AEs) expanded by 1.9% in 2024, which is expected to slow down to 1.2% in 2025 before improving to 1.5% in 2026 due to world trade-related headwinds. Emerging markets and developing economies (EMDEs) are forecast to grow at 3.3% after a 4.8% growth in 2024. Chinas economy registered a 5% growth in 2024 with internal and external headwinds. This growth is further expected to moderate to 4% in 2025, as fiscal support measures partially offset trade policy uncertainties and property sector headwinds. Meanwhile, India remains a bright spot, maintaining robust growth of 6.5% in 2024, with similar projections for 2025 and 2026, aligning with its long-term potential. Global disinflation has continued, with headline inflation declining from 6.8% in 2023 to an estimated 4.7% in 2024, and projected to fall further to 4.3% in 2025 and 3.6% in 2026. Core inflation remains elevated in some economies, particularly in services, reflecting persistent cost pressures. Advanced economies are moving closer to their inflation targets faster than emerging markets, allowing for more accommodative monetary policies in several regions. However, the pace of policy easing remains uneven, with some central banks cautiously cutting rates while others maintain a tighter stance to address lingering inflation concerns. The global economic outlook faces significant challenges from escalating trade policy uncertainties, ongoing geopolitical risks, and tariff escalations continue to pose downside risks, particularly for trade-intensive economies.

INDIA OUTLOOK

Indian economy continues to be the fastest-growing large economy, though the pace of growth has slightly moderated for FY 2024-25. According to the Government Estimates, the economy grew 6.5% in FY 2024-25, compared to 9.2% growth in FY 2023-24. 9.4% growth in the Construction sector and 7.2% growth in the services sector have been the main contributors to GDP growth in FY 2024-25. Indias merchandise trade deficit stood at US$ 282.83 billion compared to US$ 241.14 billion in the previous fiscal year. Total merchandise exports were almost flat at US$ 437.42 billion in FY 2024-25 compared to US$ 437.07 billion in FY 2023-24. For the financial year 2024-25, the cumulative IIP growth stood at 4%, a slowdown from the 5.9% growth recorded in the previous year. The mining sector recorded 3% growth, manufacturing stood at 4.1%, metallic minerals at 4.2% and electricity at 5.2%. CPI inflation has been on a downward trajectory and eased to 4.6% for FY 2024-25.

According to the Reserve Bank of India (RBI), CPI inflation is forecasted to decline further to 4% 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. Considering inflation has stayed within the comfort band of RBI, the bank reduced REPO rates by 25 bps in February 2025 for the first time in five years and by further 25 bps in April 2025 monetary policy. Additionally, in June 2025, RBI again cut down the REPO rate for the third time by another 50 bps, taking the effective REPO rate to 5.5%. RBI projects the Indian economy to grow at 6.7% for FY 2025-26. This growth will be achieved on the back of improvements in the manufacturing sector and government impetus to growth through the budget like reduction in direct taxes and investments in infrastructure.

Wire and cables demand is directly dependent on the growth of the manufacturing industry and infrastructure in the power, telecommunications, residential and commercial sectors. Thus, the governments initiatives on various fronts like - power, housing, infrastructure and digitization are sure to generate a lot of business for the wire and cable industry in the foreseeable future.

The manufacturing industry too is experiencing robust growth due to growing capacity utilization, the PLI scheme, and the ‘Make in India initiative, generating more business opportunities for Wire & Cable players.

A Brand PLAZA CABLE is a familiar name in the industry and owing to our past legacy and we plan to gain energy from the same. We are not only focussing on current operations and developments but also looking to future for expanding our business and operations. The PLAZA CABLE has been fortunate to have strong connection with major industrial players because of qualitative products matching with the requirements. The factory being located in the state of Baddi, Himachal Pradesh which is largest industrial growing state and has immense opportunities in wires and cables industry. Further, a new plant has been established and commence its Business operations in Barotiwala, Himachal Pradesh.

Over our operating history of more than a decade, our supply chain model predominantly comprises of our network of authorized dealers, distributors, retailers and C & F agent who in turn supply our products to retail outlets in India. We have a wild network of authorized dealers and distributors pan India for the period ended on March 31, 2025. We supply our products across various states, mainly in states of Delhi, Uttar Pradesh, Haryana, Kerala, Rajasthan, Dehradun, Mumbai, Punjab, Guhwahati, Tamil Nadu, J&K, Bihar, Madhya Pradesh Himachal Pradesh and

West Bengal. For the Fiscal 2025, 2024 and 2023, the aggregate revenue from operations (including trade discounts to dealers and distributors) from these states were 2112.18 million, 1870.36 million and 1739.84 million, respectively. The percentage of the aggregate value to our revenue from operations for Fiscal 2025, 2024, and 2023 were 96.81%, 94.08%, and 95.33%, respectively. We manage our sales and marketing activities through our registered office in Delhi, and branch offices and C & F agent at various locations. We had customers expanded to 32 states and states/union territories based on March 31,2025.

We sell our products through a variety of distribution channels depending on the geography and industry norms and trends. 1) We select our dealers & distributors based on their sales network, market reputation and financial strength including sales 2) Securing government tenders for supply to government projects and 3) Direct sales to infrastructure projects

OPPORTUNITIES AND THREATS

The management of the company is well equipped with the vision to take company towards high growth with optimum utilization of resources of the company in proper manner. The management is taking diligent efforts to boost the capacity utilization of the company. The company has hired qualified professionals to stimulate the vision and motive of company.

STRENGTH

Cables are the backbone of the Communication, Power and Real estate Sector. Favorable demographics and increased discretionary spending drive the growth of this sector. Wires and cables are essential components across numerous major industries, including energy, construction, telecommunications, and automotive, ensuring consistent demand. Initiatives like "Make in India" and investments in smart cities and infrastructure development (e.g., in India) create a favorable environment for market growth. The increasing need for high- performance, lightweight, and data-rich cables for high-speed communication and smart applications creates opportunities for innovation. India is the fastest growing telecom market in the world adding huge subscribers base every month. In addition, the telecom companies are aggressively making inroads into rural markets. In addition, with the government initiatives is likely to keep the demand for telecom infrastructure, including cables to remain strong. The Indian cable industry is having strong clearly there is great potential for further expansion in India. The residential sector is expected to grow significantly, with the central government aiming to build more than 30 million affordable houses in urban areas across the country under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs. Expected growth in the number of housing units in urban areas will increase the demand for commercial and retail office space.

WEAKNESS

Weakness The raw material prices viz; the copper and Aluminium remains volatile and the industry is fully dependent on them. The Russia-Ukraine crisis and other countries war expected to affect the copper supply side more than the demand side. The market is highly fragmented, with many small, unorganized players limiting the pricing power of larger companies. Aluminium prices have remained at elevated levels in recent weeks on supply concerns after European primary aluminum smelters were forced to cut their output due to energy crisis. All this will have impact on the margins of the manufacturer. Establishing manufacturing facilities and investing in new technologies demands significant upfront capital investment, which can be a barrier for new entrants.

OPPORTUNITIES

RENEWABLE ENERGY AND ELECTRIFICATION:

The global surge in investment in renewable energy and the expansion of power grids present significant opportunities for cable manufacturers.

INFRASTRUCTURE DEVELOPMENT:

Government and private sector investments in infrastructure projects, such as transportation (e.g., metro railways), energy transmission, and telecommunication towers, drive demand.

SMART TECHNOLOGIES:

The development of smart cities and Industry 4.0 applications creates a demand for advanced, smart cable solutions with real-time monitoring capabilities.

SUSTAINABILITY:

There is an increasing demand for recyclable and eco-friendly cables and manufacturing processes, offering a niche for companies focusing on sustainable practices.

THREATS

REGULATORY COMPLIANCE:

Manufacturers must adhere to increasingly stringent environmental and safety regulations, which can add to operational costs and complexity.

RAPID TECHNOLOGICAL OBSOLESCENCE:

Continuous advancements in technology require constant investment in R&D and may render existing products obsolete, posing a challenge for smaller companies.

SUPPLY CHAIN VULNERABILITIES:

Dependence on specific raw materials and potential supply chain disruptions can negatively impact operations and profitability.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company achieved Revenue from operations of 2181.75 Million as compared to 1988.05 Million in the previous financial year. Further, the Company has earned profit after tax and exceptional items of 28.84 Millions in the current financial year as against profit of 36.77 Millions in the previous financial year.

KEY STANDALONE FINANCIAL RATIOS

PARTICULARS	FY 2024-25	FY 2023-24	EXPLANATION FOR CHANGE IN THE RATIO BY MORE THAN 25% AS COMPARED TO THE PREVIOUS YEAR
Debt Equity Ratio	0.21	0.35	Change occurred due to decrease in debt as compared to previous year
Debt Service Coverage Ratio	1.69	1.32	Change due to decrease in debt and debt repayment.
Return on Equity Ratio	2.39%	4.26%	Change due to decrease in profit as campared to previious year
Net Capital Turnover Ratio	2.87	2.11	Change occured due to Increase in turnover as compared to previous year.
Net Profit Ratio	1.32%	1.85%	Change ocurred on account of lower profit in current year as compared to previous year.
Return on Investment	73.56%	22.33%	Return on Investment (ROI) is not applicable since the company do not have any significant investment.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human capital is the most essential part of the Company. The Company keeps promoting a collaborative work environment where all the employees feel safe and a part of the Company. The Human Resources policies of the Company are aimed at attracting, nurturing and retaining talent in a constantly evolving business environment while ensuring trust, transparency and teamwork amongst its employees.

The Company recognizes the importance of human resources in realising its growth ambitions and believes in nurturing talent within the organization to take up leadership positions. During the year Company continued to maintain healthy and cordial relationship with its employees.

EXPORTS

Plaza Wires Limited export business has expanded its business operations by introducing their products internationally. The entrance has been initiated through Bhutan, neighboring county of India. In the Financial Year 2024-25, the company has made in export of Wires & Cables and earned 0.97 millions revenue. Further, the company is focusing to cater international market covering major countries in the next upcoming financial years.

RISKS AND CONCERNS

The wire and cable industry has vast potential in growth in coming years but it has some challenges also, the increasing price rise and competition from Chinese imports. The wire and cable industry is experiencing volatility in raw material prices, as the price of copper continues to increase, profit margins are squeezed and they become uncompetitive in the international market. Country is experiencing an all-time high price of fuel its direct impact on domestic transportation, in result wire and cable transportation has increased. Also, a large section of the industry is still unorganized; there is a lack of quality product offerings from these players due to noncompliance with the product guidelines. Slowdown in the Indian economy due to global developments could adversely impact growth in the short-term envisage a risk Management is yet to set up exercises to be carried out to identify and evaluate, manage and monitor various risk.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has a well-framed internal control system commensurate with the size and nature of its business. These internal controls ensure safeguarding of assets from unauthorised use or disposition, proper recording and reporting of all transactions and compliance with applicable regulatory requirements. The internal control systems are reviewed and modified continually to keep up with the changes in business environment and statutory requirements. The framework is monitored by the internal audit team of the Company. The Audit Committee of the Board is periodically apprised of the internal audit findings. The Audit Committee reviews the efficacy and effectiveness of the internal control system, takes corrective actions and suggests measures for strengthening it. The Company has a robust Management Information which forms an integral part of the control mechanism.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company prepared its Financial Statements to comply with the Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. These Financial Statements includes Balance Sheet as at 31st March 2024, the Statement of Profit and Loss including Other Comprehensive Income, Cash Flow Statement and Statement of changes in equity for the financial year ended on 31st March, 2024, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as "Financial Statements").

CAUTIONARY STATEMENT

Statements in this report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations that involve risks and uncertainties. Such statements represent the intention of the Management and the efforts being put into place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgments by considering all relevant factors before making any investment decision.

	For and on behalf of Plaza Wires Limited
	SANJAY GUPTA
Date: 14th August, 2025	Chairman and Managing Director
Place: Delhi	DIN:00202273