POCL Enterprises Ltd Management Discussions

The management discussion and analysis report sets out developments in the business environment and the Companys performance since the last report. The analysis supplements the Boards report, which forms part of this Annual Report.

OVERVIEW OF GLOBAL ECONOMY

The global economy expanded by 3.3% in the year

2024, demonstrating resilience in the face of persistent geopolitical tensions. However, growth remained uneven across regions. The United States maintained strong economic momentum, while the Euro area experienced a more subdued pace of recovery. On the inflation front, global disinflation trends persisted, though progress varied, stalling in some economies and remaining elevated in others.

Looking ahead to 2025, the global economy continues to navigate a complex and uncertain landscape shaped by shifting trade policies, lingering geopolitical frictions, and evolving monetary conditions. The year 2025 began with a sharp escalation in trade tensions, particularly after the United States imposed multiple rounds of tariffs in February, prompting retaliatory measures from the key partners. However, a partial reversal by the U.S. in

May, especially the easing of tariffs on China, helped in bringing some temporary relief. This fragile de-escalation, alongside improved financial conditions and front-loaded exports to avoid future tariffs, has helped support short-term economic resilience. Reflectingthese developments, the International Monetary Fund (IMF) has revised its global GDP growth forecast upwards, projecting 3.0% growth in 2025 and 3.1% in 2026, as compared to its April 2025 projections of 2.8% and 3.0%, respectively.

Inflation trends have been encouraging, with headline inflation moderating across most major economies, aided by stabilizing commodity prices and recovering supply chains. While central banks continue to maintain restrictive monetary stances, the slowing inflation has reduced the urgency for further rate hikes, providing room for eventual policy easing. The G20 economies are projected to see inflation decline from 6.2% in 2024 to 3.6% in 2025, and further to 3.2% in 2026. However, U.S. inflation remains somewhat elevated compared to peers, complicating its policy outlook. The relative stability in inflation has also supported financial market confidence, though interest rate cuts have been limited so far. Emerging markets, supported by strong domestic demand and growing investment in digital infrastructure are expected to show greater resilience amid this evolving backdrop.

Despite these positive signals, significant downside risks continue to cloud the global outlook. Effective tariff rates remain historically high, comprehensive trade agreements remain elusive, and global trade as a share of output is projected to decline from 57% in 2024 to 53% by 2030. Moreover, recent currency movements have added complexity. Combined with fragile geopolitical conditions, including ongoing conflicts in Europe and the Middle East, these factors continue to disrupt supply chains and weigh on energy prices and investment sentiment.

Looking ahead, the global economy is expected to grow at a moderate pace, but remains vulnerable to shocks. Structural challenges such as low productivity growth, fiscal consolidation in advanced economies, and demographic constraints will continue to limit upside potential. While emerging markets are likely to benefit from market diversification growth, advanced economies face slower recoveries. A coordinated policy response including trade normalization, inflation management, and geopolitical de-escalation will be essential to reinforce global growth prospects and ensure a more predictable and sustainable recovery. Despite ongoing uncertainties, the global economy is entering a phase shaped by both emerging challenges and promising opportunities, with the potential for a more resilient and inclusive path forward.

INDIAN ECONOMY OVERVIEW

Indias economy exhibited strong resilience during the financial year 2024 25, achieving GDP growth of 6.5% despite global headwinds and domestic challenges. While this represented a four-year low compared to the previous years 9.2% growth, it maintained Indias position as the worlds fastest-growing major economy. The economy showed strong quarterly momentum, with Q4 FY25 recording an impressive 7.4% growth, the highest among all four quarters of the year. The service sector emerged as the primary growth driver, expanding at 8.3% and contributing 55.3% to total GVA, while manufacturing grew at a modest 4.5% and agriculture sector recorded

4.6% growth. Inflation remained well-controlled at 4.6% for the full year, the lowest since 2018-19, with March 2025 witnessing a further decline to 3.34% year-on-year. The fiscal deficit improved significantly to 4.8% of GDP from

5.6% in the previous year, while foreign direct investment inflows surged 14% to USD 81.04 billion, with the service sector attracting the highest FDI equity inflows

The outlook for Indias economy in FY 2025·26 remains cautiously optimistic, with major international agencies projecting growth between 6.3% and 6.5%, reaffirming

Indias status as the fastest-growing major economy globally. To support growth amid persistent global uncertainties, the Reserve Bank of India adopted a more accommodative stance in June 2025, reducing the repo rate by 50 basis points to 5.5% and shifting to a neutral policy stance. Growth is expected to be driven by resilient private consumption, strong public infrastructure investment, and robust services exports, particularly in technology and telecommunications, where India remains the second-largest global exporter.

However, the external environment presents ongoing challenges, including global trade tensions, potential adverse effects from U.S. tariffs on merchandise exports, and the need for sustained private investment to complement the governments capital expenditure push. The government continues to prioritize fiscal consolidation, infrastructure development, and structural reforms, with the Union Budget 2025 introducing key tax rationalization measures to enhance investor confidence and medium-term growth prospects.

Growth in FY 2026 is also expected to benefit from a combination of easing monetary policy, government initiatives to stimulate private consumption, and a planned

10.1% increase in capital expenditure. The Union Budget

2025·26 builds further momentum through targeted support for agriculture, MSMEs, capital formation, and exports. Notably, landmark tax reforms including income tax exemption up to Rs. 12 lakh and restructured tax slabs are designed to bolster household spending and provide greater relief to the middle class.

With a robust policy framework, continued reform efforts, and the long-term “Viksit Bharat” vision, India is well-positioned to sustain its growth trajectory, deepen its economic resilience, and reinforce its role as a key pillar of global economic stability.

INDUSTRY STRUCTURE, DEVELOPMENTS AND OUTLOOK

Zinc

Zinc is a bluish-white metal characterized by its brittleness at room temperature and malleability when heated. Naturally found in the Earths crust, zincs unique combination of chemical, physical, and electrochemical properties makes it indispensable across a range of industries. It remains indispensable to both traditional infrastructure and emerging clean technologies. Its most prominent use is in galvanization, where it serves as an effective corrosion-resistant coating for steel.

Beyond galvanizing, zinc plays a significant role in the construction, transportation, infrastructure, agriculture, and, increasingly, the energy storage sectors. Its relevance has expanded in the energy transition space, particularly in solar mounting structures and zinc-based batteries, which offer safe, recyclable, and environmentally sustainable energy storage solutions for electric vehicles and grid-scale applications.

The global zinc market is projected to grow from an estimated 13.78 million tons in 2025 to 14.86 million tons by 2030, registering a compound annual growth rate (CAGR) of 1.52%. This moderate growth reflects shifting consumption patterns as the industry moves beyond traditional uses into emerging applications. While galvanizing remains the dominant end-use segment, accounting for 52.34% of market demand in 2024, zincs role is evolving with increased focus on sustainability, innovation, and circular economy practices. Asia-

Pacific accounting for 62.84% of global consumption in 2024. The regions growth is underpinned by robust infrastructure investment in China and India, expanding smelting capacity, and rising use of zinc-based agricultural inputs.

Looking ahead, Asia-Pacific is projected to expand at a

CAGR of 2.48% through 2030. The region is also emerging as a key player in zinc innovation, particularly in clean energy storage and sustainable fertilizer applications. On the production side, the industry is steadily shifting toward more environmentally responsible practices. Primary production still accounts for 65.58% of global supply as of 2024. However, secondary production largely from steel-making dust and zinc scrap is gaining ground, currently supplying around 34% of zinc demand in developed markets. Secondary production is forecasted to growataCAGRof2.67%through2030,drivenbyimproved recovery technologies and stricter environmental, social, and governance (ESG) requirements. As sustainability pressures mount, producers are investing in smelting upgrades to reduce emissions, enhance energy efficiency, and maintain profitability.

Refined zinc remains the most consumed form, comprising 72.17% of the market in 2024. However, refined zincs dominance is increasingly complemented by growing demand for specialty compounds used in fertilizers, chemicals, and energy technologies. Similarly, the construction sector continues to lead end-user demand, with a 56.68% market share in 2024. Meanwhile, the electrical and electronics sector is projected to grow at the fastest pace, with a 2.37% CAGR through 2030, largely due to the expanding role of zinc in energy storage and electronic components.

In FY 2025, zinc prices remained elevated despite notable volatility triggered by macroeconomic uncertainties and geopolitical developments. The LME zinc price averaged

USD 2,875 per tonne during the year, marking a 16% increase over FY 2024s average of USD 2,475 per tonne. Prices peaked at USD 3,102.91 per tonne in October

2024, supported by sharp inventory drawdowns, before moderating to USD 2,887.83 per tonne by March 2025. LME inventories declined significantly to 141kt from 264kt in March 2024, underscoring tightening global supply conditions.

On the supply side, global refined zinc production contracted by 4% to 13,167kt in CY2024, compared to

13,712kt in CY 2023, while global refined consumption rose by 1.7% to 13,602kt, resulting in a market deficit of

436kt. The trade environment remained challenging due to aggressive US tariff policies, which weighed on industrial activity and consumer sentiment. However, infrastructure-led spending in China and Germany helped mitigate some of the downside, with Germanys Euro 500 billion investment program expected to support regional zinc consumption growth of 2.9% annually between 2025 and 2027. India maintained its position as a key contributor to global zinc demand, with FY 2025 consumption reaching 783kt, driven by resilient manufacturing activity and infrastructure development. The HSBC S&P Global India

Manufacturing PMI rose to 58.1 in March 2025, indicating steady expansion. The Union Budget 2025 26 further boosted momentum, allocating Rs. 11.2 trillion towards capital outlay, up 9.8% from the previous year, providing continued support for zinc-intensive sectors like railways, renewable energy, and rural electrification.

Looking ahead to CY 2025, the global zinc market is expected to remain tight but balanced, with refined production projected to rise by 4% to 13,637kt and consumption expected to grow by 2% to 13,892kt.

Geopolitical uncertainties, including tensions in the Middle

East and elevated US China tariffs, despite ongoing discussions to reduce duties to 10% - 20%, are likely to keep commodity markets volatile. The US Federal

Reserve has maintained interest rates at 4.25% - 4.50% amid gradually easing inflation, which has moderated to

2.4% but remains sticky at 2.8%. In contrast, Indias zinc demand is projected to grow by 6% - 7% in CY2025, supported by continued urbanisation, infrastructure investment, and rising household incomes. With strong policy support and resilient demand fundamentals, India is well-positioned to strengthen its role as a key driver in the global zinc market.

The zinc industry is entering a new phase of evolution marked by strategic shifts and emerging opportunities. Traditional applications in galvanization and construction will remain foundational, but newer growth areas such as long-duration battery storage, agricultural bio-fortification, and closed-loop recycling are set to redefine the industrys trajectory. Competitive dynamics are increasingly favouring vertically integrated players with both mining and recycling capabilities, positioning them to capitalize on premium opportunities in sustainable and high-value applications. Over the long term, the zinc market is expected to evolve into a more diversified and innovation-focused landscape.

Zinc Oxide

Zinc oxide (ZnO) is an inorganic multifunctional compound.

It is a white powder that is insoluble in water and is widely used as an additive in numerous materials and products. By application, the market is segmented into rubber and tyres, ceramics and glasses, pharmaceuticals and cosmetics, agriculture, paints and coatings, and other emerging uses. Among these, rubber and tyre manufacturing remains the most prominent segment, where ZnO plays a crucial role in the vulcanization process, enhancing the durability and thermal performance of tires. With the shift toward electric vehicles (EVs) and the increasing preference for radial tyres, demand for high-performance materials like zinc oxide continues to rise.

In ceramics and glasses, ZnO is valued for its contribution to thermal resistance and mechanical stability, supporting its widespread use in construction and electronics. In pharmaceuticals and cosmetics, its antibacterial, anti-inflammatory, and UV-blocking properties make it a key ingredient in sunscreens, ointments, and skincare products. Given its broad utility across industrial and consumer sectors, the powder form of zinc oxide is projected to remain the dominant product type driving market growth.

The global zinc oxide market was valued at USD 5.83 billion in 2024 and is projected to reach USD 10.90 billion by 2035, registering a CAGR of 5.85% between

2025 and 2035. This growth is attributed to zinc oxides diverse range of applications across rubber, cosmetics, pharmaceuticals, ceramics, and electronics industries. Among these, the rubber industry, particularly tire manufacturing, is a major driver of demand. In terms of volume, global demand is expected to grow at a CAGR of 4.2%, reaching approximately 2.75 million tonnes by 2032. The expansion is underpinned by rising demand across the rubber, ceramics, and pharmaceutical sectors, with the ceramics market alone expected to grow from USD 160.67 billion in 2024 to USD 295.26 billion by 2032 at a CAGR of 7.9%. Approximately one-third of global zinc oxide consumption is attributed to the ceramics and glass industries, underscoring the compounds integral role in these segments. Moreover, zinc oxide pricing remains largely insulated from global prices, as it tracks London

Metal Exchange (LME) zinc values, providing a relatively stable pricing environment. The Asia-Pacific region continues to dominate the global zinc oxide market, holding a 55.72% share in 2023. In parallel, the U.S. market is poised for steady growth, projected to reach USD

866.41 million by 2032, driven by robust demand from the pharmaceutical sector and steady adoption in rubber and cosmetic applications.

Indias zinc oxide market is estimated at approximately

130,000 MTPA in FY 2024, with a market value of around INR 32,000 crore. It is poised for robust growth at a projected CAGR of 10·12% through FY 2027, supported by increasing demand from the tyre, ceramics, paints, and cosmetics industries. Despite being a fragmented market withover50producers,nearlyhalfofthedomesticsupplyis controlled by organised players. The tyre industry, a major consumer of ZnO, is expected to continue expanding, as

India is projected to become the worlds third-largest tyre market by 2030, with tyre exports surpassing USD

5 billion. Rising auto sales, infrastructure investment, and the broader mobility transition, particularly toward EVs are reinforcing demand, both for OEM and replacement tyres. Organised manufacturers have responded with significant capacity expansion plans and product innovations tailored to next-generation mobility solutions.

The domestic ceramics sector is also a strong growth driver. Indias ceramic tiles market, valued at USD 9.20 billion in FY 2024, is projected to reach USD 17.36 billion by FY 2029, growing at a CAGR of 13.54%. This expansion is supported by a sustained housing demand (forecasted to grow above 9% annually) and government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the Real Estate (Regulation and Development) Act (RERA). The ceramicssectoraloneconsumesaround20%ofIndiastotal zinc oxide output, underscoring its strategic importance as an end-use segment and ensuring continued visibility for demand. With increasing industrialisation, policy-led housing growth, and rising consumer awareness, Indias zinc oxide market is well-positioned to become a global growth engine in the coming years.

Lead

Lead (Pb) is a soft, malleable, bluish-white dense metal typically found in ores alongside zinc, silver, and copper. It is one of the most recycled and versatile non-ferrous metals globally. Its primary use, accounting for over 85% of global consumption, is in the production of lead-acid batteries, which are vital to automotive, telecom, solar energy, uninterruptible power supply (UPS), and industrial backup systems. Beyond usage in batteries, lead finds niche applications in radiation shielding (used in healthcare and nuclear sectors), pigments, ammunition, soldering and cable sheathing. The recyclability of lead makes it a critical metal for energy systems and an important component in global energy security, especially as demand rises from renewable energy installations, smart grid development, and electric mobility.

Despite its strategic importance, the lead industry faces several systemic challenges. Informal recycling practices in developing countries raise serious environmental and health concerns. Additionally, raw material price volatility, driven by geopolitical instability and fluctuating demand, complicates cost planning and supply chain stability. Environmental regulations in developed economies have made compliance costly, particularly for smaller recyclers and smelters. Logistics inefficiencies and fragmented battery collection systems further disrupt the flow of recyclable feedstock. In response, global and regional authorities have introduced Extended Producer

Responsibility (EPR) frameworks, while formal recyclers are investing in cleaner smelting technologies and emissions control. Global organizations are also advocating for standardized recycling protocols and occupational safety norms. The global lead industry is expected to witness steady growth, driven by consistent demand from the replacement battery market and a rising focus on circular economy principles. While new-age battery chemistries like lithium ion are gaining prominence, the low cost, recyclability and reliability of lead-acid batteries continue to make them indispensable in developing markets and infrastructure applications. As regulatory oversight tightens and technology adoption improves, the share of formal recycling is expected to rise substantially. By 2030, it is projected that over 65%·70% of global lead consumption will be fulfilled through secondary (recycled) sources.

Companies that proactively invest in compliance, cleaner technologies and digital traceability will be better positioned to navigate the evolving landscape and capitalize on emerging opportunities.

In 2024, global refined lead demand rose modestly by

0.2% to 13.13 million tonnes and is projected to grow by 1.9% in 2025 to reach 13.39 million tonnes. The United

States is expected to lead the recovery in demand with a

4.3% increase in 2025, following an 8.3% contraction the previous year. European demand is projected to grow by nearly 2% in 2025 after a 4.4% decline in 2024, while Chinese demand, the worlds largest is likely to rise 1% after a 1.3% dip. Other markets including Brazil, India, and

Japan are also showing growth, though South Korea is expected to contract. Globally, lead-acid batteries remain the largest consumer segment, accounting for over 92% of lead usage.

On the supply side, global refined lead output was 13.20 million tonnes in 2024, down 0.2% YoY, and is forecast to grow by 2.4% to 13.51 million tonnes in 2025. China leads global refined lead production with over 5 million tonnes annually, followed by India (0.96 million tonnes), the US (0.95 million tonnes), Mexico (0.43 million tonnes), and the UK (0.31 million tonnes). Primary lead production from mining operations reached 4.54 million tonnes in

2024 and is expected to rise to 4.64 million tonnes in

2025. However, the secondary (recycled) segment now contributes around 60% of global refined lead supply. The market saw a surplus of 60,000 tonnes in 2024, which is projected to double to 120,000 tonnes in 2025.

In terms of pricing, lead experienced considerable volatility during FY24 25. Prices began at USD 2,129.46 per tonne in April 2024, peaked at USD 2,220.81 per tonne in May, and dropped to a low of USD 1,921.36 per tonne in January 2025 before partially recovering to USD 2,033.21 per tonne by March. The average price for the period stood at USD 2,043.53 per tonne, with a volatility of USD 84.88, reflecting persistent market uncertainty. This fluctuation was driven by a mix of oversupply conditions, demand softness in key markets, and regulatory tightening. The

London Metal Exchange (LME) lead price ended FY 2025 at USD 2,002 per tonne, up 2% YoY, though the average for the year fell slightly compared to FY2024. Analysts expect lead prices to stabilise around USD 2,100 per tonne in the near term, supported by steady battery sector demand despite ongoing surpluses.

The global lead recycling market continued to grow during

FY 2024 25, reaching an estimated USD 18.66 billion with a CAGR of 3.5%. Approximately 8.1 million tonnes of refined lead were produced from recycled sources, accounting for over 60% of total supply. This expansion is attributed to growing demand for lead-acid batteries in automotive, renewable energy, and backup power sectors. The rise of electric vehicles, where lead-acid batteries are used for auxiliary functions, further supports recycled lead demand. Environmental regulations and circular economy policies are also driving formalisation and investment in recycling infrastructure, particularly in Asia.

The governments removal of customs duties on lead scrap in the FY 2026 Budget has incentivised investment in organised recycling facilities. Moreover, the evolving battery mix is reshaping market dynamics. While lithium-ion batteries are expected to grow at over 15% CAGR through 2030 impacting traditional lead-acid markets, the Indian automobile sector still supports strong demand for lead-acid starter batteries, especially amid a 7.3% growth in domestic vehicle sales in FY2025.

Broader battery demand in India also grew by 6%·

8% YoY, supported by increased replacement cycles, telecom backup installations, and solar-off-grid solutions. Lead remains critical for these energy systems, offering a low-cost, recyclable solution for grid stability and energy storage. Apart from energy, demand also stems from housing, home appliances, and construction.

Looking ahead, global refined lead supply is projected to rise 2% to 14,486 kt in 2025, while consumption is expected to grow 1.5% to 14,369 kt. The Indian lead market is also likely to remain resilient. The countrys EV production surged 140% YoY in FY 2025, gradually shifting away from internal combustion engine (ICE) vehicles and moderating future lead-acid battery demand. However, government initiatives to promote domestic manufacturing and exports, alongside indirect tax reforms in the FY 2026 Budget, are expected to support sustained lead usage across sectors.

PVC Stabiliser

PVC (Polyvinyl Chloride) stabilizers are essential additives used to enhance the strength, performance, durability & longevity and also to enhance the heat sensitivity of PVC products. The PVC Stabilizers market is segmented by type, end-user industry and by geography. PVC Stabilizers are of various types such as Lead based stabilizers, Calcium-Zinc stabilizers, Barium-Zinc stabilizers,

Organotin stabilizers and Mixed Metal stabilizers and other types. PVC stabilizers are used by various industries such as construction, PVC pipes, automotive, electrical and electronics, packaging, footwear, and various other end-user industries.

The Global PVC Stabilizer Market was valued at USD 5.60 Billion in 2024 and is projected to reach USD 7.60

Billion by 2030, with a CAGR of 5.22%. This growth is driven by the increasing use of PVC in construction, automotive, and electrical systems, along with strict regulations. The recovering automotive industry, with global vehicle production increasing by 10.26% in 2023, is boosting demand for PVC stabilizers in components like underbody coatings, sealants, and interior parts. The rising EV industry also contributes to the demand for non-toxic Calcium Zinc stabilizers. The Indian PVC additives market generated a revenue of USD 529.7 million in 2024 and is expected to reach USD 767.4 million by 2030. The India market is expected to grow at a CAGR of 6.4% from

2025 to 2030. In terms of segment, stabilizers was the largest revenue generating product in 2024. Stabilizers is the most lucrative product segment registering the fastest growth during the forecast period.

Key trends include the development of non-toxic stabilizers due to environmental concerns and stricter regulations, as introduced by Bureau of Indian Standards (BIS) in India. Theres also a growing demand for PVC pipes, tubing, and fittings in construction, agriculture, and other industries due to their cost-effectiveness and durability. These stabilizers are crucial for maintaining PVCs longevity and performance. Conversely, the market for lead-based stabilizers is likely to decline due to health concerns and stringent government regulations on their disposal. However, demand for non-toxic stabilizers remains high.

To capitalize on the increasing demand for non-toxic stabilizers, POEL has invested in a new, dedicated manufacturing facility at Pondicherry. This facility will allow

POEL to produce non-toxic stabilizers for a wide range of applications. Furthermore, POEL has strengthened its marketing team to actively explore new customer opportunities in both domestic and international markets.

OPPORTUNITIES AND THREATS

POEL believes that it has a competitive edge in the market as the Company delivers timely and quality products to its customers. The Company has long-standing relationship with many of its customers and vendors. POEL also believes that the real strength of the Company lies with its employees and they are the assets of the Company.

The Company faces foreign currency fluctuation risk.

Movement in functional currency against major foreign currencies may impact the companys revenue, earnings and cash flows. Any weakening of functional currency may impact the companys cost of import and cost of borrowings. The Company uses forward exchange contracts to hedge the effects of movements in exchange rates on foreign currency. Further, the companys export revenue also acts as a natural hedge for its import operations.

The Company considers exposure to commodity price fluctuations to be an integral part of our business and its usual policy is to sell its products at prevailing market prices. Price and demand of the Companys finished products are inherently volatile and remain strongly influencedby global economic conditions. Any fluctuation in the finished product prices has direct impact on the Companys revenue and profits. POEL strives to address the challenges it faces in order to remain competitive.

FINANCIAL AND OPERATIONAL REVIEW

Brief highlights on the financials and operational performance for the year 2024-25 is summarized below:

Revenue from Operations for the financial year 2024-

25 was Rs. 1,450.10 Crores as against Rs. 1,120.44 Crores in the previous year. In comparison to the previous year, the Company has achieved a robust growth of 29.42%.

Our export sales for the year 2024-25 was Rs. 217

Crores as against Rs. 210 Crores in the previous year.

Major expenditure of the Company is accounted towards material cost. Material cost including changes in inventories for the year 2024-25 was Rs. 1,309.51 Crores which is about 90.30% of the total revenue.

The employee benefit expense for the year was Rs.

22.99 Crores as against Rs. 17.21 Crores in the previous year.

• Finance cost of the company for the year was Rs. 18.73 Crores as against Rs. 13.61 Crores in the previous year.

• Depreciation and amortization costs increased significantly during the year to Rs. 339.65 Lakhs as compared to Rs. 173.52 Lakhs in the previous year. This significant increase was primarily due to substantial additions to fixed assets and the capitalization of new projects.

Other expenses for the year was Rs. 54.90 Crores as against Rs. 44.47 Crores in the previous year majorly getting contributed from power & fuel, conversion charges and freight cost.

The company reported profit before tax of Rs.

4,179.64 Lakhs with earnings per share of Rs. 11.18/-.

• The total shareholders funds as on March 31, 2025 stood at Rs. 97.90 Crores.

KEY FINANCIAL RATIOS

Sl.No.	Key Financial Ratio	2024-25	2023-24	Remarks
1.	Debtors Turnover Ratio	24.13 times	16.86 times	The improvement in ratio is due significant amount of trading sales undertaken by the Company during the year as compared to the previous year, sales of which are with lesser/ almost at nil credit basis. Further, the improvement in ratio is also due to faster turnaround of collections and discounting of bills during the year as compared to the previous year.
2.	Inventory Turnover Ratio	18.53 times	18.74 times	--

 

3.	Interest Coverage Ratio	3.23 times	2.75 times	--
4.	Current Ratio	1.62 times	1.41 times	--
5.	Debt Equity Ratio	1.07 times	1.54 times	The improvement in debt-equity ratio is due to significant movement in total equity which is due to improvement in net profit earned by the Company during the year without any significant movement in total debt.
6.	Operating Profit Margin	4.41%	3.50%	The improvement in ratio is due to significant increase in the profitability of the Company which is due to better margins retained on sales.
7.	Net Profit Margin	2.15%	1.58%	The improvement in ratio is due to significant increase in the profitability of the Company which is due to better margins retained on sales.
8.	Return on Net worth	31.85%	26.03%	The improvement in ratio is due to increase in the profitability of the Company as a result of better margins on sales.

GEOGRAPHICAL REVENUE ANALYSIS

Particulars	2024-25	2023-24
Domestic	85%	81%
International	15%	19%

SEGMENT–WISE PERFORMANCE

The business of your Company is structured into three segments i.e., (i) Metal (ii) Metallic Oxides and (iii) Plastic

Additives. The segment-wise performance is as follows:

(Rs. in crores)

Segment wise Performance – Turnover

Particulars	2024- 25	2023- 24	2022- 23	2021- 22	2020- 21
Metal	1087.55	763.86	602.08	291.01	185.07
Metallic Oxides	421.75	374.22	354.50	181.74	105.30
Plastic Additives	85.82	79.82	72.24	58.78	53.90

(Rs. in crores)

Segment wise Performance Profit before interest & tax

Particulars	2024- 25	2023- 24	2022- 23	2021- 22	2020- 21
Metal	49.81	26.64	15.02	9.60	5.63
Metallic Oxides	16.50	13.63	15.60	3.78	2.77
Plastic Additives	5.92	5.67	4.16	2.96	3.10

The turnover in Metal segment has increased sharply from Rs. 763.86 Crores in the previous year to Rs. 1,087.55 Crores in the current year. The segment has contributed for about 68% of the total turnover of the Company.

The metal segment has generated a profit of 4.58% on its turnover for the year. The turnover in metallic oxides segment has increased from Rs. 374.22 Crores in the previous year to Rs. 421.75 Crores in the current year and has generated a profit of 3.91% on its turnover for the year. The plastic additives segment continues to be the most profitablesegment for the company by contributing 6.90% share of profit on its turnover.

RISKS AND CONCERNS

At POEL, risk is an inherent factor in all aspects of business. We proactively measure, assess, and manage risks, regardless of their type or origin, through a consistent approach that combines deep business insight, competitive awareness, and adaptability.

Risk management is embedded at the core of our strategic and operational decision-making. It is not treated as a parallel function, but as an essential component of how we plan, operate, and grow sustainably. Our Risk Management Framework is designed to identify, evaluate, and respond to both current and emerging risks that could impact our business objectives.

This framework is supported by a culture that promotes risk awareness across all levels of the organisation. We work closely with functional heads to ensure timely identification and mitigation of risks within their respective domains. Regular assessments, employee training, and open communication helps to maintain a high level of preparedness throughout the enterprise.

The Board and Management provide strategic oversight, ensuring alignment with the companys risk appetite. They monitor the effectiveness of our risk systems and ensure that critical risks are addressed with diligence and foresight.

RISK MANAGEMENT FRAMEWORK

At POEL, we have an established robust risk management process to streamline risk identification, prioritisation of risks. This framework ensures the effective execution of our action plan, enabling timely mitigation measures and to make informed responses to emerging threats.

(1) Risk Identification - Systematic identification of internal and external risks across strategic, operational, financial and compliance domains of the organisation.

(2) Risk Assessment - Analysing and assessing the identified risks inorder to determine the potential triggers and impacts.

(3) Risk Mitigation - Deployment of tailored mitigation strategies, including process controls, technology adoption, insurance and business continuity planning.

(4) Risk Monitoring & Reviewing - Monitoring mitigation actions on an ongoing basis, with periodic reviews by the Management.

PRINCIPLE RISKS

Commodity Fluctuations: Raw material availability and commodity price fluctuations remains an area of challenge for the Company. In the non-ferrous metals industry, raw material prices are closely tied to global commodity market trends. Volatility in lead, zinc, and other metals can significantly influence revenue, costs, and profit margins.

To mitigate these risks, the Company implements a comprehensive risk management approach that includes hedging on the London Metal Exchange (LME), back-to-back hedging and dynamic pricing mechanisms. Additionally, long-term sourcing arrangements help manage supply stability amid market volatility.

Currency Fluctuations: Your Company operates both in the domestic and international market. Having our global presence with import and export operations, we are subjected to currency rate fluctuations which may result in gains or losses. To safeguard profitability from adverse currency movements, the Company adopts a range of hedging strategies, including natural hedging through exports and the use of forward contracts to cover net exposures. The Company also undertakesassessment, and proactive measures such as inventory planning, monitoring market forecasts, and tracking product movement to manage risks effectively. Given the potential impact of foreign exchange fluctuations on imports, exports, and the overall cost of capital, the Company closely monitors these movements to take timely mitigation and responsive measures.

Commodity Inflation: In the metal manufacturing industry, sharp increases in raw material prices can significantly raise production costs, affecting profit margins and product affordability. Such inflation may also dampen consumer sentiment and demand. To address this, the Company implements strategic sourcing, long-term supplier agreements, and efficient inventory planning. Commodity hedging through exchanges like LME helps manage price volatility. These measures enable the Company to maintain cost competitiveness and ensure business stability.

Increase in Competition: While competition is an inherent aspect of the industry, it can become a risk when it leads to irrational market behaviour, such as aggressive pricing and unsustainable trade practices. The growing presence of unorganized players further intensifies this challenge, potentially impacting margins and hindering sustainable growth. Intensifying competition in segments like lead metal, zinc metal, and PVC Additives, also poses a risk to market share. In response, the Company focuses on value-added products, operational efficiency, and cost optimization to maintain its competitive edge.

Procurement/Supply Chain Risk: Disruptions in sourcing scrapmaterialsorlogisticsdelayscanadverselyaffectplant operations. To mitigate these risks, the Company employs strategic diversification of suppliers and maintains strong vendor engagement. Additionally, localized procurement practices are implemented to enhance supply chain resilience. These measures collectively ensure operational stability and continuity.

Regulatory/Compliance Risk: The Company operates in highly regulated sectors such as Metal manufacturing and PVC additives production, where frequent changes in import/export regulations, taxation, environmental/

EPR norms, and other legal requirements can increase the compliance burden and disrupt operations. The Company mitigates these risks through robust legal and regulatory oversight, supported by external consultants and internal compliance teams. Regular updates from plant heads and functional teams ensure timely adherence to evolving norms. Proactive compliance mechanisms are in place to monitor and enforce legal standards across business operations, enabling the Company to stay agile and compliant in a dynamic regulatory environment.

Geopolitical and Trade-Related Risks: Global supply chains face ongoing vulnerabilities due to geopolitical tensions, trade restrictions, and changing international policies, which can disrupt raw material availability, increase costs, and affect export markets. The Company mitigates these risks through a diversified procurement base, regional supply redundancies, and localized storage and manufacturing.

Technology Obsolescence: In todays rapidly evolving manufacturing landscape, staying technologically relevant is essential for maintaining competitiveness and operational excellence. Technology obsolescence can adversely affect productivity, process efficiency, and cost structures. The Company recognises this risk and remains committed to continuous innovation in both product development and manufacturing processes. By adopting advanced technologies and upgrading systems regularly, the Company enhances operational efficiency, ensures quality consistency and sustained market relevance.

Cyber Security & IT Risk: Cyber threats pose a risk of operational disruption and data loss. The Company mitigates this through robust IT security protocols, including firewall upgrades, regular audits, and advanced encryption frameworks.

Pandemic: Deterioration in supply chain and demand due to any pandemic can act as a significant business risk. Strong supply chain system with robust digitisation and interlinking of various divisions are some of the mitigating steps taken by the Company to tackle a similar situation in future.

While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for its mitigation.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. Adequate systems exist to safeguard Companys assets through insurance on reinstatement basis and maintenance of proper records. The internal control is designed to ensure that the financial and other records are reliable for preparing the financial statements and other data, and for maintaining accountability of persons. The Companys internal controls commensurate with the size and the nature of its operations. These have been designed to provide a reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. Investment decisions involving capital expenditure are taken up only after due appraisal and review. Adequate policies have been laid down for approval and control of expenditure.

The Company has established a robust Internal Financial Controls (IFC) framework that aligns with its operational size, scale, and complexity. The Board of Directors holds the responsibility for ensuring that the IFC is effectively implemented and maintained. Furthermore, this internal control framework complies with the requirements as set forth in the Companies Act, 2013.

The CEO and CFO Compliance Certificate provided in this Annual Report discusses the adequacy of our internal control systems and procedures. Further, M/s. Darpan

& Associates, the Statutory Auditors of the Company have reported that the Company has adequate internal financial control system over financial reporting and such internal financial control systems over financial reporting were operating effectively. Additionally, the Company has an Internal Auditing system in place handled by a reputed Chartered Accountancy firm. Based on the observations of the Internal Auditor, the process owners undertake the corrective actions and improvements in their respective areas. Significant audit observations and corrective actions thereupon are presented to the Audit Committee. The Audit Committee considers suggestions for improvement. The Audit Committee, to ensure effectiveness of the internal control system, reviews the audit observations and corrective action taken thereon. The Partners of both, Statutory

Auditor and Internal Auditor attend the Audit Committee meetings, as and when invited and considered necessary by the Audit Committee.

Based on the evaluation as defined in Section 177 of the Companies Act, 2013 and Regulation 18 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee noted that, as of March 31, 2025, the

Companys internal financial controls were adequate and operating effectively and no material weakness existed during the Financial Year 2024-25.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS

At POEL, we believe that our people are the foundation of our success and long-term growth. More than just contributors to daily operations, our employees are the driving force behind our innovation, resilience, and continued progress. POEL is committed to fostering a culture that empowers individuals through trust, transparency, and purpose-driven engagement. POEL takes pride in maintaining a strong employer-employee relationship.

POEL adopts a structured approach to recruitment, employee engagement, learning and development, and performance recognition to continuously strengthen workforce capabilities. The Company offers a dynamic work environment supported by competitive compensation, clear career progression, and targeted learning opportunities. The reward and recognition programs are designed to celebrate performance, foster a sense of belonging and encourage long-term commitment.

To maintain a competitive edge, the Company organizes structured training programs designed to train employees at various levels. Technical and safety training programs are conducted to enhance workers knowledge and application skills, ensuring that our workforce are well-prepared to meet the evolving demands of the business and the industry at large.

Beyond routine responsibilities, we actively encourage employees to explore their potential by undertaking voluntary, cross-functional initiatives that promote problem-solving, creativity and collaboration. This helps in building a culture of ownership and innovation across the organization.

The Company has a strength of 615 employees as on March

31, 2025 (436 employees as on March 31, 2024), reflecting a broad and capable team that underpins our sustainable and scalable operations. Industrial relations remained cordial and harmonious throughout the year, driven by open communication and a strong focus on employee welfare, underscoring the Companys commitment to a collaborative and progressive work environment.

CAUTIONARY STATEMENT

Statements made herein describing the Companys expectations or predictions are “forward-looking statements”. Forward looking statements are based on certain assumptions and expectations of future events.

The actual results may differ materially from those expected or predicted depending on market conditions, input costs, economic development, Government policies and other incidental factors.

For POCL Enterprises Limited

Devakar Bansal

Managing Director DIN: 00232565

Sunil Kumar Bansal

Managing Director DIN: 00232617 Place : Chennai Date : August 11, 2025