Poojawestern Metaliks Ltd Management Discussions

Annexure- D

The following section outlines the Companys performance and provides an overview of its future business prospects. This outlook is based on an evaluation of the current economic environment and prevailing government policies. It is important to note that changes in future economic conditions or other external factors may impact this outlook.

The Managements perspective on the Companys performance and future direction is detailed below:

ECONOMIC OVERVIEW Global Economy

Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment. Growth is expected to weaken to 2.3 percent in 2025, with deceleration in most economies relative to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions. In 2026-27, a tepid recovery is expected, leaving global output materially below January projections. Progress by emerging market and developing economies (EMDEs) in closing per capita income gaps with advanced economies and reducing extreme poverty is anticipated to remain insufficient. The outlook largely hinges on the evolution of trade policy globally. Inflation expectations, particularly at the shorter horizon, have picked up in 2025, mainly in some major economies. This is likely due to the expected impact of tariff increases on consumer prices, even as trade tensions weigh on economic activity and commodity prices.

Indian Economy Outlook

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

On the positive side, participating economists expect consumer spending to gain momentum, driven by an improved outlook for the agriculture sector, which is likely to bolster rural consumption and sentiment in the first half of the next fiscal year. Food inflation - which has remained elevated for over a year and strained household budgets, particularly for low- and middle-income urban families · is expected to ease. As inflationary pressures recede, participating economists expect urban consumption, especially for lowticket and discretionary items, to witness a recovery.

On investment front, the governments focus on capital expenditure is expected to remain a key growth driver in the year 2025-26. Investments in infrastructure and allied sectors·such as roads, housing, logistics, and railways·are anticipated to further economic momentum.

Additionally, the services sector, particularly hospitality, real estate, health, and education, is expected to contribute to creation of fresh capacity. Nonetheless, downside risks remain on the horizon. Participating economists expect the private capital expenditure cycle to stay subdued, with a cautious outlook limiting large-scale capacity additions. Factors such as geopolitical uncertainties, uneven domestic demand, oversupply from China have kept investors on the edge.

However, with deleveraged corporate balance sheets, capacity utilization rates holding up, and uptick in demand - the momentum in private investments could build. Merchandise exports are projected to face persistent challenges, constrained by weak global demand, potential tariff wars, and ongoing geopolitical tensions. While services exports are expected to perform better than merchandise exports, uncertainties stemming from US trade policies and financial market volatility could pose additional risks.

Indias economy continues to demonstrate resilience and robust growth, even amid global uncertainties and trade tensions. Strong macroeconomic fundamentals, rising domestic demand, structural reforms, and a focus on infrastructure and digitalization position India as a key engine of global growth. As global institutions like the IMF acknowledge Indias economic stability, the countrys expanding role on the world stage underscores its potential to shape future economic dynamics and contribute meaningfully to global development.

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL BRASS INDUSTRY AND DEVELOPMENTS

The brass market, worth approximately USD 22.5 billion in 2024, is forecasted to increase to USD 23.36 billion in 2025 and surpass USD 31.56 billion by 2033, expanding at a CAGR of 3.8% throughout the period 2025-2033.

Brass is witnessing significant growth in this market due to increasing demand in the industrial sectors of construction, automotive, and electrical. Brass is an alloy widely containing copper and zinc that offers good mechanical properties with corrosion resistance. It is used in several applications due to its properties of having high conductivity along with being antimicrobial in the manufacturing process. With an ever- unabated pace of urbanization and infrastructure development around the globe, the demand for brass-based products and components continues unabated.

Moreover, the brass market benefits from an increased focus on sustainable and recyclable materials. Its high recyclability factor makes brass an eco-friendly option for the manufacturer and the end user, all of which resonate with the new global intent for sustainability and circular economy functions.

Improvements in the manufacturing technologies are rapidly increasing the rate of change in the brass industry. Automating and smart manufacturing methods, based on the principles of Industry 4.0, are transforming the brass industries. As a result, there are precision techniques coupled with CNC machining that go a long way toward making brass pieces with tighter tolerances and superior surface finishes, where modern applications are there for high demanding requirement.

The principal growth drivers for the brass market include the global boom in infrastructure development and rapid urbanization. The versatility of the material in construction applications and industrial machinery supports expanding market demand. Furthermore, the growing automotive and electronics sector contributes significantly to market expansion.

The recyclability and durability of the brass products resonate well with international sustainability endeavors, leading to market growth. The recyclable characteristic of brass without losing any valuable properties increases its appeal to all ecofriendly industries and consumers.

In conclusion, the brass market is still changing due to the influence of technological advancement, the issue of sustainability, and more applications in industries. Though it faces issues related to raw material cost and environmental regulations, this market is really strong in growth and thus facilitated by infrastructure development and industrial automation. With the resurgence of most world economies and the widespread principle of sustainability, the brass market shall continue on its upward trajectory, as innovation and environmentalism set its course.

INDIAN BRASS INDUSTRY AND DEVELOPMENTS

The brass market in India plays a significant role in the countrys industrial landscape, driven by its versatility and utility in various sectors. Brass, an alloy of copper and zinc, is widely used in manufacturing due to its corrosion resistance, malleability, and aesthetic appeal. Key applications of brass include plumbing fixtures, electrical components, decorative items, and precision engineering. India is not only a major consumer of brass products but also a growing exporter, supported by a robust manufacturing base and skilled labor. The market is influenced by factors such as industrial growth, urbanization, and demand from end-user industries.

The Indian Brass Market size is expected to grow at a significant CAGR of 4.3% during the forecast period 20252031. One of the key drivers of the brass market in India is the rapid pace of industrialization and urbanization. These factors have significantly increased the demand for brass in sectors such as construction, automotive, and electrical applications. Additionally, the rising investments in infrastructure projects and the growth of Indias manufacturing sector have further propelled the use of brass products. The countrys skilled workforce and cost-effective production capabilities also enhance Indias competitiveness in the global market. Furthermore, the push towards ecofriendly and recyclable materials has positioned brass, known for its recyclability, as an attractive choice in sustainable manufacturing, leading to the India Brass Market growth.

Despite its potential, the brass market in India is not without challenges. Fluctuating raw material prices, particularly for copper and zinc, which are key components of brass, pose significant cost pressures on manufacturers. Import dependencies can further exacerbate these price fluctuations. Additionally, competition from alternative materials such as aluminum and composites is intensifying, leading manufacturers to continually innovate and find ways to remain cost-competitive.

The India brass market is witnessing steady growth, driven by the increasing demand in key sectors such as construction, electrical, and plumbing. The rise of urbanization and infrastructure development has significantly contributed to the expansion of this market. Additionally, the growing demand for eco-friendly and recyclable materials has further enhanced the appeal of brass, which is known for its durability and sustainability. However, the market is also impacted by fluctuating raw material prices, which can influence production costs and profit margins. Technological advancements and the adoption of automated processes are shaping the future of the industry, ensuring more precise and efficient production methods.

Investment opportunities in the India brass market are abundant, particularly in the manufacturing and export sectors. With India being one of the largest producers of brass components, there is a strong demand for modernized production facilities and advanced machinery to meet international standards. Exploring value-added segments such as brass fittings, sanitary components, and customized hardware offers lucrative possibilities for manufacturers and investors alike. Furthermore, government initiatives focused on "Make in India" and the push for local manufacturing create an encouraging environment for both domestic and foreign investments. Companies that prioritize sustainability, innovation, and cost efficiency are well-positioned to capitalize on the growing opportunities in this evolving market.

The Indian brass industry stands as a key contributor to the countrys manufacturing and export landscape, driven by strong domestic demand, a skilled workforce, and a robust recycling ecosystem. With hubs like Jamnagar leading global production, India continues to supply a significant share of brass components to international markets. Ongoing developments in precision engineering, sustainable production practices, and compliance with global quality standards are enhancing Indias competitiveness. As the world shifts toward eco-friendly and efficient materials, Indias brass industry is well-positioned to expand its global footprint and support the broader goals of industrial growth and sustainability.

GOVERNMENT INITIATIVES

The Indian government has introduced several initiatives in 2025 aimed at strengthening the brass industry, with a special focus on traditional artisans. The PM Vishwakarma Scheme provides brass artisans with collateral-free loans up to ^3 lakh at a 5% interest rate, toolkits via e-vouchers worth ^15,000, and skill development training with a daily stipend, along with marketing support to enhance their reach. The Small Industries Development Bank of India (SIDBI) has launched programs to support Assams brass and bell metal artisans by organizing skill-building workshops, financial literacy sessions, and plans to establish a dedicated sub-branch in Hajo to facilitate easier access to resources. Additionally, the governments National Non-Ferrous Metal Scrap Recycling Framework promotes sustainable practices in recycling brass and other non-ferrous metals through a digital platform that coordinates stakeholders and helps formulate standards.

To bolster exports amid rising international tariffs, India is also exploring export support measures such as interest subsidies on loans, marketing incentives, and insurance support for exporters. Together, these initiatives aim to boost the competitiveness, sustainability, and market reach of Indias brass industry both domestically and internationally.

The flagship government Yojana supporting artisans· including brass craftsmen·throughout India is the Pradhan Mantri Vishwakarma Kaushal Samman Yojana, launched on September 17, 2023. It offers a comprehensive package of recognition, skill-building, financial aid, and market support. The scheme has dedicated ^13,000 crore over 2023·28, registered over 2.1 million applicants in its first year, and actively expanded via registration camps.

For brass artisans specifically, this yojana provides much- needed access to financing, modern tools, and market support·helping preserve traditional craftsmanship while empowering artisans to scale and enter formal markets. The structured support ecosystem·from recognition to digital payments·ensures not just survival, but growth and sustainability of Indias rich brass craft heritage.

OUR BUSINESS

Founded in 1991 in Jamnagar, India, Pooja Western Metaliks Ltd. has established itself as a leading manufacturer and exporter of Brass Plumbing Fittings, Brass Ingots, Brass Pipe Inserts, and Brass Sanitary Fittings. Over the years, we have built a strong reputation for delivering premium quality products backed by advanced technology and a dedicated team of experts.

With a clear focus on innovation, quality, and affordability, we specialize in manufacturing reliable sanitary and plumbing solutions that meet global standards. Guided by our core philosophy · “The Customer is the Crown of Our Business” · we have successfully expanded our footprint from India to the Gulf, Middle East, Europe, and America.

Our state-of-the-art foundry has the capacity to produce large volumes of brass solids and hollow bars every day. Following the concept of “everything under one roof”, we have developed in-house facilities for forging, machining, and finishing, ensuring end-to-end quality control.

In addition, our robust vendor management systems and efficient supply chain operations have enabled us to build lasting partnerships with suppliers and customers across the globe.

OUR BRAND PORTFOLIO

At Pooja Western Metaliks Ltd., we take pride in offering a wide range of precision-engineered brass products under distinct brand names, each representing quality, innovation, and trust.

Sr. No.	Name Products
1. P-Alloys	Specialized in high-grade raw materials for diverse industrial needs:
	^ Brass Ingots
	^ Brass Billets
	^ Brass Bars
	^ Hex/ Round / Square Rods
	^ Section Hollow
2. Plumbing & Pipe Solutions	Crafted to ensure strength, durability, and seamless installation:
	^ Brass & Chrome Pipe Fittings
	^ Pipe Clamps
	^ Regular CP & Brass Fittings
3.Precision Moulding Inserts	Delivering accuracy and reliability for moulding applications:
	^ Brass Moulding Inserts
	^ Adaptors & Fittings
4.Fluid & Gas Handling Fittings	Designed for safety, precision, and performance:
	^ Brass Compression Fittings
	^ Brass Pex Fittings
	^ Brass Hose Fittings
	^ Brass Gas Fittings
5. Advanced Machined Components	Produced using CNC & VMC technology for customized solutions:
	^ Turned & Variable Parts
	^ Specialized Brass Alloys

Alloys

We sell Brass Ingots, Brass Billets, Brass Bars, Hex/ Round/ Square Hod & Section Hollow under the brand name of P-Alloys. Our Product Range for Trading

We are engaged in trading of brass honey and brass scrap. We generally procure containers of those from international as well as domestic market and sell it domestically.

Our Product Range for Unit II

We manufacture Brass & Chrome sanitary fittings, Brass insert and adapter for CPVC pipes & PPR pipe fittings, CNC, SPM and VMC turned.

OUTLOOK

As we move forward in 2025, Poojawestern Metaliks Limited is well-positioned to capitalize on both the growing demand for high-quality brass and copper products and the favorable policy environment fostered by government initiatives. The increasing adoption of brass and copper in diverse sectors such as automotive, electrical, construction, and consumer goods continues to drive strong market potential.

Our company aims to leverage advancements in manufacturing technology and sustainable practices to enhance product quality, reduce waste, and optimize operational efficiency. With growing emphasis on environmentally responsible production, we are actively integrating recycling and waste management processes aligned with the National Non-Ferrous Metal Scrap Recycling Framework to contribute to circular economy goals.

The government s financial support schemes, including collateral-free loans and skill development programs under initiatives like the PM Vishwakarma Scheme, offer us opportunities to expand our workforce s capabilities and invest in modern tools and machinery. Additionally, marketing assistance and digital platform access provide avenues to broaden our domestic and international reach.

We anticipate robust growth driven by strategic partnerships, continuous product innovation, and enhanced supply chain management. Export opportunities are set to improve with emerging export support measures, enabling us to compete effectively in global markets despite challenges such as international tariff fluctuations.

Our focus on quality, sustainability, and innovation will not only ensure compliance with evolving industry standards but also solidify our position as a trusted leader in brass and copper manufacturing. By embracing government schemes, investing in talent, and pursuing market expansion, Poojawestern Metaliks Limited is committed to delivering superior value to our customers and stakeholders in the years ahead.

OPPORTUNITIES AND THREATS

India is one of the leading countries in the manufacturing and export of brass products. Gujarat, especially Jamnagar, is the main production and supply center, where our companys head office and manufacturing unit are located.

Jamnagar is widely recognized as the city of high-quality custom brass parts and accessories. It imports around 95% of its scrap material from Europe, America, and other countries. The city is home to more than 2,000 brass manufacturing units ranging from small workshops to large factories, producing customized brass parts in various sizes, dimensions, materials, and standards. All brass parts adhere to international standards such as Swiss, DIN, JIS, BS, and other customer-specific requirements.

The brass industry is expected to grow in the coming years, driven by the increasing demand for brass in a variety of applications. Some of the key opportunities for the brass industry, which are advantageous to the company, are as follows:

• Growing Demand Across Sectors: Increasing use of brass components in automotive, electrical, plumbing, construction, and consumer goods sectors is driving steady market growth.

• Rising Focus on Sustainability: Growing environmental awareness is boosting demand for recycled brass products, leveraging Jamnagars access to high-quality imported scrap material.

• Government Support: Various government schemes provide financial assistance, skill development, toolkits, and export incentives, helping businesses scale and modernize.

• Export Potential: Expanding global markets and improved export facilitation open new avenues for international sales, especially with adherence to stringent global quality standards.

• Infrastructure and Smart City Projects: Large- scale infrastructure development and smart city initiatives increase the demand for durable, corrosion- resistant brass fittings and components.

• Technological Advancements: Adoption of advanced manufacturing technologies allows improved precision, efficiency, and product innovation, giving a competitive edge.

• Customization and Quality Compliance: Ability to offer highly customized brass parts conforming to international standards like Swiss, DIN, JIS, and BS meets diverse client needs and enhances customer trust.

THREATS

However, the brass industry is also facing many challenges, some of the key challenges which acts as threats to the Company are as follows:

• Volatility in Raw Material Prices: Frequent fluctuations in global copper and zinc prices directly impact the cost of brass production, affecting profit margins and pricing strategies.

• Dependence on Scrap Imports: With Jamnagar importing around 95% of its scrap from Europe, America, and other countries, any disruption in global trade, shipping costs, or regulatory changes can affect raw material availability.

• Compliance and Certification Requirements:

Meeting strict international quality and environmental standards requires continuous investment in testing, certification, and quality control infrastructure.

• Lack of Skilled Labor: While government schemes aim to address skill gaps, there remains a shortage of highly trained workers capable of operating advanced machinery and maintaining precision manufacturing.

• Environmental Regulations: Increasing focus on eco-friendly manufacturing and recycling requires companies to invest in cleaner, more sustainable production processes, which can raise operational costs.

• Technological Lag Among Smaller Units: Many small-scale manufacturers still operate with outdated technology, limiting productivity, consistency, and global competitiveness.

• Global Competition: Rising competition from countries like China, Vietnam, and Turkey·offering lower-cost alternatives·poses a challenge to Indian manufacturers in maintaining global market share.

• Logistics and Infrastructure Bottlenecks:

Transportation costs and limited infrastructure in certain regions can delay shipments and increase delivery times, affecting reliability and customer satisfaction.

The company has implemented several strategies to manage and mitigate the risks it encounters, such as broadening its customer base, transferring price fluctuations to clients, and investing significantly in research and development. These efforts have strengthened the companys ability to minimize risk exposure and enhance overall resilience.

By serving a diverse range of industries, the company reduces its vulnerability to sudden demand drops from any single customer or sector. Additionally, the practice of passing price changes onto customers helps safeguard profit margins. Continuous investment in research and development enables the company to innovate new products and technologies, maintaining a competitive edge in the market.

Looking ahead, the company remains dedicated to adopting new initiatives aimed at addressing risks and challenges while ensuring sustained success. These future efforts will focus on further expanding the customer base, advancing product and technology development, and boosting operational efficiency.

RISK AND CONCERNS

The brass industry faces significant risks, starting with the volatility of raw material prices like copper and zinc, which can impact production costs and profitability. Many manufacturers, especially in Jamnagar, rely heavily on imported scrap metal from Europe and America, making them vulnerable to supply chain disruptions caused by geopolitical tensions, trade restrictions, or rising shipping costs.

Environmental regulations are becoming stricter, requiring ongoing investment in sustainable production practices and pollution control. Many smaller units also struggle with outdated technology, which limits efficiency and quality, putting them at a disadvantage compared to more modern competitors.

Skilled labor shortages remain a challenge, affecting both production capacity and product quality. Intense competition from domestic and international players, especially low-cost countries, pressures companies to continuously improve and differentiate their offerings to maintain market share.

Market risks include dependence on a limited customer base and fluctuations in key sectors such as automotive and construction. Additionally, export businesses face currency risks that can affect profitability. Maintaining compliance with international quality standards adds complexity, especially for customized products.

To succeed, companies must focus on diversification, technological upgrades, workforce development, and innovation. Managing these risks effectively is essential for long-term growth and competitiveness in the evolving brass industry.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company maintains a comprehensive internal financial control system tailored to its size and operations. This system ensures timely and accurate financial reporting, safeguards company assets, and ensures compliance with relevant laws and regulations. Regular reviews by internal auditors assess the effectiveness of these controls, with any recommended improvements promptly implemented. Additionally, the companys audit committee thoroughly reviews the internal audit reports to oversee and strengthen the control framework.

Financial Performance and Review of Operations

The key strategy will be focused around:

1. Technological Innovation and Modernization - Adopting advanced machinery, automation, and smart manufacturing processes to enhance productivity and precision.

2. Customer Base Diversification - Expanding into new geographies and industries, ensuring a well-balanced and resilient customer portfolio.

3. Strict Quality Control and Compliance - Maintaining world-class quality standards through stringent testing and international certifications.

4. Investment in Research and Development - Driving product innovation, new alloy development, and tailored solutions for emerging industry needs.

5. Leveraging Government Support and Incentives - Capitalizing on policy initiatives and export promotion schemes to boost competitiveness.

6. Expansion of Export Markets - Strengthening our presence across Europe, America, Middle East, and Asia-Pacific, with a sharper focus on high-growth regions.

7. Sustainable and Environmentally Friendly Practices - Prioritizing recycling, energy efficiency, and green production processes in line with global ESG standards.

8. Operational Efficiency and Cost Optimization - Streamlining supply chain, vendor management, and in-house processes to maximize value creation.

The Financial Performance of the Company as on March 31, 2025 stands at:

(Amount in lakhs)

Particulars	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Revenue from operations	5036.57	6129.12	5036.58	6129.21
Other income	108.35	78.22	108.35	78.18
Total Income	5144.94	6207.34	5144.94	6207.39
Less: Total Expenses before Depreciation, Finance Cost and Tax	4678.90	5715.57	4678.90	5715.57
Operating Profits before Depreciation, Finance Cost and Tax	466.04	491.77	466.04	491.82
Less: Finance cost	150.85	143.25	150.85	143.25
Less: Depreciation	102.38	109.57	102.38	109.57
Profit / (Loss) Before Tax	212.81	238.95	212.81	239.00
Less: Current Tax	70.42	72.05	70.42	72.50
Less: MAT Credit	-	-	-	-
Less: Deferred Tax	(13.04)	(8.05)	(13.04)	(8.05)
Profit/ (Loss) after tax (PAT)	155.43	174.50	155.43	174.55
Earnings per Equity Share	1.53	1.72	1.53	1.72

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The company made key advancements in human resource development through focused training programs and skill enhancement initiatives. HR policies were refined to improve employee engagement and operational efficiency. Industrial relations remained stable and harmonious throughout the year, with no disruptions. The company continues to foster a positive work environment built on communication, safety, and performance.

As of March 31, 2025, the company had a total of 71 employees on its rolls, including factory workers. The company will continue to create opportunities and ensure that it recruits diverse candidates without compromising on merit.

KEY FINANCIAL RATIOS

Ratio	Figures As At 31.03.2025	Figures As At 31.03.2024	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Current ratio	1.24	1.29	-4.56%	-
Debt- Equity Ratio	1.55	1.48	5.08%	The increase is due to the borrowings made by the Company to fulfill working capital requirements.
Debt Service Coverage ratio	1.96	2.30	-14.94%	EBITDA declined due to a drop in revenue, even though finance costs only increased slightly. This reduced the companys ability to cover interest obligations
Return on Equity ratio	0.12	0.14	-15.18%	Net profit fell from ? 17.45 crore to ^ 15.54 crore (10.9%), while average equity increased, diluting returns to shareholders.
Inventory turnover ratio	3.16	4.93	-35.88%	The Reduction is majorly due to reduction in the revenue and low inventory turnover during the current financial year.
Trade Receivable Turnover Ratio	5.45	8.90	-38.79%	The Reduction is majorly due to reduction in the revenue and low debtors turnover as well as longer credit terms.
Trade Payable Turnover Ratio	16.35	35.10	-53.40%	The Reduction is majorly due to reduction in the revenue and extended credit terms / delayed payments.
Net Capital Turnover Ratio	8.71	10.42	-16.41%	The Decrease is majorly due to reduction in Revenue by the Company due to external environment.
Net Profit ratio	0.03	0.03	8.39%	The increase is due to stability in the profit margin and reduction in expenses·particularly the substantial decrease in material consumption and changes in inventory.
Return on Capital Employed	0.27	0.29	-8.64%	EBIT decreased due to lower income and increased capital employed, leading to a reduction in efficiency of capital usage.

CAUTIONARY STATEMENT

This report contains certain statements regarding the Companys objectives, projections, estimates, and expectations that may be considered “forward-looking statements” under applicable laws and regulations. These statements are based on assumptions and expectations of future events, which are subject to inherent risks and uncertainties. The Company does not guarantee the accuracy or realization of these assumptions and expectations. Actual results may differ materially from those expressed or implied due to various internal and external factors beyond the control of management. Accordingly, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of future developments, new information, or subsequent events.

Registered office:		For and on behalf of Board of Directors
Plot No. 1, Phase II, GIDC,		Poojawestern Metaliks Limited
Dared Jamnagar- 361004, Gujarat		CIN: L27320GJ2016PLC094314
	Sd/-	Sd/-
	Anil Devram Panchmatiya	Sunil Devram Panchmatiya
Date: September 02, 2025	Whole time Director	Chairman and Managing Director
Place: Jamnagar	DIN: 02080763	DIN: 02080742