Raghav Productivity Enhancers Ltd Management Discussions

Global Economy

The global economy demonstrated stability throughout 2024, despite encountering a complex interplay of significant challenges and opportunities shaped by economic, geopolitical, and policy-related influences. According to the International Monetary Funds (IMF), ‘World Economic Outlook, global Gross Domestic Product (GDP) growth moderated to 3.3%. Growth trends varied, with developed economies experiencing a slower rate of expansion, while emerging markets, particularly those in Asia, sustained relatively stronger growth momentum.

Geopolitical factors, including the ongoing Russia-Ukraine conflict, disruptions in the Red Sea, persistent supply chain issues, and trade tensions between major economic powers, continued to present challenges to global economic stability in 2024. Moreover, the evolving landscape of climate change policies and regulations influenced investment choices across various industries.

Despite these obstacles, the United States economy showed resilience, achieving 2.8% growth driven by a strengthened labor market and moderating inflation. The Eurozone, however, experienced slower growth at 0.9%, including a slight contraction in Germany. Emerging markets, maintained stronger growth momentum, reaching 4.3% overall, fueled by investments in technology and infrastructure. Chinas economy grew by 5.0%, supported by government policies and a recovering property sector. Global inflation is showing improvement, estimated at 5.7% in 2024, down from 6.7% in 2023. Advanced economies are likely to achieve their inflation targets sooner than emerging markets and developing economies, where the decline may be more gradual. Advanced economies should see inflation average 2.6% in 2024, likely reaching target levels by late 2025. Emerging markets will experience a slower but still positive trend. Defying significant expectations for easing, major central banks largely maintained high interest rates throughout 2024 to combat inflation. The Federal Reserves target rate remained elevated for most of the year, with a 25 basis point reduction in December, bringing it to 4.25-4.50%. Similarly, the European Central Bank held rates steady after earlier increases, also implementing a 25 basis point cut to its deposit rate in December, reducing it to 3.00%. The Bank of Englands Bank Rate stayed high for much of 2024. Later in the year, cuts reduced it by

25 basis points to 5.00% in August and by a further 25 basis points to 4.75% in November.

Outlook

The global economy is projected to sustain a consistent growth pattern, with anticipated expansion rates of 2.8% and 3.0% in 2025 and 2026, respectively. This positive outlook is further reinforced by strong economic expansion in the United States and significant growth across major emerging markets.

Growth in the US is expected to fall to 1.8% in 2025 and to 1.7% in 2026, driven by shifts in labor market dynamics and a reduction in consumer spending. The Eurozone is forecast to experience a dip to 0.8% in 2025 and further improving to 1.2% in 2026, supported by increased consumer expenditure and reduced inflation. Overall growth in developed economies is expected to stabilize around 1.4%-1.5% during this period.

Although global disinflation continues, certain regions are experiencing stagnation due to persistently high inflation rates. Global inflation is forecast to decrease to 4.3% in 2025 and 3.6% in 2026, with developed economies expected to achieve their targets before others. Monetary policies are likely to remain varied across different regions.

(Source: World Economic Outlook, IMF (April 22^nd, 2025))

Indian Economy

Indias economy displayed resilience and consistent growth throughout FY 2024-25, continuing its status as one of the worlds fastest-expanding major economies. As indicated by the Second Advanced Estimate (SAE) data released by the National Statistical Office (NSO), real Gross Domestic Product (GDP) is set at 6.5% for FY 2024-25, following a notable 9.2% (per the First Revised Estimates) growth in the previous financial year. This sustained momentum is a reflection of the nations sound economic foundations, supportive government policies, an expanding services sector, and strong domestic demand, all of which contribute to increased confidence in Indias long-term growth potential.

Government reforms, substantial investments in both physical and digital infrastructure, and initiatives like Make in India and the Production-Linked

Incentive (PLI) scheme have played a crucial role in improving the countrys growth path and encouraging self-sufficiency.

The services sector sustained steady growth at 7.2% in FY 2024-25, propelled by strong activity across a range of segments, including finance, real estate, professional services, public administration, defense, and other related areas.

Indias economic standing continues to ascend, now holding the position of the worlds fifth-largest economy by nominal Gross Domestic Product (GDP) and the third-largest by purchasing power parity (PPP). Ambitious national objectives are set to achieve a $5 trillion economy by FY 2027-28 and a $30 trillion economy by 2047. These targets are to be realized through investments in infrastructure, ongoing reforms, and widespread adoption of technology. The capital investment budget for 2025-26 demonstrates this commitment, increasing to 11.21 lakh crore, representing 3.1% of GDP.

Outlook

Indias economy is projected at 6.2% in FY 2025-26. By 2030, India is expected to become the worlds third-largest economy, propelled by infrastructure investment, private capital expenditure, and the expansion of financial services. Continuous reforms are anticipated to underpin this long-term growth.

This optimistic outlook is reinforced by Indias demographic advantages, increased capital investment, proactive government policies, and strong consumer demand. Improved rural consumption, driven by moderating inflation, further strengthens this growth trajectory. The governments emphasis on capital expenditure, fiscal responsibility, and increasing business and consumer confidence supports both investment and consumption.

Initiatives such as Make in India 2.0, Ease of Doing Business reforms, and the Production-Linked Incentive (PLI) scheme are designed to promote infrastructure, manufacturing, and exports, positioning India as a global manufacturing center. With inflation expected to align with targets by 2025, a more accommodating monetary policy is anticipated. Infrastructure development and public policies will drive capital formation, while rural demand will be supported by initiatives such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

(Source: PIB, MoSPI, Economic Survey)

Union Budget 2025-26

The Union Budget 2025-26 presents a balanced and growth-oriented financial strategy, designed to address both immediate and long-term economic imperatives. Through the enhancement of disposable income, the prioritization of infrastructure development, and the promotion of domestic manufacturing, the budget lays the groundwork for sustained economic expansion while upholding fiscal responsibility.

A significant feature of the budget is the increased income tax exemption limit of 12 lakh per annum, substantially boosting disposable income for middle-class households. This adjustment is anticipated to stimulate consumer spending and savings, directly benefiting salaried individuals and contributing to overall economic growth. The focus on infrastructure, a critical engine of development, includes significant investments in roads, railways, and urban infrastructure. These investments aim to improve connectivity, generate employment opportunities, and drive demand in related industries.

The budget also reinforces the Production Linked Incentive (PLI) scheme, concentrating on sectors like electronics and textiles, and aligns with the "Make in India" initiative to position India as a global manufacturing hub. The transformation of India Post into a catalyst for the rural economy will improve logistics and financial inclusion, further integrating rural regions into the wider economy.

The governments commitment to clean mobility and renewable energy is evident through the extension of subsidies under the FAME India Phase II scheme and investments in electric vehicle (EV) charging infrastructure, fostering a more environmentally sustainable economy. With a targeted fiscal deficit of 4.4% of GDP for FY 2025-26, reduced from 4.8%, the government demonstrates its adherence to fiscal prudence, ensuring that growth-focused reforms are implemented in a sustainable manner.

Industry Overview

Global Silica Ramming Mass Overview

Silica ramming mass, a critical refractory material, is extensively used in the lining of induction furnaces due to its excellent thermal stability and corrosion resistance. FY 2024-25 witnessed significant developments in this sector, influenced by global industrial trends and technological advancements.

The silica ramming mass industry is a critical component for the global steel sector, finding extensive application in induction furnaces. This dynamic market demonstrated a size of $185 million in 2024. It is projected for substantial growth, expanding from $172 million in 2023 to $299 million by 2029, reflecting a robust Compound Annual Growth Rate (CAGR) of 9.7%.

Market expansion is primarily fueled by the surging demand from the construction and infrastructure sectors, which directly drives steel production. Further contributing factors include advancements in manufacturing technologies and the overall economic vitality of key regions, particularly emerging economies with significant steel output.

Globally, major markets for silica ramming mass span Asia, Europe, the Middle East, North America, and Africa. Asia stands as the largest market, primarily due to its strong steel production industry. Anticipated increases in steel demand over the coming years, propelled by ongoing urbanization, extensive infrastructure development, and population growth, will directly translate into sustained high demand for silica ramming mass, affirming its crucial role in steel manufacturing.

Manufacturers are increasingly adopting automation and precision engineering in the production of silica ramming mass. For instance, companies like Raghav Productivity Enhancers Ltd. have established fully automated manufacturing facilities, enhancing product quality and customization capabilities. (Source: rammingmass.com)

The industry faces challenges such as fluctuating raw material prices and the need for sustainable production practices. However, the growing emphasis on high-quality refractory materials in emerging economies presents significant opportunities for market expansion.

The silica ramming mass market is poised for sustained growth beyond FY 2024-25, driven by continuous developments in the steel and foundry sectors. Ongoing investments in infrastructure and manufacturing are expected to further enhance demand, solidifying the materials essential role in industrial applications.

Indian Silica Ramming Mass Overview

India is a prominent player in the global silica ramming mass market, with production expected to reach 1,458,000 tons in 2024, as reported by CareEdge. This growth is driven by the countrys rapid economic development, which has led to increased demand for steel across various sectors, including construction, automotive, and infrastructure.

The Indian government is actively promoting infrastructure projects, such as the National Highways Development Project and the Bharatmala Project, which further stimulate the demand for steel. Additionally, Indias abundant quartzite reserves provide a reliable source of raw material for silica ramming mass production.

Indias steel production capacity is significant, with numerous plants located in states like Odisha, Jharkhand, Chhattisgarh, Karnataka, and West Bengal. Major steel companies are expanding their operations to meet the rising demand, demonstrating the industrys adaptability in the face of challenges such as fluctuating raw material prices and energy costs.

As the largest exporter of silica ramming mass, India has established key markets in Saudi Arabia, the UAE, Uganda, Ghana, and Turkey. Export volumes have increased significantly, achieving a CAGR of 14.8% from 45 thousand tons in 2019 to 78 thousand tons in 2023. This trend is expected to continue, with projections indicating an 18.2% growth rate from 2023 to 2029. The value of these exports is also anticipated to rise at a CAGR of 19.6% during the same period.

The ongoing global demand for silica and its applications in the steel industry underpin this growth. As various sectors continue to expand, the need for silica ramming mass will remain strong, reinforcing its importance in Indias economic framework.

Looking ahead, the production of silica ramming mass in India is projected to grow at a CAGR of 10.8%, increasing from 1,354 thousand tons in 2023 to 2,508 thousand tons by 2029. This growth highlights the essential role of silica ramming mass in supporting the steel manufacturing sector.

Indian Induction Furnace Industry Overview

The induction furnace industry in India has experienced notable growth in recent years, driven by increasing demand for steel and alloys, as well as supportive government initiatives aimed at industrial expansion. In FY 2024-25, the industry continued this upward trajectory, reflecting its integral role in the nations metallurgical sector.

Indias steel industry continues its growth trajectory. Crude steel production is projected to increase by 6% YoY in FY 2024-25, reaching 152 million tons (mnt), following a significant 14% growth in the previous fiscal year. This expansion is notably driven by the induction furnace route, which is expected to grow by 8 mnt YoY, boosting its share in total output to 38% from 32% in FY 2023-24. Meanwhile, the BF-BOF sectors share is anticipated to decrease slightly. Domestic steel demand remains strong, estimated to hit 149 mnt in FY 2024-25, marking a 9% YoY increase. The infrastructure and construction sectors are the primary drivers, accounting for 63-65% of this demand, with general engineering, automotive, and railways also contributing significantly.

The industry has seen advancements in induction furnace technologies, focusing on energy efficiency, automation, and environmental compliance. Despite the positive growth trends, the induction furnace industry faces challenges such as fluctuating raw material prices and the need for sustainable production practices. However, the growing emphasis on infrastructure development and the automotive sector presents significant opportunities for further expansion.

Looking ahead, the induction furnace industry in India is poised for continued growth, supported by ongoing industrialization and government initiatives promoting manufacturing excellence. The focus on technological advancements and sustainable practices is expected to further strengthen the industrys position in the global market.

Global Steel Industry Overview

Steel is a crucial material in construction and engineering, with diverse applications across industries such as automotive, consumer goods, infrastructure, and medical equipment. Its widespread use is attributed to its abundant availability, cost-effectiveness, strength, durability, ductility, and recyclability. The World Steel Association notes that over 3,500 grades of steel are produced globally, each tailored for specific applications.

In 2024, global crude steel production experienced a slight decline, totaling 1,882.6 million delte tons (MT), down from 1,897.9 MT in 2023. This decrease reflects ongoing challenges in major steel-producing regions.

China maintained its position as the largest steel producer, contributing 1,005.1 MT, accounting for approximately 53.4% of global output. However, domestic demand weakened due to a downturn in the property market, leading to increased exports and contributing to a global steel surplus.

India solidified its position as the second-largest steel producer, with production reaching 149.6 MT in CY 2024, up from 140.8 MT in CY 2023. This growth of 6.3% was driven by rising domestic demand and strategic investments in steel manufacturing capacity. (Source: WorldSteel.org)

The global steel production capacity reached 2,432 MT in 2023 and 2024, with Asia accounting for 66.6% (1,618.7 MT) of this capacity. The capacity utilization rate remained relatively stable at 77.8%, indicating a balanced supply-demand scenario. (Source: OECD)

Indian Steel Industry Overview

The Indian steel industry, a cornerstone of the nations industrial framework, navigated a complex landscape in FY 2024-25, marked by healthy production, evolving trade dynamics, and strategic policy shifts.

India maintained its position as the worlds second-largest steel producer. Indias steel industry has reached a significant milestone in FY 2024-25, with its annual production capacity hitting 205 MT, a 10% increase from the 186 MT recorded in FY 2023-24. The sectors capacity has nearly doubled since 2015, when it was at 109 MT. This growth has been driven by rapid urbanization, substantial public investment in infrastructure, and proactive capacity expansion by both private and public sector players. (Source: LinkedIn)

The period witnessed significant shifts in trade patterns:

• From April 2024 to January 2025, Indias finished steel imports from South Korea, China, and Japan reached unprecedented levels. South Korea led with 2.4 million metric tons (an 11.7% increase year-on-year), followed by China at 2.3 million metric tons (up 3.4%), and Japan at 1.8 million metric tons (an 88.6% surge). Collectively, these countries accounted for 78% of Indias total finished steel imports during this period.

Conversely, Indian finished steel exports to destinations like Italy, Belgium, Nepal, and Spain declined sharply, reaching a seven-year low. (Source: reuters.com)

Global trade policies influenced domestic steel prices. The United States imposed import tariffs on steel and aluminum, prompting a potential redirection of excess global supply to markets like India. S&P Global projected that such shifts could lead to a price correction of approximately

3,000 ($34.52) per tons in the Indian market. (Source: reuters.com)

Access to essential raw materials presented challenges:

In February 2025, Asias seaborne imports of coking coal ? a vital component in steel production ? dropped to a three-year low of 15.85 million metric tons, down from 20.42 million metric tons in January. Indias imports specifically fell to 4.56 million tons, the lowest since December 2021. This decline was attributed to reduced demand and import restrictions, impacting steel production capabilities. (Source: reuters.com)

ArcelorMittal-Nippon Steel India highlighted that new import restrictions on low-ash metallurgical coke could significantly curtail their steel production and delay expansion plans, underscoring the industrys sensitivity to raw material accessibility. (Source: reuters.com)

In response to these challenges, the Indian government considered imposing safeguard duties ranging from 15% to 25% on steel imports to protect domestic producers from the surge of foreign steel. Such measures aim to stabilize the domestic market and encourage local production. (Source: reuters.com)

The Indian steel industry stands at a pivotal juncture, balancing opportunities for growth with challenges arising from global trade dynamics and raw material constraints. Strategic policy interventions and adaptive business strategies will be crucial in navigating this evolving landscape in the coming fiscal years.

Acuite Ratings & Research projects a positive medium-to-long term outlook for the Indian steel industry, anticipating a 20 million tons (mnt) increase in annual capacity between FY 2024-25 and FY 2026-27. This expansion is underpinned by a projected 8% growth in Indias steel demand in the medium term, driven primarily by robust activity in the automotive, real estate, and infrastructure sectors. Despite prevailing margin pressures, the industry is expected to maintain sustained capacity expansion. However, significant challenges persist from a noticeable increase in imports, particularly from Asian nations like Vietnam and China, largely due to Chinas excess capacity and sluggish domestic demand.

Factors Driving growth for Indian Steel and Ramming Mass Industry

The Indian steel and ramming mass industry experienced notable growth during the reporting period, supported by several key drivers. The urban residential real estate market remained resilient, marked by numerous new projects launches and sustained affordability despite rising interest rates. Investments in renewable energy gained momentum, driven by escalating power consumption and the shift towards green energy solutions. The government maintained a strong focus on infrastructure and social development, with the National Highways Authority of India (NHAI) pipeline showing promising prospects for the next three years. Infrastructure Investment Trusts (InvITs) continued to attract significant interest from foreign investors. Furthermore, private capital expenditure received a boost from initiatives such as the National Infrastructure Pipeline (NIP), the Production Linked Incentive (PLI) scheme, and efforts to promote defense indigenization, all of which contributed to the sectors expansion.

The growth of silica ramming mass is closely linked to the increase in steel production, with approximately 30 kg of silica ramming mass required for every ton of steel produced. Government initiatives such as Make in India and Atmanirbhar Bharat are fostering domestic production and reducing reliance on imports, further driving demand. As the largest exporter of silica ramming mass, India benefits from strong demand from countries like Saudi Arabia, Kenya, and Uganda. Additionally, rapid infrastructure development and urbanization indirectly boost steel production, thereby increasing the need for silica ramming mass.

In the broader steel industry, several factors are contributing to growth. Government initiatives, including the Gati-Shakti Master Plan, affordable housing projects, and expansions of metro and railway systems, are significantly increasing steel demand. The rising production of vehicles and engineering goods necessitates high-quality steel and specialty alloys. The National Steel Policy, which aims for a production capacity of 300 million tons per annum (MTPA) by 2030, is also a key driver of industry growth. Furthermore, the shift towards environmentally sustainable production methods is promoting the adoption of energy-efficient technologies, such as induction furnaces. Lastly, Indias expanding role as a global steel exporter helps stabilize domestic production, even amidst fluctuations in local demand.

Key Announcements from the Union Budget 2025-26 Roads

The Ministry of Road Transport and Highways (MoRTH) received a 3.2% increase in the Union Budget 2025-26, with an allocation of approximately 2.87 lakh crore, up from 2.78 lakh crore the previous year. Of this, the National Highways Authority of India (NHAI) was allocated around 1.75 lakh crore for capital expenditure, a 4.2% increase from 1.68 lakh crore in FY 2024-25. Furthermore, the government aims to develop a national highway network spanning 2.1 lakh kilometers by 2026, reflecting its ambitious transport sector targets.

Housing

The allocation for the central governments flagship PM Awas Yojana (PMAY) was increased to 85,000 crore in the Union Budget of FY 2025-26, bringing the total investment in the scheme to 8.96 lakh crore. Furthermore, the central government intends to expand the coverage and scale of PMAY to include shopkeepers, traders, and self-employed individuals.

Infrastructure

With a forward-looking approach, the government launched the National Infrastructure Pipeline (NIP) to provide high-quality infrastructure across the country, projecting an infrastructure investment of around 111 lakh crore during FY 2020-2025. Currently, the NIP comprises 10,500 projects with a total investment exceeding 150 lakh crore at various stages of implementation. The government also plans to operationalize 25 waterways by 2030, alongside the development of 40 Multi-Modal Logistics Parks (MMLPs). Additionally, efforts are underway to expand the number of airports to 230.

Capital Investment

In FY 2025-26, the capital expenditure outlay stood at 11.21 lakh crore, indicating a 0.9% year-on-year increase from 11.11 lakh crore in FY 2024-25. The total capital outlay for infrastructure in FY 2025-26 is 3.1% of the countrys GDP. (Source: Press Information Bureau)

Automotive: Going Full Throttle

Total automobile sales rose from 28.43 million units in FY 2023-24 to 30.50 million units in FY 2024-25. The Passenger Vehicles (PV) and three-wheeler segments saw sound growth during the reporting period. Looking ahead, the Indian automotive industry is expected to sustain its growth and grow by 8-10% over the next 10 years, driven by factors such as decreasing inflation, potential interest rate reductions, improved credit terms, population growth, increasing per capita income, and the increasing adoption of electric vehicles (EVs).

Expanding Real Estate and Infrastructure Landscape

Knight Frank India, in association with NAREDCO, in their report India Real Estate: Vision 2047, predicts Indias real estate sector to reach $5.8 trillion by 2047. The Indian government is facilitating housing infrastructure through the PMAY. Moreover, in the Union Budget 2025-26, the government announced a capital outlay of 11.21 lakh crore, aimed at accelerating infrastructure development, which will help to expand the demand for steel.

Growing Urban Population Creating Opportunity

Building the necessary infrastructure is crucial for creating liveable, climate-resilient, and inclusive cities that drive economic growth. With nearly 70% of the urban infrastructure needed by 2047 yet to be built, significant investments are expected. India will need to invest approximately $840 billion in infrastructure by 2036, averaging $55 billion annually or 1.2% of GDP, which will boost the steel demand.

Rapid Industrialization

The industry sector experienced healthy growth, supported by government initiatives such as the Production-Linked Incentive (PLI) scheme, the Make in India campaign, and the China+1 policy. The cumulative growth rate of the Index of Eight Core Industries (ICI) from April to January in FY 2024-25 stood at 8.0% (provisional). Anticipated expansion, renovation, and construction activities in industries are expected to fuel the steel demand nationwide, consequently increasing the demand for ramming mass.

Company Overview

With more than 15 years of expertise, Raghav Productivity Enhancers Limited (RPEL), formerly known as Raghav Ramming Mass Limited, has emerged as Indias foremost producer of silica ramming mass and one of the few organized manufacturer in this sector. Over the years, the company has solidified its reputation as the largest exporter and the only pan-India supplier of ramming mass, operating in a market that is otherwise fragmented and unorganized. RPEL caters to a wide range of esteemed steel manufacturers and foundries, supplying its products both domestically and internationally.

RPELs primary manufacturing activities, centered in Newai, Rajasthan, involve the production of ramming mass. During FY 2024-25, the company expanded its production capacity from 288,000 MTPA to 414,000 MTPA to accommodate increased demand.

Committed to innovation and excellence, RPEL continuously invests in state-of-the-art technology and best-in-class production processes to ensure operational efficiency and superior product quality. The company holds ISO 9001 certification, reflecting its adherence to the stringent quality management standards outlined in ISO 9001:2008. RPEL has also pioneered product innovation in the Indian ramming mass industry, supported by its government-approved research and development center located at the plant.

This strategic focus on R&D has positioned RPEL as a global leader, boasting one of the worlds most advanced facilities for silica ramming mass production. The company employs fully automated processing and VSI-based crushing technology, enabling it to deliver products of unparalleled quality. These innovations provide exceptional cost-efficiency and productivity enhancements to steel, foundry, and casting plants, setting RPEL apart from locally available alternatives and reinforcing its competitive edge in the market.

Business Highlights 2024-25

• Manufacturing capacity significantly expanded from 288,000 MTPA to 414,000 MTPA, driven by strategic debottlenecking and the addition of a new PLC line to boost operational efficiency.

• RPEL secured a one-of-a-kind patent from the Government of India for its internally developed manufacturing process, marking a landmark achievement and reinforcing its technological edge.

• The Company successfully completed a 1:1 bonus issue, demonstrating strong financial health and directly rewarding shareholder loyalty.

• A major sales milestone was achieved as RPEL crossed 200,000 MT in sales volume, underscoring robust market demand and product acceptance.

• RPEL entered the top 1000 companies by market capitalization in India, affirming its growing influence and prominent standing among the nations leading corporations.

Financial Highlights

Analysis of consolidated profit and loss statement

Particulars	FY 2024-25	FY 2023-24	Variance %
Revenues ( crore)	199.65	132.77	50.37%
EBITDA ( crore)	53.72	40.06	34.10%
EBITDA margin (%)	26.91%	30.17%	(327) bps
Net Profit ( crore)	36.97	25.97	42.36%
Net Profit Margin (%)	18.52%	19.56%	(104 bps)
Net Worth ( crore)	193.70	158.18	22.46%
CapitalEmployed(crore)	200.78	166.92	20.27%
ROCE (%)	26.32%	23.60%	272 bps
Debt Equity Ratio (X)	0.04	0.06	(33.85%)

Revenues

The Company experienced a 50.37% increase in revenue from operations, rising from 132.77 crore in the prior fiscal to 199.65 crore in FY 2024-25. Increase in revenue was driven by a 38% increase in volume and higher realization.

Expenses

In FY 2023-24, the Company saw a rise in total expenses, which rose by 55.83% from 98.35 crore in the previous fiscal year to 153.26 crore. This increase was largely driven by an increase in raw material costs, which represents 28.35% of total revenues down from 29%, thanks to economies of scale. On the other hand, employee expenses, which account for 2.97% of revenues, increased by 21.52% during the same period. Additionally, other expenses increased by ~69.89% as company continued to scale operations and enhance capacity.

Analysis of the Balance Sheet Sources of Funds

The Companys capital employed increased by 20.29%, rising from 166.92 crore as of March 31, 2024, to 200.78 crore as of March 31, 2025. Similarly, RPELs net worth grew by 22.46%, climbing from 158.18 crore to 193.70 crore during the same period.

Application of Funds

Throughout the fiscal year, the Companys gross fixed assets experienced a 11.83% increase, growing from 106.52 crore as of March 31, 2024, to 119.12 crore as of March 31, 2025, primarily due to investments in plant and machinery. As a result, depreciation rose from 4.97 crore in FY 2023-24 to 6.45 crore in FY 2024-25.

Working Capital Management

The Companys current assets surged by41.22%, increasing from 96.19 crore as of March 31, 2024, to 135.84 crore as of March 31, 2025, driven by the expansion of its business operations. Debtors also saw a rise of 28.76%, increasing from 39.74 crore in FY 2023-24 to 51.17 crore in FY 2024-25. Additionally, inventories, which majorly included raw materials, work-in-progress, grew by 25.60%, rising from 27.58 crore as of March 31, 2024, to 34.64 crore as of March 31, 2025.

Risk Management
Key Risk	Description	Mitigation
Market risk	The global economic slowdown and trade disruptions caused by geopolitical tensions may negatively impact the Companys export performance.	In addition to India, RPEL supplies its materials to more than 36+ countries, utilizing its wide geographical reach to reduce market risks. During FY 2024-25, export sales contributed 46.47% of the Companys revenue, providing a degree of protection against fluctuations in the Indian economy.
Raw material sourcing risk	There is a potential risk of facing quality issues during the sourcing of raw materials, which may adversely affect the quality of the Companys products and, in turn, harm its reputation. Although significant efforts are made to maintain high standards, there remains a possibility of receiving inferior or defective raw materials from suppliers. Such instances could result in production delays, higher costs for rework or replacements, and ultimately, customer dissatisfaction. With 46.47% of the Companys revenue coming from exports,	The Company sources its primary raw material, quartz stone, exclusively from licensed mines, guaranteeing a steady supply of high-quality materials. These mines adhere to strict environmental and regulatory requirements, significantly reducing the likelihood of disruptions caused by non-compliance issues. RPEL closely tracks exchange rate movements and
Currency risk	RPEL is exposed to considerable currency fluctuation risks, which may affect its overall profit margins. The risk of products failing to meet quality standards could result in customer dissatisfaction and harm the Companys reputation.	implements a cautious hedging approach to reduce the effects of unfavorable currency fluctuations. To ensure business continuity and maintain a positive brand image, the Company prioritizes delivering high-quality products. This dedication is supported
Quality risk	RPEL may encounter challenges and disruptions due to rapid technological advancements or difficulties in adopting new	by its ISO 9001:2015 certification, which confirms its commitment to rigorous quality control processes and alignment with international quality standards. The Company prioritizes technology, consistently investing in the latest innovations to maintain the
Technological risk	technologies. This risk could stem from outdated technology or an inability to keep pace with evolving industry trends. The manufacturing process of ramming mass may have environmental implications. Non-compliance with regulatory standards could lead to significant penalties and harm the	superior quality of its products, enhance its product range, and support business growth. The Company has embraced sustainable practices to lower its carbon emissions and minimize waste generation. RPEL has also introduced water
Environmental risk	companys reputation.	management initiatives to recycle and reuse water within the production process wherever possible. The facility has been recognized by the National Green Tribunal as a model quartz processing unit.

HR and Industrial Relations

The Company places strong emphasis on treating all employees with dignity and respect. It is committed to the welfare of its personnel, providing them with exceptional working environments that are equipped with cutting-edge technology. RPEL is focused on cultivating a secure workplace that promotes a sense of belonging, ensuring that every employee feels valued and heard. To facilitate the growth of its workforce, the Company offers an array of training and development opportunities. Continuous improvements in health and safety practices are aimed at achieving a zero-harm standard, underpinned by a comprehensive multi-year strategy of guidelines that implement safety measures and meet safety targets within the manufacturing operations. By March 31, 2025, the Companys workforce consisted of 103 employees.

Internal Control Systems and Their Effectiveness

Considering the scale and nature of its operations, the Company has implemented a comprehensive internal control framework. This system comprises stringent procedures, policies, and processes designed to ensure the accuracy of financial reporting, protect assets, enhance resource efficiency, and comply with legal requirements. The Company conducts regular internal audits to monitor its operations, with findings and suggestions reviewed by the Audit Committee, which takes appropriate corrective measures as needed. To ensure the ongoing effectiveness of these internal control systems, the Audit Committee engages in continuous dialogue with both statutory and internal auditors.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be ‘forward-looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes, and other incidental factors.