Rajoo Engineers Ltd Management Discussions

Forward looking statement

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statements are prepared under historical cost convention, on accrual basis of accounting, and in accordance with the provisions of the Companies Act, 2013 (the Act) and comply with the Indian Accounting Standards as pronounced by the Institute of Chartered Accountants of India (ICAI) from time to time. The Management of Rajoo Engineers Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements, reflect in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to “we”, “us”, “our”, “the Company”, “Rajoo Engg” or “Rajoo” are to “Rajoo Engineers Limited”.

Global Plastics Industry Overview-

The global plastics market was valued at USD 712.0 billion in 2023 and is projected to grow from USD 740.48 billion in 2024 to USD 1,013.4 billion by 2032, reflecting a CAGR of 4.0% during the forecast period. This growth is driven by increasing demand across sectors such as packaging, automotive, construction, and healthcare.

The Asia-Pacific region continues to dominate the market, fueled by rapid industrialization, urbanization, and a growing middle-class population. China and India, in particular, are witnessing significant demand due to their expanding manufacturing bases and infrastructure development.

In North America, the United States remains a key player, with demand primarily driven by the flexible packaging sector, automotive industry expansion, and construction activities. Capacity additions and plant expansions by automotive companies are further expected to augment the demand for plastics compounding.

Environmental concerns are prompting manufacturers to develop recyclable and sustainable plastic products. Technological advancements in biodegradable plastics and recycling processes are gaining traction, aligning with global efforts to reduce plastic pollution.

Furthermore, the plastic waste management market is gaining importance, with a valuation of USD 37.3 billion in 2023 and projected to reach USD 50.4 billion by 2032, growing at a CAGR of 3.4% during the forecast period. This underscores the industrys shift towards sustainable practices and the circular economy.

Source: https://www.statista.com/topics/5266/plastics-industry/

PLASTICS MARKET TRENDS

Increasing Demand for Engineering Plastics Due to their properties to favour the market growth of engineering plastics being more robust and durable than regular ones have increased product demand. They provide better thermal and mechanical properties and are lightweight and cost-effective. The rising need for greater polymer solutions for different end-use industries, such as componentry, machinery, and construction, supports the market expansion. The rising demand for metal substitution increasingly leads to broader usage of engineering polymers in various industries. These materials offer more decisive benefits over metal structures in automotive engineering, construction, solar, and water industries.

Rising Demand from the Packaging Industry to Drive the Consumption of Plastics

Plastics demand is advancing in widespread industries, such as food & beverage, pharma, consumer goods, automotive, and electrical & electronics. The increasing need for packaging from the food & beverage industry drives product consumption globally. Food manufacturers prefer packaging that minimizes food quality degradation and avoids contamination. The ability of plastics to act as a hurdle between food products and the external environment is fuelling the demand. Besides, the ability of polymers to defend against physical stress and offer high durability is increasing their usage in sports goods, fashion wear, toy-making, and polymer clay. Moreover, they are easy to mold and offer flexibility to produce packaging in any size and shape. Their utility is surging in the textile industry due to their high durability, elasticity, and enhanced visual appeal. Moreover, polymers are also rigid, making them suitable for packing automotive and electrical spare parts. Thus, the increasing application across food & beverage, pharma electrical & electronics, textile, automobile, and consumer goods industries is augmenting the plastics market growth.

Rising Food & Beverage Industry to Boost Packaging Segment Revenue

The packaging segment will hold the highest plastics market share and grow at the highest CAGR during the industry forecast period. This growth is associated with high product demand from the pharma, food & beverage packaging industry. The increasing use in manufacturing construction products, such as films for windows, floor covering, and pipes and fittings, is boosting product adoption in the infrastructure &

construction industry.

Similarly, the rapidly growing consumer goods/lifestyle and automotive & transportation end-use industries are expected to aid the market in the assessment period. The rising adoption of polymers in the automobile industry to increase vehicle efficiency and the vehicle components life is responsible for the growth in the market. These polymers are easily moldable, flexible, and highly durable, which makes them the most favored material for manufacturing numerous products such as housewares, iceboxes, toys, packaging materials, and containers.

The increasing utilization of polymers in the healthcare sector can be credited to their property of guarding against contaminants by acting as a hurdle. Healthcare products, such as bandage strips, gloves, blood bags, syringes, and prosthetics, are manufactured using several polymers. The electrical & electronics industry produces light fittings, household appliances, and switches due to their insulating properties.

Rise in the Demand for Electric Vehicles to Drive the Plastics Market

The hike in the price of fossil-based fuels such as petroleum and diesel has created a demand for alternative energy sources in the automotive industry. Therefore, automotive manufacturers have come up with electric energy-based vehicles that deliver nearly the same output as traditional vehicles. These EVs are capable of providing great efficiency owing to the utilization of advanced plastic materials and high-power electric motors. The consumption of plastics makes the vehicle lighter, faster, and energy efficient. On the other side, the emerging trend of EVs resolves the greenhouse gas and additional toxic gas emissions in nature. Therefore, the governments of different countries are providing subsidiaries for hybrid electric vehicles (HEVs) and EV holders. These factors lead to an escalating consumption of plastics in the automotive industry.

Asia Pacific is estimated to hold the largest market share, accounting for USD 278.15 billion in 2023. China is anticipated to remain the leading country in the region due to the abundant availability of raw materials at low rates. This is further minimizing the hurdles involved in plastics production. The growth in Asia Pacific is also attributed to the strong growth in the packaging and construction industries. Additionally, rising demand from the consumer goods industry for manufacturing toys, textiles, and sports goods is expected to drive the market in the region.

Regional Insights

Asia Pacific is estimated to hold the largest market share, accounting for USD 278.15 billion in 2023. China is anticipated to remain the leading country in the region due to the abundant availability of raw materials at low rates. This is further minimizing the hurdles involved in plastics production. The growth in Asia Pacific is also attributed to the strong growth in the packaging and construction industries. Additionally, rising demand from the consumer goods industry for manufacturing toys, textiles, and sports goods is expected to drive the market in the region.

In North America, the U.S. held the largest market share, backed by increasing product demand from the electrical & electronics, healthcare & pharmaceuticals, and packaging industries. Concerns over plastics pollution and the development of recyclable technologies have increased the adoption of recycled plastics in the region.

Europe is anticipated to have substantial growth in this market, owing to the rising demand from the automotive sector in the region. Additionally, properties, including excellent heat resistance, corrosion inhibition, electric Insulation, and low density, support the adoption of polymers in Europe.

The key factor influencing the growth in the Middle East & Africa will be the growing demand from the textile and packaging industries. The surging demand for lightweight packaging and the use of polymers over metal and glass are set to boost the regional market. Furthermore, Latin America is projected to grow due to rising urbanization and the growing number of companies specializing in industrial packaging solutions.

Source: https://www.fortunebusinessinsights.com/plasticss-market-102176

India Plastics Industry Overview:

The Indian plastics industry is one of the leading sectors in the countrys economy. The history of the plastics industry in India dates back to 1957 with the production of polystyrene. Since then, the industry has made substantial progress and has grown rapidly. The industry is present across the country and has more than 2,500 exporters. It employs more than 4 million people in the country and constitutes 30,000 processing units; among these, 85-90% belong to small and medium enterprises. India manufactures various products such as and linoleum, houseware products, cordage, fishnets, floor coverings, medical items, packaging items, plastics films, pipes, raw materials, etc. The country majorly exports plastics raw materials, films, sheets, woven sacks, fabrics, and tarpaulin. The Government of India intends to take the plastics industry from a current level of Rs. 3 lakh crore (US$ 37.8 billion) of economic activity to Rs. 10 lakh crore (US$ 126 billion) in 4-5 years.

Trend in Export

In FY25 (until January 2025), Indias plastic exports stood at Rs. 89,296 (US$ 10.34 billion). During this period, the exports of plastic films & sheets, FIBC woven sacks woven fabrics & tarpaulin and Packaging items flexible rigid grew by 19.6%, 17.2%, and 10.1%, respectively, over the same period last year.

The cumulative exports of plastics and related materials during FY23 were valued at US$ 11.96 billion. This was a 10.4% decrease from FY22 exports valued at US$ 13.35 billion. Plastic raw materials were the largest exported category and constituted 27.76% of the total exports in FY23; it recorded a growth of 21.5% over the previous year. Plastic films and sheets were the second largest category, comprising 15.13% of the total exports, but declined by 10.6% over the previous year.

In June 2024, the exports of plastics and linoleum from India were valued at US$ 980.8 million. During the same period, medical items of plastics; FRP & composites; packaging items; cordage fishnets & monofilaments and floorcoverings, leather cloth, & laminates recorded strong growth. The cumulative exports for FY25 (April-January) increased by 9.6% YoY to US$ 10.34 billion.

Trend in plastics export by India

India reported merchandise exports of USD 36.4 billion in January 2025, lower by 2.4% from USD 37.3 billion in January 2024. Cumulative value of merchandise exports during April 2024 January 2025 was USD 358.9 billion as against USD 354 billion during the same period last year, reflecting a modest 1.4% growth.

Government Initiatives

The Plastic Export Promotion Council (PLEXCONCIL) has set a target to increase the plastic exports of the country to US$ 25 billion by 2027. There are multiple plastic parks that are being set up in the country in a phased manner that will help improve the plastic manufacturing outputs of the country. Under the plastic park schemes, the Government of India provides funds of up to 50% of the project costs or a ceiling cost of Rs. 40 crore (US$ 5 million) per project.

Government initiatives like “Digital India”, “Make in India”, and “Skill India” will also boost Indias Plastic industry. For instance, under the “Digital India” program, the government aims to reduce the import dependence on products from other countries, which will lift the local plastic part manufacturers.

The government also launched a program for building Centres of Excellence (CoEs) to develop the existing petrochemical technology and promote the research environment pertaining to the sector in the country. This will aid in promoting and developing new applications of polymers and plastics in the country. Additionally, about 23 Central Institute of Plastics Engineering & Technology (CIPET) have been approved to accelerate financial and technological collaboration for promoting skills in the chemicals and

petrochemicals sector.

Source: https://www.ibef.org/exports/plastic-industry-india

Global Plastics Extrusion Machine Industry Overview-

The global plastic processing machinery market, encompassing extrusion, injection molding, blow molding, and thermoforming equipment, is projected to grow from USD 23.57 billion in 2025 to USD 34.62 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period.

Within this sector, the extruded plastics market is experiencing significant growth, expected to increase from USD 244.95 billion in 2024 to USD 259.31 billion in 2025, at a CAGR of 5.9%. This growth is attributed to factors such as industrialization, manufacturing expansion, and the demand for lightweight materials in automotive and construction industries.

The Asia-Pacific region remains a dominant force in the plastic processing machinery market, accounting for over 43% of the global share in 2024. This dominance is driven by rapid industrialization, urbanization, and increasing demand from sectors like packaging, automotive, and construction. Technological advancements, including the integration of automation and energy-efficient systems, are enhancing the capabilities of plastic extrusion machines. These innovations are enabling manufacturers to meet the evolving requirements of various end-use industries, offering improved performance and sustainability.

Despite the positive outlook, challenges such as high initial capital investment and the need for skilled labor persist. However, ongoing research and development efforts are expected to mitigate these challenges, providing opportunities for market players to innovate and expand their offerings.

Source: https://www.fortunebusinessinsights.com/plastic-processing-machinery-market-107337

https://www.thebusinessresearchcompany.com/report/extruded-plastics-global-market-report

Asia Pacific Plastic Processing Machinery Market Size, 2019 - 2032 (USD Billion)

Growth Factors in the Plastics Extrusion Machine Market Industry:

The escalating demand for plastics products across diverse industries, including packaging, automotive, and consumer goods, serves as a primary growth factor for the plastics processing machinery market. The surge in demand is fueled by the versatility and cost-effectiveness of plastics materials.

Ongoing advancements in plastics processing machinery technology, such as the integration of automation, robotics, and digital control systems, contribute to enhanced efficiency and productivity. Advanced technologies attract industries seeking precision, speed, and improved manufacturing processes.

The globalization of manufacturing processes and the establishment of production facilities in emerging economies contribute significantly to the expansion of the plastics processing machinery market. As industries expand globally, there is an increased need for advanced machinery to meet rising production demands.

Growing awareness of environmental concerns and the push for sustainable practices drive the demand for plastics processing machinery that supports recycling and the use of eco-friendly materials. The market responds to the industrys commitment to reducing environmental impact.

The global trend of rapid urbanization and infrastructure development fuels the demand for plastics products, including pipes, fittings, and construction materials. This, in turn, drives the need for advanced plastics processing machinery to meet the requirements of the construction and infrastructure sectors.

Source: https://www.precedenceresearch.com/plastics-processing-machinery-market

Indian Plastics Processing Industry Overview (2025-2030)

Indias plastics industry is poised for significant growth, with the market size projected to reach USD 49.50 billion in 2025, growing at a CAGR of over 6.5% to attain USD 67.82 billion by 2030. This expansion underscores the sectors potential to become a substantial component of Indias manufacturing economy, paralleling the prominence seen in industrialized nations such as Germany, Italy, the United States, and China.

Mordor Intelligence

The plastic processing machinery segment is integral to this growth trajectory, with the market estimated at USD 33.93 billion in 2025 and expected to reach USD 42.27 billion by 2030, reflecting a CAGR of 4.49%. This growth is driven by increasing demand across industries like packaging, automotive, and consumer goods, which rely heavily on plastic products for their versatility and cost-effectiveness.

Mordor Intelligence

Indias plastics processing sector is characterized by a diverse manufacturing base, encompassing over 20 major machinery manufacturers and approximately 300 small and medium enterprises (SMEs). These entities produce a wide range of machinery, including injection molding, extrusion, and blow molding equipment, catering to both domestic and international markets.

Technological advancements are reshaping the industry landscape. The adoption of all-electric injection molding machines is gaining momentum, particularly in sectors such as medical, packaging, and electronics, due to their energy efficiency and precision. Moreover, the integration of automation, robotics, and digital control systems is enhancing operational efficiency and product quality, aligning with global

Industry 4.0 trends.

The industrys labor-intensive nature provides employment opportunities across various skill levels, contributing to socio-economic development. As the sector continues to evolve, it remains committed to sustainable practices, including the development of machinery that supports recycling and the use of eco-friendly materials, addressing environmental concerns and regulatory requirements.

In summary, Indias plastics processing and machinery industry is on a robust growth path, driven by technological innovation, expanding domestic demand, and increasing global competitiveness. Rajoo Engineers Limited is strategically positioned to capitalize on these trends, leveraging its expertise and commitment to excellence to meet the evolving needs of the market.

Source:https://www.mordorintelligence.com/industry-reports/analysis-of-plastic-industry-in india#:~:text=India%20Plastic%20Market%20Research%20FAQs&text=The%20India%20Plastic%20Indu stry%20size,to%20reach%20USD%2049.50%20billion.

About Rajoo Engineers Limited

We are one of the leading plastics extrusion machinery manufacturers in India, with nearly 39 years of excellence in extrusion in the industry. Based in Rajkot, Rajoo Engineers Limited had made a modest beginning in 1986 and has emerged as an undisputed global player in blown film, sheet extrusion lines, Thermoformers and Extrusion Coating and Laminating Lines.

Owing to its focused efforts in blown film and sheet extrusion lines, the Company enjoys premium market position in this segment. Being a technology driven Company, product innovations, world-class quality, state-of-the-art workmanship, increased energy efficiency and high levels of sophistication and automation have become the hallmark of Rajoo products during all these years, positioning the Companys products on a global platform, competing with the established world leaders. With representations in many countries of the world and customers in over 70 countries, the Companys exports have multiplied after its debut in the international market in 1990. The Company unveiled Extrusion Coating and Lamination machine as post extrusion process to substitute conventional adhesive lamination process for producing laminate for various packaging applications. Our expert has multiplied since debuting in the international market in 1990.

MARKET LEADERSHIP

Rajoo Engineers has evolved over the years, today the company:

Is a market leader in blown film lines, sheet lines, Thermoformers and extrusion coating & laminating lines in the Indian sub-continent

Is in a position of leadership amongst Asian manufacturers of similar equipment

A sought-after name in global markets exports accounting to over 45% of sales is indicative. While installations are spread across 70 countries, installations in Germany, Spain and U.K standout as acceptance by the most stringent and developed markets of the world.

We have established long-standing relationships with many of our customers. A notable portion of the business is generated through repeat orders, reflecting continued engagement with existing clients and confidence in the companys product offerings.

INNATE STRENGTHS

Knowledge, experience, technology assimilation and implementation are skills harboured by the company

which result in a number of technology firsts and the ability to suit solutions to regional needs.

Excellence in Extrusion is the origin, path and destination defining solutions offered by the company. Solutions include - the widest range of mono and multilayer blown film lines (up to seven layers), an impressive range of sheet lines (up to five layers), water quenched downward extrusion lines (up to two layers), lines for PE and PS foamed film and sheets (for various standard and special applications) as well as end-to-end thermoforming solutions. The extrusion lines cover processing of wide range of polymers like LDPE, LLDPE, MDPE, HDPE, PP, EVA; barrier materials like Polyamide, EVOH, Surlyn, elastomers, plastomers; thermoformable materials like PET, PS, PP and including new generation exotic polymers.

Technologies / products categories available include:

Mono and multilayer blown films lines

Mono & multilayer sheet lines

Extrusion Coating & Lamination Line

Cross Lamination Film Line for producing tarpaulin

Thermoforming & vacuum forming machines

Foam extrusion systems (chemical and physical)

Pipe plants

Drip Irrigation

Achievements/ Developments during the Year

Foundation Laid for Indias First-of-its-Kind Manufacturing Park: Rajoo Engineers conducted a Bhumi Pujan ceremony on February 5, 2025, for an 80-acre integrated manufacturing park in Rajkot. The project focuses on lean manufacturing, green energy, and IoT-enabled smart technologies aimed at building a sustainable and collaborative industrial ecosystem.

Rajkot Facility Expansion Tripling Production Capacity: The company unveiled its newly expanded Rajkot facility, increasing production capacity from 4 to 12 machines at a time. Built on 28,210 sq. ft. of land, the facility includes 18,000 sq. ft. for manufacturing and 7,000 sq. ft. for quality control. This expansion supports operational efficiency and aligns with the Make in India initiative.

Significant Investment in ‘Yantralaya High-Tech Machine Shop: A Rs. 30 crore investment was made to upgrade the companys in-house machine shop, Yantralaya, with advanced Japanese 5-axis vertical multitasking machinery. This move enhances production capacity by 40%, improves precision, and supports Rajoos Total Quality Management (TQM) standards.

Receipt of USD 15 Million International Order: The Company received a single large order worth USD 1.6 million from a prime overseas customer for to develop the Innovative plastic extrusion machinery demonstrating the trust and confidence customers have in Rajoos ability to deliver cutting-edge solutions.

Receipt of USD 1.6 Million International Order: Rajoo Engineers received a single large order worth USD 1.6 million from a prime overseas customer for a High Barrier Seven Layer Blown Film Machine, reaffirming its position in the global extrusion machinery market.

Allotment of Bonus Equity Shares in 1:1 Ratio: On August 09, 2024, the company allotted 6,15,04,574 fully paid-up bonus equity shares in the ratio of 1:1, increasing the paid-up capital from Rs. 6.15 crore to Rs. 12.30 crore.

Allotment of Bonus Equity Shares in 1:3 Ratio: On December 03, 2024, the company allotted 4,09,87,245 fully paid-up bonus equity shares in the ratio of 1:3, increasing the paid-up capital from Rs. 12.30 crore to Rs. 16.39 crore.

Fundraising via Qualified Institutions Placement (QIP)

The Company raised Rs. 160 Crore through Qualified Institutions Placement in July, 2025, increasing the

paid-up capital further from Rs. 16.39 Crore to Rs. 17.86 Crore..

CARE Ratings Reaffirmed with Improved Facilities: CARE Ratings reaffirmed and assigned strong ratings

to the company:

u CARE A-; Stable for long-term bank facilities (Rs. 20 crore)

u CARE A-; Stable / CARE A2+ for long/short-term facilities (Rs. 32 crore) u CARE A2+ for short-term facilities (Rs. 15 crore)

Acquisition of Industrial Plots for Future Expansion: Acquired two adjoining plots measuring 854.03 sq. mtrs. and 640.00 sq. mtrs. in Veraval (Shapar), Rajkot, to support future infrastructure development and integration of manufacturing operations.

Awarded SIES SOP Star Award 2025 for PROEX Pentafoilo: Won the prestigious SIES SOP Star Award 2025 in the Packaging Machineries/Systems category for the PROEX Series a high-performance five-layer co-extruder blown film line.

Managing Director, Ms. Khushboo Doshi, Wins “Best Woman in Manufacturing” Award

Recognized for her visionary leadership and excellence in the manufacturing sector.

Runner-Up Award for “Innovation in Manufacturing”: Rajoo Engineers received runner-up recognition for its contribution to innovation and sustainability in manufacturing processes.

Strategic Partnerships

Kohli Industries Alliance between Rajoo Engineers and Kohli Industries has changed the market dynamics for Extrusion Coating and Lamination Machines. The alliance created between Rajoo Engineer and Kohli Industries (leaders in rotogravure printing and laminating machines) for the flexible packaging industry, has comprehended the industry need and both companies joined hands to create a formidable alliance and are now supplying one of the most advanced and versatile Extrusion Coating and Lamination machines.

Bausano & Figli, Italy - Joint Venture with Bausano & Figli, Italy for plastics pipe manufacturing machines, granulation machines and WPC extrusion machines in India since 2011

FINANCIAL OVERVIEW

The financial performance of the Company for the year ended March 31st, 2025, is as follows:

Revenue from operations for the year ended was Rs. 253.66 crore in FY25, as against Rs. 197.35 crore in FY24, a YoY increase of 28.53%, on account of intensive efforts by a larger sales team and entry into new territories, coupled with revived demand for sheet extrusion lines and Thermoformers

EBITDA (excluding Other Income) was at Rs. 46.59 crore in FY25 as against Rs. 26.68 crore in FY24, increase of 74.60% YoY on account of increased in sales, higher capacity utilization and improved operational efficiencies

EBITDA Margin was at 18.37% as against 13.52%, YoY increase of 485 bps. A conscious standardization of products helped optimize raw material and other operating costs.

Profit after Tax was Rs. 35.29 crore in FY25 compared to Rs. 19.71 Crore in FY24, YoY increase of 79.05%.

PAT Margin was 13.91% as against 9.99%, YoY increase of 392 bps.

Basic EPS stood at Rs. 2.32 in FY25 compared to Rs. 1.28 in FY24, YoY increase of 81.25%.

RESOURCES AND LIQUIDITY

As on March 31, 2025, the Consolidated Net worth stood at Rs. 163.21 crore and the total debt was Nil. The

cash and cash equivalents at the end of March 31, 2025, were Rs. 6.21 crore.

SEGMENT WISE BUSINESS PERFORMANCE

The Company is operating in one segment only i.e. Plastics extrusion machines specifically film, thermoforming and sheet extrusion. As compared to other players in this segment, Company continues to be among the top performers in terms of growth in sales and profits and market share.

RISKS AND CONCERNS

Like every business, the Company faces risks, both internal and external, in the undertaking of its day-to-day operations and in pursuit of its longer-term objectives. A detailed policy drawn up and dedicated risk workshops are conducted for each business vertical and key support functions wherein risks are identified, assessed, analyzed and accepted / mitigated to an acceptable level within the risk appetite of the organization. The risk registers are also reviewed from time to time.

The Company faces the following Risks and Concerns:

Credit Risk

To manage its credit exposure, Rajoo has determined a credit policy with credit limit requests and approval procedures. Company does its own research of clients financial health and project prospects before bidding for a project. Timely and rigorous process is followed up with clients for payments as per schedule. The Company has suitably streamlined the process to develop a focused and aggressive receivables management system to ensure timely collections.

Interest Rate Risk

The Company has judiciously managed the debt-equity ratio. It has been using a mix of loans and internal

cash accruals. The Company has well managed the working capital to reduce the overall interest cost.

Competition Risk

This risk arises from more players wanting a share in the same pie. Like in most other industries, opportunity brings with itself competition. We face different levels of competition in each segment, from domestic as well as multinational companies. The Company has created strong differentiators in project execution, quality and delivery which make it resilient to competition. Furthermore, the Company continues to invest in technology and its people to remain ahead of the curve. A strong, stable client base consisting of large and mid-sized corporations further helps to insulate the Company from this risk. We counter this risk with the quality of our infrastructure, our customer-centric approach and our ability to innovate customer specific solutions, focusing on pricing and aggressive marketing strategy, disciplined project executions, coupled with prudent financial and human resources management and better control over costs. Thus, we do not expect to be significantly affected by this risk.

Input Cost Risk

Our profitability and cost effectiveness may be affected due to change in the prices of raw materials, power and other input costs. Some of the risks that are potentially significant in nature and need careful monitoring are Raw Materials prices, availability of Power etc.

Liability Risk

This risk refers to our liability arising from any damage to cargo, equipment, life and third parties which may adversely affect our business. The Company attempts to mitigate this risk through contractual obligations and insurance policies.

OPPORTUNITIES

Technology Trends

Innovation in raw materials such as Nano-composite reinforcing agents and bio-de-gradable polymers

Plastics are replacing wood, metals, natural rubber and other expensive engineered plastics

Regulatory Trends

Increasing emphasis on safe, odour-free, sustainable and green materials

Stringent CO2 emissions regulations and guidelines especially in automotive industry

Raw Material Trends

The fluctuation in the price of crude oil or natural gas has an impact on plastics industry

Plastics additives market to register highest growth in packaging and automotive applications

Application Trends

Increasing demand for lightweight materials replacing glass, rubber and wood in numerous applications is driving plastics market

Replacement of heavy metals in dyes and pigments applications by plastics

Supplier Power

Factors such as presence of few supplier and large number of buyers are leading to greater supplier power

Multiple plastics applications have spurred higher product variety demand

THREATS

Competition from local and multinational players

Execution risk

Regulatory changes

Credit squeeze on lending by NBFCs

Input Cost risk

Attraction and retention of human capital

Technological Advancements

The most critical, challenges that Indian plastics industry is facing today is the “image of plastics” and unmindful ban on some plastics products in some states in India. Some of the myths perpetuated about plastics are:

Feared as being toxic

Maybe harmful to the soil

Could cause acid rain

Is not environment friendly

Has high carbon foot print

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The Company also implemented effective systems for achieving highest level of efficiency in operations, to achieve optimum and effective utilization of resources, monitoring thereof and the compliance with provisions all laws including the Companies Act, 2013, Listing Agreement, directions issued by the Securities and Exchange Board of India, labour laws, tax laws etc. It also aimed at improvement in financial management, and investment policy. The System ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial reporting, accounting, information security, project appraisal, and corporate governance. A qualified and independent Audit Committee of the Board of Directors also reviews the internal control system and its impacts on improvement of overall performance of the Company.

HUMAN RESOURCES

The Companys HR philosophy is to establish and build a high performing organization, where everyone is motivated to perform to the fullest capacity: to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. As on March 31, 2025, Company is giving direct employment to 352 employees. Industrial relations are cordial and satisfactory.

OUTLOOK

The Indian plastics extrusion sector is on track for significant growth, with projections indicating a promising future for both the industry and key players. India, with its growing demand for plastics products, is poised to become a major global producer in the coming years. The global market for extrusion machinery, which was valued at USD 8.33 billion in 2022, is expected to grow to USD 11.6 billion by 2030. This growth is largely driven by industries such as packaging, automotive, construction, healthcare, and oil and gas, all of which rely heavily on extrusion machinery to produce various plastic products.

Rajoo Engineers has had a remarkable year, with its revenues surpassing Rs. XX crore, reflecting its strong position within the sector. The company has continued to build trust and confidence among customers, evidenced by their solid order book. Rajoo Engineers secured high-value contracts, including an order from a leading European farm machinery manufacturer, and delivered sheet extrusion systems to renowned global players like Cosmo Films and Berry Global. The companys commitment to innovation is clear with the development of a new, industry-leading blown film line range, setting new benchmarks in the market. Furthermore, Rajoo Engineers recently inaugurated a state-of-the-art facility, which underscores its focus on operational excellence and high-quality standards.

As the company looks ahead, it is aligning its strategies with the growing demand from key sectors such as infrastructure, agriculture, electronics, and renewable energy. In addition to strengthening its technological capabilities, Rajoo Engineers is also placing a strong emphasis on sustainability. With an eye toward reducing its carbon footprint, the company aims to satisfy 65% of its electricity needs through renewable energy sources, particularly by expanding its solar park.

Rajoo Engineers is also working toward fostering diversity and inclusion within its workforce, setting ambitious goals to allocate 8-10% of job opportunities for women and 2% for differently-abled individuals. These efforts are part of a broader strategy to ensure the companys long-term growth and positive contribution to the industry.

Overall, the future of the plastics extrusion sector looks bright, with companies like Rajoo Engineers leading the way by innovating, expanding operations, and committing to sustainability and inclusivity. With India continuing to be a central player in the global plastics market, the sector is expected to experience continued growth and development in FY26 and beyond.

KEY FINANCIAL RATIOS

Ratios	2024-25	2023-24	Variance (%)	Reason
Debtors /Trade Receivables turnover (times)	16.41	12.21	34.42%	The ratio has increased due to increase in Turnover for the year.
Inventory Turnover Ratio (times)	1.43	1.75	-18.46%
Interest Coverage Ratio	112.487	99.24	13.35%
Current Ratio (times)	1.61	1.74	-7.48%
Debt Equity Ratio (times)	0.00	0.01	-87.22%	The ratio is zero this year due to the absence of any outstanding debt.
Operating Profit Margin (%)	32.66	27.88	17.15%
Net Profit Margin (%)	13.89	9.95	39.58%	The Ratio has increased due to an overall increase in sales and profitability throughout the year.
Return on Net Worth	23.06	16.49	39.83%	The Ratio has increased due to an overall increase in sales and profitability along with operational efficiency throughout the year in proportion to increase in net worth.