Rajputana Industries Ltd Management Discussions

Overview

The fiscal year 2024-25 was marked by economic resilience, despite global headwinds ranging from inflationary pressures to geopolitical tensions. Rajputana Industries Limited, engaged in the non-ferrous metal industry, demonstrated its ability to adapt to changing macroeconomic environments while maintaining strategic growth. With India emerging as a global hub for manufacturing and infrastructure, the company capitalized on sectoral momentum to strengthen its market position.

The year also brought to light the importance of robust supply chains, energy efficiency, and sustainability-driven innovation. Rajputana Industries responded to these imperatives by enhancing its operational capabilities, improving product quality, and maintaining cost competitiveness. The company remained focused on long-term strategic priorities, including product diversification, customer-centric development, and export expansion. Amidst global uncertainties, we reinforced our commitment to delivering value to stakeholders and contributing meaningfully to Indias industrial growth journey.

Rajputana Industries Limited, a listed SME on the NSE, is a leading manufacturer and supplier of non-ferrous metal components catering to a diverse range of industries, including electrical, power transmission, automotive, industrial machinery, and infrastructure. With state-of-the-art facilities and a dedicated R&D team, the company is focused on innovation, quality excellence, and strategic customer partnerships to drive long-term sustainable growth in both domestic and international markets.

Proudly rooted in India, Rajputana Industries is built on the foundational principles of trust, transparency, and tenacity. The companys name draws inspiration from the rich legacy of Rajputana, symbolizing strength, honor, and resilience-values that continue to guide its journey. Since inception, the company has consistently aligned traditional values with modern industrial practices to create value for its stakeholders.

Our core expertise lies in manufacturing and processing high-quality non-ferrous metal products engineered to meet stringent industrial standards. We are committed to delivering durable, high-performance, and precisely tailored solutions that meet the specific needs of each customer. A robust quality control system, advanced production infrastructure, and responsive customer support have enabled us to build long-standing relationships across key industry segments.

Backed by a legacy of operational excellence and integrity, Rajputana Industries continues to expand its footprint through continuous process improvements, efficient supply chain management, and strategic talent development. With a value-driven approach and strong corporate governance, the company remains committed to delivering customized solutions that meet evolving global standards and exceed customer expectations.

The global economy in FY 2024-25 delivered a cautiously optimistic performance amid persistent challenges including geopolitical instability, elevated borrowing costs, and ongoing transitions in energy and trade dynamics. According to the International Monetary Fund (IMF), global GDP grew at an estimated 3.2%, mirroring the previous years pace. This growth was supported by resilient consumer demand, gradual moderation of inflation, and policy support in certain economies, even as recovery remained uneven across advanced and emerging markets.

Advanced economies faced tighter financial conditions due to prolonged interest rate hikes, yet showed resilience in consumption and services activity. Emerging and developing economies, particularly in Asia, remained key drivers of global output, benefiting from manufacturing momentum and demographic dividends. However, downside risks such as supply chain disruptions, volatile energy markets, and trade policy uncertainties continued to weigh on global investment and growth confidence.

While inflation moderated marginally compared to the prior fiscal, it remained above central bank targets in many regions, prompting continued monetary tightening and cautious fiscal strategies. In this evolving environment, businesses across sectors had to navigate volatility with prudence. Rajputana Industries closely tracked these macroeconomic developments, adapting its sourcing, pricing, and risk management strategies to remain resilient while identifying new opportunities across both domestic and export markets.

Global inflation moderated but remained above pre-pandemic levels in many regions. Central banks, including the US Federal Reserve and the European Central Bank, maintained tight monetary stances to anchor inflation expectations. These policies influenced currency volatility and capital flows, impacting emerging markets.

In India, the Reserve Bank of India (RBI) adopted a calibrated approach to maintain price stability while supporting growth. Interest rate decisions were guided by evolving inflation trends and global cues. For businesses like Rajputana Industries, these monetary dynamics shaped input costs, borrowing rates, and investment planning. The company ensured financial prudence and operational adaptability in response to the prevailing economic environment.

The geopolitical landscape during FY2024-25 was marked by persistent tensions in Eastern Europe, the Middle East, and parts of Asia. These developments impacted global energy prices, trade routes, and investor sentiments. Additionally, sanctions and restrictions imposed by major economies on specific sectors and countries led to uncertainty in global supply chains.

Rajputana Industries remained vigilant in assessing geopolitical developments and proactively diversified its sourcing and customer base. By fostering resilient relationships with partners across stable regions and maintaining robust compliance practices, the company safeguarded its operations from geopolitical shocks while continuing to serve global clients reliably.

India retained its position as one of the fastest-growing economies globally, with GDP expanding by 7.6% in FY2024. Growth was led by government capex, resilient private consumption, and strong industrial output. The country continued its transition towards a digital and manufacturing-led economy with initiatives like Make in India, Atmanirbhar Bharat, and the PLI schemes for strategic sectors.

The Union Budget 2024-25 emphasized infrastructure, green energy, and MSME development. Capital expenditure was increased by 33%, focused on transportation, logistics, and digital connectivity. Supportive policies for manufacturing, including duty rationalization and ease of doing business measures, provided a strong tailwind for sectors like non-ferrous metals.

As we transition into FY2025-26, global economic stability is expected to improve, with inflation showing signs of moderation and interest rates gradually normalizing. The International Monetary Fund (IMF) projects steady global growth, with supportive conditions for industrial recovery, especially in developing economies. Additionally, global efforts toward climate resilience, renewable energy adoption, and supply chain rebalancing are anticipated to open up new business avenues for manufacturers like Rajputana Industries.

On the domestic front, Indias economic outlook remains optimistic, underpinned by strong demographics, expanding infrastructure, and sustained momentum in manufacturing and digital services. Government-led initiatives such as Make in India, the National Infrastructure Pipeline (NIP), and Gati Shakti are expected to fuel demand for non-ferrous metals across sectors like power transmission, mobility, construction, and electronics. Rajputana Industries is strategically aligned to leverage these tailwinds through capacity augmentation, innovation, and customer-centric development.

We also foresee significant export growth driven by the global China+1 sourcing strategy, which has improved Indias positioning as a reliable supply chain partner. Our plans include expanding presence in ASEAN, European, and African markets through compliant, high-performance products, efficient delivery models, and adaptive customer solutions. By investing in R&D, ESG frameworks, and digitization, Rajputana Industries is well-prepared to tap into emerging trends and deliver long-term sustainable value to all stakeholders.

The financial year 2024-25 marked a strong period of growth and performance enhancement for Rajputana Industries Limited. As per the audited financial results approved in the Board Meeting dated May 28, 2025, the Company recorded total revenue of INR 6,587.52 lakhs in FY2024, representing a 12.5% increase over INR 5,855.97 lakhs in FY2023. This revenue growth was driven by robust demand across the electrical, infrastructure, and automotive sectors, supported by expanded production capacity and improved product mix.

Profit before tax rose significantly to INR 557.70 lakhs in FY2024, up from INR 425.87 lakhs in the previous year, registering a year-on-year growth of 30.96%. Profit After Tax (PAT) reached INR 400.50 lakhs, as compared to INR 322.58 lakhs in FY2023. The Companys Earnings Per Share (EPS) also improved to INR 3.46, up from INR 2.79, reflecting the impact of operational efficiency and sound cost management. The expansion in EBITDA margin by 110 basis points highlights effective capacity utilization, strategic pricing, and ongoing investment in process improvements.

Operationally, Rajputana Industries saw significant progress due to continued investments in digitalization and lean manufacturing practices. Operational efficiency improved by 13%, supported by better workflow systems and automation. The working capital cycle shortened by 9 days, contributing to improved cash flow management and liquidity. With a focus on financial discipline, the Company maintained a healthy balance sheet, positioning itself well for future scalability and sustained value creation.

* Electrical Industry: Surge in electrification projects and renewable energy investments boosted demand for non-ferrous components.

* Power Transmission: Investments in smart grids and rural electrification drove the need for high-conductivity materials.

* Automotive Industry: The shift to electric vehicles (EVs) and light-weighting of components increased the consumption of copper, aluminium, and alloys.

* Infrastructure and Construction: Urban infrastructure projects under Smart Cities Mission and NIP increased the usage of non-ferrous materials in cabling, plumbing, and structural applications.

* Industrial Machinery: Automation and modernization led to demand for precision-engineered non-ferrous parts.

Rajputana Industries strength lies in its commitment to R&D-driven innovation, particularly in developing non-ferrous alloys that meet the evolving needs of clients across sectors. Our agile supply chain and expansive distribution network enable us to deliver products efficiently to both domestic and international customers.

Our strong vendor relationships and high customer retention reflect the trust weve built over time. Additionally, we operate with a lean cost structure and a growing emphasis on ESG-compliant practices. These attributes not only enhance profitability but also position us as a sustainable, reliable partner in the global metals supply ecosystem.

* Financial Performance: Improve profitability through enhanced operational efficiency, tight cost control, and margin improvement strategies.

* Strategic Market Expansion: Strengthen our presence across OEMs, expand our export portfolio, and diversify into high- growth industries.

* Building Higher Margin Businesses: Focus on niche, value-added products with better margins, especially for the EV, renewable energy, and industrial automation sectors.

* Financial Stewardship: Maintain a strong balance sheet with optimal leverage, improved cash flows, and disciplined capital allocation.

* Human Capital Development: Empower our workforce through skill development, leadership training, employee engagement, and retention initiatives.

* Operational Excellence: Continue to invest in automation, digitization, and process optimization to boost productivity.

* Customer-Centric Approach: Provide customized solutions, proactive support, and reduced turnaround times to improve customer satisfaction.

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as specified under the Companies Act, 2013. There have been no deviations in the accounting treatment from the previous financial year.

Our employees form the backbone of our sustained performance. During FY2024-25, the Company rolled out new employee development programs, focusing on leadership, digital competencies, and technical skills. Health and wellness initiatives were strengthened with upgraded medical benefits and flexible work policies.

Internal promotions were prioritized, reflecting our belief in talent growth and retention. Attrition remained under 9%, underscoring strong employee engagement. We continue to foster a culture of inclusivity, innovation, and accountability across all levels.

Rajputana Industries Limited operates in a dynamic business environment that presents several external and internal risks which may impact operations, profitability, or strategic growth. Key risks are outlined below, along with mitigation strategies:

The company is significantly exposed to fluctuations in international prices of key raw materials like copper and aluminium. Sharp changes in commodity prices may affect production costs and margins. To mitigate this, we monitor global pricing trends closely and employ strategic procurement practices.

Given the companys involvement in both imports and exports, currency exchange rate movements pose a risk to earnings. Depreciation or volatility in INR against major currencies could lead to margin pressures. The company continues to explore effective hedging strategies to manage forex exposure.

Any unfavorable changes in environmental regulations, mining policies, or trade laws—especially in international jurisdictions—could impact raw material availability or operational compliance. Rajputana Industries ensures regular compliance updates and engages with stakeholders to remain aligned with evolving legal frameworks.

Disruptions due to geopolitical tensions, global shipping delays, or raw material shortages could affect timely production. The company is focused on building resilient and diversified supply networks to minimize dependency and strengthen logistics planning.

Over-reliance on a limited set of large customers may pose revenue stability concerns. To address this, Rajputana Industries is expanding its customer base across regions and sectors, aiming for a more balanced and diversified revenue mix.

By continuously evaluating these risks and integrating risk management into strategic decision-making, the company strives to safeguard business continuity and enhance stakeholder value.

Our strengths include experienced leadership, technical expertise, robust backward integration, and long-standing client relationships. These enable us to deliver consistent quality, maintain cost competitiveness, and respond swiftly to market dynamics.

With Indias strong focus on self-reliance, digital infrastructure, and industrial growth, we see vast potential in sectors like EVs, renewables, and smart cities. These trends will continue to drive demand for our innovative non-ferrous metal solutions.

Rajputana Industries Limited is strategically placed to build on its FY2024-25 performance and chart a course for sustainable, long-term growth. With a clear roadmap, strong financial fundamentals, and a customer-first mindset, we aim to contribute meaningfully to Indias journey toward becoming a global manufacturing and export powerhouse.

Certain statements in this report may be forward-looking in nature. Actual performance may differ materially from those expressed or implied due to macroeconomic changes, regulatory factors, and unforeseen events. The Company assumes no obligation to update any forward-looking statements that may be made from time to time.