Rama Steel Tubes Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy

The year 2024 marked a period of resilience and recalibration for the global economy. Faced with a volatile backdrop of geopolitical unrest, persistent inflation and evolving trade relationships, economies across the world adapted to shifting realities. The world economy recorded a year-on-year (YoY) growth of 3.3% in 2024, led by the robust performance of Emerging Market and Developing Economies (EMDEs), which expanded by 4.3% YoY. Advanced economies, in contrast, grew at a more moderate pace of 1.8% in 2024. The United States stood out with a 2.8% growth in 2024, underpinned by a resilient labour market and strong consumer demand, although growth is expected to moderate amid policy uncertainties and global trade tensions. The Eurozone struggled with structural issues and elevated energy costs, limiting its growth to 0.9% in 2024.

Moreover, during 2024, India and Southeast Asia emerged as key growth drivers, supported by domestic consumption, digital transformation and infrastructure investment. China posted 5.0% growth in 2024, driven by fiscal support and infrastructure-led demand, though lingering weaknesses in the property sector and subdued exports tempered its momentum. Chinas GDP growth is projected to ease to around 4.0% in the coming years. Amid ongoing trade disruptions and fragmented supply chains, several countries took steps to diversify trade partnerships and enhance local manufacturing capabilities, helping sustain export activity and bolster economic resilience.

World Economic Output (%)

	2023	2024	2025E	2026E
World Output	3.5	3.3	2.8	3.0
Advanced Economies	1.7	1.8	1.4	1.5
United States	2.9	2.8	1.8	1.7
Euro Area	0.4	0.9	0.8	1.2
Emerging Market	4.7	4.3	3.7	3.9
and Developing
Economies
China	5.4	5.0	4.0	4.0
India	9.2	6.5	6.2	6.3

Source: IMF April Outlook

Outlook

Looking ahead, global economic growth is expected to ease, with projections of 2.8% in 2025 and 3.0% in 2026. EMDEs are anticipated to continue driving global expansion, with growth rates forecasted at 3.7% and 3.9% for 2025 and 2026 respectively. In contrast, advanced economies are likely to see more modest gains, with estimated growth of 1.4% in 2025 and 1.5% in 2026. Despite ongoing challenges such as geopolitical instability, climate-related shocks and trade fragmentation, long-term resilience is expected to be underpinned by increased investment in clean energy and accelerating digital transformation. However, rising uncertainty around potential reinstatement or escalation of US tariffs may impact global supply chains and dampen market sentiment. However, these broader changes are anticipated to contribute to a more stable, inclusive and sustainable trajectory for global economic growth.

Source:https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025 https://www.iea.org/reports/global-energy-review-2025/global-trends

The world economy recorded a year-on-year (YoY) growth of 3.3% in 2024, led by the robust performance of Emerging Market and Developing Economies (EMDEs), which expanded by 4.3% YoY. Advanced economies, in contrast, grew at a more moderate pace of 1.8% in 2024.

Indian Economy

India continues to be one of the fastest-growing major economies, driven by favourable demographics, resilient domestic consumption and the sustained implementation of structural reforms. Its growing influence in the global economy is reinforced by strong GST collections and consistent progress across key sectors such as manufacturing, infrastructure and technology. While GDP growth is projected to ease to 6.5% YoY in FY25 due to a high base, it still reflects robust economic momentum, supported by structural reforms, rising infrastructure investments and a strong services sector. The slowdown follows a robust 9.2% YoY growth in FY24, driven by a favourable base effect and resilient domestic fundamentals including consumption, infrastructure development and proactive policy support post Covid-19. The broader economic outlook remains stable, despite these headwinds, supported by robust services sector growth, rising public infrastructure investment and continued government initiatives in digital transformation, financial inclusion and improving the business environment.

Indias economy maintained strong momentum in FY25, demonstrating broad-based resilience across agriculture, industry and services. Among sectors, construction is projected to register the highest year-on-year (YoY) growth at 9.4%, followed by public administration, defence and other services at 8.9% and financial, real estate and professional services at 7.2% YoY. The primary sector also showed improved performance, growing by 4.4% YoY in FY25 compared to 2.7% YoY in the previous year.

On the demand side, Private Final Consumption Expenditure (PFCE) registered a 7.2% YoY growth in FY25, up from 5.6% YoY in the prior year, while Gross Fixed Capital Formation (GFCF) grew by 7.1% YoY during FY25, indicating healthy investment activity across the economy. On the fiscal side, India continued to steer a prudent course. The fiscal deficit stood at 4.8% of GDP in FY25, with a roadmap to reduce it to 4.4% in FY26. Inflation also eased, with the CPI averaging 4.6% in FY25, down from 5.4% the year before creating room for the Reserve Bank of India (RBI) to support growth. Through three calibrated policy rate cuts since February 2025, the repo rate was brought down by 100 basis points to

The broader economic outlook remains stable, despite these headwinds, supported by robust services sector growth, rising public infrastructure investment and continued government initiatives in digital transformation, financial inclusion and improving the business environment.

5.5% by June 2025, helping to boost liquidity and backing economic activity.

Outlook

India is expected to continue its strong growth, supported by inclusive and innovation-led development. With GDP projected to grow at 6.5% YoY in FY26, the country is set to retain its position as the worlds fastest-growing major economy. Current policies such as the Goods and Services Tax, Startup India and the Production Linked Incentive Scheme are shaping a dynamic environment for entrepreneurship and advanced manufacturing. The FY26 Union Budget reinforces this momentum, earmarking 11.21 lakh crore for capital investment in the infrastructure sector, along with 1.5 lakh crore in 50-year interest-free loans to states, aimed at catalysing infrastructure expansion and reform-led transformation. These strategic investments signal Indias unwavering commitment to building a resilient, future-ready and globally competitive economy.

Source: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353 https://www.pib.gov.in/PressReleasePage. aspx?PRID=2098352#:~:text=the%20FRBM%20statement.-,Smt.,4.4%20per%20cent%20of%20GDP.-fiscal https://mospi.gov.in/sites/default/files/press_release/NAD_ PR_30may2025.pdf

INDUSTRY OVERVIEW

GLOBAL STEEL INDUSTRY

In 2024, the global steel industry demonstrated both resilience and adaptation amid a complex landscape shaped by environmental targets, technological shifts and geopolitical tensions. According to the World Steel Association, global crude steel production stood at 1,839.4 million tonnes (Mt) in 2024, registering a slight 0.9% decline from 2023. Asia and Oceania remained the largest contributor with 1,357.8 million tonnes, though production fell by 1.0% year-on-year. The European Union (EU-27) and Other Europe recorded growth of 2.6% and 3.4% respectively, while Africa and South America also saw modest increases of 1.0% and 0.6%. In contrast, North America and the CIS region, including Russia and Ukraine, experienced a 4.2% drop in output. The Middle East posted slight growth of 0.5%, despite a year-end slowdown. Overall, regional performances were mixed, with gains in some areas offset by declines in others amid global economic and geopolitical challenges.

According to the World Steel Association, global crude steel production stood at 1,839.4 million tonnes (Mt) in 2024, registering a slight 0.9% decline from 2023. Asia and Oceania remained the largest contributor with 1,357.8 million tonnes, though production fell by 1.0% year-on-year.

The global steel industry continues to serve as a vital engine of infrastructure and economic development, underpinning essential sectors such as construction, automotive and energy.

According to JPC report, The top 10 steel-producing countries collectively produced 1,591.2 Mt in 2024, accounting for 84.5% of global production and reflecting a modest 0.9% increase over the previous year. Among them, India, Germany, T?rkiye, Brazil and Iran recorded Year Over Year (YoY) growth, while others such as China, Japan, the U.S. and Russia saw declines in the previous year. Notably, Asias total production stood at 1,385.8 Mt, down 0.9%, with China and India contributing 72.5% and 10.8%, respectively. These production trends point to a shifting global dynamic, where emerging economies are gradually gaining share amid slowing production in more mature markets. As the industry navigates the challenges of decarbonization, trade volatility and fluctuating demand, steel remains an essential material at the heart of global growth and transformation.

Outlook

The global industrial landscape is poised for a period of cautious recovery amid evolving macroeconomic and geopolitical dynamics. The World Steel Associations Short Range Outlook for 2024 anticipates a difficult year for the global steel industry, with demand projected to fall by 0.9% to 1,751 Mt. This marks the continuation of a downward trend for the third consecutive year. However, a turnaround is anticipated in 2025, with demand forecast to rise by 1.2% to 1,772 Mt, supported by improving conditions in several key markets outside of China. The downturn in Chinas property sector remains a major drag, leading to projected consumption drops of 3.0% in 2024 and 1.0% in 2025. Nonetheless, increased government support could lift prospects beyond current expectations.

India is expected to remain the primary growth driver, with steel demand projected to rise by a cumulative 8.0% over the next two years, driven by sustained investment in infrastructure and expansion across core industries. Other developing regions such as MENA and ASEAN are also expected to recover after recent slowdowns, contributing to demand growth of 3.5% in 2024 and 4.2% in 2025 across emerging economies excluding China. Advanced economies are forecast to contract by 2.0% in 2024, largely due to subdued activity in major steel-consuming nations like the U.S., Japan, Korea and Germany. A moderate improvement of 1.9% is expected in 2025, led by recovery signs in Europe and stabilising trends in North America and Asia. The direction of global steel demand will hinge on policy effectiveness, macroeconomic stability and investment flows into climate and digital infrastructure.

Source:https://worldsteel.org/media/press-releases/2025/ december-2024-crude-steel-production-and-2024-global-totals/ https://jpcindiansteel.nic.in/writereaddata/files/Trend%20 Report%20January%202025.pdf

The World Steel Associations Short Range Outlook for 2024 anticipates a difficult year for the global steel industry, with demand projected to fall by 0.9% to 1,751 Mt. This marks the continuation of a downward trend for the third consecutive year.

INDIAN STEEL INDUSTRY

India is the second-largest producer and consumer of steel in the world, underscoring the countrys critical role in the global steel industry. Developments in Indias steel sector hold significant implications not only for the domestic economy but also for global supply chains. This prominent position also reflects Indias status as a rapidly developing economy. The steel industry serves as a key enabler of economic growth—as studies have shown that for every one US dollar of income generated within the steel industry, an additional five US dollars are generated across other sectors of the economy, highlighting its strong multiplier effect.

The Indian steel industry maintained strong growth momentum in FY25, with production rising across key segments. Crude steel output reached 151.9 Mt, a 5.3% increase over the previous year, while hot metal production grew by 4.9% to 91.3 Mt. Pig iron production saw a robust rise of 13.2%, touching 8.3 Mt and sponge iron production rose by 7.9% to 55.7 Mt, with the coal-based route contributing 84% of the total. Finished steel production also grew by 5.3%, reaching 146.6 Mt. This broad-based growth across categories reflects the industrys resilience and sustained domestic demand, even amid global trade challenges. In the non-alloy flat segment, Hot Rolled Coils (HRC) led the increase with production rising 1.7% to 54.1 Mt. The overall production mix showed non-flat products accounting for 55%—up 5.9%—while flat products made up 45%, registering a 4.6% increase, underscoring a balanced and expanding output across the board.

Trade Scenario in FY25

In FY25, Indias finished steel trade dynamics presented a mixed scenario. Total exports of finished steel dropped significantlyby35.1%YoY,settlingat4.858Mt.Galvanized Plain/Galvanized Corrugated (GP/GC) Sheets and Coils were the most exported items, contributing 23% of the total export volume at 1.1 Mt. Italy emerged as the leading export destination during the year under review. On the other hand, imports of finished steel witnessed a rise of 14.8%YoY, reaching 9.6 Mt, making India a net importer for the period. Hot Rolled (HR) Coils and Strips dominated the import basket with 3.9 Mt, accounting for 41% of the total, while Korea remained the largest source of imports, contributing 29% to the overall volume. On the import front, flat products dominated with a 95% share, increasing by 14.6%, whereas non-flat imports made up 5%, registering an 18.1% growth. Exports, however, saw a decline—flat products comprised 84% of total exports, down by 38.7% and non-flats accounted for 16%, decreasing by 5.6%YoY.

Outlook

Indias steel sector is navigating a mixed outlook as it heads into FY26. Growth is expected to be driven by the ongoing shift toward steel-intensive construction across housing and infrastructure, alongside steady demand from engineering, packaging and other end-user industries. However, challenges persist. Rising imports and a slowdown in demand growth are weighing on the industry. While finished steel demand is estimated to grow by 10% in FY25, this is at the lower end of ICRAs earlier projections, with demand growth falling below 7.5% in the latter half of the fiscal year. A potential reduction in government capital expenditure could further dampen momentum, with demand in FY26 now expected to grow by just 7–8%. As of April 24, 2025, Indias per capita steel consumption stood at 98 kilograms, with projections indicating a rise to 160 kilograms by 2030—reflecting increasing demand from infrastructure, construction and the automotive sectors.

Source: https://www.pib.gov.in/PressReleasePage. aspx?PRID=2124042 https://jpcindiansteel.nic.in/writereaddata/files/ TrendReportApril%202025.pdf ICRA-Steel Industry – Trends & Outlook. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2124170

Key Growth Opportunities

Indias Rise as a Global Steel Powerhouse: Indias transformation into the worlds second-largest steel producer reflects the countrys broader push toward modernisation, self-reliance and sustainable industrialisation. This rapid ascent, marked by surpassing Japan in 2018, highlights the steel industrys strategic importance in supporting national infrastructure development. Between 2019 and 2023, Indias steel production grew at a robust Compound Annual Growth Rate (CAGR) of 6%, far exceeding Chinas 1% growth and outpacing a global decline of 1%. India also contributed 6% to the global steel capacity addition of 62 Mt during this period. Looking ahead, India—along with ASEAN nations—is expected to account for nearly 89% of Asias upcoming steelmaking capacity, reinforcing its pivotal role in regional and global steel markets.

Rising Infrastructure Capex and Real Estate Expansion: A major growth driver for the Indian steel industry is the continued increase in public capital expenditure on infrastructure. The central government has allocated 11.2 trillion for capex in FY26, while long-term interest-free loans to state governments are expected to further boost their infrastructure investments. Key focus areas such as railway modernisation and the development of high-speed highway corridors are set to drive significant steel demand. Additionally, a surge in residential real estate launches is further supporting the upward trend in steel consumption.

Iron Ore Abundance and Mining Expansion: Indias abundant iron ore reserves—over 35 billion tonnes, making it the fifth-largest globally—are a key enabler of domestic steel production. In FY25, iron ore output reached 263 Mt, with 50 Mt exported, reflecting efforts to prioritize supply for the growing needs of the steel industry. Supported by 179 operational mines and 126 auctioned mineral blocks (38 of which are already functional), the sector is expanding its capacity in line with rising demand. However, with more than 66% of the reserves classified as medium- to low-grade, there is a

In FY25, Indias finished steel trade dynamics presented a mixed scenario. Total exports of finished steel dropped significantly by 35.1% YoY, settling at 4.858 Mt. Galvanized Plain/ Galvanized Corrugated (GP/ GC) Sheets and Coils were the most exported items, contributing 23% of the total export volume at 1.1 Mt.

pressing need to strengthen beneficiation infrastructure to improve ore quality. This will be vital for ensuring efficient, high-quality and sustainable steel production to meet the increasing requirements from construction, infrastructure and other key sectors.

Real Estate Momentum and Affordable Housing Push: Accelerated growth in the real estate sector is emerging as a key driver for the Indian steel industry. In FY26, residential real estate launches are expected to gain pace, supported by reduced housing inventory levels. The commercial real estate segment is also witnessing strong traction, driven by the rapid expansion of Global Capability Centres (GCCs) and Data Centres. Further boosting steel consumption, the public housing programme has received renewed focus under the extended Pradhan Mantri Awas Yojana–Urban (PMAY-U). As of 14th July 2025, 1.2 crore houses have been sanctioned under the scheme, with over 90 lakh already occupied. The governments target of constructing an additional 2 crore houses over the next five years is expected to significantly elevate steel demand across construction and allied sectors.

Progress in Automotive and Aerospace Technologies: The growing adoption of electric vehicles and advancements in automotive technology are driving demand for both high-strength and lightweight steel. EVs require strong steel for battery protection, while lighter steel alternatives are replacing aluminum to reduce weight without compromising safety or performance. Stricter safety norms are also pushing automakers to use advanced steel alloys for better crash resistance. In aerospace, similar progress is underway. Advanced high-strength and corrosion-resistant steels are enabling lighter, more efficient aircraft while enhancing durability. As both industries prioritize sustainability, steel continues to evolve as a key material powering the future of mobility—on land and in the air.

Technological Advancements in Steel Production: Steel manufacturing is rapidly evolving through the adoption of advanced technologies that boost efficiency, cut costs and reduce environmental impact. Producers are embracing innovations like hydrogen-based steelmaking—led by companies such as ArcelorMittal and SSAB (Swedish Steel AB)—to move toward carbon-

In FY25, iron ore output reached 263 Mt, with 50 Mt exported, reflecting efforts to prioritize supply for the growing needs of the steel industry. Supported by 179 operational mines and 126 auctioned mineral blocks (38 of which are already functional), the sector is expanding its capacity in line with rising demand.

neutral operations. Artificial intelligence (AI) and automation are streamlining processes and enhancing productivity, while 3D printing, also known as additive manufacturing, is opening new avenues for steel applications. These advancements are helping the industry remain competitive and sustainable in a fast-changing global landscape.

Green Steel and Sustainable Manufacturing Practices: The steel industry is undergoing a major shift as stricter environmental regulations and global climate goals push producers toward cleaner, more sustainable practices. Theres a growing focus on recycled steel, energy-efficient Electric Arc Furnaces (EAFs) and carbon capture technologies to reduce emissions. These changes mark a broader move toward green steel, now essential for long-term sustainability and regulatory compliance.

Source: https://www.steel-technology.com/articles/steel-industry-2025-growth-drivers-and-market-disruptors https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2124513 https://www.pib.gov.in/FeaturesDeatils. aspx?NoteId=153290&ModuleId=2

Key Government Initiatives

The Government of India is actively driving the growth and sustainability of the steel industry through several strategic initiatives. These include Mission Purvodaya to boost regional steel production, the PLI Scheme for SpecialtySteeltoattractinvestmentsandcollaborations for low-carbon technologies. Emphasis is also placed on green steel standards, hydrogen-based production and enhanced R&D. Regulatory measures like the Quality Control Order (QCO) and Steel Import Monitoring System 2.0 (SIMS 2.0) improve quality and import monitoring. Supportive policies such as customs duty cuts and major housing and infrastructure schemes further strengthen domestic demand and industry competitiveness.

Production Linked Incentive (PLI) Scheme: The Production Linked Incentive (PLI) Scheme for Specialty Steel, launched in July 2021 with a 6,322 crore outlay, aims to boost domestic manufacturing, investment and innovation. The PLI Scheme has attracted 44 projects with 27,100 crore in investments and enabled 23.8 Mt of added capacity as of March 24, 2025 . Building on this success, Phase 1.1 of the scheme was launched, with 42 companies signing MoUs, signaling strong industry participation and continued momentum.

Promotion of Indigenous Manufacturing through DMI&SP Policy: The Domestically Manufactured Iron

& Steel Products (DMI&SP) Policy mandates the use of locally produced steel in government procurement. By promoting ‘Made in India steel, the policy supports domestic producers, strengthens the local value chain and reduces reliance on imports, thereby promoting self-reliance in steel production.

Vehicle Scrappage Policy to Boost Steel Recycling and Sustainability: As part of its sustainability and circular economy efforts, the Government of India has introduced the Vehicle Scrappage Policy through the Ministry of Road Transport and Highways (MoRTH). This policy aims to phase out old, unfit and polluting vehicles by creating an ecosystem supported by incentives and disincentives. MoRTH has established rules for the Registration and Functions of Vehicle Scrapping Facilities (RVSFs), ensuring proper procedures and infrastructure for environmentally compliant depollution and dismantling of End-of-Life Vehicles (ELVs). This initiative is expected to enhance the availability of recycled steel and raw

The Government of India is actively driving the growth and sustainability of the steel industry through several strategic initiatives. These include Mission Purvodaya to boost regional steel production, the PLI Scheme for Specialty Steel to attract investments and collaborations for low-carbon technologies.

materials, contributing to a more resource-efficient steel industry.

Imposition of Safeguard Duty to Support Domestic Steel Manufacturers: To shield Indian steel producers from rising import pressures, the government has imposed a 12% safeguard duty on select non-alloy and alloy steel flat products. This move, aligned with the Atmanirbhar Bharat vision, aims to stabilise the domestic market and support small and medium enterprises.

Green Steel Push : The Government of India, through the Ministry of Steel, is advancing its commitment to sustainable steelmaking by partnering with leading global technology firms—BHP (Australia), SMS (Germany), Primetals (UK) and John Cockerill (Belgium)—alongside premier Indian institutions like IIT Bombay. These collaborations aim to accelerate innovations in carbon capture and low-emission steel production across the supply chain. To further support this transition, the Ministry has introduced a Green Steel Taxonomy to categorise low-emission steel products and launched a strategic roadmap, "Greening the Steel Sector in India," targeting net-zero emissions by 2070. Additionally, under the National Green Hydrogen Mission, seven pilot projects are underway to integrate hydrogen in steel manufacturing, including 100% hydrogen use in Direct Reduced Iron (DRI) and blast furnace modifications—marking significant steps towards decarbonising the steel industry.

Advancing Research and Development (R&D) for Sustainable Steel Innovation: The Ministry of Steel is advancing R&D to tackle industry issues like climate change and waste reduction. Of 35 completed projects, many have seen real-world application. In FY25, the Ministry of Steel invited R&D project proposals in a collaborative format from renowned academic institutions, research laboratories and steel companies, targeting specific thrust areas for financial support under the R&D Scheme. In response, 73 proposals were submitted by various stakeholders, of which 13 were approved for funding based on a thorough evaluation process.

Strengthening Import Oversight through SIMS 2.0:

Furthermore, the Steel Import Monitoring System (SIMS), first introduced in 2019, has been upgraded to SIMS 2.0 to enhance the monitoring of steel imports and improve data transparency. Equipped with API integration and advanced data validation features, SIMS 2.0 enables more informed policymaking, helps detect potential risk areas and supports the resilience of Indias domestic steel industry against sudden import spikes.

Jal Shakti Abhiyan: The Ministry of Jal Shakti launched Jal Shakti Abhiyan: Catch the Rain – 2025 across 148 districts, focusing on rainwater harvesting and groundwater recharge under the theme "Water Conservation through Community Participation." The campaign introduced Haryanas Jal Sanchay Yojana and the Water Resources Atlas, while recognizing grassroots efforts. Under Jal Jeevan Mission, rural tap water coverage rose from 3.23 crore (16.7%) households at the missions start to over 15.6crore (80.9 %) households by July 2025. This large-scale infrastructure push has significantly accelerated the demand for steel tubes and pipes, which are essential for the water distribution network. The continued expansion of tap water coverage is expected to sustain robust demand for galvanized and welded steel pipes used in laying water pipelines, pumping stations and storage systems across rural India.

National Mission for Clean Ganga (NMCG): In 2024, the National Mission for Clean Ganga completed 25 projects, taking the total to 303 completed and 488 sanctioned projects worth 39,730 crore. During the year, 39 new projects were approved, amounting to 2,056 crore. In sewerage infrastructure, 12 projects (305 MLD capacity) were sanctioned, and 16 projects (750 MLD capacity) were completed. So far, 203 sewerage projects have been approved in the Ganga Basin, targeting 6,255 MLD sewage treatment capacity and a 5,249 km sewer network.

Customs Duty Cut to Ease Steel Input Costs: To ease input cost pressures on domestic manufacturers, the government has reduced the Basic Customs Duty (BCD) on imports of Ferronickel and Molybdenum ores and concentrates—crucial inputs for steelmaking—from 2.5% to zero. In addition, duties on ferrous scrap have been adjusted to improve raw material affordability. These targeted revisions are designed to boost the competitiveness of local steel producers and align with a broader strategy focused on supporting industrial growth through efficient resource sourcing.

The PM-KUSUM Scheme: Launched in March 2019, the PM-KUSUM scheme is helping farmers make the shift to cleaner, more affordable irrigation by supporting the use of solar energy. Through subsidies covering up to 30–

In FY25, the Ministry of Steel invited R&D project proposals in a collaborative format from renowned academic institutions, research laboratories and steel companies, targeting specific thrust areas for financial support under the R&D Scheme.

50% of installation costs, the scheme enables farmers to set up standalone solar pumps or solarize existing grid-connected ones. This not only reduces their reliance on costly diesel but also improves energy access in rural areas and creates new income opportunities by allowing them to sell surplus power. By December 2024, over 6.1 lakh solar pumps had been installed (up from 3.3 lakh in 2021), 35 lakh grid-connected pumps were solarized and more than 4 lakh farmers had already reaped the benefits.

Source:https://www.pib.gov.in/PressReleasePage. aspx?PRID=2117302#:~:text=The%20Ministry%20of%20Road%20 Transport,other%20materials%20under%20environmental%20 regulations. https://steel.gov.in/sites/default/files/2025-05/Overview%20of%20 Steel%20sector%20March%2025%5B1%5D.pdf https://www.pib.gov.in/PressReleasePage.aspx?PRID=2123294 https://pmay-urban.gov.in/uploads/progress-pdfs/6874ea98eb92c-National.pdf https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146938 https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2147702 https://steel.gov.in/sites/default/files/2025-04/Monthly%20 Economic%20report%20January%202025_0.pdf https://steel.gov.in/sites/default/files/2025-04/ru%203342_1.pdf https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2098441

GLOBAL STEEL TUBES & PIPES INDUSTRY

The global steel pipes and tubes market was valued at USD 163.6 billion in 2024. It is projected to grow from USD 170.7 billion in 2025 to USD 250.3 billion by 2034, registering a CAGR of approximately 4.3% during the forecast period from 2025 to 2034. Asia Pacific dominated the market in 2024 with a share exceeding 75.6%. The industrys steady growth is driven by accelerating urbanization, infrastructure expansion in developing regions, a growing emphasis on sustainability and recycled materials and continuous advancements in manufacturing technologies.

The oil and gas sector was projected to dominate the steel tubes market in 2024 with a 46.5% share, driven by its extensive application in exploration, drilling and transportation processes. Steel tubes play a vital role in constructing pipelines, drilling rigs and other key infrastructure designed to endure challenging conditions such as corrosion, high pressure and extreme temperatures. Seamless steel tubes are especially in demand for their durability and effectiveness in high-stress applications like fluid transport and directional drilling. The growth of the oil and gas sector significantly boosts global steel tube demand, as these tubes are vital for drilling, transportation and infrastructure. According to the International Energy Agency (IEA), global oil demand is projected to rise by 1.1 million barrels per day in 2025, reaching 103.9 million barrels per day, further reinforcing the sectors reliance on steel tubing solutions. Meanwhile, the U.S. Energy Information Administration (EIA) expects refining capacity to expand by 2.6 to 4.9 million barrels per day between 2024 and 2028, mainly in Asia Pacific and the Middle East, further increasing the need for steel tube-based infrastructure.

Asia Pacific accounts for the largest share of the global steel tubes market at 75.6%, primarily due to rapid industrialization and urban growth in major economies such as China, India and Japan. The regions demand is further supported by robust activity across construction, automotive and oil and gas sectors. Growing investments in infrastructure—including transportation, urban development and energy—underscore the regions emphasis on manufacturing and industrial growth, driving continued demand for steel tubes.

Source:https://www.marketresearchfuture.com/reports/steel-pipes-tubes-market-28336

INDIAN STEEL TUBES & PIPES INDUSTRY

Indias steel tubes market was valued at USD 7.5 billion in 2024 and is projected to reach USD 8.2 billion by 2033, growing at a steady CAGR of 0.90%, according to IMARC Group. This growth reflects the countrys ongoing development across key sectors such as infrastructure, construction, automotive and oil and gas. The increasing need for reliable water and sewage systems is also contributing to demand. Backed by initiatives like

Steel tubes play a vital role in constructing pipelines, drilling rigs and other key infrastructure designed to endure challenging conditions such as corrosion, high pressure and extreme temperatures. Seamless steel tubes are especially in demand for their durability and effectiveness in high-stress applications like fluid transport and directional drilling.

"Make in India" and advancements in manufacturing technologies, the steel tubes industry continues to play a crucial role in supporting Indias industrial and economic progress.

The steel pipes market in India reached 13.56 Mt in 2024. According to the IMARC Group, the market is projected to grow to 27.76 Mt by 2033, registering a CAGR of 7.65% during the period 2025–2033. This steady growth is being fuelled by infrastructure development, the expansion of oil and gas projects, rising exports, supportive government initiatives, increasing demand for both seamless and welded pipes, and continuous advancements in manufacturing technologies and sustainability practices.

The expansion of Indias oil & gas and water pipeline networks is significantly boosting steel tube demand. Major projects like the Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) and the Pradhan Mantri Urja Ganga are driving the need for high-quality seamless and welded tubes. GAIL (Gas Authority of India Limited)s plans to increase LNG (liquefied natural gas) imports to 21 million tons annually by 2030 further support pipeline growth. Additionally, initiatives like City Gas Distribution (CGD) and the Jal Jeevan Mission are increasing steel tube usage in both energy and rural water supply systems, placing steel tubes at the heart of Indias infrastructure development.

Indias steel tube market is witnessing steady growth, fueled by infrastructure projects, urbanization and construction activity. Government programs like the Smart Cities Mission, Bharatmala and Pradhan Mantri Awas Yojana (PMAY) have boosted demand, especially in structural and high-rise applications. The approval of 12 industrial smart cities in August 2024, with 28,602 crore investment, added further momentum. With rising Foreign Direct Investment (FDI) in real estate and a preference for durable, cost-effective materials, steel tubes—valued for their strength, corrosion resistance and recyclability—have become a go-to choice, supported by advances like High-Frequency Induction Welding (HFIW) and galvanization.

Source:https://www.imarcgroup.com/india-steel-tubes-market https://www.imarcgroup.com/india-steel-pipes-market

RENEWABLE ENERGY

Renewable energy is at the forefront of Indias energy transition, offering sustainable, low-carbon solutions to meet the countrys growing power demand while addressing climate goals. Indias renewable energy sector reached a major milestone in FY25 by surpassing 200 GW of installed capacity, signaling its growing influence in global climate initiatives. As of March 31, 2025, Indias total renewable energy capacity reached 220.1 GW, marking a record annual increase of 29.5 GW—the highest ever in a single year. Solar energy led this growth, contributing 23.8 GW up from 15.0 GW in the previous year bringing cumulative solar capacity to 105.6 GW. Wind energy followed with 4.15 GW of new installations, pushing its total to 50.04 GW, while bioenergy and small hydro reached 11.5 GW and 5.1 GW respectively. A robust pipeline is underway, with 169.4 GW under implementation and 65.06 GW tendered as of April 2025. This includes innovative solutions like hybrid systems and round-the-clock power to enhance grid reliability. The Ministry of New and Renewable Energy (MNRE) remains central in driving these developments, deepening Indias commitment to clean energy transition.

Indias renewable energy sector is gaining strong momentum—it was valued at USD 23.9 billion in 2024 and is expected to more than double to USD 52.1 billion by 2033. This growth is being fueled by rapid innovation in solar and wind power, better energy storage solutions and a rising demand for cleaner, more sustainable energy. With nearly half of its power already coming from non-fossil sources, India is steadily moving toward its climate goals: 50% clean energy by 2030, a 45% cut in carbon intensity and net-zero emissions by 2070. Backed by supportive policies, global collaborations and increasing investments, the country is focusing on key priorities like expanding renewable capacity, building green hydrogen ecosystems, promoting electric mobility and scaling up green finance.

COMPANY OVERVIEW

Rama Steel Tubes Ltd. (hereafter referred to as ‘RSTL or ‘the Company) has been a pioneer and key player in the steel tubes and pipes industry since its establishment in 1974 by the late Shri Harbans Lal Bansal. The Company is led by his son, Mr. Naresh Kumar Bansal and grandson, Mr. Richi Bansal. The Company has a proven track record of operational excellence, cost efficiency, sustainable practices and high-quality steel tubes and pipes manufacturing. RSTL has completed more than 50 years of operations, reflecting its resilience and strong growth trajectory over the decades.

RSTL has a strong presence in the domestic market and operates across four continents, including the United Kingdom, the Middle East, Africa and South America. RSTL has expanded its global footprint through a subsidiary in the UAE and a step-down subsidiary in Nigeria. In FY25, Rama Steel Tubes Ltd. (RSTL) entered the renewable energy sector through a strategic partnership with Onix Renewable Ltd., participating in a 225 MW solar power project under the PM-KUSUM scheme. The project, located in Maharashtra, is being executed via a Special Purpose Vehicle—Onix IPP Pvt. Ltd.—in which RSTL holds a 10% equity stake. Backed by 25-year Power Purchase Agreements (PPAs) with the Maharashtra State Electricity Distribution Company

Limited (MSEDCL) at a fixed tariff, the venture marks RSTLs diversification into green energy. As part of this initiative, RSTL has also developed specialized steel structures and tracker tubes for Greenfield Solar Projects, showcasing its commitment to delivering high-performance, durable and reliable solutions for the solar sector. Moreover in FY25, RSTL has incorporated a wholly owned subsidiary, Rama Defence Private Limited, on August 31, 2024. This marks a strategic move by the Company to explore emerging opportunities in the defence sector.

Huge and Diverse Product Portfolio

RSTL offers a comprehensive portfolio of steel products, including Galvanised Iron (G.I.) pipes, Mild Steel (MS) pipes and Steel Tubular Poles (STP), all manufactured to meet international quality standards. Marketed under the globally recognised "TTT Rama" brand, these products are supported by rigorous quality control measures and the expertise of skilled professionals. The Company remains committed to improving performance by boosting sales, expanding its value-added product mix, promoting innovation through new product development and enhancing operational efficiency.

The Companys product line includes Mild Steel Electric Resistance Welded (ERW) black pipes with diameters from 15mm to 200mm, adhering to specifications such as IS: 1239, IS: 1161, IS: 3589, IS: 3601, IS: 2713 and IS: 4270. RSTL also produces G.I. pipes ranging from 15mm to 800mm Nominal Bore (NB), available in light, medium and heavy grades. These offerings cater to a diverse range of industries including automotive, infrastructure, irrigation and real estate. The Companys main products include:

Steel Tubes and Pipes:

RSTL offers a broad and well-diversified range of steel products that serve the needs of various industries, including infrastructure, construction, agriculture, automotive and renewable energy. Its offerings include Galvanised Iron (G.I.) pipes, Mild Steel (MS) pipes, Steel Tubular Poles (STP) and structural steel products—each designed and manufactured in line with international quality standards. These products are marketed under the globally recognised "TTT Rama" brand and are backed by stringent quality control systems and a skilled professional team.

The Company produces Mild Steel Electric Resistance Welded (ERW) black pipes in diameters ranging from 15mm to 200mm, complying with multiple Indian standards such as IS: 1239, 1161, 3589, 3601, 2713 and 4270. In the G.I. segment, it offers pipes from 15mm to 150mm Nominal Bore (NB) in light, medium and heavy grades, suitable for applications like water supply, deep tube wells, casing, fencing, gas transmission and agriculture. RSTL also supplies scaffolding pipes, pre-grooved pipes and swaged poles to meet diverse industry requirements.

Structural Steel Products:

In the structural steel segment, the Company manufactures square and rectangular hollow sections used extensively in sectors like furniture manufacturing, railings, cranes, storage racks, stairs, bus stops and vehicle bodies. Additionally, RSTL has built expertise in telecommunication and infrastructure solutions, including the design and fabrication of complex substation structures, radar towers and railway electrification systems. Its tower portfolio includes Legged Square Lattice Towers and Three-Legged Tubular Towers tailored to project needs. RSTLs product portfolio for solar projects includes specialised steel structures, single-axis trackers and plans to expand into dual-axis trackers, supporting Onix Renewables Greenfield Solar Projects with durable and efficient solutions.

Through continuous product innovation, a focus on operational efficiency and strategic diversification, the Company remains committed to strengthening its market presence and enhancing value for all stakeholders.

BUSINESS STRENGTHS Well Experienced Leadership: RSTL, as a prominent player in the Indian steel tubes and pipes industry, benefits from its strong legacy, extensive nationwide presence and long-standing customer relationships. The Companys competitive edge is further strengthened by the vast industry experience of its promoters, deep market insights, a well-established brand reputation and a diversified business model that covers various geographies and product segments, enabling it to effectively cater to a wide range of customer needs and market dynamics.

Optimised Manufacturing Facilities: The Company operates four technologically advanced manufacturing facilities strategically located in Sahibabad (U.P.), Khopoli (Maharashtra) and Anantapur (Andhra Pradesh), leveraging cutting-edge Japanese technology to efficiently serve both domestic and international markets. As of 31 March 2025, the Company had a total installed capacity of 294000 MTPA. This widespread geographic presence enables the Company to leverage local sourcing advantages and provide enhanced service to its customers. The strategic location of these facilities also contributes to lower transportation costs for finished goods. In FY25, RSTL recorded a production of 1,70,745 Mt, corresponding to a capacity utilisation rate of 58.00%. This marked a growth compared to FY24, when the company had achieved a lower utilisation rate of 50% with a total output of 1,44,095 Mt.

Wide International Presence: The Company has expanded its operations to over 16 countries, establishing a strong presence in regions such as the UAE and Africa. RSTL exports its products to a diverse range of countries, including the United Kingdom, United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Somalia, Ghana, Sudan, Kuwait, the Republic of the Congo, Yemen, Guyana, Germany, the United States, South Africa, Zambia and Malta, among others. The Company actively monitors global market trends to effectively respond to international demand and strengthen its global footprint.

Robust Clientele: The Company is committed to providing fully integrated solutions to its customers, managing entire projects from inception to completion. RSTL has earned a strong reputation in the steel and pipe industry through its superior product quality and reliable service, nurturing trust among a diverse and esteemed clientele. The Companys notable clients include Steel Authority of India Limited (SAIL), Gas Authority of India Limited (GAIL), Reliance Industries Limited (RIL), Airtel, Bharat Sanchar Nigam Limited (BSNL), Bombay Suburban Electric Supply (BSES) Rajdhani Power Limited, Gujarat Gas Limited, J&K Rural Electrification, Purvanchal Vidyut Vitran Nigam Limited, UP & Uttarakhand Peyjal Nigam, Larsen & Toubro Limited (L&T), Grandhi Mallikarjuna Rao (GMR), Delhi Land & Finance (DLF), TATA, ADANI, Ashok Leyland and Hindustan Petroleum Corporation Limited (HPCL) Bhatinda & Mangalore Refinery Project, among others.

Strong Tech-Driven Competence: RSTL places a strong emphasis on adopting advanced technologies to enhance its competitiveness and reinforce its market position. The Company consistently introduces innovative products and integrates modern technology into its operations, enabling cost optimisation, improved product quality and greater market leadership. RSTL is equipped with the latest global technology, state-of-the-art plant and machinery, including advanced testing equipment to ensure high-quality production standards. The Company has set itself apart by investing in a state-of-the-art high-speed tube mill, equipped with the latest technology from Japans leading manufacturer, M/s Kusakabe.

BUSINESS STRATEGIES Enhancing Production Capabilities for Future Demand: RSTL is committed to expanding its capacity to support sustainable long-term growth. The Company has outlined plans to upgrade its plants gradually year on year basis and incorporate modern technology to improve product quality. RSTL is currently modernising its Sahibabad plant in Uttar Pradesh to streamline operations and increase yield per tonne. In FY25, the Company has also decided to withdraw its proposed merger with Lepakshi Tubes Private Ltd. and has instead invested 10 crores to expand Lepakshi Tubes manufacturing capabilities for larger diameter products. This move aligns with the Companys strategy to broaden its product portfolio and capture a greater share in high-demand market segments.

INVESTMENTS IN SYNERGISTIC SECTORS AND DIVERSIFIED PARTNERSHIPS RSTL is actively pursuing a strategy of diversified investments and collaborative ventures to accelerate its long-term growth and sectoral presence. The Company is strengthening its foothold in the infrastructure, green energy and defence domains. Following is a brief snapshot of the Companys strategic investment journey in recent times:

During FY25, RSTL established a wholly owned subsidiary, Rama Defence Private Limited to explore and tap opportunities in this high potential industry and contribute to nation building.

During the year, RSTL established an associate company with 40% stake in the name of ORAM Green Energy Limited which marks a deliberate entry into the fast-evolving green energy sector, aligning business growth with sustainability priorities.

Through a 51% stake in Ashoka Infra Steel, acquired over an year back, the Company is deepening and widening its core products reach in the market through this strong market distribution company, especially in the western region.

RSTL acquired 24.81% stake in Bigwin Buildsys Coated Private Limited, a company engaged in business of green energy solutions, especially the solar structures. This stake acquisition naturally aligns with the Companys core business and provides for synergistic possibilities of scale.

RSTL also established another associate company of strategic importance in the field of green and renewable energy. ONIX IPP was established for the purpose of exploring further opportunities in the field of green energy or renewable energy.

These investments reflect a strategic approach to building a synergistic portfolio that supports integrated growth across aligned and future-ready sectors.

Strengthening Marketing and Distribution: RSTL has developed a strong distribution network comprising authorised dealers across North, South and West India. The Company maintains a presence in over 18 states and Union Territories through its extensive dealer network, serving customers in cities nationwide. RSTL had, as of 31 March 2025, established connections to most major Indian cities through more than 350 dealer points and offered a diverse range of over 1,400 SKUs. Moreover , RSTL also operates two wholly owned subsidiaries (WOS) in India to support its extensive distributor network across the country.

Advancing Infrastructure for Clean Energy and Government Partnerships: RSTL supports critical infrastructure development through a broad product range used in sectors such as construction, transportation, water supply and power distribution. The Company is foraying into the solar sector to leverage emerging opportunities driven by the global shift towards clean energy. RSTL anticipates a significant rise in demand for steel pipes within renewable energy applications. The Company sees strong momentum from key government initiatives, including the Pradhan Mantri Awas Yojana, Smart Cities Mission, National Highway Development and various rural electrification and sanitation programmes. RSTLs latest move aligns with the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), which promotes solar power generation on underutilized land and supports rural development. The Companys entry into the renewable energy space underscores its commitment to sustainability, responsible growth and long-term value creation.

Leveraging Strategic Investments for Integrated Growth: RSTL has adopted a forward-looking business strategy focused on strategic investments and diversified partnerships to strengthen its presence across complementary growth sectors. The Company holds a 51% stake in Ashoka Infra Steel, enhancing its position in the infrastructure and construction materials space. As part of its strategic expansion, the Board of RSTL approved the acquisition of a 24.81% stake in Bigwin Buildsys Coated Private Limited for 5.65 crore through a preferential issue of equity shares, subject to necessary approvals, positioning Bigwin as an associate Company during FY26. Moreover, As part of its strategic portfolio optimisation, RSTLs Board approved the exit from Pir Panchal Constructions

Private Limited-JV on the basis of audited financials of JV as on February 28,2025 which ceased to be a joint venture of the Company effective April 09, 2025. In addition, RSTL has completed the exit from its remaining 17.60 % equity stake in associate Company Hagar Mega Mart Private Limited (HMMPL) pursuant to participating in buyback of shares.

Significant Debt Reduction: RSTL has consistently reinforced its financial health through significant reductions in its bank loan exposure. During FY2025, the Company reduced its total debt (Short term plus long term borrowing) by 56.4 crores, bringing it down to 87.9 crores as of March 31, 2025. These efforts underscore RSTLs commitment to prudent financial management, improved capital efficiency and long-term value creation for its shareholders.

FINANCIAL OVERVIEW

RSTL demonstrated strong operational momentum in FY25, with sales volumes growing by 9.27% year-on-year to reach 194,212.53 Mt, up from 178,644.50 Mt in FY24. The Company attributed this growth to sustained demand across infrastructure, construction and industrial sectors, supported by a robust distribution network, an expanding product portfolio and a consistent market focus.

RSTL achieved a marginal increase in consolidated revenue from operations, which rose to 1,048.1 crores in FY25 from 1,046.5 crores in FY24. The Company maintained a stable financial position despite a moderation in profitability, reflecting its resilience in navigating dynamic market conditions.

RSTL reported an EBITDA of 46.4 crores in FY25, as compared to 64.4 crores in FY24. The Company recorded a Profit Before Tax (PBT) of 28.86 crores and a Profit After Tax (PAT) of 22.74 crores in FY25.

RSTLs Earnings Per Share (EPS) stood at 0.15 in FY25. The Company attributed the decline in basic EPS to an increase in the weighted average number of shares, which rose from 53.03 crore shares as of March 31, 2024, to 155.40 crore shares as of March 31, 2025, largely due to bonus issuances and fresh equity raised during the year.

The Company operates four technologically advanced manufacturing facilities strategically located in Sahibabad (U.P.), Khopoli (Maharashtra) and Anantapur (Andhra Pradesh), leveraging cutting-edge Japanese technology to efficiently serve both domestic and international markets.

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The Company reported a decline in the debtor turnover ratio to 4.6 in FY25, down from 4.7x in FY24. The Companys net worth increased to 364.3 crores as of March 31, 2025, compared to 335.2 crores, without NCI, in the previous year. RSTL proactively reduced its sanctioned loan limits by approximately 70% over the past 2 years to strengthen its balance sheet and improve financial stability. The Companys total debt declined by 39.13%, falling to 87.9 crores from 144.4 crores, resulting in an improvement in the debt-to-equity ratio to 0.2 from 0.4. RSTLs cash and cash equivalents stand to 5.5 crores from 17.4 crores. The Companys EBITDA margin remained to 4.36% in FY25 from 6.13% in FY24.

OUTLOOK

RSTL is poised for sustainable growth, with a clear focus on expanding its presence in core infrastructure sectors and entering specialised markets such as solar energy applications. The Company is advancing its product diversification strategy and scaling up manufacturing capabilities to support future demand. RSTL continues to strengthen its financial position by optimising its capital structure, including the divestment of non-core assets and significant reduction in bank loan exposure. The Company is also investing in sustainability-led initiatives and operational efficiency with an emphasis on serving government sector requirements and enhancing profitability. Looking ahead, RSTL remains committed to long-term value creation, guided by prudent financial management, focused capacity expansion and continued efforts to deepen its market footprint across high-growth sectors.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company firmly believes that social and economic development is essential for building a sustainable society and remains committed to making meaningful contributions in this area. RSTL has established a well-defined CSR policy that guides its efforts in promoting economic, environmental and social well-being within the communities it serves. The Companys thoughtfully designed CSR policy reflects its core values and dedication to creating a positive impact, while remaining aligned with its overall business objectives.

The Company has entrusted the CSR Committee with the responsibility of formulating and recommending its CSR Policy to the Board. RSTL ensures that the

Committee actively oversees key initiatives such as waste management, sanitation, skill-based education, uplifting the underprivileged, eradicating hunger and empowering women and youth. The Company also supports broader efforts, including national missions, disaster relief and environmental sustainability. In FY25, RSTL invested 45.22 lakhs towards initiatives aimed at eradicating hunger, providing food to the poor, supporting education, care for underprivileged children and supporting sports, domestically and internationally.

MITIGATING RISKS AND NAVIGATING THREATS

Macro-Economic Risk: The Company recognises that demand in the steel sector is closely linked to steel-consuming industries such as oil and gas, construction, capital goods, consumer durables and automobiles. RSTL understands that any economic downturn in these sectors can have a significant adverse impact on the overall demand for its steel products.

Mitigation Strategy: RSTL has strategically diversified its geographical footprint and strengthened its brand equity to reduce its vulnerability to economic cycles. The Company has built a robust business model by offering a wide portfolio of high-quality products catering to various end-user sectors. RSTLs resilience is reflected in the strong volume growth it has achieved over the past few years, despite challenges posed by the global economic slowdown.

Demand-Supply Mismatch Risk: The Company acknowledges that in situations of oversupply or overcapacity, there is a risk of increased low-cost steel imports into India. RSTL recognises that such an influx could lead to a decline in steel prices and negatively impact domestic manufacturers, including the Company.

Mitigation Strategy: The Company leverages its extensive industry experience, global reach, diverse client base and strong customer relationships—complemented by technological investments and skilled manpower—to stay aligned with evolving market trends. RSTL maintains optimal production capacity by closely tracking global steel demand and market dynamics, thereby minimising risks associated with demand-supply imbalances.

Rivalry Risk: The Company operates in a steel industry marked by attractive growth prospects, which draws intense competition from both established players and new entrants. It acknowledges that shifts in marketing strategies or the adoption of advanced technologies by competitors could further intensify competitive pressures on the Company.

Mitigation Strategy: The Company capitalises on its deep market understanding, long-standing customer relationships and advanced technology to manufacture high-quality, value-added products. RSTL maintains its competitive edge through a strong emphasis on marketing and brand equity. The Company also prioritises efficient and profitable manufacturing operations, while consistently investing in capacity expansion and upgrading its strategically located manufacturing facilities to meet the evolving needs of its customers.

The Companys total debt declined by 39.13%, falling to 87.9 crores from 144.4 crores, resulting in an improvement in the debt-to-equity ratio to 0.2 from 0.4. RSTLs cash and cash equivalents stand to 5.5 crores from 17.4 crores.

Raw Material Price Risk: Raw materials constitute a major cost component for the Company and any fluctuation in their prices can significantly affect its earnings. Moreover, the limited availability or shortage of essential raw materials may disrupt the Companys production processes.

Mitigation Strategy: RSTL actively monitors fluctuations in raw material prices and adapts its strategy accordingly, implementing corrective measures to mitigate input-related risks. The Company procures raw materials from multiple vendors across diverse locations to reduce supply chain vulnerabilities. It also maintains buffer inventories, enters into long-term agreements with suppliers and continuously tracks stock levels in line with evolving demand-supply conditions.

Compliance Risk: The global steel industry is highly regulated and intensely competitive. The Company is required to comply with all relevant regulations and any failure to meet existing or newly introduced regulatory requirements could disrupt RSTLs normal business operations.

Mitigation Strategy: The Company proactively monitors regulatory developments to ensure strict adherence to all applicable laws and statutes. It promptly implements required changes to align with new or amended regulations. Furthermore, the Company invests in automated systems and employee training to strengthen its compliance framework.

Currency Risk: The Company faces foreign currency risk arising from its international trade in raw materials, finished goods and other foreign currency transactions. Fluctuations in exchange rates can have an impact on the Companys earnings.

Mitigation Strategy: RSTL has implemented a robust foreign exchange risk management system to closely monitor and analyse currency fluctuations. To mitigate currency-related risks, the Company hedges its forex exposures and employs various derivative financial instruments, such as forward contracts, to further limit its exposure to foreign exchange volatility.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

The Company prioritises the health and safety of its

RSTL has established a well-defined CSR policy that guides its efforts in promoting economic, environmental and social well-being within the communities it serves. The Companys thoughtfully designed CSR policy reflects its core values and dedication to creating a positive impact, while remaining aligned with its overall business objectives.

employees and the environment in which it operates. RSTL ensures a clean, hygienic and safe workplace by providingemployeeswithappropriatetrainingtoperform their duties safely. The Company strictly complies with all applicable Environment, Health and Safety (EHS) regulations and has dedicated teams to monitor safety across its production facilities. RSTL maintains open communication to promote a hazard-free work environment and integrates its EHS management with systems like Enterprise Resource Planning (ERP) for comprehensive sustainability oversight. The Company regularly reviews and updates its EHS policies to meet the highest industry standards. As part of its Environmental, Social and Governance (ESG) initiatives, RSTL plans to enhance the installation of solar panels across its facilities in the future, including expanding the current infrastructure at its Mumbai (Khopoli) plant and at its Lepakshi plant.

QUALITY

RSTL is committed to utilising its robust Quality Management System to deliver consistent value to its customers and stakeholders through high-quality products. The Company aims to meet the highest industry standards by implementing comprehensive quality checks and testing procedures across the entire manufacturing process—from raw material procurement to the distribution of finished goods. RSTL has automated its production facilities with centralised control systems to ensure precision and incorporate the latest technological advancements. The Company maintains Total Quality Control (TQC) throughout production by strictly adhering to defined operational parameters and safety protocols. All systems and procedural quality standards are rigorously monitored and enforced to uphold the highest levels of safety and product excellence.

INTERNAL CONTROL SYSTEMS

RSTL has established a comprehensive internal control system aimed at safeguarding its assets and ensuring operational efficiency. The control framework is tailored to the nature, scale and complexity of the Companys operations, facilitating strict regulatory compliance and accurate transaction documentation. The Company has implemented strong internal financial controls to ensure all transactions are properly authorised, recorded and reported. Regular internal audits and reviews are carried out to uphold operational integrity and reinforce the effectiveness of the control environment.

The Audit Committee is tasked with establishing and maintaining effective internal financial controls to ensure smooth and efficient operations. The Committee routinely reviews concerns and material weaknesses identified by the Internal and Statutory Auditors and takes timely and appropriate corrective measures to address and mitigate potential risks.

HUMAN RESOURCES

RSTL recognises its human resources as a critical asset and values the dedication and contributions of its employees. Their commitment has been integral to the Companys growth and its strong market position. RSTL is devoted to promoting a safe, productive and forward-looking workplace culture, with executive leadership playing a key role in nurturing a positive work environment. The Companys policies are designed to position it as an employer of choice by promoting inclusivity, building a robust talent pipeline and strengthening organisational capabilities.

RSTLs HR policies are structured to nurture professional growth while aligning individual aspirations with the Companys overall objectives. To support this, the Company implements a range of initiatives, including personalised training, skill development programmes, promotion of constructive employee-management relations and assurance of equal opportunities for all. Over time, RSTL has cultivated a diverse and inclusive workplace by prioritising leadership development and upholding a culture of respect. Its leadership development framework is built around key competencies essential for effective leadership. As of

31 March 2025, the Company employed over 250 plus individuals, including both contractual workers and permanent staff.

CAUTIONARY STATEMENT

This Statement includes forward-looking statements regarding the Companys business, financial performance, capabilities and future prospects. Any statements concerning plans, intentions, expectations, beliefs, estimates, or predictions—along with similar expressions related to future events—are considered forward-looking in nature. These statements should be interpreted in light of various risks and uncertainties that may cause actual results to differ materially from those presented in the Directors Report and the Management Discussion and Analysis Report. Such risks include, but are not limited to, fluctuations in global oil and steel prices, technological changes and shifts in domestic economic or political conditions. Actual outcomes may vary significantly from those expressed or implied. Key factors that could influence the Companys operations include economic conditions affecting supply, demand and pricing in both domestic and international markets, as well as changes in government regulations, tax laws and other applicable statutes. The Company does not undertake any obligation to update the information contained in these reports.