OVERVIEW OF THE ECONOMY
India, the worlds fourth largest economy, has emerged as the fastest growing major economy and is on track to become the worlds third-largest economy with a projected GDP of $7.3 trillion by 2030. Indias Gross Domestic Product (GDP) gained strength as it picked up pace sequentially to a four-quarter high of 7.4% in January-March on the back of firm industrial growth in manufacturing, construction and mining sectors even as consumption demand slowed down. The full-year growth rate, however, is estimated to have slowed to a four- year low of 6.5% for financial year 2024-25 , according to National Statistical Office (NSO). Driven by robust domestic demand, a dynamic demographic profile and sustained economic reforms, India is asserting its rising influence in global trade, investment, and innovation.
At the core of this transformation is the vision of Aatmanirbhar Bharat, a movement that promotes innovation, entrepreneurship, and technological sovereignty. Under Prime Minister leadership, strategic initiatives like the Production Linked Incentive (PLI) schemes, revitalisation of MSMEs, and the expansion of digital infrastructure have laid the foundation for a high- growth and high-opportunity economy.
Over the past decade, India has undergone a profound economic transformation rooted in structural reforms, visionary policymaking, and unwavering political will. From achieving historic GDP growth and record exports to revolutionising digital payments and empowering millions through financial inclusion, the country has laid the foundation for a resilient, equitable, and future-ready economy. With robust FDI inflows, expanding trade and innovation-driven sectors leading the charge, India is no longer a passive participant in the global economy, it is a key architect of its future. As the country moves confidently toward its goal of becoming a top three economic power, the momentum of the last eleven years signals that Indias economic rise is not just a momentit is a movement. The forecast for Indias real GDP growth in Financial Year 2025-26 is around 6.2%.
INDUSTRY STRUCTURE AND DEVELOPMENT
Overall fertilizers production has increased by 2.62% during financial year 2024-25 as against financial year
2023- 24 due to increase in production of NPK & SSP. Production of urea has decreased by 2.44 % during the financial year 2024-25 as against 2023-24. Production of DAP has decreased by 12.19% during the financial year
2024- 25 as against 2023-24. NPK production increased by 18.68% during financial year 2024-25 as against financial year 2023-24. SSP production has increased by 18.27% during the financial year 2024-25 as against financial year 2023-24.
Imports have decreased by 9.42 % due to the decrease in Urea & DAP . Indias fertiliser import dynamics experienced notable shifts, marked by a discernible decline of 19.81% in Urea & 17.93% in DAP imports compared to the preceding year. Conversely, MOP surged with an impressive growth rate of 23.42%. This trend seamlessly aligns with the governments vision under the Atma Nirbhar Bharat initiative, emphasizing reduced dependence on imports and the promotion of indigenous alternatives.
Indias fertiliser industry is thriving, not just marking increases in production and sales, but serving as a testament to the nations steadfast dedication to bolstering agriculture, meeting growing demands, and nurturing a future of prosperous farms.
Sales have increased by 8.69 % due to the increase in Urea, MOP, NPK & SSP. India experienced a notable growth in sales across key fertilizers, with Urea, MOP, NPK & SSP boasting impressive increases of 8.37%, 33.89%, 28.37% and 8.46%, respectively, compared to the previous year. Sales of DAP has decreased by 14.15% as compared to previous year.
Government of India has made a budgetary allocation of fertilizer subsidy of 167,887 crore for 2025-26 inclusive of 11,600 crore under Oil Industry Development Fund. Budget for urea subsidy is 118,860 crore which is lower by 115 crore than the revised estimate for 2024-25. Similarly, subsidy allocated for P&K fertilizers at 49,000 crore, have also been reduced by 3,310 crore. The reason behind this reduction compared to revised estimates for 2024-25 may be due to expectation of downward trend in international prices of fertilizer related commodities. However, adequacy of allocation will depend on trends on the international prices of energy, fertilizers and raw materials during the year. To improve soil heath, subsidy allocation on promotion of organic fertilizers for 2025-26 is 150 crore. The Budget 2025-26 focused on agricultural development. The adequacy of fertilizer subsidies will depend on external factors, particularly the availability and prices of raw materials/ intermediates and finished products in the international market.
The Government of India (GoI) has revised the nutrient- based subsidy (NBS) rates for kharif FY2026. There has been an increase in subsidy of phosphorus to Rs 43,600/ MT from Rs 30,800/MT, while that of sulphur has also been escalated. This is expected to improve the contribution margins of diammonium phosphate (DAP) as well as other NPK (nitrogen phosphorus potassium) grades.
Muriate of potash (MOP) continues to be profit - making . The MOP continues to remain profit - making at current retail prices and subsidy levels .
Pooled gas prices remain largely steady. Gas costs remain a pass-through for urea players. Since pooled gas prices
have remained stable, the profitability of urea players is
expected to remain steady.
STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS
Strengths
i) Your Companys strength lies in its skilled manpower, high Brand Equity of its products such as Microla, Biola, Sujala & Vipula and diversified product portfolio of fertilizers and chemicals.
ii) The wide reach of marketing network ensures that your Company can take its products to the farthest corners of the country.
iii) Increased usage of digital technology to reach-out to farmers through Mobile Apps, Facebook pages, Twitter handle, Instagram handle and YouTube Channel under the name of "RCF Kisan Manch".
iv) The Farmers Training Institutes at Thal and Nagpur are helping in a big way to educate farmers on latest farming techniques. Also Company has been operating toll free help line number called "Kisan Care" through which farmers can approach agriculture experts and get their queries addressed.
v) Larger farmer reach through various farm extension activities like field Demonstration, Sheti-patrika, celebrating soil testing days etc.
vi) Your Company has a wide portfolio of Industrial chemical products which have applications across several sectors like pharmaceuticals, dyes etc.
vii) The well maintained plants and equipments ensure efficient production.
viii) Continuous technology upgradation, revamping, modernization and implementation of energy & production improvement schemes in the plants.
ix) Well established infrastructure and R&D facility.
Weaknesses
i) The Plants have been in operation for a very long time and need significant investment for upkeep and upgradation.
ii) As the ultimate customers of the Company are farmers, agro-climatic conditions have a large effect on the performance of the Company.
iii) Raw materials such as Rock Phosphate, MAP, DAP and Muriate of Potash (MOP) etc. required in the manufacturing of the complex fertilizers, have to be imported. Their procurement cost is subject to high volatility in global raw material prices and variation in the foreign currency exchange rates affecting the profitability of the Company.
iv) Volatile Natural gas prices for non-Urea operations are impacting bottom line of the Company.
v) Reduction in supply of Domestic gas leads to increase in consumption of imported RLNG at higher cost.
Opportunities
i) Severalopportunities exist overseas, for Collaborations / Diversification in the field of manufacturing and mining of raw materials as well as fertilizers thereby presenting an opportunity for marketing of variety of products.
ii) Huge demand and import dependency in case of NPK fertilizers in the Country provides an opportunity to Company for expanding its NPK fertilizer base.
iii) Alternate feedstock such as Coal gives an opportunity for undertaking Fertilizer Projects in other parts of the country closer to coal mines based on latest coal gasification technology.
iv) Experienced and Skilled Manpower of your Company has been in demand for rendering O&M services in India and abroad. In view of your Companys training facilities, as well as the available skilled Engineers and Technicians, your Company is in a position to impart training to many foreign and Indian Companies.
v) Energy and environment improvement projects planned will give positive impact on the profitability and sustainability of your Company.
All these opportunities would enable your Company to improve profitability in the coming years.
Threats
i) Manufacturing and marketing of Fertilizers is the core business of your Company. In recent years, there has been high volatility in the prices of raw material resulting in an adverse impact on production and marketing plans. The profitability is susceptible to the input costs of major raw materials, such as Rock Phosphate, Sulphur, DAP, MOP, MAP etc.
ii) Production of Urea, Complex Fertilizers and chemicals is dependent on the availability of feedstock gas and its economic pricing.
iii) The industrial chemicals business is also exposed to cut-throat global market competition.
OUTLOOK
Fertilizers Sales volumes are expected to grow 1-3% YoY in FY2026, in line with long-term trends. Finished fertiliser prices, as well as associated raw materials, have largely remained steady . However, of late, some of the raw materials and finished fertilisers (especially DAP) have witnessed some price uptrends.
The profitability was improved in FY2025, largely driven by healthy contributions for some grades of NPKs. For FY2026, the profitability is expected to improve from FY2025 levels with hike in NBS rates. For the urea segment, profitability is likely to remain steady amid stable gas prices.
The anticipates subsidy budget for FY2026 to minorly trail the requirements and expects the GoI to release funds in a timely manner, thereby not allowing these levels to escalate materially for a sustained period. Further, GoI to make timely additional allocations to meet the shortfall.
RISK AND CONCERNS
The major risks and concerns of your Company are as under:
1. Imbalanced use of fertilizers
2. Skewed pattern of fertilizer use
3. Inadequate use of secondary and micro nutrients
4. Deterioration in soil health
5. Decline in fertilizer use efficiency
6. Higher dependence on subsidy. Delay in receipt of subsidy leads to higher interest cost.
7. Low operating margin due to tight regulations.
8. Strict Energy norms for all the plants under New Urea Policy (NUP 2015).
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has a well-defined Internal Control System that is adequate and commensurate with the size and nature of its business comprising Internal Auditors which conducts internal audit of various operational and financial matters on on-going basis. The Technical function of Internal Audit is conducted through inhouse technical personnel. The Non-technical function of Internal audit is now outsourced for 3 years i.e. FY 2023-24, 2024-25 and 2025-26 and the entire audit area of RCF is divided between two Audit firms of Chartered Accountants : 1) M/s. Keshri & Associates & 2) M/s. AMAA & Associates.
Internal Audit Department is headed by official having wide experience in IT field with good administration and interpersonal skill in the rank of Dy. General Manager having adequate number of financial and technical personnel. The recommendation and observations of the Internal Auditors are reviewed regularly by the Audit Committee constituted by the Board of Directors. As required by the Companies Act, 2013, the Audit Committee has formulated the Scope, Functioning, Periodicity and Methodology for conducting the Internal Audit and informed to the Board of Directors. The adequacy and operational effectiveness of Internal Financial Controls
over Financial Reporting has been reviewed by the Audit Committee. The performance of the Company is regularly monitored by the Board of Directors.
The Company has an effective budgetary control mechanism in place to take care of the detailed capex and operational budget. Appropriate monitoring mechanism to compare the actual performance with the budget ensures that necessary review is periodically undertaken.
SEGMENT - WISE PERFORMANCE
The segment wise performance of the Company has been as under:
Fertilizer:
Your Company produces fertilizers such as Urea (Nitrogenous Fertilizer) at both Trombay and Thal Units, and 15:15:15 (NPK Fertilizer), Biola (Bio fertilizers), Microla (micronutrient fertilizer) and Sujala (100% water soluble fertilizer) etc. at its Trombay unit.
During the year, your Company has produced 20.65 LMT of Urea compared to 21.77 LMT produced during the previous year. Your Company has also produced 6.04 LMT of Suphala as compared to 5.77 LMT produced during the previous year. In terms of Nutrients, your Company has produced 10.41 LMT of "N", 0.91 LMT of "P2O5" and 0.91 LMT of "K2O" as compared to 10.88 LMT of "N", 0.87 LMT of "P2O5" and 0.87 LMT of "K2O"respectively during the previous year.
Industrial Products
Your Company produces industrial chemicals at its both units. During the year, your Company produced approx.4.53 lakh MT of various major industrial chemical products as against approx. 5.08 lakh MT during the previous year.
Your Company produces, amongst others, Ammonium Nitrate Melt, Ammonia, Ammonium Bicarbonate, Dilute Nitric Acid 58%, Conc. Nitric Acid 98%, Strong Nitric Acid,( 72% & 68%), WSA, Sulphuric Acid, Argon, Nitrogen, MMA, Dimethyl Acetamide, TMA, Refrigerant Ammonia, Water, Methtl formate etc.
PRICING POLICY Urea:
In case of urea, the farm-gate price is notified by the Government from time to time, so also the dealers margins are indicated. The concessions to the units are given under various policies from time to time. Effective from 1st June, 2015, Urea is governed by New Urea Policy 2015 (NUP 2015) under which units are divided into three groups based on preset energy norms. As per NUP 2015, energy norms have been tightened focusing on energy reduction being achieved by Urea units and further tightened from 1st April, 2018 in respect of Thal unit and from 1st October, 2020 in respect of Trombay Unit for production beyond the Re-assessed capacity (RAC) i.e.
100% of capacity, the unit will be entitled for the respective variable cost and uniform Per MT incentive equal to the lowest of Per MT fixed cost of all the indigenous Urea units subject to maximum of import parity price (IPP) plus weighted average of other incidental charges which the Government incurs on imported urea.
To address the issue relating to availability and pricing of gas for Urea sector, Government of India has announced Pooling of Gas in Fertilizer (Urea) Sector, effective from 1st June, 2015 wherein all Urea manufacturers are entitled to gas for Urea production at the weighted averaged pooled price of Domestic gas and Imported RLNG. This has encouraged Urea units to operate at full capacity during the year in sync with the Government policy of "Make of India".
P&K fertilizers:
P&K fertilizers are covered under Nutrient Based Subsidy (NBS) scheme. Under the NBS, the subsidy rates for nutrients N, P K and S are notified by the Government on an annual basis. Selling prices are determined by the Company depending on costs of production, seasonal conditions, demand in field, competitors pricing, etc. In addition to NBS, units are also entitled for compensation towards freight expenses based on uniform freight policy.
Direct Benefit Subsidy (DBT):
Effective from February, 2018, settlement of subsidy under DBT has been rolled out on PAN India basis. DBT based subsidy is certainly contributing to rationalisation of subsidy bill of Government of India and also enable targeted disbursement of subsidy. However, since availability of stock all over the year needs to be ensured, this is straining the working capital of fertilizer companies as erstwhile they were being compensated based on receipt dispatches. Further DBT subsidy settlement has been delayed due to exhaustion of Government Budget allocated towards Fertilizer Subsidy leading to higher Working Capital requirement and increased finance costs.
Impact of Government policies on IPD marketing
Government has liberalized import of chemicals to meet the ever increasing consumption level of chemicals in almost all sectors of the economy. International manufacturers are having huge production capacities thus benefiting from the economies of scale, making available their products at a cheaper rate compared to domestic manufacturers which has put strain on producing products like Methanol, DMAc, DMF, Formic Acid, Sodium Nitrate/Nitrite. As a result, our plants like Methanol, DMAc, DMF, Formic Acid & Sodium Nitrate/ Nitrite are shut down due to unviability since long. Cheaper imports & our high cost of production has made Methanol, DMF, DMAc, Formic Acid, Sodium Nitrite/ Nitrate difficult to run.
DISCUSSON ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Review of the financial performance
During the year, your Company achieved Revenue from Operations of 16933.64 crore as against 16981.31 crore in previous year (PY). Profit Before Tax (PBT) during the year, stood at 327.50 crore as against 303.63 Crore in the PY. This improvement was primarily due to better margins of Industrial products and Complex Fertilizers. Further during year profitability was adversely impacted due to losses incurred on DAP imports, which were undertaken as per the directives of the Department of Fertilizers (DoF) and sold at a capped MRP. Despite additional compensation of 3,500 PMT and policy announcements aimed at mitigating adverse import price variations, margins remained under pressure. Further, under-recoveries continue to persist, aggravating the overall impact. Profit After Tax (PAT) stood at 241.63 crore as against 227.74 Crore.
Your Company achieved fertilizer sales volume of 36.76 lakh MT during 2024-25 as compared to 36.01 lakh MT during the previous year. The Total sale of manufactured fertilizers during 2024-25 was 27.11 lakh MT as against 27.17 lakh MT during the previous year. Sales of fertilizer products registered increase of 2% over previous year.
Your Company produced 26.95 lakh MT of fertilizers ( 20.65 lakh MT of Urea, 0.26 lakh MT of Sulphur Coated Urea & 6.04 lakh MT of Suphala 15:15:15) during the
year as against 27.58 lakh MT of ( 21.77 lakh MT of Urea, 0.04 lakh MT of Sulphur Coated Urea & 5.77 lakh MT of Suphala 15:15:15) produced during the previous year.
Energy Consumption
The energy consumption achieved during the year ended March 31, 2025 as compared to the previous year ending March 31, 2024 is given below:
Gcal/Mt
Plant |
For the year 2024-25 | For the year 2023-24 |
Ammonia Trombay-V |
8.553 | 8.613 |
Ammonia Thal |
8.463 | 8.292 |
Urea Thal |
5.896 | 5.766 |
Urea Trombay |
6.495 | 6.501 |
Energy at Thal Unit was higher as compared to previous year due to unforeseen breakdown of rotating equipment.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS
TRAINING AND DEVELOPMENT
Human Resource Development (HRD) at RCF focuses on building a Learning Ethos of Proficient Human Capital for attaining Organizational Excellence which harness a Learning Culture among employees for their Growth & Well-being.
It adopts innovative Learning & Development techniques aligned to business objective for enhancing employee competencies, skills sets, and engagement & empowering them to achieve excellence. HRD at RCF focuses on development of Functional, Managerial and Behavioural Competencies of employees along with expertise sharing for other organizational and institutional progression.
Continuous grooming of employees provides them with empowerment and motivation to achieve excellence. Effective training and development activities at RCF helps achieve ; Organizational Goals, Increase Productivity, Motivate Employees, Maintain Smooth Team integration, Enhance Workforce empowerment, Employee Retention & improve overall organizational culture.
Human Resource Development (HRD) in your Company focuses on innovative Learning & Development techniques aligned to business objectives.
During the year 2024-25, in all 203 internal training programs were conducted as per the Annual Training Calendar with 3089 beneficiaries of these programmes. In addition, 257 employees attended 127 external training programs on specialised subjects.
The Strategic Role of HRD
A) To Build & Strengthen a Value Based Learning
Culture Organisation
Few programmes conducted with this objective are:
Yoga Day Celebrations which included practical training along with meditation techniques a step towards spirituality and sharing the importance in day to day working.
RCF observed the International Day of Persons with Disabilities by organizing a dedicated session centred on the global theme: "Amplifying the Leadership of Persons with Disabilities for an Inclusive and Sustainable Future." This meaningful event was specially conducted for our (PWD) employees, providing a platform to recognize their contributions, inspire leadership, and foster inclusion within the organization.
Vigilance Awareness Week celebration included a Hybrid session for employees on "Awakened on Cyber Security".
International Womens Day was celebrated with a series of co-curricular activities being organized for women employees. Two skits were performed on the occasion of Womens Day on Womens financial empowerment and Eve Teasing at Thal unit. At Trombay Unit, The celebration was graced by ACP Dr. Deepali Dhate, who delivered a keynote address that left a lasting impact on all attendees. This was followed by two significant wellness sessions, a Tuberculosis (TB) awareness session and a sound healing session. The energy
of the event was kept high throughout by Mr. Emcee Fabian, who conducted a series of fun games and interactive activities. The celebration ended with cultural activities by the women employee and a lucky draw.
International Mens Day was celebrated at RCF
for promoting gender equality in the workplace. Your Company believes that gender equality is not just an aspiration, but a lived reality. A world where bias, stereotypes, and discrimination based on gen. der are eradicated. An online Session on "Positive Masculinity: support
positive male role models and encourage boys and men to express their emotions and vulnerabilities" was conducted by Arun Naik, a renowned Trainer and Consultant Psychologist from IPH. Essay, Slogan & Poster making competitions were also conducted declared during the online session.
"Swachhta Hi Seva" campaign, a campaign promoting cleanliness and sanitation, was actively celebrated within RCF. CMDC Department organized an online session on "Health & Hygiene" for RCF employees as part of the "Swachhta Hi Seva" campaign. The campaign aimed to foster a clean and sustainable work environment and promote the spirit of Swachh Bharat.
B) Learning and Development strategies for different positions of the workforce
Every position in the organisation is of immense importance. We execute learning intiatives based on the position.
Management Development Program for new
Managers to build in traits to handle new challenges.
Leadership Development Program for
employees who have taken Head of Department postions (Chief Managers) to perform leadership roles.
Personal Effectiveness and Productivity for the Medical Team.
Personal Effectiveness for various level of officers.
C) Develop People Capabilities
RCF believes in on-going investment in its Human capital by supplementing with new learning.
Specialized Programmes
- Awareness on Cyber Securty - Session addressed the common cyber threats and attacks that an organization/individual may face and the preventive measures that can be taken for safeguarding. Cybersecurity is critical because
it helps to protect organizations and individuals from cyber attacks. Cybersecurity can help to prevent data breaches, identity theft, and other types of cybercrime.
- A comprehensive Training Program on Rosters and Reservation Policies was conducted for the representatives of SC/ST and OBC Associations, along with HR personnel, with the aim of raising awareness and promoting a deeper understanding of the reservation framework..
- QC & LQC - Tools & techniques.
- Problem solving by using QC- Tools & techniques.
- As part of our knowledge-sharing initiative, the HRD department has organized a Short-Term Training Program for engineering students, offering practical, hands-on training in ERP systems. Additionally, we provided specialized ERP training for HR students pursuing their Masters in Management Studies, equipping them with the skills to leverage ERP tools effectively from the very beginning of their careers in the corporate world.
Cross-functional Learning opportunity: It
improves communication and transparency within the organization as employees are aware and engaged. It leverages the diverse skills and specialized knowledge of each team member to brainstorm better ideas, solve difficult problems, and achieve better outcomes in an organization.
- "Finance for Non-Finance" is a training program typically tailored for professionals in departments like operations, HR, marketing, sales, IT, Production and others who need to understand how financial aspects affect their roles and decisions.
- Treasury, Trade Finance and Forex - various sessions related to finance related issues for Fiance Team.
- A specialized Contract Management and Vigilance Awareness Program was organized for RCF employees focusing on key aspects of contract lifecycle management-including planning, execution, monitoring, and compliance-while also emphasizing the critical role of vigilance in preventing fraud, corruption, and procedural lapses.
D) Implementation of On-Boarding journey for New
Hires to align with company culture
Welllness Program: Mental Health & Financial Wellness for the new hires
Soft Skills Inputs on Self- Awareness and Behavioural and Managerial inputs.
1
Induction training including organisational, Functional inputs and plant viisit for new joiners in Finance discipline and Marketing discipline officers.
Basic SAP Module Awareness
Mentor Mentee Programmes
Mentoring initiative helps the new joiners with the initial teething problem, settling in their work area and get accustomed to the organization culture. The Mentorship Program is monitored for a period of one year with compulsory meeting of the Mentor and Mentee on quarterly basis (i.e. 4 meetings in a year) with an action plan being put down by the Mentor for the Mentee growth and development, in consultation with the Mentors HOD.
The Mentors and Mentees are trained before the
Mentoring process begins.
- Training program was conducted to raise awareness about POSH (Prevention of Sexual Harassment).
E) Motivate and Engage Employees
Engage employees by providing them with
opportunities to learn and develop new competencies.
Motivational Talk series for employees & their family members.
To bring a positive mind-set among all employees and their family members, inspirational talks, on success mantra, Mental & Health Well-being sessions are organised by inviting eminent speakers. Motivational talk on Emotional Intelligence for success by TED-X Speaker, Mr. Jhankar Gadkari and Corporate Kirtan by Mr. Sameer Limaye were organized.
Finanancial Planning Programme: Retirement
Planning program for employees and their spouse help them in the transtion from one phase of life to another with positive mindset. Financial Planning for superannuating employees provides them diretion to invest in proper manner along with interaction with various Annuity Service Providers for best investments.
HRD Aapke Dwar - Connect With employees
Learning at their doorstep which is time effective & cost effective without disturbance to their work schedules are conducted.
Technical product presentations (3 Nos.) in collaboration with external vendors were also organized for our employees to enrich in latest technologies. Total 69 employees have participated in these 3 training programs.
F) Expertise sharing for other organization:
Expertise sharing for other organizational and institutional progression along with Knowledge Exchange with Academic Institutes .
Internship Training & On-the Job training - Students are provided exposure to various function which is a requirement of their academic curriculum.
ERP Workshop on Material Module, Production Planning and Sales & Distribution module for Management Students.
G) On-Line/ E- Learning Courses
To provide the necessary learning by the experts, cost saving online courses are organised which are faster and effective mode to reach our employees:
General Instructions on Procurement for Marketing Team
Cyber Security Awareness for Marketing Team
EPS Awareness Session
New/Old Tax Regime Awareness Session
RCF CDA Rules
H) Digital Skilling : To enable a future-ready digital workforce:
- SAP Plant Maintenance Module (Advanced
& Basic): Incudes inspection, notifications,
corrective and preventive maintenance to maintain an ideal technical system.
- Computer Awareness program for employees
- Quality Circle 12 steps for Power Point Presentation to prepare effective presentations.
- SAP Materials Management, SAP Finance, SAP Sales & Distribution. SAP Production Planning
for the Corporate Technical Team to understand the functionality.
- "Advance Excel" Training program for RCF Employees.
I) Pre Recrutment Awareness Program:
The program is designed to motivate and guide applicants shortlisted for the RCF Recruitment Online Test, whether for Officer or Non-Officer positions, aimed at filling various positions across different disciplines. Its primary focus is to provide candidates with a clear understanding of how the online written test will be conducted.
To further support the applicants, sample question videos are made available on the RCF website, providing them with a practical understanding of the test format and allowing them to practice ahead of time.
J) Contractors, Mathadis, Tanker Drivers and Cleaners
Safety Awareness Program:
Health & Safety Training Programs were organized for Contractual workers / Mathadi workers: Twelve training programs were conducted on topics of "Overview & demonstration of firefighting equipments, Use of PPEs & safety practices at workplace, Rescue techniques & methods in emergency, Basic first aid, CPR & Health awareness, Personal hygiene, cleanliness, diet & exercise, behavior based safety, General awareness about safety; Safety measures & Safety precautions at Workplace."
Five Safety Programs were organized for Tanker Drivers & Cleaners transporting Hazardous Chemicals. The topics were Safety awareness session for transporters of hazardous chemicals, Use of PPEs & Safety practices at workplace.
Three dedicated training programs for Mathadi workers related to "Overview of bagging operations & utilization of resources in bagging, maintenance activities in Bagging, Mathadi Act, roles and responsibilities of Mathadi Board, roles & responsibilities of Mathadis" on work were organized.
K) Knowledge Sharing with Professional Institutes:
We have signed a Training Agreement with Suvidya Institute of Technology, Mumbai (SIT) for providing industrial visit to their course participants. Suvidya Institute of Technology Pvt. Ltd, Mumbai which is an ISO-9001: 2015 certified organization, providing industry specific training in sector like Energy, Chemical and FMCG. In the year 2024-25, Nine (09) training programs were organized for the Piping Engineering students, Engineering drawing and drafting, MPED, Process and Electrical and Structural course participants from this institute.
L) Act Apprentices Training & Operation of Government
Portals:
RCF regularly engages Act apprentices from Board of Apprenticeship Training, Western Region, Mumbai (BOAT) and Regional Directorate of Skill Development Enterpreneurship, Mumbai (RDSDE) and provides them their respective discipline wise training. Total 236 Act apprentices were engaged during the FY 2024-25.
The BOAT/RDSDE apprentices are engaged in the NATS Portal/NAPS portal under the guidelines of Ministry of Skill Development and Entrepreunership (MSDE), Govt. of India. They are provided basic training/ theory lectures/ practical classes at the Training Centre in addition to on the job training which they receive
in the respective plant/department as per their trade of apprenticeship.
M) Prime Ministers Internship Scheme (PMIS):
RCF has registered in Prime Ministers Internship Scheme-Pilot Project arranged by Ministry of Corporate Affairs, Govt. of India.
RCF has created and uploaded 60 internship opportunities with due date of 15/10/2024 in the Prime Minister Internship Scheme portal (PMIS). The process of selection of interns based on the list provided by the portal are being carried out in phases till the 60 internship opportunities get filled.
One intern is engaged in Phase 1. Now, phase-2 is in progress for 59 opportunities to be filled.
INDUSTRIAL RELATIONS
Your Company maintained cordial and harmonious Industrial Relations with all its employees. All the issues are settled amicably through regular discussions, meetings and dialogues with the employees. There was no occurrence of any untoward incident during the year.
Your Company has 2620 employees comprising 1285 Officers and 1335 non-officers, as on 31st March, 2025 compared to 2526 employees (1313 officers and 1213 non-officers) as on the corresponding date of the previous year.
During the year, 275 employees of various streams have joined your Company.
Your Company has conducted medical checkup for employees.
MATHADI CONTRACT LABOUR MANAGEMENT
Your Company believes that Communication and Trust are the pillars of Cordial and sustainable industrial relations. Transparency and Compliance of applicable labour laws reflect the commitment of your company towards the welfare and well-being Contract workers and Mathadi workers.
Your Company adhere to all relevant statutory requirements and abide by all applicable laws to contract labour. We work towards ensuring safe working conditions and fair wages to all including contract labour employed with Contractors of RCF.
Time to time, meetings are held with the stakeholders. The Mathadi Railway Labour Board for issues related to Directly registered Mathadi at Trombay Unit, their unions and the State Labour authorities.
Problems/ issues concerning Contract labour are also discussed on appropriate platforms, confidence building measures are implemented to ensure that contract workers feel as partners in RCFs growth.
Timely guidance and assistance is sought from the Dy. Labour Commissioners office and DISH authorities to make sure that your company remains a flag-bearer in the safety, wellbeing of Contract and Mathadi workers.
GRIEVANCE REDRESSAL
Grievance Mechanism system including online grievances was strengthened through various forums and with the Statutory Appointments as Liaison Officers for SC/ST/ OBC/PWBD separately including Grievance Officer for PWBD.
WELFARE AND SPORTS
Your company is one of the few companies who takes a lot of care of its employees not only at working place, but extends its relation beyond working place with the families of employees, by organizing various programmes like Annual Day, Family Day out, Womens Day etc.
Employee centric wellness and wellbeing activities was also strengthened during the period by way of preventive medical check-ups, camps and wellness sessions like Yoga, indoor games etc. Employees and their family members engagement was also encouraged through Annual Events and Cultural Programs.
RECOGNITION AWARDS
Employees are felicitated annually which recognizes their performance. Based on employee performance there are various awards which have been introduced and they are felicitated annually.
Our Retired employees who have put their best efforts are recognized for their contribution in each month. Felicitation of Retired employees in the Morning Meeting is arranged at Suraksha Bhawan. The programmes are being highly appreciated by the employees. These HR initiatives are proved to be very effective.
The other awards for current employees which are given on Republic Day function i.e. Behind the Scene, Good Health, Manaviyata Puraskar, Pearl Award, Corporate Excellence Award, Best Mentor Award etc. The award given on Womens Day is Women of Excellence Award. The award is given on QC Convention programme is Sarvashreshth Divyangjan Award etc.
On the Social Security Front, EPFO Mumbai Office recognised RCF for speedily completing online processes related to Provident Fund and Pension in the manufacturing larger unit sector.
Every active member of RCF has KYC compliance, UAN activated and linked with EPFO portal and the entire online exercise on implementation of Section 142 of Social Security Code in a record time, resulting Pension claim settlement within the same month of Retirement @ 58 years.
E-Nomination, E-life certificate and online claim facility has been provided through help desk to all active and retired employees.
Overall Industrial relations appears to be normal and brought under manageable dimensions after overcoming some issues of inter Unions, inter groups conflicts without affecting day to day productivity.
WELFARE / EMPLOYMENT OPPORTUNITY TO WEAKER SECTION
The guidelines in respect of reservation in recruitment and promotion of SC/ST, OBC, EWS, Ex- Servicemen and Person with Benchmark Disability are followed by your company. As on 31st March, 2025, your company has on its rolls, 423 employees belonging to Scheduled Caste, 196 belonging to Scheduled Tribe and 752 Other Backward Classes, 61 EWS, 1 Ex-servicemen & 41 PWBD.
Your company is committed to the welfare of SC/ST, OBC and EWS employees. Regular meetings are held with SC/ST Employees Welfare Association, RCF OBC Employees Association to address grievances, if any, and for providing guidance for development and organized Training programme on Reservation Policy.
Your company has celebrated every year Birth Anniversary of Dr. Babasaheb Ambedkar in both Buddha Vihar, Chembur and Thal, Alibag, Kurul Colony. The programmes such as puja and lunch were organized.
Medical camp was organized like every year at Chaitya Bhoomi, Dadar on 6th December, on the occasion of Mahaparinirvan Day. Financial assistance for distribution of food packets and making arrangement for medical camp including medicines along with the vehicles and Doctors was made available by the company on this occasion.
WOMEN ORIENTED PROGRAMME INITIATIVES
As per the directions of the Ministry, RCF WIPS (Women in Public Sector) CELL is formed in your Company which caters to the needs of female employees and meets on Quarterly basis to discuss the issues/initiatives like programme on mentoring, welfare measures like starting the creche facility, procuring sanitary napkins vending machine etc. Recommendations of the cell duly considered for implementation of the Management.
Your Company has also framed its own Gender Equality Policy. With an objective to create awareness amongst all the employees about Gender Equality E- Learning Module on Gender Sensitization has been launched on RCF Intranet and On- Line Gender Sensitization programme. Laminated copies of Gender Equality Policy and Zero Tolerance to Sexual Harassment policy are displayed in the offices of GMs and above level. The Creche facilities started for Women employees at Trombay are now extended that of Male Employees.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
Sr. No. Particulars |
2024-25 | 2023-24 | % Change | Reasons |
1 Debtors Turnover (Days) |
71.67 | 66.18 | 8.29 | Market conditions warranting extended credit terms and build of subsidy receivables |
2 Inventory Turnover (Days) |
23.94 | 26.27 | (8.85) | Decrease in inventory and reduced revenue from operations |
3 Interest Coverage Ratio |
3.31 | 3.70 | (10.63) | Higher Interest and low profitability |
4 Current Ratio |
1.42 | 1.45 | (1.82) | Decreased in Current Assets |
5 Debt Equity Ratio (Long Term Borrowings incl Current Maturities) |
0.33 | 0.30 | 7.77 | Increased borrowings |
6 Operating Profit Margin (%) |
3.98 | 3.03 | 31.49 | Better performance in Complex and IPD products |
7 Net Profit Margin (%) |
1.43 | 1.34 | 6.40 | Better performance in Complex and IPD products |
8 Change in return on Net Worth |
5.08 | 4.93 | 3.00 | Improved Profitability |
DISCLOSURE OF ACCOUNTING TREATMENT
The financial statement for the year ended March 31, 2025 are prepared in compliance with IND AS as prescribed under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements and actual results may or may not be in accordance therewith. The Companys performance is dependent on several external factors such as performance of monsoon, significant changes in economic environment, Government Policies, fluctuations in prices of raw material and finished products and also their availability, etc., which could adversely affect the operations of your Company.
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