Rathi Bars Ltd Management Discussions

The management is pleased to present this Management Discussion and Analysis Report provides insights into the Companys business performance, financial condition, risks and outlook for the financial year ended March 31, 2025 and is prepared in accordance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian steel and construction industry has been on a progressive trajectory, driven by increasing infrastructure development, urbanization, and government initiatives like "Make in India", Smart

Cities Mission, and PM Gati Shakti Yojana. The TMT (Thermo Mechanically Treated) bars segment continues to witness steady demand from public and private sector projects.

2. COMPANY OVERVIEW AND PERFORMANCE

Rathi Bars Limited is a renowned manufacturer of high-quality TMT bars and other steel products. Highlights for FY 2024-25 include:

- Revenue from operations stood at Rs. 49,628.82 Lakh. - EBITDA stood at Rs. 1,477.60 Lakh. - Net profit after tax was Rs. 256.56 Lakh. - Investment in rolling mill upgrades.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company recorded a profit after tax of Rs. 256.56 Lakhs (previous year: Rs. 356.82 Lakhs). The basic and diluted earnings per share for the Financial Year 2024-25 were at 1.57 per share (previous year: basic and diluted earnings per share at 2.19 per share).

The turnover and profit/(loss) figures of Rathi Bars Limited are given below:

(In Lakhs)

Particular	FY 24-25	FY 23-24
Turnover	49,770.59	61,403.52
EBITDA	1,477.60	1,467.09
Profit before tax (PBT)	351.60	404.73
Profit after tax (PAT)	256.56	356.82

3. OPPORTUNITIES AND THREATS

Opportunities:

- Government focus on infrastructure - Demand from real estate and urban projects - Expansion in new geographies

Threats:

- Volatility in raw material prices - Competition and imports - Regulatory changes - Economic cycle dependency

4. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company operates in a single segment manufacturing and sale of TMT bars. Emphasis was on quality improvement and dealer network expansion.

5. OUTLOOK

The Company remains optimistic about the sector and aims to focus on operational excellence, geographic expansion, and sustainable practices.

6. RISKS AND CONCERNS

Key risks include input cost volatility, supply chain issues, policy changes, and technological shifts. Risk mitigation strategies are in place.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Rathi Bars Limited has adequate internal control systems, regularly reviewed by an independent auditor and monitored by the Audit Committee.

8. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue growth was driven by volume increase and cost management. Margins were impacted by input costs but managed efficiently.

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company had 92 employees as on March 31, 2025. Regular training programs and cordial industrial relations were maintained.

10. ENVIRONMENT, HEALTH AND SAFETY (EHS)

Commitment to safety and health with regular EHS audits, safety drills, and compliance with environmental norms.

11. SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH EXPLAINATION THEREOF

Particular	F.Y.24- 25	F.Y.23- 24	Percentage increase/ decrease	Detailed explanation with respect to significant change i.e. 25% or more
Debtors Turnover	5.83	8.08	-27.80%	Due to increase in trade receivables and decrease in revenue.
Inventory Turnover	5.39	6.04	-10.74%	Not Required as variance is less than 25%
Interest Coverage Ratio	1.24	1.68	-26.32%	Due to increase in tax expense resulting in decrease in net profit after tax
Current Ratio	1.72	1.90	-9.39%	Not Required as variance is less than 25%
Debt Equity Ratio	0.85	0.71	19.90%	Not Required as variance is less than 25%
Operating Profit Margin (%)	1.73	1.60	8.13%	Not Required as variance is less than 25%
Net Profit Margin (%)	0.52	0.58	-11.25%	Not Required as variance is less than 25%
Return on Net Worth	3.26	4.69	30.49%	Due to decrease in profit due to decline in turnover
Return on Equity	2.69	3.87	-30.42%	Decrease in net profit after tax and due to decrease in revenue from operations.
Trade Payable Turnover	57.99	60.90	-4.77%	Not Required as variance is less than 25%
Return on Investment	0.00	127.99	NA	No return on investment this year due to no investment being disposed off this year.
Debt Service Coverage Ratio	1,24	1.68	-26.32%	Due to increase in tax expense resulting in decrease in net profit after tax as compared to last year.
Net Capital Turnover Ratio	7.98	9.71	-17.76%	Not Required as variance is less than 25%
Return on Capital employed	9.23	9.42	-1.97%	Not Required as variance is less than 25%

12. DISCLOSURES OF ACCOUNTING TREATMENT:

The Company, in preparation of financial statements has followed the same treatment which are prescribed in the respective accounting standards applicable on the Company.

13. CAUTIONARY STATEMENT

Statements in Management Discussion and Analysis describing the Companys objectives, projections, expectations, and estimates are based on the current business environment. Actual results could differ from those expressed or implied, based upon the future economic and other developments, both in India and abroad

	By order of the Board of Directors
	For Rathi Bars Limited
	Sd/-	Sd/-
	Anurag Rathi	Uddhav Rathi
Date: 22.08.2025	(Managing Director)	(WTD cum CFO)
Place: New Delhi	DIN:00063345	DIN:06604905