Ratnamani Metals & Tubes Ltd Management Discussions

Management Discussion And Analysis Report

an economic overview

THE ECONOMIC LANDSCAPE

The global economy in FY25 presented a complex tapestry of resilience and uncertainty. Persistent geopolitical tensions exerted downward pressure on investment and sentiment worldwide, influencing overall global growth, which was projected at a modest 3.3% for 2024. Whilst inflationary dynamics eased due to contractionary monetary policies and a softening in energy prices, the proliferation of protectionist measures, particularly from the United States, is projected to weigh on global output, with GDP growth expected to decelerate to 2.8% in 2025. This elevated uncertainty and shifting policy paradigms globally necessitate recalibrated macroeconomic strategies to reinforce economic resilience.

This subdued global economic landscape in Q1 FY25 directly influenced demand patterns for critical industrial and capital goods worldwide, including steel, alloy tubes, and process equipment.This challenging external environment, characterised by mixed trends in key export markets (e.g., US contraction,

Chinas infrastructure-led growth), directly impacted Ratnamanis international operations, particularly within the oil & gas and export-driven industrial segments. Whilst labour market normalisation and easing inflation in advanced economies offered some stability in input costs, geopolitical uncertainties and evolving trade barriers remain key risks for our global ventures, underscoring the direct dependency of our international business on these external factors.

Amidst this global volatility and its ripple effects, India continued to demonstrate remarkable macroeconomic resilience, effectively navigating these external headwinds with robust internal strength. Registering a GDP growth of 6.5% in FY25, following a strong 9.2% in FY24, Indias sustained trajectory underscores its structural integrity. This momentum was reaffirmed by rising GST collections, improved consumer sentiment, and a resurgence in manufacturing activity, collectively providing a domestic buffer against global slowdowns. Crucially, Indias inflation eased significantly, with retail inflation falling to 4.6% in FY25—its lowest in six years— providing a vital macroeconomic cushion against global price pressures, partly aided by a favourable harvest and government interventions

Indias industrial activity continued its recovery momentum, with the Index of Industrial Production (IIP) growing 3% year-on-year in March 2025. Whilst cumulative FY25 IIP growth (4%) showed some moderation, the manufacturing and services segments remained robust, evidenced by the India Composite Purchasing Managers Index (PMI) consistently staying above 50 for 44 consecutive months.

Outlook: Indias potential growth, estimated between 6.2% and 6.7%, is firmly anchored by an upturn in manufacturing and the accelerating digital transformation of key economic sectors. Crucially, a resurgence in merchandise and services exports is critical for Indias ability to fully capitalise on global opportunities and navigate the evolving global trade dynamics. Indicators such as GST collections and automobile sales suggest strong underlying momentum. Furthermore, a significant decline in international oil prices provides an additional macroeconomic cushion for India, directly easing import costs and inflationary pressures that could otherwise stem from global instability. On a larger horizon, Indias economic outlook for FY26 hinges on a delicate balance between evolving global trade relations and government efforts to boost domestic consumer demand, meaning its growth trajectory will be shaped by the intricate interplay between domestic stimulus and the prevailing, uncertain global conditions.

Indias economy - poised to grow

Indias goal of achieving a US$5 trillion economy by 2024-25 was closely tied to extensive infrastructure development. Central to this vision is the National Infrastructure Pipeline (NIP), an extensive investment initiative valued at over T100 lakh crore, covering the period from 2019 to 2025. Among various sectors, the development of pipelines plays a crucial role in enhancing energy security, fostering industrial growth, and optimising supply chain efficiency.

Pipeline infrastructure—spanning oil, gas, water, and other essential resources—directly impacts the nations ability to industrialise, urbanise, and enhance its economic resilience. As India transitions into a more service-oriented and manufacturing-driven economy, seamless connectivity through pipeline networks will be key to reducing costs, improving logistics, and boosting productivity.

Stainless Steel

GLOBAL STAINLESS-STEEL SECTOR

The global stainless steel industry remains a cornerstone of modern industrial development, characterised by robust demand growth and widespread application across key sectors. Due to its exceptional corrosion resistance, durability, and aesthetic appeal, stainless steel remains an indispensable material in a wide range of industries, including automotive, railways, infrastructure, construction, transportation, and process engineering.

Global stainless steel melt shop production increased by 7% in 2024 compared to 2023, reaching 62.621 million tons. This surge in demand is fuelled by significant private and public investments in infrastructure projects and residential construction. The robusi demand environment is further supported by technological advancements in manufacturing and the increasing integration of stainless steel in renewable energy systems and sustainability- driven engineering solutions.

The global stainless steel market size was valued at US$206.91 billion in 2023. The market is projected to grow from US$216.16 billion in 2024 to US$320.37 billion by 2032, exhibiting a CAGR of 5.0%during the forecast period.

INDIAN STAINLESS STEEL SECTOR

Indias stainless steel industry is poised for significant expansion in the coming years. According to a report by the Indian Stainless Steel Development Association (ISSDA), the nation targets to scale up its stainless-steel capacity to 93-9.5 million tonnes by 2030, with ambitions to reach 12.5-12.7 million tonnes by 2040. These bold growth projections are underpinned by expectations of sustained economic development and a corresponding surge in demand.

This anticipated demand is also reflected in the projected rise in Indias per capita consumption of stainless steel, which is forecasted to reach 4.5-5.5 kg by FY30. This growth is propelled by the growing utilisation of stainless steel in emerging sectors such as renewable energy, ethanol production, water storage, and other critical industries.

Furthermore, Indias rapidly growing stainless steel industry is addressing its crucial nickel needs through a significant increase in nickel pig iron (NPI) and ferro nickel imports from Indonesia.

To further ensure long-term availability, Indian companies are investing in overseas NPI production facilities.

Steel Pipes Cincl Tubes Industry

GLOBAL STEEL PIPES AND TUBES INDUSTRY

The global steel tubes market size was valued at US$83.35 billion in 2024. IMARC Group estimates that the market is expected to reach US$93.25 billion by 2033, exhibiting a CAGR of 1.24% from 2025 to 2033. Asia Pacific currently dominates, accounting for over 75.6% of global market share in 2024.

The steel tubes market is experiencing steady growth, driven by rapid urbanisation and infrastructure development, particularly in emerging economies. This growth is further supported by a rising global focus on sustainable practices, increased use of recycled materials, and continuous technological advancements in manufacturing processes.

A principal growth driver remains the oil and gas sector, which commands the largest revenue share in the global steel pipes and tubes market. This dominance is expected to persist due to the extensive deployment of steel pipes and tubes in various oil and gas applications.

These applications include Oil Country Tubular Goods (OCTG), which are essential for drilling and extraction, as well as transportation pipelines for crude oil and natural gas. Additionally, process piping is used in refineries to convert crude oil into petroleum products.The International Energy Agency (IEA) forecasts a continued increase in global oil demand, projecting an additional 1.1 million barrels per day (mb/d) in 2025, bringing the total to 103.9 mb/d. This sustained oil demand directly translates to increased exploration, production, and transportation activity, thereby fuelling the demand for steel pipes and tubes.

From a technological perspective, the seamless tubes segment continues to lead, driven by the expanding construction of new transmission pipelines. Seamless pipes, known for their high strength and durability, are critical components in these pipelines. The growing infrastructure development, particularly in emerging economies, is further boosting the demand for seamless tubes.

In parallel, Electric Resistance Welded (ERW) pipes are also witnessing accelerated adoption.The increasing demand for structural steel components, especially in emerging markets, is catalysing the growth of ERW pipe usage in construction, transportation, and industrial applications.

STEEL TUBES MARKET FORECAST

Size, By Product Type, 2024-2033 (US$ Billion)

INDIAN STEEL PIPES AND TUBES INDUSTRY

The steel pipes and tubes industry is a significant segment of the Indian steel sectoi.

Leveraging cost effective production, enhanced productivity, superior quality standards, and a favourable geographical position, India has solidified its standing as one of the worlds top three manufacturing hubs for steel pipes and tubes, behind only Europe and Japan, driven by robust domestic and international demand.

The industry solely contributes around 8% of Indias steel utilisation.The Indian steel pipes and tubes market is on a robust growth trajectory, with revenue projected to reach US$17,599.1 million by 2030, reflecting a compound annual growth rate (CAGR) of 5.8% between 2024 and 2030. The oil and gas sector is the dominant revenue contributor within Indias steel pipes and tubes industry, significantly propelling its expansion.

This anticipated growth trajectory is underpinned by several strategic and macroeconomic factors expected to sustain and accelerate demand for steel pipes and tubes in the years ahead. The following drivers will support this growth:

Energy Demand Leadership: Indias dynamic economic growth and demographic scale are projected to account for 25% of the worlds incremental energy needs between 2020 and 2040. As the third-largest oil consumer globally, India is also anticipated to spearhead global oil demand growth between 2023 and 2030.

Natural Gas Expansion Investment:

The Government of India aims to elevate the share of natural gas in the countrys energy mix from 6.7% to 15% by 2030, presenting an investment opportunity of US$67 billion.

Refining Capacity Enhancement: To meet growing domestic and global requirements, India plans to expand its refining capacity from 256.8 million metric tonnes per annum (MMTPA) to 310 MMTPA by 2030.

Additionally, significant demand is generated by the expanding construction and manufacturing sectors, which require substantial volumes of steel pipes and tubes for structural and specialised applications.

Stainless steel pipes have considerable traction across industries owing to their durability and superior performance. They are far less vulnerable to corrosion and chemical leaching as they dont absorb components of the materials around them, such as lead or copper. Stainless steel is a superior replacement for plastic plumbing and is steadily becoming the go-to choice for commercial, industrial, and residential real estate projects.

Recently, the Indian government has taken decisive steps to safeguard its domestic industry. India has imposed an antidumping duty on imported welded stainless steel pipes and tubes to protect local manufacturers from unfair trade practices. This measure aims to avert the influx of low-cost imports that jeopardise domestic producers and establish equitable market conditions, a step considered essential after investigations confirmed that these products were imported at below-market prices, causing substantial harm to Indias domestic industry.

Sources:

Invest India

https://www.blueweaveconsulting.com/report/india-steel-pipes-and-steel- tubes-market#:~:text=The%20steel%20pipes%20and%20tubes,Welded%20 and%20Seamless%20(S%26S).

OPPORTUNITIES AND THREATS

OPPORTUNITIES

• A substantial market opportunity is emerging for the stainless-steel industry as Indias electric vehicle (EV) market expands, with forecasts from SBI Capital Markets indicating EV sales will comprise 30-35% of total vehicle sales by FY30.

• Indias strategic emphasis on durable and sustainable infrastructure, combined with a heightened focus on lifecycle cost efficiency, positions stainless steel as a material of choice. Its inherent resistance to environmental degradation aligns with the governments substantial capital expenditure outlay of Rs.11.21 lakh crore (US$129.4 billion) in the FY26 Union Budget, representing 3.1% of GDP, demonstrating a long-term commitment to infrastructure development.

THREATS

• The Company is susceptible to fluctuations in the prices of raw materials. Any sharp increase in the cost of steel or other essential inputs can adversely affect operational efficiency and financial performance.

• Increasingly stringent environmental regulations aimed at reducing carbon emissions and pollution could increase Ratnamanis operating costs.

Business Division 1

Stainless steel, nickel alloy & titanium division

Ratnamanis Stainless Steel Division is a premier manufacturer of high-performance piping and tubing solutions tailored for highly specialised applications, specifically designed to meet the rigorous requirements of critical applications. The division offers an extensive portfolio that includes seamless products made from nickel alloy and stainless steel, as well as welded solutions that incorporate titanium and stainless steel, along with coated stainless-steel pipes.

UNCOMPROMISING QUALITY THROUGH RIGOROUS TESTING

• Ratnamani maintains a steadfast commitment to quality assurance through an exhaustive in-house testing regime.

• Its state-of-the-art Test Laboratories, accredited to ISO 17025, guarantee products meet the highest industry standards.

• Its dedicated seamless tubes and pipes facility features Hot Extrusion Presses for precise Mother Hollow production.

PERFORMANCE IN FY25

The stainless-steel business division continued to expand its global presence and product range, resulting in better utilisation of capacities. The year saw it improving upon its prior years performance and achieving its best-ever turnover.

The Middle East, specifically Saudi Arabia - Saudi Aramco, SABIC and ADNOC in Abu Dhabi and Qatar, is currently seeing a surge in demand for both stainless steel and carbon steel pipes and tubes due to ongoing expansion/greenfield projects. This regional upswing is primarily driving overall demand, mainly from the oil and gas sector. Ratnamani is well-positioned to capitalise on these opportunities.

The recent increase in stainless steel cold finishing capacity has commenced production, with ramp-up expected to take another 3 to 6 months.This capacity expansion is expected to broaden the divisions product portfolio and facilitate entry into newer international markets.

Regarding exports, stainless steel products made a significant contribution to the companys turnover.

Of the total exports, approximately one-third is for the MENA region. US exposure is 15% to 20%, with similar figures for Europe.The Company is proactively pursuing approvals in new geographies that align with the scaling of its cold finishing capabilities.

PROSPECTS OF OUR KEY USER SECTORS

Oil & Gas, Petroleum and Refineries Sector

Global: Global oil refinery output is projected to rise substantially, increasing from 81.8 million barrels per day in 2023 to nearly 90 million barrels per day by 2030. Developed regions, such as the United States, Canada, Europe, and the developed Asia-Pacific, are anticipated to experience a decline in refinery output beginning in 2030. In contrast, developing regions, including Asia-Pacific, the Middle East, Africa, and Latin America, are projected to see substantial increases, effectively offsetting the declines in developed nations.

India: By the year 2045, it is projected that Indias oil demand will increase twofold, reaching 11 million barrels per day. In the short term, diesel demand is expected to double to 163 million tonnes by the fiscal year 2029-30. Furthermore, it is anticipated that diesel and gasoline will constitute 58% of the nations total oil consumption by 2045.

Sources: https://publications.opec.org/woo/chapter/129/2358#:~:text=Refine ry %20runs% 20are%20expected%20to,to%20decline%20from%202030%20 onwards.)

https://www.ibef.org/industry/oil-gas-india

Fertiliser

Plants

Indias robust agricultural sector, as the worlds second-largest producer of fruits and vegetables, is a key driver for the fertiliser industry. Coupled with government support through direct income schemes, which have increased farmer liquidity and confidence, the industry is poised for significant growth. With a projected CAGR of 4.2%, the Indian fertiliser market is expected to reach 1.38 lakh crore by 2032, fuelled by rising agricultural demands and supportive government policies.

Source: https://www.outlookbusiness.com/news/indias-fertiliser-turnover-set-to- reach-rs-138-cr-by-2032-news-417845#:~:text=With%20a%20CAGR%20 of%204.2,2023%20was%20Rs%2094%2C210%20crore.

Power: Thermal and Nuclear Sector

Global: The year 2025 is expected to represent a transformative period for nuclear energy, with global generation anticipated to achieve an unprecedented peak. The International Energy Agency forecasts an annual growth rate of almost 3% extending through 2026, driven by heightened production in France, the resumption of operations at Japanese facilities, and the activation of new reactors in key markets.

An estimated 299 gigawatts (GW) of new capacity are slated to come online globally over the next few years.

India: The 2025-26 Union Budget reaffirmed Indias commitment to nuclear energy, setting an objective to achieve 100 GW of capacity by 2047. This initiative is designed to enhance energy security and diminish reliance on fossil fuels, in alignment with the objectives of Viksit Bharat. The government is facilitating this expansion through strategic policy measures and investments in infrastructure, placing a significant emphasis on the development of indigenous nuclear technology and promoting public-private collaboration.

Sources:

https://www.nuclearbusiness-platform.com/media/insights/10-major-

nuclear-energy-developments-to-watch-in-2025#:~:text=The%20

nuclear%20energy%20sector%20is,all%2Dtime%20high%20by%202025.

https://pib.gov.in/PressReleasePage.aspxRs.PRID=2099244

Aerospace and Defence

The aerospace and defence market of India is positioned for considerable growth, with projections indicating an increase from US$27.1 billion in 2024 to US$54.4 billion by 2033, representing a CAGR of 6.99%. This expansion is driven by significant government investment, highlighted by a defence budget of H6,81,210 crores (approximately US$78.57 billion), reflecting a 9.5% increase compared to the preceding year. Additionally, a capital budget of 1,80,000 crores (approximately US$20.76 billion) further emphasises the governments dedication to modernisation and the domestic production of advanced military equipment, in alignment with the Atmanirbhar Bharat vision.

Sources:

https://www.ey.com/en_in/technical/alerts-hub/2025/02/budget-2025- defence-sector)

https://manufacturing.economictimes.indiatimes.com/news/aerospace- defence/why-aerospace-and-defence-should-be-a-priority-for-indian- msmes/114756675

Business Division 2

Carbon steel division

Analogous to the significance of a robust highway network in facilitating the transport of goods, a comprehensive pipeline network constitutes the backbone of a nations resource distribution ecosystem.

Ratnamanis carbon steel division plays a crucial role within this framework, specialising in the production of pipes that enable this functionality.

The Company is dedicated to the manufacturing of high-quality carbon steel pipes, which include High Frequency-Electric Resistance Welded (HF-ERW) and Submerged Arc Welded (SAW) types. These pipes are meticulously engineered to transport essential resources such as water, oil, and natural gas with optimal efficiency and safety.

Ratnamanis adaptability enables the Company to manage projects of varying scales, seamlessly integrating both small and medium orders into its production processes. By rigorously adhering to international quality standards, the organisation ensures that its pipes meet the requirements of clients worldwide. This steadfast commitment to quality has fostered exceptional customer satisfaction and established trust among clients worldwide.

PERFORMANCE IN FY25

The demand dynamics within the industrial sector for carbon steel, particularly heavy-wall-thickness pipes, remain robust despite muted activity in line pipes. The market is experiencing significant international tender activity in the oil and gas segment, accompanied by a noticeable slowdown in domestic tenders.

City gas distribution, primarily reliant on ERW pipes, is currently experiencing slower demand but is expected to recover cyclically.

The order book reflected this dynamic environment, with carbon steel products comprising approximately 70% of the total. Notably, the water segment accounted for around 20-25% of the total revenue derived from carbon steel.

The company is nearing completion of its new expansion project, which focuses on manufacturing pipes with larger diameters and lengths of up to 18 meters, featuring thicknesses of up to 150 mm. Phase I of the Odisha project (spiral welded pipe plant) is on the verge of commissioning, and Phase II is expected to follow by the end of this calendar year. This expansion will significantly enhance the product portfolio to cater to specialised applications. The division is confident that this expanded product range, combined with existing product approvals, industry-leading facilities, and strong financial performance, will ensure sustainable future growth.

The business division demonstrates a strategic focus on capitalising on the strong industrial demand for carbon steel pipes while actively pursuing international oil and gas opportunities.

PROSPECTS OF OUR KEY USER SECTORS

Oil and Gas Transmission Lines

By 2028, Asia is expected to experience substantial growth in its gas pipeline network, with India accounting for over 40% of the regions total pipeline length additions. India is expected to operationalise more than 50 planned and announced pipelines, adding over 26,000 kilometres of transmission pipeline. Notably, around 24,000 kilometres of this expansion comes from pipelines that have already secured necessary development approvals. The upcoming Kandla-Gorakhpur product pipeline is likely to be the longest among all the upcoming pipelines, measuring 2,809 km in length.

Source:

https://www.rigzone.com/news/india_will_dominate_oil_gas_ transmission_pipeline_length_additions_in_asia-09-dec-2024-178984- article/#:~:text="India%20is%20expected%20to%20be,company%20 stated%20in%20the%20release.)

City Gas Distribution

Indias City Gas Distribution (CGD) market is undergoing significant growth, propelled by robust government support and an increasing emphasis on cleaner energy. The governments objective of achieving 70% population coverage with Piped Natural Gas (PNG) and Compressed Natural Gas (CNG), underpinned by an investment of 120,000 crore, is a critical factor driving this expansion. This growth is further facilitated by a favourable gas allocation policy and the enhanced commissioning of urea plants, collectively contributing to the escalating demand for natural gas.

Simultaneously, burgeoning demand for refinery products and the transition to Electric Vehicles (EVs) in public transport are creating parallel growth avenues. The adoption of CNG in private vehicles and LNG in heavy commercial vehicles presents substantial market potential. Recognising this, to fully harness this potential, the government has outlined a plan to invest 3 trillion in gas infrastructure over the forthcoming five years. This investment will encompass the establishment of CNG and LNG stations, as well as the development of an extensive pipeline network.

Source: https://ficci.in/event_details/27301

Water & Sewage Infrastructure

According to the World Resources Institute (WRI), India ranks among the most water-stressed countries.

In response to the pressing wati ;r n dated challenges, India has developed the 5th largest water and wastewater treatment markei globally, valued at around US$11 billion, with projections to surpass US$18 billion by 2026.

In 2024, the Department of Water Resources, River Developmeni, and Ganga Rejuvenation initiated several key projects and achieved significant milestones to improve water management and secure the nations water future.

For instance, the National Mission for Clean Ganga sanctioned 39 new projects in 2024 worth ^2,056 crore. To strengthen the sewerage infrastructure, 12 projects were sanctioned to create or rehabilitate 305 MLDof sewage treatment capacity between January and December 2024.

Overall, 203 sewerage infrastructure projects have been sanctioned in the Ganga Basin, resulting in the creation of 6,255 MLD of sewage treatment capacity and the development of a 5,249 km sewer network.

India has ambitious plans to significantly improve water infrastructure by 2030, including expanding the piped water supply to all households and addressing projected water scarcity. This includes initiatives such as the Jal Jeevan Mission, which aims to provide every rural household with potable tap water. As of August 12, 2024, Jal Jeevan Mission has successfully provided tap water connections to 11.82 crore additional rural households bringing the total coverage to more than 15.07 crore households which accounts for 77.98% of all rural households in India. Focused investments for the completion of this project will continue to fuel demand for pipes.

Sources

https://pib.gov.in/PressReleasePage.aspx PRID=2096022#: :text=ln%20 sewerage%20inffastructure%2C%2012%20projects,treatment%20 capacity%20have%20been%20completed.

https://pib.gov.in/PressNoteDetails.aspxRs.Noteld=152025&Moduleld=3&re g=3&lang=1

PERFORMANCE OF OUR SUBSIDIARIES

Ravi Technoforge Private Limited (RTL), a Ratnamani subsidiary, achieved its highest-ever sales of Rs.287 Crores in FY25, marking a 12% growth over the previous fiscal year, with the March 2025 quarter alone recording a record T84.12 Crores in sales. Demonstrating exceptional guality and reliability, RTL successfully i k ared the stringent audit for European Railways supplies, paving the way for parts delivery to a prestigious Italian customer after two years of rigorous development and testing. Their commitment to excellence was further recognised globally by Schaeffler, which awarded RTL the "Best Value Supplier" designation for the second 11 insecutive year—a unigue distinction for an Indian company among 2,500 worldwide suppliers.

Additionally, SKF India honoured RTL as "Best Quality Supplier" for achieving zero defects in the ring category. RTL also successfully developed and secured approval for 156 new parts in their very first supply lots, expanded its customer base significantly, and initiated series supplies to numerous new plants. Currently, projects worth Rs.85 Crores are under implementation, underscoring RTLs robust growth trajectory and operational prowess.

Ratnamani Finow Spooling Solutions Pvt. Ltd. (RFSS), a strategic joint venture, marked its first full financial year(FY25) with remarkable foundational growth, establishing itself as a rising leader in Indias nuclear spooling industry. Commencing operations in August 2024, RFSS achieved Rs.55 Crores in revenue, successfully executed over 350 metric tonnes of spool and support fabrication (including 273 MT of pipe spools and 75 MT of support structures), and managed robust raw material procurement exceeding 800 MT. Commercially, the company built an impressive order pipeline exceeding Rs.650 Crores.

Looking ahead to FY26, RFSS targets Rs.250 Crores in revenue, with plans to significantly scale monthly pipe spool production to 100 MT and support production to 30 MT.This expansion is underpinned by ongoing infrastructure development, including a new 30,000 sg. meter shop floor to boost total plant capacity to 4,000 MT/year, and the addition of advanced induction bending capabilities for pipes up to 100mm thickness, reinforcing its vision for high-capacity, precision manufacturing.

According to the Global Energy Monitor, India is currently constructing 1,630 km of oil transmission pipelines, ranking second worldwide in ongoing projects.

Source: https://constructiontimes.co.in/The-critical-role-of- pipeline-infrastructure-in-lndias-5-tril lion-economy-vision

Financial Performance

(Based on standalone Financial Statements)

Ratnamani continues to scale new peaks notwithstanding externa turbulence. The Company recorded its highest sales and turnover despite the softness in metal prices and the delay in the execution of certain projects by certain customers.

Revenue from Operations increased from Rs.4,807 crores in FY24 to ^4,876 crores in FY25. However, business profitability slid marginally as EBITDA dropped from Rs.921 crores in FY24to^892 crores in FY25. Net Profit for the year stood at Rs.578 crores in FY25 from ^609 crores in FY24.

On the positive side, net cash generation from operations stood at ^521 crores in FY25, enabling Ratnamani to sustain its Net-Zero

Debt status. The Company has proposed a dividend of Rs.14 per share, subject to approval at the ensuing Annual General Meeting.

ShareholdersFund increased to Rs.3,709 crores as on March 31, 2025, against ^3,221 crores in FY24.The increase was primarily due to the addition of business surplus.

The Company ended the year with an order book of approximately ^2,100 crore (55% exports, 45% domestic). Additionally, a robust pipeline of jobs is under bidding, both in stainless steel and carbon steel, which provides optimism for sustaining profitable growth in the current year.

Reference	Particulars	F.Y.2024-25	F.Y. 2023-24	Change %
	PROFITABILITY RATIOS (%)
(a)	Operating Profit Margin	17.99	18.97	(5.17)
(b)	Net Profit Margin	11.85	12.66	(6.38)
(c)	Return on Net Worth	15.59	18.89	(17.51)
	WORKING CAPITAL RATIOS
(d)	Debtors Turnover (times)	1.11	1.29	(13.65)
(e)	Inventory Turnover (times)	3.88	3.90	(0.57)
	GEARING RATIOS
(f)	Interest Coverage	36.06	30.79	17.11
(g)	Debt/Eguity	0.00	0.01	(100.00)*
	LIQUIDITY RATIO
(h)	Current Ratio	3.99	5.33	(25.12)**

* Increase in Shareholders Eguity because of retained profit and repayment of instalments relating to long-term borrowings.

** Advances against orders to be executed in future.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Companys Corporate Governance Policy serves as a guiding liameworkfor our conduct and that of the Managemeni, encompassing financial and accounting policies, systems, and processes. This policy clearly delineates the roles, responsibilities, and authorities associated with each level of the Companys three¹ liered governance structure, as well as the key functionaries engaged in governance.

The Corporate Governance Policy and the Code of Conduct are effectively communicated throughout the Company. The organisational strategies, planning, review processes, and risk management framework establish the foundation for internal financial controls pertinent to the Companys financial statements, which are fundamental to significant accounting policies.

These policies are meticulously curated by the Management and sanctioned by the Audit Committee as well as the Board.

Furthermore, they are reinforced by corporate accounting and systems policies applicable to the entity, thereby implementing the principles of corporate governance and essential accounting policies consistently throughout the Company.

The accounting policies are subject to regular review and updates. These policies are underpinned by a comprehensive set of divisional policies and Standard Operating Procedures (SOPs) established for individual businesses.

The Company employs an Enterprise Resource Planning (ERP) system to facilitate business operations and diligently maintains its accounting records. The SOPs, in conjunction with the transactional

Controls integrated within the ERP systems, ensure the appropriate segregation of duties, implement tiered approval mechanisms, and maintain the necessary supporting documentation.

Furthermore, the Information Management Policy serves to reinforce the control environment. The systems, SOPs, and controls are subject to review by Divisional Management and are audited by Internal Auditors, whose findings and recommendations are consistently examined and monitored by the Audit Committee.

The Company has adeguate internal financial controls in place lo ensure the accuracy of its financial statements. These controls were tested during the year, and no material weaknesses in design or operation were identified as reportable. Nonetheless, the (ompany recognises that any internal financial control framework has inherent limitations, regardless of how well it is designed. Accordingly, regular audit and review processes are conducted to continually reinforce such systems.

The Company has implemented comprehensive systems and procedural guidelines for various business areas, including budgeting, execution, material management, guality, safety, procurement, asset management, and human resources, among others. These systems align with the Companys size and level of operations. Management regularly reviews and upgrades existing systems and processes to adapt to the changing demands of the Companys business.

HUMAN RESOURCE

The Company places paramount importance on the calibre of its workforce, recognising it as the cornerstone of success. Dedicated to empowering employees with the requisite skills to adapt to ever-evolving technological landscapes seamlessly, the Company fosters a culture of continuous learning and growth.

The Human Resource team is at the heart of this commitment and is entrusted with nurturing and retaining the Companys intellectual capital within the dynamic business environment. With a steadfast focus on safety, the Company conducts comprehensive audits of its facilities to ensure the well-being of employees. Furthermore, plant safety committees have been established to diligently monitor and address safety concerns.

Central to its ethos is cultivating a supportive and rewarding work environment where merit is celebrated and a healthy workplace culture is actively promoted.

By investing in the growth and well-being of its employees, Ratnamani creates a workplace where individuals feel valued, motivated, and empowered to contribute their best. This, in turn, drives innovation, enhances productivity, and strengthens the Companys competitive advantage.

As of March 31,2025, the Company had a workforce of 3,165, supplemented by 2,132 personnel on contractual arrangements.

CORPORATE GOVERNANCE

Ratnamani demonstrates strong corporate governance through comprehensive compliance and transparent practices.

Verification And Compliance

• A secretarial audit, detailed in a supplementary corporate governance report, confirms the Companys adherence to all I isting Regulation requirements.

• The Chairman and Managing Director (CMD) and Chief Financial Officer (CFO) certify the accuracy of the financial statements, the effectiveness of internal controls, and the proper reporting of material matters to the Audit Committee, as mandated by the Listing Regulations.

Governance Framework

• Ratnamani adheres to all applicable laws, listing requirements, and established governance standards.

• The Company has implemented modern governance policies, including those related to related party transactions, Corporate Social Responsibility (CSR), and whistleblower protection, all of which are accessible on its official website (www.ratnamani. com).

• A robust whistleblower mechanism enables directors and employees to report legitimate concerns confidentially and securely.

• Detailed corporate governance information is provided in the annexed corporate governance report.

Core Principles And Commitment

• Ratnamanis corporate governance philosophy is founded on conscience, transparency, fairness, professionalism, and accountability.

• These principles are reflected in the Companys systems, procedures, regulations, and values.

• Ratnamani is committed to upholding the highest standards of corporate governance and prioritising public interest in its operations.

• A network of policies, codes of conduct, charters, and established committees ensures sound governance that aligns with legal requirements.

• The Companies Act 2013 and SEBI Listing Regulations have i ollectively strengthened Indias governance landscape, of which Ratnamani is a participant.

key risks cind their mitigation strategy

Ratnamani has implemented a comprehensive and meticulously structured risk management system to ensure its long-term viability and sustained success. This framework is a proactive and integral component of the Companys strategic planning. It is designed to anticipate and address potential challenges before they materialise, thereby minimising disruptions and maximising opportunities. By rigorously monitoring and managing these risks, the Company ensures it can: ^•

• Protect stakeholder value

• Achieve its strategic goals

• Drive sustainable business expansion

Cyclicality Risk

The stainless steel industry experiences cyclical demand, which is directly influenced by the overall health of the economy.

Mitigation Measures

• Ratnamanis business has two counter-balancing segments, providing resilience against downturns in specific user industries. This strategic diversification enables the Company to grow even when facing challenges in particular market segments.

• Ratnamani maintains a balanced presence in the stainless steel market, operating in both domestic and international markets. This geographical diversification partially mitigates the risks of cyclical fluctuations in any regional market.

Competition Risk

The competitive landscape of the stainless steel tube and pipe market poses a risk to Ratnamanis market position.

Mitigation Measures

• Ratnamani invests in research and development to create value-added products, distinguishing itself from competitors.

• The Company prioritises superior customer service, offering technical support, timely deliveries, and flexible order fulfilment.

• The companys massive product portfolio of impeccable guality enables it to stand out among its peers.

Environment Risk

Reduction in carbon footprint has become mandatory for strengthening its position in the global market.

Mitigation Measures

• Ratnamani has invested in captive renewable energy infrastructure, including solar and wind assets. This helps to reduce their reliance on conventional power sources and mitigate the risks associated with power supply disruptions or fluctuations.

• The Company implements "Zero Liguid Discharge" facilities at its plants, demonstrating a commitment to responsible water management.This minimises water waste and maximises reuse.

Regulatory Risk

Failure to comply with evolving regulations or any deviation from compliance can negatively impact the Companys reputation.

Mitigation Measures

• Ratnamani employs robust legal compliance management systems to ensure thorough awareness and adherence to regulations.

• The Company leverages technology to track compliance and timelines, including appropriate escalation procedures, action plans, and review processes.

Currency Fluctuation Risk

Foreign exchange fluctuations could impact profitability.

Mitigation Measures

• Ratnamani utilises foreign exchange hedging policies to minimise risks related to currency fluctuations, thereby stabilising import and export costs.

• The Company utilises financial instruments, such as interest rate swaps, to mitigate the impact of fluctuating interest rates and inflation on its borrowings, thereby contributing to stable financing costs.

Funding Risk

Adeguate funds are an absolute necessity for business growth.

Mitigation Measures

• The companys lowdebt-to-eguity ratio enables it to secure adeguate financial resources when needed.

• Its prudent cash management strategy has allowed it to fund capital investment through internal accruals, increasing the Companys cash flow (post-commissioning of the facility).