Raw Edge Industrial Solutions Ltd Management Discussions

Annexure II

In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 the Management Discussion and Analysis Report (MDAR) is structured as follows:

Market Trend & Economy

Opportunities & Threats

Segment-wise or product-wise performance

Overview & Outlook

Risk and Concerns

Internal Control System

Financial and operational performance

Material Development in Human Resources

Some Statements in this discussion may be forward looking. Future performance may however differ from those stated in the management discussion and analysis on account of various factors such as changes in Government regulations, tax regimes, impact of competition, etc.

MARKET TREND & ECONOMY

GLOBAL PRODUCTION OF LIME:

Below table shows country wide world production of Quicklime and hydrated lime, including dead-burned dolomite.

Quantity in 000 tonnes

Country Name	2023	2022	2021	2020	2019	2018
China	3,10,000	3,10,000	3,10,000	3,00,000	3,00,000	3,00,000
USA	17,000	17,000	17,000	16,000	18,000	18,000
India	16,000	16,000	16,000	16,000	16,000	16,000
Russia	11,000	11,000	11,000	11,000	11,000	11,100
Japan	6,200	7,000	7,000	7,300	7,600	7,580
Brazil	8,300	8,400	8,100	8,100	8,400	8,300
Germany	5,900	5,600	7,100	7,100	7,100	7,000
Italy	3,500	3,600	3,500	3,500	3,600	3,600
South Korea	5,100	5,200	5,200	5,200	5,200	5,200
Ukraine	2000	2000	2,300	2,200	2,100	2,100
Turkey	4,600	4,800	4,700	4,600	4,700	4,700

Limestone reserves are adequate for most of the countries. China is consistently the largest producer of Lime as can be seen in above table. India is the 3rd largest country in the World in terms of production according to data released by U.S. Geological Survey, Mineral Commodity Summaries. All these countries produce adequate quantity of lime for their own consumption.

According to experts, strongest annual growth of lime is expected to come from China, India, US and other developing countries.

As per publicly available data from reliable sources such as the United States Geological Survey (USGS) and global market research reports, the latest country-wise lime production data is available only up to the year 2023.

Hence, the table could not be updated for the years 2024 and 2025.

GROWTH OF INDIAN ECONOMY

The GDP growth estimate for FY 2024 25 stands at 6.5%, reflecting a healthy yet moderated pace compared to the strong 7.6% growth recorded in the previous fiscal year. While this indicates a cooling from the previous years momentum, India continues to maintain its status as the fastest-growing major economy in the world. A robust 7.4% growth in Q4 FY25 further highlights the resilience of the Indian economy despite global headwinds and geopolitical uncertainties.

The government has continued its focus on infrastructure-led growth by maintaining a capital expenditure outlay of 11.11 lakh crore, equivalent to 3.4% of the GDP. This sustained investment in capital assets signals a long-term commitment to economic development. It is expected to boost infrastructure creation, stimulate private investment, generate employment, and enhance productivity across core sectors of the economy.

Asian economies such as India, China, Japan, and South Korea remain heavily dependent on oil imports. Consequently, any prolonged disruptions in global shipping routes or volatility in crude oil prices can significantly impact these economies. Rising oil prices pose an upside risk to inflation, potentially eroding consumer purchasing power and increasing operational costs for businesses.

This inflationary pressure creates a policy dilemma for central banks, as they must balance the need to contain inflation with the imperative to support economic growth. Therefore, the intricate linkages between global supply chains, oil price fluctuations, inflation, and interest rate policies continue to shape the macroeconomic outlook for oil-importing nations in Asia, including India.

The global growth outlook for the coming years, as per the estimates, shows a gradual improvement but remains below historical averages. Here are the key points:

1. Global Growth Estimates: The outlook for 2025 has been revised upward to approximately 3.0 %, primarily boosted by improved performance in the United States, China, and key emerging economies, along with a more favorable global trade and financial environment. The IMF further forecasts a modest uptick to 3.1 % growth in 2026.

2. Comparison with Historical Average: The projected growth rates for 2025 and 2026 are below the historical average of 3.8% observed during 2000-2019. This divergence is attributed to several factors: o Monetary Policy Normalization: In 2025, many central banks have either paused or gradually reversed earlier interest rate hikes, following signs of easing inflation. However, tight financial conditions persist, especially in emerging markets, potentially constraining investment and growth.

o Reduced Fiscal Space: Governments across both advanced and developing economies have significantly scaled back pandemic-era fiscal support, and high public debt levels are limiting the scope for expansionary spending, thereby weighing on short- to medium-term growth prospects.

o Weak Productivity Momentum: Despite advancements in digitalization and AI integration, underlying productivity growth remains subdued in many economies due to structural rigidities, skills mismatches, and limited capital deepening, affecting long-term economic potential.

3. Advanced Economies Outlook: In 2025, advanced economies are projected to witness a gradual recovery, following subdued growth in the previous year. The euro area, which faced weak economic activity and near-zero growth in 2024, is expected to rebound modestly, supported by improved demand and easing inflation. In contrast, the United States, after stronger-than-expected growth in 2024, is likely to experience a moderation in its expansion rate, as the effects of earlier monetary tightening and fiscal consolidation begin to take hold..

While growth forecasts for several major economies have been revised upward for 2025, the global growth trajectory remains below pre-pandemic averages, reflecting lingering structural challenges such as moderate productivity growth, geopolitical tensions, and the long-term impact of tighter monetary and fiscal policies.

Emerging market and developing economies (EMDEs) are expected to maintain stable growth through 2025 and 2026, with growth driven by domestic demand, resilient services sectors, and improving external conditions. However, regional disparities persist, as commodity-exporting nations may benefit from price upticks, while others remain vulnerable to capital flow volatility and external debt pressures. Here are the key insights:

1. Stable Growth Outlook: Emerging market and developing economies are projected to sustain a stable and resilient growth trajectory through 2025 and 2026, supported by strong domestic demand, expanding services sectors, and gradual easing of global financial conditions. Despite persistent global uncertainties such as geopolitical tensions, fluctuating commodity prices, and capital flow risks these economies continue to demonstrate robust economic activity and are expected to remain the primary contributors to global growth over the medium term

2. Regional Differences: There are notable regional differences in growth prospects:

o Asia: The region remains the primary engine of global growth, with India and select Southeast Asian economies leading the momentum, supported by strong domestic demand, investment in digital infrastructure, and continued structural reforms. Chinas growth, while moderating, is projected to remain stable amid policy support and a gradual rebalancing of the economy..

o Latin America: Growth remains uneven across the region. Countries such as Mexico and Brazil are witnessing modest recoveries, while others face persistent challenges related to inflation, fiscal imbalances, and political uncertainty, which may constrain their medium-term outlook.

o Africa: Sub-Saharan Africa is expected to grow at a moderate pace, with momentum driven by public investment, agriculture, and infrastructure expansion. However, debt sustainability concerns, climate-related shocks, and security issues in some regions could weigh on overall performance.

o Middle East: Economic outcomes in the Middle East are closely tied to oil market dynamics, with oil-exporting nations benefiting from stable prices. Efforts to diversify into non-oil sectors, particularly in Saudi Arabia and the UAE, continue to shape long-term economic resilience.

o Central and Eastern Europe: Growth in this region is projected to be moderate, supported by EU integration, foreign direct investment, and manufacturing exports. However, the outlook is subject to risks stemming from geopolitical tensions and energy market volatility.

3. Policy Implications: In 2025, policymakers across advanced and emerging economies are expected to prioritize strengthening economic resilience in the face of persistent global uncertainties. Focus areas include enhancing fiscal sustainability, managing inflationary pressures, and rebuilding monetary policy space following years of accommodative stances.

In summary, while emerging market and developing economies (EMDEs) are projected to maintain stable growth through 2025 and into 2026, the growth outlook remains uneven across regions. These variations are shaped by domestic economic fundamentals, policy responses to inflation and debt pressures, and exposure to external shocks such as commodity price volatility, global interest rate trends, and geopolitical developments.

Regions with strong fiscal frameworks, diversified economies, and robust domestic demand such as parts of Asia and Sub-Saharan Africa are better positioned to sustain momentum. In contrast, economies facing high debt burdens, structural bottlenecks, or political uncertainty may see slower recoveries and heightened vulnerability to global financial conditions.

OPPORTUNITIES & THREATS

In the evolving landscape of the Indian economy in 2025, marked by a strong focus on infrastructure development, manufacturing competitiveness, and global integration, your company continues to find its greatest opportunity in delivering value-added, high-quality lime products with precision, responsiveness, and superior service. These core strengths remain pivotal to the companys sustained growth and reputation.

The lime industrys growth outlook remains promising, driven by robust demand across multiple core sectors including Steel & Iron, Water and Wastewater Treatment, Chemical Processing, Pharmaceuticals, Paper & Pulp, and Construction. The Governments continued capital expenditure outlay of 11.11 lakh crore (3.4% of GDP) in FY 2024 25 underlines the potential for infrastructure-led industrial expansion, directly benefiting lime consumption.

Your company is well-aligned with Indias broader economic agenda, navigating increased competition and striving to integrate advanced technologies and operational excellence across its production and delivery systems. Despite operating within the limitations of finite resources, your company continues to innovate and adapt, reinforcing its competitive edge.

On the other hand, the lime industry faces persistent environmental challenges, particularly in managing emissions, sludge, and dust in compliance with tightening regulations. Additionally, global competition from low-cost international players and volatility in energy and raw material prices pose operational and margin pressures.

However, Indias abundant reserves of high-grade limestone, coupled with the rising recognition of Indian lime products in global markets, open avenues for export-led growth and increased foreign exchange earnings.

To capitalize on these opportunities and mitigate emerging threats, the company is committed to sustainability, strategic planning, and the adoption of eco-friendly technologies, thereby reinforcing its leadership position in the lime industry and contributing meaningfully to Indias industrial growth in 2025 and beyond.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

F.Y.	Hydrated Lime	Others	Transportation Revenue	Total
2024-25	36,04,68,966	5,18,79,092	3,58,78,604	44,82,26,662
%	80.43	11.57	8.00	100%

OVERVIEW & OUTLOOK

The Company maintains a highly competitive edge through meticulous selection of raw materials sourced from high-quality limestone. This strategic focus enables the Company to consistently produce superior materials that meet the exacting requirements of its customers. Emphasizing long-term customer satisfaction and support has been a cornerstone of the Companys operations for years.

The Company continues to capitalize on inherent opportunities, such as producing hydrated lime, quick lime, lime fines, and other value-added products, with a positive outlook for achieving robust outcomes.

Efforts to enhance product diversity and expand customer segments have significantly bolstered margins across all product lines. By enhancing operational capabilities and targeting value-added offerings, the Company has successfully catered to niche markets and strengthened its customer base. These initiatives have mitigated the impact of lower volumes to a certain extent.

Vigilant management of receivables and inventories has safeguarded the Company against potential losses from bad debts or inventory write-offs. Furthermore, focused efforts on optimizing working capital management have resulted in prudent reductions in inventory levels, receivables, and payables through rigorous control measures.

RISK AND CONCERNS

The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company.

Various activities undertaken to achieve the goals make the Company susceptible to various risks. It has to be recognized that risks are not merely the hazards to be avoided but, in many cases, offer opportunities which create value ultimately leading to enhancement of shareholders wealth, and ensuring sustainability of operations.

INTERNAL CONTROL SYSTEM

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFOMRMANCE

We are already excelling in area of manufacturing lime and also endeavouring in allied activities. The coming few years will be exciting and challenging at the same and your company will continue to strive for excellence with economic value addition. Your Company has recorded total income of Rs. 44,82,96,662/-, Net Loss for the Financial Year stood at Rs. 1,03,91,056/- and recorded an EBIDTA of Rs. 3,07,53,173/- as standalone basis for the financial year as on 2024-25. Financial performance of the Company for Financial Year 2024-2025 is summarized below: (Figure in rupees)

Particulars	2024-2025*	2023-2024*
Revenue from operations	44,78,26,923	44,96,79,800
Other Income	4,69,739	2,57,899
Total income	44,82,96,662	44,99,37,699
Profit before tax and Exceptional items	(34,84,193)	(75,41,284)
Exceptional items	-	-
Profit/ (Loss) before tax	(34,84,193)	(75,41,284)
Less: Tax Expenses
- Current Tax	-	-
- Deferred Tax	69,06,863	(16,84,655)
- Income tax of Previous years
Net Profit/ (Loss) For the Year	(1,03,91,056)	(58,56,629)
* Figures regrouped wherever necessary.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS

Our Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. Taking into this account, your Company continued to invest in developing its human capital and establishing its brand on the market to attract and retain the best talent. The company has over 50+ employees, skilled and unskilled combined, who are proficient and carry rich experience. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees.

SIGNIFICANT CHANGES

(1) Debtors Turnover

Debtors turnover ratio changed to 3.17 times of Revenues in FY.25 from 2.62 times of Revenues in FY.24.

(2) Inventory Turnover

Inventory turnover ratio stood at 3.29 in FY.25 as compared to 3.34 in FY.24.

(3) Interest Coverage Ratio

Interest coverage ratio stood at 0.79 in FY.25 as compared to 0.65 in FY.23.

(4) Current Ratio

Current Ratio stood at 1.44 in FY.25 as compared to 1.61 in FY.24.

(5) Debt Equity Ratio

Debt Equity Ratio stood at 0.89 in FY.25 as compared to 1.06 in FY.24.

(6) Operating Profit Margin (%)

Operating profit margin has decreased from 3.07% of revenues in FY.24 to 2.89% of revenues in FY.25.

(7) Net Profit Margin (%)

Net profit margin (PAT) has stood at -0.02 of revenues in FY.25 and -0.01 of revenues in FY.24. There is a variance of 78% in net profit ratio due to effect of deferred tax.

RETURN ON NET WORTH AS COMPARED TO IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Return on net worth has decreased at -4.98% in FY.25 as compared to -2.68% in FY.24.

Non-recurring expenses and broader economic conditions, such as inflation and geopolitical factors impacted the companys net income relative to its net worth, resulting in a decline in RONW. These factors collectively illustrate common industry dynamics affecting profitability in the mining and minerals sector.

CAUTIONARY STATEMENT

The report may contain certain statements that the Company believes are, or may be considered to be "forward looking statements" that describe our objectives, plans or goals. All these forward looking statements are subject to certain risks and uncertainties, including but not limited to, government action, economic development and risks inherent in the Companys growth strategy and other factors that could cause the actual results to differ materially from those contemplated by the relevant forward looking statements.

Date: 01/08/2025	For Raw Edge Industrial Solutions Limited
Place: Surat
	Sd/-	Sd/-
	Bimalkumar Rajkumar Bansal	Prashant Suresh Agarwal
	Managing Director	Director & CFO
	(DIN: 00029307)	(DIN: 10394966)