RBM Infracon Ltd Management Discussions

1. GLOBAL ECONOMY

Global economic growth remained steady in 2024 at 3.1% and is projected to improve marginally to 3.2% in 2025. Elevated interest rates, high government debt, and tighter fiscal conditions continue to weigh on overall activity. However, inflationary pressures have eased faster than expected due to improved supply-side conditions and continued monetary discipline.

Global headline inflation is estimated at 5.8% in 2024 and expected to fall furtherto 4.4% in 2025. The resilience of employment, strong household consumption, and easing inflation supported global momentum in the latter half of 2024. Nevertheless, political uncertainties, potential softening of labor markets, and a still-high interest rate environment may dampen business and consumer confidence in the near term.

(Source: IMF World Economic Outlook, January 2025; Euromonitor International Global Economic Outlook: Q3 2025)

2. INDIAN ECONOMY

India once again reinforced its position as the worlds fastest growing major economy, closing FY 2024-25 with GDP growth of 7.1% YoY (baseline scenario). Despite global headwinds, the economy remained resilient, driven by domestic demand, government-led infrastructure investments, and private sector capital expenditure.

Over the last four years, India has consistently delivered above-average growth (averaging 7.8%), supported by reforms, favorable demographics, and a strong services sector.

Looking ahead, India is projected to grow between 6.7% and 7.3% in FY 2025-26, supported by:

? Policy continuity following stable governance at the Centre. ? Improved global liquidity as central banks ease monetary policy. ? Rising capital flows and investments, especially in infrastructure and manufacturing.

? Stronger export demand, aided by synchronous global recovery and moderating inflation.

3. BUSINESS OVERVIEW

RBM Infracon Limited, established in 1992, is an 1SO 9001:2015 accredited specialist contractor providing comprehensive Construction, Maintenance, and Turnaround services across industries.

Key Sectors Served:

R Oil & Gas Refineries

Petrochemicals & Fertilizers Gas Cracker Plants

Power Plants (Coal, Gas & WHR-based) Cement, Chemicals, Sugar & Paper Plants Irrigation & Allied Industries

Core Services:

EPC-based Fabrication & Erection of Structural Works Tankage Works

Piping Fabrication & Erection (CS/SS/Alloy Steel, above & underground) Annual Rate Contract (ARC) Maintenance for Refineries & Petrochemicals Turnaround (Shutdown) Services for Power & Petrochemical Plants Blasting & Painting Works Insulation & Refractory Works Electrical & Instrumentation Services Wagon Tipplers and Raw Material Handling Systems

Over the past three decades, the Company has successfully executed projects for reputed clients including Reliance Industries Limited, Nayara Energy Limited, Tata Projects, L&T, Afcons Infrastructure Ltd., Chemie-Tech (Nigeria & Malta), GPPL Malta, and YARA Fertilizers.

RBM Infracon continues to prioritize safety and quality, implementing project-specific safety plans to ensure risk-free execution. The Companys skilled workforce, in-house resources, and modern equipment enable it to deliver projects with efficiency and reliability.

4. OPPORTUNITIES AND THREATS

Opportunities

. Strong Macroeconomic Backdrop Indias robust GDP growth, policy reforms, and global investor confidence present opportunities for infrastructure development.

. Government Policy Support Initiatives in infrastructure, urban development, and energy transition create a favorable business environment.

. Infrastructure Spending Increased public and private sector capital expenditure will generate demand across construction and allied industries.

Threats

. Global Slowdown Any downturn in global growth could reduce capital flows and impact demand.

. Funding Challenges Infrastructure projects require long-term capital; credit tightening or reduced FDI inflows could delay execution.

. Banking Constraints Cautious lending due to NPAs may restrict credit availability for infrastructure players.

. Labor & Supply Shortages Manpower availability, procurement delays, and raw material cost volatility continue to pose challenges.

5. RISKS AND CONCERNS

. Geopolitical Risks Conflicts and protectionist policies affecting supply chains and inflation.

. Competition Heightened competition in government contracts due to relaxed tendering norms.

. Sectoral Underperformance Power, Defence, and Shipbuilding remain underutilized, impacting order opportunities. e Energy Transition Risks Growing demand for sustainable models may require adjustments to business strategy. e Execution Risks Delays in land acquisition, work-front availability, and clearances may impact project timelines.

. Cybersecurity Risks Increasing vulnerability to ransomware and phishing attacks. e Climate Risks Extreme weather conditions (heatwaves, flooding, heavy rainfall) affect worker productivity, logistics, and overall execution.

6. FINANCIAL AND OPERATIONAL HIGHLIGHTS (FY 2024-25)

Particulars	Current . .	Previous Reporting	% of	Reasons
	Reporting Period	Period	Change
Current ratio	1.75	1.79	(2.22)
Current Assets	27,400.16
		20,900.84		)
Current Liabilities	15,624.92	11,653.54
Debt Equity Ratio Debt	0.09	0.02	295.57 :	As during the year under consideratio
	1,144.05	219.11
				n, there has been increase in profit and company ahs also raised funds in preferential Public Offer,
Shareholders Equity g i	12,158.00	9,211.05		! Due to which s equity has been increased during the year and whereas debt also decresed

 

Debt Service coverage ratio	16.67	10.42	59.89	As during the year under consideratio .n, there .:s increase in profit during the year unde:r ) consideratio n an d there has been more debt repayment in last year compared to current year.
Net Profit/(Loss) before tax	4,005.64	1,599.22
Add: Finance Cost	8438	10151
Add: Depreciation	217.99	12628
Less: Capital Exp. : Capif -	75024	256.86
EBITDA-CAPEX	3,557.77	1,570.15
Debt Service (Int+Principal)	213.45	150.62		Hence, Ratio changes considerably during the year under consideratio n.
Return on Equity Ratio	0.25	0.19	27.69
Net Profit	2,946.94
		1,109.43		-
Average Shareholders Equity	11,905.48	5723.16
			(241.05 : Inventory in the current period has increased remarkably in comparison to previous period due to increase in turnover and
Inventory Turnover Ratio	1.07	-0.76 N	)
Cost of Good Sold	5381.62	1,419.69
Average Inventory	5,039.10	1,875.06		:;Ede::yt:: year end which has resulted into drastically change in Ratio.

 

Trade Receivables turnover ratio	7.38	6.73	971	Turnover in the current year has incresed as compared to previous reporting period, with increase in receivables resulting in to incraese in trade receivable ratio as most of the bils are booked post half year.
Net Sales	32,174.58	12,972.76
Avg. Trade Receivables
	4,360.75	1,928.92
Trade payables turnover ratio	8.33	8.08	3.21 :
Total Purchases (Fuel Cost +				Due to increase in turnover correspondin g creditors and sub contractor expenses are also increased and corrospondin g effects is shown in Trade Payable Ratio.
Other Expenses)	24,977.89	7,901.12
Avg. Trade Payables
	2,996.75	978.35
Net capital turnover ratio	2.68	2.20	21.68	As during the year under consideratio n, there has been increase in profit and company ahs also raised funds in preferential Public Offer,
Sales	32,174.58	12,972.76
Avg. Capital Employed	12,022.29	5,898.29

 

Net profit ratio Net profit	9.16	8.55	710	Due to which shareholder s equity has been increased during the year and whereas debt also decresed :n current year, Profit and turnover has been increased drastically which has resulted into higher in Net Profit Ratio.
Sales	2,946.94	1,109.43
	32,174.58	12,972.76
Return on Capital employed	0.25	0.29 : (12.56)
Net Profit/(Loss) before tax	2,946.94	1,599.22
Add: Finance Cost	84.38
		101.51		-
Earnings before interest and tax	3,031.32	1,700.73
Avg. Capital Employed	12,022.29	5,898
		.29

7. OUTLOOK (FY 2025-26)

RBM Infracon Limited enters FY 2025-26 with confidence, supported by Indias robust infrastructure pipeline, government capex push, and increasing private investments.

The Company will continue to focus on:

. Strengthening its presence in high-growth infrastructure sAGMents.

. Expanding service capabilities to support energy transition and sustainability goals.

. Enhancing operational efficiencies and safety standards.

. Prudent financial management to maintain a strong balance sheet.

With a solid order book, a trusted client base, and a strong governance framework, RBM Infracon is well-positioned to deliver sustainable growth in FY 2025-26 while navigating global and domestic challenges.

	FOR RBM INFRACON LIMITED
sd/	Sd/-
JAYBAJRANG RAMAISHISH MANI	ADITYA JAY BAJRANG MANI
Managing Director	Whole time Director
DIN: 03417579	DIN: 08980569
Date: 26.08.2025
Place: AHMEDABAD