Regent Enterprises Ltd Management Discussions

Industrial Structure and Developments

Indias Economic status for the year was remained stable. The edible oil sector is characterized by higher competitive intensity with the presence of a large number of national as well regional players. In the edible oil industry, companies have a combination of in-house crushing/refining and outsourcing. The competition in the edible oil industry has increased over the years, evident from the increasing pace of product launches and variants, greater marketing push by companies and their efforts to expand geographic presence.

Indias Economic status for the year has been stable. With Consumer price index and current account deficit under control, markets have rebounded. The Export market did not rise up to the expectations. The Economy has shown remarkable resilience to both external and domestic shocks. The country had good and timely rains which contributed to Countrys growth. Rupee has gradually appreciated to 85 levels after touching all time lows of 87. The Government of India in order to support farmers has increased customs duty by 20% in the month of Oct, 2024 which resulted in a big spurt in the prices of edible oils denting profitability in %age.

Your companys performance for the year 2024-25 may be viewed in the context of the above mentioned economic/ marketenvironment.

Opportunities and Threats

The demand for edible oils in India has shown a steady growth, driven by increasing population, rising income levels and living standards. Moreover, edible oils have a favourable demand growth outlook over the medium-to-long term, which is further supported by positive macro and demographic fundamentals. Within the edible oil sector, certain product segments/categories (such as cold pressed oils, organic ingredient-based categories etc.) that currently have low penetration levels and are gaining consumer acceptance offer higher growth prospects.

One of the threat is that edible oil companies face is the risk arising out of the volatility in the prices of raw materials (oilseeds), crude and refined edible oil, which may be influenced by trends in international commodity prices, currency fluctuations, domestic demand-supply dynamics and macro-economic trends. The domestic edible oil prices are directly linked to the prices of imported palm and soybean oil due to heavy reliance on imports and their substitutability with other oil varieties. While mustard oil is almost entirely produced within the country. Another economy threat is that Government of India may reduce customs duty which was increase in October, 2024 to control inflation.

The edible oil market is expected to be dominated by various national and multinational players due to the increasing import dependence of the country in the near future. Rice bran and multisource edible oil market are expected to be the fastest growing categories in the entire edible oil segment with Oils such as Mustard, Sunflower, Groundnut and Cottonseed tend to remain region specific in the near future with a moderate fluctuation in their prices.

Segment-Wise or Product-Wise Performance

In terms of the Ind AS, there is only one reportable segment i.e., edible oil segment. Hence the segment wise reporting is not applicable.

Outlook

The strong business profile drives a strong financial profile in the long term, the financial profile of an entity is also governed by the managements risk appetite and growth plans. An entity with higher profitability margins and returns on capital has greater ability to generate internal accruals, attract external capital, and withstand business adversity. The trends in operating margin and return on capital employed are analysed to establish the stability of cash flow generation and the sufficiency of the same vis-?-vis the entitys future debt-service obligations

We are optimistic of commencement of recovery in the sector in the coming year due to shift towards premium segment. Over the years we have focused on building robust sales processes like Selling to Helping, Training and Certification of sales staff, which will help us reap rewards in future as we are investing in brand building. The company is confident in spite of the possible moderation in prices in the industry, it will perform better in view of the strong fundamentals of the Indian companies and hope to improve its turnover.

Risks and Concerns

The company deals in trading, packaging & sales of Edible oils. This year despite the adverse circumstances, the company acted efficiently and neutralized the losses,. This was possible because of timely & swift actions taken by the management resulting in quick liquidation of the stocks in the falling markets and was able to come out relatively unscathed. It is drawn to your attention to the fact that the company has fared much better in the last Financial Year in comparison to other peers of this sector. The company converted diversity into opportunity by utilizing the increase in duty, in strengthing its brand equity. Key risks for the edible oils sector include risks from change in import-export regulations; change in the minimum support price (MSP) on oilseeds offered by the government; high dependence on monsoons and finally, the risk arising out of exchange rate fluctuations. Procurement of oilseeds at the right price and quantity, optimum utilization of processing units, their strategic location, a strong brand name and diversification of product offerings are likely to be the key success determinants for players.

The policies announced by the Government have been progressive and are expected to remain likewise in future, and have generally taken an equitable view towards various stake holders, including domestic farmers, industry, consumers etc. Adverse changes in disposable income may impact consumption pattern. Your company has multiprocessing capabilities to cater to the variances and changing consumer preferences. Also keeping in view the overall growth of the economy, emerging health consciousness and growing retail in India, it is expected that the packaged edible oil consumption will continue to outgrow the overall edible oil growth.

Internal Control Systems and their adequacy:

The company has adequate internal control systems to ensure operational efficiency, protection and conservation of resources, accuracy and promptness in financial reporting and compliance of law and regulations. The internal control system is supported by the internal audit process. The internal auditor reviews and ensures that the audit observations are acted upon. The Audit Committee of the Board reviews the Internal Audit reports and the adequacy and effectiveness of internal controls.

Financial Performance

The financial results of operations of your Company for the year under review are detailed under the caption performance forming part of the Directors Report. During the year, revenue from operations for the Financial Year 2024-25 is Rs. 7,49,24,83,987/- which is higher as compared to the previous year 2023-24 which was Rs. 6,72,67,25,982/-. Earning(Loss) before Tax (EBT) for the financial year 2024-25 is amounted to 1,63,63,341/- as compared to Rs. 1,46,11,334/- in the previous year 2023-24. Profit(Loss) after Tax (PAT) for the year 2024-25 is 1,02,51,257/- as compared to Rs. 64,74,229/- for the previous year 2023-24.

Human Resources:

The relationship with the employees continues to be cordial. The company recognizes the importance and contribution of its employees for its growth and development and constantly endeavors to train nurture and groom its people. The Company puts emphasis on attracting and retaining the right talent/competent person. The company places emphasis on training and development of employees at all levels and has introduced methods and practices for Human Resource Development. The company has 44 employees on permanent pay roll.

Details of Significant Changes

As required, the details of changes of 25% or more as compared to the immediately previous financial year in key financial ratios along with detailed reasons therefore are as under:

S.No. Particulars	Current Year 31.03.2025	Previous Year 31.03.2024	Reasons of change
1. Debtors Turnover	22.05	13.90	Due to strict credit policy
2. Inventory Turnover	0.02	0.02	Negligible
3. Interest Coverage Ratio	0.00	0.00	None
4. Current Ratio	3.62	2.42	Economies of volume, better utilization of cash flows and resources.
5. Debt Equity Ratio	0.00	0.00	None
6. Operating Profit Margin (%)	0.72%	0.13%	Due to higher operating profit during the year
7. Net Profit Margin (%)	0.14%	0.10%	Due to higher net profit during the year
8. Change in Return on Net Worth	0.03	0.02	Due to higher profit during the year

Cautionary Statement:

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.