Rishi Laser Ltd Management Discussions

The global economy in 2025 is navigating a complex and uncertain environment, shaped by slower growth momentum, shifting trade dynamics and evolving geopolitical realities. According to the IMFs April 2025 World Economic Outlook, global GDP is expected to expand by 2.8% in 2025, a moderation from 3.3% in 2024 and notably below the historical average of 3.8%. , This weaker trajectory reflects the impact of elevated trade tensions, policy unpredictability, and slower investment activity. Without the sharp tariff actions seen earlier this year, the baseline projection would have been closer to 3.2%-3.3% underscoring the significant , drag induced by protectionist measures.

Growth in advanced economies remains subdued. The United States is projected to grow at 1.8% in 2025 , down from 2.8% in 2024, while the Euro Area is expected to expand at a modest 0.8%, constrained by weak industrial output and tight financial conditions.

Spain, however, remains a relative outperformer within Europe, with growth estimated at around 2.5%, supported by robust domestic demand and services. In emerging markets and developing economies, growth prospects remain uneven. Chinas economy is forecast to moderate to 4.0% due to weaker exports and domestic real estate headwinds, while India is expected to expand at 6.4%, reaffirming its role as the fastest-growing major economy and a critical driver of global demand. Other Asian and African economies are expected to benefit from infrastructure investment, commodity demand and a gradual normalization of supply chains.

Global inflation is projected to continue its downward path, but at a slower pace than previously anticipated.

While headline inflation has eased from the 2022-23 peaks, underlying core inflation remains sticky in several advanced markets due to persistent wage pressures and supply-chain disruptions linked to trade policy shifts. Emerging economies, in contrast, are experiencing relatively faster disinflation, aided by lower commodity prices and stronger currency stabilization in select markets.

Risks to the global outlook are broadly tilted to the downside. Escalating geopolitical tensions, persistent tariff volatility, and a potential hardening of financial conditions could dampen investment sentiment and capital flows, particularly in vulnerable emerging economies. At the same time, climate-related disruptions and energy transition challenges add to long-term uncertainties. On the upside, stronger labour force participation, improved productivity from digital adoption and coordinated fiscal measures could provide resilience and lift medium-term growth.

The IMF underscores that the global economy is at a critical juncture, where the interplay between policy choices and structural shifts will define the trajectory for years ahead. Restoring trade predictability, ensuring macroeconomic stability and accelerating investment in sustainable and inclusive growth models are viewed as essential for reinforcing global confidence and securing durable economic expansion.

Indian Economy

Indias economy continues to demonstrate remarkable resilience and robust growth despite global headwinds. According to the provisional estimates released by the

National Statistical Office (NSO), real GDP growth for FY 2024-25 is estimated at 6.5%, broadly in line with the medium-term trend. The Reserve Bank of India

(RBI) projects a similar growth trajectory for FY 2025-

26, supported by strong domestic demand and stable macroeconomic conditions. The International Monetary Fund (IMF), in its April 2025 World Economic Outlook, has raised Indias growth forecast to 6.4% for both 2025 and 2026, reaffirming its status as the fastest-growing major economy. The Organisation for Economic Cooperation and Development (OECD) has also projected

Indias GDP growth at 6.3% in FY 2025-26, improving slightly to 6.4% in FY 2026-27, driven by resilient consumption and investment. On the higher side, Deloittes India Economic Outlook (May 2025) places growth in the range of 6.5%-6.7%, citing stronger demand momentum and fiscal support.

The growth momentum is being driven by robust private consumption, sustained investment in infrastructure and targeted government reforms. Agriculture is expected to recover with a normal monsoon, while the manufacturing sector continues to benefit from Production-Linked Incentive (PLI) schemes and global supply chain diversification. Construction activity remains buoyant, reflecting strong housing demand and government-led capital expenditure. Services, which account for over

50% of GDP, maintain healthy growth, led by financial, professional and digital services.

Inflation dynamics have been encouraging. Headline Consumer Price Index (CPI) inflation moderated to 2.8% in May 2025, its lowest in over six years, aided by softening food inflation and easing global commodity prices. This has provided space for monetary stability, with the RBI maintaining a balanced stance to anchor inflation expectations while supporting growth.

The financial sector remains robust. Bank credit growth continues to be healthy in the retail and services segments, while the overall asset quality of banks has improved, with non-performing assets declining to multi-year lows. The external sector has been resilient, with services exports offsetting weaker merchandise exports, and the current account deficit narrowing due to lower energy import costs and higher remittances.

Looking ahead, Indias growth outlook remains favourable, supported by domestic demand, strategic public infrastructure outlays, and rising private investment. However, near-term risks stem from global trade tensions, fiscal moderation linked to upcoming elections, volatile capital flows, and climate-related uncertainties. Despite these challenges, Indias macroeconomic fundamentals, diverse growth engines and policy support continue to position it as a leading driver of global growth.

Rishi Laser Limited – The Year 2024-25

During FY 2024-25, Rishi Laser delivered resilient performance, reinforcing its position as one of Indias most diversified steel fabrication companies. Revenue growth remained on track, supported by a robust order pipeline, scale and operational optimization.

The Company ended the year with a strong quarterly performance in Q4 FY25, recording revenues of about Rs. 38.16 Crores, representing growth of nearly 9.5% over Q4 FY24 (Y-o-Y). Full year Revenues for FY25 closed at Rs.151.41 Crores compared to Rs. 141.02

Crores in FY24, reflecting steady growth despite a challenging input cost environment. Profitability also remained stable, with margin expansion driven by efficiency initiatives, automation and cost discipline.

The Companys three core business verticals -

Construction & Mining Equipment, Power Distribution, and Rail Transportation - continued to be the primary contributors, accounting for approximately 68.61% of the topline, broadly in line with the previous year. Within these segments, the Company strengthened its presence in large assemblies and sheet metal parts for capital goods, infrastructure, and industrial applications.

Additionally, the prior diversification into segments such as wind energy, agriculture and textile machinery continued to support the revenue base and expand the addressable market.

FY25 was marked by significant capacity expansion.

The Company incorporated its new Bangalore (Malur) plant, spread across 3 acres with a built-up area of 70,000 sq. ft. and a CAPEX outlay of Rs. 15 Crores. This facility, designed for medium and heavy fabrication, is strategically located to serve the construction equipment sector and is expected to add around a Billion Rupee incremental topline over the next four years.

Parallelly, the Company entered the Tube Fabrication business, catering to applications in oil & gas, railways, airports, furniture and infrastructure and has already commenced supplies of handrails and steel assemblies to the construction equipment industry.

On the operational front, Rishi Laser accelerated its automation roadmap with robotic welding, smart manufacturing practices and Industry 4.0 adoption.

This has enhanced operational efficiency, reduced cycle times and supported margin expansion. The Companys export business remained strong, with an established footprint across the United States, Europe (Belgium, France, Romania), Australia, the Middle East, Singapore and other regions, highlighting its ability to meet international quality standards.

The workforce expanded to more than 750 employees, with a retention rate of nearly 90%. Continuous investment in skill development, training and workplace engagement contributed to a strong human capital foundation. Financially, the Company ended the year with a healthy balance sheet and cash flows, enabling growth investments while maintaining stability.

With a diversified industry presence, expanded capacities and improved operational strength, Rishi

Laser is well-positioned to capitalize on the ongoing infrastructure push, Make-in-India initiatives, and global supply chain diversification. Management remains confident of delivering double-digit revenue growth and margin expansion in the years ahead, increasing automation and new capacity additions.

1. Construction Equipment

The Construction Equipment vertical continued to be a cornerstone of Rishi Lasers operations in FY 2024-25, contributing the largest share to the

Companys Book. Revenue from this segment closed at Rs. 81.33 Crores, accounting for around 54% of the topline, broadly in line with the previous years contribution of 53% for FY23-24. This performance underscores the segments role as the primary revenue driver for the Company, supported by a resilient domestic market environment.

During FY25, the Indian construction equipment industry grew by about 3% Y-o-Y, with total equipment sales rising to approximately 140,191 units from 135,650 units in FY24. Domestic sales increased modestly by around 2.7%, while exports surged by approximately 10%, underscoring the global competitiveness of Indian-manufactured equipment, positioning India as the worlds second-largest construction equipment market (Construction Time). In parallel, the Confederation of Indian Industry (CII) projects the Indian construction equipment industry to grow at a CAGR of about 15% over the next five years, reinforcing demand visibility for heavy fabrication components.

For Rishi Laser, the vertical benefitted from strong relationships with OEMs and a diversified product offering across engine hoods, wheel loader frames, excavator structures and tanks. The commissioning of the Bangalore (Malur) plant – a state-of-the-art facility with a built-up area of 70,000 sq. ft. and a Rs. 15 Crore CAPEX – marked a milestone expansion during the year. Designed for medium and heavy fabrication, this plant is expected to strengthen the Companys supply chain efficiency in southern India.

Additionally, the Company entered the Tube Fabrication business during FY25, supplying handrails and structural assemblies to the construction equipment industry. This not only adds a New Revenue stream within the vertical but also aligns with rising demand for fabricated tubular components across infrastructure projects. Concurrently, the integration of automation and robotic welding technologies enhanced productivity and quality consistency, ensuring timely delivery of high-precision parts.

While the domestic market was buoyant, export demand in certain geographies such as Europe facedheadwindsduetoslowingconstructionactivity.

Despite this, the segment maintained resilience and growth, with Indias strong infrastructure pipeline providing a multi-year demand outlook. With its expanded capacity, technological upgrades, and positioning in critical assemblies for global OEMs,

Rishi Laser is well placed to capitalize on the sustained growth momentum in this sector.

2. Power Distribution

The Power Distribution vertical remained an important part of Rishi Lasers portfolio in FY 2024-

25, though revenues moderated to Rs. 18.08 crores from Rs. 19.85 crores in FY 2023-24. This vertical contributed around 12.0% of the Companys revenues, compared to 14.17% in the previous year, underscoring its continued relevance despite a modest decline. The growth was supported by robust domestic demand for fabricated enclosures, transformer components and switchgear tanks, as well as increased participation in renewable energy equipment manufacturing.

The broader Indian power sector witnessed another year of buoyant growth. Electricity demand grew steadily, aided by resilient economic activity, rapid electrification in rural and semi-urban areas, and weather-related peaks. According to the Ministry of Power, India added more than 30 GW of capacity in FY25 surpassing the 25.4 GW added in FY24, , with renewable energy leading capacity creation. The governments emphasis on renewable energy expansion, with the aim of achieving 500 GW of RE capacity by 2030, has been a decisive catalyst. Solar and wind energy installations alone contributed significantly to FY25 capacity additions, strengthening the outlook for ancillary fabrication suppliers like Rishi Laser.

Within this landscape, the Companys power vertical maintained its niche by supplying high-quality enclosures, canopies and structural components used in T&D networks, renewable power plants, and industrial electrical systems. The adoption of robotic welding, CNC precision bending and advanced surface treatment allowed Rishi Laser to achieve higher consistency and meet stringent quality requirements of both domestic and global clients.

Growth catalysts for this vertical remain strong.

Rising rural electrification programs, rapid adoption ofdistributedrenewablesystems,andmodernization of T&D infrastructure are boosting demand for steel-based fabrications. The governments continued fiscal outlay for grid modernization, coupled with private sector investment in renewable parks and smart distribution networks, has created long-term visibility.

However, challenges persist in the distribution space. Reforms in state-owned DISCOMs remain uneven, with tariff revision orders being implemented only partially across states, leading to structural inefficiencies in the sector. Cost pass-through delays, coupled with volatility in raw material pricing, continue to pose margin risks. Despite these challenges, the segments long-term trajectory remains firmly upward, underpinned by strong policy backing, rising power demand, and the structural transition to a sustainable and diversified energy ecosystem.

In summary, FY25 was a year of stable performance for Rishi Lasers Power Distribution vertical, with a slight dip offset by continued demand visibility and long-term growth prospects supported by Indias power and renewable energy expansion. With Indias power infrastructure and renewable energy ambitions accelerating, this vertical is positioned to remain one of the most dynamic growth engines for the Company in the coming years.

. Rail Transportation

The Rail Transportation vertical recorded a modest decline in FY 2024-25, though it continued to strengthen its strategic relevance within Rishi

Lasers diversified portfolio, further strengthening its contribution within Rishi Lasers diversified portfolio. Revenue from this segment is Rs. 3.98

Crores, compared to Rs. 4.67 Crores in FY24. This vertical now accounts for about 2.64% of the Companys standalone Revenues, reflecting both steady demand and the long-term growth potential of Indias expanding rail infrastructure.

The Company primarily supplies precision-fabricated components and assemblies to prominent metro coach manufacturers in India,

positioning itself as a trusted vendor in a sector that is at the forefront of the nations urban mobility transformation. With Indias urban population expected to touch 40% of the total population by 2030 (UN-Habitat), the Government has prioritized mass rapid transit solutions as a critical enabler of sustainable mobility. According to the Ministry of Housing and Urban Affairs, metro rail is now operational in 21 cities, and projects have been approved or are under implementation in 31 cities, with significant new corridors and extensions planned under the National Urban Transport Policy.

This rapid expansion has created strong demand for fabricated structures such as car-body components, underframes, bogie frames, brackets and large welded assemblies – all areas where Rishi

Laser has built robust capabilities. The Companys ability to execute high-precision fabrication using robotic welding, advanced CNC bending, and modular assembly lines ensures compliance with stringent safety and durability standards required in the metro sector. Furthermore, the emphasis on localization and Make-in-India policies by the Government has encouraged metro OEMs to increasingly source domestically manufactured components, creating long-term opportunities for

Rishi Laser.

In addition to domestic growth, India is emerging as a global hub for metro and railway component sourcing, with exports to Asia and Africa gradually picking up.This presents medium-term opportunities for the Company to align with international rail and metro projects as global players diversify their vendor bases.

The outlook for the rail transportation sector remains robust. The Union Budget 2025–26 has allocated record spending towards metro projects and urban transport, along with investments in high-speed rail corridors and modernization of rolling stock. With metro rail expected to expand across over 50 cities by 2035, the addressable market for fabricated assemblies is set to multiply.

In summary, the Rail Transportation vertical maintained its strategic importance in FY25, with steady demand drivers and strong long-term growth prospects despite a modest revenue decline. With a strong presence in the metro ecosystem, rising government investment, and increasing emphasis on domestic sourcing, this vertical is expected to remain a key growth lever for Rishi Laser over the coming decade.

Other Segments

In addition to its three core verticals, Rishi Laser has steadily built a diversified portfolio across several other industries, providing both resilience and incremental growth opportunities. During FY 2024-

25, these other business segments collectively contributed approximately 47.30 Crores, accounting for around 31% of the Companys revenues. These include supplies to sectors such as wind energy, agriculture equipment, textile machinery and airport cargo handling equipment, each of which presents unique long-term growth prospects.

The wind energy sector has emerged as an important customer segment, driven by Indias target of achieving 500 GW of renewable capacity by 2030, of which wind energy is expected to contribute at least 140 GW. Fabricated towers, nacelle structures and allied steel assemblies are witnessing sustained demand, and Rishi Laser has leveraged its precision fabrication capabilities to support leading OEMs in this space.

The agriculture equipment segment is another growth avenue, underpinned by Indias need for mechanization and modernization of farming practices. With agricultural mechanization levels in India still below 50% compared to over 90% in developed economies, the long-term demand potential remains high. The Company supplies precision components and assemblies for tractors, harvesters, and other farm equipment, thereby participating in a sector of critical importance to Indias rural economy.

The textile machinery industry also contributed to the Companys order book, as India continues to strengthen its position as one of the worlds largest textile and apparel exporters. With rising automation and modernization of textile mills, demand for fabricated machinery components has gained traction, offering Rishi Laser additional revenue diversification.

Furthermore, the Company supplies fabricated structures for airport cargo and ground support equipment, a niche segment that has grown with Indias rising air traffic and ongoing airport infrastructure modernization. The UDAN scheme and continued investments in airport expansion across Tier-2 and Tier-3 cities are expected to sustain demand in this vertical.

Collectively, these diversified segments enhance Rishi Lasers resilience by reducing dependence on any single vertical while also creating avenues for future scale. With Indias rapid infrastructure development, renewable energy push, and industrial modernization, these segments are expected to gradually expand their share in the Companys overall revenue mix in the coming years.

SWOT Analysis (FY25) A. Strengths

Rishi Laser has built a strong reputation as a trusted partner to leading OEMs across multiple capital goods and infrastructure-linked sectors. Its long-standing expertise in precision sheet metal fabrication, robotic welding, and assembly manufacturing provides a competitive edge in quality and reliability. The upcoming New Bangalore (Malur) facility during FY25 significantly enhanced its capacity for medium and heavy fabrication, positioning the Company closer to customers in southern India while adding scalability for future growth. The Companys diversified presence across construction equipment, power distribution, rail transportation, wind energy, agriculture machinery, and textile equipment provides resilience and reduces dependence on a single sector. Furthermore, the entry into the tube fabrication business during FY25 opens up new markets such as oil & gas, airports, and furniture, strengthening long-term growth potential. With an experienced management team, over

750 employees , and a 90% retention rate, the

Company continues to build a stable human capital base supported by training, skill development, and workplace engagement.

B. Weaknesses

Despite its robust positioning, the Company remains dependent on a limited number of large OEM customers for a significant share of revenues, which can create concentration risks. Margins are exposed to fluctuations in raw material prices, particularly steel, as price pass-through arrangements may not always be immediate. While the new Bangalore plant offers scale benefits, its full utilization will require ramp-up in demand and sustained order inflows, which may weigh on near-term return ratios. Additionally, exports – though diversified across geographies still account for a modest share of total revenues, limiting insulation against domestic demand cycles.

C. Opportunities

The Company is strategically aligned with Indias infrastructure-led growth trajectory. With a Rs. 11 lakh crore capital expenditure outlay in Union Budget 2025-26 and large-scale projects in highways, metros, railways, renewable energy and power transmission, the demand outlook for fabricated steel assemblies remains strong. Similarly, the renewable energy sector – targeting 500 GW by 2030 – is expected to drive multi-year opportunities in fabricated structures for solar, wind and hybrid systems. The urban transport sector, with metro projects expanding to over 31 cities in the near term and more than 50 cities by 2035, offers steady demand for precision rail coach components. Exports also present a growth frontier, as global OEMs look to diversify supply chains away from China, opening new vendor opportunities for Indian manufacturers with proven capabilities like Rishi Laser.

D. Threats

Global macroeconomic uncertainties remain a challenge. A slowdown in advanced economies, particularly the US and EU, could impact export demand, especially in construction and capital goods. Volatility in commodity prices, coupled with potential supply chain disruptions, could affect cost structures and margins. Policy risks also persist in the domestic power distribution sector, where uneven reforms in state-owned DISCOMs and delays in tariff adjustments could affect downstream demand. Additionally, geopolitical risks such as prolonged conflicts in Europe and the Middle

East, along with disruptions in major shipping lanes, can raise costs and create unpredictability in trade flows. Rising climate-related disruptions, including erratic monsoons and extreme weather, also pose risks to both the agriculture machinery segment and overall economic activity.

Outlook

Indias economic trajectory heading into FY 2025-26 remains robust and underpinned by strong domestic momentum and supportive policy measures. According to the Asian Development Bank (ADB), Indias GDP is projected to grow by 6.5% in FY 2025-26 and improve further to 6.7% in FY 2026–27, supported by resilient rural demand, above normal monsoon prospects and continued public investment stimulus. The International Monetary Fund (IMF) has also raised its forecast for India to 6.4% in 2025 and 2026 , reflecting improving global conditions and strong domestic drivers. Similarly, the World Bank projects growth at 6.3% in FY 2025-

26, reiterating that India will remain the fastest-growing major economy despite a slowing global environment. Growth will continue to be driven by manufacturing expansion, infrastructure-led investment, and resilient private consumption. A rebound in agriculture is expected given favourable monsoon projections, which will play a crucial role in sustaining rural demand. Additionally, strong credit growth, government-led infrastructure capex, and the Production Linked Incentive (PLI) scheme in key manufacturing sectors will further support industrial momentum. Insights from Deloitte highlight the structural drivers of Indias growth — including digitization, urbanization, energy transition and workforce productivity, which will continue to shape the long-term outlook.

That said, the environment also presents risks.

Geopolitical tensions, volatility in global capital flows, and persistent trade headwinds remain external challenges. Export growth is expected to be led primarily by services, while merchandise exports may continue to face headwinds from weak global demand and rising trade protectionism. On the domestic front, weather disruptions, commodity price volatility, and inflationary pressures could impact consumption trends. Uneven progress in state-level distribution reforms and fiscal pressures may also weigh on the power sector.

Overall, India is expected to sustain its role as the worlds fastest-growing major economy in the near to medium term, supported by government policy thrust, easing inflation, and strong private and public investments. This resilient macroeconomic backdrop provides a favourable environment for Rishi Laser to build on its recent momentum and capitalize on sector-specific growth opportunities.

Risks & Concerns

Rishi Laser operates in a raw material intensive industry, where steel and allied inputs account for a significant share of costs. Volatility in steel prices continues to be a critical risk, as sudden increases can compress margins if not passed on promptly to customers. While the Company actively manages procurement and maintains long-standing supplier fluctuations relationships, commodity price remain an inherent business challenge.

Exposure to foreign exchange movements is another area of concern, as the import of specialized steel grades, equipment, and machinery exposes the Company to currency volatility. A sharp depreciation fluctuations of the rupee could increase costs, while in export markets may affect realizations. Prudent hedging practices and diversification across domestic and international markets help mitigate this risk to an extent. The Company also remains subject to regulatory risks, as changes in government policies relating to steel imports, taxation, emission standards, and capital goods can affect both cost structures and demand patterns. While supportive infrastructure and manufacturing policies provide opportunities, frequent policy changes or delays in execution could create uncertainties. The competitive landscape in precision fabrication and capital goods supply remains intense, with both organized and unorganized players competing on price, quality, and delivery. This could pressure margins and market share, particularly in periods of subdued demand. Rishi Lasers emphasis on quality, automation, and customer relationships provides differentiation, but competitive risks remain material.

On a broader scale, geopolitical and macroeconomic uncertainties—including trade barriers, supply chain disruptions, wars, and sanctions – can directly or indirectly impact both exports and domestic demand. Additionally, climate-related risks, such as erratic monsoons and extreme weather events, pose downstream challenges in sectors like agriculture equipment and infrastructure.

Overall, while the operating environment presents multiple risks, the Company has put in place strong procurement practices, customer diversification strategies, and operational to mitigate their impact. Management continuously monitors these developments to ensure business continuity and long-term resilience.

Internal Control Systems and Their Adequacy

The Company has established a robust internal control framework that is commensurate with the size, scale, and complexity of its operations. These systems are designed to safeguard assets, ensure the accuracy and reliability of financial records, promote operational efficiency, and secure compliance with applicable laws, regulations, and corporate policies. The internal control mechanisms extend across all critical functions, including procurement, production, quality, finance, and human resources, ensuring a culture of discipline and accountability throughout the organization.

Internal audits are conducted at regular intervals by independent professionals, covering key operational and financial processes. These reviews assess the adequacy, effectiveness and adherence of internal controls and provide recommendations for strengthening systems where necessary. The findings of internal audits, along with managements responses, are placed before the Audit Committee, which closely monitors the implementation of corrective measures and ensures alignment with best governance practices. The Company continues to invest in automation, digital systems, and process enhancements to further strengthen its control environment. With the commissioning of new facilities and expansion into additional product segments, controls have been updated to address emerging risks and ensure business continuity. Periodic risk assessments and compliance reviews are integrated into the control framework to provide reasonable assurance against errors, fraud, and inefficiencies.

Overall, the internal control system of the Company is well-structured and adequate, offering a strong foundation for reliable financial reporting, prudent risk management, and sustainable value creation for stakeholders.

Financials

The Company delivered steady financial performance in FY 2024-25, despite a challenging operating environment. Total Revenue increased by 7.37 percent, rising from Rs.141.02 Crores in FY 2023-24 to Rs.151.41 Crores in FY 2024-25. Growth was primarily driven by the Construction Equipment and Others verticals, which offset modest declines in the Power Distribution and Rail Transportation segments.

The Companys major revenues continued to accrue from three verticals - Construction Equipment, Power

(Transmission & Distribution) and Rail Transportation - which together contributed 68.61% (Rs.103.40 Crores) of Revenues in FY 2024-25 compared to 70.49% (Rs.98.75 Crores) in FY 2023-24.

The Construction Equipment vertical contributed

Rs.81.33 Crores in FY 2024-25, compared to Rs.74.22 Crores in FY 2023-24, recording a increment of 9.58%, which remained the largest contributor to the topline, accounting for 53.97 percent of Revenues.

The Power vertical generated 18.08 crore in FY 2024-25, compared to 19.85 crore in FY 2023-24. Its share in total revenues stood at 12.0%, lower than 14.17% in the previous year, reflecting a modest decline. The Rail Transportation vertical generated 3.99 crore in FY 2024-25, compared to 4.67 crore in FY 2023-24. Its share in total revenues stood at 2.64%, lower than 3.34% in the previous year, reflecting a modest decline.

Revenues from the "Others" category - comprising businesses beyond the three major verticals — stood at Rs.47.31 Crores in FY 2024-25 as against Rs. 41.36 Crores in FY 2023-24, showing a growth of 14.38 percent.

Revenue from job work during FY 2024 25 amounted to Rs.1.23 Crores, compared to Rs.2.22 Crores in FY

2023-24. Job work receipts as a percentage of net sales stood at 0.82%, as against 1.59 percent in FY 2023-24. On the profitability front, the Companys EBITDA stood at Rs.13.76 Crores in FY 2024-25, compared to Rs.12.75 Crores in FY 2023-24, representing a growth of 7.92%. The EBITDA margin improved to

9.09 percent, as against 9.04 percent in the previous year, reflecting strong cost optimization and operational efficiency measures. Profit After Tax (PAT) for the year closed at Rs.8.24 Crores, from Rs.8.73 Crores in FY

2023-24, with PAT margin 5.45 percent compared to 6.19 percent last year.

Expenditure

The Company continued its focus on cost and efficiency management in FY 2024-25. Raw material consumption rose to Rs. 80.37 Crores, up from Rs. 77.68 Crores in the previous year, driven by higher production volumes.

Employee benefit expenses increased to Rs. 26.68 inflationary Crores (from Rs. 23.04 Crores), reflecting wage adjustments and business expansion. Other expenses stood at Rs. 30.60 Crores, compared to Rs.

27.55 Crores in FY 2023 24, in line with operational scale-up across verticals.

Finance costs were contained at Rs. 2.55 Crores, slightly higher than Rs. 2.30 Crores last year but still indicative of a disciplined debt profile. Depreciation and amortization amounted to Rs. 2.93 Crores, marginally higher than the Rs. 2.49 Crores recorded in the previous year.

Overall, the Companys disciplined expenditure management supported margin stability and underpinned its financial performance in FY 2024-25.

Earnings

Earnings before Interest, Depreciation and Tax (excluding other income) stood at Rs.13.76 Crores in

FY 2024-25 compared to Rs.12.75 Crores in FY 2023-24, reflecting a growth of 7.92%. This improvement was driven by a combination of steady revenue growth, better procurement discipline, and continued efficiency gains across operations.

Profit before Tax (PBT) before exceptional items for FY 2024-25 stood at Rs.8.28 Crores, compared to Rs.7.97 Crores in the previous year, recording a growth of 3.89% Profit after Tax (PAT), however, was . Rs.8.25 Crores as against Rs.8.73 Crores in FY 2023-24, reflecting a decline of 5.50 percent . The moderation in net profit was primarily attributable to a higher effective tax outgo and marginal increases in finance charges during the year.

Working Capital, Ratios and Capital Efficiency

In FY 2024-25, Rishi Laser maintained a disciplined approach to working capital management. Inventory turnover improved to 7.06x, reflecting efficient stock utilization, while debtor days reduced to 40, highlighting stronger receivable cycles and client engagement. The overall working capital cycle stood at 117 days, supported by faster collections and leaner inventory. The Company sustained a healthy Current Ratio of 1.31x, indicating strong liquidity.

Return on Capital Employed (ROCE) stood at 12.31% in FY 2024-25, compared to 16.05% in FY 2023-24, reflecting a moderation primarily on account of higher capital employed following capacity expansion.

Return on Equity (ROE) stood at 11.57% in FY 2024-25, compared to 16.19% in FY 2023-24, reflecting a moderation due to higher equity base and lower net profitability. The Interest Coverage Ratio strengthened to 4.25x, reaffirming the Companys robust debt servicing capability. While PAT growth was moderated by taxation, operating performance remained resilient, driven by prudent cost management and operational efficiency.

Looking ahead, the Company expects to sustain

EBITDA momentum, supported by steady demand from infrastructure-linked sectors, continued efficiency gains, and disciplined financial management. These factors position Rishi Laser to further improve profitability and create long-term shareholder value.

Cash Flow

Net cash flow from operating activities stood at Rs. 8.85 crore in FY 2024-25, compared to Rs. 10.94 crore in

FY 2023-24. The decline was primarily on account of higher working capital requirements, despite healthy profitability. Operating profit before working capital changes increased, but trade receivables and payables movements, alongside higher other current assets, absorbed a larger portion of cash during the year. Net cash used in investing activities amounted to Rs. 17.31 crore in FY 2024-25 as against Rs. 7.57 crore in FY 2023-24. The increase was primarily attributable to higher capital expenditure of Rs. 14.29 crore, mainly towards capacity augmentation and modernization, coupled with fresh investment in current instruments.

Net cash from financing activities turned positive at Rs. 4.82 crore in FY 2024-25 compared to an outflow , of Rs. 0.12 crore in FY 2023-24. This was driven by fresh borrowings of Rs. 7.46 crore, coupled with proceeds from issue of share warrants of Rs. 3.00 crore, partly offset by scheduled repayments and finance charges.

Overall, the Company reported a net decrease of Rs. 3.65 crore in cash and cash equivalents during FY 2024-25, taking closing cash balances to Rs. 1.60 crore as against Rs. 5.25 crore in the previous year.

The movements reflect a combination of increased investment activity and moderate leveraging, aligned with long-term growth plans.

Cautionary Statement

Statements in the management discussion and analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government Regulations, tax laws and other statutes and incidental factors.

GENERAL SHAREHOLDER INFORMATION:

GENERAL MEETINGS:

Day, time and Venue of Last Three Annual General Meetings:

29^th AGM – Friday at 11.00 a.m. on 17.09.2021 through Video Conferencing. 30^th AGM – Friday at 11.00 a.m. on 23.09.2022 through Video Conferencing. 31^st AGM – Friday at 11.00 a.m. on 08.09.2023 through Video Conferencing.

Forthcoming General Meeting:

33^rd Annual General Meeting: Through Video Conferencing (VC)/Other Audio Visual Means (OAVM).

Day : Friday

Date: 12.09.2025

Time: 11.00 a.m.

Book Closure date for 33^rd Annual General Meeting:

6^th September, 2025 to 12^th September, 2025 (Both days inclusive)

Special Resolutions

During the three previous Annual General meetings following Special Resolutions were passed:

Particulars	Date of Meeting	Whether Special	Details of the Special Resolution
		Resolution passed
30th AGM	23rd September, 2022	Yes	1. To approve re-appointment and
			remuneration of Mr. Harshad Patel (DIN:
			00164228) as Managing Director of the
			Company.
			2. To approve sale of undertaking of the
			Company.
			3. To approve re-appointment and
			remuneration of Mr. Harshad Patel (DIN:
			00164228) as Managing Director of the
			Company.
			4. To approve sale of undertaking of the
			Company.
31st AGM	8th September, 2023	No	-
32nd AGM	30th August, 2024	Yes	1. Re-appoint Mrs. Sheela Ayyar (DIN:
			06656579) as an Independent Director for
			the second term.
			2. To appoint Mr. Kirti Rathod (DIN: 00377056)
			as an Independent Director of the Company.

Extra-Ordinary General Meeting:

During the year, Extraordinary General Meeting was held on Friday, 25^th October, 2024.

Postal Ballot:

During the year, no resolution was passed under postal ballot.

• DISCLOSURES:

The Company is in compliance with all mandatory requirements under SEBI (Listing Obligations and Disclosure

Requirements), Regulations, 2015 as far as it is applicable to the Company. Certain provisions which are exempted for the Company are complied to the extent they are applicable under different statute or law and certain provisions are voluntarily adopted as a good Corporate Governance practice.

There were no cases of non-compliance by the Company except below:

Fine of Rs. 2,000/- was levied by the BSE Ltd. for Non-submission of the Annual Report within the period prescribed under Regulation 34 of Listing Regulations vide email dated 30^th October, 2023. The Company made the payment of the same dated 8^th November, 2023.

As mentioned above certain provisions of the Listing Regulations are not applicable to the Company since it has not attended the threshold of minimum paid up capital and net worth, still the Stock Exchange has levied aggregate fine of Rs 8,42,000/- by the BSE Ltd, ("the Stock Exchange") for non-compliance of the provisions of regulations 27 (2) and 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Listing Regulations") pertaining to, (a) Non-submission of the Corporate Governance Compliance Report within the period provided under the said regulation and (b) Non-compliance with submission of Secretarial

Compliance Report for the financial year 2023-24.

Your Company has represented to the Stock Exchange, that the provisions of Chapter IV of the Listing Regulations were not applicable to the Company during the financial year, since on the last day of previous financial year, the Companys paid up equity share capital did not exceeded Rupees Ten Crore and its net worth did not exceeded Rupees Twenty Five Crore, a condition precedent for the applicability of Chapter

IV of the Listing Regulations, and has accordingly made a written representation to the Stock Exchange for withdrawal of fine levied. Based on the representations, BSE has withdrawn all the penalties levied.

During the year under review, besides the transactions mentioned elsewhere in the Annual Report, (Related Party Transactions) there are no transactions of material nature with the Promoters, the Directors or the

Management, their Subsidiaries or Relatives etc. that had any potential conflict with the interest of the Company at large.

The Company follows Accounting Standards issued by the Institute of Chartered Accountants of India and in the preparation of financial statements, the company has not adopted a treatment different from that prescribed in any Accounting Standard.

The statement of uses/application of funds by major category were disclosed at the relative Audit Committee Meetings. There was no uses/application of funds for the purpose other than for which the same was prescribed.

MEANS OF COMMUNICATION:

The Company has been publishing the Unaudited Quarterly Results and Audited Annual Results in Business Standard and Navakaal.

The Company has been displaying the Quarterly and Half Yearly Results on the website of the Company viz. www.rishilaser.com.

The Company has not made any presentations to institutional investors or to the analysts.

FINANCIAL CALENDAR: Financial Year:

The financial year of the Company is from April 1 to March 31, each year.

Publication of Unaudited/Audited Results:

Quarter/Year Ending	Reporting date	Type of Result
June 30th 2024	Within 45 days from the end of quarter	Unaudited
September 30th 2024	Within 45 days from the end of quarter	Unaudited
December 31st 2024	Within 45 days from the end of quarter	Unaudited
March 31st 2025	Within 60 days from the end of the quarter	Audited

STOCK MARKET DETAILS:

Listing on Stock Exchange:

The shares of the Company are listed on BSE.

STOCK CODE:

Physical Segment 526861

CDSL/NSDL ISIN NO INE988D01012

STOCK MARKET DATA FOR THE YEAR 2024-25

MONTH	EQUITY SHARE PRICE OF RISHI LASER LIMITED		BSE SENSEX
	HIGH	LOW	HIGH	LOW
APRIL 24	99.99	92.60	75124.28	71816.46
MAY 24	108.83	79.00	76009.68	71866.01
JUNE 24	153.65	89.45	79671.58	70234.43
JULY 24	177.70	131.00	81908.43	78971.79
AUGUST 24	174.50	140.00	82637.03	78295.86
SEPTEMBER 24	172.65	131.50	85978.25	80895.05
OCTOBER 24	166.50	139.25	84648.40	79137.98
NOVEMBER 24	157.50	138.00	80569.73	76802.73
DECEMBER 24	163.00	140.00	82317.74	77560.79
JANUARY 25	159.00	120.95	80072.99	75267.59
FEBRUARY 25	146.35	98.10	78735.41	73141.27
MARCH 25	152.00	88.00	78741.69	72633.54

• COMMUNICATION DETAILS: Compliance Officer of the Company:

Name:Ms. Vandana Patel, Company Secretary and Compliance Officer

Address Rishi Laser Limited 612, Veena Killedar Industrial Estate, 10-14, Pais Street, Byculla (W), Mumbai 400011. : Tel No.: 022-23075677/23074585

Email: investors@rishilaser.com

Registrar and Transfer Agents (for Physical as well as for Electronic Transfers):

Name Adroit Corporate Services Private Limited :

Address: 17/20, Jaferbhoy Industrial Estate, 1st Floor, Makwana Road, Marol Naka, Mumbai 400059 Phone No.: 022-42270400/ 42270422/42270423 : Fax No. 022-28503748 Email id: info@adroitcorporate.com Website: www.adroitcorporate.com.

Communication to Members

Members may please note that SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/ CIR/2022/8 dated 25^th January, 2022 has mandated the companies to issue securities in demat form only while processing certificate, service requests viz. Issue of duplicate securities Claim from Unclaimed Suspense Account; Renewal / Exchange of securities Endorsement; Sub-division / Splitting of securities certificate; Consolidation certificates of securities / folios; Transmission and Transposition. Accordingly, members are requested to make service requests by submitting a duly filled and signed Form ISR - 4, the format of which is available on the Companys RTA Adroit Corporate Services Private Limited at www.adroitcorporate.com. Members holding shares in physical form are requested to dematerialize their holding at the earliest to get inherent benefits of dematerialization and also considering that physical transfer of equity shares / issuance of equity shares in physical form have been disallowed by SEBI.

Restriction on transfer of shares held in physical form

The attention of members is drawn to SEBI Circular no. SEBI/LAD-NRO/GN/2018/24 dated 08th June, 2018 whereby companies have been directed not to effect transfer of securities w.e.f. 01st April, 2019 unless the same are held in dematerialized form with a Depository (except in case of transmission or transposition of securities).

While members are not barred from holding shares in physical form, we request the shareholders holding shares in physical form to dematerialize their holding at the earliest in case they want to effect any transfer of shares.

Share Transfer System

The Companys equity shares are compulsorily traded on in dematerialised form as per the SEBI guidelines. Securities of the listed companies can be transferred only in dematerialized form w.e.f. April 1, 2019. Further, SEBI vide its Circular No. SEBI/ HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated January 25, 2022, mandated all listed companies to issue securities in dematerialized form only, while processing the service request of issue of duplicate securities claim from Unclaimed Suspense Account, renewal/ exchange of securities endorsement, sub-division/splitting of securities certificate, consolidation of securities certificates/ folios, transmission and transposition.

In view of the same and to eliminate all risks associated with physical shares and avail various benefits of dematerialisation, Members are advised to dematerialise the shares held by them in physical form. Members can contact the Company or RTA, for assistance in this regard.

Also, share transactions in electronic form can be effected in a much simpler and faster manner. After a

of a sale/purchase transaction from the broker, shareholders should approach the Depository

Participant (‘DP) with a request to debit or credit the account for the transaction. The DP will immediately arrange to complete the transaction by updating the account.

Shareholders should communicate with Adroit Corporate Services Private Limited, the Companys Registrars and Transfer Agent (‘RTA) quoting their folio number or Depository Participant ID (‘DP ID) and Client ID number, for any queries relating to their securities.

The Directors and certain Company officials (including Chief Financial Officer and Company Secretary) are authorised by the Board severally to approve transfers, which are noted at subsequent Board Meetings.

Dematerialization of shares

The equity shares of the Company are listed on BSE. The Company has an agreement with the National

Securities Depository Limited ("NSDL") and Central Depository Services (India) Limited ("CDSL") for providing depository services for holding the shares in dematerialized mode. The ISIN of the Company for its shares is INE988D01012. As on 31^st March, 2025, total 90,41,485 shares representing 98.36% of the Companys shares are held in demat form in the depositories.

Outstanding GDRS / ADRS / Warrants / Any Other Convertible Instruments

The diluted equity share capital of the Company upon conversion of all the outstanding convertible instruments will become Rs. 9,99,26,000/-, which includes 8,00,000 warrants issued on Preferential basis, which can be converted into equivalent number of Equity Shares of the Company by the allottees by payment of the balance Warrant Issue Price by 6^th May, 2026.

SHAREHOLDING PATTERN AS AT MARCH 31, 2025:

Category	No. of Shares Held	% to paid up capital
Promoters	1455803	15.84
Bodies Corporate (Indian)	723740	7.87
Bodies Corporate (Overseas)	614950	6.69
Non Resident Indians (Individual)	189472	2.06
Public (Other than listed above)	6208635	67.54
Total	9192600	100

DISTRIBUTION OF SHAREHOLDING AS AT MARCH 31, 2025:

No. of Shares	No. of Shareholders	% of Total	No. of Shares	% of Total
0-500	4311	80.2	544412	5.92
501-1000	416	7.74	337097	3.67
1001-2000	256	4.76	395420	4.3
2001-3000	87	1.62	227292	2.47
3001-4000	62	1.15	225179	2.45
4001-5000	40	0.74	187433	2.04
5001-10000	92	1.71	705272	7.67
10001 and above	111	2.07	6570495	71.48
		100	9192600	100

• PLANT LOCATIONS:

Unit	Address
Pune Unit- II	Gat No.229, AlandiMarkal Road, Village-Markal, Taluka-Khed, Dist-Pune - 412105
Vadodara-Savli	Plot No 578 to 587, GIDC, Savli, Vadodara - 391770
Kundli	428, EPIP Industrial Estate ,Kundli, Dist-Sonepat (Haryana)
Bommsandra Unit – I	Site No. 145-146, 4th Phase, Bommsandra Industrial Area, Tal-Anekal,
	Bangalore - 560099
Bommsandra Unit – II	Plot No. 140 Shed No. 2, Ground Floor, 4th Phase, 7th Road, Bommsandra
	Industrial Area, Banglore Urban, Karnataka, 560099
Chennai	No: 68 Plot No: 1 to 8, Varadharajapuram,Chennai Bangalore Highway,
	Nazerethpet, Poonamalle, Chennai-600123