Rulka Electricals Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Global Economic Overview - FY 2024-25

The global economy in FY 2024-25 continued to navigate a landscape of divergent growth paths and elevated policy uncertainty, as highlighted in the IMFs January 2025 World Economic Outlook. Despite persistent geopolitical tensions and inflationary pressures, global growth remained steady at 3.3%, broadly unchanged from the previous year and slightly below the historical average of 3.7%.

Advanced economies, particularly the United States, outperformed expectations due to strong domestic demand, prompting an upward revision in growth forecasts. In contrast, several major economies, including parts of Europe and East Asia, faced downward revisions amid weak manufacturing activity, subdued consumer confidence, and lingering energy cost burdens.

Global headline inflation showed signs of moderation, projected to decline to 4.2% in 2025 and further to 3.5% in 2026, with advanced economies expected to return to target levels earlier than emerging markets. However, renewed inflationary pressures and policy-generated disruptions remain key risks that could interrupt the disinflation process and delay monetary easing.

Financial markets responded positively to the anticipated pivot in central bank policies, leading to:

• Eased financial conditions

• Rising equity valuations

• Buoyant capital flows to emerging markets (excluding China)

• Restored market access for several low-income and frontier economies

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The IMF cautions that medium-term risks remain tilted to the downside, emphasizing the need for prudent fiscal management, structural reforms, and stronger multilateral cooperation to sustain growth and stability.

This global backdrop offers cautious optimism for infrastructure and industrial sectors, particularly in India, where your Company continues to expand its footprint in electrical and fire-fighting installations.

(Based on IMF World Economic Outlook - January 2025)

India-Specific Economic Overview - FY 2024-25

Indias economy in FY 2024-25 continued to assert its position as the worlds fastest- growing major economy, demonstrating resilience amid global headwinds and domestic structural shifts. According to the National Statistical Office (NSO), real GDP growth is estimated at 6.4%, down from 8.2% in the previous fiscal year, reflecting a normalization of post-pandemic momentum and sectoral rebalancing.

Major Sectoral Trends is as below

• Agriculture and Allied Sectors: Real GVA growth surged to 3.8%, supported by favorable monsoon patterns and improved rural demand.

• Construction and Infrastructure: A standout performer, with real GVA growth of 8.6%, driven by public investment and private sector participation in urban development projects.

• Financial, Real Estate & Professional Services: Estimated to grow at 7.3%, reflecting strong credit demand and digital transformation across service platforms.

• Manufacturing: Faced headwinds due to weak global demand and supply chain disruptions, contributing to a moderation in overall growth.

Inflation and Fiscal Management

Retail inflation moderated to 4.6%, the lowest since FY 2018-19, aided by targeted fiscal and monetary policies. The government maintained fiscal discipline while supporting growth through strategic schemes like PLI, MSME revitalization, and infrastructure expansion.

Geopolitical and Strategic Positioning

India became the 4th largest global economy in 2025 and is projected to reach $7.3 trillion GDP by 2030, driven by the vision of Aatmanirbhar Bharat and proactive global engagement. The Ministry of External Affairs highlighted Indias expanding influence in multilateral forums, trade negotiations, and strategic partnerships.

Industry Overview - Electrical & Fire Fighting Turnkey Projects

Indias infrastructure and industrial services sector is undergoing a transformative shift, driven by ambitious public investment, private sector innovation, and evolving safety and sustainability standards.

Electrical Contracting & EPC Services

According to IBEFs Engineering Industry Analysis, the Indian electrical equipment market is projected to grow at a CAGR of 14.3% from FY24 to FY28, with an incremental value of Rs.6.44 lakh crore (US$ 76.24 billion). This growth is fueled by:

• Government Capex Push: The Union Budget FY26 announced Rs.11.21 lakh crore in capital expenditure, with major allocations for urban infrastructure, smart cities, and industrial corridors.

• FDI & Policy Support: 100% FDI is permitted in the engineering sector, and schemes like the Capital Goods Competitiveness Enhancement Program ( Rs.1,207 crore outlay) are boosting domestic manufacturing.

• Urban Infrastructure Development Fund (UIDF): Targeting Tier 2 and Tier 3 cities, UIDF is enabling bankable projects in warehousing, commercial complexes, and industrial parks-key domains for turnkey electrical contractors.

Fire-Fighting Installation & Safety Systems

Indias fire protection systems market is forecast to grow by US$ 1.81 billion at a CAGR of 5.8% between 2024 and 2029, according to Technavios 2025 report. Key trends include:

• AI & IoT Integration: As noted in ISR Magazines 2024 Fire Safety Trends, smart sensors, predictive analytics, and cloud-based platforms are redefining fire safety management.

• Remote Monitoring & Management: The rise of mobile-enabled systems allows stakeholders to oversee fire safety infrastructure from anywhere, improving response times and resource allocation.

• Sustainability & Compliance: Eco-friendly materials, green building certifications, and stricter regulatory mandates are driving demand for advanced fire suppression systems.

• Training & Certification: Industry players are investing in fire safety education, simulation-based training, and awareness campaigns to build a culture of proactive prevention.

Strategic Sectoral Alignment

The convergence of electrical contracting, fire safety, solar EPC, and data cabling reflects the integrated demands of Indias modern infrastructure. With rising investments in smart buildings, logistics hubs, and industrial automation, turnkey contractors are increasingly viewed as strategic partners in national development.

Industry Growth Drivers - Electrical & Fire-Fighting Turnkey Projects

The Indian electrical and fire safety contracting industry is poised for sustained growth, supported by macroeconomic momentum, demographic shifts, policy reforms, and technological advancement. The following key drivers are shaping the industry landscape in FY 2024-25 and beyond:

1. Economic Growth & Infrastructure Investment

Indias GDP growth remains robust at 6.4%, with infrastructure spending at an alltime high. The Union Budget FY26 allocated Rs.11.21 lakh crore in capital expenditure, with significant outlays for industrial corridors, smart cities, and logistics hubs-all of which require integrated electrical and fire safety systems.

2. Urbanisation & Non-Metro Expansion

Rapid urbanisation and the rise of Tier 2 and Tier 3 cities are fueling demand for turnkey contracting services. The Urban Infrastructure Development Fund (UIDF) is enabling bankable projects in warehousing, commercial complexes, and public infrastructure across non-metro regions.

3. Millennial Consumption & Smart Infrastructure

Millennials, now the dominant workforce and consumer segment, are driving demand for digitally enabled, energy-efficient, and safety-compliant infrastructure. This includes smart buildings, co-working spaces, and tech-integrated retail environments-all requiring advanced electrical and fire-fighting installations.

4. Rural Advancement & Electrification

India has achieved universal electrification, with rural power availability rising from 12.5 hours in 2014 to 21.9 hours in 2024, and urban areas reaching 23.4 hours. This expansion is creating new opportunities for turnkey contractors in rural industrial clusters, agro-processing units, and public facilities.

5. Government Commitment to Renewable Energy

India added 129 GW of renewable energy capacity since 2014, including 91 GW of solar and 27 GW of wind. The Ministry of New and Renewable Energy (MNRE) continues to promote solar EPC contracts, battery storage integration, and decentralized energy systems-directly benefiting electrical contractors with renewable capabilities.

6. Atma Nirbhar Bharat & Local Manufacturing

The Atma Nirbhar Bharat initiative is boosting domestic manufacturing of electrical panels, fire safety components, and smart cabling systems. With 100% FDI permitted in the engineering sector and PLI schemes supporting local production, turnkey contractors are gaining access to cost-effective, high-quality inputs.

7. Safety Compliance & Regulatory Push

Stricter fire safety norms across commercial, industrial, and public buildings are driving demand for certified fire-fighting systems. The rise of AI-based detection, remote monitoring, and cloud-integrated suppression technologies is reshaping the fire safety landscape-creating opportunities for tech-savvy turnkey providers.

Additional Growth Drivers for the Industry

1. Digital Infrastructure & Smart Cities Push

• The Smart Cities Mission has entered its advanced implementation phase, with over Rs.1.8 lakh crore sanctioned across 100 cities.

• Demand for intelligent electrical systems, IoT-enabled fire safety, and data cabling is surging in urban redevelopment and smart building projects.

2. Data Center & Warehousing Boom

• Indias data center capacity is expected to double by 2027, driven by AI, 5G, and cloud adoption.

• Warehousing and logistics parks require high-load electrical contracting, fire suppression systems, and maintenance services-all core to Rulkas offerings.

3. Green Building Certifications & ESG Compliance

• Corporates and developers are increasingly pursuing LEED, IGBC, and GRIHA certifications, which mandate advanced electrical and fire safety integration.

• ESG mandates are pushing companies to invest in energy-efficient panels, solar EPC, and sustainable cabling systems.

4. Skill Development & Workforce Formalisation

• Government schemes like PMKVY and Skill India are creating a more trained and certified workforce, improving execution quality and safety compliance.

• This supports contractors like Rulka in scaling operations without compromising standards.

5. Public-Private Partnerships (PPP) in Infrastructure

• PPP models in metro rail, airports, and industrial corridors are creating long-term opportunities for turnkey contractors.

• These projects often require bundled services-electrical, fire safety, solar, and data cabling-which Rulka is uniquely positioned to deliver.

6. Insurance & Risk Management Integration

• Fire safety systems are increasingly tied to insurance underwriting and risk audits, especially in industrial and commercial sectors.

• This elevates the importance of certified fire-fighting installations and proactive maintenance-a growing niche for trusted contractors.

Company Overview - Rulka Electricals Limited

Rulka Electricals Limited is a leading turnkey project contractor, offering comprehensive solutions in electrical and fire-fighting installations across India. With a commitment to quality, safety, and timely execution, the Company has built a strong reputation in delivering integrated infrastructure services to clients across industrial, commercial, retail, warehousing, and entertainment sectors.

Founded with a vision to empower Indias infrastructure landscape, Rulka specializes in:

• Electrical Contracting Services for industrial plants and commercial complexes

• Fire-Fighting Installation Projects compliant with national safety standards

• Solar EPC Contracts aligned with Indias renewable energy goals

• Electrical Panels and Smart Cabling Systems for high-load environments

• Turnkey Warehousing Projects including lighting, safety, and automation

• Maintenance Services ensuring long-term reliability and compliance

• Data & Voice Cabling Installations for modern digital infrastructure

With a pan-India presence and a growing workforce, the Company continues to expand its operational footprint through strategic investments, client-centric delivery, and a diversified service portfolio. Rulkas approach blends technical precision, regulatory compliance, and innovative execution, making it a trusted partner in Indias infrastructure growth story.

The Companys values are rooted in integrity, excellence, and adaptability, and its leadership remains committed to sustainable growth, stakeholder value creation, and nation-building through infrastructure.

Our company is in business of turn key projects contractor engaged in offering solution for all types of Electrical & Fire Fighting Turnkey Projects. Our company offers wide range of services like Electrical Solutions, Electrical Panels, Solar EPC Contracts, Turn Key Electrical

Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting and Data & Voice Cabling Installation across the Industrial Sector, Commercial, Retail and Theatre sector. We offer electrical contracting services for all types of industrial plants. Our Company was originally incorporated on May 30, 2013 as "Rulka Electricals Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies Maharashtra, Mumbai. Subsequently our Company was converted into Public Limited Company and name of company was changed from "Rulka Electricals Private Limited" to "Rulka Electricals Limited" vide fresh certificate of incorporation August 2, 2023 issued by the Registrar of Companies, Maharashtra, Mumbai. We have integrated operations which involve Designing, Supplying, Installation, Testing & Commissioning of the project. We also maintain the projects as per the Requirements. We have completed Warehouses projects across country. Also, we have completed Retail Stores projects, theatres project across country & many more Hospitals & Hospitality

Financial Overview

During the financial year 2024-25, the Company registered a robust growth in standalone revenue, reaching Rs.7,95,382.20 as compared to Rs.7,12,891.72 in the previous financial year-reflecting a year-on-year increase of approximately 11.57%. This performance highlights the Companys operational strength and strategic execution across key verticals. However, the Profit After Tax ("PAT") for FY 2024-25 stood at Rs.22,582.44, as against Rs.61,106.65 in FY 2023-24.

Key Ratio Outlook for FY 2024-25

Please refer to Note no. 38 of the Financial Statements.

Business Overview

Key Ratio Outlook for FY 2024-25

Building on our commitment to lifecycle support and system reliability, Rulka Electricals is strategically expanding its Operations & Maintenance (O&M) services to become a core pillar of our post-installation value proposition. In FY 2024-25, we aim to transition from reactive maintenance to predictive and performance-driven service models, ensuring that every client system operates at peak efficiency.

Key initiatives include:

• Deployment of specialized O&M teams across high-value industrial and infrastructure sites

• Integration of digital diagnostics and remote monitoring tools to enable realtime system insights

• Enhanced emergency response protocols for mission-critical installations

Our Annual Maintenance Contracts (AMCs) have been restructured to offer:

• Tiered service levels, allowing clients to choose packages aligned with operational intensity

• Dedicated technical personnel with domain expertise in electrical and fire safety systems

• Compliance-focused documentation and audit support, reinforcing regulatory alignment

These initiatives are designed not only to improve system uptime and safety but also to generate recurring revenue streams and deepen client retention.

ESG Alignment & Client Satisfaction

In line with our evolving ESG commitments, we are embedding sustainability and social responsibility into our service delivery:

• Energy-efficient maintenance practices to reduce carbon footprint across client sites

• Training and upskilling of local technicians, contributing to community development

• Waste minimization protocols during system servicing and upgrades

Client satisfaction remains central to our operational philosophy. In FY 2024-25, we are implementing:

• Quarterly feedback loops to capture client insights and improve service responsiveness

• Performance dashboards for AMC clients, offering transparency and measurable benchmarks

• Net Promoter Score (NPS) tracking, to monitor and enhance client loyalty

These efforts reflect our belief that long-term value creation stems from operational excellence, environmental stewardship, and trusted client relationships.

Human Resource Development and Industrial Research - FY 2024-25

In FY 2024-25, Rulka Electricals continues to uphold its Human-First philosophy, as envisioned by our Founder and Promoter, placing people at the heart of every strategic and operational decision. We recognize that organizational resilience and innovation stem from a skilled, engaged, and empowered workforce.

This year, our human resource strategy has evolved to focus on:

• Competency-based recruitment, targeting high-impact roles in engineering, project management, and compliance

• Structured onboarding and mentorship programs, ensuring seamless cultural and operational integration

• Skill acceleration tracks, including certifications in fire safety, electrical diagnostics, and digital maintenance tools

We have expanded our Learning & Development (L&D) framework to include:

• Cross-functional training modules, fostering versatility and leadership readiness

• Collaborations with technical institutes, enabling access to emerging industrial research and best practices

• Performance-linked learning incentives, encouraging continuous improvement and innovation

Internal Control and Adequacy - FY 2024-25

In FY 2024-25, Rulka Electricals has further reinforced its internal control framework to support operational integrity, regulatory compliance, and strategic decisionmaking. Our systems are designed to safeguard assets against unauthorized use or disposal, while ensuring that all transactions are subject to rigorous authorization, documentation, and audit trails.

This year, we have:

• Digitized key control processes, including procurement, inventory tracking, and vendor management

• Integrated compliance dashboards, enabling real-time monitoring of statutory obligations and internal KPIs

• Strengthened cross-functional oversight, enhancing coordination between finance, operations, and compliance teams

Our internal control mechanisms have been independently reviewed and validated by statutory auditors, affirming their adequacy, reliability, and scalability. In addition, we continue to engage external consultants with domain expertise in finance, governance, and risk management to benchmark our practices against industry standards and regulatory developments.

To ensure robust risk mitigation:

• Our Internal Audit function operates independently, reporting directly to the Audit Committee and the Board of Directors

• Audit findings are reviewed quarterly, with corrective actions tracked through structured follow-up mechanisms

• Whistleblower and grievance redressal systems have been enhanced to promote transparency and ethical conduct

These initiatives reflect our commitment to maintaining a resilient control environment, capable of adapting to business growth, regulatory changes, and stakeholder expectations.

Risk, Concerns and Mitigations

Our Company encounters various regulatory, environmental and business risks in its operations. We actively work towards prevention and mitigation of the risk to minimize its potential impact on our performance.

Workplace Safety and EHS Commitment

Our Environment, Health, and Safety (EHS) function has been further strengthened to meet evolving regulatory and operational demands. In FY 2024-25, we have:

• Digitized safety audits and compliance tracking, improving visibility and accountability

• Introduced behavior-based safety (BBS) programs, promoting proactive risk identification

• Conducted quarterly safety drills and refresher trainings, enhancing emergency preparedness

These initiatives reflect our unwavering commitment to employee well-being, regulatory compliance, and the cultivation of a safety-first culture across all project sites and offices.

Industrial Research and Innovation

We are actively investing in industrial research collaborations to enhance system design, energy efficiency, and lifecycle performance. Our focus areas include:

• Smart diagnostics for electrical systems, enabling predictive maintenance

• Fire safety innovation, including sensor-based alert systems and sustainable suppression technologies

• Process optimization studies, aimed at reducing installation time and improving cost-efficiency

By integrating human capital development with industrial research, we aim to build a future-ready organization that delivers excellence, safety, and innovation at scale.

Cautionary Statement

We want to stress that this report includes forward looking statements concerning anticipated future events, financial outcomes, and operational milestones of REL. These statements are based on assumptions and are subject to various risks and uncertainties. There is a significant risk that these assumptions, predictions, and other forward-looking statements may not accurately reflect future outcomes. Risks, Concerns & Risk Mitigation. Our Company encounters various regulatory, environmental and business risks in its operations. We actively work towards prevention and mitigation of the risk to minimize its potential impact on our performance. We urge readers to exercise caution and avoid placing undue reliance on forward-looking statements, as several factors could result in disparities between assumptions and actual future results and events. Therefore, this document is subject to the disclaimer and is qualified in its entirety by the assumptions, qualifications, and risk factors outlined in RELs Annual Report for FY24, as discussed in the Management Discussion and Analysis section.