Sandhar Technologies Limited Management Discussions

Industry Snapshot: The sale of Passenger Vehicles has been 43,01,848 units in

The Indian Automobile Industry continued its steady performance in FY2024–25, driven by healthy demand, infrastructure investments, supportive Government policies, and continued emphasis on sustainable mobility. Passenger

Vehicles, Two-Wheelers and Three-Wheelers grew in FY 2024-25 compared to FY 2023-24, but growth rates have varied across segments.

In FY2024-25, the Government of India introduced the PM

E-DRIVE scheme and PM e-Sewa schemes that underscores the firm commitment of the Government towards promoting sustainable mobility. Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBIs rate cuts, will help in supporting consumer confidence and demand across segments.

The industry manufactured a total of 3,10,34,174 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles in April 2024 to

March 2025, as against 2,84,39,036 units in April 2023 to March 2024 with an increase of 9.13%.

April-March 2025, compared to 42,18,750 units in April-March 2024, increased by 1.97%.

The overall sale of Commercial Vehicles has been 9,56,671 units in April-March 2025 compared to 9,68,770 units in April- March

2024, decreased by 1.25%.

The sale of Three-wheelers has been 7,41,420 units in April-

March 2025 compared to 6,94,801 units in April-March 2024, increased by 6.71%.

The Two-wheeler sale has been 1,79,74,365 units in April-March 2024, compared to 1,58,62,087 units in April-March 2023, increased by 13.32%.

The overall exports have been 53,63,089 units in April-March 2025 compared to 45,00,494 units in April-March 2024, increased by 19.17%.

Passenger Vehicles exports increased by 14.62%. Commercial Vehicles, Three-Wheelers and Two-Wheelers increased by 23.05%, 2.31% and 21.40% respectively in April-March 2025 over the same period last year.

The performance of the Company for the year ended the 31^st March 2025 is as per the summary given below:

Total Revenue: Total Revenue (including inter-unit/inter-Company stock transfers) for the year ended the 31^st March 2025 at Rs. 4,243.77 Crs as against Rs. 3,832.53 Crs in year ended the 31^st March 2024, thereby representing a growth of 11%. After elimination of the inter-unit and inter-Company transactions, the Total Revenue at Consolidated level stood at Rs. 3,901.04 Crs for the year ended 31^st March 2025 as against Rs. 3,531.90 Crs in the last year, thereby registering a growth of 10%.

The total contribution of the Subsidiaries to the consolidated Revenue has been Rs. 964.83 Crs in the year ended March 2025 as compared to Rs. 805.65 Crs in the previous fiscal year, constituting 24.73% and 22.81% of the Total Revenue, respectively. EBITDA: At the Consolidated level, the Company registered an EBITDA of Rs. 399.79 Crs in the year ended March 2025 as compared to Rs. 351.40 Crs in the previous year, thereby registering a growth of 13.77%.

The total contribution of the subsidiaries in the Consolidated EBITDA increases to Rs. 99.34 Crs for the year ended March 2025 from Rs. 87.96 Crs for the year ended March 2024 thereby contributing 24.85% to the total Consolidated EBITDA as against 25.03% in the same period the last year.

At Consolidated level, the manufacturing cost as a Percentage to Total Net Revenue from Operations (net of GST) stood at

82.69% in the FY25 as compared to 82.89% in the FY24.

At Standalone level, the manufacturing cost as a Percentage to Total Net Revenue from Operations (net of GST) stood at

84.76% in the FY25 as compared to 85.22% in the FY24.

At Consolidated level, Personnel, Selling, Admin & General

Cost are lower at 8.97% in the FY25 as compared to 9.00% in the FY24.

At Standalone level, Personnel, Selling, Admin & General Cost are lower at 7.52% in the FY25 as compared to 7.23% in the FY24. Foreign exchange gain arising out of trade operations amounted to Rs. 0.08 Cr. in the year FY25 as compared to gain of Rs. 0.13 Cr. in the previous year.

At Consolidated level, the Finance Costs increased to Rs. 56.61 Crs (1.46% of Net Revenue) for FY25 versus Rs. 51.52 Crs (1.46% of Net Revenue) in the FY24.

At Standalone basis, the Finance Costs increased to Rs. 20.49 Crs (0.70% of Net Revenue) for the FY25 versus Rs. 13.79

Crs (0.51% of Net Revenue) in the FY24. The interest cost on working capital loans and bill-discounting charges stood at Rs.

8.57 Crs for the FY25 as compared to Rs. 2.78 Crs in the FY24.

The average working capital borrowing at Standalone level increased by Rs. 105.88 Crs from Rs. 57.92 Crs in March 24 to Rs. 163.80 Crs in March 25.

At Consolidated level, the Term Loans as at the 31 March 2025

Investments: stood at Rs. 391.27 Crs versus Rs. 392.20 Crs as at 31^st March 2024. Outstanding working capital loans at the Consolidated level stood at Rs. 429.96 Crs as against Rs. 232.48 Crs as at the

31^st March 2024.

Outstanding Term Loans on Standalone basis, stood at Rs.

90.94 Crs as at the 31st March 2025 vs Rs. 119.06 Crs. as at the

31^st March 2024.

Outstanding working capital loans on Standalone basis have been Rs. 163.80 Crs as at 31st March 2025 versus Rs. 57.92 Crs as at the 31^st March 2024.

At Consolidated level, the Receivables as at the 31^st March 2025 stood at Rs. 557.30 Crs versus Rs. 457.53 Crs as at the 31^st March 2024.

The Receivables for the Company on Standalone basis, stood at Rs. 467.99 Crs as at the 31 March 2025 as against Rs. 402.43

Crs as at 31^st March 2024.

At Consolidated level, the inventories as at the 31st March

2025 stood at Rs. 409.49 Crs versus Rs. 336.90 Crs as at the

31^st March 2024.

The inventories for the Company on Standalone basis as at the 31^st March 2025 stood at Rs. 217.85 Crs as against Rs. 178.38 Crs as at the 31^st March 2024.

At Consolidated level, the Current Liabilities & Provisions as at the 31^st March 2025 stood at Rs. 672.82 Crs versus Rs. 628.92

Crs as at the 31^st March 2024.

The current liabilities & provisions for the Company on

Standalone basis, stood at, Rs. 419.66 Crs as at 31^st March 2025 as against Rs. 410.67 Crs as at 31^st March 2024. This includes Rs. 327.55 Crs trade payables as at 31^st March 2025.

The Total Investments made during the period in various subsidiaries aggregated Rs. 51.00 Crs.

The Total Investments in such subsidiaries and joint ventures stood at Rs. 229.30 Crs.

*During the year ended 31^st March, 2025, the Company conducted an impairment review of its investment in equity shares of Sandhar Whetron Electronics Private Limited. Based on the updated assessment, the recoverable amount of the investment, determined using the value-in-use method, exceeded its carrying amount. As a result, the Company has reversed the impairment loss of Rs. 304.33 lakhs that was previously recognized during the earlier years.

**During the year ended 31^st March 2025, the Company entered into share purchase agreement on 27^th March 2025 for the sale of its entire 50% stake (dis-investment) in the Joint Venture namely, Jinyoung Sandhar Mechatronics Private Limited. The Company completed the sale transaction and received an amount of Rs 668.44 lacs on 15 April 2025 and accordingly, the carrying value of Companys investment of Rs 670.57 lacs (Rs 1,336.88 lacs less impairment allowance of Rs 666.31 lacs) has been recognized under

Assets held for sale.

The Companys Cash Flow (Consolidated & Standalone level) as at 31 March 2025 stood as under:

Contingent Liabilities:

The Companys Contingent Liabilities as at the 31 March 2025 stood as under (all Fig. in Rs. Crs):

All segments of the industry are expected to continue with the growth momentum in FY 2025–26, building on the robust performance of recent years due to stable macroeconomic conditions, proactive government policies, and Infrastructure spending by the Government.

A normal monsoon, as currently forecasted for 2025, is expected to support broader economic activity, especially in rural and semi-urban regions, which would be a tailwind for auto sector demand.

The sector will also benefit from the reforms in the personal income tax announced in the recent Union Budget of 2025-26, which has been followed by two back-to-back rate cuts by RBI. These measures would help in creating demand by increased accessibility of vehicle financing.

Export demand in key markets of interest, such as Africa and neighbouring countries, is likely to continue as ‘Made in India vehicles are gaining traction.

Overall, the Automobile Industry will closely monitor macroeconomic factors and global geopolitics, which will determine the key demand conditions, and supply chain dynamics going forward.