Sanstar Ltd Management Discussions

Review of the Economy

Global Economy

The global economy progressed on a slow but steady recovery path in FY 2024 25, though growth remained uneven and below pre-pandemic levels, weighed down by structural challenges, geopolitical tensions, and trade disruptions. According to the latest World Economic Outlook (WEO) published by the International Monetary Fund (IMF) in April 2025, the global GDP growth is projected to moderate to 2.8% in 2025, down from 3.3% in 2024. While this marks a deceleration from pre-pandemic norms, it reflects a phase of constrained expansion rather than outright contraction. The subdued growth outlook is shaped by a confluence of factors, including intensifying global trade frictions, policy uncertainty in major economies, and weakened consumer sentiment, particularly in advanced markets. Despite these headwinds, the global economy appears to be adjusting to long-term structural shifts with a degree of stability. Inflation is easing globally, supported by tighter monetary policies and softening commodity prices, with projections of 4.2% in 2025 and 3.5% in 2026

Advanced Economies

Advanced economies are expected to remain on a low growth trajectory due to high debt, sluggish productivity, and demographic pressures. Growth in the United States is forecast to be moderate amid tighter financial conditions, while the Euro Area continues to face weak consumer demand and elevated energy costs.

Emerging Markets and Developing Economies (EMDEs)

Growth in emerging and developing economies has slowed down, with notable deceleration observed across a wide range of countries, including Brazil, China, Mexico, South Africa, Argentina, Hungary, Colombia, and T?rkiye. Elevated debt burdens and weakening currencies are fueling inflationary pressures and further narrowing the space for effective monetary intervention. At the same time, tighter global financial conditions and waning investor confidence are exacerbating macroeconomic vulnerabilities.

Outlook

The global economy is projected to maintain steady growth in the coming years, with GDP expected to rise by 2.8% in both 2025 and 3.0% in 2026, supported by strong performances from the U.S. and major emerging markets. Advanced economies will likely experience stable growth, with projections of 1.4% in 2025 and 1.5% in 2026. The U.S. is expected to see growth peak at 1.8% in 2025 before tapering off to 1.7% by 2026, largely due to changes in the labor market and slowing consumer spending. In contrast, Emerging Markets and Developing Economies is projected to grow of 3.7% in 2025 and 3.9% in 2026

Global inflation is anticipated to continue its downward trajectory, reaching 4.2% in 2025 and 3.5% by 2026. However, some regions may continue to face inflationary challenges, resulting in monetary policy divergence. While many central banks will reach their inflation targets by mid-2025, some will maintain tighter measures to manage persistent price pressures. The transition to cleaner energy presents both opportunities and challenges, particularly for resource-dependent economies, while the increasing frequency of extreme weather events poses a threat to agricultural productivity and broader economic stability.

Source: IMF World Economic Outlook, April 2025

Indian Economy

Amid a turbulent world economic landscape, the economy of India demonstrated its strength, growing at 6.5% in FY 2024-25. Backed by sustained rural demand, favourable monsoon and declining inflation, the economy remained one of the fastest growing large economies in the world. This sustained growth reflects the resilience of the countrys economic fundamentals, driven by favorable policy support, a dynamic services sector, and increasing domestic consumption.

Although rural demand remained robust, urban consumption moderated during the year. The headline CPI inflation averaged 4.6%, remaining within the RBIs target range and enabling a follow-up 100 basis-point reduction in the repo rate till June 2025, to 5.5%. The RBIs policy pivot to an accommodative stance was crucial in maintaining growth momentum. However, in light of the prevailing geopolitical turbulences, the central bank has now switched to a neutral stance to assess the impact of inflation

The governments focus on infrastructure, both physical and digital, along with reforms such as ‘Make in India and the Production-Linked Incentive (PLI) scheme, continues to drive the countrys economic growth. The services sector is poised to maintain strong momentum, with an anticipated growth rate of 7.2%, supported by growth in key segments like financial services, real estate, professional services, and public administration. Additionally, Indias ranking as the fifth-largest economy globally by nominal GDP and the third largest by purchasing power parity (PPP) highlights its growing economic significance.

Outlook

Moving forward, Indias economic outlook appears positive, with the country surpassing Japan to become the fourth largest economy in the world. The nation is projected to sustain the growth momentum at 6.5% for FY 2025-26. This growth momentum is expected to be fuelled by growing foreign investment, consistent decline in inflation, enhanced industrial performance and revival of consumer spending. Policies by the government aimed at encouraging Foreign Direct Investment (FDI) and enhanced public capital expenditure are expected to further fuel indigenous industries.

With easing inflationary pressures, consumption is envisioned to showcase a stronger rebound. The monetary policies of the RBI, coupled with income tax relief for salaried employees, will further heighten spending.

Indias economic trajectory remains firmly anchored to its long-term development blueprint - Viksit Bharat @2047 - which envisions transforming the country into a fully developed economy by the centenary of independence. At the core of this vision is the aspiration to become a US$ 30 Trillion economy by 2047, driven by inclusive growth, technological advancement, and infrastructure-led transformation.

The governments continued focus on capital spending, fiscal discipline, and enhancing business and consumer confidence will foster an environment conducive to investment and consumption growth. Programs such as Make in India 2.0, Ease of Doing Business reforms, and the PLI scheme are expected to boost manufacturing, exports, and infrastructure, positioning India as a global manufacturing hub.

(Source: RBI Bulletin, PIB, Monetary Policy Report)

Industry Overview

Global Food Processing Industry:

The global food processing industry is experiencing strong growth in 2025, driven by rising consumer demand for convenience foods, innovative processing technologies and shifting health preferences. The market size is projected to reach USD 273.39 billion by 2031 growing at a compound annual growth rate of 7%. Growth is strongest in the Asia-Pacific region, with CAGR 9% CAGR, driven by rapid urbanization and increasing disposable incomes, while North America and Europe maintain significant shares with steady expansion.

Key trends shaping the industry include the surge in plant-based foods, adoption of sustainable "green" food processing practices, automation and AI integration and a focus on clean labelling and transparency. Companies are investing in advanced technologies such as high-pressure processing, vacuum packaging and robotics to improve efficiency, enhance food quality and improve safety measures. Increased awareness of nutrition and food safety, accelerated by the pandemic, continues to drive reformulation and innovation.

The regulatory environment remains complex, with stricter standards and rising compliance costs. Sustainability and ethical sourcing are becoming industry priorities, prompting the use of blockchain and traceability tools. Overall, the sectors outlook is positive, with evolving consumer preferences and technological advancements setting the pace for long-term growth and transformation.

Source : https://www.cognitivemarketresearch.com/food-processing-food-market-report https://www.startus-insights.com/innovators-guide/food-processing-industry-trends/

https://www.globenewswire.com/news-release/2025/03/24/3047642/28124/en/Food-Processing-Market-

Research-2025-2033-Global-Revenues-Forecast-to-Grow-from-162-9-Billion-in-2024-to-299-7-Billion-by-2033-at-a-CAGR-of-7.html

Indian Food Processing Industry:

Indias food processing industry will reach a market size of USD 389 billion in 2025, positioning itself as one of the largest and fastest-growing sectors globally. The industry is forecast to expand to USD 700 billion by 2030, growing at compound annual growth rate of 12.5%. It contributes nearly 9% to the agricultural gross value added and supports over 7 million jobs throughout its value chain. The sector is powered by Indias strong agricultural base, being the worlds largest producer of milk, pulses and fruits which enables consistent supply of raw materials for processing and export.

Key growth drivers include rising urbanization, increasing disposable incomes and a demographic shift, with 65% of the population under 35 driving demand for convenience and ready-to-eat foods. Digitalization, Agri-tech solutions and organized retail are transforming supply chains, thereby reducing inefficiencies and increasing access to high-quality products.

The governments supportive initiatives, such as the Pradhan Mantri Kisan Sampada Yojana and Production Linked Incentive schemes, continue to attract significant investment and facilitate infrastructure development, including mega food parks and cold chain networks.

Sources: https://www.pmfias.com/indias-food-processing-industry/ https://www.deloitte.com/in/en/about/press-room/india-bets-big-on-the-food-processing-sector.html

Global Starch Industry

The global starch derivatives industry is on a strong growth trajectory, with the market expected to reach around US $69.92 billion in 2025, supported by a CAGR of approximately 5% in the near term. Starch derivatives produced through physical, enzymatic, or chemical modification of starch offer enhanced stability, texture, and functionality, and are available in both dry and liquid forms. Key product categories include glucose syrup, modified starch, maltodextrin, hydrolysates, and cyclodextrin, derived primarily from corn, cassava, potato, and wheat.

These versatile ingredients are used for thickening, binding, sweetening, stabilizing, and process enhancement across sectors such as food and beverages, pharmaceuticals, personal care, paper and pulp, and other industrial applications. Global demand is being shaped by rising consumer preference for convenience foods, growth in processed food exports, and increasing adoption in industrial uses such as adhesives, sizing agents, and bio-based plastics. Technological advancements particularly in enzyme-based processing and energy-efficient drying systems are further boosting production efficiency and lowering operational costs.

Asia-Pacific, led by China and India, remains the largest market, supported by demand for functional and clean-label products and cost-efficient manufacturing. Europe follows with strong uptake in food and beverage applications. A key growth driver is the sustained global appetite for convenience and processed foods, which rely on starch derivatives to enhance texture, stability, and shelf life. At the same time, the industry is responding to health and wellness trends, with starch derivatives increasingly used in dietary and medical formulations for benefits such as improved glycemic control, reduced fat absorption, and lower calorie content.

These dynamics highlight the strategic importance of starch derivatives not only in traditional food and pharmaceutical sectors, but also in enabling innovation across a growing range of multifunctional applications in both food and non-food industries.

Outlook

The starch derivatives market is forecast to expand from US $69.92 billion in 2025 to US $84.04 billion by 2029, reflecting a CAGR of 5.4%. Growth will be driven by deeper penetration into processed food, pharmaceuticals, personal care, and emerging areas such as biodegradable packaging and biofuel production. The rising shift toward plant-based and sustainable ingredient solutions will also accelerate demand.

To capture these opportunities, industry players are expected to increase R&D investments and form strategic partnerships aimed at delivering tailored, high-performance starch derivatives. This includes the development of resistant starch variants that combine functional performance with health benefits. With consumer demand for convenience, sustainability, and health-focused ingredients continuing to rise, the starch derivatives sector is well-positioned for long-term growth and margin stability.

Source:

Global Starch Derivatives Market Size Report 2025, Forecast 2034 https://www.precedenceresearch.com/starch-derivatives-market

Indian Starch Industry

The Indian starch industry continues to expand steadily, supported by strong demand from the food & beverage, textile, paper, pharmaceutical, and biodegradable packaging sectors. Maize starch remains the dominant segment, with India ranking among the largest producers in Asia. The domestic starch and starch derivatives market is projected to reach approximately US $3.45 billion in 2025.

Starch derivatives produced from raw materials such as corn, wheat, and tapioca include glucose syrup, modified starch, maltodextrin, hydrolysates, and cyclodextrin. These ingredients enhance stability, texture, and functionality, finding applications across diverse sectors including food and beverages, pharmaceuticals, personal care, textiles, paper, packaging, and bioethanol production. Abundant domestic maize availability provides a competitive cost advantage, enabling expansion into higher-value derivative segments.

In FY 2024 25, the sector witnessed capacity expansions and increased automation to cater to both domestic and export demand. However, it also faced headwinds from fluctuations in maize prices, elevated energy costs, and global freight rate volatility. Despite these challenges, structural growth drivers remain intact, led by policy support and evolving consumer preferences. Ethanol blending mandates, growing demand for clean-label ingredients, and government incentives for starch-based bioplastics are creating strong tailwinds. The expansion of the processed food industry, the rise of the pharmaceutical sector, and the shift toward sustainable packaging solutions are further boosting demand for functional starch derivatives. Indias integrated supply chain, supported by both traditional and modern processing capacities, strengthens its long-term competitiveness.

Outlook

The Indian starch market is forecast to grow from US $3.45 billion in 2025 to US $4.12 billion by 2030, maintaining healthy momentum. Growth will be driven by rising penetration in processed food categories, greater adoption in pharmaceuticals, personal care, and industrial applications, and scaling of bio-based materials such as starch-derived adhesives for sustainable packaging. Modified starches are expected to lead the expansion, supported by their versatility, clean-label alignment, and performance benefits in both food and industrial uses.

Emerging opportunities are also expected in specialty derivatives such as cyclodextrins for advanced pharmaceutical drug delivery and resistant starches for health-focused foods. The medium-term outlook is further underpinned by:

Increasing use of modified starches in food processing and pharmaceutical sectors.

Rising demand from emerging applications including biodegradable films and sustainable packaging.

Government initiatives promoting agro-processing and value addition in maize cultivation.

As demand for sustainable, functional, and performance-enhancing ingredients grows, Indian manufacturers are likely to step up R&D investments and expand product portfolios. With strong market fundamentals, a favorable policy environment, and a competitive cost base, the Indian starch derivatives industry is well-positioned to deliver sustained growth and value creation over the medium to long term.

Outlook for FY26

The outlook for the Indian starch industry remains positive, underpinned by steady demand across diverse end-use sectors. Domestically, robust economic fundamentals (GDP growth ~6.5% in FY2025 with easing inflation to multi-year lows) have sustained consumer demand. This translates into healthy growth for starch consumption in food, pharmaceutical, paper, textile, and packaging segments. In particular, rising urbanization and lifestyle changes are driving greater use of starch in convenience foods and ready-to-eat products, while health-conscious consumers preference for clean-label and non-GMO ingredients is spurring innovation in specialty starches and fortified foods. Starch remains a versatile ingredient across industries as these sectors expand, demand for starch is expected to grow in tandem.

Globally, supply chain realignments and a shift toward plant-based raw materials are creating new export opportunities for Indian starch manufacturers. India has emerged as a major starch exporter, benefiting from competitive raw material costs and a reliable production base. In

2023, Indias maize starch exports surged to ~584,000 tons (US$256 million), marking a 22% increase over the prior year and reaching record highs. India is now the worlds largest corn starch exporter, accounting for roughly 17.4% of global maize starch export value. This export momentum is expected to continue, supported by rising international demand in food processing, pharmaceuticals, textiles, and paper sectors and Indias cost advantage.

However, the Company remains vigilant toward global economic uncertainties for instance, currency movements or shifts in trade policies can impact export realizations and demand elasticity.

On the policy front, the operating environment is favorable. The governments continued focus on agro-processing is evidenced by incentives for value addition in maize-based products, increased budgetary support, and investment in rural infrastructure. Notably, the Ministry of Food Processings budget for 2024-25 was hiked by over 30%, aiming to boost food processing capabilities nationwide. Flagship schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Production-Linked Incentive (PLI) program for food processing are further catalyzing capacity expansion and technology adoption in the sector. These efforts have begun to bear fruit in terms of higher value-addition processed food now constitutes about 23.4% of Indias agri-food exports, up from ~13.7% a decade ago. Technological advancements are also reinforcing industry prospects: starch producers are increasingly deploying enzymatic processing, automation, and energy-efficient equipment to improve yields and cost efficiency. Such innovations not only enhance competitiveness but also enable the development of new starch derivatives and specialty products tailored to emerging market needs.

Meanwhile, evolving consumer and regulatory trends around sustainability are influencing the industry. There is a growing global and domestic emphasis on eco-friendly products, which is accelerating demand for starch-based bioplastics and packaging solutions. The starch-based bioplastics packaging market, for example, is projected to grow at roughly 8.6% CAGR, more than doubling from USD 18.1 billion in 2025 to USD 41.5 billion by 2035, driven by environmental concerns and stricter plastic waste regulations. Indias policy landscape reflects these priorities: the government has banned certain single-use plastic items and, as of 2025, even allowed recycled PET in food packaging to promote circular economy practices. Such measures are expected to further boost the adoption of starch-based alternatives in packaging and other applications. At the same time, the industry must navigate challenges like volatile maize prices due to erratic monsoons and climate change, as well as competition from synthetic alternatives in some applications. Additionally, compliance with stringent food safety and environmental norms remains an ongoing commitment meeting standards set by regulators (e.g. FSSAI and pollution control boards) necessitates continuous monitoring and investment in quality control and sustainability initiatives. Despite these challenges, the overall macroeconomic and policy context marked by stable input supply, supportive government initiatives, and sustainability-driven market shifts bodes well for the starch industrys medium-term growth.

Sanstar Ltd. is well-positioned to capitalize on these favorable trends while mitigating the associated risks. The Company remains committed to operational efficiency and cost optimization to protect margins in the face of raw material volatility. A strategy of product diversification is being pursued to cater to high-growth segments such as modified starches for pharmaceuticals, biodegradable packaging materials, and specialty food ingredients. Continuous investment in R&D and innovation is core to this strategy, enabling Sanstar to develop value-added starch derivatives and improve process yields. Equally, the Company has embedded sustainability into its growth plans initiatives like water recycling, renewable energy use, and waste-to-value programs not only reduce environmental risk but also align with customers sustainability expectations. Furthermore, digital integration of processes (from supply chain management to production monitoring) is underway to enhance agility and traceability, thus strengthening Sanstars competitive advantage. These proactive measures, combined with the tailwinds of a growing market, are expected to support the Companys long-term growth and shareholder value creation.

Immediate Focus areas include:

Adoption of energy-efficient equipment to reduce operating costs

Development of high-value modified starches for niche applications

Expansion of export footprint in Asia-Pacific and Middle East markets

Strengthening supply chain resilience through diversified sourcing

While the medium-term prospects are positive, the Company remains cautious of factors such as commodity price volatility, global demand fluctuations, and currency movements.

Sources:

https://www.deloitte.com/us/en/insights/topics/economy/asia-pacific/india-economic-outlook.html https://spacgroup.com/maize-starch-prices-in-2025-trends-market-demand-what-buyers-need-to-know/#:~:text=pharmaceuticals%2C%20and%20textiles,is%20expected%20to%20rise%20sharply https://www.indexbox.io/blog/india-maize-starch-exports-2023/#:~:text=In%202023%2C%20the%20amount%20of,growth%20in%20years%20to%20come https://trendeconomy.com/data/commodity_h2/110812#:~:text=%2A%20India%20,6.08%25%20%28%2 488%20million https://www.foodtechbiz.com/processing/year-end-review-2024-achievements-and-initiatives-of-the-ministry-of-food-processing-industries#:~:text=Enhanced%20Budget%20Allocation%3A https://www.futuremarketinsights.com/reports/starch-based-bioplastics-packaging-market#:~:text=The%20starch%20based%20bioplastics%20packaging,share%20in%202025 https://foodpackagingforum.org/news/2025-regulatory-and-waste-management-updates-from-south-and-southeast-asia#:~:text=Effective%20March%2028%2C%202025%2C%20Food,FPF%20reported

Opportunities and Threats

Sanstar continuously evaluates its operating environment to capitalize on opportunities while managing threats:

Opportunities

Strong Domestic Market Growth: The Indian starch and starch derivatives market is projected to grow from USD 3.45 billion in 2025 to USD 4.12 billion by 2030 (CAGR 7.34%). Native starch demand is expected to rise from 6.4 million tonnes in 2023 to 11.1 million tonnes by 2032 (CAGR 6.31%), while the corn starch market alone is estimated to reach USD 4.76 billion by 2030 (CAGR 5.2%).

Diverse and Expanding Applications: Starch and its derivatives are seeing increased use across food processing, pharmaceuticals, textiles, paper, packaging, adhesives, cosmetics, bioethanol, and bioplastics. Global tapioca starch demand is also growing, particularly in gluten-free foods, processed foods, and biodegradable packaging (CAGR 5.1% from 2025 2031).

Export Potential: Rising global demand for plant-based, clean-label products and

Indias cost competitiveness are opening new export opportunities. For example,

Madhya Pradesh recorded a 48% growth in starch exports in FY 2024 25, reaching

247 crore.

Sustainability and Clean-Label Trends: Consumers are increasingly opting for natural, clean-label ingredients and eco-friendly packaging. This shift is driving demand for starch-based alternatives such as biodegradable plastics and sustainable packaging materials.

Government Policy Support: Incentives for agro-based industries, infrastructure development in rural areas, and schemes promoting value addition in maize and other crops are fostering a supportive environment. Policies promoting bioethanol are also increasing corn demand, potentially creating synergies for the starch sector.

Innovation and Technology Adoption: Growing demand for functional foods, fortified products, and specialty starches is driving R&D investment. Advances in starch modification (e.g., resistant, cationic, pre-gelatinized types) enhance texture, stability, and shelf life. Adoption of enzymatic processing, energy-efficient machinery, and digital process monitoring improves yields, reduces costs, and enhances competitiveness.

Threats

Raw Material Price Volatility: Maize and other key raw materials are subject to seasonal and climatic fluctuations, leading to cost volatility and margin pressures.

Competitive Pressures: Intense competition from domestic players and imports, as well as substitutes (synthetic or other plant-based binders), can impact pricing power and market share.

Regulatory Compliance: Stringent regulations on food safety, environmental controls, and quality standards demand continuous compliance effort and investment in upgraded systems and processes.

Climate Change Impact: Erratic rainfall patterns and extreme weather events due to climate change are affecting crop yields and input supply stability over time.

Global Trade Dynamics: Currency fluctuations, export restrictions, and changes in international trade policies can influence industry competitiveness and export profitability.

Technological Obsolescence: Rapid advancements in processing technology may render existing production facilities or methods less efficient if they are not periodically upgraded.

Risk Management

Risk Name	Risk Description		Risk Mitigation
Water Management	As a finite resource, water scarcity can pose a significant risk to business operations.		The Company regularly recycles and reuses treated water, substantially reducing groundwater withdrawal.
Risks			Treated water is also supplied for irrigation, supporting resource conservation and promoting sustainable usage.
Environmental Risk	Environmental factors, including climate variability, may impact operations and supply chains.		The Company adopts sustainable practices such as water conservation, use of renewable energy, carbon footprint reduction, waste management, and tree plantation initiatives.
	Maize, being an agricultural product, is highly susceptible to climate change. Extreme weather events, such as droughts, floods, and heatwaves, can disrupt production, leading to supply shortages and higher costs.		The Company follows an effective maize procurement policy to ensure consistent supply of quality corn while mitigating climate-related risks.
Raw Material Risk			Storage facilities are strategically located near manufacturing plants to reduce transportation emissions. An ecosystem has been developed where hundreds of maize farmers deliver directly to the factory, ensuring steady supply at competitive rates.
Competition Risk	Intense competition in the agro-processing and export industry may affect market share and pricing power.		The Company focuses on superior quality standards, strong relationships with customers and suppliers, and continuous investment in research and development to maintain a competitive edge.
Technology Risk		Technological disruptions or failures could affect operations and supply chain dynamics.		The Company invests substantially in technology infrastructure to build operational resilience. A robust disaster recovery and business continuity plan is in place to minimise the impact of technological disruptions.
Currency Risk		Currency fluctuations can impact revenue and profitability, particularly export earnings.		The Company mitigates this risk through hedging mechanisms, including forward contracts.
Geopolitical Risk		Political instability, regulatory changes, wars, and trade disputes may disrupt operations, increase costs, and limit market access.		The Company diversifies its supplier and customer base to reduce dependency on volatile regions and continuously monitors geopolitical developments to assess potential impacts.
Regulatory Risk		Changes in government policies, rules, or regulations may adversely affect operations.		The Company actively monitors regulatory changes and adapts its operations accordingly, supported by a strong compliance programme to ensure adherence to all applicable regulations and standards.
Supply Chain Risk		Disruptions in logistics, transportation, or warehousing may impair the ability to deliver products to customers.		The Company strengthens supply chain resilience through multi-sourcing of raw materials, improved warehouse management, and the use of technology to optimise logistics.
Natural Calamities		Natural disasters such as floods, droughts, or earthquakes may disrupt operations and supply chains.		The Company has a comprehensive disaster management plan and invests in infrastructure to minimise disruption and enhance preparedness for natural calamities.

Material Developments in Human Resources / Industrial Relations

The success of the Company is largely attributed to its workforce, which is highly valued for its strategic importance. The Company is committed to empowering employees to improve organizational efficiency while cultivating a corporate culture centered on self-motivation and teamwork. It strives to create a work environment that promotes both professional and personal growth. The Company places great importance on the quality of its human resources and believes that continuous skill development is crucial to strengthening and enhancing the talent pool. Employees are periodically sent to seminars and workshops organized by external institutions to stay abreast of the latest technological advancements in industry.

As of March 31, 2025, the Company employed 76 number of employees. Training programs were held in the following areas:

Safety measures

Quality control and food safety (HACCP, GMP)

Energy conservation and process optimization

Industrial relations were amicable throughout the year across all employee levels.

Discussion On Financial Performance with Respect to Operational Performance

Financial Performance (Rs. in Millions)

Particulars	FY 2024-25	FY 2023-24
Revenue from operations	9534.23	11101.04
Other income	180.31	144.11
Total income	9714.54	11245.15
Total Expenses	9164.28	10347.92
Profit before tax (PBT)	550.26	897.23
Total Tax Expenses	112.27	229.57
Profit after tax (PAT)	437.99	667.66
Basic and Diluted Earnings Per Share (EPS) (In )	2.58	4.75

Key Financial Ratios

Sr. No.	Ratio	For the year ended March 31, 2025	For the year ended March 31, 2024	Variance % (31 March 2024 and 31 March 2025)	Reason for variance
1	Current Ratio	8.99	1.44	526%	Current ratio has improved on account of increase in cash and bank balances. The cash and bank balances are higher on account of the proceeds received from fresh issue of shares.

 

2	Debt Equity Ratio	0.04	0.50	-92%	Debt-Equity ratio has improved on account of repayment of debt during the year from proceeds received from fresh issue of shares.
3	Debt Service Coverage Ratio	2.15	4.33	-50%	Debt service coverage ratio has decreased on account of repayment of debt during the year from proceeds received from fresh issue of shares. variance on account of reduction in profit during the year while increase in shareholder equity on account of the proceeds received from fresh issue of shares.
4	Return on Equity %	9.59%	30.70%	-69%
	Inventory
5	Turnover	9.93	11.76	-15%	N.A.
	Ratio
	Trader
	Receivable
6		8.65	7.92	9%	N.A.
	Turnover
	Ratio
	Trade
	Payable
7		11.36	14.27	-20%	N.A.
	Turnover				variance on account of increase in working capital during the year on account of the proceeds received from fresh issue of shares. variance on account of reduction in sales during the year
	Ratio
8	Net Capital Turnover Ratio	3.88	15.19	-74%
9	Net Profit %	4.59%	6.17%	-26%
	Return on
10	Capital	22.42%	25.31%	-11%	N.A.
	Employed
11	Return On investment	12.16%	19.56%	-38%	Return on Investment has reduced on account of fixed deposits made at the end of the year.

Internal Control Systems and Their Adequacy:

The Company has established robust internal control systems that are appropriate for the size, nature, and complexity of its business operations. These systems are designed in line with the principles of good governance and ensure accurate transaction recording and reporting, protection of assets, and safeguarding against unauthorized use, disposal, or misappropriation of funds. The internal auditors play a key role in evaluating and reviewing the effectiveness of these controls, proactively recommending improvements to strengthen them.

These internal controls are further reinforced by well-documented policies and procedures, which offer reasonable assurance regarding the reliability of financial and operational information. They also address fraud prevention, compliance with applicable laws and regulations, and adherence to internal policies. To ensure the continued effectiveness of the internal control framework, the Audit Committee of the Board regularly reviews the internal audit reports. The management team and the statutory auditors also review these findings and take appropriate corrective actions where necessary.

Cautionary statement:

This Management Discussion and Analysis report contains forward-looking statements, which include predictions, expectations, projections or estimates regarding the Companys future objectives. These statements are based on certain assumptions and expectations about future events. However, actual results may differ from these projections due to various factors, including changes in government regulations, tax laws and other applicable statutes. Additionally, unforeseen events such as force majeure could impact the actual outcomes. It is important for readers to understand that these statements are made in the context of current assumptions and may not accurately reflect future results.

For and on behalf of the Board of Directors Sanstar Limited

Mr. Gouthamchand Sohanlal Chowdhary	Mr. Sambhav Gautam Chowdhary
Chairman and Managing Director	Joint Managing Director
DIN: 00196397	DIN: 01370802
Date:14th August, 2025
Place: Ahmedabad