Shivagrico Implements Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Export demand in Agri Hand Tools & Semi-finished Decreased from Rs.902.19 Lacs to Rs.699.93 Lacs an Decreased of 22.41% as compared to last year. However, domestic market remained volatile.

Looking to the worldly market scenario affected by Ukraine, Hamas war in Europe exports is not encouraging. The company is envisaging similar export volume. The domestic market is also deeply explored.

(i) Roof Top Solar plant is generating power satisfactorily and has contributed substantially in reducing power cost.

(ii) The company is exploring new overseas and home market along with customized products in forging and rolling segments.

(iii) In association with other parties company is participating in developing Defense related profiles.

(i) Due to overseas wars the overseas freight rates are being hiked substantially which may affect the exports.

(ii) Lower demand may result in tough competition in Export and Local market.

(iii) Skilled and Semi-Skilled labour Shortages may affect the working.

Your company has two segments viz.

1. Rolling and Forging Segment.

2. Others

Overall production in rolling division for the present year was 12363.490 M. Tons as compared to previous year production of 9687.741 M. Tons showing an increase of 27.62%. However, the forging production was increased by 9.59% in the present year. Both the production figures include conversion activity also.

Rolling & Other products sale has reduced by 9%. However forging product sale decreased by 15.37%. This years overall sales decreased by 10.71%.

However income services of the conversion and job work increase by 93.27% i.e. Rs 463.74 Lacs to Rs. 896.33 lacs during the year which is the main cause of increase in profit

The turnover of the Company for the year was Rs. 4350.40 Lacs as compared to Rs.4360.29 Lacs Decrease by 0.23% approximately from last year.

Profit before Interest, Depreciation and Tax of the Company for the year is Rs. 326.39 Lacs as against Rs. 261.08 lacs in the corresponding previous year an increase of Rs. 65.31 Lacs which is approx. 25%

The Power and Fuel cost Increase to Rs. 418.31 Lacs from Rs. 324.90 Lacs which is higher by 28.75% due to Similar Increase in Rolling production.

This year Employees cost of Rs. 537.98 Lacs increased from Rs. 459.32 lacs from the previous year i.e. increased by 17.13% mainly due to higher production activities.

The Company has incurred interest cost of Rs. 122.59 lacs as against Rs.109.63 lacs in the previous year an increase of 11.82% in the year.

The Profit before tax for the year is Rs. 38.97 lacs as compared to the profit for the year 2024 of Rs. 16.20 Lacs increased by approx. 140.56%.

The company is not required to provide any tax in this year. However, the Company has provided Deferred tax in the both years.

The Company has established team working of all employees at various levels at factory site. The Company is managed under the guidance of its Whole Time Director Mr. Hemant Ranawat who in turn is supported by the office staff senior foreman, supervisors and assistants. Each division has its in charge / foreman who are supported by assistants and workshop staff. The supervisor assists foreman and acts as a link between management Systems and further developed cordial relations. Regular meeting with workers leader maintains harmony. The company has legal consultants to ensure timely compliance with labour law.

Statement in the management Discussion and analysis describing the Company objectives, projections, estimated and expectation may be ‘Forward looking Statement within the meaning applicable to securities laws and regulations.

Actual results could differ materially from those expresses or implied. Important factor that could make a difference to the Companys operation include economic conditions affecting demand / Supply and priced conditions in the domestic and overseas market, changes in the Government regulation. Tax laws and other statutes and other incidental factors.