Lloyds Enterprises Ltd Management Discussions

strengthening long-term growth potential and enhancing logistics efficiency.

On the external front, merchandise exports moderated due to global headwinds, while services exports (notably IT and consulting) remained resilient and continued to support the current account balance.

The fiscal deficit was estimated to be contained at 5.8% of GDP, reflecting the governments commitment to fiscal consolidation while prioritizing growth-oriented spending. Improved tax collections, higher GST compliance, and robust direct tax buoyancy contributed to better revenue realization.

Inflation remained manageable, with average Consumer Price Index (CPI) inflation at around 5.4%, supported by stable food prices, calibrated monetary policy, and easing supply chain pressures. The Reserve Bank of India maintained a cautious but growth-supportive stance, keeping the repo rate steady at 6.50%, ensuring an enabling environment for economic expansion.

The Indian equity markets continued their strong run during FY 2024-25, with the Nifty 50 and Sensex gaining approximately 17% and 16%, respectively. This rally was supported by robust corporate earnings growth (~15%), healthy macro fundamentals, and consistent FII inflows. Globally, the S&P 500 gained 18%, while MSCI Emerging Markets Index advanced by 9%, reflecting broad-based recovery despite geopolitical uncertainties.

The Indian debt markets remained stable throughout the year. The Reserve Bank of India maintained a calibrated policy approach, keeping the repo rate unchanged at 6.50% to support growth while managing inflation (average CPI at ~5.4%). The yield on 10-year government securities closed at ~7.05%, slightly lower than the previous year, providing a favorable environment for fixed-income investors. Credit spreads remained contained, supported by improved corporate balance sheets and adequate system liquidity.

The Indian real estate sector demonstrated strong resilience and robust performance during FY 2024-25. Residential real estate stood out, buoyed by favorable policy support, improved affordability, and shifting preferences toward owned homes.

Residential Segment: Sales momentum remained robust, with top seven cities witnessing ~23% YoY increase in residential sales volume. Strong demand was observed in mid-income and premium housing segments, driven

by rising disposable incomes and hybrid work trends. Developers reported record pre-sales and collection efficiency, while reduced stamp duties in select states and government housing schemes further boosted demand.

Commercial Segment: The commercial real estate segment saw steady recovery, with net absorption improving ~30% YoY across Grade A office spaces. High-quality office assets commanded premium rentals, and flexible space accounted for nearly 20% of new leasing activity.

Retail and Other Segments: Retail real estate rebounded strongly as footfalls returned, and warehousing demand remained robust, driven by e-commerce and supply chain diversification.

Commodity prices showed mixed trends during FY25. Steel prices were firm in the first half due to strong infrastructure demand but moderated in the second half amid global supply adjustments. Crude oil averaged USD 84/bbl, driven by OPEC+ production cuts and geopolitical tensions.

Over the past year, gold has delivered robust returns globally, driven by heightened geopolitical tensions, persistent inflation concerns, and strong central bank buying. Internationally, gold prices rose approximately 1518% (in USD terms) over the last 12 months, while in India, returns were even higher—around 20% benefiting from both global price gains and a weakening rupee. Over the past decade, gold has delivered a CAGR of ~5.5% globally and approximately ~8.2% in India, reflecting currency depreciation and strong domestic demand as contributing factors. In the Indian context, golds performance has been further bolstered by cultural affinity, its role as a hedge against inflation, and regulatory measures that have influenced demand patterns. These dynamics underscore golds resilience and its continued relevance as a strategic asset class across market cycles.

The Indian rupee depreciated by about 4.5% against the US dollar during FY25, ending at approximately ?84.2/USD. The depreciation was driven by global risk-off sentiment and dollar strength. However, robust FDI inflows, strong remittances, and healthy forex reserves (~USD 640 billion) provided resilience and stability to the currency.

Lloyds Enterprises Limited delivered its best-ever performance in FY25, supported by strong trading growth and robust contributions from strategic investments. Standalone revenue grew 87% YoY to INR 593 Cr, consolidated revenue rose 44% YoY to INR 1,571 Cr, and total comprehensive income increased 59% YoY to INR 983 Cr.

FY 2024-25 marked a landmark year for Lloyds Enterprises Limited, achieving significant milestones that reflect its strategic progress and operational excellence. The Company delivered its highest-ever standalone and consolidated revenues, supported by robust growth in trading activities and strong contributions from its strategic investments. The trading division diversified further into raw materials, including pellets, reinforcing its vertical integration and enhancing its role in the steel value chain.

A key highlight of the year was the successful listing of Lloyds Enterprises Limited on the National Stock

Exchange (NSE), complementing its long-standing listing on the Bombay Stock Exchange (BSE) since 1987. This milestone broadens the Companys investor base, enhances market visibility, and reflects its commitment to the highest standards of governance and transparency.

In the investment segment, group companies like Lloyds Engineering Works Limited and Lloyds Realty Developers Limited continued to deliver strong performance. Lloyds Engineering Works Limited achieved record revenue and profit levels, anchored by a healthy order book of INR 1,315 crore, while Lloyds Realty Developers Limited advanced key projects in high-growth urban markets such as MMR and Pune. The declaration of a 10% dividend further underscored the Companys focus on creating and sharing value with its shareholders.

These achievements collectively highlight Lloyds Enterprisess strong execution, strategic foresight, and resilience, positioning it well to capitalize on future growth opportunities and deliver sustained stakeholder value.