Shri Techtex Ltd Management Discussions

The Board of Directors is pleased to share with you the Management Discussion and Analysis Report for the Financial Year ended on March 31, 2025.

COMPANY SYNOPSIS

Shri Techtex Limited is engaged in the business of manufacturing of Polypropylene (PP) Non-Woven Fabric of different sizes, and density depending upon the clients requirement. The practical use of non-woven fabric is more ecological for certain applications, especially in fields and industries where disposable or single use products are important, such as organic farming, hospitals, health care, nursing homes, home furnishing, vehicle upholstery seat fabrication, Mattress & furniture covering, ecological packaging, industrial and consumer goods. We manufacture PP non-woven fabric in variety of sizes and density.

Our manufacturing facility is situated at Simej of Dholka Taluka in Ahmedabad District of Gujarat. The manufacturing facility is well connected with near about transport hubs.

The main focus of the Company is on the export market, although we also cater to domestic sales. Our focus on exports enables us to expand our market reach and establish strong relationships with international clients. We continuously explore new opportunities and markets to further grow our export business and contribute to the economic growth of our country.

The Company remains deeply focused on quality and innovation as we continue to advance our mission of delivering high-performance textile products that cater to the diverse and evolving needs of our customers worldwide. Our wide range of fabric solutions allows us to support multiple industries and specialized applications with flexibility and precision.

Alongside our core manufacturing activities, we also offer job work services, delivering customized and efficient solutions tailored to client- specific needs. This not only enhances our value proposition but also enables us to apply our technical know-how across a broader range of projects and industries.

At Shri Techtex Limited, we uphold a strong commitment to excellence in customer service, product quality, and operational effectiveness. Backed by a dedicated team and cutting-edge manufacturing infrastructure, we strive to consistently deliver products that are dependable and exceed expectations.

Overall, with an expanding international presence, Shri Techtex Limited has emerged as a forward-thinking and customer-oriented company, engaged in the manufacturing and export of textile fabrics that are impregnated, coated, covered, or laminated with plastic. Our growing export footprint across more countries reflects our commitment to innovation, reliability, and global customer satisfaction—setting us apart in a competitive industry.

GLOBAL ECONOMY OVERVIEW

The global economy in FY 2024-25 exhibited moderate but stable growth, despite facing persistent macroeconomic and geopolitical headwinds. According to the International Monetary Fund (IMF), global GDP expanded by approximately 3.2% in 2024, with a similar forecast of 3.3% in 2025. While this marks a consistent recovery path since the pandemic, it remains below historical averages, reflecting the lasting impact of structural issues, rising debt levels, and subdued productivity in key economies.

According to the IMF World Economic Outlook (January 2025), the global economy maintained steady growth, with worldwide GDP expanding by 3.2% in 2024, and a similar growth rate of 3.3% projected for 2025, following 3.3% in 2023. However, a notable divergence persisted between advanced and emerging economies. Advanced Economies (AEs) registered modest growth of 1.7% in both 2023 and 2024, with a slight uptick to 1.9% forecasted for 2025, reflecting sluggish demand, tighter financial conditions, and structural headwinds. In contrast, Emerging Market and Developing Economies (EMDEs) continued to drive global momentum, growing by 4.4% in 2023, and stabilizing at 4.2% in both 2024 and 2025, supported by robust domestic demand and policy stimulus in major markets like India and China. This divergence underscores the ongoing importance of dynamic emerging economies in shaping the global recovery and influencing trade opportunities—especially relevant for export-oriented companies like Shri Jagdamba Polymers Limited.

Global trade faced headwinds due to rising protectionism, supply chain adjustments, and re-imposition of tariffs by some large economies. According to the World Trade Organization (WTO), global services trade grew by only 5% in early 2025, with Asia contributing significantly to this recovery.

While inflation declined across regions, it remained above central bank targets in several emerging and developing economies. Monetary policy tightening continued, though at a moderated pace, as central banks balanced inflation management with growth preservation.

Key global risks during the year included geopolitical tensions (notably in Eastern Europe and the Middle East), fluctuating energy prices, debt sustainability concerns in low-income countries, and rising cybersecurity threats. These factors contributed to increased volatility in global financial markets and a cautious investment environment. Despite these challenges, the global outlook for 2025-26 remains cautiously optimistic, underpinned by a broad-based but uneven recovery and a gradual normalization of macroeconomic conditions.

For companies such as Shri Jagdamba Polymers Limited, operating in the technical textiles industry as manufacturers and exporters, these global dynamics highlight the importance of resilience, operational agility, and diversification to navigate uncertainties and capitalize on emerging opportunities.

INDIAN ECONOMY AND INDIAN TECHNICAL TEXTILE OVERVIEW AND OUTLOOK

Indias economy grew by 6.5% in FY 2024-25, maintaining its position as the worlds fastest-growing major economy despite a slowdown from the 9.2% growth recorded in the previous year. According to data released by the National Statistical Office (NSO), the economy expanded by 7.4% in the quarter ending March 2025, reinforcing Indias strong growth trajectory. In current US dollar terms, Indias GDP reached approximately $3.9 trillion in FY 2024-25, up from $3.6 trillion in the previous fiscal year, based on estimates by research agency Crisil.

The International Monetary Fund (IMF) projects Indias GDP to reach $4.3 trillion in 2025-26, positioning the country as the worlds fourth-largest economy.

As the fifth-largest technical textiles market globally, India is rapidly adapting to the demand for performance-driven fabrics. The technical textiles market in India is projected to reach a revenue of approximately Rs2,39,475.95 crore (US$ 28,693.5 million) by 2030. From 2025 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 6%, reflecting steady expansion driven by rising demand across various industrial and consumer sectors.

India technical textiles market highlights

• India contributed 9.8% to the global technical textiles market revenue in 2024, reflecting its growing presence on the global stage.

• Among Asian countries, India remains one of the most promising markets, driven by government initiatives like the National Technical Textiles Mission and increasing private sector investments.

• While other countries in Asia Pacific continue to show growth, Indias expanding domestic demand, policy support, and innovation ecosystem position it as a key player in shaping the future of technical textiles.

• Exports of technical textiles rose by 15.5% in FY 2025, reaching Rs24,732.68 crore, up from Rs16,100.50 crore in FY 2021 — a four-year CAGR of nearly 11%.

• Indias exports of technical textiles to the UK are projected to rise to USD 1 billion by 2030, up from the current level of USD 240 million, following the signing of the India-UK Comprehensive Economic Trade Agreement (CETA) in FY 2024-25. This trade deal is expected to provide a major boost to Indian manufacturers by reducing tariffs, improving market access, and enhancing competitiveness in high- value textile categories.

Government Initiatives to Boost Technical Textiles Market

Given the rising importance of technical textiles across sectors such as healthcare, infrastructure, automotive, and agriculture, the Government of India has introduced a series of strategic interventions aimed at enhancing domestic MMF (man-made fibre) production and reducing dependency on imports, particularly from China. These initiatives are underpinned by supportive policies, increased R&D funding, and targeted infrastructure development.

The Government of India has implemented robust measures in FY 2024-25 to advance the domestic technical textiles sector. These efforts focus on capital investment, infrastructure, technology localization, and export growth:

i. Budget Allocation Increase: The Ministry of Textiles allocation rose to Rs5,272 crore for the FY 2025-26 (up from Rs4,417 crore in FY 202425 and Rs 3,443 crore in FY 2023-24), with the PLI scheme for technical textiles and MMF seeing a 33% budget boost from Rs45 crore to Rs60 crore.

ii. PLI Scheme Progress: Launched in 2021 with a Rs 10,683 crore outlay, the scheme has catalysed Rs7,343 crore in investments to date and is crucial in scaling MMF and technical textile manufacturing.

iii. National Technical Textiles Mission (NTTM): Ongoing efforts under NTTM support innovation, skills, market promotion, and exports across 4 strategic components.

iv. PM MITRA Parks: The Rs4,445 crore initiative for mega textile parks will help create plug-and-play infrastructure for high-value textile segments including technical textiles.

v. Export Support & Incentives: Export-linked schemes like RoDTEP and RoSCTL remain in place, while Indias technical textile exports rose by 15.5% YoY to Rs24,732.68 crore in FY 2024-25.

vi. Import Substitution Drive: Proposals such as 7% interest subsidies for local machinery manufacturing are under consideration, aiming to reduce dependency on imported textile equipment.

Together, these initiatives reinforce Indias vision to achieve $40-45 billion in technical textile output by 2030, positioning the country as a global alternative in the China-plus-one sourcing strategy.

Road Ahead

The Indian technical textiles industry is at a pivotal growth phase with immense potential. Supported by robust government initiatives such as the National Technical Textiles Mission (NTTM), the Production Linked Incentive (PLI) scheme, and the establishment of PM MITRA textile parks, the sector is poised to scale new heights.

Unlike conventional textiles that emphasize comfort and style, technical textiles are valued for their durability, functionality, and specialised applications—from fire-resistant gear for firefighters to geotextiles reinforcing national infrastructure.

As demand rises across infrastructure, healthcare, agriculture, and defence sectors, technical textiles—known for their durability, functionality, and specialized applications—are becoming indispensable. The growing emphasis on man-made fibres, smart textiles, and sustainable materials aligns with global trends and environmental priorities.

Indias competitive advantage lies in its skilled yet cost-effective workforce, expanding R&D capabilities, and strong manufacturing ecosystem centered in key hubs like Gujarat and Tamil Nadu. The industrys evolving landscape is attracting significant domestic and foreign investments, positioning India as a global technical textiles hub.

Addressing ongoing challenges such as infrastructure enhancement, skill development, and reducing import dependency on advanced machinery will be crucial. With continued policy support and innovation, India is well on track to realize the full potential of its technical textiles sector, capturing emerging opportunities both domestically and globally.

Sources: International Monetary Fund (IMF World Economic Outlook, Jan-Apr 2025 updates); World Trade Organization (WTO) annual trade statistics; ministry and NSO data (India); Crisil research; Grand View Research / Frost & Sullivan estimates (India technical textiles); and Government of India export data and policy updates.

REVIEW OF FINANCIAL PERFORMANCE

During the financial year ended March 31, 2025, the Company demonstrated robust operational and financial performance marked by significant growth across key revenue and profitability metrics.

Revenue from Operations: The Company reported total revenue from operations of Rs8,267.03 Lakhs for the year ended March 31, 2025, compared to Rs7,637.60 Lakhs in the previous year, representing growth over the previous period.

Other Income: The Company generated other income of Rs410.28 Lakhs, compared to Rs167.32 Lakhs in the previous year, indicating a significant increase.

Expenses: The Companys total expenses for the year were Rs6,686.90 Lakhs, compared to Rs6,113.04 Lakhs in the previous year, reflecting a rise in expenses in line with the growth in operations.

Profit Before Tax: The Company reported a profit before tax of Rs1,990.40 Lakhs, compared to Rs 1,691.88 Lakhs in the previous year, an improvement in profitability.

Tax Expenses: The Company incurred total tax expenses of Rs523.37 Lakhs, compared to Rs464.25 Lakhs in the previous year.

Profit After Tax: The Company reported a profit after tax of Rs1,467.03 Lakhs for the year ended March 31, 2025, compared to Rs1,227.63 Lakhs in the previous year, indicating stronger profitability.

Earnings per Share (EPS): The basic earnings per share (EPS) for the year was Rs5.88, compared to Rs5.48 in the previous year. This indicates an increase in line with the increased profitability of the Company.

Shri Techtex Limited experienced an increase in revenue, profitability, and earnings per share in the financial year ended March 31,2025. The Companys expenses increased alongside and reported consequent increase in profit before tax and profit after tax compared to the previous year.

Exports Performance:

• In the financial year 2024-25, the Companys total sales stood at Rs8,267.03 Lakhs, of which Rs6,113.45 Lakhs were from export sales.

• In the financial year 2023-24, the Companys total sales stood at Rs7,637.60 Lakhs, of which Rs4,298.81 Lakhs were from export sales.

This indicates that export sales increased from Rs4,298.81 Lakhs in FY 2023-24 to Rs6,113.45 Lakhs in FY 2024-25, registering a growth of ~42.3%.

SEGMENT-WISE PERFORMANCE

The Companys main business activity is manufacturing of Technical Textiles.

OUTLOOK

As Shri Techtex Limited embarks to the Financial Year 2025-26, our outlook is shaped by a combination of strategic investments, market dynamics, and evolving industry trends in the technical textile sector.

The global technical textile market is experiencing robust growth, driven by increasing demand across various sectors such as automotive, healthcare, construction, and sports. The rising emphasis on high-performance, durable, and specialized materials presents significant opportunities for the Company. Our strategic focus on enhancing our technical textile offerings positions us to capitalize on these trends and expand our market share.

Growth Strategies

1. Expansion of Product Range: The Company is committed to broadening its product portfolio by incorporating advanced materials and technologies. We plan to introduce innovative products designed to meet the evolving needs of our international clientele, including textiles with enhanced durability, moisture resistance, and high-performance characteristics.

2. International Market Penetration: For 2025-26 Our export strategy is a key focuses on expanding international sales by strengthening distributor networks, leveraging existing customer relationships, and entering new high demand markets through targeted outreach and strategic partnerships. In FY 2024-25, the company expanded its export through various countries and exported to key markets including the USA, China, New Zealand, Portugal, UAE, Canada, Denmark, Netherlands and Lithuania.

3. Sustainability Initiatives: Environmental sustainability remains a core priority. As part of our ongoing commitment to sustainability and environmental stewardship, Shri Techtex Limited announced a significant development in our energy strategy.

Risk Management

We are mindful of potential risks, including fluctuations in raw material prices, regulatory changes, and geopolitical uncertainties. The Company has implemented robust risk management strategies to mitigate these challenges, including strategic sourcing, diversification of supply chains, and proactive compliance measures.

Financial Projections

For FY 2025-26, we anticipate a continued positive trajectory by operational efficiency improvements, expansion into new markets, Innovation and Product Development, expanded export activities, and a diversified product range. We expect our net profit margins to improve due to enhanced operational efficiencies and higher-value product offerings.

Conclusion

As we look towards FY 2025-26, the Company is well-positioned to leverage its strengths in the technical textile sector. Our commitment to innovation, capacity expansion, and international growth will be pivotal in driving our success. We are confident that our strategic initiatives and proactive approach will enable us to achieve our goals and deliver value to our stakeholders.

OPPORTUNITIES AND THREATS

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

At Shri Techtex Limited, our human resources are the cornerstone of our success in the technical textiles sector. Our commitment to fostering a positive work environment, ensuring employee well-being, and maintaining strong industrial relations is central to our operational excellence and long-term growth. Industrial relations continue to remain cordial during the year and total 52 employees are on the Companys payroll as on March 31, 2025, as compared to 50 employees on the Companys payroll as on March 31, 2024.

INTERNAL CONTROL

The Company has an adequate internal control system for safeguarding the assets and financial transactions of the Company. The strong internal control systems have been designed in such a way that, not only it prevents fraud and misuse of the Companys resources but also protect shareholders interest.

ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.

DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS (i.e. change of 25% or more as compared to the immediately previous financial year)

Sr. No.	Ratio	Numerator	Denominator	As At 31.03.2025	As At 31.03.2024	% Variance	Reason for Variance
1	Current Ratio	Current Assets	Current Liabilities	4.68	6.54	-28.40%	Note -1
2	Debt-Equity Ratio	Total Debt	Total Equity	0.11	0.13	-15.27%	-
3	Debt Service Coverage Ratio	Earnings before Interest, Tax and Exceptional Items	Current maturity of long-term debt + Interest Expense	3.23	2.95	9.20%
4	Return on Equity (ROE) (%)	Profit after tax	Average Net worth	16.08%	21.54%	-25.34%	Note- 2
5	Inventory Turnover Ratio	COGS	Average Inventory	4.22	2.98	41.51%	Note- 3
6	Trade receivables turnover ratio	Revenue from Operations	Average Trade Receivable	3.725	4.95	-24.74%	-
7	Trade payables turnover ratio	Purchases	Average Trade Payable	11.74	12.08	-2.83%	-
8	Net capital turnover ratio	Revenue from Operations	Average working capital	1.94	2.38	-18.48%	-
9	Net profit ratio (%)	Profit after tax	Revenue from Operations	17.75%	16.07%	10.43%	-
10	Return on capital employed (ROCE) (%!	EBIT	Capital Employed	21.99%	20.79%	5.79%
11	Return on investments (%)	Net Profit	Equity + Reserves & Surplus	14.89%	14.63%	1.75%	-

Reasons for Variations

1. Current Ratio: It is reduced due to increase in current liabilities as compared to previous year.

2. Return on Equity (ROE) (%): Return on Equity Ratio has been decreased during the year mainly due to increase in Equity Capital and

Securities premium received through Initial Public Offer by company during the previous year as well as increase in current year net profit as compared to previous year. Due to IPO net worth of company is increased hence ROE decreased.

4. Inventory Turnover Ratio: It is improved due to reduction in the inventory levels as compared to previous year.

CAUTIONARY STATEMENT:

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied therein.

For and on behalf of Board of Directors
Shri Techtex Limited
Shradha Hanskumar Agarwal	Hanskumar Ramakant Agarwal
Managing Director and Chief Financial Officer	Executive Director
DIN: 02195281	DIN: 00013290