Sintercom India Ltd Management Discussions

Forward Looking Statement

The report includes forward-looking statements, which are indicated by terms such as plans, expects, will, anticipates, believes, intends, projects, and estimates. Any statements concerning future expectations or projections, including but not limited to the Companys growth strategy, product development, market position, expenditures, and nancial results, are considered forward-looking statements. These statements are based on certain assumptions and expectations regarding future events, and the Company cannot ensure their accuracy or that they will be realized. Actual results, performance, or achievements may differ from those projected in the forward-looking statements. The Company is not obligated to publicly amend, modify, or revise any of these statements due to subsequent developments, information, or events, except as required by law.

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL ECONOMY OVERVIEW

The global economy in 2025 continues to navigate a period of moderate growth coupled with persistent uncertainty. According to the International Monetary Fund (IMF), world output is expected to expand by around 3.0%, while the World Bank projects a more conservative 2.3%, re ecting concerns over trade disruptions and subdued investment sentiment. In ationary pressures are gradually easing, with global headline in ation anticipated to decline to about 4.2%, though some advanced economies, particularly the United States, continue to experience in ation above target levels.

(Source: IMF, July 2025 World Economic Outlook Update, World bank June 2025 Global Economic Prospects)

Key risks to the outlook stem from ongoing geopolitical and trade tensions, uctuating tariff regimes, and rising global indebtedness, which may constrain scal and monetary policy exibility. In particular, recent tariff escalations have heightened uncertainty across global supply chains, although selective easing of trade barriers has provided limited relief. Concerns about potential recession in advanced economies remain a critical challenge for policymakers and investors alike.

Regional performance is expected to remain uneven. The United States is projected to grow at around 1.9%, while growth across the Eurozone remains subdued. Emerging markets and developing economies continue to drive global expansion, with China estimated at 4.8% and India sustaining its position as the fastest-growing major economy at 6.4%. Other regions, including Sub-Saharan Africa and the Middle East, are expected to record moderate growth in the range of 3 4%.

Structurally, the global economic landscape is being reshaped by realignment of supply chains, greater emphasis on digital transformation and arti cial intelligence, and shifts in investment priorities toward resilience over cost ef ciency. At the same time, rising public debt and higher borrowing costs pose signi cant headwinds for both advanced and emerging economies.

Overall, while near-term prospects suggest moderate growth, the outlook remains contingent on the resolution of trade and policy uncertainties. For businesses, this environment underscores the importance of supply chain diversi cation, cost ef ciency, digital adoption, and prudent risk management to navigate volatility and capture growth opportunities.

The automotive industry in 2025 re ects both opportunities and challenges amid this evolving macroeconomic environment. Global light-vehicle sales are projected to reach ~89 98 million units, representing a 1.7% 2.7% increase compared to 2024. Growth is led by China, where sales are expected to touch 26.6 million units, supported by new energy vehicle (NEV) incentives and trade-in programs. The United States is expected to record ~16.2 million units (+1.2%), while Europe faces stagnation at around 15 million units due to weak demand, high prices, and reduced EV subsidies.

Electri cation remains the key structural driver of the sector. Battery Electric Vehicle (BEV) sales are projected to cross 15 million units, a 30% year-on-year increase, accounting for nearly 17% of global light-vehicle sales. In China, EV penetration could rise to 58% of new passenger vehicles, while hybrid electric vehicles (HEVs) continue to register strong double-digit growth globally.

For the automotive industry, 2025 is characterized by modest volume growth, rapid electri cation, and heightened structural challenges. While opportunities exist in emerging markets and EV adoption, risks related to tariffs, supply constraints, regulatory compliance, and in ationary costs remain elevated.

To remain resilient, companies are focusing on cost ef ciency, supply chain agility, digital capabilities, and eet diversi cation across internal combustion, hybrid, and electric platforms. Strategic adaptability in this environment will be key to sustaining growth and competitiveness.

INDIAN ECONOMY OVERVIEW

India continues to stand out as the fastest-growing major economy in the world, maintaining strong momentum despite a challenging global environment. The International Monetary Fund (IMF), in its July 2025 update, revised Indias GDP growth forecast upward to 6.4% for both 2025 and 2026, reaf rming con dence in the countrys medium-term prospects. Similarly, the Reserve Bank of India (RBI) projects GDP growth at 6.7% for FY 2025 26, supported by resilient consumption and steady investment ows. Preliminary estimates for FY 2024 25 already indicate an expansion of around 6.5%, underscoring the economys robust fundamentals.

Price stability has signi cantly improved, providing a favorable backdrop for growth. Consumer Price Index (CPI) in ation eased to 1.55% in July 2025, the lowest level in nearly 15 years, driven primarily by falling food prices and favorable base effects. In ation has remained well below the RBIs medium-term target of 4%, creating policy space for further monetary easing if required. While some normalization toward the 4% range is expected by early 2026, the current low in ation environment offers an important cushion for both households and businesses.

Domestic demand remains a key driver of growth. Urban consumption is showing a steady recovery, supported by improving discretionary spending, while rural demand continues to be resilient on the back of stable agricultural output and government support measures. The Union Budget 2025 26 has provided further impetus to demand, with a complete tax rebate for individuals earning up to Rs. 1.28 Mn, thereby enhancing disposable income and boosting household consumption.

Investment momentum is also being sustained through large-scale infrastructure development. The National Infrastructure Pipeline (NIP), with an outlay of nearly Rs. 1.97 lakh crore (USD 1.4 trillion) across 7,400 projects, continues to drive public and private investment, strengthening the foundation for long-term growth. Additionally, the services sector, particularly IT and digital exports, remains a strong contributor, while expanding credit growth is enabling broader economic activity.

Despite the positive outlook, certain risks warrant close attention. A potential rebound in in ation toward 2026 could limit monetary exibility. Externally, global trade tensions and tariff measures, particularly those initiated by the United States, pose downside risks to Indias exports and investment climate. Fiscal pressures and geopolitical uncertainties could also affect stability if not managed carefully.

The governments broader agenda emphasizes building a self-reliant India (Atmanirbhar Bharat) through defense manufacturing, semiconductor and electronics production, renewable energy projects, and digital infrastructure development. These initiatives are designed to enhance competitiveness, reduce external vulnerabilities, and generate sustainable long-term growth.

On balance, India is well-positioned to sustain 6.4 6.7% GDP growth in 2025, well above the global average of ~3.0%. The combination of robust domestic demand, favorable in ation trends, tax relief measures, and infrastructure spending provides a strong platform for continued expansion. However, vigilance on in ationary trends, external shocks, and scal management will be essential.

Indias growth story in 2025 re ects both its structural strengths and its policy agility. For businesses, this translates into a supportive operating environment, but one that also demands resilience in the face of global volatility.

The outlook for India remains highly positive. Strong macroeconomic fundamentals, accommodative monetary policy, and proactive government reforms provide a stable foundation for growth. With an improving investment climate, rising employment opportunities, and continued emphasis on innovation and digitalization, India is well-positioned to sustain its trajectory as a global growth leader.

AUTOMOBILE SECTOR INDUSTRY-

The Indian automobile industry has continued its strong growth momentum, consolidating its position as one of the most signi cant drivers of the countrys economic progress. India is now the fourth-largest automobile producer and the third-largest market by sales globally, contributing about 7.1% to national GDP, 8% of exports, and providing direct and indirect employment to over 37 million people. In FY 2025, retail automobile sales reached 26.14 million units, growing by 6.5% year-on-year, while total production stood at 310 million units. Exports also showed a healthy performance, increasing by 19% to 5.3 million units. With cumulative FDI in ows of Rs. 2.46 lakh crore (US$37.5 billion) between April 2000 and December 2024, the sector continues to attract strong global investor interest. Market projections indicate that the Indian automobile sector is expected to expand from USD 120 billion in 2024 to USD 342 billion by 2032, re ecting a CAGR of about 14%. (Source: IBEF, SIAM, Invest India).

A signi cant transformation is underway with the push towards electric mobility and alternative powertrains. The Government of India has set an ambitious target of achieving 30% EV penetration by 2030. Under the PM E-DRIVE scheme (2024 26), with an outlay of US$1.3 billion, the government is actively supporting the EV ecosystem. FY 2023 EV sales crossed 1.53 million units, a growth of 49% YoY, and the share of hybrids is also projected to rise from 2% currently to nearly 20% by the end of the decade. Current powertrain distribution is dominated by petrol (65%), followed by diesel (18%), CNG (12%), EVs (2%), and hybrids (2%). The government has also introduced Production Linked Incentive (PLI) schemes for EVs, hydrogen fuel technologies, advanced batteries, and auto components with a combined outlay of over Rs. 54,000 crore, expected to generate nearly 7.5 lakh jobs. On the regulatory front, Bharat NCAP safety norms were introduced, enhancing vehicle safety standards, with several domestic models receiving top safety ratings. (Source: Ministry of Heavy Industries, NITI Aayog, SIAM).

The Indian industry also bene ts from strong domestic demand drivers. Rural demand grew at 7.6% in FY 2025, outpacing urban demand growth of 5.1%, signaling recovery in rural incomes and mobility needs. The Chennai region has emerged as a global hub, accounting for 30% of Indias automobile and 35% of component production. However, challenges remain, as wholesale volumes grew only 2% in FY 2025, the slowest in four years, and dealers reported rising inventory levels (average 55 days against an ideal of 21 days) with retail sales dipping month-on-month by 9.4% in June 2025. Supply chain risks, geopolitical uncertainties, and tariffs on Indian exports to the U.S. also pose potential headwinds. Nonetheless, India continues to be viewed as a safe haven for global auto growth, with strong prospects in SUVs, EVs, and rural demand-led segments. (Source: FADA, SIAM, CRISIL).

Globally, the automobile industry is undergoing a major structural transformation. Global light vehicle sales are projected at 85.1 million units in 2025, up 1.3% from the previous year. The shift towards electric and hybrid vehicles is the most de ning trend, with EVs accounting for 30% of new sales in 2024. Adoption levels remain highest in China (55% of sales), Europe (40%), and North America (25%), while hybrids are growing at a 20 25% CAGR across major markets. Original Equipment Manufacturers (OEMs) are committing over US$500 billion by 2030 towards EV and battery ecosystems, while advances in technology are expected to drive battery pack costs below US$100/kWh in 2025, accelerating affordability and consumer adoption. At the same time, the rise of connected cars, with nearly 20% of the global eet now internet-enabled, highlights growing demand for digital integration in mobility solutions. (Source: IEA, IHS Markit, McKinsey Automotive Insights).

However, the global sector continues to face several challenges. Persistent supply chain vulnerabilities, especially in semiconductors and critical raw materials, remain a concern. Trade tensions and tariffs are also impacting production and distribution channels. Moreover, while EV adoption is accelerating, challenges around high upfront costs, limited charging infrastructure, and rural accessibility are slowing penetration in several markets. Despite these headwinds, the medium-to-long-term outlook remains positive, with global growth expected to be driven by emerging economies like India, rising urbanization, technological innovation, and the transition toward sustainable mobility.

Overall, both in India and globally, the automobile sector is at an in ection point shifting from traditional fuel-driven growth towards a future de ned by electri cation, hybridization, connectivity, and sustainable practices. With strong domestic demand, supportive policies, and signi cant investments, India is well-positioned to play a leading role in shaping the global automotive landscape over the next decade.

AUTO COMPONENTS INDUSTRY-

The Indian auto components industry delivered another resilient year in FY 2024 25, underpinned by broad-based growth across OEM supplies, the aftermarket, and exports. As per the Automotive Component Manufacturers Association of India (ACMA) Industry Performance Review, the sectors turnover reached Rs. 6.73 lakh crore (US$ 80.2 billion), up 9.6% YoY, taking the FY20 FY25 CAGR to ~14% nearly doubling in ve years. Within this, component supplies to OEMs rose to Rs. 5.70 lakh crore, while the aftermarket expanded to Rs. 99,948 crore (US$ 11.8 billion), re ecting steady replacement demand and higher value addition. External performance also strengthened: exports grew 8% to US$ 22.9 billion and imports grew 7.3% to US$ 22.4 billion, delivering a trade surplus of US$ 453 million the second consecutive annual surplus, evidencing improving global competitiveness and localization. Regionally, North America remained the largest export market, with Asia and Africa also registering strong growth. (Source: ACMA)

The near-term business outlook is positive but balanced. CRISIL Ratings expects the auto components sector to post ~7 9% revenue growth in FY 2025, broadly mirroring the prior year, led by sustained momentum in two-wheelers and passenger vehicles (especially utility vehicles), with a moderate uptick in commercial vehicles and tractors offering an additional tailwind. CRISIL also notes that softer demand in key export markets (the US and Europe) could temper export growth, keeping domestic demand the primary driver in FY 2025.

Policy support remains a structural enabler. The Production Linked Incentive (PLI) Scheme for Automobile & Auto Components with a budgeted outlay of Rs. 25,938 crore through FY 2026 27 targets Advanced Automotive Technology (AAT) products and deeper localization across critical sub-systems (e.g., EV powertrain and electronics), catalyzing new investments, supply-chain depth, and job creation. This scheme is a key bridge for component makers to move up the value chain and integrate into global platforms as product content increasingly shifts toward software-rich and electri ed architectures. (Source: Ministry of heavy industries/PIB)

Strategic implications for component manufacturers are clear.

a) First, continued localization and cost leadership aided by PLI incentives should help protect margins as OEMs seek higher domestic value content and as imports face logistical and policy uncertainties. b) portfolio shift toward AAT/EV-ready components (power electronics, e-axles, BMS-related parts, advanced braking and ADAS-ready assemblies) is becoming central to growth; rms with electronics, software integration, and precision manufacturing capabilities will likely outgrow the sector.

c) export resilience will hinge on diversi cation across geographies (beyond Europe) and leveraging Indias competitive clusters to deliver consistent quality and shorter lead times.

d) working-capital discipline and raw-material hedging remain important as commodity and freight costs, while more stable than in the peak volatility phase, can still swing on geopolitics and energy markets

In summary, FY 2024 25 con rms the sectors structural momentum record turnover, sustained aftermarket strength, and a second consecutive trade surplus while FY 2025 is set up for mid-single-to-high-single-digit growth on the back of robust domestic demand and policy support. The execution priorities for management teams remain: (i) scale and automation in core lines to capture OEM platform wins; (ii) accelerated AAT/EV component capability building (often via partnerships/JVs); (iii) export mix optimization toward faster-growing regions; and (iv) PLI-linked capex to deepen localization and improve margin resilience.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company works only in one segment i.e., manufacturing of sintered auto components.

CURRENT & FUTURE OUTLOOK

The Outlook For Your Companys Operations is Promising in the Medium-To-Long Term. In Addition To Expected Growth in The Automobile Sector, New Opportunities Are Also Arising.

AUTOMOTIVE VEHICLE PRODUCTION AND SALES LIKELY TO GROW IN THE NEAR TERM:

Sintercom continues to strengthen its role as a preferred supplier of sintered components to leading domestic passenger vehicle OEMs. Growth was supported by strong demand in the SUV and compact car segments, coupled with higher regulatory requirements under emission norms that have increased the adoption of sintered parts in drivetrain applications. Operational ef ciency, localization of raw materials, and higher capacity utilization helped mitigate margin pressures and enhance competitiveness. The Company has also begun gaining traction in the export market, with initial supplies to global Tier-1 suppliers, re ecting the recognition of Sintercom s cost-competitive and quality-driven sintered manufacturing capabilities.

Looking ahead, Sintercom is well positioned to bene t from multiple growth drivers. On the automotive front, the global transition towards electric mobility is expected to create new avenues for sintered parts in e-motors, drivetrain systems, thermal management components, and braking assemblies. While ICE-related demand will gradually moderate, the Company is leveraging its powder metallurgy expertise to re-engineer products suited for EV platforms and to collaborate with global OEMs and Tier-1s on next-generation solutions. At the same time, export opportunities are expected to expand, as global manufacturers increasingly diversify their sourcing away from China and look to India as a reliable supply base for lightweight and precision-engineered parts. Sintercom aims to scale its presence in Europe, North America.

Beyond automotive, the future holds signi cant promise in non-automotive applications. The inherent advantages of sintering cost-ef ciency, precision, and material conservation are driving adoption in industrial machinery, power tools, consumer appliances, medical devices. These adjacent sectors represent an attractive diversi cation opportunity and can reduce reliance on cyclical automotive demand. Strategic focus areas will include investment in R&D for advanced powder metallurgy solutions, strengthening of export partnerships, and incremental capacity expansion aligned to emerging growth sectors.

While risks such as raw material volatility, technology transition, and customer concentration must be managed, Sintercoms adaptability, export readiness, and expansion into non-automotive domains position it to sustain growth and enhance long-term shareholder value.

OPPORTUNITIES AND THREATS:

Opportunities

Rising demand for EV-speci c sintered components in drivetrains, e-motors, braking assemblies.

Expansion of export opportunities as global OEMs/Tier-1s diversify sourcing to India, leveraging cost competitiveness.

Potential to diversify into non-automotive sectors industrial machinery, appliances, medical devices, aerospace, and defence.

Adoption of advanced powder metallurgy manufacturing for innovation and entry into niche, high-value markets.

Threats

Faster-than-expected EV adoption could reduce demand for traditional ICE-related sintered components.

Cyclicality of the automotive sector, leading to demand uctuations.

Exposure to geopolitical risks, trade barriers, and supply chain disruptions impacting exports.

Volatility in raw material prices (metal powders, alloys) affecting margins.

RISKS AND CONCERNS:

In accordance with the SEBI Listing Regulations, the Board of Directors of the Company is responsible for framing, implementing and monitoring the risk management plans of the Company. The Company does identify risks associated with the Company, assess its impact and take appropriate corrective steps to minimize the risks that may threaten the existence of the Company from time to time.

In the natural course of business, we evaluate emerging threats and risks and take mitigation measures to counter them. In the last few years, we have strategically invested in digitalising all business processes. Real-time data availability helps streamlines processes, ensures accurate decision-making, and reduces costs. It has also helped generate automated alerts, ensuring business risks were identi ed early and acted upon swiftly. There are several possible risks on the horizon, both global and domestic level. In India, rural recovery continues to be slow, and this signi cantly impacts the growth trajectory of the economy. Excessive heat in the recent past has impacted the market demand. Less than normal monsoon may also lead to a weaker performance of the rural agricultural sector impacting the already weakened rural demand. Further the economic recovery could be hampered due to any increase in oil & gas price. The above stated factors can create disruption to an already fragile global trade & supply chain situation, increased in ation, and dampen the demand.

The Board has established a Risk Management Policy which formalizes the Companys approach to overview and manages material business risks. The policy is implemented through a top down and bottom-up approach for identifying, assessing, monitoring and managing key risks across the Companys business units. Companys risk management framework is well embedded and continually reviewed by the Board. The Board is satis ed that there are adequate systems and procedures in place to identify, assess, monitor and manage risks. The Audit Committee also reviews reports by members of the management team and recommends suitable action. Risk Mitigation Policy has been approved by the Board.

Risk Mitigation

Sintercom operates in a dynamic business environment where technological shifts, competitive pressures, and market cycles present multiple challenges. The Company has instituted a proactive risk management framework to identify, assess, and mitigate these risks effectively.

With faster-than-expected adoption of electric vehicles potentially reducing demand for ICE-related sintered parts, the Company is actively diversifying its product portfolio. It is developing new sintered solutions for EV drive trains, e-motors, braking ensuring long-term relevance.

To mitigate risks from domestic and global competitors, Sintercom is focusing on innovation, quality, and cost ef ciency. The Company leverages its powder metallurgy expertise to deliver near-net-shape precision components while investing in R&D and process automation to strengthen its technology edge.

Recognizing the inherent cyclicality of the automotive sector, the Company is pursuing diversi cation into non-automotive industries such as industrial machinery, consumer appliances, medical devices, and aerospace. This strategy reduces dependency on passenger vehicle demand alone.

To address uncertainties in global trade, tariffs, or supply chain disruptions, the Company is expanding its customer base across multiple geographies and markets. This geographic diversi cation lowers exposure to any single region while strengthening long-term global relationships.

The Company manages input cost uctuations through a combination of localization of raw material sourcing, long-term supplier partnerships, and cost optimization measures. These initiatives help stabilize margins despite commodity price swings.

To counter risks of competitors adopting advanced technologies, Sintercom is exploring new materials, additive manufacturing techniques, and collaborations with global technology partners. Continuous upskilling of its technical team ensures the Company remains future-ready.

Through this structured approach, Sintercom aims to build resilience, sustain pro tability, and create long-term stakeholder value even amid industry transitions and external uncertainties.

Internal Control Systems and their Adequacy

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. Given the changing needs, the Company has deepened the focus on the function and enhanced the scope of the internal audit department and included areas establishing corporate governance policy, internal control framework, conducting internal audits, management audits, IT audits, drafting and implementing policies and procedures, complying with environmental laws, reviewing and reporting of statutory compliances.

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal nancial controls. An extensive program of internal audits and management reviews supplements the process of internal nancial control framework. Properly documented policies, guidelines and procedures are laid down for this purpose. The internal nancial control framework has been designed to ensure that the nancial and other records are reliable for preparing nancial and other statements and for maintaining accountability of assets. In addition, the Company has identi ed and documented the risks and controls for each process that has a relationship to the nancial operations and reporting.

COMPANY AND PERFORMANCE OVERVIEW:

In the year passed by, your Company continued to make steady growth in the sales numbers. The company growth for the year was in line to the passenger vehicle segment sales growth during the year.

Your Company recorded net sales of Rs. 900 mn in FY 2024 25, against Rs. 877 mn in the previous year, registering a 2.6 per cent year-on-year growth. Sales growth was driven by an uptick in volumes from our major customers. Pro t before depreciation, nance cost and tax expenses (EBITDA) grew to Rs. 148 mn from Rs. 146 mn, representing an EBITDA margin of 16.4 per cent in FY 2024-25. The pro t before tax for the year was Rs. 15 mn compared with Rs. 18 mn in the previous year.

Company is actively diversifying its product portfolio, is pursuing diversi cation into non-automotive industries such as industrial machinery, consumer appliances, medical devices, and aerospace. The Company is expanding its customer base across multiple geographies and markets. This geographic diversi cation lowers exposure to any single region while strengthening long-term global relationships.

Your Company continues to maintain a robust partnership with all its customer OEMs by consistently delivering high-quality innovative products. Our goal for the OEM accounts is to maintain our strong position, offer innovative products and solutions and to maintain the technological competitive advantage.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PRECEDING FINANCIAL YEAR) IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THEREFOR AS REQUIRED VIDE PART B OF SCHEDULE V TO SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (AMENDMENT) REGULATIONS, 2018:

Sr. No.	Particulars	Year Ended
		March 31, 2025	March 31, 2024	Variance %
1	Current ratio	1.69	1.38	22%
2	Debt - Equity ratio	0.52	0.36	43%
3	Debt Service coverage ratio	1.61	1.92	-16%
4	Return on Equity ratio	0.01	0.01	-43%
5	Inventory Turnover ratio	2.75	2.90	-5%
6	Trade Receivables turnover ratio	2.38	2.79	-15%
7	Trade Payables Turnover	2.76	2.71	2%
8	Net Capital Turnover	2.20	3.67	-40%
9	Net Pro t/(loss) Margin	0.74%	1.32%	-44%
10	Return in Capital Employed	10.24%	11.36%	-10%
11	Interest Coverage Ratio	3.04	3.54	-14%
12	Operating Margin Ratio	7%	7%	5%

Details of signi cant changes are as below -

a) Debt Equity ratio (times): Increase in the ratio is mainly on account of increase in long term borrowing by the Company during the previous year, as compared to previous year.

b) Return on Equity Ratio (times): Decrease in the ratio is mainly on account of decrease in net pro t during the year as compared to the previous year.

c) Net Capital Turnover Ratio: Decrease in the ratio by 40% due to increase in net working capital during the year as compared to previous year mainly due to increase in inventory and receivables.

d) Net Pro t/(Loss) Margin (%): Decrease in the current year due to decrease in pro tability during the year as compared to previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

As a Company, we focus on fostering a culture of transparency and meritocracy for our employees. We also emphasise driving excellence through optimal organisational structures, HR systems, processes, and policies. Our commitment to our human resources drives all our developmental initiatives. We also empower our employees and workers to reach their full potential, challenging them to exceed their expectations. We aim to create a work environment and experience where individual skills and contributions are valued.

During the year, the focus of the leadership team and the management team was on development of employees at each of the level. To build a sustainable talent pipeline, Sintercom has partnered with local engineering colleges to launch a Specialized Apprenticeship Program. This program offers hands-on industrial training on sintering processes and quality systems, with placement opportunities for top interns. This has helped strengthen employer branding and ensure skills alignment with Company needs. Sintercom initiated a targeted recruitment drive and workplace inclusion plan to improve gender diversity on the shop oor and in technical roles. As of FY 2024 25, women now constitute 16% of the workforce (up from 5% a year ago).

Various initiatives have been taken which includes formal and informal ways of interaction with the employees of each level directly with the top management. Trainings and skill development has been an integral part of the human resource function. During the year, the importance was also laid down on the importance of employees safety at work and outside. Various competition were conducted within the organization on the safety. The total number of employees of the Company as of 31 March 2025 was 78.

The Company has not had any work stoppages or cessations owing to labour disputes. The Company continues to lay great emphasis on Safety and Security. To ensure adherence to safety protocols, the company follows stringent procedures to safeguard and protect its workforce. The company also keeps prescribing policies and procedures while imparting training to its workforce. It has a system in place that promotes a positive work environment free of all forms of harassment. We thank all our employees for their sincere contributions to the Companys performance and growth.

These initiatives reinforce Sintercoms focus on building a future-ready, skilled, and engaged workforce critical for navigating technological transitions and accelerating growth. Robust industrial relations and worker welfare contribute to operational stability and productivity, while Learning & Development and diversity efforts strengthen employer branding and retention. Together, these HR measures underpin the Companys ambition to scale, innovate, and excel in sintered manufacturing within both automotive and emerging non-auto sectors.

DISCLOSURE OF ACCOUNTING TREATMENT

The Accounting treatment of your Company in the preparation of nancial statements is in consonance with the Indian Accounting Standards 2015 (Ind AS) as amended and there is no deviation in the accounting treatment, different from the said Ind AS

Note:

For sake of brevity the items covered in Boards Report are not repeated in the Management Discussion and Analysis Report.

Cautionary Statement:

Certain Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates and expectation or predictions may be forward looking statements within the meaning of applicable laws and regulations. It cannot be guaranteed that these assumptions and expectations are accurate or will be realized. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic markets, changes in the Government Regulations, tax laws and other statues and incidental factors

FOR AND ON BEHALF OF THE BOARD

For Sintercom India Limited

Hari Nair

Chairperson

DIN: 00471889

Pune, May 12, 2025