Storage Technologies & Automation Ltd Management Discussions

ANNEXURE G

FY25 was a year of strategic consolidation and operational resilience for the Company. Despite a challenging Q3 environment impacting the broader industry, the Company delivered stable revenue growth, reinforced operational capacity, and prepared for international expansion. While H2 margins were impacted by project-linked cost escalations and commodity price volatility, structural steps taken during the year have positioned the business for long-term, pro table growth.

Financial Performance

Standalone

In FY25, the Company reported revenue from operations of 944.2 Mn, re ecting a 6.2% YoY growth over 888.7 Mn in FY24. H2FY25 revenue stood at 508.0 Mn, down 2.4% YoY but up 16.5% HoH, driven by improved execution. While volumes increased, revenue growth was moderated by a decline in steel prices, which impacted average billing per ton. EBITDA for the year stood at 92.5 Mn, down 22.4% YoY from 119.1 Mn, with margins compressing to 9.95% from 13.76% in FY24. This decline was primarily due to one-time project-linked costs incurred in H2FY25, including elevated contractual sta ng and machinery-related expenses, which are not expected to recur in FY26. Consequently, PAT declined 36% YoY to 37.2 Mn, with the PAT margin at 4% versus 6.8% in FY24, re ecting EBITDA pressure partially offset by e cient tax management.

Consolidated

Consolidated revenue stood at 1,003.80 Mn, re ecting a 7.08% YoY increase from 937.41 Mn in FY24. H2FY25 revenue was 509.54 Mn, up 3% HoH but down 9% YoY, as lower steel prices adversely impacted realizations despite higher processed volumes. EBITDA declined 21.9% YoY to 97.1 Mn, with the EBITDA margin compressing to 9.7% from 13.3% in FY24, primarily due to one-time project execution costs incurred in H2FY25. Margin recovery is anticipated in FY26 as cost structures normalize. Consolidated PAT for the year stood at 40.5 Mn, down 33.6% YoY, while adjusted PAT (post-minority interest) was 39.5 Mn, a 35.0% decline. PAT margin narrowed to 3.9% from 6.5% in FY24, re ecting the impact of margin compression across operations.

Strategic Initiatives and Business Developments

New Sales O ces:

To expand domestic reach, the Company established sales o ces in Mumbai and Delhi, enabling faster response times and enhanced market presence in key regions.

Export Expansion:

Initial traction has been achieved in the Middle East with con rmed orders from UAE, Saudi Arabia, and Oman, marking the formal entry into export markets.

Factory Infrastructure and Capabilities:

Investments in robotic welding, powder coating, roll forming, and automated design technologies have reinforced the Companys ability to deliver complex and customized warehousing solutions at scale. Growth drivers include export market ramp-up, domestic demand enhancement through new o ces, and improved operational e ciency supported by scale and automation.

Conclusion

FY25 was a year of operational and structural realignment. While pro tability was impacted by project-related costs and steel price dynamics, the Company strengthened its foundations for long-term expansion. With enhanced market access, international order in ows, and a clearly de ned growth strategy, Storage Technologies and Automation Ltd. is well-positioned to deliver pro table and sustainable growth in FY26 and beyond.