Swastik Pipe Ltd Management Discussions

Introduction:

Pursuant to Regulation 34(2)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) read with Schedule V of the Listing Regulations, the Management Discussion and Analysis Report for FY 2025-26, forms part of this Boards Report as follows :

Industry Structure and Developments:

0 Steel demand face macro headwinds .

0 Infrastructure spending driving structural demand.

0 High interest rates impact global construction.

0 Energy transition boosting specialized pipe demand.

Opportunities and Threats:

0 Domestic manufacturing expanding via government infrastructure.

0 Water transport projects increasing tube consumption.

0 Oil and gas sector driving line pipe volume.

0 High raw material volatility compressing operating margins.

Segment-wise:

Swastik Pipe Limited operates in single segments, catering to diverse customer requirements.

Risks and Concerns:

0 Capacity utilization fell below critical economic levels.

0 Raw material procurement disrupted by severe liquidity constraints.

0 Supply chain choked by strict vendor credit terms.

0 NPA classification restricted access to non-fund-based banking limits.

Internal Control Systems and Their Adequacy:

0 Industrial relations remained peaceful and collaborative across plants.

0 Workforce optimized to align with current production run-rates.

0 Key technical team retained despite severe financial stress.

0 Total employee count stands at 171 personnel.

Discussion on Financial Statements in this 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 materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, feedstock availability and prices, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business, and other factors such as litigation and labour negotiations.