Trom Industries Ltd Management Discussions

A. Global Economic Outlook:

The global economy is expected to decelerate slightly in 2025, as the effects of monetary tightening continue to ripple through advanced economies. Global growth is projected at 3.0 percent in 2025, with a marginal improvement to 3.1 percent in 2026, reflecting a modest but steady recovery. Growth in emerging market and developing economies (EMDEs) is expected to be 3.7 percent in 2025, rising to 3.9 percent in 2026, while advanced economies are projected to grow at 1.4 percent in 2025, held back by lingering high interest rates and muted external demand.

Inflation is forecast to decline further, with global headline inflation expected to fall to 4.2 percent in 2025 and 3.6 percent in 2026. Core (underlying) inflation is projected to ease more gradually, as service sector price pressures persist. The decline in inflation has allowed some easing of financial conditions, although central banks remain cautious.

The resolution of earlier financial sector stress, along with easing supply chain disruptions and lower energy prices, has helped moderate downside risks. However, risks to the global outlook remain tilted to the downside. These include the possibility of renewed financial instability as markets adjust to higher-for-longer interest rates, ongoing geopolitical tensions especially the war in Ukraine and the potential for more frequent and intense climate-related disruptions. Chinas economic recovery may also face setbacks due to ongoing property sector issues and weak domestic demand, with global spillovers.

On the upside, faster-than-expected disinflation could allow monetary policy to ease sooner, while resilient domestic demand in key economies could support stronger growth. In this environment, the primary policy objective remains to achieve durable disinflation while safeguarding financial stability. Central banks should continue prioritizing price stability and reinforcing financial supervision and risk monitoring. In the event of market turbulence, prompt liquidity support should be provided while minimizing moral hazard. Governments are also encouraged to rebuild fiscal buffers, with fiscal adjustments focused on targeted support for the most vulnerable.

Structural reforms to improve supply-side capacity such as boosting labor productivity, infrastructure, and competitiveness would facilitate smoother fiscal consolidation and help align inflation with target levels.

For advanced economies, the growth slowdown remains marked. Following a growth rate of 2.7 percent in 2022, output grew by 1.6 percent in 2023 and is projected to stabilize at 1.4 percent in 2025, underscoring the ongoing impact of tight financial conditions. Approximately 90 percent of advanced economies are expected to experience slower growth in 2025 compared to pre-pandemic trends.

B. Overview of the Indian Economy:

The Indian economy is projected to continue with its growth trajectory, with an estimated growth of 6.50% in FY 2024-25, according to the second advance estimates released by the National Statistical Office (NSO), as compared to 9.20% economic growth in FY 2023-24. Indias economic growth reflects a steady and resilient performance in a dynamic global economic environment. The Indian economy continues to be driven by a revitalized manufacturing base and a thriving services sector, and supported by key reform-based policies of the government.

In spite of challenges like stagnant wages affecting domestic consumption, slowing global demand and climate disruptions, India maintains its status as the fastest growing economy, set to dominate the global economic landscape. With global growth expected to be around 2.70% in 2025 and 2026, Indias performance underscores its resilience and growing significance in shaping the worlds economic trajectory and establishing its role as a key driver of economic stability

As per International Monetary Funds (IMF) list of World GDP Rankings 2025, India is currently among the top five largest economies in the world, with a GDP of USD 3.89 trillion ( 332.50 Lakh Crores) at current prices, having grown at an impressive rate in FY 2023-24. Despite global uncertainties, the Indian economy demonstrated remarkable resilience in 2024, characterised by strong GDP growth, substantial foreign exchange reserves, and record levels of foreign direct investment (FDI) inflows. Additionally, it is currently the third-largest economy in the world in terms of GDP based on purchasing power parity (PPP) with a GDP size of USD 16.02 trillion ( 1,369.31 Lakh Crores), as per the data from IMF.

C. Indian Industry Outlook:

Global electricity demand rose by 4.30% in CY 2024 and is forecast to continue to grow at close to 4% out to CY 2027. Rising global electricity demand is primarily fueled by growing expansion of electrification, industrial production, growing electricity consumption by data centers and growth in electric vehicles. Over the next three years, global electricity consumption is forecast to rise by an unprecedented 3,500 TWh, at its fastest pace in years over the Calender Year (CY) 2025-27 period. While the electricity consumption of the advanced economies as a whole remained almost unchanged in CY 2024 compared with CY 2021, these economies are expected to account for 15% of global demand growth over the CY 2025-27 period. Most of the additional demand for electricity over the next few years is projected to come from the emerging economies, which is expected to make up 85% of this growth.

More than half of the global electricity demand in CY 2024 came from China. Overall electricity demand in CY 2024 grew 7%, similar to CY 2023. Supported by economic expansion and with the growing ownership of air conditioners, the South-East Asian countries, India and other emerging markets are recording strong demand growth. Electricity demand in China is forecast to increase by 6% on an average annually by 2027. Indias electricity demand is forecast to grow at an average 6.30% annually over the next three years till 2027, stronger than the 5% average growth rate of demand for electricity recorded during FY 2015 to FY 2024

Solar has been the primary driver of this growth, with capacity increasing more than thirtyfold since 2014. India is steadily progressing toward its target of 500 GW of non-fossil fuel capacity by 2030. Supportive government policies, declining generation costs, and favorable investment conditions continue to enhance the sectors attractiveness. With an estimated renewable energy potential of over 24,000 GW, India is well-positioned to exceed its long-term clean energy deployment goals.

As Indias energy demand is expected to reach approximately 15,820 TWh by 2040, renewable energy will play a central role in ensuring energy security, sustainability, and economic resilience in the decades ahead

D. Opportunities and Threats:

Opportunities:

Green Energy Transition: Growing demand for renewable energy (solar, wind, hydro) requires advanced electrical infrastructure and heavy equipment.

Smart Grid Development: Investments in modernizing electrical grids create demand for transformers, switchgear, and automation systems.

Industrial Expansion in Emerging Markets: Rapid industrialization in Asia, Africa, and Latin America drives the need for large-scale electrical equipment.

Public Infrastructure Projects: Government spending on transportation, utilities, and energy supports demand for heavy electrical systems.

Technological Innovation: Opportunities in IoT integration, energy storage systems, and high-efficiency motors and transformers.

Threats:

Raw Material Price Volatility: Fluctuating costs of steel, copper, and rare earths can impact profit margins.

Intense Global Competition: Price wars and technological advancements from global players, especially in China and Europe.

Regulatory and Compliance Pressure: Increasing environmental and safety regulations add operational and production costs.

Supply Chain Disruptions: Dependence on global suppliers makes the industry vulnerable to delays, trade restrictions, or geopolitical tensions.

Market Saturation in Developed Regions: Slower growth in mature markets limits expansion opportunities and intensifies competition.

E. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. solar business.

The Turnover of the Company for the Financial Year 2024-25 is Rs. 9,332.11 Lakhs.

F. Future Outlook:

The Company can expect growth in the solar EPC sector driven by rising solar energy demand and supportive policies. Strategic focus on innovation and market expansion will be key to leveraging opportunities and achieving financial success.

G. Risks and concerns:

The solar EPC industry faces risks including regulatory changes that can alter project economics, intense competition that pressures profit margins, and supply chain disruptions impacting timelines and costs. Economic fluctuations and rapid technological advancements also pose challenges, along with the complexity of securing project financing. Effective risk management is essential for maintaining stability and growth in this sector.

H. Internal control systems and their adequacy:

The Companys internal control systems are crucial for ensuring regulatory compliance, managing financial risks, and maintaining operational efficiency in the solar EPC sector. Effective controls should encompass compliance with industry standards, robust financial management, and thorough risk mitigation strategies.

Regular audits and assessments are essential to evaluate the adequacy of these controls, identify any weaknesses, and ensure they adapt to evolving industry conditions and project demands. This ongoing review helps maintain operational integrity and financial stability.

Additionally, the following measures are taken to ensure proper control:

Regular internal and external audits.

Implementation of standardized operating procedures. Comprehensive risk management framework. Ongoing employee training and development.

I. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector specific financial ratios. In this regard, the Company has significant changes in key sector specific financial ratios is described in the Financial Statement of this Annual Report.

J. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2024-25 is described in the Directors Report of the Company.

K. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

L. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:		By the order of the Board of
4th Floor, 421, Pramukh Tangent,		Trom Industries Limited
Nr. Sargasan Cross Road,
Gandhinagar, Gujarat, India - 382 421
	Sd/-	Sd/-
Place: Gandhinagar	Pankaj Tanaji Pawar	Jignesh Bharatbhai Patel
Date: 22nd August, 2025	Director	Managing Director
	DIN: 07093588	DIN: 07093538