United Leasing & Industries Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

INDUSTRY SCENARIO

The Indian embroidery industry is a vibrant sector characterized by its rich cultural heritage and a broad market for both traditional and contemporary designs. With its deep-rooted history, the sector has evolved into a significant segment within the Indian textile industry. This report provides an analysis of our embroidery businesss current performance, market trends, strategic positioning, and future outlook.

The rising growth of the textile and apparel industry led to a surge in the demand for embroidery, is acting as a driving factor for the market growth. The global embroidery market size is expected to gain momentum owing to the flourishing growth of the textile and apparel industry during the forecast period. Embroidery is exhibiting a robust presence in large part of the world over the years as it is widely utilized in multiple types of fabric products.

FUTURE OUTLOOK

The Indian embroidery business is poised for significant growth, driven by rising disposable incomes, urbanization, and increasing global demand for unique, artisanal textiles. We plan to capitalize on this potential through strategic expansion into emerging markets, diversification into home d?cor and accessories, and a stronger online presence. Investing in advanced embroidery technology and sustainable practices will enhance efficiency and align with consumer preferences for eco-friendly products. Proactively managing risks, such as economic fluctuations and raw material volatility, alongside leveraging government incentives and maintaining regulatory compliance, will ensure resilience. Financially, we expect steady revenue growth and improved profit margins, supported by strategic investments in infrastructure and technology. Our long-term vision is to establish ourselves as a global leader in the embroidery sector, emphasizing brand strength and international market presence.

OPPORTUNITIES, THREATS, RISK & CONCERNS

OPPORTUNITIES:

Increased global demand for unique and embroidered textiles presents opportunities for expansion into new international markets. The rise of e-commerce platforms offers a significant opportunity to reach a wider customer base and increase sales through online channels.

Collaborations with fashion designers and brands can enhance product visibility and drive higher sales through exclusive and high-profile collections. Emerging technologies, can create new possibilities for innovative embroidery designs and production techniques.

THREATS:

Economic downturns can impact consumer spending and reduce demand for non-essential products, including embroidered textiles. Fluctuations in the prices of raw materials, such as threads and fabrics, can affect profitability and operational costs. The highly competitive market with numerous players poses a threat to market share and pricing power. Dependency on specific suppliers and logistics can lead to disruptions, impacting production and delivery schedules.

RISK & CONCERN:

• Raw Materials Risks: India is one of the largest producers of cotton yarn in the world. The margins of the Indian textile industry are impacted by the fluctuations in cotton prices. In 2023-24 margins improved because of gain in cotton price movement, although average realization may decline due to deflation in raw material cost. • Inflation risk: India has seen variable inflation trends historically. While fluctuations in inflation rates can present challenges in forecasting and managing our costs, they also encourage us to enhance our financial strategies and cost management practices. If there is an uptick in the cost of raw materials due to inflationary trends, or a rise in employee benefit payments driven by inflation in India, we are committed to implementing innovative measures to absorb these costs effectively. Our goal is to minimize the impact on our customers and maintain the integrity of our business operations. • Safety risk: Ensuring a safe and healthy working environment for everyone is vital for boosting productivity and nurturing organisational development. We at SPAL equip the workplace with the necessary safety equipment and keep all the machinery in good working order through regular maintenance and safety inspections. • Finance and credit risk: We evaluate and manage credit risk on the basis of assumptions and factors influenced by market conditions. To mitigate credit risk, we diligently track the creditworthiness of debtors through internal systems that are configured to define credit limits of customers.

HUMAN RESOURCE DEVELOPMENT/ INDUSTRIAL RELATION

HR function is at the core of the Company and plays a major role in nurturing, enhancing and retaining talent through job satisfaction, management development program, etc. The Company has an induction process and Goals/Deliverables are in place for employees based on which appraisals are done.

The primary objective of United Leasing and Industries Limited ("the Company") is to bring about organizational effectiveness by helping employees achieve their personal goals in a manner that enhances the overall performance of the Company.

The fundamental driver of any Company is its people and Industry, there has always been extended focus on the Management of Human Resources. It is widely recognized that the Companys employees are the most valuable asset to the organization and will play a pivotal role in helping the business overcome its present challenges. The belief is that with a well-motivated and energized work force, nothing is impossible.

Financial Performance

Performance on a Standalone basis:

• In FY 2024-25 your company has recorded a standalone total revenue of Rs. 803.93 lacs as against Rs. 726.19 lacs in FY 2023-24. • PAT was Rs. 11.26 lacs as against Rs 8.39 lacs in FY 2023-24. • EPS for FY 2024-25 was 0.38 as against 0.28 in the previous year.

KEY RATIOS

As per provisions of SEBI Listing Regulations, 2015, the significant financial ratios (calculated on standalone basis) are given below:

RATIOS	FY 2024-25	FY 2023-24	% Variance	Remarks
Debtors Turnover	6.81	6.65	2.40%	Lower collections during the year ended March 31, 2025
Inventory Turnover	4.66	3.70	25.87%	Increase in COGS dring the year ended March 31, 2025
Current Ratio	2.50	2.52	-0.90%	N.A.
Interest Coverage Ratio	1.44	1.25	15.29%	EBIT/ Interest Expenses
Debt equity ratio	0.74	0.82	-9.90%	N.A.
Operating Profit Margin (%)	41.57%	41.57%	0.00%	(Revenue-Cost of material consumed-Direct expenses)/Revenue*100
Net Profit	1.43%	1.17%	23.04%	N.A.
Margin (%)

APPRECIATIONS AND ACKNOWLEDGEMENTS:

Your directors place on records their deep appreciation to employees at all levels for their hard work, dedication and commitment, in particular during this unprecedented year. The Directors place on record their special gratitude toward the front-line employees who were working in our factories and in the market to ensure that the Companys products reach to the consumers.

		For and on behalf of the Board
		United Leasing and Industries Limited
Date: 02.09.2025	Sd/-	Sd/-
Place: Delhi	Aditya Khanna	Ashish Khanna
	Director	Managing Director
	DIN: 01860038	DIN: 01251582