Universal Cables Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The efficient transmission and distribution of electricity are central to a reliable and modern power infrastructure. Power cables play a vital role in this ecosystem, enabling the bulk transfer of electricity from generating stations to substations, and subsequently for distribution to end consumers.

Extra High Voltage (EHV) and High Voltage (HV) cables are primarily deployed in power generation stations, sub-transmission networks, large switchyards, and major industrial, commercial, and residential developments. EHV XLPE cables offer a viable alternative for underground transmission, particularly in urban areas where overhead lines are constrained by space limitations or environmental concerns. While EHV XLPE cables have technical limitations regarding length, they can offer enhanced reliability and reduced maintenance compared to overhead lines. Medium Voltage (MV) cables are predominantly used in power distribution networks, serving as critical links that connect generation with end-use applications. Both MV and HV cables are indispensable to the power sector, acting as key enablers of operational efficiency and the shift toward sustainable energy solutions. Low Voltage (LV) cables, in addition to their role in distribution, cater to a wide array of applications across various industries and residential sectors.

The Indian power cable market continues to witness steady growth, underpinned by supportive government policies, regulatory reforms, and national development programs. This momentum is further propelled by rising electricity demand due to rapid industrialization, modernization of the grid, rural and railway electrification, metro rail expansions, increased renewable energy investments, renewed focus on oil and gas, continued thrust on physical digital infrastructure including data centres and the revival of construction activity. Upgradation and augmentation of existing electrical infrastructure to integrate renewable capacity additions are also contributing significantly to market expansion. Furthermore, the governments push towards domestic manufacturing through Make in India and Atmanirbhar Bharat initiatives has strengthened the push toward reducing imports and boosting indigenous production. As per recent report of Goldman Sachs, significant investment opportunities are foreseen in Indias power sector, particularly in transmission and distribution infrastructure. India needs substantial investment to expand its power transmission network to accommodate the projected increase in power demand and the integration of renewable energy sources. The report underscores the importance of strengthening transmission and distribution networks to minimise losses and ensure reliable power supply. The Report projects that India will require over US$ 550 Billion in power transmission and distribution capex by Financial Year 2050, contributing a major portion of the overall energy transition investment.

As per the available market reports, the global cable and wire market size is estimated to be US$ 220 Billion and India accounts for less than 5% as of fiscal year 2024. However, India has started gaining market share in global cable and wire market, which trend is expected to continue. Further, it is expected that revenue growth for power cables may outperform other sub-categories within wires and cables industry until FY 2034, with revenue for power cables estimated to rise at a CAGR of 14-15% versus light duty cables which is expected to grow around at a CAGR of 12-13%. Cables generally have more diverse use cases and more diverse customer base than wires. Capex in power transmission, distribution, the infrastructure segments such as data centres, EV and the renewable transition are likely to fuel demand for cables in foreseeable future.

The global energy landscape is undergoing a significant transformation, often referred to as the Energy Transition & Power Technologies industry. The key product lines in the critical energy transition equipments and power technologies industry, interalia, include high voltage electrical equipment and solutions such as capacitor banks, harmonic filters, reactive power compensation systems, thyristor-controlled series capacitors and grid interconnection solution feature technologies such as static var compensator systems (SVC) which are catered by Capacitor Division of your Company.

The energy transition equipment and quality power solution products market of, interalia, capacitors and capacitor banks, harmonic filters and SVGs, etc. poised for significant growth in the coming decades. As governments and businesses around the world intensify their efforts to decarbonize the energy sector, the market for energy transition equipment will continue to expand, driven by technological advancements, supportive policies and increasing public awareness of the need for climate action. Emerging markets such as India and Southeast Asia are expected to be major growth areas for energy transition equipment, as these regions are rapidly scaling up their renewable energy capacity and investing in grid modernisation. A capacity bank, also known as a capacitor bank, is a collection of capacitors connected in parallel in critical energy transition system. The primary purpose of capacity bank is to provide reactive power compensation to improve power factor and voltage regulation in electrical networks. As industries become more reliant on stable and high-quality power supply, there is a growing demand for solutions that can improve power factor, voltage stability and grid reliability. Harmonic filters are designed to reduce harmonic distortion in electrical systems caused by nonlinear loads such as power electronic devices, variable frequency drives (VFDs), rectifiers and other equipment. A Static Var Compensator (SVG) is a device used in critical energy transition equipment systems to regulate voltage, improve power factor and enhance system stability by controlling reactive power flow. SVGs are deployed in power systems to compensate for reactive power fluctuations caused by varying loads, particularly those with a high percentage of inductive loads like motors and transformers.

Looking ahead, the Company anticipates sustainable growth, driven by robust demand and strategic capacity enhancements in power cables, wires and quality power solution products dealt with by the Company. This includes supply and turnkey projects from its EHV underground cables and quality power solution products from its facility at Satna (Madhya Pradesh). Additionally, ongoing and planned capacity augmentation at the Satna and Goa facilities of the Company for MV cables, LV cables, insulated winding wires, building wires, and multicore flexible cables are expected to further bolster growth, building upon gradual enhancements made over previous years.

Other product lines including specialty cables, rubber and elastomer cables, various wire and cable types, conductors, and quality power solutions viz. Capacitor and Capacitor Banks, Harmonic Filters, SVGs, etc. have performed well in line with prevailing market trends and available capacities.

The Companys flagship brand "UNISTAR", a symbol of quality and safety, continues to enjoy strong brand equity. The enduring presence of the "UNISTAR" brand alongside the M.P. Birla Group logo reinforces the Companys long-standing commitment to excellence and its legacy of trust, transparency and technology.

Economic Outlook

India is expected to be the fastest growing major economy in the world with projected GDP growth rate between 6.30% and 6.80% for fiscal year 2025-26. The Reserve Bank of India (RBI) has specifically projected a real GDP growth of 6.50% for the financial year 2025-26 citing an evenly balanced outlook despite global uncertainties. As per recent review by the Economic Affairs Department, Government of India, with no major imbalances in the macro aggregates, a subdued inflation rate combined with a growth supportive monetary policy stance, Indias macroeconomic health is in a relative Goldilocks situation. However, as per RBI growing trade disruptions and intensifying geopolitical hostilities could negatively impact the domestic growth outlook. Moreover, a deceleration in global growth will act as a drag on domestic output. Notwithstanding the said contingency, in the prevailing global milieu, the Indian economy remains a key driver of global growth.

Sectoral Review

Infrastructure and energy are two crucial enablers of economic progress and India is focusing strongly on them in successive union budgets because infrastructure and energy are not only closely linked but also to an extent, are dependent on each other. In the Union Budget for the financial year 2025–26, the government has earmarked Rs. 11.21 trillion for capital expenditure, marking a 10.1% increase over the revised estimate of Rs. 10.18 trillion for 2024–25. This allocation constitutes approximately 3.1% of the GDP and underscores the governments continued emphasis on infrastructure development, which may continue to hold the sector in good stead. India has been focusing on energy transition and energy security and the government has been working towards enhancing the countrys energy ecosystem with a plan for near doubling of the capacity in the entire electricity value chain by 2030 with public and private investments. The power demand in India has witnessed strong growth in the economy and improving industrial activity. However, the supply side has not ramped up materially due to under investments in the sector, leading to power shortages in pockets across the country. As a result, the power sector has entered into a capex cycle across generation, transmission and distribution space to ensure adequate supply of power to support the growing economy.

Indias wires and cables industry constitutes 39% of the electrical industry and forms a crucial part in the construction and infrastructure activities of the government and private players. According to an estimate, the cable and wire industry is expected to grow 2x that of GDP growth during financial year 2024-2030, driven by capacity expansion, buoyant domestic demand led by capex cycle in power transmission and distribution, real estate and demand from emerging segments viz. data centres, EV and mobility upgrades, railways and metro railway expansion, etc. On top of this, penetration into export markets, emphasizes the room for growth. It is expected that volume growth in cables will be led by governments focus on sustainable infrastructure driven GDP growth, demand from emerging segment viz. data centres, EV and mobility upgrades and increased acceptance of made in India products in overseas market places. The demand outlook for wires and cables therefore looks to be robust due to substantial investments lined up in India in infrastructure, renewables, railways & metro railways, industrial capex and data centers in the next 7-10 years time-frame.

Power is amongst the most critical components of infrastructure, crucial for economic growth and welfare of the nation. Therefore, the existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The demand for energy is rising across India and this expansion will need commensurate investments in energy transmission, distribution infrastructure in alignment with accelerated pace of energy transition. Indias power sector is one of the most diversified in the world. Sources of power generation range from conventional such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional/renewables such as wind, solar and agriculture and domestic waste. To meet the rapidly increasing demand for electricity in the country, massive addition to the installed generating capacity is required and in further chain a robust and modern transmission, sub-transmission and distribution infrastructure needs to be created for evacuation and smooth distribution of electricity to the end users. In the power sector, while the over dependence on government support and subsidies has been recognised and steps are being taken, more is required to make the sector self-sustaining thereby providing an opportunity to develop an India-focused model with a greater emphasis on sustainable development.

However, the country faces a daunting challenge to reform and modernise the distribution sector, which still lacks sufficient competition in most parts of the country. Distribution holds the key to capacity build-up across the electricity value chain. The Government of India has had some success in nudging states to bring down indebtedness of their distribution monopolies but not on scale to inspire investing confidence by private capital. Historically, the emphasis has been more towards power generation capacity vis-?-vis transmission and distribution. The focus, however, needs to gradually shift towards transmission and distribution networks, including provision for smart metering, installing sub-stations for renewable energy to feed into the grid. As such going ahead, India will need higher investment in transmission and distribution grid infrastructure, grid automation, distributed grids, storage systems, etc. in respect of all of which technologies exist today but need sharper focus which will eventually lead to higher demand in growth for power cable industry. The transformation of National Grid India into Smart National Grid India shall require an upgrade and addition to the current power transmission and distribution infrastructure. India has articulated its clear commitment to reach net-zero emission by 2070 and meet 50% of its electricity requirements from renewable energy (RE) sources by 2030. The initiatives underway to ramp up RE capacity are promising and to bring them to fruition. The countrys efforts to ramp up grid infrastructure, storage capacity and formulate tailor-made energy policies for states will accelerate energy transition to a clean, affordable and accessible energy future. A transmission plan for integration of 500 GW of renewable energy capacity by 2030 is also being implemented in a phased manner commensurate with capacity addition.

Looking back at fiscal year 2024-25, one of the key highlights of Indias power sector was the growing power demand propelled by economic growth and improved industrial activities. As per National Electricity Plan, 2023, this trend is expected to continue in the coming period with peak power demand expected to reach 277 GW in fiscal year 2025-26. This is despite the fact that India still has very low per capital energy usage of approx.1395 Kilowatt hours in fiscal year 2023-24 which is approximately one-third of global average. As the fifth largest economy and most populous country globally, India is poised for sustained high economic growth, driven by its Viksit Bharat aspirations. Consequently, the countrys energy consumption is expected to rise substantially driven by factors like industrialization and urbanization, ambitious renewable energy initiatives and strategic grid integration with two third of incremental supply coming from renewable sources. The country is witnessing swift change in its energy consumption and energy sources simultaneously in a disruptive fashion. Indias energy needs are still growing and therefore legacy capacity using fossil fuels will not be retired even if the country transitions to a higher share of energy generation from renewable sources. The power sector is at the heart of Indias decarbonization strategy as it is one of the largest emitters. The government has launched several initiatives to transition to a low-carbon, sustainable energy future to balance rising energy demand with climate commitments. The Government of Indias mission Lifestyle for Environment (LiFE) launched at COP26, embodies this commitment. By integrating its economic growth aspirations with LiFE mission, India aims to increase its per capital energy and electricity consumption in a sustainable manner, ensuring a harmonious balance between economic development and environmental stewardship. Also, by promoting RE generation, enhancing grid infrastructure and improving distribution efficiency, the government aims to not only reduce emissions but also strengthen energy security and boost economic growth. These initiatives are crucial for achieving Indias ambitious targets, including 500 GW of non-fossil fuel capacity by 2030 and net zero emissions by 2070. The government has set an ambitious target to increase RE capacity by fiscal 2032. According to the National Electricity Plan 2023, issued by the CEA, capacity of 393 GW (311 GW of solar and 82 GW of wind) is planned to be commissioned between fiscals 2023 and 2032, thereby increasing the total RE capacity to ~500 GW by fiscal 2032. The plan also envisages energy storage capacity of 75 GW/ 411 GWh by fiscal 2032. In order to improve the energy distribution infrastructure of public utilities the government launched the Revamped Distribution Sector Scheme (RDSS) in July, 2021 with an outlay of Rs. 3.03 lakh crores, which emphasizes demand-side management to improve power distribution efficiency and decarbonize the sector. By targeting 12-15% aggregate technical and commercial losses and installing 25 crores smart meters, the RDSS enables consumers to optimize energy use, reduce peak demand and reliance on fossil fuel. Enhanced grid infrastructure supports renewable energy integration and distributed energy resources such as roof top solar. Through demand side management, RDSS minimizes wastage, cut emission and accelerates Indias transition to low carbon energy future, aligning with the countrys net zero target by 2070. As such there are exciting times ahead for the power sector as it endeavours to meet growing demand while also meeting its renewable energy goals. There is visible growth opportunities in Power Cables and quality power solution products industry on the back of a combination of several macro factors and strategic initiatives undertaken by the Government. The Governments initiatives such as Power for All, RDSS, etc. should help demand growth for power cables. In addition, Indias capex cycle has witnessed meaningful upswing in recent years with both public and private capex showing positive momentum. In addition to domestic demand, the global market is also witnessing material growth with sectors like renewables and energy transmission and distribution infrastructure driving the pace. The fast rising in demand for electricity in India, particularly in non-metro cities including smart cities is driving the growth for Extra High Voltage Cables. Further, the rapid digital transformation, development of data centers and cloud computing may also propel the demand for power cables in the coming years.

Underground Cables (UG) are generally used in densely populated areas such as cities and metros, where there is a high density of automobiles, high-rise commercial & residential buildings and places with vital installations of uninterrupted power supply (such as water supply system, hospitals, IT services, etc.). UG cables help in ensuring uninterrupted power supply, which is uncommon in the overhead (OH) system. Though transmission and distribution losses have reduced over the years Indias power transmission and distribution loss of ~16% is still one of the highest in the world. This issue can be addressed via underground cabling. Hence, increasing urbanisation may see rising adoption of underground cables in metros and cities in the near future.

In all the states of the country, the underground sub-transmission power transmission network is inevitably being constructed, due to right-of-way constraints in overhead transmission networks, ecological, environmental, safety and aesthetics issues, using High Voltage/Extra High Voltage underground power cable system. In addition, the rising cost of real estate is economically favouring underground power transmission as opposed to overhead power transmission lines which occupies expensive corridor of land. Under the given scenario, the demand for EHV power cables has a large potential for growth in the coming years. The domestic cables and wires market has steadily moved to an organised play from a largely unorganised play, including regional/national players. The shift was led by rising awareness among consumers towards safety and quality, the advent of GST regime, technological innovation, brand building and technical and regulatory compliances.

All these suggest sustainable growth opportunities for products and services of your Company being an established supplier of power cables upto the voltage grade of 400 kV and also of Quality Power Solutions equipment viz. Capacitors and Capacitors Banks, Harmonic Filters & SVGs, etc. for optimize energy saving and conservation.

Industry Specific Raw Material Erraticity

The cable industry continues to navigate a highly volatile raw material landscape, marked by sharp and unpredictable fluctuations in the prices of metals and polymers. These trends have posed significant challenges in cost management, strategic planning, and customer pricing strategies. Copper and aluminium prices remained particularly volatile during the financial year 2024–25, with expectations of further increases in FY 2025–26 due to growing global protectionism, supply chain disruptions and the recalibration of international alliances. A significant portion of raw materials, both domestic and imported, are priced in foreign currencies. Consequently, fluctuations in exchange rates, particularly of the Indian rupee against the US dollar and euro, have further compounded cost pressures. This currency volatility has emerged as a major vulnerability for the Indian wire and cable industry, particularly when combined with unpredictable commodity markets.

While many customers have aligned with industry requests to include raw material price variation clauses in contracts, a substantial portion of the customer base continues to operate under firm price agreements. In response, the industry has proactively engaged with such customers to advocate for the adoption of Price Variation (PV) clauses as a standard procurement practice. The industry remains optimistic about expanding the share of contracts that incorporate PV mechanisms, which are critical for mitigating pricing risk and ensuring long-term sustainability.

Despite these challenges, the availability of metals and polymers has remained relatively stable. Furthermore, the entry of overseas suppliers establishing sales operations in India has improved the quality and accessibility of raw materials for domestic manufacturers. Amid ongoing geopolitical tensions, economic uncertainty, and rising global inflation, the future trajectory of international commodity prices remains difficult to predict. The industry is closely monitoring these developments and continues to adapt its procurement and pricing strategies to remain resilient and competitive in an evolving market environment.

Game Changing Policies to Spur Growth

The state of play of Nations in the international business is tending to lean on protectionism in trade policies. The Government of India has also taken several steps for the benefit of the Indian industries to foster a strong, sustainable and inclusive growth. Recognising the importance of improving and building new roads, railways, ports, airports, telecommunications, energy infrastructure, etc., the Government of India has increased its budgetary allocations to underpin creation of infrastructure, while simultaneously undertaking measures to raise and attract private capital and administrative reforms to make the process for planning and executing infrastructure investments more efficient. The key government initiatives aimed towards better planning and execution have been the National Infrastructure Pipeline (NIP), the National Monetisation Pipeline (NMP) and Gati Shakti. NIP provides a comprehensive list of projects that would need to be implemented for India to upgrade its infrastructure in all areas i.e. transportation, energy, communications and social infrastructure. Goals of the NIP were to ensure seamless connectivity, prioritisation of resources and timely creation of capacities. The NIP was supplemented by a national infrastructure master plan which was announced under the title ‘Gati Shakti covering a period of 25 years with a focus on roads, railways, airports, ports, mass transport, waterways and logistics. Gati Shakti envisages building a digital platform that will bring 16 ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects. The aim of the new National Logistics Policy is to reduce the cost of logistics from 14-18% of GDP to global best practices of 8% by 2030.

To augment "Make in India, Make for India and Make for the World", the Government has initiated another flagship Production Linked Incentive (PLI) Scheme which would upgrade and modernise technology, augment manufacturing capacities and would also attract foreign investments. The Government of India has selected several sectors up till now as beneficiaries of PLI and more sectors are under consideration. Though the cable industry as of now does not fall under the scheme, it would stand to indirectly benefit from the industries entitled to the scheme by way of higher demand from new capital investments for scaling-up the capacities.

At the intersection of a risking economy, transition targets and climatic change, lies Indias power sector with a ravenous appetite with an opportunity to strengthen its new energy sources, Indias power sector is at the forefront of Governments focus. While weighing on energy security, net zero deadline and export ambitions, the country aims for 500GW of renewable energy by the year

2030, 85GW of additional thermal capacity by FY 2032 and nuclear capacity of 21 GW by 2032. To achieve the target of 500 GW non-fossil fuel capacity, the government has adopted multifaceted strategy. Apart from rapid RE capacity addition, streamlining the supply chain, bringing in hybrid and storage solutions and strengthening the domestic production of key inputs. However, the sectors transformation hinges on the key interventions i.e. rapid deployment of storage solutions including proposed hydro, modernization of grid infrastructure with emphasis on dynamic load management and market-based mechanism for better resource allocation. The key challenges therefore remain to be transmission system extension and strengthening, availability of adequate capacity for sharply rising peak power demand, land acquisition and rights of the way clearances, transmission supply chain, grid stability, etc. Indias data centre demand for power according to initial projections, is likely to go upto 3.20 GW by FY 2028 as against current data centre capacity of approx. 1 GW. This growth is being driven by government incentives, infrastructure investments and a using demand for digital services. Further, till the data centres are developed transmission lines and other infrastructure needs to be readied to cater to the demand timely.

Indias peak demand for power which has been rising at a compounded Annual Growth Rate of 6% is now expected to grow faster at 7% in the next five years, owing to increased economic activities, digitalisation and rapid industrialization and rising trend of extended heat waves. The Central Electricity Authority has projected the Countrys peak power demand to touch 270 GW in the financial year 2025-26 and reach 446 GW by 2030. Renewable Energy in India currently accounts for approx.44% of total installed capacity but contributes only 23% to energy generation, with the majority of energy still coming from thermal sources. Although, India us on track to achieve its target of 50% installed capacity renewables well before 2030, the share of renewable energy in overall energy mix demands much closer attention. Further, the scale and speed of energy diversification, coupled with capacity expansion and the enhancement of transmission networks will be pivotal in ensuring that Indias power sector can sustainably meet electricity demand. The Government is expecting investment of approximately 9.15 lakh crores in central and state transmission systems by 2032 as per revised National Electricity Plan, which may help meet the increasing electricity demand, facilitate renewable energy integration and green hydrogen load into the grid. Accordingly, power transmission and distribution sector is set for significant growth, driven by increasing electricity demand and focused renewable energy goals. On the distribution side, the government is focusing on the health of state electricity discoms. The RDSS Scheme launched with an outlay of Rs. 3.03 lakh crores is the biggest driver of capex on the distribution front.

The power sector comprising of Generation, Transmission and Distribution is the key demand driver for electrical cables. Within these sectors, the financial health of distribution companies (Discoms) continues to be a pressing point despite gradual improvement in AT&C losses. The inept state-owned Discoms continued to impede the efficient functioning of the Generation and Transmission sectors. The Central Government has extended financial packages to bail-out the beleaguered Discoms from their massive accumulated losses and debt burden several times in last two decades including through the financial restructuring plan in 2013, Ujwal Discom Assurance Yojana I in 2017 and II in 2020. In addition to the liquidity infusion, policy changes and reforms are being implemented for sustained operational efficiency. It is expected that ongoing RDSS will be helpful in financing continued reforms focused on Discoms sustainability and may benefit consumers and industry alike.

In addition, a greater push towards Renewable Energy and creating transmission evacuation infrastructure for renewable energy generating plants by developing green energy corridors, accelerated bidding trajectory for renewable energy thereby providing visibility on future capacity addition, liquidity infusion scheme(s) for capex to state governments and sector reforms in power transmission and distribution sector are some of the initiatives which may fuel demand for power cables in foreseeable future. Further, Union Budget 2025 has allocated Rs. 48396 Crores to the power sector towards energy security and grid modernization which includes Rs. 16021 Crores investment in revamped distribution sector scheme (RDSS) to enhance efficiency and financial health of discoms. Plans have also been laid out to incentivize electricity distribution reforms and enhance intra-state transmission capacity by states. States will be allowed to engage in additional borrowing of 0.50 percent of GSDP, contingent on these reforms. Further, in terms of economic investment, there is a focus on public-private partnership in infrastructure, with a proposed outlay of

Rs. 1.50 trillion for 50 year interest free loans to states for capital expenditure. As a part of Nuclear Energy Mission for Viksit Bharat development of atleast 100GW of nuclear energy by 2047 is considered to be essential for energy transition efforts. The Budget also laid focus on export led growth and integration into global supply chains which is a clear signal of Indias ambition to become global manufacturing hub aligning with the vision of transforming "Make in India" into "Make for India" and "Make for the World". By prioritizing domestic manufacturing, energy storage nuclear energy, skilling and R&D, the government has set the stage for a new chapter in Indias evolution of not only meeting countrys energy needs but also lead the world in clean energy innovation.

In Search of Realistic Optimism

India presents a compelling mix of macro-economic stability, diverse sectoral opportunities and a concurrent rise in consumer and infrastructure spending and corporate investment. Together, these factors signal a potential inflection point in countrys growth trajectory. Over the past few years, your Company has significantly strengthened, streamlined and simplified business and put in place effective strategy to gradually scale up the operations and improve market share. Going forward, volatility will continue to mark economic cycle from wide spread geo political conflicts, military escalations, the redrawing of supply chains and tariff regimes. AI, energy transition and in those energy landscapes, your Company continues to take decisive, future focused steps to ensure sustained relevance by pursuing clearly defined growth priorities to stay agile and well positioned for emerging growth opportunities.

In addition to the industry tailwinds, your Company is well placed to achieve the targeted growth given the fact that it is the foremost and industry leading producer of Extra High Voltage Cables with capabilities to produce EHV Cables upto 400kV voltage grade with state-of-the-art VCV process. As electricity consumption grows in India, the upgrade of infrastructure becomes imminent. Additionally, the increased focus on exports with successful completion of prestigious export orders for EHV cables including 400kV EHV HVAC Cables to European market driving revenue growth higher than the industry and the ongoing capacity augmentation will help debottleneck capacity in phased manner by first quarter of financial year 2026-27. It will sustain the growth momentum and maintain the overall market share in the wake of strong demand environment in domestic and global markets. As per CRU market intelligence report, global HV and EHV cable demand is expected to grow at a CAGR of 13.30% upto the year 2030 and EHV cables is projected to be most exciting sector within wire and cable for growth, which augurs well for the Company.

PRODUCT-WISE PERFORMANCE, OPPORTUNITIES, THREATS & BUSINESS OUTLOOK Power Cables & Capacitors

Revenue from operations during the year was Rs. 2408.39 Crores as compared to Rs. 2020.67 Crores during the previous year registering a increase of 19.19%.

EHV Power Cables

The Extra High Voltage (EHV) Power Cable segment recorded a revenue growth about 20% during the year under review, compared to the corresponding previous financial year. The Companys Vertical Continuous Vulcanisation (VCV) lines, dedicated to EHV power cable production, are equipped with state-of-the-art technology and are fully prepared to meet the anticipated surge in demand for EHV cables. This modern infrastructure offers the Company a distinct competitive edge by ensuring superior product quality and faster delivery timelines.

Over the years, the Company has established itself as a leader in the EHV cable segment, offering one of the broadest product portfolios in the domestic market, with capabilities extending up to 400 kV. The Company has over the years gained best in class credentials in EHV Cables business covering widest range of products upto 400 kV in domestic as well as Export market. With the EHV cable business poised for significant growth, it is expected to be a key driver of the Companys expansion in both domestic and international markets. The Company is also actively pursuing new geographical opportunities in the EHV (HVAC) cable space through its technical collaborator. This strategic global expansion will not only diversify the Companys revenue base but also reduce dependence on the domestic market, thereby enhancing resilience to market volatility.

HV & MV Power Cables

During the year under review, the Companys High Voltage (HV) and Medium Voltage (MV) Power Cable segment recorded a revenue growth of around 30% over the previous financial year. This growth was primarily driven by the achievement of optimum capacity utilization, reflecting the Companys operational efficiency and responsiveness to rising demand.

The Company is presently equipped with four state-of-the-art Continuous Catenary Vulcanization (CCV) lines, along with fully integrated balancing equipment and machinery. This robust infrastructure provides formidable manufacturing capacity and plays a pivotal role in enabling the Company to capitalize on emerging opportunities, particularly amid the strong infrastructure push in the countrys post-pandemic growth environment.

The manufacturing setup is also designed with inherent flexibility, allowing seamless transitions between EHV and MV cable production, an advantage in managing fluctuating and asymmetric market demand.

With the Government placing strong emphasis on upgrading the power distribution infrastructure and reducing Aggregate Technical & Commercial (AT&C) losses, the demand for HV and MV power cables is expected to rise steadily, as they are essential components in nearly all infrastructure development projects.

To proactively harness these growth opportunities, the Company has expanded the scope of its ongoing capacity augmentation projects at its Satna (M.P.) and Verna (Goa) facilities. The total capital outlay for these projects has been increased from Rs. 277 Crores to over Rs. 505 Crores, driven by a positive business outlook and sustained demand across the full spectrum of the Companys power cable offerings Low Voltage (LV), Medium Voltage (MV) and High/Extra High Voltage (HV/EHV) in both domestic and international markets. The Phase I of the capacity expansion for low voltage cables, flexible wires/building wire, etc. is scheduled to become operational in the third quarter of Fiscal Year 2025-26. The Phase II of the expansion involving two (2) new CCV Lines is progressing as per schedule and is expected to be fully operational in the first quarter of fiscal year 2026-27.

Upon successful implementation, the enhanced capacity will not only strengthen the Companys overall manufacturing capabilities but also reinforce its operational agility. The proposed expansion will further enhance the Companys ability to dynamically switch production between key products such as HV/EHV and MV XLPE Insulated Power Cables, ensuring responsiveness to market shifts and positioning the Company for sustained growth in the evolving global wires and cables industry.

LV Cables & Conductors

During the year under review, revenue from Low Voltage (LV) Power Cables & Conductors grew around 9% compared to the previous financial year by achieving most optimum capacity utilisation. Recognising the strategic importance of this large and competitive market segment, the Company considers it essential to expand its manufacturing capacity where cost efficiency and economies of scale are critical for sustained growth.

The LV cable segment has the widest range of applications and therefore constitutes a significant portion of the overall power cable industry. The ongoing growth in the real estate sector, metro railway projects, and Smart City developments is expected to further drive demand for LV power cables.

In response to these opportunities, the Company has undertaken a phased expansion of its LV cable production capacity at its Satna (M.P.) and Verna (Goa) facilities. The enhanced capacity is expected to be fully operational by third quarter of financial year 2025-26. This includes the modernisation of existing infrastructure by integrating advanced machinery and balancing equipment to improve efficiency and scale.

The Company continues to maintain a well-established dealer network across multiple regions in India, ensuring effective market reach. Backed by strong brand equity, the Company does not anticipate any significant marketing challenges in scaling up its LV cable business. Additionally, there is a clear focus on developing specialised cable products with enhanced fire safety features and environmentally responsible specifications, aligned with current market and regulatory expectations.

Rubber Cable for Original Equipment Manufacturers & Industries

During the year under review, revenue from Rubber Specialty Cables declined around 12% compared to the previous financial year. Despite this, the Company maintains a strong position in this niche market segment, supported by a diverse and specialised product portfolio. The Company caters to a wide range of sectors including original equipment manufacturers (OEMs), wind energy, railways, steel and cement plants, petrochemical units, onshore and offshore oil rigs, shipbuilding, heavy engineering, and mining industries.

With advanced manufacturing capabilities, including Pressurised Liquid Salt Bath Curing (PLCV) technology - the only one of its kind in India, the Company holds a competitive edge in the production of rubber-based specialty cables. Furthermore, the presence of in-house compounding facilities allows the formulation of a wide spectrum of polymer compounds tailored to specific customer requirements.

However, the conventional rubber cable market has seen a steady contraction, primarily due to the increasing substitution by Electron Beam Irradiated Cross-Linked Cables in various applications. Acknowledging this industry shift, the Companys associate entity has established a facility for manufacturing Electron Beam Cables, leveraging the synergistic infrastructure available within the associate company. This strategic move positions the Group to retain its relevance in the evolving specialty cable market.

Light Duty Wires & Cables and Optical Fibre Cables

The Goa unit of the Company manufactures Light Duty Wires & Cables and Optical Fibre Cables. During the year under review, the aggregate revenue from these segments recorded a growth of around 16% compared to the previous financial year. This performance was primarily driven by sustained demand for light-duty wires and cables, including winding wires, specialised building wires, flat cables, and multicore flexible cables. However, the turnover from Optical Fibre Cables remained negligible due to a slowdown in demand.

While the demand for PVC winding wires has plateaued, the Company has strategically positioned itself as a dedicated supplier to major Original Equipment Manufacturers (OEMs). To strengthen its market position, the Company has also expanded its infrastructure to manufacture Polywrap winding wires, which is expected to enhance its market share in the winding wire segment.

In addition, the Company has also undertaken a substantial capacity expansion at its Goa facility, with a focus on specialised building wires, and multicore flexible cables. This expansion is expected to be fully operational by the middle of the financial year 2025–26, and will provide a significant boost to the Goa units revenue growth.

Quality Power Solutions viz. Capacitor and Capacitor Banks, Harmonic Filters, SVGs, etc.

The Quality Power Solutions business of the Company achieved a significant milestone by surpassing the turnover of Rs. 100 crores for the first time, registering a growth of around 6% during the year under review compared to the previous financial year. The demand outlook remains positive, driven by the initiatives of public and private utilities and renewable energy developers to enhance power quality through the integration of quality power solutions into their systems.

The Company offers a comprehensive product portfolio that includes Low Tension (LT) and High Tension (HT) capacitors up to the 132 kV class. These are classified into fixed-type shunt capacitors and automatically switched capacitors for Low Voltage (LV), Medium Voltage (MV), and 33 kV systems. In addition, solutions such as Active Harmonic Filters (AHF), Static VAR Generators (SVG), and Hybrid Filters, which were introduced earlier, have been gradually gaining market acceptance and have received a strong response from the infrastructure segment. The growing requirement for reactive power compensation in industrial, transmission, and distribution applications is expected to further boost demand. There is also a rising need to supply bulk capacitors to the national grid, particularly at locations connected with solar and wind power. Furthermore, demand is increasing for tuned and high-pass harmonic filter capacitor banks at such grid points, to help bring total harmonic distortion (THD) and total demand distortion (TDD) levels within the IEEE 519 standard, as mandated by the Central Electricity Authority.

The Quality Power Solutions market in India has witnessed significant growth in recent years, driven by ambitious targets for renewable energy deployment, including solar, wind and hydroelectric power. The Indian power quality products market is expected to grow at a CAGR of 9% in the period from 2023-2028. The industry is expected to grow from USD 798 Million in 2023 to USD 1.22 Billion in 2028. In 2028, capacitor banks will contribute around 28.70% of the market share followed by harmonic filters, static var compensator (SVC), static synchronous (STATCOM) and others at 19.10%, 13.30%, 5.40% and 33.50% respectively. Whereas the public utility market by application will continue to contribute the largest share at 46.10% followed by industrial and others at 31.30% and 22.70% respectively as of 2028.

To seize these emerging opportunities, the Company has been actively focusing on contracts for supply, installation, testing, and commissioning (SITC) of MV and EHV capacitors, especially from state utilities and EPC players operating in wind and solar energy. To enhance competitiveness, the Company has established an in-house manufacturing setup for MV automatic power factor control panels and has successfully secured new type test reports that align with qualification criteria in public tenders. Furthermore, the Company is also concentrating on supplying and commissioning 33 kV single-tuned and high-pass harmonic filters, along with 33 kV automatic power factor control systems for renewable energy projects. Harmonic filter banks have already been successfully commissioned for solar power plants in select states.

In response to the evolving energy ecosystem, the Company has repositioned itself as a solution provider, delivering comprehensive, concept-to-commissioning quality power system solutions. This realignment includes not just the supply of key equipment, but also technical consulting, onsite commissioning, and maintenance services, thereby enhancing its value proposition in the market.

Exports

The Company has adopted a multipronged strategy to drive its export business, which includes directly participating in international tenders floated by overseas customers as well as executing export orders through its long-standing overseas technical collaborator. During the year under review, revenue from direct exports (excluding exports through merchant exporters) stood at Rs. 209.02 crores. The Company has successfully expanded its presence in key international markets, notably in the Extra High Voltage (EHV) cable segment across Europe and Latin America, along with neighbouring countries such as Bangladesh and Sri Lanka. With a robust pipeline of pending and anticipated orders, the Company expects sustained growth in its export operations. This momentum is further supported by favourable government policies, the development of a domestic ecosystem for raw materials, and the global shift towards a "China plus one" sourcing strategy, all of which are expected to open up new geographies and enhance export revenues. The Company has also been granted the prestigious "Two Star Export House" status by the Directorate General of Foreign Trade, Ministry of Commerce, Government of India, which remains valid until 31^st March, 2028.

Overseas Competition

In the power cable segment, foreign manufacturers do not pose a significant competitive threat to Indian manufacturers in the High Voltage (HV), Medium Voltage (MV), and Low Voltage (LV) categories. However, in the Extra High Voltage (EHV) segment, the Company faces competition primarily from EPC contractors supported by overseas cable manufacturers. The intensity of such competition in the EPC business has been mitigated to some extent by the implementation of the "Preference to Make in India" public procurement policy, which grants a margin of preference to domestic manufacturers, provided they meet the stipulated local content requirements. This policy framework is gradually shifting the competitive landscape, fostering a more level playing field, and offering greater opportunities for India-based manufacturers.

FINANCIAL REVIEW

The financial performance of the Company during the year 2024-25 is stated as below:

• Your Companys total Revenue from Operations for the fiscal year increased by 19.19% at Rs. 240838.62 lakhs as compared to Rs. 202066.76 lakhs in the previous year.

• The aggregate Other Income during the year 2024-25 decreased to Rs. 2281.39 lakhs as compared to Rs. 2360.27 lakhs in the previous year mainly due to decrease in Dividend Income.

• The Company Earnings before Interest (finance costs), Tax, Depreciation and Amortisation (EBITDA) during the current fiscal year Rs. 20241.69 lakhs was up by 9.24% from the previous fiscal year Rs. 18529.49 lakhs and Profit Before Tax (PBT) of Rs. 7125.19 lakhs was up by 1.69% from previous fiscal year at Rs. 7007.07 lakhs.

• During the year under review, the Company Profit After Tax for the fiscal year increased 5.56% year-on-year to Rs. 5727.96 lakhs, compared with Rs. 5426.18 lakhs in the previous fiscal year.

• The finance cost has increased to Rs. 10384.69 lakhs (previous year Rs. 9146.78 lakhs).

• During the year, the Company has maintained optimum working capital, constant credit period levels from suppliers and strategically maintained inventory levels to support the increased volume of operations.

• There was no change in the capital structure during the year. The Other Equity of the Company stood at Rs. 81103.39 lakhs during the year under review as compared to Rs. 82896.06 lakhs in the previous year.

• The Inventories in absolute term increased to Rs. 39532.18 lakhs as on March 31, 2025 from Rs. 28401.52 lakhs as at the end of the previous year.

• The Trade Receivable decreased to Rs. 91914.65 lakhs as on March 31, 2025 from Rs. 108486.40 lakhs as at the end of the previous year.

• Key Financial Information (Standalone & Consolidated):

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from Operations	240838.62	202066.76	240838.62	202066.76
Profit before Finance Costs Depreciation/ Amortisation and Tax	20241.69	18529.49	24862.11	25935.31
Net Profit after Tax	5727.96	5426.18	8938.51	10822.46
Fixed Assets	23452.21	17814.17	23452.21	17814.17
Investments	40773.51	46601.69	163913.17	167424.46

• For detailed information on the financial performance with respect to operational performance, a reference may please be made to the financial statements.

• Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios:

Ratios	2024-25	2023-24	Variation	Reasons for Change
Return on Investments (in %)	(31.67)	33.45%	(194.68%)	Decrease in Return on Investments is attributable to the decrease in Fair Value of Investments.

• Details of changes in Return on Net Worth is as below:

Ratio	2024-25	2023-24	Variation	Reasons for Change
Return on Net Worth (in %)	6.77%	6.28%	7.80%	Due to increase in profitability.

RISK & CONCERNS:

The Company embodies risk control measures for enhancing and protecting the values of the Company. The Company acknowledges risks, not limited to operational, financial or compliance that could affect the future performance and market positioning of your Company. In view of the same the Company takes a qualitative risk assessment rather than a quantitative approach. The Company embraces a risk management portfolio for forecasting and mitigating the impact of internal and external risk factors. The internal risks which are mainly associated with the operations of the Company and the external risks which are linked with the economic and market volatilities are stated below:

INTERNAL RISKS: Strategic Risk

Considering the comprehensive picture of the challenges faced by the Company, risk mitigation policies have been put in place. The strategic risk alleviation is aimed at protecting the values of the Company. Strategic risk factors lurk in the Companys decision on various strategic objectives, e.g., organisational need to change roles and responsibilities, stronger governance, infusing of new skills, Capex portfolio, new competing requirements, degree of exposure in business risk-taking based on speculative gains, quantum of contingencies in different functions, timing decision on entering into new businesses, hiving off or vacating existing business activities, inclusive growth plan versus inorganic growth strategy. In pursuit of value against risk factors, the Company decides on balancing the growth, risk and return.

Policy Risk

The Company integrates the risk control measures into the organisations overall governance by periodically assessing the risks of the policies for internal operations and the statutory issues. Based on the risk assessment, the policies are amended from time to time.

Employee Turnover Risk

The Company retains a team of qualified and experienced personnel where the attrition rate is lower than the industry average. Poaching of personnel by other industries both domestic and overseas is a risk factor. The loss of key personnel to competitors is a risk where the Companys technical information would be acquired by the competitors. The Company is motivating and rewarding employees to retain talent. The Company also maintains a policy to acquire talent as a succession plan to support the Companys growth strategy.

Working Capital Risk

The Company caters to the infrastructural and industrial segments, which largely depends on the economic buoyancy. Therefore, any setback in the economy directly impinges on the demand emerging from the infrastructural and industrial segments. The risk of economic downturn could lead to fund scarcity and delayed realisation of receivables which in turn would affect the working capital requirements of the Company. The Company gives priority to the customers who have sound financial locus standi. The Company closely monitors the working capital requirements by constant follow up on receivables and maintaining lean and symmetric inventories.

Liquidated Damage Risk

The Customers have become more demanding in terms of price and delivery period. Owing to intense competition, short delivery contracts have to be accepted by the Company. In case of failure to meet the delivery period, the Company is at a risk of being imposed with liquidated damage. The Company is constantly mitigating its internal constraints to improve the efficiencies in an integrated manner in all the functional areas including execution of turnkey/works contracts to reduce the possibilities of such risk.

Operational Risk

Operational risks related to people, processes, systems and external factors have a potential risk on the Companys performance. To reduce such risk, the Company has a risk-review policy in all areas of operations.

Project Risk

The Company is executing large turnkey projects. To implement such projects, statutory obligations from various authorities relating to right-of-way permissions are necessary. As these statutory obligations are neither in the control of the user nor within the control of the Company, this is a potential risk which may cause deferment of the projects resulting to blockage of receivables and cost over-run. The Company constantly keeps the customer informed on such delays involving statutory requirements in order to avoid the imposition of liquidated damages. The Company meticulously monitors the projects with constant coordination between the execution team at the respective sites with review at regular intervals. Prior to targeting project contracts, the Company carefully weighs the feasibility of timely implementing the projects.

Technology Risk

Your Company is agile on the technology frontier by constantly reviewing new technology in terms of product and process to avoid obsolescence. The Company has a background of constantly upgrading the technology to maintain its position at par with international players and remain ahead of its peers in the home-turf.

Growth Stagnation Risk

The Company has a profitable growth plan and avoids the risk of "growth-trap". The Company believes in a "good growth plan" for sustainability rather than being over-zealous to get bigger and brasher for risky acquisition for attaining a higher market share on a low margin strategy. The strategy of your Company is to optimise its resources on high-end-high-margin products as opposed to high-volume-low-margin products. Hence, the top-line growth is compensated with a better bottom-line ensuring better returns on capital employed.

Product Development Risk

Your Company has embraced the principle of the constant need for product innovation as per evolving industry standards. The newly developed products are validated by type testing and long-term accelerated ageing test from a recognised independent testing laboratory, if required. As these tests have significant cost involvement, any failure in the product development results to financial and opportunity loss. The recognised Research & Development Lab and in-house testing laboratories of the Company have NABL Accreditation and is equipped with comprehensive testing facilities which can verify and assess the quality of the product during the process and final stage prior to conducting the certification tests at an independent laboratory.

Brand Attrition Risk

New brands of various players have entered into the market segments which are popularised through advertising media and may gradually eclipse the Companys brand. The hallmark of the Companys success in retaining the sheen of its brand is by way of maintaining a top-quality image. The Companys brand image is synonymous to the best-of-class in quality. The Company issues periodical advertisements in some of the prestigious technical journals, participates in seminars & industrial exhibitions, publish technical papers to retain the brand image and invites customers and consultants for exposition of its manufacturing facilities. These activities are aimed at brand building and promotional strategies.

EXTERNAL RISKS:

Artificial and non-explicit trade barriers in certain export markets

The global power cables trade is being increasingly exposed to trade policies and tariffs aimed to support and protect local manufacturing. The ongoing geopolitical events and economic shifts by way of growing global protectionism, supply chain disruption and the recalibration of international alliances and the rise of economic nationalism have also created fluid situation forcing to reassess dependencies and adapt to new dynamics. As a consequence, escalating costs of raw materials and logistical operations, supply chain bottlenecks caused by geo-political developments, regional conflicts and social unrest may impact business operations. Further the implementation of sustainable practices in manufacturing and operations adhering to stringent environment and safety regulations can be costly and complex in nature for compliance as limited availability of sustainable materials and standardisation challenges hinder the industrys efforts to adopt environment friendly practices. In addition, training of workforce on the changing market landscapes and regulatory regime, market issues such as delivery delays, geopolitical tensions, and natural disasters can disrupt the supply chain requiring efforts for securing and diversifying a robust supply chain management system to handle price volatility and ensure a steady supply of raw materials.

Market Demand Risk

Historically, the demand of power cables has been cyclical in pattern. Your Company is dependent on the infrastructural sector, industries and original equipment manufacturers. The Government policies have a direct bearing on the demand from the various market segments. Your Company has a broad base clientele, wide product range and flexible manufacturing set-up, therefore, it can somewhat off-set the cyclical or depressed demand of affected segment with the other segments. From time-to-time, the Company makes changes in its product- mix to suit the order and demand pattern.

Customer Risk

Your Company is prone to risk of customers priority shift, increasing customer power and over-reliance on major customers. To mitigate these risks, your Company maintains constant touch with its clientele to understand and deliver products and services aligned to its changing priorities. Your Company maintains strong business relationship with large customers by providing technical guidance and information, support on urgent and crisis requirements to remain virtually indispensable to the client. Your Company has built a reputation as a preferred supplier with most of its customers by creating a quality trust in a bid to protect itself from competition and entry of new players.

Environmental, Social and Governance (ESG) factors gained global relevance as key indicators for long term value creations requiring organisations to demonstrate integration of sustainable development practices in their operations. The Company has initiated appropriate measures for ESG implementation with internal and external stakeholders engagement in line with established global practices.

Competition Risk

The nature of competitive risk is distinct for each product group. In the EHV segment, the competition is from both, the Indian and the overseas manufacturers. The risk involves entry barriers which are gradually being made more stringent by the customers to screen out several players. It is imperative for the Company to acquire performance record credentials from the user on supply and installation to qualify as an eligible bidder. It is also necessary to repeat test and revalidate test reports for specific type & design of the product. The Company has to keep at par with the development and innovation introduced by the multinational companies to avoid the risk of obsolescence. In the HV & MV segment, new entrants pose a risk on the price competitiveness. The LV segment is intensely competitive with the proliferation of regional producers of low-quality-low-margin products which has been pernicious to health of the organised sector. The Company is addressing to the quality conscious customers to retain its market share.

Raw Material Price Risk

The prices of international commodities e.g., copper, aluminium, lead and polymers, which are the key raw material components, are subject to considerable price volatility. Further, strict implementations of quality control orders without adequate and competitive local production facilities matching with global quality standards for key inputs also poses risk of price volatility and leads to unjustified price increases. Commodities such as Aluminium and copper have use cases for higher applications in energy transition products. As a result, green inflation risks remain high. Since the market prices of cables are generally on firm price basis, the seesawing prices of these commodities can severely impact the cost of the product where the consequential risk must be borne by the Company. The Company gives priority to customers who allow price variation on input raw materials. In case of firm price contracts with protracted deliveries, the Company is actively pursuing back-to-back hedging that involves identifying the exposure timely and hedging it with vendor(s) at fixed price or by taking a future position at London Metal Exchange (LME) promptly to avoid such risk. Occasional scarcity of polymers in the global market is a risk in terms of meeting customers delivery commitments. Over and above, these polymer prices are sensitive to the crude oil prices where the volatility has been unprecedented. The Company is ameliorating such risk by procuring the materials in tranches to even-out price fluctuations. However, the relentless inflation trend in commodities which has been and will be a pain-point in the near future as well.

Other External Economic Risks

Prevailing financial and liquidity conditions within the broader economy, including governmental budgetary allocations for key clients, and the Companys capacity to sustain market share amid intensifying competitive pressures. Unfavourable macro-economic environment, such as fluctuating interest rates, inflation and systemic financial crises scenario, could lead to a global slow down in growth, market recessions and may affect economic stability. The interconnected nature of business processes in the digital environment is increasing the risks of cyber threats and data breach by inimical third parties, potentially disrupting Companys business operations causing financial losses or reputational damage. The Company, however, ensures safe handling of the Companys sensitive data as well as that of its Associates by implementing various controls.

INTERNAL CONTROL SYSTEMS

The Company has an adequate system of internal control in place, which assures of: Authorisation, recording, analyzing and reporting of transactions.

Recording and adequate safeguarding of assets.

Upkeep of accounting records and trustworthiness of financial information.

Key elements are:

Clear and well-defined organisation structure and limits of financial authority and well laid out standard operating procedures (SOPs) for each functional authority and department; Corporate policies for financial reporting, accounting, information security, investment appraisal and corporate governance; Annual Operating Business Plan (AOP) including identifying key strengths, weaknesses, opportunities & threats; External firm of Chartered Accountants to carry out internal audit of all functions including physical verification of inventories; Risk Management Committee and Audit Committee of the Board which monitors and reviews all risks and control issues and financial matters; Computerized and integrated financial and accounting functions, information feedback system of process parameters and back tracing from finished products to raw material stage; The Company has implemented SAP S/4HANA 2022, an advanced version of enterprise resource planning (ERP) software, to achieve improved data management, seamless integration of functional departments, and enhanced internal control mechanisms.

Routine evaluation of all financial operating and information technology system; and Laying down risk assessment and minimisation procedures and regular review of the same.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

The Company do realise the importance of creating high performance organisation with motivated work force rather than having a transactional relationship, by leveraging deeper bonds with the employees. The Companys policies are accordingly framed for organisational excellence by developing and inspiring the true potential of Companys human capital to fully channelize the people power and create inclusive workplace through effective leadership, meaningful values and a culture where employees experience high levels of trust, such that each employee is able to bring their best self to work. The Company is creating a workplace culture where leaders empower all individuals to reach their full potential and where every employee feels a sense of belonging regardless of their demography. During the year, capability building process was further strengthened for the core business purposes including reskilling and upskilling not only for adapting the emerging technological advancements in power cable and quality power solution products industry but also about anticipating change and preparing the Company for it with agility, empathy and empowerment. Implementation of healthy practices of Human Resource Development activities for overall development of human assets and induction programme for professionally qualified and skilled manpower including internal and external training programmes, workshops & seminars are the constant feature of the Company. The Company fulfil its task of training and development of its employees to the maximum extent by sponsoring them to various programmes and courses, such as Quality Circles & SS initiatives. The Company is fully seized of the prevailing unprecedented volatility from tariffs to supply chain disruptions, military conflicts requiring more layered and demanding talent as the future is becoming increasingly challenging, the Company is therefore carefully training and empowering senior management team to handle complexities in business on a larger scale, pivot quickly and manage ambiguity, equip with tech fluency and rally together diverse teams and bring people centric leadership to the table in order to make use change velocity and disruptions as opportunity to drive competitive advantages. Further, more than quantitative factors, qualitative factors such as leadership style, entrepreneurial thinking, growth and challenging mindset, learning and change agility are playing a significant role in hiring decisions.

The Company is dedicated to do the welfare of its employees, their families and surrounding localities of the factory premises by providing social, culture and educational upliftment. The Company is increasingly focusing on holistic employee wellness owing to major changes in the working environment. The Company believes that employees well-being will be a crucial component in employees performance and retention and has a far reading impact on the Companys growth journey in future with the motive to keep them engaged for the long term. The Company is maintaining Residential Colony for its employees at Satna with Staff Recreation & Health Center together with Reading Room, Staff Club, Indoor/Outdoor Game facilities, Temple, Children Park, Dispensary, etc.

The Company is committed to establish Risk-free and Zero accident work environment. The Company is regularly doing various social activities related to rural development, healthcare and educational infrastructure and support to the ones who need it most, environmental awareness, women empowerment and skill development, etc. under CSR.

The Company conducts business in environmentally conscious way by negating the damage with environmentally positive and socially responsive initiatives. The Companys robust ESG framework which is aligned with contemporary domestic and global protocols, guidelines and standards is fully integrated with M.P.Birla Groups deep commitment rooted in significant social value creation in addition to economic value of an enterprise while ensuring that all business decisions are aligned with sustainability principles across environmental, social and governance pillars. While the Company has always been mindful of conducting business in a sustainable manner, the implementation of ESG framework conforming to applicable global standards will further strengthen resilience, transform organisation culture and create long term value for all stakeholders.

The Company continued to maintain healthy and cordial relationship with its employees throughout the year. A Committee, comprising of senior officials, regularly reviews the issues related to the employees with a view to ensure immediate redressal of grievances. The Company employed 841 permanent employees as on March 31, 2025.

No complaint was filed during the financial year under the Sexual Harassment of women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the Statement as important factors could influence the Companys operations such as Government policies, local, political and economic development, industrial relations, and risks inherent to the Companys growth and such other factors. Market data and product analysis contained herein has been taken from internal Company reports, Industry & Research publications, but their accuracy and completeness are not guaranteed and their reliability cannot be assured.