Uravi T and Wedge Lamps Ltd Management Discussions

Cautionary Statement:

Members and Investors are cautioned that the discussion in this section of the Annual Report may contain statements that involve risks and uncertainties. Forward-looking statements mentioned may involve risks and uncertainties that could cause results to differ materially from those projected. Consequently, actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no obligations, assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors.

ABOUT THE COMPANY:

Uravi Defence and Technology Limited (formerly known as Uravi T And Wedge Lamps Limited) ("the Company") is an IATF 16949:2016 certified organization and its products are ARAI and E4 compliant. The company specializes in the manufacturing and distributing stop/tail/indicator lamps and wedge lamps for two and three wheelers, passenger vehicles, light commercial vehicles, heavy commercial vehicles, and tractors.

Currently, the Company is one of the largest manufacturers of wedge-base and signaling bulbs in India. The Company has step by step increased the product portfolio and simultaneously increased its capacity to cater to the Indian OEM market.

The Company is committed to creating and returning value to the shareholders. Accordingly, the Company is dedicated to achieving high levels of operating performance, cost competitiveness, enhancing the productive asset and resource base and striving for excellence in all areas of operations. The Company firmly believes that its success in the marketplace and good reputation are among the primary determinants of shareholder value. Its close relationship with customers and a deep understanding of their challenges and expectations drive the development of new products and services. With many decades of expertise and know-how, the Company offers its customers solutions that enhance their projects and builds trust. Anticipating customer requirements early and being able to address them effectively requires a strong commercial backbone. The Company continues to develop this strength by institutionalizing sound commercial processes and building world-class commercial capabilities across its marketing and sales teams. The Company uses different innovative approach in the development of its products and services, as as execution of growth opportunities. The Company is also committed to creating value for all its stakeholders by ensuring that its corporate actions positively impact all the dimensions viz., economic, social and environment.

A. INDUSTRY STRUCTURE AND DEVELOPMENT:

Global Economic Overview:

The global economic landscape is currently shaped by several key factors:

1. Recovery and Growth: The global economy is on a path of gradual recovery and growth, with world GDP expected to expand by around 3% in 2025. Among emerging markets, India remains the fastest-growing major economy supported by strong domestic consumption and investments. Overall, the recovery is underpinned by easing inflation, resilient labor markets, and improving trade flows, though risks remain from high borrowing costs, geopolitical tensions, and structural challenges in some regions.

2. Inflation and Interest Rates: Global inflation is gradually moderating but remains above central bank targets in several economies, driven mainly by sticky services and wage pressures. Advanced economies like the US and Euro Area are witnessing a steady decline in headline inflation, though core inflation is easing more slowly. In response, major central banks are maintaining a "higher-for-longer" interest rate stance. Emerging markets face a mixed scenario some benefiting from stable commodity prices and currency strength, while others remain vulnerable to capital outflows and exchange rate pressures. Overall, monetary policy is expected to remain tight in the near term, balancing inflation control with support for growth.

3. Geopolitical and Economic Uncertainty: Persistent geopolitical tensions, including ongoing conflicts, trade disputes, and shifting global alliances, continue to pose significant risks to the world economy. These uncertainties are likely to influence capital flows, investment decisions, and long-term growth prospects across both developed and emerging economies.

4. Technological Advancements: Rapid progress in digital transformation, artificial intelligence, automation, and green technologies is reshaping global economic dynamics. These innovations are driving productivity, enabling new business models, and fostering efficiency across industries. At the same time, uneven adoption of advanced technologies between developed and emerging economies, along with regulatory and ethical concerns, poses challenges that could influence competitiveness, labor markets, and long-term growth trajectories.

5. Supply Chain Challenges: Global supply chains continue to face disruptions from geopolitical conflicts, rising costs, and evolving trade policies. Businesses are increasingly focusing on diversification, near-shoring, and technological integration to enhance resilience and reduce dependence on single markets. While such strategies strengthen long-term stability, they also involve higher transition costs and may reshape global trade patterns in the coming years. Overall, the global economic environment is characterized by a mix of recovery, inflationary pressures, technological change, and geopolitical risks, influencing industry development and strategic planning across sectors.

India Economic Overview:

Indias economic growth remains robust, supported by strong domestic demand, government-led infrastructure investment, and sectoral momentum. The automotive sector, particularly two and three wheelers, continues to expand, driven by rising rural consumption, urban mobility needs, and the growing adoption of electric vehicles under the FAME and PLI schemes. The defence industry is witnessing accelerated growth, backed by higher budget allocations, "Atmanirbhar Bharat" initiatives, and increased focus on indigenisation of equipment and technology. At the intersection of these, the auto-defence segment including specialised vehicles, components, and mobility solutions for defence applications is emerging as a strategic growth area, supported by domestic manufacturing capabilities and public-private partnerships. Together, these sectors highlight Indias trajectory towards self-reliance, technological advancement, and sustainable industrial growth.

1. Economic Growth: Indias auto sector is witnessing steady growth, led by rising demand for two and three wheelers, strong rural consumption, and increasing urban mobility needs. The electric vehicle segment is expanding rapidly under government support through FAME-II and PLI schemes, while the Vehicle Scrappage Policy and infrastructure push are further boosting demand. With India emerging as a global hub for small vehicles and auto components, the sector is expected to remain a key driver of manufacturing growth and exports.

2. Inflation and Monetary Policy: Inflation has moderated but remains sensitive to food and fuel prices; monetary policy stays calibrated to balance growth and price stability.

3. Government Initiatives: The Indian government is supporting the auto sector through key initiatives such as FAME-II to accelerate EV adoption, the PLI scheme to boost domestic manufacturing of advanced vehicles and components, and the Vehicle

Scrappage Policy to encourage cleaner mobility. Infrastructure development under Gati Shakti and tax incentives like lower GST on EVs further strengthen sectoral growth and sustainability.

4. Technological and Digital Transformation: The Indian auto sector is rapidly embracing electric mobility, connected vehicles, and digital innovations such as telematics, AI-driven design, and smart manufacturing. Growth in EV charging infrastructure and adoption of Industry 4.0 practices are accelerating the sectors technological shift.

5. Sectoral Developments: Two and Three wheeler segments continue to drive volumes, with EV penetration increasing steadily. Passenger and commercial vehicle demand is supported by urbanisation, rising incomes, and logistics expansion. Policies like FAME-II, PLI, and the Vehicle Scrappage Policy are catalysing sustainable growth and localisation.

6. Investment Climate: India is emerging as a global hub for auto manufacturing, attracting both domestic and foreign investments. Supportive government initiatives, a large consumer base, cost competitiveness, and expanding export opportunities are strengthening investor confidence in the sector.

Indias overall economic outlook remains positive, supported by robust domestic consumption, structural reforms, and a strong push towards technological advancement. While challenges such as inflationary pressures, supply chain constraints, and sector-specific issues persist, normalcy in domestic markets has largely been restored, and consumer spending continues to show healthy growth strengthening the prospects for sustained long-term development.

The growth in nominal GDP growth in year 2024 is estimated to be 10-11% as compared to 8.2% in 2023.

B. OUTLOOK, OPPORTUNITIES & THREATS

The Indian auto components industry is poised for robust growth in FY 2024 25, with a positive outlook highlighted by the Automotive Component Manufacturers Association of India (ACMA). Operating in this high-growth sector, the Company specializes in manufacturing Wedge Lamps and Stop & Tail Lamps, which are supplied to Tier 1 vendors for value addition and further distribution to leading automobile manufacturers.

Leveraging its specialized expertise, the Company continues to capitalize on emerging opportunities. Government initiatives to boost domestic manufacturing have created a favorable business environment, while the Company is actively exploring diversification into Electric Vehicles (EVs), the aftermarket, exports, and the defence sector. Policy support for EV adoption has been particularly beneficial, enabling the Company to align with the sectors ongoing transformation.

India, as one of the fastest-growing major economies, is expected to maintain strong momentum in FY 2024 25, backed by structural reforms, fiscal policies, and investment-driven growth. However, certain risks could influence business performance:

(A) Economic Slowdown Any moderation in Indias growth due to global headwinds may temporarily impact demand. Nonetheless, the economy has shown resilience, with real GDP growth sustaining above 7% in FY 2023 24, and similar growth projected for FY

2024 25.

(B) Currency Fluctuations With operations spanning both domestic and overseas markets, fluctuations in exchange rates continue to pose a risk to cash flows and profitability, making it a critical factor for smooth operations.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Consumer behavior in the lighting sector is undergoing a significant shift, with increasing engagement and preference for solutions that enhance overall wellbeing. Modern lighting is now associated with stress reduction, eye comfort for children and the elderly, improved sleep quality, aesthetics, better visual experience, and greater convenience. On the B2B side, lighting is recognized as a value enabler through optimized office spaces, improved maintenance, enhanced productivity, reduced ownership costs, and the adoption of smart solutions such as smart poles and streetlights. While the long-term outlook for the industry remains strong, short-term challenges such as price erosion, the prevalence of low-quality products, and slower adoption of new technologies particularly in the B2B segment are contributing to subdued growth.

Segment wise bifurcation of Companys revenue in the year 2024-25 is as follows:

	Revenue Breakup in FY 24-25
Particulars	% Sale	Growth (%)
OEM	96.09%	(1.09%)
AFM	2.78%	0.45%
Export	1.13%	0.65%

Since, major source of income for company through OEMS, we have further mentioned Increase in Sales of Particular Products in segment as compared to last year:

	Increase in dispatches compared to FY23-
Particulars	24(%)
Wedge Base	3.08%
S&T	(5.40%)
Wedge Base Holders	88.42%
Silicon Caps	(67.48%)
Total	0.98%

RISKS AND CONCERNS :

Provided below are cautionary statements of what your company believes to be the most important risk factors applicable to the company.

The Companys results are affected by competitive conditions and customer preferences.

Foreign currency exchange rates and fluctuations in those rates may affect the Companys ability to realize projected growth rates in its sales and earnings.

The Companys growth objectives are largely dependent on the timing and market acceptance of its new product offerings, including its ability to continually renew its pipeline of new products and to bring those products to market.

Internal strife and disturbances are unpredictable and can affect the functioning of the business of the Company.

D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has deployed all relevant technology solutions to manage and monitor internal processes. Further, we have well-established and adequate systems for internal control to provide reasonable assurance that all assets are safeguarded. Also, as a measure of checks and balances, all transactions are authorized and reported diligently.

The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies.

Such stringent and detailed controls ensure the effective and productive use of resources to the degree that the Companys assets and interests are safeguarded, transactions are approved, registered, and properly reported and checks and balances guarantee reliability and consistency of accounting data.

The status of implementation of the recommendations received by Auditors (external & internal) is reviewed by the Audit Committee on a regular basis and concerns, if any, are reported to the Board of Directors.

E. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

We have got thorough leadership in our focused domains. The Companys revenue from operations was INR41,34,54,197/- during the year 2024-25 as compared to INR

41,98,91,280/- during the previous financial year 2023-24. The growth in financial performance can be largely attributed to the Companys operational efficiency. However, during the year under review, the Operational Performance of the Company has largely been due to an increase in efficiency.

The particulars of the financial performance of the Company as compared to the previous financial year are as below:

Particulars	Year ended	Year ended	% Change
	31.03.2025	31.03.2024
Revenue	41,34,53,197	41,98,91,280	(1.55)
EBITDA	6,50,03,041	7,10,68,320	(9.33)
PBT	2,56,14,652	2,48,89,707	2.83
PAT	1,78,57,815	2,13,31,290	(19.45)

F. DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED

TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

There has been no significant change in the key financial ratios of the Company.

Particulars	Year ended 31.03.2025	Year ended 31.03.2024
Debtor Turnover	3.13	3.39
Inventory Turnover	0.97	1.16
Interest Coverage Ratio	3.13	3.05
Current Ratio	1.65	1.48
Debt Equity Ratio	0.55	0.95
Operating Profit Margin
	9.42	16.92
(%)
Net Profit Margin (%)	4.32	5.08

There was a significant change of more than 25% in the Debt Equity ratio and Operating Profit Margin due to Increase in share warrants and share capital.

G. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE

IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREO

The Return on Net Worth stands at 3.86% for the Financial Year 2024-25 as compared to 8.72% in the Financial Year 2023-24. This indicates a marginal growth in the return on net worth thereto.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INCLUDING NUMBER OF PEOPLE

EMPLOYED:

Your Company continued to have healthy employee relations in all of its establishments throughout the year.

Need-based training and programs were organized for employees that include functional/ technical skills as also soft skills.

Number of permanent employees: 90