Viaz Tyres Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS REPORT

1. INTRODUCTION:

Viaz Tyres Limited, headquartered in Ahmedabad, Gujarat, is a rapidly growing name in the automotive component sector. Since its inception in 2018, the company has established itself as a market leader in butyl rubber tubes, supplying to over 19 Indian states and expanding globally over 10 countries. The companys robust infrastructure and commitment to quality have earned it a strong and trusted reputation across the automotive aftermarket. With its successful listing on the NSE in 2023, Viaz Tyres is now poised to reach new milestones—driven by innovation, customer satisfaction, and a vision for sustainable global growth. The Corporate Identification Number of our Company is L25199GJ2018P LC103740.

Building on over two decades of expertise in the tube industry, Viaz Tyres has established itself as a leading supplier of all types of butyl rubber tubes. Now, with the same commitment to quality, innovation, and customer satisfaction, our experienced team is strategically entering the tyre segment—marking the next leap in our growth journey.

With an installed production capacity of over 7,00,000 Tube per Month, Viaz is expanding into tyre manufacturing with a focus on performance and reliability. As the global automotive landscape evolves and demand for tyres surges across domestic and international markets, the global tyre industry is projected to exceed $160 billion by

2028 which offers a substantial growth opportunity.

Viaz is well-positioned to capitalize on this momentum, aiming to deliver the same excellence in tyres as we have in tubes, and capture a significant share in this dynamic market.

2. INDUSTRY STRUCTURE:

Global Economy Outlook:

The global economy is experiencing moderate growth amid ongoing trade tensions and geopolitical uncertainties. The IMF projects global growth to stabilise at 3.3% in CY 2025 and CY2026, with inflation easing to 4.2% and 3.5% respectively, citing trade barriers and policy uncertainties as key challenges. Increased tariffs and disrupted supply chains have fuelled inflation and dampened investment, particularly affecting emerging markets facing policy risks and potential disinflation.

In FY 2025-26, the US economy is expected to witness a slowdown, with real GDP growth forecasted to decelerate to 2.1%. This moderation is largely attributed to the imposition of tariffs, which are anticipated to disrupt trade and elevate prices for both consumers and businesses. Although there has been some easing, inflation remains a concern, as tariffs could further exacerbate price increases.

The EU economy is presently facing a mixed outlook, with a slight improvement projected for CY2025 amidst global uncertainties and internal challenges. GDP growth is anticipated to rise from 0.8% in CY 2024 to 1.3% in CY 2025. According to the OECD, the EU is set for a modest recovery, with growth reaching 1.5% by CY 2026. While inflation has eased across many member states, persistent inflation in services continues to pose a challenge, potentially slowing the overall disinflation process.

Indian Economy Outlook:

Despite substantial global challenges, the Indian economy continued to be the fastest- growing major economy in FY 2024-25. The resilience of domestic economic activity is attributed to positive consumer sentiment and strong investment demand. Indias economy is well-positioned to withstand global challenges arising from the tariff war, owing to its robust macroeconomic framework, moderating inflation and strong domestic growth engines. Despite concerns about weakening global growth due to escalating trade tensions and financial market volatility, Indias domestic growth drivers are resilient and less vulnerable to external pressures. The recent repo rate reductions by Reserve Bank of India (RBI) are expected to boost lending and investment.

Indian Automobile Industry:

The Indian Automobile Industry showed strong growth in FY 2024-25, with a 7.3% increase in domestic sales and a 19.2% rise in exports, fuelled by global demand and supportive government policies.

Passenger Vehicles reached record sales of 4.3 million units, with Utility Vehicles leading the growth. The Two-Wheeler segment saw 19.6 million units sold, driven by rural demand and a rise in electric vehicle sales, which now make up over 6%. Three-Wheelers hit record sales and Commercial Vehicles showed recovery in Q4. With stable macroeconomic conditions and government support for electric vehicles, the industrys outlook for FY 2025-26 remains positive, focusing on sustainable mobility and global competitiveness.

Global Tyre Industry:

In FY 2024-25, the global tyre industry saw strong growth. China leads with nearly 50% market share, but India is emerging as the third-largest market, driven by domestic demand and export growth. The global market is expected to grow from $200.97 billion in CY 2024 to $211.22 billion in CY2025.

Indian Tyre Industry:

The Indian tyre industry is set for strong growth in FY26, driven by robust demand in the replacement market and a recovering OE segment. Passenger vehicle tyre demand is expected to grow by 6-8%, following a 5-7% increase this year, with key players expanding capacity. Challenges include volatile raw material costs and import reliance, while the market remains competitive. On a positive note, tyre exports are rising, strengthening Indias global market presence.

3. STRENGTH, OPPORTUNITIES AND THREATS:

Global Footprint:

- Evolving mobility partner with growing global presence

Scalable Infrastructure

- Robust manufacturing capabilities for expansion

Reputation for Excellence

- Known for quality and reliability in the market

Well-Oiled Supply Chain

- Fast & approachable distributor network in India and overseas

Viaz Tyres Limited has built a solid and expansive foundation in the Indian automotive components market, particularly through its dominance in the butyl rubber tube segment. The company has successfully established a wide-reaching domestic distribution network across more than 19 states in India, enabling it to serve a vast and diverse customer base that includes wholesalers, retailers, OEMs, and independent dealers.

Viaz is strategically positioned to tap into this expanding market. Backed by its presence in over 19 Indian states, Viaz has a readymade distribution and sales infrastructure that gives it a competitive edge in introducing its tyre products. Viazs domestic strength lies in its ability to blend scale, speed, and service—making it a brand of choice for the Indian mobility sector.

4. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Viaz has demonstrated promising capabilities in tyre trading on global level by leveraging its domestic expertise to explore international markets. With a solid foundation in the Indian market, the company is well-positioned to cater to the growing global demand for quality and cost- effective tyre solutions.

Leading trades with over 10 countries, viaz has now expanded Its footprints in Uganda through a strategic tie-up with an OEM for tyre and tube manufacturing and trading making it one Step closer to be one of the top tier player in the global industry.

Key Products

Butyl Inner Tubes

- Our flagship product with superior air retention properties and durability for various vehicle types.

Radial & Bias Tyres

- High-performance tire options designed for different road conditions and vehicle requirements.

Engine & Grease Oils

- Complementary automotive products to enhance our comprehensive vehicle solutions portfolio.

5. INVESTMENT & DEVELOPMENTS:

- State-of-the-art Manufacturing Facility spanning over 1.5 lakh square feet, positioning the company as one of Indias leading manufacturers in the tyre tube industry.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

		(Amount in lakhs)
Particulars	FY 24-25	FY 23-24
Revenue from Operations	5,725.88	5,036.82
Other Income	52.28	32.80
Total Income	5,778.16	5,069.62
Direct & other related expenses	4,479.28	4,066.86
Employee Benefit Expenses	175.53	156.06
Financial Cost	147.05	113.50
Depreciation and amortisation expenses	186.36	120.17
Other Expenses	343.69	306.34
Total Expenses	5,331.91	4,762.94
Profit/(Loss) before Exceptional items & Tax	446.25	306.68
Less: Exceptional items	0.00	0.00
Profit/(Loss) before Tax	446.25	306.68
Less: Total Tax Expenses	112.45	69.40
Profit/ (Loss) after tax	333.81	237.28
Other Comprehensive income for the financial year	0.00	0.00
Total Comprehensive income/(loss) for the financial year	333.81	237.28
Earnings per Equity Share (Rs.) - Face value of 10/- each	2.72	1.94

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature, and operations of the Company.

At Viaz, we integrate the strength of skilled manpower with the efficiency of automation to deliver world-class tyre and tube solutions. This hybrid manufacturing model ensures uncompromised product quality while allowing us the flexibility to meet custom client specifications—across both domestic and export markets.

Every product is subjected to rigorous quality control at multiple checkpoints, ensuring reliability from start to finish. Our fully automated bottling and packaging lines are designed for consistency, safety, and zero contamination, upholding the highest standards of hygiene and precision—critical to maintaining brand trust and integrity in the competitive automotive tyre industry.

With Viaz, its not just manufacturing — its a commitment to excellence.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Description	As at March 31, 2025	As at March 31, 2024	Variance	Remark
Current Ratio	2.27	2.52	-10%	The Variance is Below +/- 25%
Debt Service Coverage ratio	5.24	4.39	19%	The Variance is Below +/- 25%
Debt-Equity Ratio	1.27	1.10	15%	The Variance is Below +/- 25%
Return on Equity Ratio	9	7	29%	Increase in ROE is due to higher net profits and efficient use of shareholder equity.
Inventory Turnover Ratio	3.43	3.46	-1%	The Variance is Below +/- 25%
Trade Receivables Turnover Ratio	2.27	2.56	-11%	The Variance is Below +/- 25%
Trade Payable Turnover Ratio	17.79	17.81	-0.14%	The Variance is Below +/- 25%
Net Profit Ratio	6	5	24%	The Variance is Below +/- 25%
Return on Capital employed	11	9	19%	The Variance is Below +/- 25%

10. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

For and on behalf of the Board
Viaz Tyres Limited
Sd/-	Sd/-
Janakkumar Mahendrabhai Patel	Rajeshkumar Prabhudas Patel
Managing Director	Whole-Time Director
DIN:03329692	DIN:07883688
Place: Ahmedabad
Date: September 5, 2025