OVERVIEW
The objective of this report is to convey the Managements perspective on the external environment and steel industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the financial year 2024-25. This report should be read in conjunction with the Companys financial statements, the schedules, notes thereto and other information included elsewhere in the Annual Report.
INDUSTRY STRUCTURE AND DEVELOPMENTS
(Source: World Steel Association: 2025 world steel in figures)
Global Steel Scenario
The steel sector has historically been a cornerstone of industrial progress, forming the foundation of economic development. However, the past year presented significant challenges for the industry, as global manufacturing activity remained subdued due to low household and business confidence, leading to cautious spending and investment. High input costs, geopolitical uncertainty, and tighter financing conditions have delayed capital investments. The lingering effects of inflation have further eroded purchasing power and consumer sentiment. Additionally, weak housing construction in major markets such as China, the United States, Europe, and Japan has adversely impacted steel demand. The automotive sector, a major consumer of steel, also experienced slowdown in 2024. However, investment in manufacturing facilities and public infrastructure provided some support to global steel demand. Sustained capital expenditure in these areas by major economies played a key role in offsetting weaker demand from traditional sectors.
Indian Steel Scenario
India is one of the fastest-growing major economy. It demonstrated a growth rate of 6.5% in FY 2024-25. Despite global headwinds, Indias growth is expected to remain rangebound, 6% - 6.5%, in the next couple of years. The economy is expected to be driven by strong domestic consumption, government capital expenditure, and robust expansion in the services and manufacturing sectors. Inflation is projected to moderate and be rangebound, 4.0 4.5% in the near term, supported by favorable food price trends. Core inflation across goods and services has remained stable, while fuel prices have declined. The moderation in inflation has enabled the Reserve Bank of India to adopt a more accommodative stance, with interest rate cuts anticipated to stimulate consumer spending and credit growth. Foreign Portfolio Investment volatility is expected to subside, while softening crude oil prices will likely support exchange rate stability.
Overall, Indias economic outlook remains strong, driven by robust domestic demand, policy support, and sectoral resilience. Improving trade relations with the developed economies will provide the requisite impetus to the economy. The India UK trade agreement is a positive development in this direction. By leveraging its domestic strengths and implementing strategic reforms, India is well-positioned to navigate global challenges and maintain its trajectory as a leading global economic powerhouse.
OPPORTUNITIES AND THREATS Opportunities
(Source: Ministry of Steel: Make in India)
Envisaged growth in domestic steel production on account of the factors mentioned below would lead to higher demand for iron ore and steel in the country: The Government envisages bringing Indias GDP to US$ 5 trillion by FY25 and achieve upper- middle income status on the back of digitization, globalization, favorable demographics, and reforms that will create demand for steel in the domestic market. Infrastructure stimulus of the government to drive the growth and growth potential of the construction, automotive, consumer durables sectors etc. will drive the demand for the iron and steel sector. Supply gap created for Steel & Iron ore in the international market due to steel production curb in China, sanctions on Russia and damage to Ukraine in the war
Threats
Susceptibility to cyclicality associated with the steel industry and availability of key raw materials - The inherent cyclicality in the steel industry exposes steelmakers to a high degree of volatility in operating margin and, in turn, to debt protection metrics. Demand for steel is sensitive to trends in key end-use industries, such as automobiles, infrastructure, construction and consumer durables. Steel business would continue to be affected by developments impacting the demand-supply scenario & price fluctuations of steels in both the global and domestic markets. Rising inflation can impact consumption and lead to fiscal tightening increasing the cost of borrowings affecting investments. Intensification of geopolitical tension in Europe can disrupt the whole market dynamics.
OUTLOOK STEEL SECTOR
Global steel demand is projected to grow by 1.2% in 2025, reaching ~1,770 million tonnes. After three consecutive years of decline, steel demand is expected to recover globally (excluding China) in 2025. A stable global economic outlook, coupled with improving financing conditions and real income growth in major economies, is expected to support recovery in private consumption and investments before the tariff impositions. Additionally, a significant recovery in residential construction is also anticipated from 2025 onward, supported by easing financing conditions. However, the tariffs imposed by US administration and reciprocal tariffs by countries has led to increased uncertainty in demand-supply balance and continues to be a major risk to the steel industry.
RISKS AND CONCERNS
The business environment in which the Company operates faces a variety of risks which may affect its operations, financial results. Many of risks are driven by the factors which are beyond the control of the Company. Broadly, the risks are classified as under: Macroeconomic Risk; Operational Risk; Market Related Risk; Regulatory Risk; and Environmental Risks Hence, adequate risk management system has been put in place by the management to ensure the success of the Company.
SEGMENT WISE OR PRODUCT WISE PERFORMANCE
The Company operates only in one segment i.e. Trading Segment. During the period under review the Company was under Corporate Insolvency Resolution Process and was inoperative thoughi=out the year.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Financial Controls framework, commensurate with the size, scale, and complexity of the Companys operations. The Board of Directors of the Company is responsible for ensuring that IFC have been laid down by the Company and that such controls are adequate and operating effectively. The internal control framework has been designed to provide assurance with respect to recording and providing reliable financial and operational information, complying with applicable laws, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. The Company maintains an adequate and fair system of internal control based on well-established policies and procedures designed for transparent operations. The management is regular in reviewing, on periodic basis, issues and concerns that have or could have an effect on the operations, functioning or performance of the Company.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED
Human resources are considered as one of the key assets of an organization as human resources are unique to a particular organization and plays an active role in its growth. The total number of permanent employees on roll as on 31 March 2025 was two.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Financial Performance
Revenue from operations for the financial year 2024-25 was 1.01 lakhs as compared to 205.45 lakhs in the previous year. Earnings before interest, tax, depreciation and amortization (EBITDA) for the year was (168.09) lakhs as compared to (10.51) lakhs in the previous year. Profit after Tax (PAT) for the year was (184.51) lakhs as compared to (95.63) lakhs in the previous year.
Operational Performance of the Company
During the year under review, the company had no operations.
Health, Safety, Security and Environment
Health, safety, security and environment have always been an integral part of our value system. Our operations are driven by the value system so established and hence are in compliance with the norms of health, safety, security and environment.
Changes in Key Financial Ratios
During the year under review, the change in the key financial ratios as compared to previous year do not exceed 25% (Twenty Five Percent)
Cautionary Statement
This Management Discussion and Analysis Report, giving a brief profile of the Company along with its vision, mission, objectives, performance and future prospects and also reflecting the scenario of the industry at domestic and global level, may consist of forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those stated. Important factors that could make a difference to the Companys operations include external economic conditions affecting demand/supply or influencing price conditions in the market in which the Company operates, changes in regulatory regime and other incidental factors.
For Viksit Engineering Limited
Sd/- Kushal Chaturvedi Chairman and Director DIN: 11045524
Date: 17 October 2025 Place: Mumbai
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