Worth Peripherals Ltd Management Discussions

1. Industry Structure and Developments

The corrugated packaging industry is undergoing a phase of structural transformation, characterized by increasing consolidation, capacity expansion, and a gradual shift from a highly fragmented landscape toward a more organized and integrated structure. Large paper manufacturers are entering the corrugation segment to achieve backward and forward integration, intensifying competition and driving efficiency across the value chain. Simultaneously, both existing players and new entrants are investing in capacity augmentation and advanced automated technologies to cater to the growing demand from sectors such as e-commerce, FMCG pharmaceuticals, and food processing. The industry also continues to benefit from a strong shift toward sustainable and recyclable packaging solutions, positioning corrugated products as a preferred alternative to plastic. However, rising raw material costs, particularly craft paper, and volatility in global supply chains have exerted pressure on margins across the sector. Despite these challenges and evolving dynamics, the Worth Peripherals Limited (to be referred to as "the Company" in future text) industry outlook remains positive, supported by steady demand growth and increasing formalization.

With industry experience spanning decades, robust business relationships with existing customers and additions of new customers, the Company is amongst the largest manufacturers of corrugated boxes in the country. Equipped with state-of-the-art machinery from Europe, Taiwan and Japan, the Company is consistently growing year on year.
While successfully onboarding prospective customers, the Company also sees an opportunity to add value to customers packaging needs by using high graphics while printing corrugated boxes, since these arts and graphics act as a medium of advertising and marketing towards end consumers.
Alternatives to corrugated packing would serve as a threat to the company as well as the entire industry. However, keeping in mind the initiatives undertaken globally, corrugated packaging is known to be a biodegradable, recyclable and sustainable packing medium that in turn has the potential to replace non-sustainable packaging options.

The Company has identified "Manufacture and Sale of Corrugated Boxes" as the single operating segment.
The sale of corrugated boxes in the financial year 2025-26 amounted to Rs. 20,710.69 /- lakhs on standalone basis & Rs. 30,247.43 /- lakhs on consolidation basis bifurcated amongst the Corrugated Boxes and Partitions.

With a growth in the economy, the purchasing power of the population is improving. Increased consumption will result in demand for packaging, including corrugated boxes. Additionally, due the initiatives taken by the Indian Government with regards to sustainable and recyclable material usage, corrugated packaging can witness a favourable increase in demand.

One of the major risks in the corrugated industry is fluctuations in the prices of basic raw material, i.e. Kraft Paper, which may have an adverse impact on our operations and financials.

The Company has an adequate internal control system and a defined organizational structure besides, internal rules and regulations for conducting the business. The Management reviews actual performance with reference to budgets periodically. The Company has an Audit Committee, Independent Statutory Auditors and Internal Auditors who submit reports periodically which are reviewed and acted upon.

The Total Income of the Company for the year ended 31st March 2026 on standalone basis is Rs. 21,919.72 /- lakhs (previous year Rs. 20,197.30/- lakhs) and on consolidation basis it is Rs. 30,784.54/- lakhs (previous year Rs. 28,042.88/- lakhs).
Profit: Profit after Tax for the year ended 31st March 2026 on standalone basis amounts to Rs. 1,763.36 lakhs/-(previous year Rs. 1,580.32 lakhs/-) and on consolidation basis it amounts to Rs.1,852.82/- lakhs (previous year 1,734.38/- lakhs)

The Company has in place adequate numbers of employees, as are required, in its registered office as well as in its manufacturing facilities. Professionals with the required experience and knowledge are hired as and when needed by the Company.
The industrial relations of the Company with various suppliers, customers, financial lenders and employees are cordial. There are a total of 146 employees on the payroll of the Company, apart from the contractual labors.

Pursuant to the provision of Regulation 34(3) of SEBI (LODR) Regulation 2015 read with Schedule V Part B (1) details of changes in Key Financial Ratio is given hereunder:

The Statement made in this section describes the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed in the Statements or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement based on any subsequent development, Information or events.