Bhagyanagar India Ltd Management Discussions

Bhagyanagar India Ltd (BIL) was incorporated in the year 1985, a flagship Company of Surana Group. BIL is among the oldest and largest companies producing various copper products in India. The Company also has wind mills of 9 MW at Kapatigudda, Karnataka State. BIL believes its industry knowledge, proactive research and specialized technology helps provide customers with improved products. The Company has steadily grown over the years with a continued focus on customer satisfaction, evolving itself into countrys one of the most promising mid cap Companies.

A) I NDUSTRY STRUCTURE AND

DEVELOPMENTS:

Copper: The Company through its subsidiary manufactures copper products such as field coils, paper covered strips, sheets, pipes, tubes, solar fins, bus bars, commutators among others. The Company continues to focus on value added products such as Copper Field Coils (for Auto Electrical), Copper Fins (for Solar Water Heaters) and Busbars for Electrical Engineering with regular supplies to various Original Equipment Manufacturers (OEMs) such as Lucas, TVS Limited, MICO, Commutator, Emvee Solar, Amar Raja Batteries, HBL Nife and many other leading OEMs. The Company keep on adding further value-added products every year in line with the requirement of our OEM customers.

The global demand for copper continues to grow, world refined usage has more than tripled in the last 50 years, thanks to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products.

Wind Power: The Company has wind power project with an installed capacity of 9 MW at Kapatigudda, Karnataka State.

B) OP PORTUNITIES AND THREATS:

T he fundamental growth drivers of the economy as well as Copper industry continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent till recently in the nation and also globally. The Indian demand is expected to be strong on the back of improved outlook for industrial and infrastructure growth. The demand for copper is directly dependent on economic growth and the quality of the growth. The governments thrust on power sector, smart city, housing for all, ambitious plan of harnessing renewable energy resources, electric vehicles, Infrastructure development, Atma Nirbhar Abhiyan and Make in India spells good news for copper industries. Indias copper consumption is expected to increase to about 3 million tonne by 2030, spurred by development in electric vehicles and other environmentally-friendly technology. Rising middle-class income will also boost demand.

Since 2018, India has become a net importer of the metal due to the closure of Sterlite Coppers plant at Thoothukudi, Tamil Nadu, which catered to around 40% of the domestic demand. To boost recycling of copper in India, the Government announced reduction of import duty on copper scrap from 5% to 2.5% in the Union Budget 2021 and also in the Union Budget 2024-25, BCD of 2.5% on Copper scrap is continued. This will promote recycling in the country as the basic raw materials will become economical. Copper industry continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent in the nation and also globally. The threats to the segments in which the company operates are volatility in Exchange rate & Metal Prices.

C) O UTLOOK:

C opper is the third most widely used industrial metal worldwide. It is an essential commodity in industries like electronics, appliances, electrical grids, vehicles, and renewable energy technologies. Hence, the demand for this metal is traditionally considered a leading indicator of global economic health. It is expected that domestic copper demand will remain resilient amid a stable economic growth outlook.

Copperindustrycontinuestoshowstronggrowthdespite the pressures of slowdown and inflationary conditions in the nation and also globally. The Companys strategy for financial year 2024-25 is to have continued focus on addition of new value-added products to gain traction from OEM customers across various sectors such as Automobile, Electrical Switch Gears, Heaters etc.

D) R ISKS AND CONCERNS:

T he Company, like any other enterprise, is exposed to business risk which can be internal risks as well as external risks. The threats to the segments in which the company operates are volatility in Exchange rate & Metal Prices. The company is concerned about the vide fluctuations in copper prices globally and locally and increase in foreign exchange value. Your company is fully insulated against fluctuations in copper prices globally and locally and increase in foreign exchange value.

The major risks identified by the company are systematically addressed through extenuating actions on a continuous basis. The Company has developed and implemented the Risk Management framework. Audit Committee oversight of financials risks and controls. The Board of Directors is also apprised of the risks faced by the Company, and of the adequate and timely risk management measures taken to mitigate them.

E) I NTERNAL CONTROL SYSTEMS AND

THEIR ADEQUACY:

T he Company has adequate Internal Control and Procedures with regard to purchase of Stores, Raw Materials including Components, Plant and Machinery, equipment, sale of goods and other assets. The company has clearly defined roles and responsibilities for all managerial positions and all operating parameters are monitored and controlled. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets.

The Company has an Internal Audit System commensurate with its size and nature of business. M/s Sekhar & Co., a firm of Chartered Accountants, are acting as Internal Auditors of the Company. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors. Compliance with laws and regulations is also ensured and confirmed by the Internal Auditors of the Company. Standard operating procedures and guidelines are issued from time to time to support best practices for internal control.

F) D ISCUSSION ON FINANCIAL

PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

i) F INANCIAL PERFORMANCE (Consolidated):

Capital Structure:

T he Equity Share Capital of the Company C 639.90is lakhs comprising of 3,19,95,000 equity shares of C2/- each fully paid.

Reserves and Surplus:

T he Reserves and Surplus of the Company

31.03.2025 stand at C 20,098.59 lakhs as compared to C 18,696.79 lakhs in the previous year.

Fixed Assets:

Fixed assets of the company stood as 8043.20 as on 31.03.2025 as against C 7724.19 Lakhs in the previous year.

Inventories:

Inventories, as on^st March,31 2025, amounting to 15,732.77 Lakhs as against C 8324.34 lakhs in the previous year.

S undry Debtors:

S undry debtors increased C 14,591.92 lakhs as on 31 to ^st March, 2025 as against C 9783.08 lakhs in the previous year. These debtors are considered good and realizable.

C ash and Bank Balances:

C ash and Bank balances stood C 387.35at lakhs against C 830.63 lakhs in the previous years which include amounts deposited with banks as security.

Current Liabilities:

Current Liabilities for the financial year ended

31.03.2025 is C 21,961.49 lakhs as against C 7,993.82 lakhs in the previous Year.

ii) OP ERATIONAL RESULTS (CONSOLIDATED):

Consolidated Turnover:

During the year 2024-25, the consolidated turnover of the Company was C 162,560.51 lakhs as compared to C 142,931.12 lakhs in the previous year.

The Income from other sources as on 31^st March, 2025 was C 565.41 lakhs as compared to C4549.23 lakhs in the previous year.

Depreciation:

T he Company has provided a sum C 706.30of lakhs towards depreciation for the year as against C 663.27 lakhs in the previous year.

Provision for Tax:

The Company has provided a current tax C 451.25of lakhs as against C 880.73 lakhs in the previous year.

Net Profit:

T he Net Profit of the Company after tax C 1401.81is lakhs as against C 4572.37 lakhs in the previous year.

Earnings Per Share:

T he Earnings Per Share of the Company as on ^st March,31 2025 is C 4.38/- per share for Face Value of C 2/- as against C 14.29/- per share for face value of C 2/- in the previous year. on

G) M ATERIAL DEVELOPMENTS IN

HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING Lacs NUMBER OF PEOPLE EMPLOYED:

T he Company believes that the Companys growth and future success depend largely on the skills of the Companys workforce, including executives and officers, as well as the designers and engineers and the attraction of critical skills. The loss of the services of one or more of these employees could impair the Companys ability to continue to implement its business strategy.

The Companys success also depends, on its continued ability to attract and retain experienced and qualified employees. The Company is committed to building the competencies of its employees and improving their performance through training and development. The Companys focus is on identifying gaps in its employees competencies and preparing employees for changes in competitive environments, as well as to meet organizational challenges.

Some of the focus areas in training in the last year centered on leadership, innovation management and internationalization besides other training programmes to drive a change in the Companys employees outlook as it continues to develop as a global competitor.

H) D ETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS (CONSOLIDATED):

Key Financial Ratios:

Ratios	2025	2024	Change (%)	Note no.
Debtors Turnover (no. of days)	33	25	31.14
Inventory Turnover (no. of days)	35	21	66.18	1
Debt Service Coverage Ratio	2.20	3.56	(38.13)	2
Current Ratio	1.98	3.18	(37.68)	3
Debt Equity Ratio	0.38	0.24	60.46	4
Net Profit Margin (%)	0.86	3.20	(73.04)	5
Return on Net Worth (%)	13.87	31.70	(55.05)	6

1 Inventory turnover ratio has gone up due to increase in inventory during the year..

2. Debt Service Coverage Ratio has decreased due to decline in net profit after tax.

3. Current Ratio has decreased due to relatively higher increase in current borrowings and increase in inventory.

4. Debt Equity ratio has increase because of an increase in long term borrowings during the year.

5. Net Profit Ratio has gone down due to a decrease in profit after tax during the year.

6. Return on capital employed has gone down due to decrease in profit after tax during the year.

I) C AUTIONARY STATEMENT:

S tatements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws and other statutes and incidental factors.

	For and on behalf of the Board of Directors
Place: Secunderabad	DEVENDRA SURANA	N.C. BHARDWAJ
Date: 04.09.2025	MANAGING DIRECTOR	WHOLE-TIME DIRECTOR
	DIN: 00077296	DIN:08761949