Latteys Industries Ltd Management Discussions

Forward Looking Statement - In this, Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking 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. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 the Listed Companies are required to furnish Management Discussion and Analysis Report

(MDAR) as a part of Directors Report to the Shareholders.

As per Schedule V of SEBI (Listing Obligations and Disclosures Requirements), Regulations, 2015, Annual Report shall contain the below points in the Management Discussion and Analysis Report (MDAR):

? Industry Structure and developments. ? Opportunities ? Risk and Concern. ? Internal Control System and their adequacy.

? Discussion on Financial performance with respect to operational performance.

? Material developments in Human Resources/ Industrial Relations front, including number of people employed.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The global industrial pumps market size was valued at USD 63.29 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.9% from 2023 to 2030. The rising adoption of these products in various industries, including water and wastewater, chemical, oil and gas, and power generation, is expected to have a positive impact on market growth. The lockdown measures implemented by the governments of various countries, in light of the COVID-19 pandemic in 2020, have adversely affected growth due to the closure of manufacturing industries. Furthermore, the pandemic has resulted in delays in raw material distribution, thereby affecting the production capacity across the globe.

Centrifugal pumps have led the market and accounted for a revenue share of over 67.3% in 2022. These products are widely utilized in several applications, including water supply, fire protection systems, sewage disposal, food and beverage industries, and chemical industries, due to their low maintenance. The growth of the global centrifugal pumps market is being driven by the rapid construction of residential and commercial infrastructure and the expansion of the manufacturing sector. The growth is attributed to the increased infrastructure investment, which has resulted in fast urbanization. The wastewater treatment sectors demand for these products is expected to drive the industry over the coming years. The positive displacement pumps are expected to expand at the fastest CAGR of 5.4% over the forecast period. Positive displacement pumps are expected to witness significant growth over the forecast period, as reciprocating pumps gain popularity due to their higher efficiency than centrifugal pumps and their application in precision dosing and high-pressure output applications.

2. OPPORTUNITIES & THREATS OPPORTUNITIES

Agriculture and Building Services comprise 46% of the market by value of Rs. 3910 Cr. This segment of the Indian pump market is highly fragmented as well as competitive with a large number of small and medium enterprises (SMEs) competing to increase their market share. The biggest markets for agricultural pump sets are the central Indian states of Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

2.1 THREATS

Markets across the Board are seeing aggressive competition. Both domestic and global capacities out last the demand for various products and commodities. Many sectors especially in domestic market are seeing increased competition. Your Company is prudently trying to deal with this. Inward looking policies of Countries would be a threat to global market.

3. INTERNAL CONTROL SYSTEM

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

4. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year ended March 31, 2023, the Companys total Revenue from operations is Rs.

5247.94 Lakhs /- as against Rs.. 4085.18 Lakhs/- in the corresponding previous Financial Year ended March 31, 2022.

The Profit after tax (PAT) for the Financial Year ended March 31, 2023 is 130.84/- Lakhs as against Profit of Rs. 103.48/- Lakhs in the corresponding previous Financial Year ended March 31, 2022.

The financial performance of the company is as follows:

Particulars	FY	2022-23	FY	2021-22
Turnover		5247.94		4085.18
Other Income		117.66		46.55
Total Income		5365.60		4141.86
Finance Cost		121.12		108.36
Depreciation and amortization expenses		105.95		81.48
Profit Before Tax		182.17		140.98
Tax Expenses:		57.00
Current Tax		8.32		42.23
Deferred Tax				3.04
Profit after Tax		130.84		103.48

DETAILS OF KEY FINANCIAL RATIO

	Ratio	Formulla	FY- 2022-23	Ratio	FY- 2021-22	Ratio	% Chang e	Comment if % change is more than 25%
(a)	Current Ratio	= Current Assets Current Liabilities	3541.85 2602.09	1.36	3383.08 2448.96	1.38	-1.47%	NA
	Debt-	= Long Term Debt + Short	1231.06		1222.47
(b)	Equity Ratio	Term Debt Total Shareholder Fund	1684.01	0.73	1553.17	0.79	-7.12%	NA
(c )	Debt Service	= Net Operating Income (i.e. PBT Plus	299.49	2.37	245.28	1.47	61.44%	NA
	Coverage	Depreciation+Interest on	126.11		166.73
	Ratio	Long Term Loans Less
		Rental and Interest
		income_)
		Total Debt Service
		= Net Income (i.e. Net
	Return on							</td>
		Profit After Tax)
(d)	Equity		130.84	7.77%	103.48	6.66%	16.61%	NA
		Shareholder Fund.
	Ratio
		X 100	1684.01		1553.17
(e)	Inventory	= Cost of Goods Sold				1.46	30.99%	Due to
			4201.67		3232.70
	turnover	Average Inventory		1.91				Increase in
			2197.50		2214.75
	ratio							Turnover
								and
								effective
								managemen
								t of
								Inventory
(f)	Trade	= Net Credit Sales	5247.94		4085.18	6.15	-	NA
	Receivables	Average Account	1032.80	5.08	664.00		17.41%
	turnover	Receivables
	ratio
(g)	Trade	= Net Credit Purchase			3283.29	3.53	-	NA
			3728.84
	payables	Average Account		3.05			13.49%
			1221.47		930.48
	turnover	Payables
	ratio
(h)	Net capital	= Total Sales	5247.94		4085.18	4.37	27.69%	Due to
	turnover	Net Working Capital	939.76	5.58	934.11			effective
	ratio							utilisation of
								Working
								Capital
		= Net Profit (i.e. Net Profit	130.84	2.49%	103.48	2.53%	-1.58%	NA
	Net profit	After Tax)
(i)			5247.94		4085.18
	ratio	Sales
		X 100
(i)	Return on	= EBIT	271.07	14.97	242.09	14.14	5.83%	NA
	Capital	Capital Employed.	1810.89	%	1711.58	%
	employed,	X 100
		(i.e. Total Assets-Current
		Liability)
	Return on	= Net Income.
(k)						N.A.
	investment	Cost of Investment

5. Material developments in Human Resources/ Industrial Relations front, including number of people employed

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. The Company aims to develop the potential of every individual associated with the Company as a part of its business goals. The Company focuses on providing individual development and growth in a work culture that ensures high performance and remains empowering. The Company has employed 170 people (including contractual) strong and dedicated workforce travel abreast of the latest trends.

FOR AND ON BEHALF OF THE BOARD	FOR LATTEYS INDUSTRIES LIMITED
PLACE: AHMEDABAD	Sd/-
DATE: 02nd SEPTEMBER 2023	KAPOOR CHAND GARG
	MANAGING DIRECTOR
	DIN: 00434621