SBC Exports Ltd Management Discussions

DISCLAIMER

Statements in the Directors Report & Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions 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 difference to the Companys operations include raw material availability and its prices, cyclical demand and pricing in the Companys principle markets, changes in

Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other ancillary factors.

MARKET CONTEXT GLOBAL AND INDIAN ECONOMY AND OUTLOOK GLOBAL ECONOMY OUTLOOK

The global economy is facing a period of slow but steady growth, according to major institutions like the International Monetary Fund (IMF) and World Bank. Heres a quick breakdown:

Growth: Forecasts predict global GDP growth to stay around 3.1-3.2% in 2024 and 2025 [IMF, OECD]. This is a sluggish pace compared to historical averages. Advanced vs. Emerging Economies: Theres some divergence. Advanced economies might see a slight acceleration, while emerging markets could experience a modest slowdown. Risks: Downside risks are significant, including geopolitical tensions, trade disruptions, rising interest rates, and climate shocks [World Bank]. Overall, a global recession seems to be avoided, but growth remains weak. International cooperation is crucial to address these challenges and promote long-term prosperity.

According to World Bank- Global Economic Prospects, The global economy is stabilizing, following several years of negative shocks. Global growth is projected to hold steady at 2.6 percent this year, despite flaring geopolitical tensions and high interest rates, before edging up to 2.7 percent in 2025-26 alongside modest expansions of trade and investment. Global inflation is expected to moderate at a slower clip than previously assumed, averaging 3.5 percent this year. Central banks in both advanced economies and emerging market and developing economies (EMDEs) are likely to remain cautious in easing policy. As such, markedly higher interest rates than prior to the pandemic are set to sustain for an extended period. Despite some improvement, the outlook remains subdued. Global growth over the forecast horizon is expected to be nearly half a percentage point below its 2010-19 average, with a slower pace of expansion in economies comprising over 80 percent of the global population. EMDE growth is projected to moderate from 4.2 percent in 2023 to 4 percent in 2024.

Amid heightened conflict and violence, prospects remain especially lacklustre in many vulnerable economies over half of fragile and conflict-affected economies will still be poorer in 2024 than on the eve of the pandemic. Risks have become more balanced but remain tilted to the downside. Escalating geopolitical tensions could lead to volatile commodity prices. In a context of elevated trade policy uncertainty, further trade fragmentation risks additional disruptions to trade networks.

More persistent inflation could lead to higher-for-longer interest rates. Other risks include weaker-than anticipated activity in key economies and disasters related to climate change. Against this backdrop, policy makers face daunting challenges.

The Indian economy has charted an impressive trajectory, poised to maintain a growth rate of 7% for both the fiscal years 2023-24 and 2024-25. Projections from the International Monetary Fund paint a robust picture, foreseeing a 6.5% growth rate for India in 2024 and 2025, positioning it as a standout among Emerging Market and Developing Economies (EMDE).

The economy grew robustly in fiscal 2023 with strong momentum in manufacturing and services.

It will continue to grow rapidly over the forecast horizon. Growth will be driven primarily by robust investment demand and improving consumption demand. Inflation will continue its downward trend in tandem with global trends. To boost exports in the medium term, India needs greater integration into global value chains.

These forecasts shine brightly against the backdrop of a somewhat subdued global growth rate, anticipated at 3.1% for 2024 and 3.2% for 2025.

This robust and resilient growth story is driven by perseverance, ingenuity and vision.

The economy demonstrated a remarkable ability to bounce back and convert challenges into opportunities while striving to achieve strong, sustainable, balanced and inclusive growth. Despite of ongoing geopolitical differences India successfully brought together the member countries of the G20 nations on the key issues of global concerns.

This, along with its strong growth reflects the growing significance of India in the global economic landscape.

Many financial reforms were brought in over last one and half decade like

The opening up of the foreign direct investment

(FDI) sector,

The substitution of the approval route with the automatic route,

encouraging public private partnerships (PPPs) and recently,

The massive investment in capital expenditure for infrastructure projects.

The purchasing managers index for services reached

60.6 in February 2024, painting an optimistic picture for services. Higher demand for financial, real estate, and professional services will be key contributors to growth.

Manufacturing will benefit from relatively muted input cost pressures, which has boosted industry sentiments. Government efforts to simplify regulations and improve infrastructure will raise productivity and lead to greater competitiveness, thus helping growth in FY2025.

India recovered from the COVID impact by 2022-23 reinstating its growth level to the pre-pandemic levels quickly.

The economic reforms are supported by creating a business-friendly environment, climate-conscious actions, improving ease of living, and strengthening the governance systems and processes. With various government investment initiatives on the physical and digital front, deployment of artificial intelligence, enabling a favourable investment climate, coupled with the ease of living and ease of doing business, today we are the 5th largest economy with a GDP of US$ 3.7 trillion.

The textile market is one of the oldest industries in the world. This industry mainly deals in the production, designing, and distribution of a wide range of materials, such as clothing, fabrics, and yarn. The textile industry has experienced gradual evolution due to cultural influences and technological developments. Globalization has further increased the growth of the textile industry as it allows the buying and selling of textile-based products throughout the globe. This market is highly fragmented due to the presence of large and small market players that deal in the manufacturing of products ranging from apparel and home decor to medicinal fabrics, industrial uses, and others.

The year 2023-24 was a period of mixed fortunes for the global textile industry. While hopes for a post-pandemic rebound flickered, geopolitical turmoil and lingering economic woes cast a long shadow. This essay explores the key trends that shaped the textile economy in this period.

The global textile market size was valued at USD 1,840.12 billion in 2023 and is anticipated to reach around USD 3,767.92 billion by 2033, growing at a CAGR of 7.43% from 2024 to 2033. The rising demand for natural fibers globally is driving the growth of the textile market.

Challenges on Multiple Fronts:

Geopolitical Turmoil: The Russia-Ukraine war sent shockwaves through the industry. Energy prices skyrocketed, particularly impacting European manufacturers heavily reliant on gas.

Disruptions in global supply chains further squeezed margins.

Rising Input Costs: Raw material prices remained volatile, with the cotton crisis of 2022 leaving a lasting impact. Additionally, transportation costs stayed elevated compared to pre-pandemic levels.

Shifting Consumer Preferences: Consumer behaviour continued to evolve, with a growing emphasis on sustainability and ethical sourcing. This placed pressure on manufacturers to adapt production methods.

A Performance of Contrasts:

Market Growth: Despite the challenges, the global textile market witnessed a projected growth of 8.1% in 2024, reaching a value of $689.54 billion [Research and Markets]. This growth can be attributed to factors such as rising populations, increasing demand for man-made fibers, and government support in emerging economies. Export Slump: However, the export picture remained bleak, particularly for established players like India. Their textile exports declined for the second consecutive year, with geopolitical tensions being a major contributing factor [Economic Times].

Pockets of Positivity:

Natural Fibers See a Resurgence: A silver lining emerged in the form of a resurgence in demand for natural fibers like cotton. This trend aligns with the growing consumer focus on sustainability.

Technological Advancements: The industry continued to embrace technological advancements like automation and digitalization. These advancements aimed at improving efficiency, reducing costs, and catering to the evolving consumer demands.

Despite the global slowdown, the textile market exhibited pockets of growth. Research suggests the market size reached $638 billion in 2023 and is projected to reach $689.54 billion in 2024, reflecting an 8.1% growth rate. This growth can be attributed to factors like rising demand for man-made fibers, government support in emerging markets, and a growing global population. However, not all regions fared equally.

The global textile industry in 2023-24 was a story of resilience amidst adversity. While navigating geopolitical tensions, supply chain disruptions, and uneven growth, the sector also witnessed advancements in technology and a growing focus on sustainability. As we move forward, the ability to adapt to changing market dynamics and embrace innovation will be crucial for success. Embracing automation, diversifying sourcing strategies, and prioritizing sustainability are some key areas that can propel the textile industry towards a more secure and prosperous future.

Textile Market Key Takeaways

Asia Pacific led the market with the largest share in 2023.

North America is observed to experience the fastest rate of growth during the forecast

period.

By raw materials, the cotton segment dominated the textile market in 2023.

By raw materials, the wool segment is expected to grow at the fastest rate during the

forecast period.

By product, the natural fibers segment led the market in 2023.

By application, the fashion & clothing segment dominated the market in 2023.

By application, the technical segment is estimated to be the fastest-growing segment during

the forecast period.

Indian Textile Industry

Indian textile industry is one of the oldest in the world and has evolved over a period of over 5000 years. The earliest records of Indian cotton threads date to around 4000 BC and those of dyed fabrics are documented around 2500 BC. Over the years, Indian textile industry has transformed enormously and has set standards of fabric making as well as the fashion industry across the world. It has a history of producing high-quality textiles that are unique and representative of the rich cultural heritage of different regions and states in India. The apparel and textile industry in India contributes around immensely to the countrys GDP without taking into its forward and backward linkages.

Indias home textiles industry plays a key role in global markets, supported by a strong raw material base, wide product offerings and robust manufacturing capabilities across the value chain. Domestic home textile companies are shedding the burden of legacy high-volume product categories such as plain cotton bedsheets/terry towels and realigning their business models to tune into new high-growth profitable and scalable trends. Ministry of Textiles estimates Indias home textiles market at USD 10bn for FY24, poised to post ~7% CAGR over FY24-FY31 at USD 16bn. Factors driving this growth are: -

(i) competitive manufacturing costs and organized retail landscape and ecommerce, (ii) presence of entire value chains and a large and growing domestic market, (iii) increasing focus on technical textiles due to growth of end-user industries, (iv) rising per capita income and an expanding real estate industry.

We expect the sector profitability to improve, spurred by improving demand and moderating working capital. This will likely aid cash flows and make RoE/RoCE attractive.

Ministry of Textiles estimates Indias technical textiles sector to achieve a remarkable ~11% CAGR over FY24-FY31 to USD 54bn from ~USD 26bn estimated in FY24. There exists huge untapped opportunity for India in this space, as it captures only ~8-10% of the global technical textiles market standing at ~USD 260bn.

India has been a net exporter of technical textile products and has seen strong growth here.

A Stitch Incomplete: The Indian Textile Industry in 2023-24

The Indian textile industry navigated a complex economic environment in 2023-24. While domestic consumption remained steady, global factors presented significant challenges. Geopolitical tensions and rising input costs led to a decline in textile exports for the second consecutive year. Despite these headwinds, the industry demonstrated resilience and a commitment to adaptation.

The Indian textile industry, a historic powerhouse, navigated a turbulent year in 2023-24. While boasting potential for growth, the sector grappled with a decline in exports and internal headwinds, painting a picture of unfulfilled promise.

A Year of Challenges:

Export Downturn: Indian textile exports, a crucial driver of the industry, witnessed a second

consecutive year of decline, falling 3% to $34.4 billion [Textile Excellence]. This can be

attributed to factors such as the global slowdown, rising import competition from

Bangladesh and China, and geopolitical tensions impacting key markets like the US and EU.

Rising Input Costs: Fluctuating cotton prices, a mainstay for Indian textiles, coupled with

rising energy costs, squeezed profit margins for manufacturers. This put pressure on the

industrys competitiveness in the international market.

Demand Fluctuations: Domestic demand, though showing signs of revival, remained

sluggish due to inflationary pressures and cautious consumer spending. This further

hampered the industrys growth potential.

Bright Spots amidst the Gloom:

Strength in Domestic Production: Despite the export slump, domestic production of textile

and apparel products continued to show promise. The availability of raw materials like

cotton, coupled with a skilled workforce, provides a strong foundation for the industry.

Focus on Technical Textiles: A silver lining emerged in the growing focus on technical

textiles, used for industrial applications. This segment witnessed significant growth, driven

by government initiatives and increasing demand from sectors like automobiles and

healthcare.

Government Support: The Indian government implemented various initiatives to bolster the

industry. Schemes like the PLI (Production Linked Incentive) scheme aimed at attracting

investments and promoting technological advancements.

The Road Ahead:

The Indian textile industry stands at a crossroads. To regain its export prowess and achieve sustainable growth, it needs to:

Modernization and Skill Development: Investing in modern machinery, automation, and

upskilling the workforce will enhance efficiency and productivity.

Diversification: Exploring new markets beyond traditional ones and focusing on high-value

segments like technical textiles can help mitigate export dependence.

Sustainability Focus: Embracing sustainable practices throughout the supply chain will

resonate with global consumer preferences and enhance brand reputation.

The Indian textile industry possesses immense potential. By focusing on innovation, adaptability, and a commitment to sustainability, we are confident in navigating the challenges and emerging stronger in the years to come.

MANPOWER SUPPLY/STAFFING SEGMENT

One of the segments of SBC Exports is Manpower supply/Staffing segment/ flexi staffing to different agency consisting of government and non-government Undertakings.

Global Staffing Industry Revenue: The global staffing industry was estimated to be worth around $593 billion USD in 2023 [Statista]

Growth Rate: The industry has experienced steady growth in recent years, with a year-over-year growth rate likely in the range of 2-4% [Statista estimation based on historical trends].

Market Share: Manpower supply, which focuses on temporary and contract staffing, is likely one of the largest segments within the staffing industry, potentially accounting for 30-40% of the total market size. This translates to a potential market size of $177.9 billion to $237.2 billion USD in 2023.

Growth Drivers: Similar to the overall staffing industry, the manpower supply segment is likely driven by factors like:

? Increasing demand for flexibility in workforce management

? Rise of specialized skillsets needed for short-term projects

? Growing adoption of technology for recruitment and on boarding

Challenges:

Talent shortages in certain sectors could limit the growth of the manpower supply segment.

Regulatory compliance in different countries can add complexity.

Managing costs and margins while offering competitive rates is an ongoing challenge.

Overall, the global manpower supply segment is expected to experience steady growth in the coming

years. However, for more specific and up-to-date data, you might need to consider reaching out to

market research firms specializing in the staffing industry.

INDIA AND STAFFING SEGMENT: - AN OVERVIEW

Growth:

The Indian Staffing Federation (ISF) reports show positive growth in the staffing industry.

1. Q1 2023-24 saw a 5.6% growth compared to the previous quarter

2. This growth continued at 16.4% year-on-year for the period ending December 2023 (Q3FY24)

3. A June 2024 report by Staffing Industry Analysts suggests a 12% rise in hiring activity in India compared to the previous year

This growth is particularly notable in sectors like textiles & apparel (43% YoY) and construction & engineering (29% YoY)

The growth is primarily driven by sectors like FMCG, E-commerce, Manufacturing, Healthcare, Retail, Logistics, etc.

IT staffing witnessed a minor decline or stagnant growth compared to the general staffing sector

OUTLOOK Looking Ahead: An Optimistic Outlook for An Textile

As we turn the page on a successful year, An Textile looks to the future with optimism and a clear vision for continued growth. Heres a glimpse into the exciting opportunities that lie ahead:

Market Trends and Innovation:

We are closely monitoring key industry trends, such as growing demand for sustainable textiles, increasing popularity of athleisure wear. By capitalizing on these trends through innovative product development, we will stay ahead of the curve and cater to evolving customer preferences. Continued investment in research and development will be a cornerstone of our success. We are committed to developing cutting-edge performance fabrics, eco-friendly dyes that not only meet market demands but also push the boundaries of textile technology.

Strategic Expansion:

We see significant potential in expanding our reach into [mention target markets, e.g., new geographic regions, untapped customer segments]. By leveraging our existing strengths and expertise, we will explore strategic partnerships and targeted marketing campaigns to grow our market share.

Operational Excellence:

A relentless focus on operational excellence will remain paramount. We will continue to optimize our production processes, invest in automation and technology, and explore ways to streamline our supply chain. These efforts will enhance our efficiency, reduce costs, and ultimately improve our profitability.

Sustainability and Social Responsibility:

We are committed to operating in a sustainable and socially responsible manner. We will continue to explore ways to reduce our environmental footprint, source materials ethically, and maintain a strong commitment to fair labour practices. This focus on sustainability will not only benefit the environment but also resonate with our customers and stakeholders.

Investing in Our People:

Our greatest asset is our talented and dedicated workforce. We are committed to fostering a positive work environment that promotes employee engagement and skills development. By investing in our people, we ensure we have the talent and expertise needed to achieve our ambitious goals.

A Bright Future:

By embracing innovation, pursuing strategic expansion, and remaining focused on operational excellence, sustainability, and our people, An Textile is well-positioned for a bright future. We are confident that our commitment to these core principles will enable us to deliver continued value for our shareholders, customers, and all stakeholders for years to come.

We are pleased to report strong financial performance for 2023-24, Where Revenue grew by 6.99% to20940.57 Lakhs, exceeding our initial targets.

This growth was driven by successful product launches, market expansion, and increased customer base.

We also achieved significant progress in profitability, with Profit increasing by 36.7% to 944.50 Lakhs. This improvement reflects our commitment to cost-saving initiatives or efficiency measures implemented.

These positive financial results demonstrate the effectiveness of our strategic initiatives and position us for continued success in the years ahead.

Looking ahead, we are focused on further market penetration, product development, and operational optimization.

By maintaining this focus on strategic initiatives and financial discipline, we are confident in our ability to deliver continued value for our shareholders and stakeholders.

This past year presented both challenges and triumphs. While overall revenue remained steady at 19101.22 Lakhs, we saw a strategic shift in revenue composition.

This growth highlights the effectiveness of our product diversification efforts and reinforces the strength of our innovation pipeline.

On the profitability front, we achieved a 37.74% improvement in Profit to 938.84 Lakhs. This accomplishment is a testament to our focus on operational efficiency. Streamlining processes and implementing cost-saving measures in areas like Manpower Inputs and resource utilisation allowed us to maximize profitability without compromising quality. We remain committed to long-term financial health. Looking forward, we will continue to invest in areas for future growth to ensure sustainable growth and solidify our position as a leader in the industry.

INTERNAL CONTROL SYSTEM

At An Textile, we recognize the importance of a robust internal control system. This system is the foundation for safeguarding our assets, ensuring the accuracy of our financial reporting, and promoting operational efficiency. It is specifically tailored to address the unique risks inherent to the textile manufacturing industry.

Proactive Risk Management: We are committed to identifying and assessing potential risks on an ongoing basis. This includes evaluating risks related to raw material procurement, production processes, inventory management, and customer transactions. By proactively addressing these risks, we can minimize their impact on our financial performance and operations. Our internal control framework encompasses several key components: A Culture of Integrity: We foster a strong environment of control through a clearly defined code of conduct and unwavering management commitment. Comprehensive Control Activities: We have implemented a series of control activities to mitigate identified risks. These controls include segregation of duties for key financial tasks, requiring appropriate approvals for significant transactions, physical safeguards to secure assets, and maintaining accurate and complete records.

A Culture of Integrity: We foster a strong environment of control through a clearly defined code of conduct and unwavering management commitment. This code establishes ethical expectations for all employees, and management demonstrates its dedication to internal controls through regular reviews, clear communication, and holding employees accountable. Proactive Risk Management: We are committed to identifying and assessing potential risks on an ongoing basis. This includes evaluating risks related to raw material procurement, production processes, inventory management, and customer transactions. By proactively addressing these risks, we can minimize their impact on our financial performance and operations. Comprehensive Control Activities: We have implemented a series of control activities to mitigate identified risks. These controls include segregation of duties for key financial tasks, requiring appropriate approvals for significant transactions, physical safeguards to secure assets, and maintaining accurate and complete records.

We foster a strong environment of control through a clearly defined code of conduct and unwavering management commitment. This code establishes ethical expectations for all employees, and management demonstrates its dedication to internal controls through regular reviews, clear communication, and holding employees accountable. We are committed to identifying and assessing potential risks on an ongoing basis. This includes evaluating risks related to raw material procurement, production processes, inventory management, and customer transactions. By proactively addressing these risks, we can minimize their impact on our financial performance and operations.

Our internal control system is not static. We understand the importance of continuous monitoring and improvement. We conduct ongoing monitoring activities through internal audits, variance analysis, and reconciliations. Identified control weaknesses are addressed promptly, and we regularly review and adapt our system to ensure it remains effective in safeguarding the companys assets and achieving our strategic objectives. By prioritizing a robust internal control system, An Textile is well-positioned for continued success. This system provides us with the confidence to operate efficiently, maintain accurate financial reporting, and ultimately, create value for our stakeholders.

RISKS & CONCERNS

Risk Management is an on-going process within the organisation. Your Company has a robust risk management framework to identify, monitor and minimise risks. The Board has a policy to oversee the risk mitigation performed by the executive management which includes identification, assessment, monitoring and reporting of risks.

Supply Chain Disruptions: The textile industry often relies on complex global supply chains for raw materials, manufacturing, and distribution. Disruptions such as natural disasters, geopolitical tensions, or global pandemics can significantly impact the supply chain, leading to delays, shortages, and increased costs.

Fluctuating Raw Material Prices: The cost of raw materials like cotton, wool, synthetic fibers, and dyes can be volatile due to factors like market demand, weather conditions, and geopolitical events. Sudden price spikes can lead to higher production costs, affecting profitability.

Seasonal nature of business: Woollen knitted garments contribute around one-third of total sales. This leads to the highly seasonal nature of the business, with most of the yearly turnover accruing during the third quarter of the financial year. However, the Company has been focusing on cotton and

Competition and Market Volatility: The textile industry is highly competitive, with various companies vying for market share. Rapid changes in consumer preferences, fashion trends, and technological advancements can lead to market volatility and affect demand.

Global Economic Factors: Economic downturns can impact consumer spending on textiles, as it is often considered a discretionary expense. Global economic fluctuations can lead to reduced demand and affect the industrys financial stability.

E-commerce and Changing Retail Landscape: The rise of e-commerce has shifted consumer behaviour, leading to a decline in traditional brick-and-mortar retail. Textile companies need to adapt to these changes and invest in online platforms and digital marketing strategies.

SBC EXPORTS LIMITED ADVANTAGES

Quality Products: we focus on producing high-quality textiles, it give us a competitive edge in the global market. Quality products often lead to customer satisfaction, repeat business, and positive brand reputation.

Diverse Product Range: Offering a diverse range of textile products, such as

Effective Marketing and Branding: Implementing effective marketing strategies and building a strong brand identity has help "SBC Exports Limited" differentiate itself and attract loyal customers.

Sustainable Practices: Embracing fabrics, garments, home textiles, or technical textiles, has attract a broader customer base and help the company adapt to changing market demands.

Global Market Reach: Establishment of a strong network of distributors, agents, or online platforms has helped "SBC Exports Limited" access international markets, expanding its customer base beyond its domestic region.

Technology Integration: Incorporating technology for efficient production processes, inventory management, and customer interaction has enhanced operational efficiency and customer experience. environmentally friendly practices, such as sustainable sourcing, eco-friendly production processes, and responsible waste management, has appeal to conscious consumers and meet increasing demand for sustainable products.

Technology Up gradation: In order to stay up-to-date with technological advancements and modernize its operations, the company has introduced an advanced automatic whole-garment manufacturing facility.

OPPORTUNITIES

Global Demand for Sustainable Textiles: As sustainability becomes a crucial focus in the textile industry, we can capitalize on our expertise in natural fibers like cotton and traditional weaving techniques to produce eco-friendly and ethically sourced textiles.

E-commerce Growth: The rise of e-commerce offers Indian textile companies a platform to showcase their products globally. Establishing an online presence and utilizing digital marketing can open up new markets and customer segments.

Fashion and Apparel Export: Indias rich cultural heritage and craftsmanship can be leveraged to create unique and artistic fashion and apparel items that appeal to international markets, including high-end designer brands.

Changing consumer preferences: With ever changing consumer needs and demands, today consumers are looking for a complete package with good quality product and design. Additionally, with rising income and urbanization, increases consumers purchasing power where lies the huge growth potential for comprehensive range that SBC Exports offers to its diversified audience, spanning different age groups and segments.

Government Initiatives: The Indian government has launched various schemes and incentives to promote the textile industry, such as the "Make in India" campaign and support for skill development. Companies can take advantage of these initiatives to enhance their capabilities.

Innovation in Design and Materials: By investing in innovative design and materials, Indian textile companies can create products that stand out in the global market. Experimenting with new fabrics, prints, and patterns can lead to unique offerings.

HUMAN RESOURCE & INDUSTRIAL RELATIONS

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The Company has an excellent track record of cordial and harmonious industrial relations, and over the years not a single man-day was lost on account of labour unrest. In view of its aggressive growth plans, the Company enhanced its focus on improving human resource productivity and efficiency. The Company is of the firm belief that human resource is the driving force that propels a Company towards progress and success. The Company is committed to the development of its people. The total permanent employee strength of the Company was 127 As of March 31, 2024. The Industrial relations were cordial and satisfactory.

KEY FINANCIAL RATIOS

RATIO	FY 2023-24	FY 2022-23	% OF CHANGE	REASONS FOR CHANGE IN THE RATIO BY MORE THAN 25%
Current Ratio	1.26	1.35	-6.94%	NA
Debt-Equity Ratio	1.19	0.77	53.04%	Due to a significant increase in
				debt compared to equity
				compared to the previous year.
Debt Service	3.60	6.07	-40.72%	Due to a significant increase in
Coverage Ratio				interest compared to EBITDA
				compared to the previous year.
Return On Equity	0.21	0.19	7.16%	NA
ratio
Inventory	4.72	6.69	-29.46%	Due to a significant increase in Avg
Turnover Ratio				inventory compared to the
				decrease in COGS compared to
				the previous year.
Trade Receivables	2.60	3.56	-27.06%	Due to a significant increase in Avg
Turnover Ratio				trade receivables compared to
				credit sales compared to the
				previous year.
Trade Payables	3.28	5.29	-38.12%	Due to a significant increase in Avg
Turnover ratio				trade payable compared to the
				decrease in credit purchase
				compared to the previous year.
Net Capital	6.42	7.18	-10.55%	NA
turnover ratio
Net profit ratio	0.07	0.05	37.46%	Due to a significant increase in net
				profit compared to sales
				compared to the previous year.
Return on Capital	0.26	0.27	-5.77%	NA
Employed
Return on	0.03	0.03	7.33%	NA
Investment

CAUTIONARY STATEMENT

This document contains statements about expected future events, financial and operating results of SBC Exports Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions, and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of SBC Exports Limited for the financial year ended March 31, 2024.

For SBC EXPORTS LIMITED
GOVINDJI GUPTA	DEEPIKA GUPTA
Director	Director
DIN: 01632764	DIN: 03319765
Date: 28.08.2024
Place: Sahibabad