Dear Stakeholders,
It is my privilege to present the 52nd Annual Report of Kalyani Steels
Limited for the financial year 2024-25. This year stands out not only for the robust
financial and operational performance we achieved, but more importantly, for the
future-focused strategy, and resilience that defined our actions. In an environment marked
by global economic uncertainty and volatility in key user industries, our ability to act
with deliberate planning and discipline, and remain steadfast in our long-term commitments
has been instrumental in delivering sustained value. The collective efforts of our people,
backed by sound governance and enduring customer relationships, have enabled us to
navigate challenges and seize emerging opportunities with confidence.
Strong local performance amid Global Challenges
The world today is more interconnected and volatile than ever.
Geopolitical tensions, evolving trade dynamics, energy prices and monetary policies
continue to define the global economic landscape. In 2024, global GDP witnessed 3.3%
growth as against 3.5% in 2023. Major economies such as US & China showed a growth of
2.8% and 5% respectively. On the other hand, amid such volatile environment, Indian
economy has demonstrated resilience, stability, and a clear sense of direction with a
growth rate of over 6.5% in FY 2025. India stands tall as a global growth engine with
highest GDP growth among large economies in the world and it is increasingly becoming a
vital link in the global manufacturing and supply chain ecosystem.
Global steel production remained flat
In FY 2025, global crude steel production stood at approximately 1,832
million tonnes, maintaining levels similar to the previous year. The European industry
continued to face headwinds from elevated energy prices, tightening environmental
regulations, and muted demand. Reports indicate that an estimated 9-12 million tonnes of
steelmaking capacity in Europe remains idle or has been permanently shut down.
Amidst this landscape, India emerged as a bright spot, producing nearly
151 million tonnes of crude steel - a 7% year-on-year growth. As global economies
increasingly seek resilient, diversified, and stable supply chains, India's ascent as the
world's second-largest steel producer is both timely and strategically significant.
Automotive and Mobility: A Growth Multiplier
India's automotive industry continues to gain strong momentum, driven
by rising consumer confidence, rapid electrification, and urbanization. Passenger vehicle
sales hit a historic all-time high of 5 mn sales in FY 2025 and it is expected to further
grow as India still has very low car penetration of 33 cars per
1,000 people as compared to 183 cars in China & around 594 cars in
US. Commercial Vehicles, two-wheelers & three-wheelers are yet to reach its pre-covid
level but are on growth track. This is fueling greater demand for advanced alloy steels
engineered for light weighting, enhanced safety, and performance. With a future-ready
product portfolio and an agile, customer-centric approach, Kalyani Steels is
well-positioned to support OEMs in shaping the next chapter of mobility.
Rising Stronger: Building the Future with Purpose and Precision
FY 2025 was one of the strongest years in our journey, marked by
outstanding financial performance and operational excellence. We recorded our highest-ever
revenue of ?20,336 million, up from ?20,063 million in FY 2024. Profit Before Tax (PBT)
also reached a record of ?3,427 million, compared to ?3,327 million in the previous year.
This performance is a testament to our team's unwavering focus on
managing price volatility, executing cost optimization and energy efficiency programs, and
reinforcing a 'Quality First' culture across the organization. Our proactive market
intelligence and disciplined execution enabled us to stay ahead of demand fluctuations and
margin pressures, even as global steel players navigated a more volatile and uncertain
environment.
At a time when the industry faced headwinds, Team Kalyani Steels
demonstrated resilience, foresight and agility, helping us deliver consistent value and
strengthen our competitive position.
Looking Ahead: Growth with Purpose
India's industrial renaissance is only just beginning. The world is
increasingly turning to India as a trusted, stable and strategic partner - a nation with a
vast domestic market, a pool of young, skilled talent and a growing reputation as a global
manufacturing hub.
At Kalyani Steels, we stand at the forefront of this transformative
moment - anchored in legacy, propelled by innovation and guided by our unwavering
commitment to value creation for all stakeholders.
To our employees, customers, investors, partners, shareholders and
communities - we extend our deepest gratitude for your continued trust and support. The
road ahead is filled with opportunity and we are well prepared to lead with purpose,
passion and performance.
| Warm regards, |
| Baba N Kalyani Chairman |