Gensol Engineering Ltd

Dear Shareholders,

I trust you all are healthy, safe, and keeping well. It gives me immense pleasure to present our annual report and highlights of our performance, progress, challenges we have faced and path towards growing sustainably this year at Gensol Engineering. This report also represents a significant turning point in our ongoing efforts to give stakeholders thorough and honest information about the Company.

The world around us is rapidly changing. Economic uncertainty, volatile geopolitical challenges, rising crude oil and commodity prices and a critical call to action for climate change and preserving the planet is only the tip of the iceberg of our dynamic present. As we move towards a future that relies heavily in the advancement of technology and renewable energy to grow and sustain, we at Gensol are striving to energise this change by harnessing capabilities to provide holistic renewable energy solutions to the world. Our goal is to generate long-term value for the shareholders, and we are gradually heading in that direction by implementing several strategic initiatives.

Economic Overview and the EV Growth Story

The pandemic has presented the world with a challenging landscape. Like several other industries, the automotive industry was also deeply affected by the pandemic outbreak and subsequent lockdowns. This also created a significant impact in the EV industry, stalling and deferring projects. That said, India is known as one of the leading EV player globally in terms of sales and given the country's post pandemic economic growth along with conducive policy framework for EV adoption and the Government's ambition to achieve net zero carbon emission by 2070 has led to the EV industry gather momentum.

A Milestone Year at Gensol - Operational and Financial Highlights FY.22

We are delighted at our journey this financial year. The tireless efforts of the team to meet our collective vision of enhancing renewable energy production has augured well for the organisation and fruitful for our clients. These efforts have led to a robust business performance, setting us on a high growth trajectory.

In FY22, the company on consolidated level achieved a total revenue of 1,623 million, up by 151% YoY from 646 million in FY21. EBITDA improved by 158% whereas PAT improved by 248%.

Let me take this opportunity to walk you through our segmental performance. The Solar EPC Business reported 1556.60 million in FY22 grew by 156.22% compared to 607.6 million in FY21. The EV Lease Business reported 47.4 million in FY22 grew by 47.56% compared to 32.1 million in Fy21.

The Company has maintained its leadership position and continues to have a strong order book on the back of a robust demand environment for its products and services. The company's current solar order book as on 1st September 2022 stands at 4030.00 million.

Your company has also received sanctioned of Rs. 2,677 million loan from one the India's leading Financial Institutions to expand the electric car leasing business.

New Developments

Your company entered the electric vehicle ecosystem with the aim of manufacturing an electric car locally. The plant is located at the Chakan Industrial zone in Pune, Maharashtra with a capacity of 14,000 cars per year in the first phase.

The construction of the plant is in full swing and we expect the commercial production to commence from the last quarter of this fiscal. Once operational, this facility is expected to drive revenue growth from FY 2024 which will take the Company into the next orbit.

Looking Ahead

I am strongly inclined to believe Gensol has all the repower and intent to translate all its endeavours into palpable reality. Without an iota of doubt, I am very positive about the trajectory of growth that India's solar industry is destined to embark upon and Gensol's unwavering commitment and link to this growth.

Gratitude

I would like to express my gratitude towards the Board for their constant guidance. Their trust in our business propositions and policies along with their invaluable has helped the Company fiscale new heights. I thank our investors, bankers, customers, channel partners and the wider community for placing their trust and confidence in us. Your unshakeable trust in us is an immutable source of power which keeps us pushing forwards despite all odds. I would like to thank you all for believing in the Gensol growth story and the value system of Quality, Engineering, Safety and Spirit of Partnership. Lastly, a big thank you to each our employees for tirelessly striving to build a valuable organisation that will fiscale new heights in India's renewable energy story.