ITL Industries Ltd

Dear Members,

Global Economy: Resilience in Motion

The global economy exhibited remarkable resilience and divergence during 2023, defying fears of stag ation and recession. Increased government spending, notable labour force participation, and continued household consumption growth supported global economic growth last year. Despite substantial interest rate hikes by central banks, economic activities worldwide grew steadily. Major central banks, led by the US Federal Reserve, have likely reached their peak rate hikes. Expectations are for rate cut initiations during the latter part of 2024.

The US economy was a standout in 2023, with GDP growth exceeding long-run averages at 4.9% in Q3 and 3.4% in Q4, driven by robust services growth and a resurgence in manufacturing activity. Simultaneously, as the Fed raised rates and supply constraints eased, in ation declined to 1.7% in Q4, undershooting the 2% target. This 'miracle' of strong growth and low in ation de ed the recessionary predictions of most economists.

In contrast, Europe slowed to just 0.4% GDP growth in 2023, weighed down by reduced household spending from elevated energy costs tied to the Russia Ukraine conflict and tighter monetary policy. Prospects for 2024 remain subdued at 0.8% growth, constrained by strained scal positions limiting any growth impetus.

China experienced a 5.2% growth rate in 2023 and is projected to expand by 5% in 2024 and 4.5% in 2025, bolstered by policy support measures. However property crisis remains a major drag on growth.

Global economic prospects have improved as major economies have averted a severe downturn, reducing in ation without raising unemployment. However, the outlook remains cautiously optimistic. Persistent challenges include prolonged high interest rates, debt sustainability issues, ongoing geopolitical tensions, and escalating climate risks, all of which continue to impede growth.

Yet, for India, the picture is promising amidst a globally uncertain macroeconomic environment. India's economy has shown resilience, with real GDP growth of 8.2% in 2023-24, making it the fastest-growing major economy and the fth-largest globally. Structural reforms and domestic household demand are key drivers of India's growth.

In ation has eased, supported by monetary policy actions and supply-side interventions. India is expected to grow at 7.2% per cent in FY25. The banking sector has seen improvements in earnings, governance, and balance sheets, contributing to credit growth in the private sector. Prudent policies and regulatory measures aim to safeguard financial stability in India.

The Indian Rupee has managed relative stability supported by improved external balances, including a moderation in the current account de cit and robust forex reserves. Increased services exports have been supportive of the external balance.. We believe collective actions and focused measures by the government have helped overcome past challenges and will realise India's growth potential in the future.

To summarise, the Indian economy has demonstrated resilience, supported by reforms, low core in ation, and a sound financial sector. Continued focus on reforms will see India emerge as a key global growth engine.

The year ended March 2024 was a good year for your Company. The Company during the year recorded a turnover of Rs.157.78 Crores in 2023-24 as against Rs. 143.89 Crores in 2022-23 with a net profit after tax at Rs. 9.16 Crores as against Rs. 7.64 Crores. We remain con dent that your company will also perform well during the current year too.

ITL is pioneer and leader in designing and manufacturing of NC Carbide Circular Sawing Machines since 2008 exporting to various developed and under developed countries with great success. Looking to the market demand, ITL has upgraded all its Models under 2nd generation group with enhanced features and cutting capacity to compete in the Global market.

With the improvement in performance of Saw Blades for large diameter bar cutting, per cut cost has reduced substantially as such there is increase in demand for the large diameter bar cutting machines. ITL is developing large diameter bar cutting circular sawing machines and hope to introduce in the market by 2025.

New Models of Bandsaw Machines are under development for the Brazil Market where ITL participated. These machines will add to the Bandsaw Business from 2025 onward.

We remain committed to improve the Shareholders value towards this end, we are continuously looking for the opportunities and are upgrading the infrastructure be tting to the same.

The support of our Shareholders, Business Associates, Valued Customers, Banks and Financial Institutions has always been a source of strength to us and we thank all of them wholeheartedly for remaining the integral part of our growth story. I also wish to thank all the employees for their devoted efforts in bringing up the company to the present level.