Synergy Green Industries Ltd

Dear Share Holders,

I am pleased to update you that during the financial year 2023-24, your company has recorded a net sale of Rs.328.13 Crores as against Rs.290.42 Crores in the previous year and achieved a growth of 12.98%. During the year Vestas revenue grown by 4% and combined revenues of GE & Senvion by 148%. However, wind business remains flat for the year because of 55% drop in Siemens Gamesa revenue due to slowdown in their execution. This year's growth is contributed by Gear Box & Non wind segments.

During the year, absolute PBDIT stands at Rs 41.10 Crores as against Rs 26.76 Crores in last year and achieved a decent growth of 53.58%. Profit after tax has gone up from Rs 0.87 Crores to Rs 11.56 Crores. PBDIT margins have increased from 9.22% to 12.53%. Significant improvement in profitability is supported by stable raw material prices and increase in revenues.

I am pleased to update you that, on 8^th June 2023 new 15 MT melting furnace is commissioned and this will help us in increasing the liquid metal capacity, optimize power consumption for large castings and facilitate in developing 5 MW parts as well. As part of our carbon neutral goal and optimize the power costs, we have commissioned pilot 2 MW solar project in March 2024.

Industry Overview & Future Prospects:

a. During the year 2023 global wind installations have gone up by 50% from 78 GW to 117 GW. With various policy initiatives from government and institutions, India's installations have also gone up by 62.5% from 2 GW to 3.25 GW and highest during last 6 years.

b. Wind industry is likely to perform extremely well in upcoming years with COP28 adaptation to triple the renewables by 2030 and GWEC forecasts 9.4% CAGR growth for next 5 years. Domestic industry is projected to do even better with continued policy support and country's goal to attain carbon neutral by 2070. India's is likely to cross 10 GW annual production in couple years.

c. Considering improvement in demand forecasts, it is being planned to complete the brownfield expansion from 30,000 TPA to 45,000 TPA. It is being initiated to establish 10,000 MT of In-House machining facility to meet increased production capacity. As part of our carbon neutral goal, renewable capacity is being enhanced from 2 MW to 10 MW. All these initiatives will enable us to achieve revenue growth and margin expansion for the upcoming years.

d. Considering the present order book and forecasts, around 20% revenue growth is projected for the year FY 2024-25 and export revenue share is estimated to grow from 11.5% to 25%. Assuming reasonably stable raw material and revenue growth, PBDIT margins are estimated to expand by 150 to 200 bps from the present levels of 12.5%

I am highly thankful to our Board for their valuable guidance and our management team & all employees for their continued effort towards the vision and bringing excellent growth to organisation. I take this opportunity to thank our bankers, Bank of Baroda, IndusInd Bank and Saraswat Cooperative Bank for their continued support in achieving our goals. I also acknowledge the support extended by Central & State governments and express our sincere thanks to them. I would like to express our appreciation to our suppliers and customers for their continued support. I would also like to thank our esteem shareholders for their support.