Vibhor Steel Tubes Ltd

DEAR STAKEHOLDERS,

One of the most notable highlights of the year was our successful Initial Public Offering (IPO). On behalf of the Board of Directors and the entire leadership team at Vibhor, I extend my heartfelt gratitude to all our investors and stakeholders. Your belief in our business, vision, strategies, and execution capabilities has been instrumental in reaching this milestone.

We are pleased to present our inaugural annual performance report for the financial year 2023-24.

This report provides a comprehensive overview of our financial and operational performance, set against the backdrop of the evolving dynamics within our sector. With two decades of experience, we have been supplying steel pipes and tubes to various heavy engineering industries across India. The steel industry is a cornerstone of economic development, providing essential raw materials for sectors such as construction, infrastructure, manufacturing, and transportation.

The Government has adopted several initiatives and policies to boost domestic steel production, including the Make in India initiative and the National Steel Policy (NSP) 2017. The NSP aims to enhance the development of value-added products like alloy steel and electrical steel within the domestic market. This increase in demand for steel tubes and pipes plays a crucial role in the country's growth and development, solidifying their importance in India's infrastructure and manufacturing sectors. Thanks to substantial government investment in infrastructure projects, India has maintained its position as the world's second-largest steel producer. With strong growth prospects in these industries, further supported by our well-established presence and a strong pan-India distribution network, we remain a preferred partner of choice. We benefit from a long-standing relationship with JPL, which began with job work activities and has evolved into full-time production of pipes.

During the year, our EBITDA experienced a growth of 6.52%, reaching C 4,672 lakh, compared to C 4,386 lakh in 2022-23. However, our operating income for the full year totalled C 1,07,271 lakh, representing a decline of 3.63% from C 1,11,312 lakh in 2022-23. Additionally, our PAT decreased by 15.89% in 2023-24, falling to C 1,772 lakh from C 2,107 lakh in 2022-23. The decline is attributed to a decrease in the sale price. While the quantity sold in 2023-24 exceeds that of 2022-23, the overall figures have decreased due to the lower selling prices. In November 2023, we received the allotment letter for land to establish a new facility for Vibhor Steel

Tubes Limited in Odisha. Given Odisha's status as the largest iron market, this new facility will help reduce raw material costs and improve margins in the future. We anticipate that production will commence in Fiscal 2025.

We plan to expand our footprint by successfully exporting products to 10 countries and continue this strategy for further growth. To enhance our competitive edge, we are focusing on attracting, retaining, and training qualified personnel by offering continuous learning opportunities and the latest technical training. In line with our expansion plans, we will further develop technology systems to boost asset productivity and operational efficiencies. Additionally, we aim to strengthen goodwill and brand visibility by leveraging our partnership with Jindal Pipes Limited, striving to achieve parity with industry peers and deepen market penetration.

The collective capabilities of our talented workforce have been instrumental in driving our success thus far, and we remain committed to further investing in their development. Our employee training programmes help cultivate a mindset that aligns with crucial values such as customer-centricity, professionalism, and a strong focus on quality. It acts as a catalyst for both individual and organisational growth, reinforcing our values and fostering a culture of continuous improvement and excellence. Furthermore, we have made continuous efforts to prioritize the safety of our employees across our operating facilities.

We remain confident of our business growth prospects and continue to invest in future growth. Before concluding, I would like to extend my heartfelt gratitude to all stakeholders for your continued support and strong belief in our abilities. It is our constant endeavour to create sustainable value for all of you consistently. I am confident that together, we will attain new heights of success and carve a unique place for the organisation in the steel tubes industry.

Regards,