Apar Industries Ltd

Dear Stakeholders,

I would like to express my gratitude for your trust in APAR. Our transformative journey has been defined by our strengths in power infrastructure, telecommunication, and mobility, providing innovative solutions for the future. Over the past 65 years, we have measured our success by the success of our customers. This drive pushes us to lead in innovation, developing products and services that are more energy-efficient, environmentally sustainable, and safer. Every major investment and action taken in the company over the last two decades has been inspired by this focused mission.

Leading the Renewable Revolution

The critical issue of greenhouse gas (GHG) emissions surpassing the environment's capacity to absorb them. Coupled with a projected annual energy consumption growth of over 2% for the next 25 years, this has spurred global climate action. This drive is fundamentally reshaping how energy is produced, transmitted, and consumed, with the goal of reducing or eliminating emissions. Today, 85% of new global energy capacity comes from renewable sources like wind and solar, whilst hydrocarbon sources are being phased

out. Achieving emissions-free energy consumption hinges on widespread electricity adoption. This shift is paving the way for electric vehicles (EVs), heat pumps, and other low-emission technologies. This is where APAR comes in.

Enabling the Global Energy Transition

As the energy transition unfolds, APAR is poised to seize numerous growth opportunities, as detailed in our comprehensive annual report. Having evolved into an India-based global company, APAR stands out by offering a wide array of products across the entire value chain. From cables for solar, wind, and nuclear power installations to transmission lines with aluminium alloys and high temperature low sag conductors, copper transpose conductors, transformer oils, optical fibre ground wire, mobility cables, and low-emission lubricants, our diverse product portfolio underscores our pioneering role. These efforts position APAR as a key player driving significant impact in the global energy transition. To know more about our business initiatives and innovations, please read more in the 'Our businesses' section page 55.

Reaching New Heights

I am pleased to share that our organisational positioning and actions to bring — Tomorrow's Solutions, Today — has been instrumental in creating a sustainable growth platform for APAR both in India and Globally. This was validated by our performance during the last

financial year: revenue grew 13% to Rs 16,153 crore, EBITDA (post open period forex) increased 24 % to Rs 1,632 crore, and profit after tax strengthened 29% to Rs 825 crore.

The company's performance during the last financial year was the best in our history. It marked the successive year of revenue and profit growth. It was also the successive year of profitable growth — the financial index by which we measure the strength of our business model.

We attribute this growth momentum to a deliberate, forward-looking strategy that includes a clear vision, precise and timely execution, proactive investments, and a compelling, solution-oriented approach for our customers.

The energy transition is a multidecadal trend that the world and its citizens must embrace, with electricity serving as its central element. We remain optimistic about the future and are confident in our ability to sustain this growth trajectory, delivering enduring value to our customers and stakeholders. Together, we are forging a brighter and more prosperous future.

Elevating Manufacturing Excellence

At the core of APAR's manufacturing excellence is a commitment to operational superiority, aligning people, processes, technologies, and resources to enhance production and quality. CAPEX investments over the last 4 years of Rs 764.10 crores have expanded capabilities across our 10 manufacturing facilities, increasing production capacity and introducing new product lines to meet rising demand and providing customers

Tomorrow's Solutions Today. The company is adopting Industry 4.0 technologies, including IoT and smart factory solutions, to modernise its manufacturing processes. Additionally, it utilizes advanced systems like SCADA and pigging for improved efficiency and waste reduction. This strategic focus on continuous improvement, driven by Six Sigma and Kaizen principles, allows APAR to optimize costs, enhance product features, and consistently exceed customer expectations. Through these initiatives, APAR builds its position as a two billion-dollar conglomerate, leading innovation and sustainability in its core industries.

Driving Forces of Success

This journey has culminated from the contributions of many.

At APAR, our journey has always been centered around our employees. We cherish the APAR Parivar, fostering a familial environment where every individual is not just involved but deeply invested in our company's growth and success. This past year, our culture was affirmed with the prestigious Great Place to Work award. From powering India's infrastructure with Vande Bharat trains to connecting the INS Vikrant aircraft carrier, our APAR Parivar stands as the silent force behind ground-breaking innovations. It is with great pride that I acknowledge our distinguished Shareholders, committed Partners, loyal Customers, and trusted Investors as they continue to support APAR's ascent.

Our culture at APAR Industries is more than a foundation—it's our driving force, turning visions into reality. It shapes our mindset, actions, and achievements,

uniting us in positive purpose.

At the core of our culture lies the belief in a sustainable energy future and our ability to lead that change with unwavering confidence and capability, allowing us to meet our ESG and CSR goals, as explored in our ESG section page 24.

I believe that APAR is positioned to grow over the next decade and benefit from this tremendous opportunity of the global energy transition and deliver responsible returns to our stakeholders. I am powered by your tireless support and steadfast championing as we embark on this trailblazing expedition to collaboratively shape the future of energy.

Driven by the company's commitment to pushing the boundaries of innovation and sustainability, we are forging a greener, more sustainable tomorrow.

Chief Financial Officer's (CFO) Performance Overview

A financial perspective on our business. How we maintained growth momentum in FY 24 and created new growth opportunities.

Dear Investors,

Looking at the big picture during FY 24, the company balanced the need to sustain business momentum with new opportunities for growth. We believe this scenario presented cash flow and capital allocation priorities. The company is pleased to report a revenue growth of 13%, EBITDA (post open period forex) growth of

24%, and PAT growth of 29%. While the company has a history of profitable growth, the profit increases in the last two years have been particularly significant, indicating leadership strength.

Sectorial overview

The company's sustained outperformance during the financial year resulted from

a global shift from fossil fuels to renewable energy. Western interest in diversifying its supply chain away from China, the rise in fuel costs due to the Russia- Ukraine war, and the movement towards long-term electrification have further driven this change. Urbanization continues to increase electrical connections, and developed countries are overhauling their power transmission systems. There is a strong belief that increased prosperity drives electricity consumption, indicating a potential rise in electricity usage in the coming years.

Business-strengthening

strategy

The company is attractively placed to capitalise on an emerging world on account of it being number one, two or three across each of its leading business segments.

Premiumisation

This comprised a shift from conventional conductors to high efficiency conductors.

The combination of premium products in the Indian market and conventional products in the overseas market helped achieving heathy margins.

Globalisation

The company has exported to over 140 countries with exports reaching 45.2% of the topline in FY 24. The company leveraged synergy across divisions for common customers. It received approvals from global utilities, EPC contractors and OEMs.

Revenues

The company generated record revenues from each of its business segments. The conductor's business grew 15%, speciality oils grew 4%, cables grew 18%, during FY 24.

Exports

The company is positioned as an international supplier of products located out of India & UAE. The company services the growing demand of customers — individual and institutional - across 140 countries. Nearly 45% of the company's revenue was derived from international dispatches, reflecting its strong global presence and competitiveness.

Profit drivers

The conductors' business was the principal profit driver during the year under review, driven largely due to shift towards premiumisation.

Profitable growth

During the last year, the company scaled its business profitably, validating its resilience. The company reported 13% revenue growth during the year under review and a 29% per cent increase in PAT.