Confidence Petroleum India Ltd

Dear Shareholders,

As we gather for the 30th Annual General Meeting of Confidence Petroleum India Limited (CPIL), it is with immense pride that I present the achievements of our company for the fiscal year 2023-24. This year stands as a significant milestone in our journey, marked by robust financial and operational performance, reflecting our unwavering commitment to creating substantial value for our shareholders.

Global Economy and LPG Industry Overview

The global economy in the fiscal year 2023-24 has been characterised by a complex mix of challenges and opportunities. While inflationary pressures and geopolitical tensions have posed significant headwinds, the resilience of industries worldwide, including the energy sector, has been commendable. The LPG industry, in particular, has seen a surge in demand driven by the global push towards cleaner energy solutions. As countries accelerate their transition to sustainable energy sources, LPG continues to play a critical role in the energy mix, offering a cleaner alternative to traditional fossil fuels.

In India, the government's focus on increasing the share of natural gas in the energy mix, coupled with initiatives to promote the use of LPG in rural and urban households, has provided a strong impetus for growth in our sector. This favorable policy environment, along with our strategic initiatives, has enabled CPIL to deliver its best-ever performance this year.

Performance Highlights

In the fiscal year 2023-24, CPIL has achieved record market sales across all our business segments. Our consolidated revenue reached ^ 2,698.47 crore, marking a significant 22% (excluding other income) increase over the previous fiscal year. This growth is a testament to our strategic initiatives and operational excellence. Our Profit After Tax (PAT) stood at ^ 105.27 crore, reflecting a 25% increase from the previous year, underscoring our strong profitability in a dynamic market environment.

Our EBITDA for the year was ^ 376.67 crore, increased by 66% supported by effective cost management and process optimization, further demonstrating our capability to deliver solid financial results. Earnings per share (EPS) improved to ^ 3.50, showcasing our enhanced earnings capacity and commitment to shareholder value. In recognition of these achievements, the Board of Directors has recommended a final dividend of 10% for the year, aligning with our ongoing dedication to delivering consistent returns to our valued shareholders.

Performance Review

This year has been remarkable in many aspects. In the LPG segment, we maintained a strong performance, driven by customer-focused initiatives and a resilient supply chain network. Our total sales in volume surged by 43.71%, highlighting our ability to effectively capture market opportunities. We recorded our highest- ever sales volumes across key segments, like Auto LPG Dispensing Stations (ALDS), Packed Cylinder Division (PCD) and Bulk Sales. Our CNG retail segment in partnership with GAIL Gas India for Bengaluru city also witnessed significant growth.

We have significantly expanded our infrastructure and market presence, increasing our Auto LPG Dispensing Stations (ALDS) from 248 to 274* and our CNG stations in Bangalore from 32 to 40*. Additionally, we grew our bottling plants from 66 to 68, further solidifying our position across India. In a pioneering move within the LPG segment, we commissioned 480 new LPG distributorships, bringing the total to 2300+ as of today. Our "Gin Kar Lo, Gin Kar Do" initiative for the Packed LPG Division, a first-of- its-kind in the industry, received an excellent response, significantly increasing our sales volume in this segment.

Strategic Investments and Partnerships

This year, we successfully raised ^250 crore through a preferential allotment to BW VLGC Pte Ltd. This strategic investment will bolster the expansion of our Auto LPG, Packed Cylinder, and CNG retail segments, aligning with our broader vision to lead the Indian LPG market.

Our partnership with BW LPG through a 50:50 joint venture naming BW Confidence Enterprise Private limited has further strengthened our capabilities in LPG infrastructure development and import optimization. The first project under this collaboration is a new LPG terminal at Jawaharlal Nehru Port Authority, Navi Mumbai. This will enhance our capability of bringing VLGCs and improve the efficiency of our import division.

Additionally, we are excited to announce that our subsidiary, Silversky Exim Private Limited, is setting up a state-of-the-art Green Hydrogen/Nitrogen/CNG high-pressure Type-4 Cylinder manufacturing unit in the 5 Star MIDC Butibori, Nagpur. These Type-4 cylinders, made primarily from carbon composite with a polymer liner, are 70% lighter than traditional metal cylinders and can transport three times more gas. They are also corrosion-resistant, shatter-proof, and highly safe, making them future-ready for various applications. This strategic move positions CPIL as a frontrunner in the green hydrogen ecosystem, aligning with the Government of India's vision to enhance the share of natural gas in the country's energy mix from 6% to 15% by 2030.

People and Culture

The superior performance of your Company is driven by its dedicated workforce of over 4500+ direct and indirect competent workforce committed to achieving excellence. We uphold the principle of 'employee enablement,' empowering and equipping our employees with the necessary resources, tools, support, and environment to perform their roles effectively and efficiently. Our focus on continuous upskilling, providing resources for both technical and soft skill development, ensures that our workforce remains competitive and motivated to drive better business outcomes.

Looking Ahead

As we look to the future, CPIL is well-positioned to capitalize on the vast potential of the Indian energy market. Our integrated business model, strategic partnerships, and focus on innovation and sustainability will continue to drive our growth trajectory. We remain committed to expanding our market presence, enhancing operational efficiencies, and delivering sustainable energy solutions.

I extend my deepest gratitude to our shareholders for their unwavering trust, to our employees for their dedication and resilience, and to all stakeholders for their continuous support. Together, we will continue to build on our legacy and achieve new milestones in the years to come.