Cosmic CRF Ltd

Managing Director's Review

I am really happy to share with you Cosmic CRF Limited first complete annual report following the company's successful IPO and listing. This is unquestionably a turning point in our business strategy, and I would like to use this as an opportunity to express my gratitude to all of our shareholders for their overwhelmingly positive response to our IPO which was oversubscribed by more than 1.16 times and today we are a family of more than 1500 valued shareholders.

This fiscal year, Cosmic CRF Limited, as an organisation, has been able to demonstrate what we can achieve by focusing on operational excellence, adopting capital prudence across the board, and leveraging our team strength.

Green shoots in the domestic economy

India's GDP is projected to grow at 6.7% in FY2024, up from 6.4% in FY2023. This growth is driven by strong private consumption and investment, bolstered by government policies aimed at improving infrastructure and the business ecosystem.

The domestic railway industry continues to be a cornerstone of India's infrastructure development. The government's emphasis on modernizing and expanding railway networks is evident through substantial investments in railway coaches and wagons. This focus not only aims to improve transportation efficiency but also seeks to support the Make in India initiative, creating numerous opportunities for domestic manufacturers and suppliers.

For Cosmic CRF Limited, the government's focus on railway infrastructure presents significant growth prospects. Our products, particularly Cold Rolled Sections and Rolled Formed Items, are crucial components in the manufacture of railway coaches and wagons. The benefits of these products include enhanced structural integrity, reduced weight, and improved durability, which are essential for modern railway applications. Our recent RDSO certification underscores our commitment to quality and positions us as a key supplier in the railway sector

We are of the firm belief that if we keep our focus on working with integrity and re-dedicate ourselves to nation-building, both our nation and our organisation will become unstoppable forces for good.

Our growth trajectory

We are pleased to announce that our Company has achieved a commendable financial performance in the fiscal year 2023-24. Our company's total income witnessed significant growth of 108.77% thereby reaching ' 25,363.92 Lakhs as compared

to ' 12,149.31 Lakhs during the previous year. Furthermore, Net Profit for the year stood at ' 1,275.49 Lakhs compared to ' 641.19 Lakhs in the preceding fiscal. At Cosmic CRF Limited, our lean debt ratio, consistent financial performances and enthusiasm to seize new opportunities lends stability to our operations. These notable achievements are a testament to our relentless pursuit of operational efficiency, effective cost management, and the successful execution of order book. This has established our credibility as a reliable partner in nation building. It has not only resulted in healthy financial returns but is going to translate into relentless value creation for our shareholders. We owe our success to the dedication of our skilled workforce and their expertise has been instrumental in realising our goals and shaping our way forward.

We are continuously expanding our horizons, both in terms of scale and geography. Our diversified products offering have enabled us to adapt to evolving industry requirements and adopt transformations to benefit from the emerging opportunities.

Building a robust organisation

During the year under review, we acquired N S Engineering Products Pvt Ltd for ' 2,876.01 Lakhs through the NCLT route in March 2024 and we are hopeful to resume the operations by the mid off 2nd quarter of FY 24-25. Post completion of the necessary formalities, a separate team would be constituted to commence working on the expansion and rehabilitation of the acquired said facility. We are confident of addressing all targets and bring this facility to production in the shortest time.

I am also happy to report that in FY 23-24, we have worked on developing and introducing several new products which reinforces our growing share in the Indian market. We continued to receive appreciation and motivation from downstream customers by way of their various orders conferred to us.

Way forward

In the Interim Budget 2024-25, Indian Railways received a substantial allocation of ' 2.55 Lakh Crore for fiscal year 2024-25, representing a 5.8% increase from the previous budgetary estimate of ' 2.41 trillion for fiscal year 2023-24. The Govt. announced that, 3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost. The Govt. also announced plans to convert forty thousand normal rail bogies to Vande Bharat standards. The government is

also aiming towards Metro Rail and NaMo Bharat which can be the catalyst for the required urban transformation. Expansion of these systems will be supported in large cities focusing on transit- oriented development.

For the domestic wagon and boogie manufacturing industry, these benefits translate into increased government support, encouraging local production and enhancing competitiveness. For Cosmic CRF Limited, these measures present substantial growth opportunities. Our expertise in producing cold-rolled sections and formed items positions us to capitalize on the increased demand and contribute significantly to the modernization of India's railway system. This strategic alignment with government policies not only strengthens our market presence but also reinforces our commitment to driving innovation and excellence in the railway sector.

Success and sustainability at Cosmic

Our success is driven by the talent and dedication of our exceptional workforce. To support our business transformation, we are committed to attracting and retaining the right pool of talent across our organization. At the same time, we are also nurturing and developing the existing talent within our organization. By providing a conducive work environment, fostering a culture of excellence, and promoting diversity and inclusion, we endeavour to unlock the full potential of our team, driving innovation and creativity throughout the organization.

Besides our business endeavours, we are deeply committed to the society at large. Our CSR activities testify to this unwavering commitment of 'touching lives positively'. During the year we spearhead philanthropic interventions, through various organisations/NGOs with the intention of improving the lives of the people in our local communities.

As we commemorate this milestone, we extend our sincere appreciation to all our employees, partners, shareholders, bankers, auditors and society, for their unfaltering faith in us. Together, we aim to resiliently build a legacy of excellence and are poised to embrace the very positive looking future with confidence and determination, remembering all the while that this is the decade for India to shine.