Inox India Ltd

Dear Shareholders,

Fiscal 2023-24 marked a pivotal moment in our history as we became India's first cryogenic solutions Company to go public. The Company's equity shares were listed on the National Stock Exchange of India and BSE on 21 December 2023. For us, it was a moment of great pride and joy, making us even more confident to look ahead, capitalise on emerging opportunities and chart new growth trajectories in Indian and overseas markets.

Over three decades, we have honed our engineering expertise, built a comprehensive product portfolio and emphasised on an innovative approach. This has secured INOXCVA's position as a preferred supplier in both domestic and international markets. Leveraging our rich legacy, we embark on this new chapter fuelled by the trust of our stakeholders.

With rapid industrialisation and a spur in economic activity, the demand for cryogenic equipment continues to rise from diverse sectors including metallurgy, downstream oil & gas processes and renewable energy. At INOX, our growing order book reflects this positive trend. The transition to a green economy necessitates reduced carbon emissions and a shift towards clean fuels like LNG and hydrogen. This, in turn, drives the global uptake of cryogenic LNG infrastructure, an area where our engineering focus and deep domain expertise positions us to capitalise on emerging opportunities.

Our commitment to innovation extends beyond traditional applications. We proudly participated in the Make in India initiative by supplying cryolines to ITER, the world's largest nuclear fusion project – a significant step towards clean energy generation. As India's first cryogenic solutions Company, we are also providing equipment to ISRO for vital cryogenic scientific research.

Business Performance and Operational Highlights

The year gone by was marked by robust performances. During the fiscal, our consolidated revenue from operations grew from H 966 Crore in FY 2022-23 to H 1131 Crore. Our EBITDA stood at H 282 Crore, a growth of 25% from H 225 Crore in FY 2022-23 with an improved margin of 145 bps from the previous fiscal. We recorded PAT of H 196 in FY 2023-24, up from H 155 in FY 2022-23. I am also pleased to share that we have recorded our highest total income of H 1162 Crore, a growth of 18% from H 986 Crore in FY 2022-23. Additionally, we recorded the highest export revenue of H 641 Crore, up by 44% YoY and comprising 55% of the total income. Notably, due to high cash flow generation over the years, we are a debt free, net cash surplus Company. This strong financial position provides us with significant flexibility to invest in growth initiatives.

Let me now talk about our key achievements during the fiscal. One of our most exciting developments is our strategic partnership with Adani Total Gas, a prominent player in India's energy sector. Through this ‘preferred partner' agreement, we are poised to deliver essential LNG and LCNG equipment and services, supporting Adani Total Gas' transition to clean energy solutions for heavy-duty transportation. This collaboration not only contributes to a substantial reduction in and ^CO2GHG emissions but also accelerates the nationwide roll-out of LNG stations, driving wider adoption of LNG as a sustainable transportation fuel.

Additionally, we have forged a collaboration with IUAC, a prestigious institute under the Government of India. This Memorandum of Understanding (MOU) is focused on developing innovative technologies for designing and manufacturing SuperConducting Magnet-based Systems. Our partnership aims to position India as a global leader in this critical technology, enabling the indigenous development and production of next-generation MRI magnets and other advanced systems for clinical, industrial, defence and research applications.

In addition to these strategic partnerships, we have also made significant strides in innovation through the registration of three key patents. These patents cover crucial areas such as an LNG Dispensing System, a Sliding Spacer for Cryogenic Piping and a Displacement Decoupling Arrangement for double-walled Cryogenic Piping Systems. These innovations not only strengthen our leadership in the cryogenic industry but also differentiate our products, enabling us to consistently deliver excellent performance and become a reliable player in the industry.

We currently operate large-scale serial manufacturing facilities at four locations in India, along with part manufacturing and service distribution from one location in Brazil. Our service distribution also extends to the Netherlands. During the fiscal, Kandla SEZ Plant achieved record revenue of H 335 Crore, driven by its world-class manufacturing capabilities and timely delivery of significant projects for Industrial Gases and LNG sector. We completed a greenfield project – our fourth state-of-the-art manufacturing facility in Savli, Gujarat. This H 100+ Crore expansion was funded entirely through internal accruals, demonstrating our commitment to organic growth and financial prudence.

Fulfilling our social responsibility

Service to the community has been a part our ethos since inception. Our CSR strategy is focused on initiatives aimed at elevating the quality of life of the communities we operate in and interventions that matter to the nation. In our efforts to achieve these, we operate a mobile health unit for villages near the Kalol plant, ensuring the well-being of older people with targeted care.

To uplift the marginalised, we collaborated with ITMBU, Vadodara, to establish a skill development centre that provides welding training to selected women in rural areas. This helped to transform lives, empowered women as well as their families to lead a better quality of life. We designed and implemented a contemporary curriculum for training welders, adhering to global industry standards, to create a positive impact on the domestic manufacturing industry and contribute to the nation's development.

Way forward

Industrialisation and urbanisation have increased greenhouse gas emissions, prompting governments to promote cleaner LNG, for power generation and vehicles. The surge in LNG demand, driven by a preference for LNG as a marine fuel and upcoming infrastructure projects, presents a positive outlook for the industry. With the Asia-Pacific region poised to be the fastest-growing market, we, as an established player in the cryogenic industry, are well-positioned to accelerate LNG adoption and infrastructure development.

Our expertise in hydrogen solutions since 1999, enables us in capitalising on the increasing demand driven by global hydrogen use. Rapid expansion in low-emission hydrogen production projects and focus on cleaner energy sources present significant opportunities for cryogenic storage solutions. We are committed to seizing these opportunities by prioritising sustainable growth and operational excellence. Our consistent focus on maintaining quality standards and fostering innovation - will empower us to pursue our goals ambitiously. One of our key priorities lie - in relentlessly expanding our geographical footprint and becoming a global integrated cryogenic solutions provider.

With your continued support, we aim to solidify our position as a reputed player in the cryogenic solutions sector and make way for a cleaner and more sustainable future.

I express my heartfelt gratitude to our stakeholders for their support and look forward to sharing our continued success with you.