Josts Engineering Company Ltd

Mr. Jai Prakash Agarwal

Chairman

Dear Shareholders,

I am delighted to share with you the events and developments of your Company during the course of the Financial Year 2023-24. The year gone by is representative of the value Josts continues to create for all its stakeholders.

In the Financial 2023-24, our company has shown sustainable growth in all our operations and expanded our range of services tremendously. As the economy continues to grow at a sustained pace, we are seeing resilient private sector growth kicking in along with Government sector capital expenditure. We are seeing increased capex in private and sales teams are now focused on closing some quality project opportunities. This shall help our material handling business growth momentum to continue. Rental business we continue to run cautiously and are only doing selective capital expenditure, where the payback period is short. This self-introduced constraint is restricting our growth in the business, but incremental deal quality while limit- ed is very good.

Our murbad project for manufacturing facility of material handling equipments has commenced its trial production and this plant has capacity of manufacturing appx 200 equipments per month. This is state of art plant and will help Josts to cater the increased demand in the market.

In the EPD business, customers continued focus on delivering quality products and adhering to international testing standards. As the economy grows, the country's energy demand is growing steadily, leading to capital expenditure in power generation,transmission, and distribution sectors. This capital expenditure and regular O&M expenses in the utility sector are providing enough demand growth momentum for our products, in our distribution basket. We are selectively adding new principals to help increase our wallet share of the spending done by our existing customers. Solar Power, Electric Vehicles and EMS are some of the new growth industries, where we are finding opportunities for our product portfolio. We are pleased to inform you that we have opened our second NABL-accredited electrical test lab in Thane and are working towards opening our third one. This will further strengthen our AMC and calibration services business. Further, we have acquired Transformer Testing Van during the year which will help in generating additional service business.

Income for the year is ?17,553 Lakh as against ?16,052 Lakh in the previous year. The Company has reported a profit after tax of ?968 Lakh as against ?694 Lakh in the previous year. Return on capital employed grew form 25% in FY 2022-23 to 27% in FY 2023-24.

To conclude, we had a good year. We remain encouraged and confident of achieving our long-term objec- tives of inclusive, sustainable and profitable growth. As we look ahead, I feel confident of strong growth in the medium to long term. I am confident that our disciplined strategy, prudent approach, focus on agile exe- cution and our committed team will enable us to improve performance further and create greater share- holder value.

I would like to thank all our employees, customers, supply chain partners, business associates, members of our board, shareholders, and all the people associated with the company for their continued trust, support, and confidence in Josts.