Ram Ratna Wires Ltd

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Dear Shareholders,

It is with immense pride and gratitude that I present the 32^nd Annual Report of Ram Ratna Wires Limited for the Financial Year 2023-24. This year has been a testament to our resilience, adaptability, and unwavering commitment to delivering value to our stakeholders amidst challenging economic landscapes.

Our Company has achieved its best-ever performance in the financial year 2023-24. The key performance metrics highlight this success, with EBIDTA reaching Rs 99.48 Crs., reflecting an 8.67% increase from the previous year’s Rs 91.55 Crs. Additionally, our Profit Before Tax (PBT) saw a significant rise of 20.48%, amounting to Rs 68.85 Crs. compared to Rs 57.15 Crs. in the previous year.

In terms of revenue performance, we witnessed robust growth. On a standalone basis, our revenue from operations reached Rs 2,615 Crs. in FY 2023-24, marking a substantial increase of 12.33% from the previous year’s Rs 2,328 Crs. On a consolidated basis, our revenue grew to Rs 2,983 Crs., reflecting a 12.59% growth from the previous year’s Rs 2,650 Crs. These achievements underscore the dedication and hard work of our entire management team.

I am pleased to announce that the Board of Directors has recommended a Final Dividend of Rs 2.50/- per share (i.e., @ 50%) on the equity shares of face value of Rs 5/- each for the financial year ended 31^st March 2024. This is in addition to the Special Interim Dividend of Rs 2.50/- per share, i.e., 50% declared and paid in November 2023, representing an increase from last year’s dividend.

Your Company is excited to announce the introduction of several innovative products to our catalogue, marking a significant expansion in our offerings. We have enhanced the capacity of our Bunched & Braids wire and are planning a further increase in its production capacity in near future. This strategic expansion is aimed at meeting the growing demand and ensuring effective customer service. Our successful development and production of ultra-fine Litz wire for a leading manufacturer of wireless chargers underscore our commitment to innovation and meeting specialized client needs. We have also introduced Litz wire with various servings, submitted to customers for evaluation and feedback.

Our Company has achieved significant breakthroughs in acquiring new customers across various industries in India. In the Automotive ICE & EV sector, partnerships with prominent companies such as FCC Clutch, Taco Prestolite (Tata Group), Honda Motors among others have been established. Similarly, in the Transformers segment, notable collaborations include Ovi Engineers and Static Electricals among others. Our wires have been chosen for prestigious projects like Vande Bharat, Rajdhani, and Metro Trains, with Nidec being a valued client. Your Company has expanded its footprint in the international market with breakthroughs in customer acquisitions in the Switchgear Industry and Transformers sector.

These advancements demonstrate our commitment to product development and exceeding customer expectations. Our efforts to expand our product range and enhance production capacity reflect our commitment to growth and delivering value to stakeholders. Innovation and customer satisfaction remain integral to our strategy, driving global expansion and reinforcing our market leadership.

Your Company has embarked on a significant journey of expansion and diversification to fortify our market presence and address increasing demand. The construction of our new manufacturing facility in Bhiwadi is progressing exceptionally well. This expansion aligns with our strategic objectives, enhancing production capacity and geographical footprint. Additionally, our joint venture subsidiary, Epavo Electricals Private Limited is also setting up a state-of-the-art manufacturing facility for Brushless DC (BLDC) motors, diversifying our product offerings and generating employment opportunities.

As we reflect on Company’s achievements in the Financial Year 2023-24, I extend my heartfelt appreciation to our management team for their dedication and hard work. Their efforts have been instrumental in achieving remarkable milestones and driving us towards our ambitious goals. Innovation and growth are integral to Ram Ratna Wires Limited. Our commitment to research and development, adoption of advanced technologies like "Industry 4.0" and digitization, and expanding distribution networks underscore our dedication to high-quality, innovative solutions. The consistent growth in demand for copper and aluminum winding wires reflects the success of our strategies, maintaining our reputation for excellence.

The International Monetary Fund (IMF) has revised India’s Gross Domestic Product (GDP) growth projection upward to 6.8 percent for the financial year (FY) 2024-25, an increase of 30 basis points from its January forecast of 6.5 percent. According to the IMF’s update to the World Economic Outlook, India’s growth is expected to remain robust at 6.8 percent in FY 2024-25 and 6.5 percent in FY 2025-26, driven by strong domestic demand and a rising working-age population. This revision reaffirms India’s position as the world’s fastest-growing economy, outpacing China’s projected growth of 4.6 percent during the same period.

The global economy is projected to grow steadily at 3.2% in 2024 and 2025, maintaining the pace of 2023. Advanced economies will see a slight uptick in growth from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025, while emerging markets and developing economies are expected to experience a modest slowdown from 4.3% in 2023 to 4.2% over the same period. Looking further ahead, global growth is forecasted to reach a decades-low of 3.1%. Inflation is set to decline, starting at 6.8% in 2023, falling to 5.9% in 2024, and 4.5% in 2025, with advanced economies likely to achieve their inflation targets sooner than their emerging counterparts. Despite significant central bank efforts to stabilize prices through interest rate hikes, the global economy has proven unexpectedly resilient. As we look ahead to FY 2024-25, we are optimistic about the opportunities that lie ahead despite global economic challenges. Our strategic focus on innovation and customer-centricity positions us well to capitalize on emerging trends, including the anticipated rise in Electric Vehicles (EVs) to expand our market presence.

India’s promising economic outlook and our expansion initiatives are aligned to foster sustainable growth and create value for all stakeholders. Upholding our values of integrity, excellence, and innovation, we are committed to navigating challenges with resilience, driving prosperity for our company and stakeholders alike.

With confidence in our ability to seize new opportunities and create lasting value, I thank our Board, leadership team, employees, and stakeholders for their unwavering support. Together, let us continue our journey towards achieving our strategic goals and building a successful future for the Company.

With Warm Regards,

Chairman