Aditya Vision Ltd

SETTING THE PACE FOR ACCELERATED GROWTH

Dear Shareholders,

At the outset, let me congratulate each and every stakeholder on this iconic 25th year of our Company. It is indeed an emotional and nostalgic moment for me, to address you as your company completes its glorious 25 years of journey through which the Company witnessed an addition of 149 stores as of today from just a single store. This period also saw a total transformation from just a neighbouring store to a modern formidable chain of stores across Bihar, Jharkhand and UP with Aditya

(sun) vision of conquering entire Hindi heartland where previously no other dared. This period also saw a number of milestones such as launching our IPO and getting listed on BSE and after 8 years recent fund raising from marquee investors. Your Company which started with a dream in 1999 to bring exceptional retail experience to the people of Bihar, has become a household name in Bihar, Jharkhand & Eastern UP, a name which clearly resonates with its tagline – “Sambandh Bharose Ka”. As

Aditya Vision celebrates its 25th Anniversary, it's now more focused, formidable and fierce on way to an accelerated era of growth.

We believe that in India we have a lot to look forward to. The strong economic growth of the last decade coupled with the rising disposable income has created a huge consumption demand at the grassroot level. There is a paradigm shift in the aspirations and lifestyle of Rural India which is translating into a higher demand for lifestyle enhancing products. The country's rural economy is growing at a faster pace of 7.3% during the past decade, compared to 5.4% in the urban economy.

There has been a visible shift in rural consumption which has moved towards non-food category from 47% in 2011-12 to 54% in 2022-23. Also, the rural spending on consumer durables segment has seen a significant from 4.9% in 2011-12 to 6.9% in 2022-23. We at Aditya

Vision have been at the forefront of this change. The world is looking towards India as new growth engine of economy, so is India looking towards the Hindi heartland for its sustainable growth.

At Aditya Vision, we have been able to offer customers exceptional retail experience with a strong brand equity through large presence and highly customer-centric policies. Our deep understanding of the areas in which we operate and our enduring relationships with large OEMs further strengthens our position as a preferred retailer in the region.

This past quarter-century, while marked by steady growth and consistent progress, we believe has been a canter walk. As we pivot to the future, this canter is set to transform into a gallop. Reflecting on our history, each year has been a step forward, building resilience and capability. However, as we look ahead, the intensity of our journey will increase dramatically. The next five years will encapsulate growth and innovation that might have taken decades in the past. We are entering into this phase better equipped, more agile and with a clearer vision than ever before. Our readiness to embrace new opportunities is unparalleled. We are poised to expand into new markets, leverage cutting-edge technologies and pioneer sustainable practices that align with global shifts towards greener economies. The investments we make today in our people and partnerships will propel us into a future where our past 25 year achievements will seem modest in comparison.

Together, let's gallop towards a horizon replete with opportunities, turning what once seemed distant into our immediate reach.

Sirs, it is my privilege to present this 25^th annual report for FY 2024 to you all.

Operational Achievements and Financial Surpluses

Aditya Vision began operations in 1999 with one store in Patna, Bihar to 150 stores as it stands today in three states of Hindi heartland of India. Retail is a service business and the fact that we've never closed a store is testament to our superior customer service. As we continue to cement our leadership position in Bihar, we also achieved a premier market position in Jharkhand within two years of operation. We hit a milestone of more than 100 stores in Bihar in all districts and plan to expand further in sub-division level in Bihar. We are the largest retailer in Jharkhand and in the past one year have deeply penetrated in Poorvanchal (Eastern UP) with 20 showrooms. We see huge potential in UP and in this year expand to the central parts of the state. We have increased our pace of store additions and have almost doubled our stores in the last 2 years.

FY24 was a landmark year in the history of the company. We delivered a strong financial performance with FY24 revenues growing 32% to 1,743 crores and PAT increasing 20% to 77 crores. We have doubled our revenues in just two years. We have grown while maintaining our operating metrics like gross margin, EBITDA margin, and RoCE. This year also marks our 2^nd fund raise of 282 crores from one of the world's largest foreign institutional investors, after our 1^st fund raise of 5.8 Crores during IPO. These funds have been utilized toward repayment of debt, meeting working capital requirements and other expenditures related to general corporate purposes. Consequently, we strengthened our balance sheet and became a net cash debt-free Company in FY24. To commemorate the silver jublee year of operations, we have declared a special interim dividend of 5.10 per share of 10/- each.

Long-Term Plans and Strategies to Achieve Them

The consumer durables segment is poised for multi-year tailwinds. Growth in consumer durables is underpinned by under penetration, increasing disposable incomes, shortening of replacement cycles, change in perception towards durables form luxury to necessity and ease in availability of financing. India's Hindi heartland is particularly enjoying the benefits of improved electricity and an increase in disposable income. The industry has grown at a rapid pace and will continue to do so, in the light of very low penetration and we believe that our core markets could continue to outpace the growth rate of the industry, further boosting Aditya Vision's financial performance. For example, Room Air Conditioner penetration in China is ~80% while that in India is just 7-8%. Within India, penetration in our core markets is <2%.

Penetration of other durables are also similar. Organised players continue to gain market share over unorganised players by offering wider assortment, superior customer service and convenience, and better pricing. People and culture are the foundation of our success and I'm pleased to share that the company in FY 24 has rewarded employees with its first stock option plan a portion of which got vested to the employees in this FY25. Stock options are evenly distributed from senior management employees to store managers, cashiers, and warehouse keepers at stores. Our employees are offered several training programmes and through our employees we aim to provide the same high standards of customer experience across all our stores.

Thank You!