Welspun Enterprises Ltd

My Dear Stakeholders,

At the outset, it gives me immense pride to inform you that Welspun Enterprises Limited (WEL) has doubled its revenue in FY23, recording its highest-ever revenue since inception. This significant milestone is a testament to the robust strategy, superior execution, unwavering resilience, and agility of the Company. Even in the face of numerous challenges, the WEL team has demonstrated exceptional determination and perseverance.

In line with our asset-light model, this fiscal the divestment of six highway projects to Actis, aggregating to an asset value of over 9,000 Crore. We have received ~90% of the consideration, while the balance will be realized in 2024, subject to NHAI's approval. This transaction has demonstrated WEL's ability to bid, build and exit world-class infrastructure assets and deliver value-accretive growth for its stakeholders.

Reflecting our continued commitment towards maximizing shareholder value, I am pleased to share that WEL has paid

7.50 per share interim dividend during the year, and has returned

235 Crore through buyback, in addition to being on track to return 1 per share as final dividend. It is heartening to note that over the past five years, your

Company has returned more than 700 Crore, ensuring that investors benefit from their trust in the Company.

Your Company has continued its firm focus on accelerated execution through the year across several projects such assaw the Varanasi-Aurangabad NH-2 project and the Aunta-Simaria road project, which includes one of the widest extradosed bridge on the River Ganga. It is encouraging to note that four of WEL's road projects achieved Provisional Commercial Operation Date (PCOD) and/or Commercial Operation Date (COD), and are generating healthy revenues.

In the promising water segment, WEL has made swift progress in the execution of the Jal Jeevan

Mission project in Uttar Pradesh, which is part of the Government's ‘Har Ghar Nal Se Jal' scheme. I would like to mention that for the prestigious Dharavi Wastewater Treatment Facility (WwTF) project, we have received the land and requisite clearances to proceed, and the project is now under execution. On completion, the Dharavi WwTF will be India's

treatment facility, with state-of-the-art technology and low footprint.

We are advancing well with exploration and development of India's oil and gas resources through our Joint Venture Company, Adani Welspun Exploration Ltd. Post the discovery of gas in one of the blocks, your Company is undertaking operations for appraisal and early monetization of the acreage. I am confident that going forward, this business will be able to generate sustainable value for our stakeholders and further contribute towards promoting cleaner fuels for a better tomorrow.

Welspun World has always been committed to a greener world, and all our actions have been towards envisioning a sustainable future. Besides adhering to highest EHS standards, WEL has acquired Welspun New Energy Limited to explore opportunities in the renewable energy and green hydrogen space. We expect that the global focus on these sectors, along with the immense vision of the Government of India, would translate into a huge business opportunity for us.

WEL continues to be recognized by distinguished authorities and organizations for its dedicated focus on project management, execution and HSE. It gives me immense pleasure to share that the Delhi-Meerut Expressway (Pkg 1) project, which was delivered by WEL 11 months ahead of schedule, was conferred with a Gold Award for Excellence in Projectmulti-tierwastewater Management by the Ministry of Road Transport and Highways. In addition, your Company's Chikhli-Tarsod Highway Project was awarded with the ‘Unique Project of the Year' accolade by ASSOCHAM, for connecting people from rural and urban landscapes, and empowering them with an improved way of life.

Additionally, WEL's commitment to responsible and sustainable business practices remained unwavering across offices and project sites. We continued to actively engage in various community development projects, educational programmes and environmental conservation initiatives with an objective to balance the needs of the present with those of the future.

As we embark on the new fiscal year, it gives me huge confidence that we begin with a healthy order book of over

10,000 Crore. This strong order book is a testament to the confidence our clients have placed in our capabilities and the trust they have in our ability to deliver high-quality projects, in addition to providing WEL with a solid foundation for future growth.

Our business strategy continues to remain centred on building a diversified portfolio that not only drives revenues but also margins, on the back of an asset-light business model. Additionally, our focus is to ensure that the diversification in the portfolio de-risks our business and reduces dependency on any one specific vertical, enabling long-term growth sustenance.

WEL has a robust zero-debt balance sheet, steady cash flows, and strong tailwinds from the Government's continued impetus on the infrastructure sector. I believe that we are positioned at a sweet spot to make the most of these opportunities and enhance our order book with value-accretive orders.

I am confident that with our strong foundation, experienced leadership and dedicated workforce, we will continue to adapt to changing market dynamics, identify new growth opportunities and deliver exceptional value to our stakeholders.

I extend my heartfelt gratitude to the members of our Board, our shareholders, business partners, WEL team and all stakeholders for their unwavering support and trust in our growth journey. I look forward to your continued engagement and partnership in the years to come.

Executive Chairman