Triton Valves Ltd

Dear Shareholders,

As the Triton Group enters its 50th year,

I am filled with immense pride and gratitude for our remarkable journey. This milestone is not just a testament to our resilience and innovative spirit but also the unwavering trust and support of our stakeholders, employees, and customers.

India's resilience Against Global Challenges

The global economy faced heightened uncertainties, marked by macroeconomic volatility, geopolitical tensions, supply chain disruptions, and inflationary pressures. Against this backdrop, India's growth has remained resilient and stellar. This has been driven by strong public capital expenditure, booming manufacturing and construction activity, and robust private consumption. India's Gross Domestic Product (GDP) grew by an impressive 8.2% in FY 2023-24, making it one of the fastest-growing economies in the world.

Performance Overview

In the fiscal year 2023-24, we witnessed the fruits of our ambitious growth strategy, which was set in motion just before the COVID-19 pandemic. Despite the unforeseen challenges, we stayed committed to our vision, venturing into high-growth businesses like climate control and deepening our vertical integration with the commissioning of our own brass mill. These efforts have now begun to yield significant

We have successfully onboarded new marquee customers, aligned our cost structures to compete globally, and delivered consistent growth with a CAGR of over 18% over the past three years.

Throughout the year, Triton Valves outperformed industry peers across all our verticals, led by our focus on innovation, market expansion, cutting-edge technology, and customer-centric products. Our total revenue on a consolidated basis grew by 15% while our standalone revenue increased by 6% to 34,326 lakhs in FY 2023-24. Our strategic initiatives, including partnerships and collaborations with industry experts, have further propelled our technological advancements and product innovations.

Our dedicated team effectively addressed the volatility in raw material prices and global supply chain to disruptions, ensuring operational continuity and customer satisfaction.

We maintained financial stability by prioritizing cash preservation and refraining from significant expenditures, thereby strengthening our liquidity for future opportunities.

All our business verticals have demonstrated robust growth. Our automotive segment has benefited from the increasing demand from OEMs, the aftermarket, and export markets, resulting in strong growth. The climate control vertical, though still in its early stages, holds immense promise, with a projected CAGR of 13%-15% over the next decade. Our metals vertical has gained traction with new products and an expanding market for copper alloys in India, coupled with competitive pricing.

Our commitment to research and development was unwavering, with a focus on TPMS, Electric Vehicles, and Climate Control. This resulted in the introduction of several new products that are set to drive our growth in the coming years. Our subsidiaries also showed positive trends, with notable sales revenue growth and improved EBITDA, reflecting the success of strategic initiatives.

Future Outlook

We are no longer focusing on niche markets; instead, we are targeting large global opportunities. Our air-conditioning vertical has a globally addressable market in billions of dollars, while our brass mill's potential is almost unlimited with the global market opportunity spanning over 30 billion dollars globally. In the automotive vertical, we are exploring substantial opportunities in the rapidly growing space of Tyre Pressure Monitoring Systems (TPMS). With this broader vision, we are confident in our ability to elevate our sales and profitability new heights.

The recent equity capital infusion has fortified our financial position, fueling our growth initiatives and strengthening our market presence. Additionally, our merger of our wholly-owned subsidiary Tritonvalves Climatech Pvt. Ltd. With the holding company enables us to leverage complementary strengths, streamline operations, and boost operational efficiencies while driving innovation and enhancing our competitive edge. These strategic moves position us to achieve our long-term vision while continuing to deliver significant value to our shareholders.

Conclusion

As we approach our 50-year milestone, we remain committed to driving innovation, customer satisfaction, and sustainable growth. Aiming for gold by leveraging our core capabilities, we are targeting a Group-level turnover of 500 crores in our golden jubilee year.

We are excited about the future and confident in our ability to seize emerging industry opportunities. Our vision is clear, and our determination is unwavering. Together, we will continue to build on our rich legacy and achieve new milestones in the years to come.

Thank you for your continued trust and support.