Supreme Power Equipment Ltd

Dear Stakeholders,

I am pleased to present the inaugural annual report highlighting our key achievements and milestones from the past year. Since our founding in 1994, SPEL has been a cornerstone of the power industry, renowned for our commitment to quality and reliability in manufacturing power and distribution transformers.

This year has been especially significant for us: not only did we release our first annual report, but we also achieved a major milestone by listing on the NSE Emerge Platform on December 29, 2023. Within just six months of our listing, we surpassed the impressive 1,000 Crore market cap milestone. reflect This achievement under scores our rapid growth, market year marked by significant development and progress.

Moving to the transformers industry the industry experiencing a strong upward trajectory, driven by increasing demand in sectors such as renewables, green energy, power, railways, and data centers. As the third-largest producer and consumer of electricity worldwide, India is witnessing growing demand due to population growth, electrification, and rising per-capita usage. The strong economic growth and government initiatives to ensure power for all have significantly bolstered energy demand.

India's ambition to become energy independent by 2047 and achieve net zero emissions by 2070 emphasizes the need for enhanced renewable energy use. Our focus aligns with this vision, especially as Indian Railways advances towards high-speed trains, creating demand for transformers ranging from 66 kV to 132 kV, alongside the development of freight corridors, metros, and other infrastructure projects. As the fastest-growing economy, India is set to become the third-largest global economic power, with 65% of the population under the age of 35 driving an unprecedented increase in energy demand. This shift scalable energy infrastructure.

As we navigate the dynamic landscape of our industry, our company's order book momentum remains a beacon of stability and strength, grounded in our core values of growth, quality, and financial discipline.

We have achieved significant order book growth, with a 10.27 crore order for 160 units of 250 KVA transformers in February, taking our total order book to 61.47 crore. Also, we received a 11.32 crore order from Solar Project Company, reinforcing our leadership in the transformer industry and commitment to sustainability.InMarch2024,wesawanotableorderinflow of 12.41 crore, including 9.10 crore from government entities. Our total order book now stands at 61.47 crore, demonstrating robust market demand and consistent growth.

Our manufacturing and supply capabilities have also shown strength, with over 17,000 units manufactured and supplied to date, showcasing our commitment to quality.

Furthermore, we have received a credit rating upgrade from ICRA Limited, with a long-term rating of ICRA BB+ (Stable) and a short-term rating of ICRA A4+. These achievements demonstrate our company's ability to deliver on its promises and drive growth, while maintaining a focus on quality and financial discipline. I am proud of our team's efforts.

Building on the momentum of our growing order book, our company has achieved exceptional financial results in FY 2023-24. We achieved a total income of 113.59 crore, marking a 13.69% increase YoY. EBITDA grew by 27.43% to 23.33 crore, with an EBITDA margin of 20.54%, up by 221 basis points. Net profit surged by 29.05% to 14.30 crore, enhancing the net profit margin to 12.59%, an increase of 150 basis points. Earnings per share stood at 7.12. These results underscore our commitment to growth, efficiency, and profitability.

We are excited to announce the development of a state-of-the-art 6-acre facility, which will become operational by December 2025 and commence production in January 2026. This facility will enable us to produce transformers from 25 MVA to 160 MVA, expanding our market reach and product offerings. The estimated investment of 70 Crore to 75 Crore demonstrates our dedication to future growth and capacity enhancement.

This expansion sets the stage for our future growth, enabling us to capitalize on emerging opportunities and drive sustainable success. We anticipate a robust YoY revenue growth of 10% to 30%, driven by increased production capacity and rising market demand. The new facility will unlock new business opportunities, enabling us to capture a larger market share and enhance profit margins through improved production capabilities and efficiency gains.

As we continue to deliver on our financial commitments, we are also focused on building a stronger foundation for future growth, including the expansion of our manufacturing plant.

Our state-of-the-art manufacturing facilities, equipped with advanced machinery and in-house testing capabilities, support cost-effective production while maintaining the highest quality standards. Our ongoing investment in technology upgrades enhances product quality and reliability, reinforcing SPEL's leadership in the energy sector.

As we publish our first annual report, we reflect on the significant progress we've made and express our heartfelt gratitude to all stakeholders for their contributions. We are proud of our achievements and excited about the future, confident that eff have established a strong foundation for ourcollective sustained growth, innovation, and success.

We look forward to continuing our journey together, driven by our shared values and passion for excellence. We envision a future where we will be reporting on new milestones, innovative solutions, and continued success, building a better tomorrow and helping the nation prosper. Thank you for your support and trust. We will see you next year with new stories of achievement and progress.