The Anup Engineering Ltd

Dear Shareholders,

Congratulations on a Satisfactory year 2024-25! I must say the year has been very eventful and challenging. The geopolitics, wars, trade tariff positions etc has been volatile and uncertain, and still continues until complete clarity emerges. This was the year we focused on execution and building our capacities in line with our growth aspirations. The successful commissioning of Phase 1A at our Kheda location and the seamless integration of our newly acquired Mabel Engineers in Tamil Nadu provided necessary philip to our revenue growth. With a substantial business into exports, we were able to position ourselves as a true global player.

In the Consolidated Financial year 2024-25, we achieved a revenue of 732.8 Crores, an encouraging growth of 33.1%, with an EBIDTA of 165.2 Crores increase of 30.3% YOY. PAT stood at 118.3 Crores almost 14.3% YOY. The revenue from exports was 65% (Deemed exports 9%). The working capital was at an average 3.6 Turns. The pending order book was at 741 Crores with a healthy enquiry pipeline expected to be finalized in the coming months. In the Standalone Financial year 2024-25, we achieved a revenue of 708.3 Crores, an encouraging growth of 28.7%, with an EBIDTA of 162.2 Crores increase of 28.0% YOY. PAT stood at 116.8 Crores almost 12.9% YOY. The revenue from exports was 63% (Deemed exports 9%). The working capital was at an average 3.6 Turns. The pending order book was at 700 Crores with a healthy enquiry pipeline expected to be finalized in the coming months. The sectorial revenue across industries was as expected with Hydrogen at an encouraging 30% which demonstrates energy transition to cleaner forms and our preparedness for this business. Oil & Gas at 30%, Petrochemicals at 23%, Fertilizer at 10 % and others 7%. In terms of products, Heat exchanger is at 65% and Vessels, Reactors, columns at 35% which signifies contribution from our Kheda plant, which focuses on manufacturing vessels, reactors and columns.

There have been some interesting developments in the year. First on our foray into critical equipment business, we have successfully manufactured and delivered our first Chromium Molybdenum Vanadium modified material equipment's for an Indian client. We have also started manufacturing our first Solid Inconel equipment weighing 200 MT single piece for an export Customer. After a long gap, we have manufactured and supplied Titanium equipment's from our clean room. This is in line with our strategy to have calibrated, strategic in roads into critical & complex metallurgy. On our capacity expansion plan, we have started the construction of our Phase 2 at Kheda location, to be operational by the 3rd Qtr of FY 2025-26. This will increase the capacity at Kheda plant to 10,000 MT/Yr from the current 6,000 MT/Yr. Our acquisition of Mabel Engineers is yielding results. It has added about 2,000 MT/Yr fabrication capacity and expected to double the turnover in FY 2025-26. Our Design office at Vadodara have stabilized well and we expanded it further. This is in line with building Vadodara as Anup's design Hub for new product development and a profit center. Our strategic focus on expanding our export footprint has yielded good results, with about 54% products exported.

The market outlook provides interesting opportunities in the future. The Domestic market which was slow all through last year is showing signs of revival. We continue to see traction on Capex into capital goods especially focused on Petrochemicals, Gas, Fertilizer, Hydrogen and Specialty chemicals. We are also cautious of the present Geopolitics, market dynamics due to wars and uncertainty of trade tariffs in major markets.

The hydrogen projects offer a big opportunity for manufacturers like us, both for Blue hydrogen to start with and Green hydrogen in the near future. Moreover, GDP growth aspirations announced by developing countries meant the conventional Oil & Gas and Petroleum products will continue to be an important part of their energy mix driving growth, in addition to the focus on cleaner energy mix. I wish to take this opportunity to thank all our esteemed customers, our supply chain partners, our shareholders, all our Stakeholders, our Bankers and our Employees for trusting and standing by us as we stay focused on our growth aspirations.