Avalon Technologies Limited

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To:	To:
BSE Limited Corporate Relationship Department PJ towers, Dalal Street, Mumbai -400001 BSE SCRIP CODE: 543896	The Manager Listing Department The National Stock Exchange of India Limited “Exchange Plaza”, Bandra – Kurla Complex, Bandra (EAST), Mumbai – 400051 NSE Symbol: AVALON

Sirs,

Sub: -

Outcome of Board Meeting under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.

This is to inform you that:

The Board of Directors at its meeting held today, i.e., on November 08, 2023, have approved the Unaudited Standalone and Consolidated Financial Results for the Quarter and Half Year Ended September 30, 2023, of the Company. The meeting commenced at 06.30 PM and concluded at 8.30 P.M.
The said Unaudited Standalone and Consolidated Financial Results for the Quarter and Half Year Ended September 30, 2023, with the Limited Review Report of the Auditors are enclosed
Further the Board allotted 11186 equity shares to the employees’ consequent upon exercise of their ESOPs, at an exercise price of Rs. 20/- as determined under the “ AVALON- Employee Stock Option Plan 2022 ” by the eligible employees.

In terms of the aforesaid allotment of equity shares, the paid-up capital of the Company stands increased from ₹13,09,72,700 comprising of 6,54,86,350 equity shares to ₹13,09,95,072 comprising of 6,54,97,536 equity shares of Rs. 2/- each.

You are requested to kindly take the above on records.

Yours sincerely,

For AVALON TECHNOLOGIES LIMITED

Digitally signed by RAJESH RAJESH V V Date: 2023.11.08 20:35:11 +05'30'

Name of the Person : Dr. V. Rajesh Designation : Company Secretary Membership Number: F9213 Date: November 08, 2023

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Varma & Varma

Chartered Accountants

Independent Auditor's Review Report on Review of Statement of Unaudited Standalone Financial Results.

To The Board of Directors of Avalon Technologies Limited

We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Avalon Technologies Limited (“the Company”) for the quarter and half year ended September 30, 2023 (“the Statement”), being submitted by the Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“Listing Regulations”).
This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India (ICAI). This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

New No.2 (Old No.20)|Second Canal Cross Road, Gandhi Nagar, Adyar, Chennai - 600020

Tel : +91 44 2442 3496, 2445 2239 Email: [email protected]

Varma & Varma

Chartered Accountants

Other Matter

Attention is invited to Note No.5 to the Statement. As stated therein, the Statement includes results for the quarter and half year ended September 30,2022 which have not been subject to an audit or review by us.

Our conclusion is not modified in respect of the above matter.

For Varma & Varma Chartered Accountants FRN. 004532S

Digitally signed by POONJAR POONJAR RAMA RAMA PRASANNA VARMA PRASANNA VARMA Date: 2023.11.08 19:49:53 +05'30'

Place : Hyderabad Date : 8[th] November, 2023

P. R. Prasanna Varma Partner M.No. 025854 UDIN: 23025854BGRHYY5904

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New No.2 (Old No.20)|Second Canal Cross Road, Gandhi Nagar, Adyar, Chennai - 600020 Tel : +91 44 2442 3496, 2445 2239 Email: [email protected]

Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479

Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

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(₹. In Millions)
For the Year
For the Quarter Ended For the Half Year Ended
Ended
S.No Particulars
30 Sep'23 30 Jun'23 30 Sep'22 30 Sep'23 30 Sep'22 31 Mar'23
Unaudited Unaudited (Refer Note 5) Unaudited (Refer Note 5) Audited
I Revenue from Operations 974.73 1,135.61 1,213.00 2,110.34 2,231.59 4,793.71
II Other Income 57.92 52.93 15.02 110.85 35.05 48.84
III Total Income (I+II) 1,032.65 1,188.54 1,228.02 2,221.19 2,266.64 4,842.55
IV Expenses:
Cost of raw materials consumed 757.06 834.58 956.26 1,591.64 1,758.74 3,683.19
Purchases of Stock-in-Trade - - - - - -
Changes in Inventories of finished goods, work-in-
(22.98) 6.68 (30.31) (16.30) (46.74) (131.86)
progress
Employee benefit expenses 112.87 113.49 112.24 226.36 210.28 416.50
Finance costs 3.20 16.94 53.41 20.14 90.85 176.43
Depreciation and amortisation expenses 13.61 12.77 12.24 26.38 22.31 48.70
Other expenses 67.01 62.98 63.66 129.99 122.90 265.26
Total Expenses 930.77 1,047.44 1,167.50 1,978.21 2,158.34 4,458.22
V Profit before tax (III-IV) 101.88 141.10 60.52 242.98 108.30 384.33
VI Tax Expense:
(1) Current Tax 22.32 33.13 14.66 55.45 26.59 95.95
(2) Tax of earlier years - - - - - -
(3) Deferred Tax 3.04 2.04 0.74 5.08 1.32 4.69
25.36 35.17 15.40 60.53 27.91 100.64
VII Profit for the period / year (V - VI) 76.52 105.93 45.12 182.45 80.39 283.69
VIII Other Comprehensive Income
A. i) Items that will not be reclassified to profit or loss
a) Remeasurements of the defined benefit
(1.40) (0.98) (0.99) (2.38) (1.98) (3.92)
plans - Gratuity
ii) Income tax expense on remeasurement 0.35 0.25 0.25 0.60 0.50 0.99
benefit/(loss) of defined benefit plans
Total other comprehensive income/ (loss) A (i+ii) (1.05) (0.73) (0.74) (1.78) (1.48) (2.93)
IX Total Comprehensive Income for the period / year 75.47 105.20 44.38 180.67 78.91 280.76
(VII+VIII)
X Paid up Equity share Capital 130.96 130.59 111.77 130.96 111.77 115.91
(Nominal Value Rs. 2 each)
XI Other Equity 6,454.03
XII Earnings Per Equity Share (not (not (not
(not annualised) (not annualised) (annualised)
(Nominal value per share ₹ 2/-) annualised) annualised) annualised)
(a) Basic (In ₹ ) 1.17 1.64 0.81 2.81 1.44 5.00
(b) Diluted (In ₹ ) 1.14 1.58 0.78 2.74 1.39 4.89
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KUNHAM Digitally signed by KUNHAMED BICHA ED BICHA Date: 2023.11.08 20:31:09 +05'30'

Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479 Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

Notes:

1. STATEMENT OF STANDALONE ASSETS AND LIABILITIES

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(₹. In Millions)
As at As at
S.No Particulars 30 September 2023 31 March 2023
Unaudited Audited
A. ASSETS
Non-Current Assets
(a) Property, plant and equipment 434.61 392.37
(b) Capital Work in Progress 94.16 121.89
(c) Right-of-Use assets 60.06 66.54
(d) Intangible Assets 2.48 2.01
(e) Financial Assets
(i) Investments 1,177.15 875.95
(ii) Other Financial Assets 623.76 156.44
(f) Deferred Tax Asset (Net) 3.00 7.46
(g) Other Non Current Assets 31.85 -
Total non-current assets 2,427.07 1,622.66
Current Assets
(a) Inventories 1,817.30 1,735.34
(b) Financial Assets
(i) Investments 1,138.48 -
(ii) Trade Receivables 1,664.48 1,319.67
(iii) Cash and Cash Equivalents 129.38 4,199.25
(iv) Bank balances other than (iii) above 14.76 3.37
(v) Other Financial Assets 30.00 30.00
(c) Other Current Assets 141.00 530.65
Total current assets 4,935.40 7,818.28
TOTAL ASSETS 7,362.47 9,440.94
B. EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital 130.96 115.91
(b) Other equity 6,448.12 6,454.03
Total equity 6,579.08 6,569.94
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings - 198.12
(ii) Lease Liabilities 45.99 48.94
(iii) Other Financial Liabilities - 0.24
(b) Provisions 73.50 66.26
Total non-current liabilities 119.49 313.56
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 3.08 1,020.80
(ii) Lease Liabilities 5.64 6.25
(iii) Trade Payables
a) Micro and small enterprises 5.37 7.09
b) Others 495.33 641.73
(iv) Other Financial Liabilities 32.21 847.74
(b) Other Current Liabilities 99.12 11.70
(c) Provisions 11.36 7.24
(d) Current tax Liabilities (Net) 11.79 14.89
Total current liabilities 663.90 2,557.44
Total Liabilities 783.39 2,871.00
TOTAL EQUITY AND LIABILITIES 7,362.47 9,440.94
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KUNHAME D BICHA

Digitally signed by KUNHAMED BICHA Date: 2023.11.08 20:31:35 +05'30'

Notes:

2. STATEMENT OF STANDALONE CASH FLOWS

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(₹. In Millions)
Half Year ended Half Year ended
S.No Particulars 30 September 2023 30 September 2022
Unaudited (Refer Note 5)
A Cash flows from operating activities
Profit before tax 242.98 108.30
Adjustments for :
Finance costs recognised in profit or loss 14.87 58.16
Interest Income recognised in profit or loss (30.91) (7.07)
-
Dividend Income recognised in profit or loss (5.12)
Income on sale of Investments (3.50) -
-
Gain on account of fair value changes in Investments (27.98)
Allowance for expected credit loss 0.02 0.63
Employee Share Based Payment 0.50 0.24
Depreciation and Amortisation 26.38 22.31
Provision for Gratuity 5.72 4.43
Provision for Leave Encashment 4.83 3.84
Amount no longer payable written back (1.64) (3.85)
Net foreign exchange (gain) / loss - Unrealised 6.78 13.14
232.93 200.13
Movements in working capital :
(Increase) / decrease in trade and other receivables (344.83) 28.41
(Increase) / decrease in inventories (81.96) (347.20)
(Increase) / decrease in other assets 221.43 104.88
Increase / (decrease) in trade payables (146.48) 113.23
Increase / (decrease) in provisions (1.57) (2.37)
Increase / (decrease) in other liabilities 85.73 30.29
Cash generated from operations (34.75) 127.37
Income Tax paid (58.55) (60.30)
Net cash (used in)/generated by operating activities (A) (93.30) 67.07
B Cash flow from investing activities
(Acquisition)/Proceeds from sale of property, plant and equipment (61.35) (147.28)
Interest received 30.91 7.07
Dividend income 5.12 -
-
Loans given during the period (470.37)
-
Investments made during the period (1,407.00)
Net cash used in investing activities (B) (1,902.69) (140.21)
C Cash flow from financing activities
Proceeds from issue of Equity Shares (ESOP) 3.70 -
Receipt of balance IPO proceeds (including share of selling shareholders) 4,633.72
-
Payment towards Selling shareholders (5,087.65)
-
Share issue expenses/ expenses towards offer for sale (379.68)
Proceeds from Non current Borrowings - 152.37
Repayment of Non-Current Borrowings (198.12) (17.54)
Proceeds/Repayment of Current Borrowings (1,017.72) 54.87
Repayment of Lease liability (6.43) (5.34)
Dividend paid on Preference Shares (2.93) (3.50)
Interest paid (17.26) (87.99)
Net cash (used in)/generated by financing activities (C) (2,072.37) 92.87
Net Increase/(Decrease) in cash and cash equivalents (A)+(B)+(C ) (4,068.36) 19.73
Cash and cash equivalents at the beginning of the period 4,199.25 52.91
Effects of exchange rate changes on the balance of cash and cash equivalents held
(1.51) 19.55
in foreign currencies
Cash and Cash equivalents at the end of the period 129.38 92.19
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KUNHAME Digitally signed by KUNHAMED BICHA D BICHA Date: 2023.11.08 20:32:03 +05'30'

(formerly known as Avalon Technologies Private Limited) CIN: U30007TN1999PLC043479

Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com

Notes to Statement of Unaudited Standalone financial results for the quarter and half year ended September 30, 2023

Notes:

3 The above unaudited standalone financial results for the quarter and half year ended September 30, 2023 have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) as prescribed under Section 133 of the Companies Act, 2013, which were reviewed and recommended by the Audit Committee and approved by the Board of Directors at its respective meetings held on November 08, 2023. The statutory auditors of the Company have carried out a limited review of the results for the quarter and half year ended September 30, 2023 and have issued an unmodified conclusion thereon.
4 The Company has completed the Initial Public Offering of 19,839,446 equity shares of face value of ₹2 each at an issue price of ₹436 per equity share, consisting of a fresh issue of 7,339,449 equity shares aggregating to ₹3,200 Million and an offer for sale of 12,499,997 equity shares aggregating to ₹5,450 Million. The equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) w.e.f April 18, 2023. The Company had also completed two pre-IPO placements during the previous year aggregating to ₹1,600 Million, consisting of ₹800 million of primary issuance and ₹800 million of secondary share sales. The first pre-IPO issue consisted of 798,339 Equity shares of ₹2 each at ₹375.78 per share and the second pre-IPO issue consisted of 1,173,543 Equity shares of ₹2 each at ₹426.06 per share.
5 The results for the quarter and half year ended September 30, 2022, have not been subject to an audit or review by the Statutory Auditors. However, the management has exercised necessary diligence to ensure that the financial results for these periods provide a true and fair view of the Company's affairs.
6 The expenditure incurred by the Company in connection with the IPO is estimated at ₹ 577.29 Million (including GST). These expenses have been allocated between the Company and selling shareholders in proportion to the total proceeds raised and also considering the nature of expenditure incurred. The Company's share of expenses of ₹ 176.96 Million has been adjusted against Securities Premium. Upon actualisation of the final IPO expense, the difference, if any, between the estimate and the actual expense will be adjusted against the securities premium account in the period in which such actualisation takes place.
7 The Company has received an amount of ₹ 2,984.25 Million (net of estimated IPO expenses) from proceeds out of fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below:

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(₹ In Millions)
Utilisation upto Unutilised amount as
Amount as per
Objects of the issue as stated in the prospectus September 30, on September 30, 2023
prospectus (A)
2023 (B) (A-B)
Prepayment or repayment of all or a portion of certain outstanding
borrowings availed by our Company and one of our Material Subsidiaries, 1,450.00 1,449.66 0.34
Avalon Technology and Services Pvt Limited [Refer (b) below]
Funding the working capital requirements of our Company 900.00 900.00 -
General corporate purposes [Refer (a) & (b) below] 644.00 634.59 9.41
Total 2,994.00 2,984.25 9.75
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(a) As disclosed in the Prospectus, amount to be spent for General Corporate Purposes is ₹ 644.00 Million which is arrived at as ₹ 850.00 Million less estimated issue expenses of ₹ 206.00 Million. The same is subject to any changes that may arise on actualisation of the final IPO expense.

(b) The company has infused ₹ 770.39 million (including ₹ 711.39 million out of IPO proceeds) in one of its material subsidiaries, Avalon Technology and Services Private Limited, consisting of ₹ 300.02 Million as equity investment and ₹ 470.37 Million as unsecured loan.

8 The Company operates in only one reportable business segment i.e. providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc., as determined by the chief operating decision maker, in accordance with Ind AS 108 “Operating Segments”.
9 Number of employee stock options granted is 17,79,750 and outstanding as at September 30, 2023 is 15,50,513. During the quarter ended September 30,2023, the company has allotted 1,85,362 Equity shares upon exercise of Employee stock options by the eligible employees.
10 The previous period figures have been re-grouped wherever necessary to conform to current period's presentation.

For Avalon Technologies Limited

KUNHAMED BICHA Digitally signed by KUNHAMED BICHA DN: c=IN, o=AVALON TECHNOLOGIES PRIVATE LIMITED, ou=DIRECTOR, pseudonym=02d3f4f7e3f77f6e83dae2e63b88e65ffe165695e6c61e0ccf1a20bdb5e123ed, 2.5.4.20=abb0688b30bc016601eeb7fe04c7d259ce3686e22211d220a48c389a2d30316a, postalCode=600045, st=TAMIL NADU, serialNumber=2a1f9b2a71ccb9cafca7293ff39cae6dc98aeb01bf45b18efee7665c09eac7d2, cn=KUNHAMED BICHA Date: 2023.11.08 19:45:10 +05'30'

Chennai

Dated : November 08, 2023

Kunhamed Bicha Chairman & Managing Director

Varma & Varma

Chartered Accountants

Independent Auditor's Review Report on Review of Statement of Unaudited Consolidated Financial Results.

To The Board of Directors of Avalon Technologies Limited

We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Avalon Technologies Limited (hereinafter referred to as the "Holding Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group") for the quarter and half year ended September 30, 2023 (“the Statement”), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India (ICAI). This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of the Holding Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.

New No.2 (Old No.20)|Second Canal Cross Road, Gandhi Nagar, Adyar, Chennai - 600020

Tel : +91 44 2442 3496, 2445 2239 Email: [email protected]

Varma & Varma

Chartered Accountants

The Statement includes the financial results of the following entities.

Avalon Technologies Limited, India	Holding Company
Avalon Technology and Services Private Limited, India	Subsidiary
Sienna Ecad Technologies Private Limited, India
ABV Electronics Inc (D/B/A Sienna Corporation), United States of America

Based on our review conducted as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6(b), nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Other Matters

(a) Attention is invited to Note No.6 to the Statement. As stated therein, the Statement includes the results for the quarter and half year ended September 30,2022 which have not been subject to an audit or review by us.
(b) The interim financial information in respect of the subsidiary of the Company incorporated in the United States of America (whose Special Purpose Statement of Unaudited Standalone Financial Results reflects total income of Rs.1051.37 million for the quarter ended September 30, 2023, net profit/(loss) after tax of Rs. (75.09) million for the quarter ended September 30, 2023 and total comprehensive income/(loss) of Rs.(87.12) million for the quarter ended September 30, 2023 respectively and total income of Rs.2337.82 million for the half year ended September 30, 2023, net profit/(loss) after tax of Rs. (138.42) million for the half year ended September 30, 2023 and total comprehensive income/(loss) of Rs.(149.75) million for the half year ended September 30, 2023 respectively) included in the Statement are based on the Special Purpose Statement of Unaudited Standalone Ind AS Financial Results of the said subsidiary prepared by the management based on the financial statements prepared in accordance with the US GAAP reviewed by the said subsidiary’s auditor which have been restated by the Company to comply with Ind AS. The review report of the other auditor on the financial statements of the subsidiary prepared in accordance with the US GAAP for the quarter and half year ended September 30, 2023, expressed an unmodified conclusion on those financial statements. Adjustments to the said financial information of the subsidiary for the differences in accounting principles adopted by the Company in accordance with Ind AS have been reviewed by us as stated in our report on the Special Purpose Statement of Unaudited Standalone Ind AS Financial Results of the said subsidiary for the quarter and half year ended September 30, 2023. Our conclusion, insofar as it relates to the amounts included in respect of such subsidiary (other than the adjustments arising on restatement to Ind AS that have been reviewed by us) is based solely

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New No.2 (Old No.20)|Second Canal Cross Road, Gandhi Nagar, Adyar, Chennai - 600020

Tel : +91 44 2442 3496, 2445 2239 Email: [email protected]

Varma & Varma

Chartered Accountants

on the review report of the other auditor and the procedures performed by us as stated in paragraph 3 above.

Our conclusion is not modified in respect of the above matters.

For Varma & Varma Chartered Accountants FRN. 004532S POONJAR RAMA Digitally signed by POONJAR RAMA PRASANNA PRASANNA VARMA Date: 2023.11.08 19:52:10 VARMA +05'30'

Place : Hyderabad Date : 8[th] November, 2023

P. R. Prasanna Varma Partner M.No. 025854 UDIN: 23025854BGRHYZ8766

Page 3 of 3

New No.2 (Old No.20)|Second Canal Cross Road, Gandhi Nagar, Adyar, Chennai - 600020 Tel : +91 44 2442 3496, 2445 2239 Email: [email protected]

Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479

Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

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(₹. In Millions)
For the Year
For the Quarter Ended For the Half Year Ended
Ended
S.No Particulars
30 Sep'23 30 Jun'23 30 Sep'22 30 Sep'23 30 Sep'22 31 Mar'23
Unaudited Unaudited (Refer Note 6) Unaudited (Refer Note 6) Audited
I Revenue from Operations 2,009.93 2,350.92 2,446.91 4,360.85 4,407.00 9,447.19
II Other Income 47.43 51.19 64.08 98.62 134.27 143.50
III Total Income (I+II) 2,057.36 2,402.11 2,510.99 4,459.47 4,541.27 9,590.69
IV Expenses:
Cost of raw materials consumed 1,253.63 1,608.02 1,636.67 2,861.65 2,858.04 6,117.68
Purchases of Stock-in-Trade - - - - - -
Changes in Inventories of finished goods, work-in-progress
and stock in trade 8.50 (60.63) (57.81) (52.13) (58.44) (171.14)
Employee benefit expenses 455.43 482.30 434.97 937.73 817.49 1,713.61
Finance costs 32.46 56.00 100.06 88.46 175.23 347.92
Depreciation and amortisation expenses 55.15 52.73 48.71 107.88 94.28 196.55
Other expenses 166.32 159.11 147.19 325.43 308.73 659.14
Total Expenses 1,971.49 2,297.53 2,309.79 4,269.02 4,195.33 8,863.76
V Profit before tax (III-IV) 85.87 104.58 201.20 190.45 345.94 726.93
VI Tax Expense:
(1) Current Tax 44.67 44.55 30.03 89.22 56.66 160.30
(2) Tax of earlier years - - - - - -
(3) Deferred Tax (31.59) (10.67) 23.44 (42.26) 48.60 41.60
13.08 33.88 53.47 46.96 105.26 201.90
VII Profit for the period / year (V - VI) 72.79 70.70 147.73 143.49 240.68 525.03
VIII Other Comprehensive Income
A. i) Items that will not be reclassified to profit or loss
a) Remeasurements of the defined benefit plans - 1.38 (1.69) (1.71) (0.31) (3.42) (6.80)
Gratuity
ii) Income tax expense on remeasurement benefit/(loss) of
(0.46) 0.44 0.45 (0.02) 0.90 1.81
defined benefit plans
B. i) Items that may be reclassified to profit or loss
a) Exchange differences on translating the financial (12.03) 0.70 (28.49) (11.33) (63.88) (72.03)
statements of foreign operations
Total other comprehensive loss A (i+ii) + B (i) (11.11) (0.55) (29.75) (11.66) (66.40) (77.02)
IX Total Comprehensive Income for the period / year 61.68 70.15 117.98 131.83 174.28 448.01
X Profit for the period / year
Attributable to:
Equity holders of the parent 72.79 70.70 147.73 143.49 240.68 525.03
Non-controlling interests - - - - - -
XI Other comprehensive income/(loss) for the period / year
Attributable to:
Equity holders of the parent (11.11) (0.55) (29.75) (11.66) (66.40) (77.02)
Non-controlling interests - - - - - -
XII Total comprehensive income for the period / year
Attributable to:
Equity holders of the parent 61.68 70.15 117.98 131.83 174.28 448.01
Non-controlling interests - - - - - -
XIII Paid up Equity Share Capital (Nominal Value of Rs. 2 130.96 130.59 111.77 130.96 111.77 115.91
each)
XIV Other Equity 5,254.28
XV Earnings Per Equity Share
(not annualised) (not annualised) (not annualised) (not annualised) (not annualised) (annualised)
(Nominal value per share ₹ 2/-)
(a) Basic (In ₹ ) 1.11 1.10 2.64 2.21 4.30 9.27
(b) Diluted (In ₹ ) 1.09 1.06 2.56 2.16 4.17 9.08
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KUNHAME Digitally signed by KUNHAMED BICHA D BICHA Date: 2023.11.08 20:32:26 +05'30'

Notes:

1. STATEMENT OF CONSOLIDATED ASSETS AND LIABILITIES

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(₹. In Millions)
As at As at
S.No Particulars September 30, 2023 March 31, 2023
Unaudited Audited
A. ASSETS
Non-Current Assets
(a) Property, plant and equipment 966.37 908.72
(b) Capital Work in Progress 121.88 152.78
(c) Right-of-Use assets 311.42 342.16
(d) Intangible Assets 23.02 24.46
(e) Financial Assets
(i) Other financial assets 50.72 53.18
(f) Deferred Tax Asset (Net) 174.94 130.34
(g) Tax assets (Net) 24.03 23.25
(h) Other Non Current Assets 34.19 31.66
Total non-current assets 1,706.57 1,666.55
Current Assets
(a) Inventories 3,224.58 3,178.99
(b) Financial Assets
(i) Investments 1,138.48 -
(ii) Trade Receivables 1,663.08 2,062.01
(iii) Cash and Cash Equivalents 178.73 4,219.03
(iv) Bank Balances other than (iii) above 14.85 3.45
(v) Other Financial Assets 39.04 37.66
(c) Other Current Assets 275.18 635.46
Total current assets 6,533.94 10,136.60
TOTAL ASSETS 8,240.51 11,803.15
B. EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital 130.96 115.91
(b) Other Equity 5,199.50 5,254.28
Total equity 5,330.46 5,370.19
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 411.16 655.95
(ii) Lease Liabilities 276.26 292.07
(iii) Other Financial Liabilities 13.88 9.88
(b) Provisions 131.94 114.12
(c) Deferred Tax Liabilities (Net) 0.79 -
Total non-current liabilities 834.03 1,072.02
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 607.44 2,406.70
(ii) Lease Liabilities 61.08 65.01
(iii) Trade Payables
(a) Micro and small enterprises 6.85 16.61
(b) Others 885.30 1,401.12
(iv) Other Financial Liabilities 58.10 907.85
(b) Other Current Liabilities 426.43 528.53
(c) Provisions 19.03 15.71
(d) Current tax Liabilities (Net) 11.79 19.41
Total current liabilities 2,076.02 5,360.94
Total Liabilities 2,910.05 6,432.96
TOTAL EQUITY AND LIABILITIES 8,240.51 11,803.15
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KUNHAM Digitally signed by KUNHAMED BICHA ED BICHA Date: 2023.11.08 20:32:46 +05'30'

Notes:

2. CONSOLIDATED STATEMENT OF CASH FLOWS

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(₹. In Millions)
Half Year ended Half Year ended
S.No Particulars September 30, 2023 September 30, 2022
Unaudited (Refer Note 6)
A Cash flows from operating activities
Profit before tax 190.45 345.93
Adjustments for :
Finance costs recognised in profit or loss 61.29 107.70
Interest Income recognised in profit or loss (6.12) (1.34)
Income on sale of Investments (3.50) -
-
Gain on account of fair value changes in investments (27.98)
(Gain) / Loss on disposal of property, plant and equipment (0.01) (0.33)
Allowance for Expected Credit Loss 3.94 8.00
Depreciation and Amortisation 107.88 94.29
Provision for Gratuity 12.45 9.64
Provision for Leave Encashment 9.42 7.42
Preference Dividend 19.21 25.47
Amounts no longer payable written back (2.67) (6.58)
Employee Share based Payment 1.70 0.85
Net foreign exchange (gain) / loss - Unrealised 7.48 20.43
373.54 611.48
Movements in working capital :
(Increase) / decrease in trade and other receivables 401.20 (141.82)
(Increase) / decrease in inventories (38.35) (407.49)
(Increase) / decrease in other assets 191.12 100.38
Increase / (decrease) in trade payables (535.80) 237.26
Increase / (decrease) in provisions (1.04) (2.85)
Increase / (decrease) in other liabilities (109.74) (29.29)
Cash generated from operations 280.93 367.67
Income Tax paid (97.64) (92.53)
Net cash generated by operating activities (A) 183.29 275.14
B Cash flow from investing activities
(Acquisition)/ Proceeds from Sale of Property, Plant & Equipment (116.14) (205.71)
Interest received 5.95 1.18
Investment in Mutual Funds (1,107.00) -
Net cash used in investing activities (B) (1,217.19) (204.53)
C Cash flow from financing activities
Proceeds from issue of Equity Shares (ESOP) 3.70 -
Receipt of balance IPO proceeds (including share of selling 4,633.72 -
shareholders)
-
Payment towards Selling Shareholders (5,087.65)
-
Share issue expenses / expenses towards offer for sale (379.68)
Dividends paid on preference shares (22.14) (28.97)
Proceeds from Non-Current borrowings - 168.37
Repayment of Non-Current borrowings (530.45) (112.12)
Proceeds from / (Repayment) of Current borrowings (1,524.59) 128.53
Repayment of Lease liability (45.18) (40.82)
Interest paid (52.68) (133.15)
Net cash used in financing activities (C) (3,004.95) (18.16)
Add: Effects of exchange differences on restatement of foreign
(1.45) 17.86
currency cash and cash equivalents (D)
Net Increase/(Decrease) in cash and cash equivalents
(4,040.30) 70.31
(A)+(B)+(C)+(D)
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period 4,219.03 77.59
Cash and Cash equivalents at the end of the period 178.73 147.90
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Digitally signed by KUNHAMED BICHA Date: 2023.11.08 20:33:04 +05'30'

KUNHAME D BICHA

Avalon Technologies Limited

(formerly known as Avalon Technologies Private Limited) CIN: U30007TN1999PLC043479 Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com

Notes to Statement of Unaudited Consolidated financial results for the quarter and half year ended September 30, 2023

Notes:

3 The above unaudited consolidated financial results for the quarter and half year ended September 30, 2023 have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) as prescribed under Section 133 of the Companies Act, 2013, which were reviewed and recommended by the Audit Committee and approved by the Board of Directors at its respective meetings held on November 08, 2023. The statutory auditors of the Company have carried out a limited review of results for the quarter and half year ended September 30, 2023 and have issued an unmodified conclusion thereon.
4 The Consolidated Financial Results of the Company and its subsidiaries (the Company and its subsidiaries collectively referred to as 'the Group') includes results of the following entities.

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Name of the Entity Relationship
Avalon Technologies Limited Holding Company
Avalon Technology and Services Private Limited, India
Sienna Ecad Technologies Private Limited, India Subsidiary
ABV Electronics, Inc. (D/B/A Sienna Corporation), United States of America
----- End of picture text -----

5 The Company has completed the Initial Public Offering of 19,839,446 equity shares of face value of ₹2 each at an issue price of ₹436 per equity share, consisting of a fresh issue of 7,339,449 equity shares aggregating to ₹3,200 Million and an offer for sale of 12,499,997 equity shares aggregating to ₹5,450 Million. The equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) w.e.f April 18, 2023. The Company had also completed two pre-IPO placements during the previous year aggregating to ₹1,600 Million, consisting of ₹800 million of primary issuance and ₹800 million of secondary share sales. The first pre-IPO issue consisted of 798,339 Equity shares of ₹2 each at ₹375.78 per share and the second pre-IPO issue consisted of 1,173,543 Equity shares of ₹2 each at ₹426.06 per share.
6 The Consolidated results for quarter and half year ended September 30, 2022, have not been subject to an audit or review by the Statutory Auditors. However, the management has exercised necessary diligence to ensure that the financial results for these periods provide a true and fair view of the Company's affairs.
7 The expenditure incurred by the Company in connection with the IPO is estimated at ₹ 577.29 Million (including GST). These expenses have been allocated between the Company and selling shareholders in proportion to the total proceeds raised and also considering the nature of expenditure incurred. The Company's share of expenses ₹ 176.96 Million has been adjusted against Securities Premium. Upon actualisation of the final IPO expense, the difference, if any, between the estimate and the actual expense will be adjusted against the securities premium account in the period in which such actualisation takes place.

KUNHAM Digitally signed by KUNHAMED BICHA ED BICHA Date: 2023.11.08 20:33:26 +05'30'

Avalon Technologies Limited

(formerly known as Avalon Technologies Private Limited) CIN: U30007TN1999PLC043479

Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com

Notes to Statement of Unaudited Consolidated financial results for the

quarter and half year ended September 30, 2023

8 The Company has received an amount of ₹ 2,984.25 Million (net of estimated IPO expenses) from proceeds out of fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below:

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(₹ In Millions)
Amount as per Unutilised amount as on
Utilisation upto
Objects of the issue as stated in the prospectus prospectus September 30, 2023
September 30, 2023 (B)
(A) (A-B)
Prepayment or repayment of all or a portion of certain outstanding borrowings
availed by our Company and one of our Material Subsidiaries, Avalon Technology 1,450.00 1,449.66 0.34
and Services Pvt Limited [Refer (b) below]
Funding the working capital requirements of our Company 900.00 900.00 -
General corporate purposes [Refer (a) & (b) below] 644.00 634.59 9.41
Total 2,994.00 2,984.25 9.75
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9 The Group operates in only one reportable business segment i.e. providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc., as determined by the chief operating decision maker, in accordance with Ind AS 108 “Operating Segments”.
10 Number of employee stock options granted is 17,79,750 and outstanding as at September 30, 2023 is 15,50,513. During the quarter ended September 30,2023, the company has allotted 1,85,362 Equity shares upon exercise of Employee stock options by the eligible employees.
11 The previous period figures have been re-grouped wherever necessary to conform to current period's presentation.

For Avalon Technologies Limited

Chennai

Dated : November 08, 2023

Kunhamed Bicha Chairman & Managing Director

AI assistant

Avalon Technologies Limited — Interim / Quarterly Report 2024

59680_rns_2023-11-08_6ac1f222-bd64-4589-b8f8-a5799ce9b073.pdf

Sirs,

Sub: -

Outcome of Board Meeting under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.

For AVALON TECHNOLOGIES LIMITED

Varma & Varma

Independent Auditor's Review Report on Review of Statement of Unaudited Standalone Financial Results.

Varma & Varma

Other Matter

Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479

Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

Notes:

1. STATEMENT OF STANDALONE ASSETS AND LIABILITIES

Notes:

2. STATEMENT OF STANDALONE CASH FLOWS

Avalon Technologies Limited

(formerly known as Avalon Technologies Private Limited) CIN: U30007TN1999PLC043479

Notes to Statement of Unaudited Standalone financial results for the quarter and half year ended September 30, 2023

Notes:

Chennai

Varma & Varma

Independent Auditor's Review Report on Review of Statement of Unaudited Consolidated Financial Results.

Varma & Varma

Chartered Accountants

Other Matters

Varma & Varma

Chartered Accountants

Page 3 of 3

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

Notes:

1. STATEMENT OF CONSOLIDATED ASSETS AND LIABILITIES

Notes:

2. CONSOLIDATED STATEMENT OF CASH FLOWS

Notes to Statement of Unaudited Consolidated financial results for the quarter and half year ended September 30, 2023

Notes:

(formerly known as Avalon Technologies Private Limited) CIN: U30007TN1999PLC043479

Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com

Notes to Statement of Unaudited Consolidated financial results for the

quarter and half year ended September 30, 2023

For Avalon Technologies Limited

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