CREATIVE NEWTECH LIMITED — Earnings Release 2023

Nov 6, 2023

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Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited)

CIN - L52392MH2004PLC148754

Date: 6[th] November 2023

To, The Manager Listing Department National Securities Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051

Sub: Creative Newtech Ltd. (formerly known as Creative Peripherals and Distribution Ltd.) announces the unaudited Consolidated financial results for Q2 & H1FY24

Dear Sir,

Please find attached Media Release regarding announcement of unaudited consolidated financial results for Q2 & H1FY24.

Thanking you, Yours Faithfully

For Creative Newtech Limited

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Digitally signed by TEJAS NIRANJANBHAI DOSHI DN: c=IN, o=PERSONAL, title=7704, TEJAS NIRANJANBHAI pseudonym=2fce03b0664c41e4b41d511b3eb29f26, 2.5.4.20=f171fb20112289ebe83cd73134ca2426c53ca3c7d9e4d 7ea4f19b468a40f0286, postalCode=401101, st=Maharashtra, DOSHI serialNumber=ce415067c4d1da3010f3c89b39aa43a941e0d91 cf2a7a4c4981e1ff391dcb933, cn=TEJAS NIRANJANBHAI DOSHI Date: 2023.11.06 16:26:52 +05'30'

Tejas Doshi Chief Compliance Officer and Company Secretary ACS – 30828

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Date: 6[th] November 2023 Place: Mumbai

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

CIN - L52392MH2004PLC148754

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Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited)

Media Release – Consolidated

Q2 FY24 Total Income at Rs. 432.81 Cr. – YoY Growth of 32.65% driven by demand for products from Samsung, Viewsonic, Cooler Master and Honeywell

Q2 FY24 EBIDTA at Rs. 14.99 Cr., YoY growth of 12.90% mainly driven by higher sales

Q2 FY24 PAT at Rs. 10.46 Cr, YoY growth of 14.98%

Mumbai, 6[th] November 2023: Creative Newtech Limited (NSE: CREATIVE), market specialists for experiential products in IT, Imaging, Lifestyle, and Security domains with a pan-India presence, announced its unaudited Consolidated financial results for the quarter and half year ended September 30[th] , 2023.

Key Consolidated Financials:

Particulars(Rs. Cr.)	Q2 FY24	Q2 FY23	YoY%	H1 FY24	H1 FY23	YoY%
Total Income	432.81	326.27	32.65%	904.15	570.31	58.54 %
EBIDTA (Incl. Other Income)	14.99	13.27	12.90 %	24.89	20.93	18.93 %
EBITDA Margin	3.46 %	4.07%	(61)bps	2.75 %	3.67%	(92)bps
PAT	10.46	9.10	14.98 %	16.34	13.13	24.50 %
PAT Margin	2.42 %	2.79%	(37)bps	1.81 %	2.30%	(49)bps

Performance Highlights for the quarter ended September 30[th] , 2023:

• Total Income for the quarter was Rs. 432.81 crore in Q2 FY24, a YoY increase of 32.65% . Improvement in EB segment was supported by strong demand for brands such as Samsung, Cooler Master, Viewsonic and Honeywell.

• EBITDA was at Rs. 14.99 crore in Q2 FY24, YoY increase of 12.90% . EBITDA Margin was at 3.46% in Q2 FY24. Change in the product mix offset the impact of operational efficiencies, leading to contraction of margins.

• PAT was Rs. 10.46 crore in Q2 FY24 compared to Rs. 9.10 crore in Q2 FY23, while PAT Margin stood at 2.42%

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

(Formerly known as Creative Peripherals and Distribution Limited)

CIN - L52392MH2004PLC148754

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Creative Newtech Limited

Performance Highlights for Half year ended September 30[th] , 2023:

• Total Income for the half year was Rs. 904.15 crore in H1 FY24, a YoY increase of 58.54% . Improvement in EB segment was supported by strong demand for brands such as Samsung, Cooler Master, Viewsonic and Honeywell.

• EBITDA was at Rs. 24.89 crore in H1 FY24, YoY increase of 18.93% . EBITDA Margin was at 2.75% in H1 FY24. Change in the product mix offset the impact of operational efficiencies, leading to contraction of margins.

• PAT was Rs. 16.34 crore in H1 FY24 compared to Rs. 13.13 crore in H1 FY23, while PAT Margin stood at 1.81%

Recent Key Developments:

• Creative signed agreement with Ruark – UK-based premium audio brand, to distribute their products in India

• Company raised funds through issue of Equity Shares and warrants on preferential basis to members of the non-promoter group, including some employees of the Company

Management Comment:

Commenting on the performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech Limited said:

“I am glad to say that we have continued our growth momentum into the second quarter of this fiscal year. While global markets continue to recover from macro-economic volatility and geo-political tensions, demand for several products has continued to grow. The shift towards digital technologies continues to drive demand. Our agile business model, selective strategies and niche portfolio help us remain at the forefront of our industry.

In the quarter ended September 2023, our consolidated total income grew 32.65% YoY to Rs. 432.81 cr. EBITDA and PAT increased 12.90% and 14.98% YoY to Rs. 14.99 cr and Rs. 10.46 cr, respectively. This growth was mainly driven by demand for products from brands like Samsung, Honeywell, Cooler Master and View Sonic, among others. A change in the product mix had a bearing on the margins.

We are selectively focusing on key niche brands where we see scope for growth while leveraging our widespread network. Our EB segment performed well this quarter as well, with revenue growing substantially. During the quarter, we added Ruark, a UK-based premium audio entertainment brand. We shall bring their range of products to the Indian market,

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

(Formerly known as Creative Peripherals and Distribution Limited)

CIN - L52392MH2004PLC148754

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Creative Newtech Limited

where there substantial scope for growth, especially among the music enthusiasts and professionals.

We are also increasing our focus on our Honeywell portfolio which is really picking up pace. Overall, we have entered the third quarter with an optimistic outlook. Our focus remains on keeping a lean business model and ensuring long-term, sustainable growth for all stakeholders.

I would like to thank the entire team for their dedication, which drives the Company forward.”

Company Overview

Established in 1992, Creative Newtech Ltd (formerly known as Creative Peripherals and Distribution Ltd) is a well-established company in India’s Information and Communication Technology distribution market. Through a robust network of partners and distribution channels, the Company has made a strong foothold in the IT distribution market in the country. The Company has an omni-channel network across all three channels of online, offline and retail trade.

Creative Newtech specializes in market entry and penetration for global brands. The Company offers demographic intelligence, and enables the formulation and execution of marketing strategies for its clients. In addition to such services, Creative continues to focus on timely delivery, diversification of its product portfolio, sustained long-term relationships with its channel partners, and extending value-added services over and above distribution.

These efforts have enabled the Company to win long running contracts as well as garner accolades in the Industry as amongst the best distributors in India by leading brands. Creative is associated with over 20 renowned brands globally. These brands encompass a wide range of applications and help the Company to cater to a broad array of customers, both in the consumer and industrial businesses. Moreover, the Company is well-positioned to leverage the changing trends in the technology industry and be a part of the paradigm shift towards digitization in India.

Creative has a unique value-added business model. They provide end-to-end solutions, from market research and competition analysis for brands, to import, distribution, sales and servicing for the brand. Additionally, the Company suggests and executes marketing strategies and recommends viability in specific regions across India for their clients. This is enabled by specialized skill sets, local insights and experience, along with relevant

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com

(Formerly known as Creative Peripherals and Distribution Limited)

CIN - L52392MH2004PLC148754

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Creative Newtech Limited

market intelligence. Creative also prepares strategic plans for market entry for foreign brands and their target category.

Furthermore, the Company conducts pre-sales and marketing activities for the success of the brand as well as to enable the channel partners to leverage their expertise and bottom line. Creative works closely with partners across channels including Large Format Retail (LFR), e-commerce and specialized retailers. The Company is one of the few large distributors who conduct specialized training modules, events and promotional activities at the ground level with channel partners. They also conduct workshops and demos for resellers. This is possible due to the dedication and experience of the corporate and sales teams which constantly track latest market developments to build a closer market connect.

The Company’s wide reach and superior logistics capabilities helps it provide end-to-end services including warranty and post-warranty, high-level repair services, and response centres, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative as exclusive partners and have been with the Company since over five years. The Company focuses on higher operational efficiencies and adding higher-margin and value-added products to its existing product portfolio and such brand associations are a concrete step in that direction.

For more details please visit: www.creativenewtech.com

For further information please contact:

Creative Newtech Limited AdFactors PR Mr. Tejas Doshi Investor Relations Chief Compliance Officer & Company Secretary cs@creativenewtech.com Ms. Savli Mangle savli.mangle@adfactorspr.com Mr. Abhijit Kanvinde Chief Financial Officer Mr. Rahul Trivedi abhijit@creativenewtech.com rahul.trivedi@adfactorspr.com

Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Registered Office: 3[rd] & 4[th] floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: cs@creativenewtech.com | Website: www.creativenewtech.com