CREATIVE NEWTECH LIMITED — Interim / Quarterly Report 2024

Feb 14, 2024

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Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Limited)

CIN - L52392MH2004PLC148754

Date: 14[th] February 2024

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

Sub: Creative Newtech Limited announces the unaudited consolidated financial results for Q3 & 9MFY24

Dear Sir,

Please find attached Media Release regarding announcement of unaudited consolidated financial results for Q3 & 9MFY24.

Thanking you, Yours Faithfully

For Creative Newtech Limited

Digitally signed by TEJAS NIRANJANBHAI DOSHI DN: c=IN, o=PERSONAL, title=7704, pseudonym=2fce03b0664c41e4b41d511b3eb29f26, 2.5.4.20=f171fb20112289ebe83cd73134ca2426c53ca3 c7d9e4d7ea4f19b468a40f0286, postalCode=401101, st=Maharashtra, serialNumber=ce415067c4d1da3010f3c89b39aa43a94 1e0d91cf2a7a4c4981e1ff391dcb933, cn=TEJAS NIRANJANBHAI DOSHI Date: 2024.02.14 15:05:01 +05'30'

TEJAS NIRANJANBHAI DOSHI

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Tejas Doshi Chief Compliance Officer and Company Secretary ACS – 30828

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Date: 14[th] February 2024 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

Q3 FY24 Total Income at Rs. 516.31 Cr. – YoY Growth of 20.36% driven by products from Samsung, Viewsonic, Cooler Master and Honeywell

Q3 FY24 EBIDTA at Rs. 16.27 Cr., YoY growth of 28.23%, on the back of higher sales

Q3 FY24 PAT at Rs. 11.55 Cr, YoY growth of 50.16%

Mumbai, 13[th] February 2024: 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 third quarter and nine months ended December 31[st] , 2023.

Key Consolidated Financials:

Particulars(Rs. Cr.)	Q3 FY24	Q3 FY23	YoY%	9M FY24	9M FY23	YoY%
Total Income	516.31	428.97	20.36%	1420.47	999.28	42.15%
EBIDTA (Incl. Other Income)	16.27	12.69	28.23%	41.17	33.62	22.44 %
EBITDA Margin	3.15 %	2.96 %	19 bps	2.90 %	3.36%	(46 bps)
PAT	11.55	7.69	50.16 %	27.89	20.80	34.11 %
PAT Margin	2.24 %	1.79%	45 bps	1.96 %	2.08%	(12 bps)

Performance Highlights for the quarter ended December 31[st] , 2023:

• Total Income for the quarter was Rs. 516.31 crore in Q3 FY24, a YoY increase of 20.36% . Strong performance in EB segment was complemented by high demand for brands such as Samsung, Cooler Master, Viewsonic and Honeywell.

• EBITDA was at Rs. 16.27 crore in Q3 FY24, YoY increase of 28.23% . EBITDA Margin was at 3.15% in Q3 FY24, up by 19 bps . Higher contribution from Honeywell and other operational efficiencies helped improve margin.

• PAT was Rs. 11.55 crore in Q3 FY24 compared to Rs. 7.69 crore in Q3 FY23, while PAT Margin stood at 2.24% , higher by 45 bps

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 Nine months ended December 31[st] , 2023:

• Total Income for nine months was Rs. 1420.47 crore in 9M FY24, a YoY increase of 42.15% . Continued growth in EB segment was supported by demand for brands like Samsung, Cooler Master, Viewsonic and Honeywell.

• EBITDA was at Rs. 41.17 crore for 9M FY24, YoY increase of 22.44% . EBITDA Margin was at 2.90% for 9M FY24. A change in the product mix offset the impact of operational efficiencies, thereby having a bearing on margins.

• PAT was Rs. 27.89 crore in 9M FY24 compared to Rs. 20.80 crore in 9M FY23, while PAT Margin stood at 1.96%

Recent Key Developments:

• Creative signed a brand licensing agreement with Cyberpower Inc. for their brand CyberpowerPC. Under this, the Company would offer a wide range of gaming computers and accessories under the CyberpowerPC brand.

• The Company entered into an agreement with Palred Electronics to distribute their pTron branded range of products in India covering smart wearables, audio and other mobile accessories

• Creative, through its subsidiary, tied up with PT Bintang Mas Rezeki Nusantara, a leading technology products distributor, to bring its range of Honeywell licensed products to Indonesia

Management Comment:

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

“Performance in the third quarter of this fiscal year was in line with expectations. Our growth trajectory has continued through this period, despite uncertainties in the global markets on a macro-level. We are seeing steady demand for several products which contributed to growth. Our brand selection strategies and niche portfolio help us stay a step ahead in the industry.

In the quarter ended December 2023, our consolidated total income grew 20.36% YoY to Rs. 516.31 cr. EBITDA and PAT increased 28.23% and 50.16% YoY to Rs. 16.27 cr and Rs. 11.55 cr, respectively. Growth came in from demand for products from Samsung, Honeywell, Cooler Master and View Sonic, among others. Higher contribution from Honeywell helped improve profit margins.

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

We remain very selective in terms of building our brand portfolio to leverage our networks for brands which have high scope for growth. Our EB segment continued to perform well this quarter as well, with revenue growing substantially.

During the quarter, we added pTron, a domestic brand under Palred Electronics, to our portfolio. This is a high volume product line covering a range of mobile accessories like Bluetooth audio, power banks, smart wearables etc.

Moreover, in a major milestone, we tied up with US-based Cyberpower Inc. under a brand licensing agreement for their CyberpowerPC brand. CyberpowerPC is a globally renowned name for high performance gaming computers and accessories. We are excited about this new tie up to bring their products to the Indian markets where there is already a high demand for e-sports products. CyberpowerPC joins Honeywell in our brand licensing portfolio and should help further boost profitability.

We have entered the last quarter of this fiscal on a positive note. 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 Limited (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

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

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 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

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

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 forwardlooking 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