Diffusion Engineers Limited — Earnings Release 2025

Feb 8, 2025

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Date: February 08, 2025

To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 NSE Symbol: DIFFNKG BSE Scrip Code - 544264

Dear Sir/Madam,

- Subject: Press/Media Release for the Un Audited Financial Results for the quarter and nine months ended December 31, 2024

Pursuant to regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith Press/Media Release on the UnAudited Financial Results for the quarter and nine months ended December 31, 2024. The same is also being disseminated on the Company's website at https://www.diffusionengineers.com/investors-relation.

Thanking You. Yours faithfully,

For Diffusion Engineers Limited

CHANCHAL Digitally signed by CHANCHAL RAJESH RAJESH JAISWAL JAISWAL Date: 2025.02.08 19:09:55 +05'30'

Chanchal Jaiswal Company Secretary and Compliance Officer Membership no. A67136

Enclosed as above.

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Diffusion Engineers Limited

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Media Release

Achieves 14% YoY Revenue Growth in 9M FY25, Anticipates Stronger Growth

Ahead

• 9M FY25 Revenue from operations at Rs. 2,327.47 Mn

• 9M FY25 EBIDTA (excluding Other Income) at Rs. 323.75 Mn

• 9M FY25 PAT at Rs. 230.29 Mn

Nagpur, 8th February, 2025: Diffusion Engineers Limited (BSE: 544264, NSE: DIFFNKG), amongst leading manufacturers of welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries in India with nearly 40 years of “excellence in innovative engineering solutions” in the industry, announced its unaudited financial results for the third quarter and nine months ended 31[st] December, 2024. These financials are as per the IND AS accounting guidelines.

Key Financial Highlights (Rs. In Mn):

		Consolidated	Consolidated			Standalone	Standalone
Particulars	Q3 FY25	9M FY25	9M FY24	YoY%	Q3 FY25	9M FY25	9M FY24	YoY%
Revenue from operations	791.98	2,327.47	2,042.01	13.98%	735.42	2,151.18	1,879.60	14.45%
EBIDTA*	104.71	323.75	308.15	5.06%	85.66	273.81	215.80	26.88%
PAT	71.00	230.29	216.25	6.49%	63.84	217.12	159.41	36.20%

• Excluding Other Income

Consolidated Performance Highlights – Nine months year ended 31[st] December, 2024

• Revenue from operations for the nine months was Rs. 2,327.47 Mn in 9M FY25, as against Rs 2,042.01 Mn in 9M FY24, YoY increase of 13.98 %. This growth was mainly on account of sustained market demand, enhanced execution, and higher capacity utilization due to improvement in operational efficiency

• EBITDA (excluding Other Income) was at Rs. 323.75 Mn in 9M FY25 as against Rs. 308.15 Mn in 9M FY24, increase of 5.06 %

• Profit after Tax stood at Rs. 230.29 Mn in 9M FY25 compared to Rs. 216.25 Mn in 9M FY24, YoY increase of 6.49% .

Diffusion Engineers Limited

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Standalone Performance Highlights – Nine months year ended 31[st] December, 2024

• Revenue from operations for the nine months was Rs. 2,151.18 Mn in 9M FY25, as against Rs. 1,879.60 Mn in 9M FY24, YoY increase of 14.45 %. This growth was mainly due to strong market demand, enhanced operational efficiency, and improved execution capabilities which attributed to higher order inflows, better capacity utilization, and strategic pricing initiatives

• EBITDA (excluding Other Income) was at Rs. 273.81 Mn in 9M FY25 as against Rs. 215.80 Mn in 9M FY24, increase of 26.88 % mainly on account of better cost efficiencies, an improved product mix, and higher operational leverage. Additionally, factors such as optimized raw material procurement, process efficiencies, and increased sales volumes

• Profit after Tax stood at Rs. 217.12 Mn in 9M FY25 compared to Rs. 159.41 Mn in 9M FY24, YoY increase of 36.20% .

Recent Developments:

• The Board of Directors has considered and approved the appointment of Mr. Ramesh Kumar N as the Chief Executive Officer (CEO) of the Company, effective from 13th February 2025. With his extensive experience and leadership skills, Mr. Ramesh Kumar N is expected to drive the Company towards achieving its strategic goals and enhancing overall performance in the coming years. The Board looks forward to his contributions in strengthening the Company's position in the industry and delivering sustained growth.

• The Company has approved the incorporation of a wholly-owned subsidiary, tentatively named "Diffusion Engineers Middle East" or any other name as may be approved by the regulatory authorities of the United Arab Emirates (UAE). This subsidiary will focus on providing welding services and light fabrication solutions to cater to the growing demand in the Middle Eastern markets, further expanding the Company's footprint and enhancing its service offerings in this strategically important region.

Diffusion Engineers Limited

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Management Comment:

Commenting on the Company’s performance, Mr. Prashant Garg, Chairman & Managing Director, Diffusion Engineers Ltd said :

“During the third quarter ended 31[st] December 2024 we have registered a Revenue of Rs. 791.98 million, EBITDA of Rs. 104.71 million and PAT of Rs. 71.0 million. This growth was mainly driven by strong sales momentum across all units. This growth reflects sustained market demand, enhanced execution, and higher capacity utilization, due to improvement in operational efficiency.

We are pleased to announce the successful completion of our IPO and listing on the BSE and NSE on October 4, 2024. This milestone strengthens our financial position, enhances market visibility, and enables strategic investments in growth and innovation.

As part of our strategic expansion initiatives, Company has approved the establishment of a whollyowned subsidiary, tentatively named "Diffusion Engineers Middle East," subject to regulatory approval in the UAE. This strategic expansion will enable Company to provide welding services and light fabrication solutions, tapping into growing demand in the Middle Eastern markets and further strengthening its regional presence.

I am pleased to announce appointment of Mr. Ramesh Kumar N as the Chief Executive Officer, with effective from February 13, 2025. His leadership and expertise will be invaluable in driving our growth strategy and strengthening Diffusion Engineers’ market position.

As we review this quarter, we reaffirm our commitment to innovation and excellence. Our achievements in industry recognition, global expansion, and strategic investments have strengthened our competitive edge, positioning us for sustained success in the coming quarters.

I would like to thank each member of the Diffusion family, as well as our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith in us and support extended makes it easier for us to strive and excel. Thank you for your ongoing support and trust in Diffusion Engineers.”

About Diffusion Engineers Limited

Our Company incorporated in 1982, pioneer in advanced manufacturing of welding consumables, wear plates, wear parts and heavy engineering machinery to diverse industries, including cement, steel, power, and mining. Our Company is dedicated to providing specialized repairs and

Diffusion Engineers Limited

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reconditioning services for heavy machinery and equipment. Additionally, we are also involved in trading of anti-wear powders and welding and cutting machinery. We provide super conditioning process at our manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress and improves their repairability ultimately extending their lifespan and reducing production costs. We have developed a synergistic system of forward integration whereby we manufacture special purpose electrodes and flux cored wires which are utilized for manufacturing wear resistance plates (commonly known as wear plates). These wear plates then become an integral part of majority of large industrial equipment which are made in our heavy engineering division and are significant contributor in manufacturing of industrial equipment. With strategically located manufacturing units in Nagpur, Maharashtra, we benefit from central connectivity, which facilitates efficient logistics, reduced transit times, and cost optimization.

For further information, please contact:

Mr. Chanchal Jaiswal Diffusion Engineers Limited Email:info@diffusionengineers.com www.diffusionengineers.com
		Mr. Amit Sharma / Mr. Rupesh Rege
		Adfactors PR Pvt Ltd
		Email:	amit.sharma@adfactorspr.com
		rupesh.rege@adfactorspr.com
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Caution Concerning Forward- Looking Statements:

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 factor s 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.