Indag Rubber Ltd. — Earnings Release 2021

May 10, 2021

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May 10, 2021 BSE Limited (Company code-1321) Phiroze Jeejeebhoy Towers, (Scrip code-509162) Dalal Street, Mumbai-400001

Sub: Result Press Release of Q4 & FY2021

Dear Sir,

Enclosed please find Result Press Release of Q4 & FY2021 for the information of the investors and public at large.

Thanking You.

Yours faithfully, For Indag Rubber Limited

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Company Secretary

THE ONLY ALTERNATE TO NEW TYRES…SINCE 1978

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Indag Rubber Limited FY21 Financial Highlights

Final Dividend of Rs. 1.50 per share (FV of Rs. 2)

Total Revenues at Rs. 173.9 crores

EBITDA at Rs. 20.3 crores

Profit Before Tax^ at Rs. 16.2 crores

Investor Release: 10[th] May 2021, Delhi

Indag Rubber Limited , one of India’s leading tread manufacturing Company, has declared its Audited Financial Results for the Quarter and Full Year Ended 31[st] March, 2021.

Particulars (Rs. Crores)	Q4 FY21	Q4 FY20	Y-o-Y	FY21	FY20	Y-o-Y
Total Revenue*	45.9	36.8	25%	173.9	191.4	-9%
EBITDA*	3.1	3.2	-3%	20.3	20.7	-2%
EBITDA Margin (%)	6.7%	8.6%	-200 bps	11.7%	10.8%	+90 bps
Profit Before Tax	2.0	2.1	-4%	16.2^	16.6	-2%
PBT Margin (%)	4.4%	5.7%	-130 bps	9.3%^	8.7%	+60 bps

* Includes Other Income, On Consolidated Basis; ^Excluding Exceptional Item of Rs 13.2 cr as the Company opted for the Himachal Pradesh {Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier year’s booked as expense in Q3 FY21

Key Updates

• Dividend:

• Final Dividend recommended of Rs. 1.50 per equity share in addition to Interim Dividend of Rs. 0.90 per equity share paid in November 2020, thereby giving Total Dividend of Rs. 2.4 per equity share for Financial Year 2020-2021. Face Value (FV) of one equity share is Rs. 2

• Other Updates

• Appointed Mr. Vijay Shrinivas as Additional Director with effect from June 1, 2021

• Appointed Mr. Vijay Shrinivas as Whole time Director (Key Managerial Personnel designated as Chief Executive Officer) with effect from June 1, 2021 for a period of 3 years, subject to approval of members

THE ONLY ALTERNATE TO NEW TYRES…SINCE 1978

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Commenting on the Result, Mr. K. K. Kapur CEO, Indag Rubber Limited said,

“We have delivered a steady performance in FY21 despite unprecedented macro-economic challenges. The spread of the COVID-19 pandemic in early March 2020 caused significant disruptions in our business operations like many others. However, post the partial lockdowns and easing of restrictions thereafter, we witnessed a sharp uptick in economic activities that limited our de-growth for the year. Profitability for the full year was impacted by certain one-off tax settlements of prior years, excluding which we have delivered a steady performance.

We have recorded 29% YoY revenue growth in Q4 FY21, albeit on a low base of last year. Margins have been impacted by input cost inflation which we will subsequently pass on to our customers. The commercial vehicle industry sales in Q4 FY21 have been strong led by robust demand for medium and heavy commercial vehicles reflecting the uptick in infrastructure, construction and manufacturing sector, and augurs well for our long terms prospects going forward.

The environment has since evolved with the onset of a new strain of Covid virus infecting certain key States across the country. As a result, we are seeing more localized, micro lockdowns and restrictions being imposed rather than a nation-wide lockdown witnessed last year. However, it is expected that the Indian Government’s initiative of world’s largest vaccination program, now open to all above 18 years, will achieve large scale immunity among the population and economic activities will be back to previous levels in due course.

We are working diligently on strengthening our value proposition to our customers and are confident of our medium to long term prospects. Keeping that in view along with our strong balance sheet, the Board of Directors have declared a final dividend of Rs 1.5/share taking the total dividend for the year to Rs 2.4/share.”

THE ONLY ALTERNATE TO NEW TYRES…SINCE 1978

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About Indag Rubber Limited

Indag Rubber Limited (IRL) is founded by Khemka Group during the early 80's. IRL pioneered the introduction of Cold Retreading Technology in India. Since then the company has provided Retreading material to customers ranging from Pre-cure Tread Rubber to Envelopes. IRL has state-of-the-art manufacturing unit established at Nalagarh Industrial Estate in Himachal Pradesh with an Annual Capacity to manufacture 20,000 tons of Precured Tread Rubber (PTR) along with allied items. With the Best Quality product and reasonable pricing with wide distribution network, Company provides Tread which gives “Lowest Cost per Kilometre” for tyres to the end users.

Safe Harbor Statement

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For further information, please contact Company : Investor Relations Advisors : Indag Rubber Limited Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1978PLC009038 CIN: U74140MH2010PTC204285 Mr. Anil Bhardwaj, G.M.(Accounts) & CFO Mr. Varun Divadkar / Ms. Khushbu Shah anil@indagrubber.com varun.divadkar@sgapl.net/ khushbu.shah@sgapl.net www.indagrubber.in +91 9763702204 / +91 9820601181 www.sgapl.net