Indian Hume Pipe Co. Ltd. — Earnings Release 2021

Jun 12, 2021

T h e India n Hum e Pip e Co. Ltd -

Registered Office : Construction House, 5, Walchand Hirachand Road, Ballard Estate, Mumbai - 400 001. INDIA Tel.: +91-22-22618091, +91-22-40748181 • Fax: +91-22-22656863 • E-mail: info@indianhumepipe.com • Visit us at: www.indianhumepipe.com CIN : L51500MH1926PLC001255

HP/SEC/ 1 2^{t h} June, 2021

1. BSE Limited, Corporate Relationship Department, 1 ^{s t} Floor, New Trading Ring, Rotunda Building, P. J. Towers, Dalai Street, Fort, Mumbai - 400 001

2. Listing Compliance National Stock Exchange of India Ltd. Exchange Plaza, 5^{t h} floor, Plot No. C/1 , G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051

Dear Sirs,

Sub : Regulation 30 of SEBI (LODR) Regulations, 2015

Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015 we are enclosing herewith Press Release on the Annual Audited Standalone Financial Results of the Company for the quarter and financial year ended 31 ^{s t} March, 2021.

Kindly take the same on record.

Thanking you,

End : As above

Yours faithfully, For The Indian Hume Pipe Company Limited,

-0r ^ 0 S. M. Mandke

Company Secretary FCS-2723

T h e India n Hum e Pip e Co. Lt d

Registered Office : Construction House, 5, Walchand Hirachand Road, Ballard Estate, Mumbai - 400 001. INDIA Tel.: +91-22-22618091, ^91-22-40748181 • Fax: +91-22-22656863 • E-mail: info@indianhumepipe.com • Visit us at: www.indianhumepipe.com CIN : L51500MH1926PLC001255

PRESS RELEASE

Fourt h Quarte r (FY 2020-21)

The Indian Hum e Pipe Compan y Ltd (IHP) reporte d total revenu e of ?481.0 4 Crores , for the 4 ^{t h} quarte r of the financia l year 2020 - 2 1 as agains t ?398.2 3 Crores , in the correspondin g quarte r of the previou s year.

The Compan y has reporte d an EBIDTA of ?71.6 2 Crore s and a Net Profit of ?38.45 Crore s as agains t an EBIDTA of ?57.65 Crore s and a Net Profit of ?25.34 Crore s in the correspondin g quarte r of the previou s year.

Twelv e Mont h Perio d (FY 2020-21)

T h e Compan y reporte d a total revenu e of ?1268.6 5 Crore s for the 12 month s period of the curren t financia l year as agains t ?1628.6 7 Crore s in the correspondin g previou s year the Compan y has reporte d an EBIDTA of ?144.6 3 Crore s an d the Net Profit of ?42.0 0 Crore s as agains t an EBIDTA of ?187.2 9 Crores and a Net Profit of ?73.41 Crore s in the correspondin g previou s year.

Reversa l o f provisio n o f dispute d amoun t o f Interes t

In respec t of certai n 'Work s Contracts ' execute d in year s 1 989-2003 , in the State of Rajasthan , the Compan y had paid Sales Tax unde r Compositio n Schem e of Rajastha n Sale s Tax Act . Th e Sale s Tax Departmen t treate d thes e 'Work s Contracts ' as divisibl e contract s and accordingl y raise d a deman d of ?303 3 Lakh s (includin g interes t of ?213 2 Lakhs). Thi s deman d wa s uphel d by Hon'bl e High Court of Rajastha n and the Compan y filed Specia l Leav e Petition s (SLP) before the Hon'bl e Suprem e Court .

On Augus t 28, 2017 , Hon'bl e Suprem e Court rejecte d SLPs of the Compan y and hence the Compan y mad e a provisio n of ?3033 Lakhs in the book s of account s of quarte r ende d Jun e 30 , 2017 . Subsequentl y base d on legal advice , the Compan y has filed an applicatio n with Hon'ble Suprem e Court seekin g recal l of the said order whic h wa s admitte d and is pendin g for adjudication .

Now in exercis e of power s conferre d by Sub-sectio n (2A) of Sectio n 174 of the Rajastha n Good s and Service s Tax Act, 2017 , the State Governmen t of Rajastha n has publishe d "Amnest y Schem e - 2021 " (the Scheme ) vide its Notificatio n date d Februar y 24, 2021 whic h provide s for settlemen t of outstandin g demand s and dispute s of Tax and interes t thereo n under certain conditions . Th e Compan y on legal advic e has applie d under the Amnest y Schem e - 2021 (the Scheme ) and has complie d with condition s as set out in the said Scheme . The Compan y on June 9, 202 1 has receive d confirmator y certificat e fro m CTO , Ajme r Rajastha n grantin g waive r of entir e outstandin g interes t demand . Henc e the Compan y has

reverse d its provisio n of ^213 2 Lakh s related to interes t portion in the quarte r ende d Marc h 31 , 2021 .

Workin g Capita l Managemen t

In spite of pandemic , lock down etc., the concentrate d effort s of the Compan y has resulte d in bill collection s during the year of ?148 0 Crores , on the backdro p of revenu e fro m operation s of ?1 241.4 0 Crores .

The Company' s push on its old lock up of indirec t taxe s has borne fruit s in collectin g old VAT outstandin g of ?11.91 Crore s and GST of ^17.7 1 Crores , realised on Apri l 3, 2021 .

In last few orders , availabilit y of 10% interes t free mobilisatio n advanc e has also helped the Compan y strengthenin g its fund position .

As a result of abov e inflows , the Compan y wa s able to reduc e its total borrowing s by ?110 Crore s and its creditor s by ^3 0 Crore s whic h has resulte d in lowerin g of interes t burde n in Q4.

Orde r Boo k

The estimate d balanc e valu e of the wor k as at 31 ^{s t} May , 202 1 is ^4519.4 4 Crore s as agains t ^5007.7 9 Crore s as at 20 ^{t h} June , 2020 .

The Compan y is L1 in two project s having valu e of ?419.8 3 Crore s as at 31 ^{s t} May, 2021 .

Dividen d

The Boar d of Director s at their meetin g held on Jun e 12, 202 1 have recommende d a dividen d of ?2.0 0 (100% ) per equit y share of face value of ?2/- each for the financia l year ende d Marc h 31 , 2021 , subjec t to approva l of the shareholder s in the ensuin g Annua l Genera l Meetin g of the Compan y as agains t a dividen d of ?2.00 (100% ) per equit y shar e of face value of ?2/- eac h for the previou s financia l year. Th e curtailmen t of dividen d is don e with the view of conservin g fund s in uncertai n times .

Place : Mumbai Date : June 12, 2021 For THE INDIAN HUM E PIPE CO. LTD.

RAJA S R DOSHI