Indo National Limited — Interim / Quarterly Report 2022

Feb 22, 2022

lndo National Limited

Nl 0 'f,

Dated 21 st Feb 2022

To

The Listing Department National Stock Exchange of India Ltd. "Exchange Plaza", Bandra-Kurla Complex, Sandra (E) MUMBAI - 400 051

The B.S. E. Limited Floor 25, 'Phiroze JeeJeebhoy Towers Dalal Street, Mumbai -400 001

Dear Sirs,

Company Script No. 504058/NIPPOBATRY

Sub: Results -press release

We enclose herewith result- press release for the quarter and nine months ended 31 st December 2021.

Thanking you.

Yours faithfully, For lndo National Limited

· · --1pi '�/ �inivasan Company Secretary

Corp. Office : Pottipati Plaza, 3rd Floor, 77, Nungambakkam High Road, Chennai - 600 034. T: +91 44 2824 2700 / 2827 2711 E: feedback@nippo.in W: www.nippo.in CIN No.: L31909TN1972PLC006196

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Indo-National Ltd.

Announces Q3 & 9M FY22 Results

Consolidated Revenues grow 11.1% YoY to Rs. 172 crore in Q3FY22

INL’s subsidiary Kineco Ltd. records positive business momentum, records 50% Y-o-Y revenue growth in Q3FY22

Chennai, February 17, 2022: Indo-National Ltd. (INL) is a leading consumer goods Company with a portfolio comprising dry-cell batteries, Flash lights, LED lights, Mosquito bats, DORCO Blades and electrical accessories. Through its subsidiaries and step-down joint ventures, it has also emerged as a global supplier of composites to the railway, aerospace and defense industries. The Company has announced its financial results for the quarter and nine months ended December 31, 2021.

Financial Highlights – Q3 & 9M FY22

Standalone	Q3 FY22	Q3 FY21	Variance	9M FY22	9M FY21	Variance
(INR mn. except EPS)
Revenue from Operations (Net of Taxes)	1,036	1,092	-5.1%	2,875	2,949	-2.5%
EBITDA(Excl. Other Income)	0.09	107	-99.9%	115	292	-60.6%
% of Revenue	0.01%	9.8%	-979 bps	4.0%	9.9%	-590 bps
PBT	13	140	-90.6%	173	375	-53.7%
% of Total Income	1.2%	12.2%	-1,100 bps	0.6%	1.2%	-60 bps
PAT	9	105	91.0%	129	280	-54.1%
% of Total Income	0.9%	9.1%	-820 bps	0.4%	0.9%	-50 bps
EPS Diluted	1.26	28.06		17.15	37.32

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Consolidated	Q3 FY22	Q3 FY21	Variance	9M FY22	9M FY21	Variance
(INR mn. except EPS)
Revenue from Operations (Net of Taxes)	1,717	1,546	11.1%	4,488	4,031	11.3%
EBITDA(Excl.Other Income)	80	198	-59.9%	314	481	-34.6%
% of Revenue	4.7%	12.8%	-810 bps	7.0%	11.9%	-490 bps
PBT	101	188	-46.4%	293	419	-30%
% of Total Income	5.6%	12.2%	-660 bps	6.3%	10.4%	-410 bps
PAT	68	112	-39.3%	204	276	-26%
% of Total Income	3.8%	7.2%	-340 bps	4.4%	6.8%	-240 bps
EPS Diluted	3.81	27.39		19.57	33.80
PAT attributable to
Owners of the Company	34	96		146	249
Non-controlling interest	37	9		55	24

Management Comment

Commenting on the performance, Mr. Aditya Reddy, Jt. Managing Director said:

“The third quarter was a challenging quarter for the Company due to subdued market demand for some of our products and higher costs. The performance of our batteries products was impacted due to reduced usage of Covid related gadgets during the quarter. However, I am happy to share that our non-battery categories like LED, Electrical Accessories and Mosquito Bats registered an improved revenue and margin performance.

In addition to the tempered consumer sentiments, the unprecedented increase in input costs which could not be absorbed, impacted our battery performance and subsequently our overall performance. Considering the improved pandemic scenario at a global level, the commodity prices and supply chain constraints should ease out and consequently assist in softening the input prices for batteries. Additionally, the recent price increase should assist us in registering a better performance from the battery category, going ahead.

Considering our growth plans for our B2C business, we have recently revised our Vision – Mission - Culture -Values; which we are confident would take us in a new direction for our next level of growth.

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Growth in Consolidated Revenues has been driven by Kineco which has reported revenues of Rs. 68 crore, higher by 50.1% y-o-y and 7.4% on a Q-o-Q basis. Kineco-Kaman registered a positive bounce back post the Covid impact with acquisition of 3 new International customers and with our milestone dispatch of 600[th] Console to BAE Systems. On the other hand, Kineco’s standalone business also displayed a strong recovery post the impact of Covid, with revenues in Q2 & Q3 FY21-22 at ~250% compared to Q1. The Railway business exhibited exponential growth too after a dip in volumes in FY21,

He added, “With the pandemic receding into the background, we are looking forward to leverage our competencies, infrastructure, talent, brand salience and global partnerships to deliver sustainable long-term growth. Going ahead, the Company aspires to reduce its costs, have a healthy balance sheet, and register sustainable volume growth across its product portfolio.”

Key Developments / Operational Highlights of Q3 FY22

1. During Q3FY22, CRISIL reaffirmed its rating assigned to the long-term bank facilities of Indo National Ltd. to CRISIL A / stable. The rating for short-term bank facilities of the Company has been assigned at CRISIL A1.

2. Following the launch of DORCO razors and razor blades in India in FY21, the Company had been consistently taking efforts to expand the availability of DORCO products into newer regions. During the quarter gone by, the Company fulfilled its objective of having a comprehensive pan India presence for DORCO products.

3. In June 2020, INL had appointed Indian cricketer Rohit Sharma to endorse its portfolio of products comprising of Dry-Cell Batteries, Torches and Mosquito Bats. In addition to these products, Rohit Sharma has now been engaged to endorse LED and Electrical Accessories as well.

4. Considering the improved performance of Kineco and the comfort derived by the bankers, Corporate Guarantee of Rs. 40.4 crore given to HDFC against Kineco’s limits has been reduced to Rs. 20.4 crore in Q4.

5. Kineco’s Defence business has been a direct beneficiary of favourable policies by Ministry of Defence, Govt of India. Recent announcements and incremental policy directives such as additions to import substitution list will have a positive impact on the business enhancing the prospects of commercializing several of the development projects completed in the recent past.

- ENDS –

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About Indo-National Limited

Indo-National Ltd. (formerly, Nippo Batteries Company Ltd.) is a leading manufacturer of Dry-cell Batteries in India. Headquarted in Chennai, it is the second-largest player in the industry, with a production capacity of 800 million batteries per annum. Leveraging its established distribution network, the Company also offers Flashlights (torches), LED lights, Mosquito bats and Electrical Products.

INL was incorporated in 1972 as a joint venture (JV) between the late Mr. P Obul Reddy and Panasonic Corporation (leading Japanese electronics company, which subsequently exited the JV in 2012). It has a dry-cell battery manufacturing facility located in Tada Kandriga Village, Nellore (A.P) and has also set up a 4.6-megawatt solar power plant in Polepally village, Telangana.

INL holds a 51% stake in Kineco Ltd., which manufactures composites for Railways, Industrial applications, and defence. Kineco further holds a 51% stake in Kineco Kaman Composites Pvt Ltd which is a joint venture with Kaman Aerospace Group, USA (A NYSE listed entity), to manufacture advanced composites for the medical and aerospace industries. Additionally, Kineco holds a 45% stake in Kineco Exel Composites India Private Limited, a JV with Exel Composites Oyj (Nasdaq Helsinki listed), globally recognized Composites Company.

INL is listed on the BSE and NSE in India with stock code ‘504058’ and ‘NIPPOBATRY’ respectively. It enjoys high credit ratings of ‘A1’ for short-term and ‘A’ for long-term by CRISIL.

Corporate Identification No: L31909TN1972PLC006196

Regd. Office: No.609, Mount Road, Lakshmi Bhawan, 4[th] Floor, Chennai – 600 006. Tamil Nadu

For more information about us, please visit www.nippo.inor contact:

Mr. J. Srinivasan (Company Secretary) Mayank Vaswani/ Devrishi Singh Indo National Ltd. CDR, India ( Investor Relations Advisors ) Email: jsrinivasan@nippo.in Tel: +91 98209 40953 / 98205 30918 Email: mayank@cdr-india.com devrishi@cdr-india.com

DISCLAIMER:

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forwardlooking statements. Indo-National Ltd 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.

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