Nelcast Limited — Earnings Release 2024

May 13, 2024

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13[th] May 2024

BSE Limited Listing Operations Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai - 400 001 Maharashtra, India BSE Script Code: 532864

National Stock Exchange of India Limited Listing Department, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Maharashtra, India NSE Script Code: NELCAST

Dear Sir/Madam

Sub: Press Release on the Audited Financial Results of the Company for the quarter and year ended 31[st] March 2024

We are enclosing the Press Release on the Audited Financial Results of the Company for the quarter and year ended 31[st] March 2024.

We request you to take this information on record.

Thanking you.

For NELCAST Ltd

S K Digitally signed by S K SIVAKUMAR SIVAKUMAR Date: 2024.05.13 21:16:10 +05'30' (S.K.SIVAKUMAR) Company Secretary

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Press and Media Release

May 13, 2024

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Nelcast Ltd reports Q4 & FY24 Results

Exports at Rs. 445 Crores in FY24; up 35% YoY Exports Reported Strong 40% CAGR Growth Between FY18 to FY24 FY2024 EBITDA/kg at Rs. 12.5, up 10% YoY

Chennai, India, May 13, 2024 – Nelcast Ltd (referred to as the “Company”; NSE Symbol: NELCAST, BSE Scrip Code: 532864), a leading producer of Ductile and Grey Iron castings in India, announced its financial results for the fourth quarter and financial year ended March 31, 2024 .

Commenting on the performance, Mr. Deepak Reddy Ponnavolu, Managing Director & CEO of Nelcast, said “The operational and financial performance for FY24 reflects both the challenges and successes we have encountered. The year was marked by a slow demand in the second half, influenced by the general elections, which notably affected the sales of our M&HCV segment and muted demand from tractor market.

However, we reported an exceptional performance in our export division. We achieved a remarkable 35% year-onyear growth in exports, exceeding our target of Rs. 100 crores each quarter and concluded FY24 with an impressive Rs. 445 crores of export revenue. This success is part of a sustained growth story, with a seven-year compound annual growth rate (CAGR) of 40% from FY18 to FY24. The EBITDA per kg also saw a notable increase to Rs. 12.48, up by 10% year-on-year from Rs. 11.34 in FY23, thanks to improved operational performance. Our Pedapariaya Plant in Andhra Pradesh now boasts a newly installed 1 MW inhouse solar power plant, reinforcing our dedication to sustainability and cost-effectiveness while reducing our carbon footprint.

Looking ahead, we are optimistic about the export market's trajectory, anticipating strong growth fuelled by increased volumes and the introduction of new products. In the domestic market, we expect to see a resurgence in the Commercial Vehicle industry in H2FY25. With robust export growth, a proficient team, and continued operational efficiencies, we are poised to deliver strong performance in the coming fiscal year. Our strategic initiatives and resilient business model equip us to navigate market fluctuations and capitalize on growth opportunities. ”

Consolidated Performance Highlights

						(In Rs. crore	s, unless otherwise mentioned)	s, unless otherwise mentioned)
			YoY		QoQ			YoY
Particulars	Q4 FY24	Q4 FY23		Q3 FY24		FY24	FY23
			Growth		Growth			Growth
Total Revenue	299.2	315.2	-5.07%	323.0	-7.36%	1,281.2	1,280.1	0.09%
EBITDA	19.3	20.8	-7.30%	28.2	-31.63%	106.5	95.5	11.55%
EBITDA Margin %	6.45%	6.60%	-15.5 bps	8.74%	-229.0 bps	8.32%	7.46%	_85.5 bps _
EBITDA/kg (in INR)	10.53	9.70	8.56%	12.11	-13.05%	12.48	11.34	10.05%
PAT	5.1	4.5	12.97%	25.5*	-80.16%	54.4*	29.7	82.98%
								192.4 bps
PAT Margin %	1.69%	1.42%	27.0 bps	7.90%	-621.2 bps	4.25%	2.32%

* Includes exceptional item of profit on sale of land

NELCAST LIMITED 159 TTK ROAD, ALWARPET, CHENNAI – 600018 / www.nelcast.com

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FY24 Financial highlights

• Total Revenue was at Rs 1,281.2 Crores, flat at 0.09% YoY

• While exports reported a strong growth, overall revenue growth was impacted due to subdued performance in Medium & Heavy Commercial Vehicle (M&HCV) and tractor segment given the low demand in the industry that resulted in decrease in overall sale volumes (81,925 Tonnes in FY24 vs 84,381 Tonnes in FY23)

• EBITDA at Rs 106.5 Crores, up 11.6% YoY; EBITDA margin at 8.3%

• YoY growth was due to improved operational performance during FY24

• The Profit After Tax stood at Rs 54.4 Crores and Adjusted Profit After Tax stood at Rs. 36.6 Crores

• Sector-wise Revenue

• In FY24, the largest share was contributed by M&HCV making up 38.6% of the total revenues, followed by Tractors – 21.2%, Exports – 35.4%, Railways – 2.2%, Off-highway equipment – 2.3%, and Others – 0.3%.

• In FY23, M&HCV contributed 39.3% to revenues, Tractors – 29.3%, Exports – 26.2%, Railways – 3.2%, Off-highway equipment – 1.7%, and Others – 0.3%.

Outlook for FY25

• Expect volume growth in export market and domestic M&HCV market to pick up by H2FY25.

• Anticipate sustained robust growth in export sales, supported by a solid order book and the introduction of new products in the pipeline.

About Nelcast Ltd

Incorporated in 1982, Nelcast manufactures grey and ductile castings for the M&HCV and tractor industry segments. Around 30-35% of its overall revenues is also generated from export markets. Key products supplied to its M&HCV clients include differential carriers, differential cases, bogie suspension brackets, and conventional brackets, among others. For the tractor segment, the company’s major products are transmission casing, centre housing, axle housing and hydraulic lift cover. It also supplies base plates and brake discs for metro rail projects and the railways respectively. Nelcast has an aggregate installed production capacity of 160,000 tonnes per annum. Its factories are located at Ponneri in Tamil Nadu, and at Gudur and Pedapariya in Andhra Pradesh.

Contact Details

Nelcast Limited Ernst & Young LLP S. K. Sivakumar Abhishek Bhatt CFO & Company Secretary Vikash Verma E-mail: nelcast@nelcast.com Email: abhishek.bhatt3@in.ey.com vikash.verma1@in.ey.com

For further information on Nelcast Limited, please visit www.nelcast.com

Safe Harbor

This release contains statements that may contain “forward-looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Nelcast Ltd future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Nelcast Ltd undertake no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.

NELCAST LIMITED

159 TTK ROAD, ALWARPET, CHENNAI – 600018 / www.nelcast.com