Permanent Magnets Ltd. — Call Transcript 2023

Nov 13, 2023

PERMANENT MAGNETS LIMITED B-3, MIDC, Village Mira, Mira Road (East), Thane - 401107, Maharashtra, India

==> picture [58 x 35] intentionally omitted <==

Phone : +91-22-68285454 Facsimile : +91-22-29452128 Email : sales@pmlindia.com Website : www.pmlindia.com

Date : 13[th] November, 2023

To,

Corporate Relation Department The Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

Security Code : 504132 Security ID : PERMAGN

Sub: Transcript of Conference Call with reference to the Unaudited Financial Results for the quarter and half year ended September 30, 2023

Dear Sir/Madam,

Pursuant to Regulation 30 & 46 of the SEBI (Listing Obligations & Disclosure requirements) Regulations, 2015, we are enclosing herewith a copy of the Transcript of Conference call conducted on November 10, 2023 to discuss the Unaudited Financial Results of the Company for the quarter and half year ended on September 30, 2023.

The above information is also available on the website of the Company i.e. www.pmlindia.com

Request you to kindly take the same on record.

Thanking you,

Yours Faithfully,

FOR PERMANENT MAGNETS LIMITED

RACHANA Digitally signed by RACHANA PARESH PARESH SAWANT Date: 2023.11.13 13:38:36 SAWANT +05'30' RACHANA RANE COMPANY SECRETARY

==> picture [77 x 52] intentionally omitted <==

==> picture [78 x 52] intentionally omitted <==

Regd Office: Harsh Avenue, 302, 3[rd] Floor, opp. Silvassa Police Station, Silvassa Vapi Main Road, Silvassa- 396 230. Dadra and Nagar Haveli (U.T.) (All correspondence has to be made at our Mira Road address only)

CIN-L27100DN1960PLC000371

==> picture [44 x 31] intentionally omitted <==

==> picture [179 x 31] intentionally omitted <==

e E “Permanent Magn ts Limited Q2 & H1 FY24 arnings Conference Call”

November 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

==> picture [40 x 49] intentionally omitted <==

==> picture [63 x 49] intentionally omitted <==

MANAGEMENT: MR. SHARAD TAPARIA – MANAGING DIRECTOR, PERMANENT MAGNETS LIMITED MR. SUKHMAL JAIN – SENIOR VICE PRESIDENT & CFO, PERMANENT MAGNETS LIMITED

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Moderator:

Ladies and g e ntlemen, good day and welcome to Permanent Magnets Limit e d Q2 &H1 FY24 Earnings Co n ference Call.

As a remind e r, all participant lines will be in the listen-only mode and there will be an opportunity f or you to ask questions after the presentation concludes. Should you need assistance du r ing the conference call, please signal an operator by pressing ‘’and then ‘0’on your touchto n* e phone. Please note that this conference is being recorded.

I now hand t h e conference over to Mr. Sayam Pokharna from TIL Adviso r s Private Limited. Thank you a n d over to you sir.

Sayam Pokharna:

Thank you e v eryone for joining in today.

Wishing you a ll a very Happy Dhanteras and greetings of Diwali from every o ne at TIL.

So to take u s through today's results, we have with us Mr. Sharad Ta p aria – Managing Director, Mr. Sukhmal Jain – Senior Vice President and Chief Financial Offi c er.

We will be st a rting with a brief overview of the company's performance for t he quarter and for the H1 FY24 , followed by a Q&A session.

I would like to remind you all that anything and everything that is sai d on this call that represents an y outlook for the future which can be construed as a forward - looking statement must be vie w ed in conjunction with the risks and uncertainties that we fac e . These risks and uncertainties h ave been detailed in our annual report.

With that, ov e r to you, Sharad sir.

Sharad Taparia:

Yes, thank y o u, Sayam. Wishing everyone a very Happy Dhanteras and Ha p py Diwali. And I welcome you all to the quarter 2 and the first half financial year 24 earnings call of Permanent Magnets Li m ited. Thank you all for taking out the time to attend this call. It is a pleasure to address you a ll today and walk you through our performance for the quart e r and for the half year.

Our topline g rew by 18% year-on-year this quarter thus reaching Rs. 54 c r ores. Growth has been reporte d on a half yearly basis with 21% year-on-year growth and firs t half 24 topline of Rs. 97 crores . In quarter 2, margins reduced slightly on account of product mix. There has been investments m ade by the company in plant and machinery and you will also see this trend in the second h alf of financial year 24 given the projects we have in th e pipeline. These investments h ave led to some increase in current costs and the benefits of w hich we will yield in financial y e ar 25 and beyond.

Regarding q u antum magnetic subsidiary, we are in the final stages of commissioning the manufacturin g facility which is expected to be operational by end of financ i al year 2024. The

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

results from t his project will be seen in the coming financial year. The s ubsidiary will be manufacturin g electronic applications initially. Regarding energy meter, t h e demand in this sector for so m e products has increased and we are seeing increased orders re g arding this.

On the EV s i de, there are some push outs of orders. There is some conc e rn about slowing growth rates of EV worldwide. We remain agile in evaluating and re s ponding to these changing ma r ket dynamics.

Our outlook for the rest of the financial year remains positive. We are in the process of enhancing P M L's capabilities and this should present good opportunitie s for PML in the coming years.

Now, I woul d like to open the floor for questions.

Moderator:

Thank you v e ry much. We will now begin the question and answer session. The first question is from the li n e of Rahul Jain from Credence Wealth. Go ahead.

Rahul Jain:

Thank you f o r opportunity and congratulation Sharad ji for a good perfor m ance Considering the environm e nt is quite tough, we have reasonably done very well on the sa l es growth and last two years, th e journey has been really good. So coming to the question, sir , first with regards to the comm e ntary which you talked about, both in your initial remarks an d the press release about the do m estic energy market. So in general, we have been always tryin g to understand the opportunity o f energy meters, and you have always mentioned that there a r e talks and on the ground, the s i tuation has not been changing or there is some time for on th e ground action to happen. Plus, with regards to margins, you have been always adding your c oncerns. So, with respect to bo t h these aspects, now if you could share your views to what is h appening now on the ground a n d also the margin part?

Sharad Taparia:

Yes, sure. S o , regarding your first question about the energy meter, deman d , the situation on the ground, w e believe that it is improving and the government tenders, they are getting executed by t he companies who have won these tenders and we are seeing a slight increase in the demand f o r our products. So, we believe that this trend is going to conti n ue. And regarding the margins w hich you mentioned that depends on the product mix, see m o st of our products are customiz e d products. So sometimes when the sale of lower margin pro d uct is higher, then overall the m a rgin looks to be lower. So, but otherwise we are not very muc h concerned about this overall m argin levels. In the second quarter, the local sales were more than the comparable sales to the l a st year second quarter. And that is why you see a slight differe n ce on the margin. In generally, e xport margins are better.

Rahul Jain:

So the margi n s are lower because of the domestic business?

Sharad Taparia:

Domestic bu s iness in the second quarter was 42% as compared to only 30% in the quarter 2 of 2022-23.

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Rahul Jain:

And what is t h e overall potential you are seeing in this domestic business of e nergy meters?

Sharad Taparia:

The total rep l acement program of the government is about 25 crore meters. So there is a big potential. W e are now evaluating what products we can do. Some products are already going on for which we have received increased demand, but others we are evalu a ting. So there is a good potenti a l.

Rahul Jain:

Thanks sir, but regards to the alloy part, we have generally always mentioned about diversifying a nd de-risking from being purely application-wise on the auto m obile side and the smart meter s ide. So you seem to have taken this step in terms of setting u p two furnaces and made some C APEX towards that. And further you also mentioned in your i n itial remarks that there will be further CAPEX in the second half. So what is the total CAP E X assigned to the alloy part? A n d what kind of opportunity do we see in this segment?

Sharad Taparia:

Yes. The bro a der principle that we are operating is we are a capabilities bas e d company, not a product base d company. So we are expanding our capabilities and cast i ng is one of the capabilities. T herefore, we are ventured into the alloy space. And alread y , 2 furnaces have been commissioned. We have installed these furnaces. We can now produ c e alloys using the vacuum indu c tion process. One more furnace for ribbon manufacturing is under installation, which will h a ppen maybe in another 2 months' time. And the CAPEX that h a s been done in the alloy space is approximately Rs. 8 crore.

Rahul Jain:

So Sharadji, y ou mentioned that the CAPEX on this furnace is totally for t he entire segment will be Rs. 8 crores. So the question was, see, this will typically result i nto what kind of revenue pote n tial or what kind of asset turn is possible in the alloy part. An d also, the margins in this partic u lar application, this particular capacity will be near around 2 2 % or somewhere higher or bel o w this?

Sharad Taparia:

Here, there a r e 2-3 methods by which customers take the alloy. In some c a ses, the customer wants us to b uy raw material and produce the alloy. In some cases, they provide the material and we only do job work. So the margin is completely different. When w e do job work, the cost to the m a rgin will be much higher and in case of raw material, the mar g in will be lower. I can't give yo u an exact answer to that right now and also the revenue als o depends on what kind of alloy we will produce. So we are targeting nickel, cobalt, molybde n um, super alloys, these type of alloys we are targeting, the range is about let's say near abo u t Rs. 2,500 to Rs. 5,000 a kilo, s omething like this.

Rahul Jain:

Sharad Taparia:

Rahul Jain:

I was talking about not just for next year, but overall the revenue potential of this segment can be somewher e around what kind of ballpark number if you could share? You are talki n g about the overall long term potential of the alloy total busine s s? Yes.

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Sharad Taparia: It can be quit e large. I don't have any number right now. Maybe hundreds of c rores.

Rahul Jain:

Sharad Taparia:

My last ques t ion is on quantum magnetics. You had mentioned that we are somewhere at the final stage o f commissioning a new facility in the next 2-3 months. So w h at exactly we are planning to d o over there? And you have mentioned that we will be havi n g some magnetic assemblies f o r electronic applications. So if you could share some mo r e details on this particular thi n g? I can't share a bout the exact application right now, but it is the magnetic ass e mbly which is for consumer ele c tronics business and we are going to commission it in this fina n cial year.

Rahul Jain: Thank you sir for your replies. Moderator: T

Thank you. T he next question is from the line of Manan Poladia from MKP Securities. Please go ahead.

Manan Poladia:

So my questi o n is specifically on the smart meter side of things. What I wa n ted to understand is one, if you could give me some sense of what our contribution per smart m eter would be in terms of if w e have currently the products that we are doing. Secondl y , what I want to understand is of our total revenue from last year, what percentage would y ou say was smart meters and w h at do you think it can be in the next couple of fiscal years bec a use we've spoken to another li s ted, I would say vendor of yours who says that they can ba s ically double that smart meter b usiness next year. So I just want to get a sense of what you're t h inking in terms of how fast the industry will grow and how fast it will grow for you?

Sharad Taparia:

The revenue f rom each smart meter depends on what kind of components w e supply. So, the more value a d dition that we do, higher is the revenue per part. So, if you m ake an integrated assembly, it' s a bigger rupees per piece. So, from customer to customer, it changes. And our first half, ab o ut 43% revenue has come from smart meter, electricity mete r business. Out of which, smart meter is one of the products.

Manan Poladia:

Basically wh a t you are saying, just a small follow up on that. Sir, the energy metering order booking has s tarted with all the listed companies that are there. They are sh o wing order books of Rs. 19,00 0 crore – Rs. 20,000 crore. What I want to understand is what p o rtion of the smart meter orders that are in there, do you expect to be executed in the next co u ple of years, say? And do you e xpect all of that benefit to flow through to you as well? Bec a use you make the integrated as s embly for them?

Sharad Taparia:

Currently, w e are making assemblies for a few customers only and we a r e exploring other options for o t her customers. The total business, the total replacement progr a m of this 25 crore meter, the w a y originally planned by the government, in our estimates it could take a little longer to im p lement and it may not happen so fast. Although the order b o oks are there, but they are in a b etter position to answer how quickly it can happen. But there are challenges on the ground o n how they will install the meters. So that is what we are seeing c urrently.

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Manan Poladia: Would you b e willing to provide what customers you are working withi n the smart meter segment in I n dia? Sharad Taparia: I would not like to mention the customer names, please. Moderator: Thank you. T he next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead. Dhwanil Desai: Sir, my first q uestion is, I think in the remarks you talked about some slo w down on the EV side of it. So if you can elaborate on that and how it has impact on our p ipeline for FY25, FY26 which w e might be thinking will materialize. Will anything you see g etting pushed out or kind of sta l led, any update on that? Sharad Taparia: So, yes, than k s so much. And see, the overall EV market, there seems to be a slowdown due to concerns ab o ut higher interest costs and charging infrastructure and a ll those reasons internationall y . We believe that this could be temporary or maybe I don't kn o w till when it will go on, but w e believe that there should be some recovery at some point o f time. And going forward in 2 4 -25, 25-26 in the pipeline, there are other projects also which a re progressing. So I do not beli e ve in the overall growth and the business of PML, it should have a significant impact. We d o not believe that. Dhwanil Desai: Second ques t ion, sir, movement from the component to module side, an y thing, something which is wor t h reporting, worth talking about in terms of proportion, how do you look at it, are any more co n firmed projects, pipelines, which are coming to your way, whi c h will take it from 3%, 4%, 5% t o maybe 10%, 12%, 15% in next 2-3 years. Any update on that ? Sharad Taparia: Yes, there is p rogress going on in each of the projects which were, so diffe r ent projects are at different stag e s. Some are at, let's say, feasibility. Some are prices already a pproved. In some cases, we ha v e sent prototypes already to the customers. So different stage s are there. And in the last quarter, we have made progress in most of these stages. So in the coming years, we should see a n increase in the supply of modules and as a proportion of the b u siness, we should see an increa s e in the modules business. Dhwanil Desai: That is true. A nd one more question I will come back in the queue is on the q uantum magnetic. So I think y o u've talked about something which will get commercialized or commissioned soon. But an y sense on CAPEX, margin, revenue potential, if you can gi v e some sense and eventually, I think the dream plan is to kind of bring more and more com p onents of supply chain into th e subsidiary. So any thoughts or progress around that, if you can talk about that? Sharad Taparia: So far, this is actually a business where we are going to make assembli e s out of magnets, particularly n e odymium magnets. And then the phase 2 will be to manufact u re the neodymium magnets itsel f and then we have entered into an MoU and we are working o n the JV project for that. So in th e phase one, we have invested Rs. 4 crore so far, for which the a ssembly business will and may b e a few more crore rupees will be spent in the coming month s and the assembly

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

business will start. And then phase 2 will happen after we sign the JV an d then much more CAPEX will b e done to produce the neodymium magnets, that is the plan.

Dhwanil Desai: So my quest i on is that currently the JV partner is not putting in any mo n ey. Only PML is putting in mo n ey. That's the right impression? Sharad Taparia: Yes. Dhwanil Desai: Sir, any sen s e on revenue for whatever money that you're putting in, r evenue, potential, margins? An y sense on that? Sharad Taparia: That we can n ot comment on right now. It will depend on how fast the ra m p up will happen. But the ma i n revenue is expected in the year 2024-25. Just like a n estimate of an approximatio n with the current investment that we have done, the range ca n be maybe about, let's say abou t Rs. 7 crore to let's say Rs. 15 crore, something like that. Dhwanil Desai: With the Rs. 4 crore investment that we have done so far? Sharad Taparia: So far for the investment that we have, yes. Moderator: Thank you. T he next question is from the line of Utsav A who's an individual investor. Please go ahead. Utsav A: My question is regarding smart meters again, just a follow-up on the earlie r participants. Are we seeing an y increase in competition for manufacturing of relays or other p roducts which go into making s mart meters given the large order opportunity? Sharad Taparia: There are s o me companies who are setting up, as we understand, th e y are setting up manufacturin g of relays, but currently the maximum number of relays are ge t ting imported into India. Moderator: Thank you. T he next question is from the line of Vivek Seth, who is an i n dividual investor. Please go ah e ad. Vivek Seth: Sir, one thin g regarding this neodymium sourcing, so there is a critical m ineral, China has probably sup p lies. So, do we have secure supplies for neodymium since you are going ahead with this Quadrant MoU? Sharad Taparia: See, 90% of t he reserves are in China and India also has reserves. IREL is t h e company which supplies the o re and concentrates the oxalate. And we have had discussi o ns with them and government o f India is keen that Indian companies should set up and they will support by way of raw mater i al. But however, our plan is that we will not depend on a sin g le source, we will keep multipl e sources of raw material, international as well as domestic. Tha t is the plan.

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Vivek Seth: One more q uestion. With this Tesla entering into India, are you seeing any business opportunities ?

Sharad Taparia: There are op p ortunities with Tesla coming into India. There will be opportunities for PML. Moderator: Thank you. T he next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Ankit Gupta: So my first q uestion was on the energy meter side, especially on the do m estic side. So we normally in o ur earlier calls and interactions have indicated that the dome s tic market on the energy meter side, the kind of margins offered by some of our customers is not as per our expectations. But now, as mentioned in our initial comments and in the pr e sentation, we are seeing good traction on the domestic energy meter side. So, has there anything that has changed and b ecause of increased orders as well as some restrictions on imp o rts, we are seeing like these cus t omers offering a higher margin? Sharad Taparia: Each custom e r has their own design and depending on the design, we see t h e prices that they are willing to accept. And in some of the cases, it is difficult to supply at th o se prices. In some of the cases, w e are okay to supply at those prices. So our existing custom e r, where we were already supp l ying, there the demand has increased and there we are goi n g ahead. But the margins are d efinitely lower as compared to international market. And we a re also evaluating some newer products, some integrated products where particularly for i m port substitution, there we find that market can be a good market.

Ankit Gupta: There, we ca n get relatively higher margins compared to what we have? Sharad Taparia: There may b e better margins because they are imported products.

Ankit Gupta: My second q uestion was on the module front. You know, modules curre n tly are, since we started our j ourney towards, forward integrating into modules, since they are in the development p hase, their contribution is pretty low currently. And you're say i ng next year we'll see some dec e nt breakthrough in the module segment. So let's say over the n e xt 2-3 years, how do you see c o ntributions from the modules in our overall revenue? And ap a rt from the value addition that w e do on the module side, do you think our margin in the mod u le segment will be more than ou r existing margins currently?

Sharad Taparia: The modules business will definitely, as a proportion of the automotiv e business, it will increase. Ho w fast it will increase depends on the execution and the star t of the project as nominated b y the customer. So each design, they nominate on which yea r it will start. And then if they d o not have any delays, then it goes ahead. And also approvals h ave to happen and there are ma n y steps. So different projects are there in different stages. So proportion of the module busi n ess will increase. Regarding the margins, again, product to pro d uct, in case where there is a v e ry high metal content or raw material content, the margi n s are lower as a

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

percentage. I n case where the value addition is very high, so processing cost is very high, there the margins a r e better. So very, very subjective, depending on product to pro d uct.

Ankit Gupta: And then, l a st question was on the customer addition side. In the firs t half, how many customers ha v e we added? And how has been the inquiry pipeline for us fr o m our existing as well as new customers? Sharad Taparia: So, see the c ustomer addition, I mean there are multiple projects going on. So customer addition, wh e n you say, I am assuming that you are talking about commerci a l supplies, starting of commerci a l supplies. So those may be about, may be 2-3 customers we m ay have added in this quarter m ay be. But each new project is in a different stage. So we w i ll keep adding, as and when ea c h month we will keep adding a few more. Sukhmal Jain : There are cas e s where the new products are being supplied to existing custo m ers. Sharad Taparia : New inquirie s from existing customers that is also happening. Ankit Gupta: In your open i ng remarks, you had mentioned that some of the costs being sent through P&L which will r e sult in some break throughs or additional revenues in FY 2 5. So if you can elaborate on t his and how much such expenditures are being used currently? Sharad Taparia: The main co s t is due to added depreciation and also cost related to our su b sidiary which we formed for w h ich no revenues have started as yet. But the depreciation has i n creased by almost about Rs. 1 c r ore and additional cost related to subsidiary in the quarter 2 is a bout 30 lakhs and those are the m ain costs and there are some administration costs also. Moderator: Thank you. The next question is from the line of Vivek Seth, who's an invest o r. Go ahead. Vivek Seth: I have two m o re questions. One is that there is a lot of push on the e-waste r e cycling. So do we see recycling for the threat to the revenue stream in anyway in terms of ma g nets? Or it will be an aid to us? Sharad Taparia: No, in terms o f the magnet, actually, recycling is a good thing happening th a t will increase the availability o f raw material. So it is not a threat. In fact, it is a good develop m ent. Vivek Seth: One more question. A lot of companies are doing CAPEX for drone and a e rospace industry. So are we se e ing any inquiries or are we already a supplier to any of the c ompanies without naming it? Sharad Taparia: Yes. So in fa c t, our parts are going in some of the aerospace application. F o r example, Aditya L1 has PML 3 parts inside. And also in the Chandrayaan project for the na v igation, PML has supplied so m e parts. So there are some applications that we do and other aerospace related materials, we are having some inquiries for alloy business.

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Moderator: Thank you. T he next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead.

Two questio n s. One is on super alloys part. So typically what we are doi n g for most of our businesses is that we do engineering and design and we customize most of that we do engineering and design and we customize most of t he products. So in super alloys p art, are these off-the-shelf kind of a product which are sold i n open market or again, these a re kind of custom made for each of the clients? How does it wo r k?

Dhwanil Desai: Two questio n s. One is on super alloys part. So typically what we are doi n g for most of our businesses is that we do engineering and design and we customize most of that we do engineering and design and we customize most of t he products. So in super alloys p art, are these off-the-shelf kind of a product which are sold i n open market or again, these a re kind of custom made for each of the clients? How does it wo r k? Sharad Taparia: So these are n ot customized. These are standard chemistry alloys which ar e used worldwide. And the req u irement here is that we have to produce alloy with very h i gh purity. So the process is q u ite difficult to accomplish, but these are standard alloys. M ost of them are standard allo y s. In some cases customers want to experiment and develop n e w alloys but since the furnace h as capability to produce all types of alloys, this is possible w ith our equipment that we have.

Dhwanil Desai: And I think a gain probably you alluded to this, other than domestic meteri n g market, how is the internatio n al energy meter market is looking because when we hear the c onference call for some of the c ustomers, I think they are very upbeat, their order book at a v ery high level. So any update o n that, how is the traction in that market? Are we getting n ew models, new projects? An y update on that? Sharad Taparia: That market c urrently for us is stable. There is no significant change there. B ut we are getting inquiries for new products in different sources. For example, there are multinational companies. T hey have plant in one part of the world. We are getting inqui r ies from the other plants also fo r different products, that is happening. But the overall demand i s stable. Dhwanil Desai: And any upd a tes on gas meter sir? Sharad Taparia: Gas meter co n tinues to be on the end of life and we are still supplying but it w ill slowly be end of life. That p articular model what we are supplying. Moderator: Thank you. T he next question is from the line of Ananth Shenoy from AS Capital. Please go ahead. Ananth Shenoy: So firstly, on the CAPEX side, you mentioned on the alloy side, we have a lready done Rs. 8 crore CAPE X . And on the joint venture, we have done around Rs. 4 crore C A PEX. So overall, for this year, what is the plan for the overall CAPEX? And for the next year also, can you talk about the CA P EX plan specially in the joint venture? Sharad Taparia: This year ov e rall, our plan is about Rs. 15 crore to Rs. 18 crores of CAPE X and then over a period of 2 y e ars, there will be additional CAPEX on the land and building f or the new factory that we will s e t up. Ananth Shenoy: For next year , what CAPEX is planned?

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

Sharad Taparia: For the next year? Apart from the land and building, currently we hav e not planned the CAPEX item s we have not planned as of now, but there are directions. For e xample, the alloy business, depending on how quickly we fulfill our capacity, we will multi p ly it. So we may, again, add s ome more equipment there. And similarly, specific proje c ts, we may add equipment th e re. But that depends on project to project. Ananth Shenoy: The Rs. 15 c r ores to Rs. 18 crores that you mentioned, these two are alloys. Is mostly towards the alloys se g ment? Sharad Taparia: No, this is t o wards all the projects. Rs. 8 crores towards alloys and bala n ce towards other projects. Ananth Shenoy: And in the l a st call, you mentioned 20% to 25% growth this year. So do y ou think we will stick to that o r because you have seen good traction in energy meters, what kind of growth or sales will be c ampaigned? Sharad Taparia: We were ex p ecting that there are some push out of orders from the EV side, so that may impact a littl e bit on the total growth. So I can't give you any number right n o w, but it may be a little lower than that. 75 seems to be a better growth, I would say. Moderator: Thank you. N ext question is from the line of Gaurav Agarwal, who is an i n dividual investor, please go ahead. Gaurav Agarwal: So my questi o n is in half year FY24, the main revenue of our company is co m ing from EV and smart meters. Is my understanding correct? Sharad Taparia: For half year , about 43% is from the energy meter segment and about 37 % is from the auto, balance is ot h ers. Gaurav Agarwal: So 43% is fr o m the smart meters and 37% is others? Sukhmal Jain: 37% from E V . Sharad Taparia: EV and auto m otive but 43% is total energy meter segment including the s m art meter. That is export plus d o mestic put together. Gaurav Agarwal: And in 37%, h ow much will be the EV? What portion will be the EV? Sharad Taparia: About 90% w ill be EV. Moderator: Thank you v e ry much. As there are no further questions from the participa n ts, I now hand the conference o v er to Mr. Sharad Taparia for the closing comments. Please go a head, sir. Sharad Taparia: Thank you e v eryone for participating in the call. Your questions are impo r tant to us and we strive to be as transparent as possible in our investor communications. If there are any

Permanent M agnets Limited Nov e mber 10, 2023

==> picture [149 x 31] intentionally omitted <==

==> picture [75 x 31] intentionally omitted <==

unanswered q uestions, please get in touch with our Investor Relations team to take it forward. Thank you v e ry much. Happy Diwali to everyone.

Moderator:

Thank you v ery much. On behalf of Permanent Magnets Limited, t h at concludes the conference. T hank you for joining us, and you may now disconnect your lines.