Walchandnagar Industries Ltd — Earnings Release 2024

Feb 1, 2024

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Ref. No. : WIL: SEC: 2024 Date : February 01, 2024

National Stock Exchange of India Ltd. Corporate Action Department Exchange Plaza, 5th floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East) Mumbai 400 051. Fax :26598237/38, 66418126/25/24 SCRIP CODE : WALCHANNAG

BSE Ltd. Corporate Relations Department 1st floor, New Trading Ring, Rotunda Bldg P.J. Tower, Mumbai 400 001. Fax:: 22723121/2039/2037 SCRIP CODE : 507410

Dear Sir(s),

December 31, 2023

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of Press Release titled “ Walchandnagar Industries Limited Press Release – Results for the quarter ended December 31, 2023 ” is annexed with this letter.

A copy of the said Press Release is also being uploaded on the website of the Company www.walchand.com.

We request you to kindly take the same on record.

Thanking you,

Yours faithfully,

For Walchandnagar Industries Ltd.,

GIRIRAJ Digitally signed by GIRIRAJ SHARAN AGRAWAL DN: c=IN, o=PERSONAL, title=5216, pseudonym=2244a53b316a48fcb21a15e09beadf76, 2.5.4.20=d377a37a9c44bd0db5b3d17dd82 SHARAN 1ed935afdab89d983731b99c7c8e717112652, postalCode=400034, st=Maharashtra, serialNumber=5a4130bf9a70610c0fd108b dfb582c7679b4082096434107dba690b8c4 AGRAWAL 821e18, cn=GIRIRAJ SHARAN AGRAWAL Date: 2024.02.01 19:01:48 +05'30'

G. S. Agrawal Whole Time Director & Company Secretary DIN: 00404340

Encl: As above

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WALCHANDNAGAR INDUSTRIES LIMITED

PRESS RELEASE

RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2023

Mumbai, February 01, 2024: Walchandnagar Industries Limited (“WIL” / “Company”), a renowned engineering company known for its design, engineering & high complex precision manufacturing capabilities with operational legacy of more than 114 years, announced its results for the quarter ended December 31, 2023.

Mr. Chirag C. Doshi, Managing Director & CEO, Walchandnagar Industries Limited, shared “The quarter has been challenging with revenue performance on the lower side primarily due to workers strike at our Walchandnagar Plant (from November 22, 2023 to January 03, 2024). As a result, the Company lost revenue of around Rs. 30 Cr. & the overall profitability was also impacted. We remain committed to our integrated growth strategy in Defence, Aerospace and Nuclear (DNA) industry in India. We are confident that the growth strategies towards the business will help us to navigate and deliver balanced growth and create value in the quarters ahead.”

Financial Highlights:

Financial Highlights:
						(Rs. Lakhs)
Partculars	Quarter ended 31.12.2023	Quarter Ended 30.09.2023	% Change	Year to date 31.12.2023	Year to date 31.12.2022	% Change
Total Revenue
- Revenue from Operatons	5,586	8,792	(36%)	21,097	20,999	0%
- Other Income	674	384	75%	1,698	1,935	(12%)
EBITDA	(123)	894	(114%)	1,280	1,867	(31%)
EBITDA Margins (%)*	(2%)	10%		6%	9%

• EBITDA Margin % calculated as % of Revenue from Operations.

Financial Performance:

1. This quarter’s revenue performance is low due to workers strike at Walchandnagar Plant (from November 22, 2023 to January 03, 2024). The Company lost revenue of around Rs. 30 Cr and profitability was also impacted. This in turn resulted in increase in operating level loss in Q3.

2. EBITDA for Q3 has reduced to 2% in comparison to 10% of Q2, which is mainly due to revenue loss of around Rs. 30 Crores due to Strike at Walchandnagar Plant.

3. EBITDA at YTD Dec’23 level was reduced from 9% to 6% YOY basis, mainly because of change in sales mix of the strategic & non-strategic businesses and THE labour strike.

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Business Review:

• The Company is engaged in segments namely Heavy Engineering, Foundry, Machine shop and others. These segments have been reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.

• With the Government of India increasing initiatives towards “Make in India”, the Company continues to be very positive about its growth potential in the areas of Defence, Aerospace and Nuclear (DNA) industry in India.

• The Company is well positioned to capitalize on the upcoming opportunities in the DNA Sector. The company has already secured orders worth Rs. 26,844 Lakhs for manufacturing & supply of Reactor Headers, PDHRS Condenser, Calandria Assembly & End Shield from Nuclear Power Corporation of India Limited (NPCIL).

• The order book in hand stands at Rs. 92,578 Lakhs as on 31[st] December 2023 (includes orders worth Rs. 31,000 Lakhs which are on hold from customer’s end).

• Company also has a healthy order book pipeline and the Company expects to close many of these orders in Q4 and Q1 of next year.

• In Q3, the Company has demonstrated continued progress on the incomplete projects of TNEB. Two more projects namely MRK-Sugar & MRK-Cogen are commissioned in December, 2023. With this, the total number of projects commissioned in Sugar Modernisation are 11 out of total 12 projects and in case of Cogen, it has reached 7 out of a total of 12 projects.

For more information write to: investors@walchand.com

Disclaimer: Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

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