Dear Shareholders/Stakeholders

Reflecting on the past fiscal year, we recognise that challenges have come forth alongside abundant opportunities. Our commitment to seizing these opportunities remains firm, driven by our focus on the fundamental pillars of our operations – iron, copper, and gold. We are actively engaged in various conversion projects, reflecting our optimism for future growth. Coupled with these futuristic operational strategies, we have adopted a modular approach, which signifies strategic evolution. Internally, our commitment remains strong, even amid challenges such as the recent US anti-dumping issue. We are prepared to combat such obstacles with resilience and action.

This perseverance and commitment align perfectly with the theme of our Annual Report – ‘Consistently Unique.’ We strive to balance tradition with innovation, setting new standards of excellence through quality and reliability. By earning the trust of our customers and stakeholders, we consistently deliver superior products while exploring new growth avenues.

Our Financial Performance

I am pleased to announce that our revenue for the full year reached to ₹ 4,772 Crores, with a notable realisation of approximately ₹ 160.5 per kilo. Our EBITDA for the year stood at ₹ 1,617 Crores, marking the highest ever in our Company’s history and reflecting a remarkable EBITDA margin of 33.88%. Additionally, our Profit after Tax (PAT) for the year reached ₹ 1,137 Crores. We closed the year at 2,97,345 Tonnes, marking an increase from 2,91,342 Tonnes the previous year, representing a year-onyear growth of approximately 6,003 Tonnes. Overall, it has been a recordbreaking year for us, demonstrating our firm commitment to growth and financial excellence.

Performance Highlights

Our brownfield expansion projects in the non-grinding media business are progressing as planned. Our total expenditure for these expansions is ₹ 200 Crores, out of which we have already invested ₹ 110 Crores, with the remaining amount to be utilised in FY 2024-25. These endeavours involve a mix of capacity balancing equipment, land acquisition for storage facilities, and the reorganisation of older plants in Odhav. Such initiatives promise greater efficiency, a streamlined supply chain, and operational debottlenecking. Furthermore, an additional capacity of 20,000 Tonnes has been achieved as a result of these efforts. Our ongoing brownfield expansion project for grinding media with a capcity of 36,000 MT is progressing well and expected to come in production by December 2024.

In line with our commitment to sustainability, we are making substantial investments in renewable energy. This year, we are embarking on an additional Hybrid (Solar and Wind) Project, contributing 33 MW WTGs under the group captive scheme. This translates to an effective power factor of approximately 60% to 70%. with an investment ranging from ₹ 30 to ₹ 40 Crores. While implementation will be completed by end of FY 2024-25, the full impact will be realised in the following year, further strengthening our renewable energy portfolio.

We are currently navigating a challenging process involving antidumping and counter vailing duties initiated by some of the authorities. This action stems from a petition filed by our competitor. Despite these challenges, we remain committed to defending our business interests.

CSR Initiatives

At AIA, we uphold our commitment to corporate social responsibility through active citizenship and sustainable practices. Our initiatives include the Gyan Deep Programme, which focuses on education, and the AIA CSR Foundation, dedicated to addressing educational challenges in marginalised communities. Through the Chetana Empowerment Foundation (CEF), we instill 50 core values such as respect, compassion, and honesty among students in grades 5 to 8. Furthermore, we prioritise enhancing healthcare services through partnerships with esteemed institutions like the Care Institute of Medical Sciences Foundation, Dr. Jivraj Mehta Smarak Health Foundation, Nihar Charitable Trust, and Gujarat Cancer Society. In collaboration with the ARC Foundation, AIA has facilitated the planting of approximately 1,00,000 trees across various locations. Additionally, AIA collaborates with Darpana to introduce Indian folkdance lessons to children aged 8 to 14 attending underprivileged schools. Moreover, through our partnership with the Akshaya Patra Foundation, we provide mid-day meals to school children in Government and Government-aided schools

Way Forward

We maintain our stance on all fronts, aiming to increase sales in line with the opportunities available to us. As we explore numerous opportunities, particularly in transitioning from forged to chrome, our modular approach remains strategic – reflecting our commitment to growth rather than deferment. Despite challenges such as the antidumping issues, we remain internally optimistic and will address obstacles with determination.

Closing Note

I want to express my heartfelt gratitude to our shareholders, stakeholders, and the entire team for their consistent dedication and resilience throughout this year. Despite facing challenges, we have remained undeterred in our commitment to growth and excellence. With a strategic vision and teamwork, we are ready to face the challenges that lie ahead.

Thank you for your trust and support

Best Regards,

Bhadresh K. Shah

Managing Director,

AIA Engineering Limited