IFB Industries Limited

96.8%

nded 30th June, 2021 Parameters Ql FY 2021-'22 (~ in crore) L i Total Revenue f556.l 7 +96.8% EBDITA Margin % (5.4) +488 bps Receivables f229.55 +67.7% Free Cash Flow f(54.33) -1

488 bps

Ql FY 2021-'22 (~ in crore) L i Total Revenue f556.l 7 +96.8% EBDITA Margin % (5.4) +488 bps Receivables f229.55 +67.7% Free Cash Flow f(54.33) -194.7% l I I I Revenue from O

67.7%

i Total Revenue f556.l 7 +96.8% EBDITA Margin % (5.4) +488 bps Receivables f229.55 +67.7% Free Cash Flow f(54.33) -194.7% l I I I Revenue from Operations f552.41 +97.7% Ne

194.7%

% EBDITA Margin % (5.4) +488 bps Receivables f229.55 +67.7% Free Cash Flow f(54.33) -194.7% l I I I Revenue from Operations f552.41 +97.7% Net Profit Margin {7.6%) +755 bps

97.7%

5 +67.7% Free Cash Flow f(54.33) -194.7% l I I I Revenue from Operations f552.41 +97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps

7.6%

f(54.33) -194.7% l I I I Revenue from Operations f552.41 +97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6%

755 bps

-194.7% l I I I Revenue from Operations f552.41 +97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.5

65.4%

from Operations f552.41 +97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.50) +0.9% Accounts Payable f

30.7%

s f552.41 +97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.50) +0.9% Accounts Payable f643.63 +59.97

370 bps

+97.7% Net Profit Margin {7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.50) +0.9% Accounts Payable f643.63 +59.97% Operatin

3.6%

{7.6%) +755 bps Inventories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.50) +0.9% Accounts Payable f643.63 +59.97% Operating Cash Flow f37.54 -146.

0.9%

entories f482.29 +65.4% RONW (30.7%) +370 bps EBDITA f{30.18) -3.6% EPS f{l0.50) +0.9% Accounts Payable f643.63 +59.97% Operating Cash Flow f37.54 -146.3% Note Growth/degrowt

“Borrowing - LoanTiee ECB Rupee Term Loan - - - Rupee Term Loan Working Capital Total ----· Value 113.28 40.81 - 35.00 59.71 248.80 -- Banker Standard Chartered OBS Bank Pu~ose AC Project Engineering Division Tenure Five Years Five Years --- - ---- -- - - - - - Stamping Division Seven Years ICICI Bank SCB/DBS - 1 (tin crore) Your Company made two prepayments last year-one in Dec '20 to DBS of ~22.91 crore and another of t28.32 crore ($4 million) in Jan '21 to SCB.”

“• Technological advancements in this segment and the rise in consumers' disposable incomes are expected to drive the home appliances market going forward.”

“We expect pent up demand during the July to September period to help increase sales.”

“Retail experience enhancements will be undertaken on a pilot basis in key cities with a continued focus on increasing conversions, footfalls and ticket value.”

“• The CV demand is expected to improve going forward as investment in infrastructure increases.”

“This will be driven through extraction from the distribution network as well as increases in revenue shares from large key accounts.”

“The primary enablers are the new models in the 8 Kg range and additional manning at the counters-actions that will be fully completed by the end of the 2nd Quarter.”

“The volume potential going forward from the existing market reach, as well as the current direct and indirect channels, is high and will be realised in the 2nd and 3rd Quarters of the new fiscal year.”

“The new Xeros technology washer extractors will be launched in the 2nd Quarter and will offer significant savings in water, power and energy.”

“We expect a turnaround in demand in the 2nd and 3rd Quarters, including tender-based sales, for which we have a healthy order pipeline.”

Break-up of borrowing is as follows

1

The break up of the same is given

1

Engineering Division

1

Market Growth

1

Break-up of borrowing is as follows

Borrowing - LoanTiee ECB Rupee Term Loan - - - Rupee Term Loan Working Capital Total ----· Value 113.28 40.81 - 35.00 59.71 248.80 -- Banker Standard Chartered OBS Bank Pu~ose AC Project Engineering Division Tenure Five Years Five Years --- - ---- -- - - - - - Stamping Division Seven Years ICICI Bank SCB/DBS - 1 (tin crore) Your Company made two prepayments last year-one in Dec '20 to DBS of ~22.91 crore and another of t28.32 crore ($4 million) in Jan '21 to SCB. The residual old term loan amount of t2.50 crore from DBS was also cleared last year and the principal amount of t6.28 crore against the new DBS term loan was also paid off. These payouts brought down the term loan amount to tl 89.09 crore, as of 30 June, '21, from its original figure of t249. l O crore. !OSI Financial Report-Quarter Ended 30th June, 2021 Against the aforesaid borrowing, as of 30 June, '21, our Cash and Bank Balances (including investments in Mutual Funds) were f346.06 crore. Hence, the Company remained debt f

The break up of the same is given

1 Cash and Bank Balances tl 16.31 crore Capital Gain Deposits tl 9.87 crore Investments in Mutual Fund f209.88 crore Total t346.06 crore We further have inefficiencies of ~100 crore in working capital as of 30 June, '21, because of low offtake in the 1st Quarter, due to low sales in April and May, along with a complete washout in the AC category. The markets witnessed a positive sentiment after they re-opened in mid-June and the revenue growth is now healthy. arket Cond't~ons Home Appliances Division • COVID-19 has disrupted the global supply chain of major home appliances and consumer electronic brands. • The second wave of the pandemic induced lockdowns that affected production and distribution as many of our dealers were dosed in May. • However, we have seen some recovery in June '21, once states eased lockdowns and infections started declining. • Technological advancements in this segment and the rise in consumers' disposable incomes are expected to drive the home appliances market

Engineering Division

In the 1st Quarter, the automotive sector saw a sharp decline in sales: 1 • The second wave of the COVID-19 pandemic started in India in March '21 and continued till June '21. • Due to lockdown and night curfew, dealer networks started being paralysed, which slowed our sales. • Increase in steel prices in this Quarter was the highest ever, which resulted in lower margins. The rising price of fuel was also a factor that affected end-customer decisions to buy. • The order pipeline is robust. There are issues with the availability of special grade steel, for which we have lost sales in last few Quarters. We are trying to address this issue. We need to service the order book in spite of difficulties such these. Needless to say, further instances of COVID- 1 9 may cause a disruption or drop in sales.

Market Growth

1 2-wheelers: 178% of the corresponding Quarter of last year 2 4-wheelers: 407% of the corresponding Quarter of last year 3 CV: 265% of the corresponding Quarter of last year High growth in all segments is due to a low base in the corresponding Quarter of last year. 1091 1 Financial Report-Quarter Ended 30th June, 2021 Home App~iances D'vlslon The Division's range of products covers both domestic and industrial application categories. The updates at the end of the 1st Quarter for each of the product categories are given below: • Front Load Washing Machine The range addresses all customer needs and is differentiated in the market based on features, aesthetics and performance. A significant rise in commodity prices led to a steep increase in prices, which was not passed on to customers by the competition, leading to a loss of sales for IFB in the 4th Quarter of last year. Post re-opening, we expected robust sales but the second wave of COVID-19 again affected sales adversely, particularl