Indo National : Press Release

Indo-National Ltd.

Announces Q1 FY23 Results

Consolidated Revenues higher by 24.5% Y-o-Y at Rs. 1,307 million

Chennai, August 17, 2022: Indo-National Ltd. (INL) is a leading consumer goods Company with a portfolio comprising dry-cell batteries, flashlights, LED lights, Mosquito bats, DORCO Blades and electrical accessories. Through its subsidiaries and step-down joint ventures, it has also emerged as a global supplier of composites to the railway, aerospace and defense industries. The Company has announced its financial results for the quarter ended June 30, 2022.

Financial Highlights - Q1 FY23

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Management Comment

Commenting on the performance, Mr. Aditya Reddy, Jt. Managing Director said:

"We have started the year on a positive note, with revenue growth of 25% Y-o-Y in Q1FY23. This has been driven by pricing actions in the battery business and robust volume performance across our non-battery products portfolio. Additionally, improved turnover was registered in the composites business of our subsidiary Company Kineco Ltd.

During Q1FY23, the Company has benefited from the wider offerings across product lines of Torches, Mosquito Bats and LEDs. Additionally, considerable progress was made on strategies to enhance the distribution network, augment the share of B2C business and divisionalize the sales force.

The persistent inflationary inputs continue to impact profitability. Recent pricing actions in the battery business only partially cover the increase in cost of inputs. We are closely monitoring the market situation and input prices to evaluate further pricing actions.

He added, "Going ahead, we expect to sustain the growth momentum in the business as we build on the progress from multiple initiatives implemented. The resulting operating leverage combined with pricing actions being evaluated should enable us to drive an improvement in profitability. We are confident that an elevated growth trajectory combined with the inherent strengths of this Company developed over four decades will lead to meaningful value creation for all stakeholders."

Key Developments / Operational Highlights of Q1 FY23

1. The Battery business has witnessed volume headwinds due to pricing actions, lower usage of COVID gadgets and increase in penetration of rechargeable electrical products.)
2. The Non-battery business comprising products such as Torches, LEDs and Mosquito Bats has benefited from wider product offerings, addition of SKUs and increased coverage of outlets. Further, the Company has been undertaking consistent steps to divisionalize its sales force i.e. induct specialized sales personnel for the battery and electrical products portfolio respectively rather than generalized sales personnel for all products. This is a key driver of the enhanced traction in the non-battery business.
3. Recently launched products in the torches, Mosquito bat & electrical accessories verticals have received positive response from customers. The Company aspires to launch few more premium SKUs in the coming quarters to enhance the portfolio of electrical accessories. Company is planning to launch the down and panel lights in Q2 to provide a larger portfolio to its trade partners.

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4 Considering the consistent growth of Kineco and the comfort derived by the bankers over a period of time, in meeting its servicing commitments, the Corporate Guarantee of Rs. 40 crore given to HDFC Bank against Kineco's limits which was reduced to Rs. 20 crore in the previous quarter, was further reduced to Nil during Q1FY23.

- ENDS -

About Indo-National Limited

Indo-National Ltd. (formerly, Nippo Batteries Company Ltd.) is a leading manufacturer of Dry-cell Batteries in India. Headquartered in Chennai, it is the second-largest player in the industry, with a production capacity of 800 million batteries per annum. Leveraging on its established distribution network, the Company also offers Flashlights (torches), LED lights, Mosquito bats and Electrical Products.

INL was incorporated in 1972 as a joint venture (JV) between the late Mr. P Obul Reddy and Panasonic Corporation (leading Japanese electronics company, which subsequently exited the JV in 2012). It has a dry-cell battery manufacturing facility located in Tada Kandriga Village, Nellore (A.P) and has also set up a 4.6 megawatt solar power plant in Polepally village, Telangana.

INL holds a 51% stake in Kineco Ltd., which manufactures composites for Railways, Industrial applications, and defence. Kineco further holds a 51% stake in Kineco Kaman Composites Pvt Ltd which is a joint venture with Kaman Aerospace Group, USA (A NYSE listed entity), to manufacture advanced composites for the medical and aerospace industries.

INL is listed on the BSE and NSE in India with stock code '504058' and 'NIPPOBATRY' respectively. It enjoys high credit ratings of 'A1' for short-term and 'A' for long-term by

CRISIL.

Corporate Identification No: L31909TN1972PLC006196

Regd. Office: No.609, Mount Road, Lakshmi Bhawan, 4th Floor, Chennai - 600 006. Tamil Nadu

For more information about us, please visit www.nippobatteries.comor contact:

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Indo-National Ltd will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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