Indo National Ltd Management Discussions

INDUSTRY STRUCTURE - DRY BATTERY BUSINESS:

The battery Industry grew 3% for the year 2024-25 . Your company has grown 3% in value. We identified improving urban coverage, alkaline growth and focus on modern trade & E-com to grow in this category. D size is continuing its declining trend. The raw material costs and ocean freight all through the year was on the higher side and the Dollar fluctuations severely impacted your company margins.

NON - BATTERY CATEGORY:

Your company witnessed a growth in terms of both value and volume in LED lighting, Mosquito bats and Rechargeable ashlights. 39% of revenue contribution is from non-battery categories. Launch of Mosquito repellent under the brand name " Swooper " has led to diversi cation into homecare category and contributed to 2% of the total topline. Your company has comprehensive plans to grow in each of these categories around products, go-to-market and brand building.

OUTLOOK ON OPPORTUNITIES: Batteries:

It has been observed both urban and rural India will be driving consumption in this category. Your company has plans to strengthen urban distribution and make strong expansion into modern trade and e-commerce platforms. Alkaline as a segment has been fastest growing at 22%. Your company has Launched alkaline range named Nippo THOR as part of the entire urban focus.

Non-Batteries:

Last 5 years, your company made LED business as the second largest category by making good inroads. Your company will continue to focus on LED across India through distribution expansion, channel management and new product introductions like Spotlight & Fixtures. Rechargeable torches at economical price points is one way to accelerate growth and this opportunity is being addressed with the new RC launches. With mosquito swatters and mosquito repellents, your company is making way into a large " home-care " segment. Your company will invest into new product offerings and focused distribution to drive growth in this category.

SEGMENT WISE / PRODUCT WISE PERFROMANCE BATTERIES :

Your company achieved a revenue of Rs. 291 crores for the year 2024-25 as against Rs.282 crores for the year 2023-24 reflecting an increase of 3% over last year. Nippo Thor, our new alkaline battery has grown by 3 over last year, growing the overall Alkaline powerful category.

FLASH LIGHTS:

Your company achieved a revenue of Rs. 18.1 crores for the year 2024-25 as against Rs.19.7 crores for the year 2023-24 reflecting a decrease of 8% over last year.

Rechargeable Torches continue to grow faster while Battery operated Torches remained at.

LIGHTING AND ELECTRICAL PRODUCTS:

Your company achieved a revenue of Rs. 115.6 crores for the year 2024-25 as against Rs.136.9 for the year 2023-24 reflecting a decrease of 16% over last year. Introduction of new SKUs in LED segment led to 8% volume growth, while the price fluctuations led to value decline.

MOSQUITO BATS:

Your company achieved a revenue of Rs. 20.4 crores for the year 2024-25 as against Rs.22.4 crores for the year 2023-24 reflecting a decrease of 9% over last year. Launched Shield, a new economy mosquito bat to increase reach in both Urban & Rural towns.

NIPPO SWOOPER:

Swooper Mosquito repellant delivered Rs.10 crores in 9 months launch, that established our entry into Home care category.

THREATS RISK AND CONCERNS BATTERIES:

Shifting of battery operated to rechargeable devices, conversion from Zinc carbon to Alkaline will pose new challenges. However, by taking market share from competition and focussing on alkaline your company will look for fresh growths. The focus should be on managing the raw material costs as a large chunk is being imported with many external factors.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

The Company has adequate Internal Control procedures commensurate with its size and nature of the business. These business control procedures ensure efficient use and protection of the resources and compliance with the policies, procedures and statutes. The Internal Control system provide for well- documented policies, guidelines, authorizations and approval procedures. The Internal Auditors RGN Price & Co. had carried out Internal Audit extensively throughout the year. The prime objective of such Audit is to test the adequacy and effectiveness of all Internal Controls laid down by the management and to suggest improvements, wherever necessary.

FINANCIAL PERFORMANCE:

The total turnover of the Company for the year under review was Rs.45797.12 Lakhs as compared to Rs.46607.93 Lakhs in the previous year. The profit after tax for the year under review is Rs.101.39 Lakhs. as against Rs.670.04 Lakhs in the previous year.

HUMAN RESOURCES:

The Company regards its human resources amongst its most valuable assets and proactively reviews and evolves policies and processes to attract and retain requisite skill-sets covering technical and managerial functions through a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its people. As of March 31, 2025, the number of employees stood at 476 covering all locations compared to 535 as of March 31, 2024 .

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS