NILE Ltd Management Discussions

The management discussion and analysis report sets out developments in the business environment, and the Companys performance since the last report. The analysis supplements the Directors report, which forms part of this annual report.

Lead and Wind Energy are the two divisions of the Company.

Pure Lead and Lead alloys are supplied to manufacturers of Lead acid batteries.

Wind energy generated is sold to Andhra Pradesh Southern Power Distribution Company Limited.

Results of our operations for the year ended 31^st March 2025 (Rs. In lakhs)

The sales to customers in the Lead division increased. Higher demand from battery manufacturers was supported by strong Lead prices and this enabled your Company to record the highest turnover as well as profit in its history.

Your Companys banking arrangements with Kotak Mahindra Bank Limited and HDFC Bank Limited are working satisfactorily, and have resulted in a reduction in finance costs.

There continues to be sustained demand for Lead acid batteries and the companys order book remains strong.

The new Battery Waste Management Rules are in place, and the Extended Producers Responsibility (EPR) credits are being generated. This is expected to channelize more battery waste material to larger formal recyclers like your company. As this process gets further streamlined, the EPR credits market is expected to increase.

Your companys major customer, Amara Raja Energy & Mobility Limited, has set up their own Lead smelter, and their operations have started and will ramp up capacity in a phased manner. Your company continues to explore other markets to make up for the resulting drop in off take from Amara Raja.

The mechanical processing unit operations have been stabilized.

Currently, due to a shortage of feedstock, the processing volume stands at approximately 40 to 50 tonnes per month in a single shift, mostly consisting of scrap batteries from portable electronic devices. The mixed metal oxide (Black Mass) produced from the Phase 1 operations is being supplied to established local companies.

To optimize revenue streams and broaden the market reach, Nile Li-Cycle is actively exploring opportunities for exporting the black mass. This initiative aims to tap into international markets to diversify the customer base and generate potentially higher margins.

In parallel, the Company is getting the facility audited by customers in order to secure long-term feedstock commitments. Furthermore, to facilitate deeper collaborations and explore synergistic opportunities, detailed discussions are being held with companies such as Amara Raja Advanced Cell Technologies Private Limited.

The pilot plant for the second phase, i.e. hydrometallurgy, is now operational.

Details of significant changes in Key Financial Ratios, Net Worth, along with detailed explanations there for:

Your Company has an established system of internal controls for ensuring optimal utilization of various resources. Investment decisions involving capital expenditure are taken up only after due appraisal and review, and adequate policies have been laid down for approval and control of expenditure. Internal Audit is carried out by a firm of Chartered Accountants to ensure adequacy of the internal control systems. The Internal Audit Report is reviewed by the Audit Committee to ensure that all policies and procedures are adhered to, and all statutory obligations are complied with.