Dear fellow shareholders, 2024-25 was a better fiscal for our Company (compared to 2023-24) although not the best. The numbers below are on consolidated results basis. Sales: ` 5,583 cr, hitherto highest, up by 18% (17% volume) EBITDA: ` 1,022 cr, hitherto highest, up by 47% EBITDA margin: 18%, higher by three percentage points (earlier best 27%) PBT: ` 692 cr, higher by 54% (earlier best ` 882 cr) RoCE:14%, higher by one percentage point (earlier best 34%) The Board has recommended a dividend of 250% (2023-24: 200%) with a payout of 16% (2023-24: 15%). Meanwhile, team Atul is continuing its pursuit to surpass the previous bests. Global nominal GDP of US$ 110.55 t grew at 3.3% in 2024 (same as 2023) despite the ongoing economic, political and social uncertainties. India ranked fifth in GDP after USA, China, Germany and Japan GDP of USA and China were US$ 29.2 t and US$ 18.8 t GDP of Germany and Japan were US$ 4.7 t and US$ 4.1 t GDP of India was US$ 3.9 t (soon expected to rank fourth) GDP of India must grow at 7.8% to be a developed economy by 2047. Our Company will contribute in its own small way in this endeavour. There are three big changes consistently and significantly reshaping the profile of chemical industry (as is true for many other industries). Technology | Artificial intelligence (AI) and other technologies Sustainability | E + ESG* * Economic + Environmental, Social and Governance Tariffs | Protection to local manufacturers These evolving trends reflect the need to align | transform to be in step with time. We are identifying and implementing relevant initiatives. Global chemical industry grew at 3.9% in 2024, faster compared to 0.3% in 2023. India ranked sixth (after China, USA, Germany, Japan and South Korea) Size of chemical industry of China and USA was US$ 2.4 t and US$ 633 b Chemical industry of Germany – size of which was US$ 236 b – grew by 2.5% Chemical industry of Japan – size of which was US$ 158 b – de-grew by 1% Size of chemical industry of India was US$ 220 b (thus there is a huge scope to grow) Almost all manufactured products are enabled by chemistry. Our Company is well placed to tap into the emerging opportunities. Letter to the shareholders The newer entities under our Company – established with specific logic – are gradually improving their performance. Atul Products (100% owned) increased sales from ` 65 cr to ` 353 cr. It decreased loss and expects to be PBT positive in 2025-26. Sales of Anaven [50-50 joint venture (JV)], increased from ` 73 cr to ` 86 cr. It became EBITDA positive. Atul Rajasthan Date Palms (74-26 JV) is still perfecting the technology. It expects to gradually better its performance. Honourable Chief Minister of Gujarat, Shri Bhupendra Patel, unveiled Valsad Institute of Medical Sciences on February 3, 2025. The established entities under our Company have increased sales although not always profit. Atul Bioscience (100% owned) increased sales from ` 132 cr to ` 137 cr. It obtained USFDA for its Ambernath site. DPD (98% owned) increased sales from £ 4.7 m to £ 5 m. It has the potential to increase sales by 50%. RACL (50-50 JV) achieved its highest sales of ` 167 cr and PBT of ` 36 cr. It too has a good scope to raise its sales. Amal (49.85% owned), on a consolidated basis, achieved its highest sales of ` 135 cr and PBT of ` 33 cr. All the entities, subsidiary, JV and associate, are expected to steadily grow and boost the consolidated performance of our Company. Our Company and its subsidiary, JV and associate entities are strengthening their financial position to remain resilient: Our Company continues to remain debt-free. It had cash surplus of ` 691 cr (net of borrowings) as on March 31, 2025. Atul Bioscience decreased its total debt from ` 55 cr to ` 45 cr. Its debt-equity ratio improved further, from 0.8 to 0.6. DPD and Amal fully repaid their balance loans of ` 7 cr and ` 24 cr. Both the entities were cash surplus as on March 31, 2025. RACL continues to remain debt-free. It was cash surplus as on March 31, 2025. Atul Products (AP) and Anaven have debt of ` 151 cr and ` 127 cr. The debt of AP is under the state Government incentive scheme. One of the key objectives is to increase capacity utilisation and realise further consolidated sales of ` 2,500 cr from the existing investment. We continue to be guided by the five enduring and persistent mandates articulated through the years: Achieve excellence in R&D, technology and manufacturing Pervade technology (AI and other) across all functions (Steadily) enhance people productivity; remain lean on fixed cost Conserve cash (measure performance by free cash flow) Work closely with customers to identify big ideas, but start small We are identifying and implementing multifarious initiatives on an ongoing basis. 14 Integrated Annual Report 2024-25
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