IFB Industries Ltd Management Discussions

a) Structure and Developments, Opportunities and Threats, Performance, outlook, Risks and Concerns:

A Review report released by the Ministry of Finance, takes stock of the Indian economy and a variety of sectors including agriculture, trade, digital public infrastructure and climate. Indias economy is projected to grow over 7% in the coming years and become the third largest economy in just three years. Indian exports are in a strong upswing, with its merchandise exports reaching the highest ever at over USD 450 billion in FY 23.

India met its targets of building non-fossil fuel - installed electric capacity. The Public sector capital investment has surged in the last 10 years. Further raising investments, particularly in the private sector, has been key focus area for Government. India continues to remain a preferred destination among foreign investors, owing to its young workforce and large middle-class population. In this regard, the Government has taken several measures such as opening FDI for almost all sectors, promoting policies such as production linked incentive (PLI) scheme and incentivizing long-term investments under the Make in India program. Indias exports have been showing significant upswing. Over the past decade (FY 13 to FY 23 ), merchandise exports have increased by 50 % and service exports by 120 %. The highest-ever merchandise export increased by USD 451.1 billion which was achieved in FY 23. Investment incentives and initiatives taken to ease business compliances and remove policy uncertainties have created an ecosystem for start-ups to nurture. India became the worlds fourth largest stock market in terms of market capitalization by overtaking Hong Kong. Priority areas for future reform include skilling learning outcomes, health, energy security, reduction in compliance burden for MSMEs and gender balancing in labour force.

The adoption of GST has brought in unification of the domestic markets and allowed expansion of the tax base. The reform will further strengthen finances and enable growth-enhancing public expenditures. The role of Artificial Intelligence (AI) may pose a key challenge to the Government in terms of employment in the service sector.

Indias auto component industry is an important sector driving macro-economic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The auto components industry accounted for 2.3% of Indias GDP and provided direct employment to 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of Indias GDP. Indias auto component industrys market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the remarkable growth in demand for Indian auto components, several Indian and International players have entered the industry. Indias auto component industry is broadly classified into organized and unorganized sectors. While the unorganized sector consists of low-valued items and mostly serves the aftermarket category, the organized sector serves OEMs and includes high-value precision instruments. Investing in Indias ACM sector offers several advantages like Skilled workforce, robust supply chain, rising demand, strategic location, government support, improved connectivity, reduced transportation costs, increased market access and opportunities, competition, etc.

As of 2024, the Indian auto component industry is valued at approximately USD 57 billion and is expected to reach USD 85 billion by 2026.

Some prominent Indian Auto Component Manufacturing (ACM) companies include Bharat Forge, Mother Son Sumi Systems and Sundaram-Clayton. Additionally, the Indian ACM sector has attracted major foreign players, such as Bosch, Continental AG, and Magna International who have invested significantly in India to leverage the countrys manufacturing capabilities and market potential. Indias Automotive plan 2026 focuses on making the country a global manufacturing hub for vehicles and Auto Components. Under this plan, the government has allocated USD 10 billion for various initiatives including infrastructure development, skill enhancement and research works. Looking ahead, the prospects for Indias ACM market are promising. The industry is poised to capitalize on emerging opportunities, including the shift towards EVs and the increasing demand for sustainable mobility solutions. India aims to achieve a 30 percent penetration of EVs in its automotive market by 2030, creating substantial growth potential for ACM manufacturers.

Engineering Division

Business environment in FY 2023-24 improved due to decrease in commodity prices, availability of semiconductors etc. The domestic automotive industry is expected to grow at 4-6% level in 2024-25. The demand for P.V segment is expected to grow by 5-6 per cent, two-wheelers likely to grow by 10-12 percent and tractors by 2-3 per cent while C.V to remain flat in FY 2024.

The domestic automotive industry has seen a healthy revival in FY 2024, aided by a recovery in economic activities and increased mobility. The demand sentiments for a majority of the automotive segments remained healthy aiding in improved offiake for the industry participants.

As far as 4W demand is concerned, all OEMs have gone for higher numbers. The 4W demand is expected to continue at the same scale in the current year also due to high waiting period. As far as 2W demand is concerned, the rural demand has picked up after the implementation of OBD1 and OBD2 requirements. Vehicle scrapping policy will lead to an increase in demand for 4W. The demand for EV vehicles is seen mainly in the two-wheeler segment. We will focus on this segment as more localization will take place. However, Global indications are not favourable - the western world is undergoing a recession.

The Engineering business had put in place a strategy to deal with the changing demands of the domestic market and ensured that it developed business from new segments viz. Railways, E.V etc. Products were also targeted for the emerging Electrical vehicle space. The plants adopted TPM to ensure that the journey of operational excellence was taken forward. The stamping business was well integrated into the existing business with a lot of common customers with the fine blanking business and would grow further. Marketing needs to do much more to ensure that the capacity is utilized for Stamping and Fine Blanking.

In FY 2023-24, based on enhanced marketing efforts and improvements in the general business environment, the Division has improved its revenue and margin. The Engineering business grew by 10% over the previous year and the PBDIT grew by 35% over the previous year.

The focus is on increasing plant capacity utilization was sharpened and plant utilization increased in all engineering plants. Business targeted improvement in operations through cost reduction and efficiency improvement measures which led to an EBITDA growth of 35% over last year.

A strategy of pursuing non-auto business was continued and the company booked order of Rs 13.87 Crore of business in non-auto segment. The company increased its focus on the EV and EV neutral segments and booked business worth Rs. 23.13 Cr in these segments.

An ongoing initiative of increasing efficiency of capital employed in the Engineering business also yielded results with the ROCE consistently increasing. The company is actively seeking M&A opportunities for the Engineering Divisions quantum growth, with a focus on finding a suitable target for takeover.

The issues that Engineering Division is successfully addressing include:

1. Strong pricing pressure from customers & competitors.

2. Consistent increase in power cost.

3. Rapid increase in minimum wages.

4. High cost for new machinery & technology.

5. Timely raw material availability and pricing.

6. Fluctuations in demand forecasting by the automobile sector have created pressure in meeting inventory, debtors.

7. Occasional Supply chain disruptions.

8. Regulatory Risk.

9. Attrition of employees.

CONSUMER DURABLE INDUSTRY

The increasing demand for premium appliances is one of the primary factors that will fuel the growth of the home appliances market in India during the next few years. This is in addition to the low penetration of appliances in general in Indian household, compared to global indices. The growing importance of home appliances is encouraging the demand for unique and premium consumer electronics. With the increasing household incomes, the demand for home appliances is growing in the developing geographies and fuelling overall market growth. To provide increased convenience, manufacturers are integrating smart and premium features that will influence the consumers to take buying decisions. These smart products are being integrated with IoT technology that integrates digital and wireless technology and will enable consumers to connect their household appliances with their smartphones and conveniently operate and/or monitor them from any location. The compliance costs are an area of challenge for home appliances products. The home appliances market has been witnessing an increase in cost due to evolving nature of compliances prescribed by the Government in recent years.

According to a CRISIL report, the consumer durables sector in India is expected to witness a revenue growth of 8-10 percent this fiscal, supported by steady growth in urban demand. Operating profitability will also improve this fiscal due to softening of raw material prices, reversing two years of contraction; growing demand for premium appliances with smart technologies will see revenue growth. Demand will be driven by both urban and rural segments.

The under-penetrated air conditioners (AC) segment will be one of the key growth drivers for the industry. Demand for ACs and refrigerators is being driven by changing weather patterns. Consumers are opting for higher-capacity refrigerators and energy - efficient ACs are being preferred. Indias liberal and investor-friendly Foreign Direct Investment (FDI) policy is a significant driver of the growth of the consumer durable goods market. In todays new normal age, this industry is expected to grow due to increase digital influence, leading to improved product awareness and a rise in demand from the tier-II and tier-III cities.

The announced Production Linked Incentive (PLI) scheme for white goods, with an investment indication of Rs 4,614 crore, has been an excellent opportunity for manufacturers to ramp up their production, reduce import dependency and make products more affordable.

The Appliance Division has ended the year with a growth of 4% in revenue terms and PBDIT margins enhanced by 36% as compared to 2022-23. However, the margin is not comparable with the Budget as we have lost margins on account of missing the targeted number in volume sales, especially in AC sales. Supply chain pressure on commodity pricing for a part of the year was a contributor to the lower margin structure. During the year, the Indian rupee remained under pressure. The company had initiated actions to reduce material cost and control fixed overhead by reduction of avoidable man power, automation etc. Cost reduction on indirect cost heads is a key agenda for the company in the new fiscal year.

Our focus for last couple of years remains on the key agenda of localization for many of the high-cost imports. This is a key de-risking mechanism against future currency depreciation impacts on our business. The expected customer demand, combined with the launch of new models and plans to reduce material costs, provide a moderate outlook for the division.

The Appliance Division delivers a well differentiated range of products in both the domestic and industrial categories.

The products include domestic washing machines, industrial washing systems (including dry cleaning and other finishing equipment like ironers etc), microwave ovens, domestic and industrial dishwashers, clothes dryers, modular kitchens, kitchen appliances (hobs, chimneys and built-in ovens), air conditioners and also a range of service products. In the Washer category, the Company has a complete product pipeline with market leading features in the Front and Top Load models across the entire product line-up. The Front Loads models with Steam features across the entire range and the Top Load models with in-built heaters and steam function have good positions in the market. With the introduction of the new range in the 11 kg commercial segment, from the industrial laundry division, the Division now offers a complete commercial laundry solution range.

We are aware that revenue and margins have not been good over the last two fiscal years. This is mainly on account of our not extracting revenues in line with our network and product basket. We have restructured sales geographies and sales manning to deliver the results needed. Our task is to significantly grow FL, TL and AC sales specifically. And also, to continue to grow in products like MWOs, DWs and CDs. In Kitchen Appliances, our target is to have substantial growth in sales per month and we are driving placements in the distribution network. We have also started selling Refrigerators manufactured by IFB Refrigeration Ltd.

Government Incentives

The production linked incentive scheme (PLI) scheme for white goods is outlined to build an end-to-end component ecosystem for ACs in order to make India a hub of the global supply chain. The scheme will extend benefits of 4-6 % on incremental sales for five years subsequent to base year. According to market experts, providing incentives for the manufacturing of components is the right move by government given the positive response from Indian firms to manufacture three main air-conditioning components- compressors, copper-tubing and aluminium fins. At present, India has a market of roughly 7.5 million AC units, of which 6 million are assembled with domestic value addition making up for just one-fourth of the units. The PLI scheme has the potential of not only boosting domestic production but also lowering the dependence of imports. The AC units of Home Appliance Division initiated the process to avail incentive under PLI scheme. The company has submitted the claim for disbursement of incentive to the PMA on 14th January 2024. On 27th March 2024, the company has received the 1st claim sanction letter vide ref no. IFCI/CASD/ PLIWG/24-240328039 for White Goods under the production linked Incentive (PLI) Scheme for the Fiscal Year 2022-23.

Accordingly, an amount of Rs. 3 Cr. has been recognised under other operating income in the Statement of Profit and Loss for the financial year 2023-24. Subsequently, the company has received the incentive amount of Rs. 3 Cr. on 2nd April 2024 in its designated Bank account.

Modified Special Incentive Package Scheme (MSIPS)

The Government has approved a special incentive package to promote large-scale manufacturing in the Electronic system Design and Manufacturing (ESDM) sector. The scheme is called the Modified Special Incentive Package Scheme (MSIPS). Under M-SIPS, the Government will provide subsidy of 20 % on capital investments in special economic zone (SEZs) and 25% on capital investments in non-SEZs for individual companies. It also provides for reimbursement of CVD/ excise for capital equipment for the non-SEZ units. The incentives are available for investments made in projects within a period of 10 years from the date of approval. The company is availing incentive under MSIPS for its washer plant in Goa and has received Rs. 23.33 crores up to 2022-23. We have not received any M-SIPS incentive during the financial year 2023-24.

The updates on the products and the relative market position of our future plans are as given.

Washing Category

Front Load Washing Machines

This Division has a complete range of products which addresses a variety of customer needs and is well differentiated in the market based on features, aesthetics and performance. The sales trend of higher capacity product continues and the increased awareness about features like steam in washers and the introduction of the Washer Dryer Refreshers has helped to improve demand in the market. The Company has taken following steps to enhance market share:

In the product front the new steam enabled range has been incorporated. In addition, a new range of washers with inverter motor technology / WiFi / AI under the theme of IFB Deep Clean in the 1st quarter FY 23-24 and the market has accepted these models and the said trend continues. The focus will be on increasing market share, through increased placements and also introducing colour options.

The two key initiatives in the new fiscal year:

A new range of Washers with inverter Technology/WiFi is under development and the launch is planned in phases from Q2 FY 25. This will be a platform for growth in FY 2024-25.

Focus to increase the market share is a key sales agenda. This relates to product availability and placements which are being driven through channel expansion, adequate manning and a drive on extraction from the distribution network. We have introduced Front Load Washing Machines in the 9 and 10 Kg segments. This range is at an overall volume of -120 K nos. p.a. across India at present. We aim to take rightful share and will increase placements of the models in this segment in the market. Our focus is specifically on more extraction from existing counters. Also, an increase in revenues from stores which form a part of the Large Key Accounts.

Washer Dryer Refreshers

This product is a unique global platform and Indias first 3-in-1 product offering which has washing, drying and refreshing, all in one. It has the capacity to wash 8.5 Kg, dry 6.5 Kg and refresh 2.5 Kg of laundry. The product has been placed in 2000 counters and is selling an average of 1000 units per month. The placement will be increased to 2,500 counters. Our target is to take this to 3000 units per month. Our plant is to introduce ranges with larger capacity, enhanced aesthetics and improved performance. We expect to roll out the new range by Q3 FY 25.

Top Load Washing Machines

Our models with built-in heaters and steam enabled washing programs continue to do well in the market. There is an increasing demand for models of higher capacities, which has been a consistent trend in the last two years. We have also upgraded and introduced IoT feature on all models in this range from Q2 of FY 2023-24 in a phased manner. In addition, a new range of washers with Inverter technology/ Wi-Fi development is in progress and will be introduced in phased manner starting from Q2 of FY 25.

Clothes Dryers

We have customized this category by introducing colour themes in Red, Yellow and Mocha in addition to regular colours, white and silver. These models rolled out in the Q2 of FY 2023-24. We have planned to upgrade this category with Heat Pump technology by the end of 2024-25 which will be ready for market introduction by the early part of the subsequent fiscal.

Industrial Segments- Laundry and Dishwashing Equipment

Our customers are from verticals like hotels, educational institutions, medical institutions, Defence, pharmaceuticals, railways etc. The IFB equipment / range serves them with better reliability and durability and also addresses all their needs starting from washing to finishing, with the help of equipment like Washer Extractors, Tumble Driers, Flat Work Ironers, Folders, Body Presses, Dry cleaning Machine other accessories etc.

We have worked on a three year Vision-26 plan 3x3 with the objective of reaching a 3x Revenue growth in three years. A detailed Product Road Map has been worked out considering both Industrial Laundry as well as Industrial Dishwashing equipments.

We have identified new markets like UAE, Africa, Russia, etc. to improve our export foot print and to focus on nurturing local partners for greater reach. We are also exploring dealer/ distributor / agents in Sri Lanka, Maldives, CIS, etc. to improve Export business.

In the domestic market we continue to participate in major events/ exhibitions.

In product Road Map (PRM), we have started new projects such as a platform of washer Extractors in 30 kg variant. Later, this would be scaled up to other variants as well as Tumble Dryers and Flat work ironers as horizontal deployment.

Microwave Ovens

IFB maintained its position as one of the top three players of this category and holding on to the second position in the Indian market. We have bridged the required model gaps in the Solo category at the right time, which grew in FY 24 and contribute to almost 40% of the total market share. The introduction of the 24 Litre Solo model, variants for Offline and Online, which were exclusive in this capacity platform - enabled the increase in volumes and market share. IFB excels in the high-end microwave oven market which contribute to 60% of the total market shares.

The main strategy is to enable the right model placement in key channels, like e-commerce and LFR stores, which contribute to almost 50 % of the total business. Work has been initiated for ongoing upgradation in design, aesthetics and capacity requirements as seen in market trends globally.

Built-in Ovens, Built-in Dishwashers, Built-in Microwaves, Chimneys and Hobs

The kitchen appliances built-in segment has recorded a growth of 10% plus in last fiscal year. In order to plan for the desired sale of Rs 5 Crore per month, the focus continues to be on placement of these products - with a proper display unit in counters. We have launched new models in the Cooker Hood category, a fast-growing category segment, with BLDC technology, filter-less, gesture sensor motions controls and heat auto clean functions, etc. Based on the recent market trends, we have benchmarked and mapped the optimal price bracket models.

Dishwashers

The domestic dishwasher segment has experienced a decrease in demand from the previous year. In fact during FY 24, the market has stabilized to a level of 7K numbers per month, for all brands together. 80% of the market is dominated by three brands which includes IFB.

In terms of placement, we are now placed in ~3000 plus counters but our target is to reach ~4000 plus counters by end of Q-2 in FY 25. There has been a rise in demand for the new 16 place setting capacity models, with our Neptune VX2 Plus model becoming one of the highest selling SKUs in the market.

Given the changing market trends and consumer preferences for higher capacities and advanced technology features, we are developing premium end models with BLDC technology, AI featured, triple wash mechanisms, exclusive ioniser feature for removal of bad odours, etc.

Cooling category Air conditioner

Our range for this season has been rolled out and the range will differentiate and position the volume for the season ahead. Our line up covers both Cold and Hot and Cold models. Our present energy norms are valid upto 31st December 2025. With effect from 1st Jan 2026 the energy levels will be upgraded by upto 13% which means the Air conditioners will be more efficient to consumers.

Our present Line up ranges from 3 to 5-star models of which we have 3 models in 5-star category, and we are in the process of developing 2T 5-star model which will be ready for launching by Nov24. All our models are developed to cool even at 58?C temperature and refrigerants used are Eco friendly. Our full range is Smart ready and these ACs are well accepted in Market. These can be controlled and monitored from remote areas using Geo sensing Technology.

The quality and performance levels of the product range have been acknowledged to be among the best-in-class. The new line up has given options for differentiated placements in the channels such as distribution, key accounts and also smaller multi-brand/ SSD channels. SSD Channel is gradually gaining traction.

The losses in this segment have been significant in FY 2021- 22, FY 2022-23 and FY 2023-24. We will deliver the material cost reduction through the work being done on areas like PCBs, Compressor selection etc. A specific geography by geography, dealer by dealer plan, including key accounts where ACs were absent earlier, has been put in place for marketing and positioning our ACs in this key channel segment. The aim is to grow our brand sales to a target level of 400K in FY 2024-25. OEM sales will be over and above this. The Company aims to increase numeric reach and display of ACs for better visibility at counters. One of the key focus areas for the AC segment is to grow the sales in the institutional / SSD verticals and we are putting a focused effort in building the team.

One of the key strengths for the Appliances Division is the service function and its reach to the customers. We have a total of 1200 service franchisees across India. Currently, we have 29 service training centres, which are fully equipped to impart training on all aspects of assembly, dismantling, installation and trouble-shooting of our products.

Sales of additives and accessories continue to be a key focus area and are expected to contribute significantly, both to the topline and bottom line in the current year. IFBs 7 million plus customer base has a high potential for the company to generate revenues through the sale of additives and accessories. The companys own call centre in Goa, Delhi and Bangalore which we call "service centre" continues to be effective in issue resolution and customer feed-back / cross selling initiatives with a total manning of 250 people as on date. The service centre at Goa and Delhi focus on out- bound calls to track and improve customer satisfaction and drive reduction in the number of pending customer issues through focused data tracking. In the Companys customer contact program, we continue to contact customers directly and then visit them. This is increasing customer satisfaction and is also enabling higher revenues from the customer visits.

Amongst the major issues, Appliance Division is addressing are :

1. Competition is increasing. Continued attempts to "buy" market share by under-cutting and offering large margins to the channel. This is increasing competitive intensity and requires the company to carefully position its products and manage multiple channels effectively.

2. The impact of increased duties.

The company continues, in answer to the above challenges, to be focused on differentiating itself through a value led product range planning. Local challenges are addressed as applicable and needed. Your company is confident of its ability to remain a dominant market share player across the categories it is present in and will keep investing in building market networks and product development capability.

Motor Division

The Motor Division acquired Automotive Motor Division from IFB Automotive Pvt. Ltd and merged it with existing business, keeping in mind the operational synergy between the two divisions. However, the divisions revenue did not grow as anticipated due to delays in implementation of new project and depressed market conditions badly impacting profitability as well.

Motor division is under discussion with various companies for supply of AC motors and also with some customers for supply of universal motors. Similarly, division is also working on some development activities for RFQs received for automotive motor business from many companies.

The division had devised a strategy to work towards achieving energy conservation in the near future. In order to achieve this goal, all the appliance motors will be replaced by energy efficient BLDC motors, which will save energy and have relatively lower noise, higher reliability etc. The Appliance Motor Division has already invested some amount of capital expenditures and imported machineries for manufacture of BLDC washing machine and AC motors. Full capacity will be one million motors each for Washing Machines as well as Air-conditioners.

Commercial production is expected to start from Sep -Oct for washing machine motors and from Nov-Dec for AC motors. This delay is on account of multiple testings required for appliance business by HAD Goa.

Revenue from operation has de-grown substantially by 20% in FY 23-24 mainly due to loss of business share for the supply of existing universal motors to Goa and delayed implementation of BLDC project. Profitability of the division has been a key concern area and has been greatly affected due to non-achievement of the budgeted sales and targeted material cost reductions.

Overall revenue achieved is Rs 124 crores and the division has also incurred losses of Rs 61 lacs in terms of EBITDA level for FY 2023-24. This is against Rs 6 crores profit earned in the last year.

This current financial year 2024-25 will be important for us and we expect to reach just the break-even PBDIT level.

However, this is expected to improve in the ensuing year FY 25- 26 wherein we expect to reach PBDIT level of 14% (at full capacity utilization of AC motors and at 50% for WM). Detailed workings on the financial projections have been done with a clear vision. This can be made possible through three important factors:

1. New business opportunities from outside customers (mainly focussing on AC motors)

2. Focussing on existing business with HAD Goa and meeting all implementation timelines and increasing SOB share.

3. Real focus on material cost reduction by atleast 8%. (this percentage calculation is w.r.t. revenue).

Steel Division

NCLT, Kolkata Bench vide its order dated January 27, 2022 has approved the Scheme of Amalgamation of Trishan Metals Pvt. Ltd, erstwhile wholly owned subsidiary with IFB Industries Ltd with an appointed date of April 1, 2021. This division supplies materials mainly to the Fine Blanking division and has been very helpful in terms of getting steel at the right quality, price and at the right time. It is a strategic division for us. The implemented turnaround strategies were adopted through the following steps:

a. through improvement in value addition by better product mix,

b. an aggressive marketing strategy to acquire new customers and provide orders for >90% mill capacity utilization.

c. close monitoring of cost and reducing scrap generation in the mill.

d. capex was undertaken to increase volume and upgradation was planned to enhance mill capacity and improve quality.

Steel Division achieved a revenue of Rs. 148.34 Crs. and earned a profit of Rs.1.41 Crs. at PBDIT level. Most of the modernization work which involves capacity expansion and upgradation of several mechanical/electrical parts has been completed. The Division suffered largely due to revenue shortfall as compared to budget.

b) Internal Control Systems and their Adequacy :

Your Management has put in place effective Internal Control Systems to provide reasonable assurance for:

a. Safeguarding Assets and their usage.

b. Maintenance of Proper Accounting Records and

c. Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows :

(i) Corporate policies for Financial Reporting and Accounting.

(ii) A Management information system updated from time to time as may be required.

(iii) Annual Budgets and Long-Term Business Plans.

(iv) Internal Audit System.

(v) Periodical review of opportunities and risk factors depending on the Global/Domestic Scenario and to undertake measures as may be necessary.

(vi) Application of Internal Financial Control - Your company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been tested during the year and no reportable material weakness in the design or operations was observed. Moreover regular review of the processes ensure that such systems are reinforced on an ongoing basis.

Over and above Companys in house Internal Audit team, the Company has appointed E&Y and Maheswari Associates, Chartered Accountants to ensure compliance and effectiveness of the Internal Control Systems.

The Audit Committee regularly reviews the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally, the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance.

c) Financial and Operational Performance :

The Highlights of Financial Operational Performance are given below :

(Rs. In Crores)

Sl. Particulars No.	Standalone		Consolidated
	2023-24	2022-23	2023-24	2022-23
1 Revenue from operations	4311.68	4104.05	4437.84	4194.99
2 other income	32.31	22.20	32.37	22.75
3 Sub-total	4343.99	4126.25	4470.21	4217.74
4 Total Expenditure (Before interest and depreciation)	4103.77	3943.26	4220.77	4032.15
5 PBDIT	240.22	182.99	225.28	183.12
6 PBDIT%	5.53%	4.43%	5.04%	4.34%
7 Profit After Tax	68.88	17.24	50.36	14.94

d) Human Resources Development and Industrial Relations:

IFB is a knowledge-driven organization and its greatest asset is the experience and skill of its employees. Recognizing that the workforce will provide critical competitive edge in its growth endeavour, IFB has laid major emphasis on recruiting, maintaining and developing its human asset base. It offers a wide range of career development programmes including on the job training and job rotation amongst others. A highly evolved Human Resource Policy has ensured a minimal rate of attrition amongst executives. IFBs welfare activities for employees include Medical Care, Group Insurance, NPS etc.

e) Key Financial Ratios:

Key Financial Ratios for the financial year ended 31 March 2024 is appended as Annexure-H, which forms part of this report.

f) Cautionary Statement:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. The Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.

For and on behalf of the Board of Directors	Bikramjit Nag
Place : Kolkata	(DIN: 00827155)
Date : 28th May 2024	Chairman