Slide 1: Exchange filing cover letter for investor presentation
Date: May 16, 2025 To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 NSE Sy
Slide 2: Diffusion Engineers Limited May 2025
DIFFUSION ENGINEERS LIMITED | M AY 2 0 2 5
Slide 3: Forward-looking statements disclaimer
This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Diffusion Engineers Limited (DEL) and its group companies’ future business developments and economic perform
Slide 4: Agenda
01 Company Overview 02 Business Overview 03 Industry Overview 04 Financial Highlights 05 Way Ahead
Slide 5: Company Overview
Company © Overview
Slide 6: Providing innovative engineering solutions for enhanced industrial performance and efficiency
Incorporated in 1982 Diversified Product Portfolio across Established as private limited Company Industries Over 4 decades of Experience Special welding consumables, wear plates and heavy engineering equipment Strategically Located Manufacturing Expanding Global Footprint Facility 30+ Countr
Slide 7: Company history and milestones
Converted from Pvt. Ltd. to Public Ltd. Incorporation of Company Established subsidiary wholly-owned Incorporated as Acquired land (in part) Acquired land (N-79) Company in Singapore, subsidiary, named Private Limited for manufacturing for manufacturing Diffusion Engineers "Diffusion Com
Slide 8: Board of directors and management
Mr. Prashant Garg Dr. Nitin Garg Mrs. Chitra Garg Mr. Anil Trigunayat Chairman and Managing Director Non-Executive Director Non-Executive Director Indepedent Director Mr. Sherry Oommen Mrs. Deepali Bendre Mr. Ramesh Kumar N Mr. Abhishek Mehta Independent Director Independent Director Chief Executive
Slide 9: Key strengths
Synergistic business models focused Long - standing relationships Experienced promoters on forward integration with customers across industries and strong management team Transitioning from a manufacturer of special welding Over four decades of business operations Over 2 decades of experience in thi
Slide 10: Business Overview
a Business Overview
Slide 11: Diffusion Engineers Limited
Diffusion Engineers Limited Manufacturing welding consumables, wear plates and wear parts and heavy engineering machinery for core industries Used in Industries Cement Steel Power Engineering Sugar Defence Mining Oil & Gas Key Raw Materials include Ferro alloys, Powdered metals like Chromium, Nickel
Slide 12: Product segments
Welding and Anti- Heavy Engineering Wear Plate / Wear Parts Trading Wear Consumables Equipment • Special purpose electrodes • Wear Plates • Air Separator • Thermal Spray Powder • Flux cored wires • Wear Parts • High Pressure Grinding Rollers • Welding Equipment • Cold Repair Compounds • Welding Serv
Slide 13: Special purpose electrodes, flux cored wire, cold repair compounds
Special Purpose Electrodes Flux Cored Wire Cold Repair Compounds A welding electrode is a wire or rod built of metal Composition and Functionality: Flux-cored wire We manufacture cold repair compounds based or alloy and has a flux or without a flux and is a tubular welding consumable filled wi
Slide 14: Wear plates, wear parts, welding service
Wear Plates Wear Parts Welding service – job work Function and Benefits: Wear plates or abrasion Customized Wear Parts: We manufacture ready to Comprehensive Welding Solutions: We resistant plates protect equipment surfaces from fit wear parts for quality, cost effective and higher enhance lif
Slide 15: Heavy engineering equipment
We specialize in manufacturing and fabrication of heavy engineering equipment for cement, steel, power, sugar, and other core industries. Our dedicated Unit IV in Khapri (Uma), Nagpur – 441501, Maharashtra, ensures high-quality production and precision engineering Tandem Wagon Trippler Material Ho
Slide 16: Manufacturing units and proposed facility
Work in Progress Unit I Unit II Unit III Unit IV Proposed Facility Operational since 1994 Operational since 2000 Operational since 2015 Operational since 2016 Commence from Nov. 25 Special Purpose Flux cored wire, Anti-wear Flux cored wires, wear plates Special purpose welding electrodes wear plates
Slide 17: R&D facility and certifications
01 DSIR approved R&D facility at Unit I Equipped with laboratory infrastructure for various developmental 02 activities - process refinement, finished products testing and other raw materials analysis We hold accreditation by the National Accreditation Board for Testing 03 and Calibration Laboratori
Slide 18: Marquee customers
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Slide 19: Distributor network and exports
Manufacturing plant in Nagpur, India Export to other countries We have Tie-ups with over 95 distributors in domestic market and 9 distributors in the overseas market 18
Slide 20: Industry Overview
a Industry verview a = = en a . —_ = — P] > SS
Slide 21: Global welding consumables industry
Global welding consumables industry The global welding consumables market size reached USD 17.7 bn in 2024. ($ billion) Looking forward, IMARC Group expects the market to reach USD 26.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.49% during 2025-2033 20.50 17.00 Asia-Pacific region has
Slide 22: Wear plate and heavy engineering markets
Global Wear Plate Market Indian Wear Plate Market Heavy Engineering Industry in India ($ billion) Rs Billion 28 26 3,900 24 3,700 22 3,400 4.4 3,200 3.6 2,800 CY23 CY27P FY24 FY25P FY26P FY27P FY23 FY24 FY25P FY26P FY27P The global wear plate market is anticipated to expand from $2.1 Heavy elect
Slide 23: Financial Overview
mal Financial Overview
Slide 24: Message from Prashant Garg
“During the fourth quarter ended 31st March 2025 we have registered a Revenue of Rs. 1,024.48 million, EBITDA of Rs. 147.01 million and PAT of Rs. 130.10 million. This performance was underpinned by the successful conversion of the WIP to sales of high- v alue orders, further supported by strong dem
Slide 25: Standalone Quarterly Performance
Revenue from Operations EBITDA* PAT Standalone Quarterly Performance (Rs. In Mn) 135.02 120.40 1,008.89 108.78 743.15 735.42 86.88 79.36 85.66 87.16 691.65 672.61 74.52 64.62 63.84 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25
Slide 26: Standalone 5-year performance
5 Years CAGR (%) Revenue (Rs. Mn) 26% 3160.07 2440.74 2571.26 16% 16% 1957.58 1523.08 Revenue EBITDA PAT FY21 FY22 FY23 FY24 FY25 *EBITDA (Rs. Mn) EBITDA Margin (%) PAT (Rs. Mn) PAT Margin (%) 14.00% 12.68% 12.94% 500.00 12.00% 10.68% 400.00 11.77% 11.06% 9.10% 12.00% 9.98% 10.00% 400.00 8.05% 10.00
Slide 27: Standalone Q4 FY25 income statement
Rs. In Mn Rs. In Mn Particulars Q4 FY25 Q4 FY24 Y-o-Y% Q3 FY25 Total Income from Operations 1,008.89 691.65 45.87% 735.42 Total Income from operations for the *Raw Materials 705.55 490.54 485.68 Q4 FY25 was Rs. 1,008.89 mn in as against 106.42 91.35 104.88 Rs. 691.65 in Q4 FY24, a YoY increase of
Slide 28: Standalone FY25 income statement
Rs. In Mn Particulars FY25 FY24 Y-o-Y% Total Income from Operations 3,160.07 2,571.26 22.90% Total Income from operations for FY25 was *Raw Materials 2,151.90 1,775.92 Rs. 3,160.07 mn in as against Rs 2,571.26 in 399.15 345.51 FY24, a YoY increase of 22.90%. This growth Employee Cost was mainly du
Slide 29: Consolidated Quarterly Performance
Revenue from Operations EBITDA* PAT Consolidated Quarterly Performance (Rs. In Mn) 130.10 1,024.48 147.01 824.67 791.98 126.82 91.79 739.44 710.82 104.71 85.07 92.21 72.73 71.00 80.53 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 F
Slide 30: Consolidated 5-year performance
5 Years CAGR (%) Revenue (Rs. Mn) 25% 3351.96 2781.45 18% 2548.76 17% 2045.89 1552.63 Revenue EBITDA PAT FY21 FY22 FY23 FY24 FY25 *EBITDA (Rs. Mn) EBITDA Margin (%) PAT (Rs. Mn) PAT Margin (%) 13.35% 13.97% 14.04% 11.08% 10.75% 15.00% 500.00 12.00% 400.00 10.99% 10.94% 470.76 10.00% 8.33% 8.69% 400.
Slide 31: Consolidated Q4 FY25 income statement
Rs. In Mn Particulars Q4 FY25 Q4 FY24 Y-o-Y% Q3 FY25 Total Income from operations for the Total Income from Operations 1,024.48 739.44 38.55% 791.98 Q4 FY25 was Rs. 1,024.48 mn in as against *Raw Materials 694.31 524.90 507.72 Rs. 739.44 in Q4 FY24, a YoY increase of Employee Cost 110.27 96.02 113
Slide 32: Consolidated FY25 income statement
Rs. In Mn Particulars FY25 FY24 Y-o-Y% Total Income from Operations 3,351.96 2,781.45 20.51% Total Income from operations for FY25 was *Raw Materials 2,228.57 1,856.50 Rs. 3,351.96 mn in as against Rs 2,781.45 in FY24, a YoY increase of 20.51%. This growth Employee Cost 419.02 360.56 was mainly du
Slide 33: Order book by segment
Rs. In Mn FY24 FY25 Type Mar-25 Mar-24 693.64 645.95 Heavy Engineering 645.95 693.64 Wear Plates and Wear Parts 265.07 145.85 265.07 Welding Consumables 121.08 88.48 145.85 121.08 88.48 Grand Total 1,032.09 927.97 Heavy Engineering Wear Plates & Wear Welding Consumables Parts We have confirmed LOIs
Slide 34: Standalone balance sheet
Rs. Mn Rs. Mn As on 31st As on 31st As on 31st As on 31st Liabilities March 2025 March 2024 Assets March 2025 March 2024 Shareholder’s Funds 3550.41 1783.20 Non-current assets 1437.58 1240.38 Share capital 374.26 280.21 Property,Plant & Equipment 950.79 877.93 Reserves & Surplus 3176.15 1502.98 Capi
Slide 35: Consolidated balance sheet
Rs. Mn Rs. Mn As on 31st As on 31st As on 31st As on 31st Liabilities March 2025 March 2024 Assets March 2025 March 2024 Shareholder’s Funds 3,693.24 1,910.19 Non-current assets 1446.73 1,275.05 Share capital 374.27 280.21 Property,Plant & Equipment 974.00 905.71 Reserves & Surplus 3314.51 1,626.84
Slide 36: Return ratios and debt to equity
RoE(%) RoA(%) 18.52% 16.86% 12.18% 15.10% 9.93% 10.55% 9.98% 11.64% 9.59% 7.02% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 RoCE(%) Total Debt to Equity Ratio (X) 0.34 20.63% 17.30% 18.46% 16.24% 0.19 0.2 0.18 11.18% 0.06 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 The decline in ROE and
Slide 37: Working capital days
Inventory Receivables 93 85 92 91 72 64 67 66 83 82 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Payables Net Working Capital 131 99 97 94 72 69 75 60 55 47 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 36
Slide 38: Thank You
Thank You Company : Investor Relations Advisors : Diffusion Engineers Limited. Adfactors PR Pvt. Ltd. Mr. Abhishek Mehta Mr. Amit Sharma / Mr. Rupesh Rege info@diffusionengineers.com amit.sharma@adfactorspr.com rupesh.rege@adfactorspr.com www.diffusionengineers.com www.adfactorspr.com