Dear Shareholders

The year we have left behind was one of the toughest ones ever but we kept going withfocus and resoluteness and emerged closer to the targets we had set for ourselves. Growthwith sustainability has become our enduring focus and we kept to this agenda during theyear using the limited opportunities available to control costs achieve incrementaloperating gains and increase our sales and market share.

Robust performance in a challenging year

The first and last quarters of the year came with very different set of challenges. Thefirst quarter began with subdued sales due to the second wave of the pandemic with ruraland peri-urban markets holding up while urban centres stalled. Though the recovery wasmuch swifter on account of localized lockdowns and restrictions our white businessvolumes got severely affected. The last quarter witnessed unprecedented cost escalationsoriginating from the breakout of the Russia-Ukraine war and the consequent disruptions inglobal supply chains.

However our internal teams managed this sudden crisis with great dexterity and skill.

The resilience and strength of our business is even more strongly highlighted by ourannual results for FY 2021-22. The revenue from operation stood at 7679 Crores as against6328 Crores in FY 2020-21 an increase of 21%. The other income was 54 Crores for theyear as against 22 Crores in the previous year. The turbulence faced during the year isvisible in the above par increase in operating expenses which were higher by as much as29% and stood at 6197 Crores in FY 2021-22 as against 4814 Crores in FY 2020-21.However EBITDA was at 1536 Crores same as last fiscal. The commendable results achievedunder very stressful circumstances indicate the strength of our diverse markets and ourtrusted portfolio range.

FY 2021-22 saw exceptionally high price volatility with pet coke prices more thandoubling. This has hit our margins and though we have increased our prices in line withour peers only a share of the margin loss has been absorbed. We could also mitigate someof the margin loss with our scale economies improving due to increased capacities betterefficiencies in power and fuel consumption increased usage of alternate fuels/rawmaterials and green power. We are also continuously working on improving processefficiencies and material and input substitution in ways that meet both our growth andsustainability ambitions. Our capacities of renewable energy are also on the rise withall new capacities are being planned with WHR captives replacing fossil fuel-based ones.

Our white cement manufacturing facility at Fujairah (UAE) has been facing costescalations on several fronts with the uncertainty over availability of containers andother logistical logjams being the principal cause. In spite of these challenges we havemaintained volume numbers from this plant.

Remaining steadfast on our goals

In spite of the challenging external conditions consistent progress towards ourlong-term goals was achieved this year. We are ramping up our capacities with a strategicthrust and 4 MTPA of greenfield cement capacity is getting added in the current year atour Panna and Hamirpur locations. These plants are in close proximity sources. Thetoourcaptivelimestoneminesand ‘total cost advantage' thus derived creates a highertorque for cost recovery and greater profitability.

We also completed the brownfield modernisation of our Nimbahera Line-3 with the kilnnow capable of producing 6500 TPD against the earlier capacity of 5000 TPD. Thebrownfield projects that have been undertaken over the past few years have been deliveringgreater efficiencies in the form of reduced power and fuel consumption and increased WHR.With these expansions we have close to 15 MTPA of installed capacity in grey cement and2.2 MTPA of combined capacities for white cement and wall putty which makes us one of theleading cement and building products companies in India. With steady growth in our marketsacross India we aim at creating a total installed grey cement capacity of 25 MTPA by FY2024-25.

With a view to further strengthening our backward integration we are participating inthe tendering process of limestone mining blocks and have won a block in the southernregion and two in the northern region. Securing these blocks will greatly stabilise ourraw material streams and control over costs. This dovetails with our plans of increasingcapacity in a phased manner to stay in yearstepwithdemandgrowthasitprogressesovertheyears.behind us we have even greater

Standing by the nation supporting our communities

Supporting our people is a valued tradition at JK Cement and we practice it in manyways. As in the earlier year in this fiscal too we stood solidly behind the nation duringthe traumatic months of the second wave of the pandemic. We rolled out a host of newCOVID-19 initiatives in FY 2021-22. These included distribution of 47 jumbo oxygencylinders to government hospitals at Mudhol and Bagalkot and 20 oxygen concentrators tohospitals located near our facilities at Madhya Pradesh and Karnataka. In additiondistribution of Bipap A-40 ventilator pulse oximetres face masks were also done inselected hospitals. Further setting up three oxygen generation plants at differentlocations out of which one plant has already been commissioned.

As a pioneering initiative the Company has signed a Memorandum of Understanding withIIT Kanpur to build a Super Specialty hospital on premises. The proposed hospital is partof a larger initiative planned by IIT Kanpur to create world-class facilities for medicalresearch and innovation in the country and JK Cement has committed 60 Crores towards thispurpose.

We continued our work on our CSR focus areas of water health and sanitation energyconservation pollution-free atmosphere clean technology and primary healthcare and 16.9Crores was spent in FY 2021-22 towards this end. With a clear vision of bringing impactfulchange every year we engage with both our partner NGOs and the beneficiary communities tomap the progress of the work done and assess what more needs to be achieved. This yearseveral initiatives were undertaken in the areas of education community incomegeneration water quality improvement and healthcare and hygiene. In education our focushas been on creating the right environment within schools by providing educational supportmaterials and creating basic infrastructure. A vocational training centre (ITI) was alsostarted at Gotan.

To generate better income potential amongst the rural poor we have started a pioneeringinitiative through the JK Gram Trust in the states of Rajasthan Haryana and MadhyaPradesh. Under this initiative the attempt is to improve the health and breed of localcattle through cross breeding. To create a facilitative ecosystem for cattle breeding anddairy farming JK Cement is supporting services like provision of veterinary care andadvising of villagers on how to grow low-cost fodder for cattle.

Withthis confidence in the fundamental strength and agility of our business and in thecommitment and drive of our employees and partners. Together there are many moremilestones left to cover as we continue to serve the nation and the needs of its people.