Linde India : Annual Report 2023-24

• Linde India Limited

Embracing Digital Transformation

Annual Report 2023-24

• Linde India Limited

Embracing Digital

Transformation

Annual Report 2023-24

Embracing Digital

Transformation.

In today's fast-paced, interconnected world, digitalisation has become a critical driving force behind the success of Industrial gases and Engineering companies like ourselves. At Linde, we recognise the transformative power of digitalisation and are committed

to harnessing it to fuel innovation, enhance customer experiences, optimise operations and maximise profits.

Contents.

Corporate overview

01 Chairman's Message

1. Embracing Digital Transformation

1. About Linde

1. Our Operating Business Segments

1. Profile of Board of Directors & KMPs

1. Company Information
2. Geographical Presence
3. CSR Snapshots

1. Financial highlights (Standalone) - Graphical representation

Statutory reports

1. Directors' Report and Management Discussion and Analysis

1. Annexures to Directors' Report

1. Business Responsibility and Sustainability Report

1. Report on Corporate Governance

Standalone Financial Statements

1. Independent Auditor's Report on Standalone Financial Statements

1. Balance Sheet
2. Statement of Profit and Loss
3. Statement of changes in equity
4. Statement of Cash flow

1. Notes to Standalone Financial Statements

Consolidated Financial Statements

1. Independent Auditor's Report on Consolidated Financial Statements

1. Balance Sheet
2. Statement of Profit and Loss
3. Statement of changes in equity
4. Statement of Cash flow

1. Notes to Consolidated Financial Statements

260 Ten-year Financial Data

Chairman's Message.

Dear Shareholders,

The fiscal year 2023-24 has been a successful year for Linde India. Despite navigating a challenging macroeconomic environment, we focused on operational excellence and developing long-term capabilities to leverage the numerous opportunities in India. Innovation remains our primary focus as we drive sustained growth, keeping operating costs in check and maintaining our record of profitable growth. We continuously adopt the best available technology to improve manufacturing efficiencies and employ environmentally responsible practices.

India's growth rate was the second highest among G20 countries and almost twice the average of emerging market economies.

Strong domestic demand, significant investments in public infrastructure, and a growing financial sector have been key contributors to this resilience. The RBI's proactive measures have stabilized the rupee, and by 2027, India is projected to become the third-largest economy globally, following the United States and China.

Notably, the Indian Space Research Organisation (ISRO) made history with the successful soft landing of Chandrayaan-3 on the lunar south pole, making India the first to reach this unexplored region. Additionally, India's ambitions extended to the stars with the launch of a spacecraft to study the solar atmosphere.

Despite a tense global geopolitical scenario, recessionary pressures in the US and

EU, fluctuations in oil supply, and rising

global shipping costs, the Indian economy demonstrated remarkable progress in FY 2023-24.

Review of Performance

Our financial performance for the year ended 31 March 2024 was robust. Total revenues from operations stood at Rs. 27,687 million, a 6.4% increase from Rs. 26,013 million for the similar 12 months period in the previous year. On a year-on- year basis comparison, the Gases Division recorded a notable 10.2% growth, reaching Rs. 20,006 million, driven by high demand across key sectors and strong pricing discipline. The Project Engineering Division reported revenues of Rs. 7,681 million, slightly down by 2.2%, yet remained resilient with a healthy order book.

We achieved an EBITDA of Rs. 7,793 million, reflecting a growth rate of 7.2% compared to Rs. 7,272 million for the same period last year. Our cross-functional culture of cost productivity and operational efficiency continues to support profitability growth. Profit after tax (PAT) stood at Rs. 4,263 million, lower than the previous year due to a tax reversal recorded in the prior period.

With new initiatives in productivity and special focus on digitalization in place and more in the pipeline, we are confident in improving our profitability through enhanced productivity and cost reduction.

Environmental Responsibility

At Linde, we are committed to making our world more productive. Our core values-

Safety, Inclusion, Accountability, Integrity, and Community-guide our commitment to environmental and social responsibility. This year, we achieved a notable 27% reduction in Scope 1 and 2 greenhouse gas (GHG) intensity compared to the previous year. Our waste management practices comply with state and central pollution control norms, and we ensure responsible disposal through approved recyclers.

We have made a strategic investment in Zenataris Renewable Energy Private Limited to gain access to renewable power procurement under a captive mechanism. This will secure renewable power at lower tariffs, leading to significant cost savings and aligning with our commitment to sustainable practices.

Looking ahead, with ample opportunities due to planned investments, we will act swiftly and resolutely to execute projects on time while prioritizing safety, quality, productivity, and cost improvements.

Thank you for your continued confidence in Linde India.

Warm regards,

M J Devine

Chairman

Corporate Over view

Statutor y Repor ts

Financial Statements

01

Embracing Digital Transformation.

Fuelling the Future with

Digital Excellence

Linde India recognises digital transformation as pivotal in driving competitiveness, cost optimisation and operational excellence and is committed to harnessing its power to enhance efficiency and drive business growth. All areas of our business operations were governed by our digital initiatives including sales and marketing, operations, distribution, procurement, finance, customer experience and productivity enhancement.

02

knowDid y u

Linde plc awarded our digital efforts with the

Linde Excellence in Action (LXA) Awards

two years consecutively.

Digital Milestones of 2023

• Over 40% productivity boost from digital initiatives
• AI and machine learning contributed 10% to digital productivity
• More than 30% of employees received basic digital training

Pillars of Digital Productivity: Our three core pillars

Advanced-Data Modeling - Utilising machine learning and AI for data-driven decision-making

End-to-End Digital Platforms: Enabling seamless process execution across the organisation

Cognitive Ecosystem: Promoting digital learning and sharing best practices globally

Focus Areas and Key Initiatives

Growth and Revenue Effectiveness

• Polaris CRM platform for streamlined sales processes
• iON digital tool for tonnage consumption, pricing and billing insights

Digital Supply Chain and Cost

Efficiency

• Optimisation of distribution networks and resource planning
• Digitisation of production planning and power optimisation
  Asset Effectiveness, Reliability, and Safety
• iTank for optimised tank sizing
• Sampada for asset deployment and service management
• CyTra for SKU tracking and distributing safety enhancements
  Business Process Excellence and Customer Experience
• Anubhav digital platform for enhanced customer experience
• eRFQ for streamlined procurement processes

Corporate Overiv ew

Statutory Reports

Filnanc a Statements

03

About Linde.

Celebrating 80+ years of consumer-centric excellence

Linde India Limited has emerged as a cornerstone in India's industrial gas sector. Leveraging 80+ years of experience and cutting-edge technology, we provide tailored solutions that catalyze economic and industrial growth.

In alignment with our customer-first philosophy, we remain committed to garnering consistent growth. The commitment to serve people is embedded deep with our Company's founding principles. We believe that providing for our people is not just our responsibility, but an investment for the future.

04

Rs.27,687million	Rs.7,793million
Total Revenue	EBITDA
28%	Rs.4,263million
EBITDA Margin	Profit After Tax
15%	269
Profit After Tax Margin	Employees

Corporate Over view

Our Mission

We live our mission of making our world more productive every day. Through our high-quality solutions, technologies and services, we are making our customers more successful and helping to sustain and protect our planet.

Our Vision

We are committed to fulfilling our vision to be the best- performing global industrial gases and engineering company, where our people deliver innovative and sustainable solutions for our customers in a connected world.

Statutor y Repor ts

Financial Statements

05

Our Operating Business Segments.

Our two primary business segments are as follows:

Gases, Related Products & Services including pipeline, liquefied and compressed gases as well as comprehensive services;

Project Engineering Division (PED), specialising in designing and implementing air separation units, nitrogen plants, and related infrastructure projects across various industries.

06

Gases, Related Products & Services

We supply pipeline gases directly to major industrial clients across diverse sectors such as primary steel, glass, and chemicals (Onsite). We also deliver liquefied gases via cryogenic tankers, catering to medium-scale requirements across diverse industries (Bulk), and we offer compressed gas cylinders for smaller demands in various industries including fabrication, manufacturing, and construction sectors (Packaged Gas).

At Linde India, our nationwide network includes production facilities and filling stations, ensuring widespread availability and coverage. We are proud to possess one of the largest air separation plant in Jamshedpur. Our comprehensive portfolio includes a comprehensive range of gases, mixtures, and related services, backed by expert equipment, pipelines, and engineering services tailored to meet the diverse needs of various industries. As the country's largest sales and distribution network, we ensure extensive geographic coverage, enabling proximity to customers across India.

39

Operating Plants

Corporate Over view

Project Engineering Division (PED)

Our Project Engineering Division (PED) segment specialises in the design, supply, installation and commissioning of medium to large- tonnage air separation units (ASU), delivering tailored solutions for industrial gas production. Our expertise extends to nitrogen plants, pressure swing adsorption (PSA) systems and gas distribution setups.

We design and manufacture cryogenic vessels for both internal use within our operations and external sales to customers, ensuring efficient storage and transportation of cryogenic substances. Our projects

span various sectors including steel, oil and gas and prime research organisations like DRDO, BARC, and IPR, delivered on a turnkey basis.

Our Key Products

• Oxygen - O2
• Nitrogen - N2
• Argon - Ar
• Helium - He
• Carbon Dioxide - CO2
• Xenon - Xe
• Krypton - Kr

Statutor y Repor ts

Financial Statements

07

Profile of the Board of Directors & KMPs.

Michael J Devine

Chairman

DIN: 10042702

Born 1968

Doctor of Jurisprudence from Creighton University School of Law, Bachelor of Arts in Economics.

Jyotin Mehta

Non-Executive

Independent Director

DIN: 00033518

Born 1958

FCA, FCS and FICWA Bachelor of

Commerce

Arun Balakrishnan

Non-Executive

Independent Director

DIN: 00130241

Born 1950

B.E. (Chemical) from College of Engineering, Trichur, Post Graduate Diploma in Management from IIM, Bangalore

Shalini Sarin

Non-Executive

Independent Director

DIN: 06604529

Born 1965

Master of Arts (Sociology &

Human Resource Management),

Doctorate in Organization

Behaviour & Culture

Mr. Devine is the Associate General Counsel of Linde plc and has had an illustrious and accomplished career in handling several large corporate and commercial transactions in his career, including merger of Praxair Inc. and Linde AG. Mr. Devine has earlier served as the Chief Transactions Counsel for Linde plc and for Praxair Inc. and is currently heading the M&A Legal Department for Linde plc.

Mr J Mehta retired as Vice President and Chief Internal Auditor of Voltas Ltd. Presently Mr Mehta serves on the Board of Suryoday Small Finance Bank Ltd., ICICI Prudential Trust Ltd., Amal Ltd., Mahindra Insurance Brokers Ltd., Mahindra Rural Housing Finance Ltd., Westlife Foodworld Ltd. and others.

Mr A Balakrishnan was the former Chairman and Managing Director of Hindustan Petroleum Corporation Ltd. from 1 April 2007 to 31 July 2010 and is presently on the Board of Pipeline Infrastructure Ltd., Haldia Petrochemicals Ltd., Alphamers Ltd., Yokogawa India Ltd. and other companies.

Dr Shalini Sarin is the former global CHRO - Philips Professional Lighting & prior to that CHRO Schneider Electric South Asia. Her experience over three and half decades ranges from, leading HR to Sustainability for large global multinationals. She has worked in India, Europe and the US, both in regional and global roles. Among others, Dr Sarin serves on the Board of Kirloskar Oil Engines Ltd., Kirloskar Ferrous Industries Ltd., Sagility India and on the Supervisory Board of Nagarro SE, a special invitee on the Board of Schneider Electric India Pvt. Ltd. She is a trustee at Plaksha University and on the Advisory Committee of Climate Group.

Committees

Chairpersons

Member

Audit Committee

Nomination and Remuneration Committee

Stakeholders Relationship Committee

Corporate Social Responsibility Committee

Risk Management Committee

08