Steel Pipes and Lighting product manufacturer Surya Roshni announced Q3FY23 results: Q3FY23 and 9MFY23: Q3FY23 EBITDA and PAT grew by 65% and 121% respectively Announced interim dividend of Rs 3.00 per equity share Steel Pipes and Strips EBITDA/MT at Rs 6,733, a growth of 76% YoY for Q3FY23. Reduced debt by Rs 71 crore in 9MFY23. Similarly, the finance cost also reduced by 28% in 9MFY23 inspite of the increasing interest rate trend. Debt Equity reduced to 0.30x as on 31st December 2022 as compared to 0.48x as on 31st December 2021. Commenting on the results, Company’s Managing Director, Mr. Raju Bista, said “The company continued to report a healthy set of numbers along with improvement on operational parameters on a YTD basis. The financial performance was further aided by stable input costs, festive season and continuous improvement in the product mix. In Lighting and Consumer Durables, Q3 and 9M FY23 revenue grew by 6% and 20% YoY respectively, driven by an improved product mix. LED lighting as a whole grew by 8% YoY during the quarter (LED street lighting grew 66% and 74%, for Q3 and 9MFY23 respectively). The Professional Lighting business continued to do well and registered a growth of 33% and 43% in Q3 and 9MFY23, respectively. The company’s recent product launches also aided the growth momentum. The input costs, especially on the commodity prices front have been stable in Q3FY23, however the USD has gone up w.r.t. INR. Professional lighting continued to deliver the projects well within the stipulated timeline. The company is bidding aggressively for various projects across the country and witnessing a strong order inflow. The company’s capex under the PLI scheme is ongoing as per schedule. Once operationalized, it is expected to lower the external dependency along with the reduction in cost. The company’s constant effort to bring down replacement costs has worked well. The replacement cost now stands at 5.15%, a significant reduction on YoY as well as QoQ basis. The company remains committed to further bring down the cost, which will enable the company to offer high quality products. The company continued to focus on R&D; to offer innovative and trendy product line along with further deepening the engagement with dealers and distributors. The key focus of the company remains on enhancing the market share in Metro and Tier-1 cities along with further penetrating the existing rural network. In the Steel Pipes and Strips, the topline was affected due to correction in global steel prices. HR coil prices reduced by 18% on an average in current quarter as compared to corresponding quarter. However, EBITDA/MT improved significantly by 76% on a YoY basis to Rs. 6,733 in Q3FY23, due to increased share of value-added products. The company remains well geared to accelerate the growth further in the coming quarters. To reward the company’s shareholders on the remarkable financial performance during the period, the Board has declared an interim dividend of Rs.3.00 (30%) per equity share on the paid-up equity capital. The company remains committed to enhance value for the shareholders further”. Result PDF
Plastic products company Surya Roshni announced Q2FY23 results: Consolidated Q2FY23: The company reported a sustained growth momentum on a YoY basis, primarily led by value-added products across the products Continued to undertake multiple price hikes to partly mitigate the higher input costs Steel pipes and strips EBITDA/MT at Rs 5,259, a growth of 30% YoY for Q2FY23 Cash conversion cycles remained positive, driven by prudent financial acumen. The working capital days have remained largely stable at 60 days as compared to 62 days in H1FY22 Reduced debt by Rs 72 crore in H1FY23; finance cost also reduced by 26% in H1FY23. Debt equity reduced 0.31x as on September 30, 2022, as compared to 0.37x as on March 31, 2022. Managing Director Raju Bista said, “The company reported healthy performance on financial as well as operational metrics despite challenging business environments such as rising interest rates, strengthening of USD, import parity, volatile ocean freight and rising input costs. However, these external challenges were mitigated by strong inherent fundamentals, product mix, brand equity, financial acumen, lean balance sheet and excellent execution by our team. In lighting and consumer durables, Q2 and H1FY23 revenue grew by 12% and 29% YoY respectively, driven by an improved product mix. The company’s new-age lighting products continued to grow at a healthy pace with LED down-lighters growing at 63% and 100%, for Q2 and H1FY23 respectively. LED lighting as a whole grew by 29% YoY during the quarter. The professional lighting business is doing well and has registered a growth of 37% and 49% in Q2 and H1FY23 respectively. Consumer durables witnessed strong traction towards the end of Q2FY23 driven by the ongoing festive season. The company expects this traction to continue in Q3FY23 as well. The company has a strong product launch in the pipeline for lighting as well as consumer durables, which are in-line with current market trends. The company continued to undertake price hikes to mitigate the impact of rising input costs. The softening commodity prices from Q2FY23 onwards along with these price hikes will help the company to improve the margin profile in the near future. The company is proactively tracking all global and domestic events and utilising all the possible means at its disposal to counter the impacts of such events. The company’s capex under PLI scheme will further lower outside dependency and improve internal efficiencies along with the reduction in costs. The company is continuously adopting modern processes and automation for productivity enhancement and supply chain optimisation. The company has built strong and extensive capabilities and competence in design and manufacturing. The company’s past investment in R&D; and modern electronics to reduce replacement costs has boded well. The replacement cost now stands at 5.9%, a significant reduction on YoY as well as QoQ basis. As a result, the company remains well-placed to offer innovative products at a competitive price without compromising on quality. The company has also accelerated branding and marketing activities along with a focus on R&D; to launch trendy and innovative products and enhance dealer engagement. The company has successfully penetrated the Metro and Tier-1 cities market further along with deepening the existing rural network. The consumer durables segment is witnessing a healthy demand growth, driven by the ongoing festive season across the country. The company will also continue to focus on participating in multiple Smart Lighting projects in Professional Lighting. In Steel Pipes and Strips, the company’s performance in terms of revenue and profitability was affected on account of a steep correction in global commodity prices. However, EBITDA/MT improved significantly by 30% on a YoY basis to Rs 5,259 in Q2FY23, driven by a healthy product mix due to an increased share of value-added products. We firmly believe that these headwinds are transient in nature and the company will grow Steel and Strips businesssignificantly in the long term. Lastly, I would like to welcome Jitendra Agrawal as CEO – Lighting and Consumer Durables. He is a young, dynamic and renowned professional with 27 years of rich experience in the Lighting and Electrical Industry. We are confident that under his leadership, the company’s lighting business will touch new highs." Vinay Surya, Managing Director, said, “The company reported a robust set of numbers with healthy expansion in EBITDA margin and healthy bottom-line growth which was mainly on account of growing share of value-added products, improved working capital cycle and a significant reduction in debt. Result PDF
Surya Roshni announced Q1FY23 Result : Revenue grew by 27% in Q1 FY23 to Rs 1,840 crore from Rs 1,453 crore in Q1 FY22, with strong growth in value-added products across both the segments The margins remain subdued due to steep fall in steel and commodity prices during Q1FY23 impacted profitability of Steel pipes segment on short term basis and will be normalized, going forward. Prudent working capital management with cash conversion cycle remaining positive Lean Balance Sheet: Reduced debt by Rs 109 crore in Q1FY23, finance cost has also reduced by 16% in Q1FY23. Debt Equity reduced to 0.30x as on 30th June 2022 as compared to 0.37x as on 31st March 2022. Benefits of cost moderation will reflect in the coming quarters. Commenting on the results, Company’s Managing Director, Mr. Raju Bista, said “The company posted a resilient set of numbers with top-line grew by 27%, amid numerous headwinds such as steep correction in commodity prices, constant depreciation in the domestic currency and sustained inflationary pressure, the performance on account of our healthy product mix driven by growing share of value-added products across Lighting and Consumer Durables and Steel pipes reflect our operational excellence. The company’s resilience to external challenges underlines the company’s brand equity, strong financial position and ability to deliver superior products across businesses. In Lighting and Consumer Durables, the company continued to witness traction in new age lighting solutions with LED battens and LED down-lighters growing at 39% and 199%, respectively. LED lighting as a whole grew by 79% YoY during the quarter. The company has continued to strategically launch products in lighting and consumer durables as per the trends in the market. The company has undertaken price hikes in the past few quarters to mitigate the impact of rising input costs. Benefit of cost moderation will accrue in near future. The company is closely monitoring the global and domestic events and remains well placed to weather the risks that may arise. Initiatives under PLI scheme will improve in house production of components for LED lighting which will lower our dependency on outsourcing and improve costs. The replacement cost now stands at 6.7%, a significant reduction on QoQ basis. The company has enhanced the focus on dealers relationship, new products introductions and BTL activities to further improve the brand equity. The company’s R&D; is focusing on reduction in replacement costs and be the first mover in smart and innovative lighting solutions. The company’s marketing team has been successful in improving the presence and market share in Metro and Tier-1 cities along with deepening the existing strong presence in the rural markets. The fans segment witnessed a healthy demand growth during the quarter, driven by a severe heatwave situation across the country. The company will also continue to focus on participating in multiple Smart Lighting projects in Professional Lighting. In the Steel Pipes and Strips, the company’s performance in terms of realizations and profitability was affected as there was inventory rationalization by the dealers and distributors on account of a steep correction in global commodity prices. Although this has affected financial performance in the short term, we firmly believe that the long-term prospects for our Steel and Strips business remain intact, considering the enquiries generation, strong traction in the orderbook and growing share of new-age, value-added products and exports. This, coupled with the recently inaugurated large-dia DFT manufacturing facility is expected to enhance the margin profile going forward. The company will continue to invest in R&D;, promotional activities and product launches along with working capital optimization and debt reduction to further create a value for the shareholders.” Result PDF
Plastic Products company Surya Roshni announced Q4FY22 results: Q4FY22: Robust 34% growth in revenue, Q4FY22 has witnessed growth in all business divisions of B2C and B2B 41% growth in PAT due to reduced finance costs and a healthy product mix of value-added products ROCE improved by 580 bps YoY, from 17.8% to 23.6% ROE improved by 450 bps YoY, from 17.5% to 22% FY22: Revenue of Rs 7,731 crore in FY22 as compared to Rs 5,561 crore in FY21, healthy growth of 39% Cash Profit grew by 23% to Rs 385 crore in FY22 as compared to Rs 314 crore in FY21 PAT grew by 29% to Rs 205 crore in FY22 as compared to Rs 158 crore in FY21. The profitability would have been even better if not affected by the hyperinflation in input costs across businesses Proactively took multiple price hikes to partly mitigate the higher input costs Cash conversion cycles remained positive, driven by prudent financial acumen. The working capital days has reduced to 58 days in FY22 as compared to 73 days in FY21 Commenting on the results, Company’s Managing Director, Mr. Raju Bista, said “We are delighted to report the highest ever revenue for the company, achieved revenue milestone of $1 billion. I would like to attribute this phenomenal achievement to our team’s relentless efforts and emphasis on innovation, product and market development, premiumization and strong brand equity. For FY22, the top-line grew by 39%, underpinned by a healthy product mix driven by growing share of value-added products across Steel Pipes, Lighting and Consumer Durables. This resilient performance reflects operational excellence, with a better mix and healthy profitability despite multiple headwinds. The company has now repaid all the long-term debt and has become a long term-debt free company. The company has only short-term working capital debt, which the company is planning to optimize further in the coming quarters. The company's Steel Pipes & Strips and Lighting & Consumer Durables businesses are now independent and self-sustaining in terms of profitability, debt servicing and investment for growth, resulting into constant growth in revenue and profitability, coupled with upgrades in credit ratings. In the Steel Pipes and Strips, the company reported a revenue growth of 39% in Q4 and 48% in FY22 and a healthy growth in profit before tax (PBT) of 84% in Q4 and 63% in FY22. The improvement in realizations were driven by higher steel prices and consistent increased share of margin accretive API pipes and Exports. The company’s focus on premium products and geographical diversification of plants has worked well, translating into improvement in profit margins. The recently inaugurated large-dia DFT manufacturing facility is expected to enhance the margin profile further. Going forward, the company will continue to focus on growing the revenue share of value-added products and exports. In Lighting and Consumer Durables, the company has witnessed revenue growth in LED Lighting with 23% in Q4 and 18% in FY22. The new age product lines are gaining strong momentum with special focus on LED battens and LED down-lighters which registered volume growth of 50% and 100% respectively. We continue to launch premium products as per market needs. The company is witnessing a healthy momentum in the Fans segment on account of a severe heatwave across the country. During the year, the company undertook multiple price hikes to partly mitigate the impact of higher commodity prices and other input costs. We remain focused to enhance profit margins by improving product mix through growing share of premium products and smart lighting Initiatives such as Salesforce Automation (SFA) have been rolled out across all the regions and have started contributing to productivity enhancement, focused approach to bring down replacement cost has worked well. The company has intensified advertising and branding activities in order to transform into modern, innovative and stylish brand. The company is witnessing good enquiry order inflow and will continue to focus on participating in multiple Smart Lighting projects in Professional Lighting. The company also strengthened further the semi-urban and urban distribution network, which is now one of the largest in the industry. The company is witnessing multiple triggers such as a growing mix of value-added products across segments, strengthened balance sheet, strong value propositions and cost rationalization. This, coupled with improved economic activity is expected to drive the growth in the upcoming quarters. The company has given responsibility of Chief Financial Officer (CFO) to Mr. Bharat Bhushan Singal, who is also playing a role of Sr. V.P. and Company Secretary since last 26 years. He is a well-qualified professional, a Chartered Accountant, Company Secretary & Cost Accountant and has played a key role in various strategic initiatives over the years and is well-versed with company’s system and processes. I congratulate Mr. Singal for his new role and look forward to work closely with him to achieve the goals, going forward." Result PDF