Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (August 2023)
47 slides from Surya Roshni's investor presentation, Aug 11, 2023
Slide 1: Surya Roshni Limited – Investor Presentation Cover Letter
_,, __ An 1snso 9001, An 1snso 14001 SURYA ROSHNI LIMITED & IS: 18001 Company CIN -L31501HR1973PLC007543 Padma Tower-1, Rajendra Place, New Delhi-110 008 Ph.: +91-11-25810093-96, 47108000 Fax: +91-11-25789560 > C - . . - - ""'--•"'~· ~.. i' E-mail : cs@surya.in Website : www.surya .co .in SRL/se/yks
Slide 2: ©2022 Infinity Advertising Services (P) Limited. All rights reserved.
©2022 Infinity Advertising Services (P) Limited. All rights reserved.
Slide 3: Awards And Accolades
Awards And Accolades ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 2
Slide 4: Financial Results Highlights
Financial Results Highlights ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 3
Slide 5: Q1 FY24 Results Highlights
Q1 FY24 Results Highlights Consolidated Financial Performance Highlights Particulars (In ₹ crore) Q1 FY24 Q1 FY23 Change Revenue 1,875 1,840 2% EBITDA 116 71 65% Profit after Tax (PAT) 59 22 166% Q1FY24 Highlights • Company reported a sustained growth momentum on YoY basis, driven by value added pro
Slide 6: Lighting and Consumer Durables Segment Performance
Q1 FY24 Results Highlights Lighting and Consumer Durables Segment Performance Particulars (In ₹ crore) Q1 FY24 Q1 FY23 Change Revenue 374 335 11.5% EBITDA 33 22 52% EBITDA Margins 8.83% 6.48% 235 bps PBT 26 14 88% Q1FY24 Highlights • Due to a favorable business environment in both the B2B and B2C ca
Slide 7: Steel Pipe and Strips Segment Performance
Q1 FY24 Results Highlights Steel Pipe and Strips Segment Performance Highlights Particulars (In ₹ crore) Q1 FY24 Q1 FY23 Change Revenue 1,503 1,504 - EBITDA 83 49 70% EBITDA/MT (Rs.) 4,388 3,103 41% PBT 55 16 237% Q1FY24 Highlights • The revenue remained flattish due to lower of steel prices; howeve
Slide 8: SURYA – At A Glance
SURYA – At A Glance • Established in 1973, ‘SURYA’ is one of the most respected and trusted brand in Steel Pipes, Lighting & Consumer Durables (FMEG) and PVC pipes in India and Globally • Leadership in Value Added Products with a comprehensive product range • Deeply rooted distribution network up to
Slide 9: Making In India, Delivering Across the World
Making In India, Delivering Across the World 1984 | 46 acres 1973 | 53 acres 2012 2010 | 51 acres 1992 | 44 acres 2010 | 96 acres 2017 | 17 acres ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 8
Slide 10: Reinforcing Leadership In Core
Reinforcing Leadership In Core • Enhanced engagement • Brand building through • consistent Advertising Distribution Consistent policies, Brand Equity Network effective schemes • ATL & BTL Activities • Omni-channel presence • Strategic Investment • Built up strong product InTechnology upgradation Man
Slide 11: Strengthening Financials
Strengthening Financials ₹ in crore 5,975 Revenue PAT 5,471 5,561 7,731 7,997 121 103 158 205 336 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Worth Debt 1,192 1,090 1,864 1,152 1,239 1,368 1,547 717 580 404 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ©2022 Infinity Advertising Servic
Slide 12: Board Of Directors
Board Of Directors Shri J. P. Agarwal Executive Chairman Shri J. P. Agarwal is the driving force behind creating Surya Roshni as one of the most reputed, trusted and successful companies. He has been honoured with the highly prestigious Padma Shri Award by the Government of India Shri Raju Bista Man
Slide 13: Board Of Directors
Board Of Directors Shri T.S. Bhattacharya Shri S S Khurana Independent Director Independent Director Ex-MD, SBI has an illustrious professional career in banking and Ex-Chairman of Railway Board and Ex-officio financial sector Principal Secretary to Government of India Shri Sunil Sikka Ms. Suruchi A
Slide 14: ©2022 Infinity Advertising Services (P) Limited. All rights reserved.
©2022 Infinity Advertising Services (P) Limited. All rights reserved. 13
Slide 15: Steel Pipes & Strips – At a Glance
Steel Pipes & Strips – At a Glance 21,000+ 50 #1 Pan India Dealers/Retailers Years of Brand presence in India, under the ERW GI Pipe manufacturer in India brand ‘Prakash Surya’ 250+ Distributors 6 12.76 Lac Products Categories #1 MTPA Capacity 9.61 Lac ERW Pipes Pipes - Structural, Exporter of ERW P
Slide 16: Comprehensive Products Range
Comprehensive Products Range Volume Share # Market Position * Applications Agriculture Irrigation, Casing and tubing, Hot #1 GI Pipes 26% Water/ Plumbing, Water pipelines, Green Houses, High Growth in Exports Fire Fighting, etc. Leading API Pipe API/ 3LPE Coated Oil and Gas, Water Transportation 17%
Slide 17: Transition Towards Higher Margin
Transition Towards Higher Margin FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Sr. Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Product Name No Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) 1 GI Pipes 30% 4,557 35% 4,534 35% 4,602 33% 5,456 2
Slide 18: API Pipes & 3LPE Coated Pipes
API Pipes & 3LPE Coated Pipes Building Strong Presence • Gained Market Share to ~10% of Oil & Gas Transmission Pipes o Cross Country Land Pipes o City Gas Distribution (CGD) • Water Transmission provides higher growth opportunities • The world-class 3LPE Coating plant machinery has been procured fro
Slide 19: Commissioned Section Pipe DFT Plant
Commissioned Section Pipe DFT Plant • Commissioned the Large-dia section pipe facility with Direct Forming Technology (DFT) at Gwalior in mid-April 2022, which has also added a capacity of 36,000 MTPA of the new product categories. • Will enable the company to further improve its presence in domesti
Slide 20: Setting-up Expansion Project at Hindupur, A.P.
Setting-up Expansion Project at Hindupur, A.P. • Project to manufacture GP and CR coils/pipe • Setting-up expansion project with an outlay of Rs. 75 crore at Hindupur, A.P. • Purpose: Presently, the company procures the GP coil and CR coil from the suppliers. The company intends to ensure availabili
Slide 21: Leadership in Exports of ERW Pipes
Leadership in Exports of ERW Pipes Dubai Vision 2030 Abu Dhabi Airport Key Highlights • Largest exporter of ERW Pipes (GI and Black Pipes) • Exporting to 50+ countries across the globe including USA, Australia, Canada, Mexico, Middle East, Europe and Africa Qatar FIFA 2022 Dubai Frame Strategy • Com
Slide 22: Leveraging Brand and Distribution Network
Leveraging Brand and Distribution Network The International Tube and Pipe TV Advertisements for Prakash Advertisements in Print Media Trade Fair, Germany Surya Steel Pipes • Present since 1973, ‘Prakash Surya’ has a strong leadership position with a major B2C contribution to the top-line • Advertise
Slide 23: Driving Strategic Manufacturing Benefits
Driving Strategic Manufacturing Benefits Bahadurgarh (Haryana) Anjar (Gujarat) Gwalior (Madhya Pradesh) Hindupur (Andhra Pradesh) ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 22
Slide 24: Building Financial Strength
Building Financial Strength ₹ in crore Revenue EBITDA 4,427 4,235 4,328 6,402 6,452 227 342 256 256 497 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Worth Debt 1,000 1,190 1,398 671 922 786 726 594 471 404 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ©2022 Infinity Advertising Services
Slide 25: Driving Value Creation
Driving Value Creation Technology Upgradation Increasing share of Value-added Diversify Mix Products • Strategic Investments in High growth in API pipes and Diversify Customer Mix technology upgradation Exports of Value Added and Product Mix helps in • 3LPE coating plant from Products to improve mar
Slide 26: Robust Demand Drivers
Robust Demand Drivers Infrastructure • Major Public and Private capex outlay in infrastructure, especially for Airport, metros, Export Market Urbanization, Jal Jeevan Mission, • High Demand for Steel River Inter-Linking Projects, etc. Pipes in various sectors Oil and Gas Sector, • Gulf region/Europe
Slide 27: ©2022 Infinity Advertising Services (P) Limited. All rights reserved.
©2022 Infinity Advertising Services (P) Limited. All rights reserved. 26
Slide 28: SURYA – Emerging FMEG
SURYA – Emerging FMEG ‘SURYA’ Established Lighting in 1984, Brand Equity through consistent has emerging as a leading FMEG #2 Consumer Lighting Brand in India advertisements, ATL and BTL activities Player India’s most deep rooted distribution Successfully penetrating in FMEG network, major Revenue c
Slide 29: Nurturing Distribution Network
Nurturing Distribution Network Strong Rural based distribution network, one of the largest in the industry Over 2,50,000 Retail Outlets Strong dealer relations and focus on secondary demand generation Distribution Transparent and attractive policies, schemes & incentives Network Secondary Network of
Slide 30: Aggressive Brand Campaign
Aggressive Brand Campaign • Extensive TV Advertisements, BTL activities, sponsorships and active online digital media campaigns Surya is the Associate Sponsor of U Mumba kabaddi team (2022) ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 29
Slide 31: Winning in B2B
Winning in B2B • Strong Professional Lighting team in place Expanding Capabilities • Developed complete ecosystem with vendors Developing Products & Solutions • Customized products • Integrated Solution based Smart Lighting • Direct B2B projects Strengthening Customer Relationships • Infrastructure,
Slide 32: Successfully Penetrating in FMEG
Successfully Penetrating in FMEG Fans - Home Appliances - • Leveraging strong brand and distribution network • Leveraging strong brand and distribution network • Pan India presence for fans • Wide variety of product range such as Water Heater, Room Heaters, Coolers, Dry Irons, Steam Irons, Juicer- •
Slide 33: Integrated Manufacturing Units and R&D
Integrated Manufacturing Units and R&D Kashipur (Uttarakhand) Gwalior (Madhya Pradesh) R&D Centre (Delhi – NCR) ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 32
Slide 34: PLI strengthening Backward Integration
PLI strengthening Backward Integration Commencement of manufacturing facility for LED Objectives components under PLI scheme for ‘Large Investment’ category To boost manufacturing of ‘Components of LED Lightings’ of India, to reduce dependency on imports of components Benefits to Surya Target Segmen
Slide 35: PVC Pipes – Sizeable Business Opportunities
PVC Pipes –Sizeable Business Opportunities Demand outlook for 02 Government non-agricultural pipes The sector is initiatives such as appears to be good as expected to see an Growth Housing for All, ‘Nal the major urban real average Annual Drivers se Jal’, Project 01 estate markets show growth of 10%
Slide 36: Transition towards LED Lighting and FMEG
Transition towards LED Lighting and FMEG FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY22-23 Sr. Product Name Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA No 1 LED- Lighting 38% 14% 49% 11% 53% 12% 59% 11% 64% 11% 2 LED-EESL 21% 11% 8% 8% 1% 11% - - - - Total LED (1 + 2) 60% 13% 56% 11%
Slide 37: Building Financial Strength
Building Financial Strength Revenue EBITDA ₹ in crore 1,553 1,248 1,240 1,333 1,545 149 102 128 106 122 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Worth Debt 481 317 367 357 466 406 365 123 109 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ©2022 Infinity Advertising Services (P) Limit
Slide 38: Driving Value Creation
Driving Value Creation Product Development Re-energizing the Surya Brand Alignment with fast Aligning with new age changing consumer consumers, and growing preference, at high Manufacturing Capabilities LED Lighting and Distribution network speed and premium Consumer Durables quality Automation, Spe
Slide 39: Robust Demand Drivers
Robust Demand Drivers Young Demographics • Improving lifestyles, investment in home improvement • Emerging Lifestyles Consumer Lighting • Faster adoption by consumers across India, including Rural LED Professional Lighting • Smart Integrated LED Lighting • Presence in sunrise areas like Housing for
Slide 40: New Product Launches
New Product Launches i-Cook Rice Cooker ✓ 1.8 L Bowl for Cooking ✓ Trivet plate for perfect rice cooking ✓ 700W auto warm mode for keeping food hot Aqua Neo Electric Kettle ✓ Stainless Steel body ✓ 360-degree rotation cord less ✓ Wide spout for easy filling & cleaning ✓ Hinged lid for ease in use Er
Slide 41: Financial Results Highlights
Financial Results Highlights ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 40
Slide 42: Income Statement – Q1 FY24
Income Statement – Q1 FY24 Particulars (Rs. Crores) Q1 FY24 Q1 FY23 FY23 Total Revenue from Operations 1,875 1,840 7,997 Cost of Material Consumed 1,339 1,394 5,855 Purchase of Stock In Trade 110 96 429 Changes in Inventories 42 -9 -62 Total Raw Material 1,491 1481 6,222 Gross Profit 384 359 1,775 G
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. Crores) Mar-23 Mar-22 ASSETS (Rs. Crores) Mar-23 Mar-22 (I) EQUITY (I) NON-CURRENT ASSETS (a) Equity Share capital 54 53 (a) Property, plant & equipment 901 932 (b) Other equity 1810 1,494 Sub Total (I) 1,864 1,547 (b) Capital work-in-progress 9
Slide 44: Cashflow Statement
Cashflow Statement Full Year ended Full Year ended Full Year ended Full Year ended Particulars (Rs. Crores – Consol.) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 Profit before tax 459 277 212 140 Depreciation and Interest 161 175 173 210 Operating Profit Before Working Capital Changes 620 452 385 350 Ch
Slide 45: Key Takeaways
Key Takeaways • Strong market position in Steel Pipes & Strips, and Lighting & Consumer Durables • Investment in brand building and improving distribution • Successfully gaining momentum in New Value Added products in both the businesses • Rigorous financial control across the company • Improving pr
Slide 46: CSR Activities
CSR Activities Youth & Women Empowerment, Skill Development Animal Welfare Our dedicated CSR arm Surya Foundation, discharges responsibilities in the fields of health, skill development and education. ©2022 Infinity Advertising Services (P) Limited. All rights reserved. 45
Slide 47: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Surya Roshni Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie