Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (October 2021)
41 slides from Surya Roshni's investor presentation, Oct 26, 2021
Slide 1: Letter to stock exchanges on investor presentation
SURYA ROSHNI LIMITED - An IS/ISO 9001, An IS/ISO 14001 & IS: 11001 Com~ny CIN - L31501HR1973PLC007543 2nd Floor, Padma Tower-1, Rajendra Place, New Delhi-110 008 Ph.: +91-11-25810093-96, 47108000 Fax: +91-11-25789560 E-mail : cs@surya.in Website : www.surya.co.in October 26, 2021 The Secretary The M
Slide 2: Surya Roshni Limited Investor Presentation – October 2021
Surya Roshni Limited .......Towards a Self-reliant Future Investor Presentation – October 2021
Slide 3: Safe Harbour
Safe Harbour 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 securit
Slide 4: Index
Index 01 Quarterly Financial Updates 02 About Surya Roshni . 03 Steel Pipes & Strips 04 Lighting & Consumer Durables 05 Financial Highlights The Company's Promoter & Executive Chairman, Shri Jai Prakash Agarwal, was conferred with Padma Shri Award for his distinguished services in the field of Trade
Slide 5: Quarterly Financial Updates
Quarterly Financial Updates 4
Slide 6: Q2 Highlights of the Company
Q2 Highlights of the Company Consolidated Financial Performance Highlights Particulars (In Rs. Crores) Q2 FY22 Q2 FY21 YoY% Q1 FY22 H1FY22 H1FY21 YoY% Revenue 1,946 1,374 41.6% 1,453 3,399 2,261 50.3% EBITDA 102 101 0.9% 93 195 145 34.4% Profit after Tax (PAT) 44 42 5.7% 37 82 44 84.9% ➢ Long-term c
Slide 7: Q2 Highlights of the Company
Q2 Highlights of the Company ➢ Exports contributed 23% to total Steel Pipes business. The volume and value growth is 50% and 178% respectively for Q2 FY22. ➢ The product portfolio of Steel Pipes and Strips segment is continuously strengthening with increase in the share of value added products viz A
Slide 8: A Strong Foundation
A Strong Foundation 1973 #1 Rs 5,561 crores Established Steel Pipe Sales as on GI Pipes manufacturer in manufacturing unit at March 31, 2021 India Bahadurgarh. More than 4 decades of Brand Equity #1 #2 ERW Pipes exporter Lighting company (50+ countries) in India 21,000+/250+ 2,50,000+/2,500 Credit R
Slide 9: Strong Core Values
Strong Core Values Customer Satisfaction 01 02 Surya Parivar Customers – The Guiding Principle-centric, close-knit family, Stars for Future Endeavors trust, mutual respect and team spirit and Improvement CORE VALUES Integrity Social Responsibility Moral Principles, undivided spirit. Eco-Friendly pro
Slide 10: Strategic Initiatives Leading to Sustainable Profitable Growth
Strategic Initiatives Leading to Sustainable Profitable Growth Lighting and Consumer Durables Steel Pipes and Strips Shift from Conventional to Modern LED Lighting Strategic CAPEX leading to higher ROCE • Established R&D center (SITC) for LED & Smart lightings • Leveraging existing infrastructure re
Slide 11: Making In India, Delivering Across the World
Making In India, Delivering Across the World Lighting Plants Units Established Products Capacity Kashipur, LED lights & filaments and 1984 Uttarakhand MCPCBs & Drivers • 90 Million LED Bulbs Gwalior, Madhya LED lights, GLS, Caps, • 3.6 Million Street Lights 1992 Pradesh MCPCBs, Drivers, etc • 10 Mil
Slide 12: Steel Pipes & Strips
Steel Pipes & Strips Strong Market Leadership
Slide 13: Steel Pipes and Strips Product Highlights
Steel Pipes and Strips Product Highlights Galvanised* (GI) Black 19% Hollow Section 14% API Coated Pipes 17% CR Strips 12% 38% • Agriculture & Irrigation • Industrial • Engineering & • Oil & Gas Pipelines • Auto Components • Casing and tubing Infrastructure/ Architectural • Oil Well Casing • Motor S
Slide 14: Strategically Located Manufacturing Plants
Strategically Located Manufacturing Plants Bahadurgarh (Haryana) Anjar (Gujarat) Gwalior (Madhya Pradesh) Hindupur (Andhra Pradesh) • Established in 1973 • Established in 2010 • Established in 2010 • Established in 2017 • Location • Location • Location • Location • Spread over 53 acres • Spread over
Slide 15: Transition Towards Higher Margin Products
Transition Towards Higher Margin Products FY15-16 FY 16-17 FY 18-19 FY 19-20 FY 20-21 CAGR Sr. No Product Name Share* EBITDA^ Share* EBITDA^ Share* EBITDA^ Share* EBITDA^ Share* EBITDA^ Qty 1 GI Pipe 25% 3,490 37% 4,620 30% 4,557 35% 4,534 35% 4,602 21% 2 Round Pipe 32% 1,744 24% 2,144 27% 2,205 24%
Slide 16: Value accretive strategies
Value accretive strategies Hindupur Facility at Andhra Pradesh 3LPE coating facility at Anjar Alignment of production capacities Savings in logistics cost, increase in market Higher capacity utilization of Spiral & API Ready to leverage emerging demands from share, economies of scale and reduced pip
Slide 17: Driving Growth…3LPE Coating Plant
Driving Growth…3LPE Coating Plant Accreditations • Accreditations from all major PMC like EIL, Mecon, Tractebel, Worly Pearson etc. • Certifications of ISO 9001, 14001 & 18001 Application & Benefits • Transportation of Petroleum & Natural Gas, City Gas and Bulk Water Transportation mainly in River c
Slide 18: Fast-Growing International Business
Fast-Growing International Business Dubai Expo 2021 Key Highlights: • Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) • Exporting to 50+ countries across the global including USA, Australia, Canada, Mexico, Middle East, Europe and Africa • 50% YoY volume growth in Q2FY22 Strategy:
Slide 19: Seeking Market Potential Opportunities
Seeking Market Potential Opportunities Water • ‘Har Ghar Nal se Jal’ mission aims to provide safe and adequate drinking water to 150 million households (approx. 0.5 million villages) • Interlinking projects across 60 rivers through reservoirs and canals, will lead to an increase in irrigation land b
Slide 20: Steel Pipes & Strips Yearly Financial Performance
Steel Pipes & Strips Yearly Financial Performance Revenue In Rs Crs Cash Profit PAT 4,328 93 199 4,235 2,605 3,555 4,427 100 131 140 171 28 46 48 72 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Capital Employed Networth Debt 1,594 1,000 594 1,296 1,414 1,457 1,648 557 6
Slide 21: Lighting & Consumer Durables
Lighting & Consumer Durables Driving Strong Performance 20
Slide 22: Enhancing Brand Visibility
Enhancing Brand Visibility 21
Slide 23: Evolving Product Portfolio
Evolving Product Portfolio LED-Trade Conventional 5% 14% 12% LED- EESL Consumer Durables CFL PVC 18% 7% 2016 2021 53% 24% 23% 43% 0% 1% Traditional Products New Age Products • Conventional Lighting and CFL contributed the • Transformed the product portfolio to pre- majority of the revenue in FY16 do
Slide 24: Distribution Strength – PAN India Reach
Distribution Strength – PAN India Reach Rural LED 57% 59% PVC North 6% 32% Consumer Metro Cities Tier II Durables Conventional 18% 25% 15% 20% By Product By Population West East 25% 11% #1 - States such as AP, Telangana, MP, Chhattisgarh, UP and Jharkhand #2 in Karnataka, Delhi, Maharashtra, Bihar,
Slide 25: Strong Transition towards FMEG…
Strong Transition towards FMEG… FY15-16 FY 16-17 FY 18-19 FY 19-20 FY 20-21 Sr. No Product Name Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA 1 LED- Trade 12% 20% 24% 18% 38% 14% 49% 11% 53% 12% 2 LED-EESL 7% 8% 11% 12% 21% 11% 8% 8% 1% 11% Total LED (1 + 2) 19% 16% 35% 16% 60% 13
Slide 26: Our Production Facilities and R&D
Our Production Facilities and R&D Kashipur Lighting Unit - Established in 1984 • Manufactures LED lights (Lamps, Street Lights, Downlighters and Battens) & Filaments and MCPCBs & Drivers Gwalior Lighting Unit - Established in 1992 • Manufactures LED lights (Lamps, Street-lights, Decorative lighting)
Slide 27: Positive Trends
Positive Trends LED Lighting continues to grow, given the LED pricing is on an increasing trend, opportunity in replacement of conventional replacement percentage reduction will help in lamps and fixtures, as well as new points improving profitability Reduced imports from China of finished LED With
Slide 28: PLI Scheme for Manufacturing of Components for LED Lighting
PLI Scheme for Manufacturing of ‘Components for LED Lighting’ Objective 01 To boost manufacturing of ‘Components for LED Lightings’ India to reduce dependency on imports of components to create ourselves as Champions Target Segment 02 For manufacturing of Components of LED Lighting Products ( i.e. L
Slide 29: Value accretive strategies and outcomes
Value accretive strategies and outcomes Helps drive growth in the LED business, Establishment of the R&D Centre aligning portfolio with market opportunities Leveraged existing distribution and retailer network leading to additional Growth of Consumer Durables revenue stream (Fans and Appliances) • S
Slide 30: Product Growth Strategy
Product Growth Strategy Drive LED Leadership Grow Consumer Durables • Leadership across • Grow Fans and Consumer and Appliances multifold Professional segments • Grow Smart Lighting Win in Conventional • Consolidate leadership in GLS, FTL and Components ▪ Focus on Brand Building, Marketing, Advertis
Slide 31: PVC Pipes – Offering Sizeable Business Opportunities
PVC Pipes – Offering Sizeable Business Opportunities Government initiatives Demand outlook for 02 such as non-agricultural pipes Housing for All by appears to be good as The sector is expected 2022, ‘Nal se Jal’ by the major urban real to see an average Growth Drivers 2024, Project AMRUT estate mark
Slide 32: Lighting & Consumer Durables Yearly Financial Performance
Lighting & Consumer Durables Yearly Financial Performance Revenue Cash Profit PAT In Rs Crs 115 66 1,240 1,282 1,383 1,553 1,248 101 112 121 72 58 62 73 31 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Capital Employed Networth Debt 367 490 123 725 730 887 682 394 408 48
Slide 33: Clients and Customers
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Slide 34: Financial Highlights
ees SURYA ‘STEEL TUBES & PIPES 33
Slide 35: Annual Financial Performance
Annual Financial Performance In Rs Crs Revenue PAT Debt to Equity 158 5,561 0.52 5,471 3,884 4,931 5,975 1.13 1.05 1.03 0.88 108 121 103 86 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Capital Employed ROCE ROE Debt Netwoth 2,344 2,329 12.7% 12.1% 2,021 2,144 2,084 1,09
Slide 36: Income Statement – Q2 and Half Yearly
Income Statement – Q2 and Half Yearly Particulars (Rs. Crores) Q2 FY22 Q2FY21 H1FY22 H1FY21 YoY Total Revenue from Operations 1,945.7 1,374.2 3,399.1 2,261.3 50.3% Cost of Material Consumed 1,518.0 956.2 2,723.8 1,536.2 Purchase of Stock In Trade 93.3 52.2 135.2 78.5 Changes in Inventories (35.6) 39
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. Crores) Sep-21 Mar-21 ASSETS (Rs. Crores) Sep-21 Mar-21 (I) EQUITY (I) NON-CURRENT ASSETS (a) Equity Share capital 53 54 (a) Property, plant & equipment 974 1,015 (b) Other equity 1,369 1,314 Sub Total (I) 1,422 1,368 (b) Capital work-in-progres
Slide 38: Cash Flow Statement
Cash Flow Statement Half Year ended Full Year ended Full Year ended Particulars (Rs. Crores) 30-Sep-21 31-Mar-21 31-Mar-20 Profit before tax 110 212 140 Depreciation and Interest 90 173 210 Operating Profit Before Working Capital Changes 200 385 350 Change in Working Capital (32) 210 (35) Cash gener
Slide 39: Reduction in Overall Net Working Capital
Reduction in Overall Net Working Capital Inventory Days Debtors Days Net Working Days 75 73 69 48 65 42 42 59 54 40 54 49 48 46 33 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 38
Slide 40: CSR Initiatives…
CSR Initiatives… Women Empowerment & Skill Development Youth Day Our dedicated CSR arm Surya Foundation, discharges responsibilities in the fields of health, skill development and education. 39
Slide 41: Thank You
Contact Us Company Investor Relations Advisors CIN: L31501HR1973PLC007543 CIN : U74140MH2010PTC204285 Mr. Tarun Goel Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar +91 9810248348 +91 99206 02034 / +91 9860088296 Email: tarungoel@surya.in jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net www.surya.co.in www.s