Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (November 2019)
41 slides from Surya Roshni's investor presentation, Nov 16, 2019
Slide 1: Exchange filing cover letter - Investor Presentation
An IS/ISO 9001, An IS/ISO 14001 SURYA ROSHNI LIMITED - & IS: 18001 Company CIN - L31501HR1973PLC007543 2nd Floor, Padma Tower-1 RaJendra Place, New Oelhi-110 008 Ph. +91-11-25810093-96, 47108000 Fax: +91-11-25789560 E-mail . cs@surya.in Website : www.surya.co.in SRL/se/19-20/38 November 16, 2019 The
Slide 2: Surya Roshni Limited Investors Presentation November 2019
Surya Roshni Limited Investors Presentation November 2019 Updated H1FY20 Results 0
Slide 3: Contents
Contents 1 2 3 4 Company Steel Pipes Lighting & Consumer Financial Overview & Strips Durables Highlights 5 6 7 Growth Board of Directors and Client & Drivers KMP’s Customers 1
Slide 4: Surya Roshni – Four Decade Strong Foundation
Surya Roshni – Four Decade Strong Foundation FY 2018-19 Established in 1973, SURYA 50 + spearheaded the technological Exports across Rs 59,750 million, 21% YoY ↑ countries globally Net Revenue revolution and evolved as one of the fully integrated Steel Pipes & Strips 100 % Rs 3,761 million, 8% YoY ↑
Slide 5: Strong Core Values Driving Profitable Growth
Strong Core Values Driving Profitable Growth Surya Parivar Principle-centric, Close-knit Family, Profitable Trust, Mutual Respect And Team Spirit growth Professionalism Integrity Moral Principles, Undivided Spirit. Product Reflects in Personal Lives, Financial Development Transactions and Business D
Slide 6: With a PAN across Active India
With a PANacross Active India Manufacturing India Presence Steel Pipe & Strips Plants Corporate Office Lighting Plants Delhi Bahadurgarh (Haryana) R &D Center (STIC) 1973 Noida Kashipur (Uttarakhand) Gwalior (Madhya Pradesh) 1984 2010 Malanpur (Gwalior) 1992 Anjar (Gujarat) 2010 Branches Hindupur (A
Slide 7: Consistent Financial Performance – 5 Years
Consistent Financial Performance – 5 Years (INR in million) Net Revenue Profit Before Tax Profit After Tax 59,750 49,312 1,725 1,561 38,835 1,208 1,176 1,080 28,571 29,642 618 868 863 541 631 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Worth Debt 11,519 10,473 9,509 11,915 10,709 10,974 6,
Slide 8: Steel Pipes & Strips
Steel Pipes & Strips Extensive Applications 6
Slide 9: Steel Pipes & Strips Business – leading by quality
Steel Pipes & Strips Business – leading by quality Position and Brand Company is the largest exporter of ERW Pipes and largest manufacturer of ERW GI pipes in India under Brand “PRAKASH SURYA” Particulars 2017-18 2018-19 Turnover (Net of Taxes) (Rs. in million) 35,545 44,267 Value increase (in %) 36
Slide 10: Steel Pipes & Strips Segment Performance Improvement
Steel Pipes & Strips Segment Performance Improvement (INR in million) Pre - Merger Post Merger - Surya Global, Anjar (Guj) Particulars FY15 FY16 FY17 FY18 FY19 CAGR% Sales Volume 368,286 427,833 615,376 738,943 812,050 22% (Qty in MT) Net Revenue 17,076 16,536 26,049 35,545 44,267 27% EBITDA 879 837
Slide 11: Steel Pipes & Strips – Offerings and Applications
Steel Pipes & Strips – Offerings and Applications Steel Pipes Cold Rolled GI Black Hollow Section API & 3 LPE Coated and Spiral Pipes CR Strips / Sheets (33%) (24%) (19%) (13%) (11%) Applications Applications Applications Applications Applications Agriculture Construction Engineering & Oil & Gas Pip
Slide 12: Strategically Located State-of-the-art Manufacturing Units
Strategically Located State-of-the-art Manufacturing Units Anjar, Gujarat - ERW and Spiral Est 2010 Hindupur, Andhra Pradesh Est 2017 Spread across 92 Acres to target export markets; Establish for manufacturing ERW (GI, Black, Section) merged with the Company w.e.f April 2016 pipes Proximity to majo
Slide 13: Strategically Located State-of-the-art Manufacturing Units
Strategically Located State-of-the-art Manufacturing Units Bahadurgarh (NCR – Delhi) Est 1973 Gwalior (Madhya Pradesh) Est 2010 Spread across 55 acres, close proximity to Spread across 51 acres, centrally located, serving Bahadurgarh Metro Station and KMP UP, MP, Rajasthan and Chhattisgarh markets E
Slide 14: Recently Commissioned 3LPE Coating Manufacturing Unit
Recently Commissioned 3LPE Coating Manufacturing Unit The 3LPE Coating Plant from SELMERS, Netherlands, in Anjar, Gujarat, fully operational. Established track record, obtained accreditations, certifications of ISO 9001,14001 & 18001 Specialized API Pipe with 3LPE Coating, used in transportation of
Slide 15: Leveraging Strong Brand and Distribution Network
Leveraging Strong Brand and Distribution Network Advertisement in The International Tube and Pipe TV Advertisement for Prakash Local print Media Trade Fair, Germany, April 2018 Surya Steel Pipes Selling with ‘Prakash Surya’ Brand across India via established Dealer and Distributor network. Strong br
Slide 16: Oil and Gas Sector – API Pipes
Oil and Gas Sector – API Pipes India is the world’s third largest energy consumer globally. Demand for primary energy in India is expected to increase threefold by Robust Demand 2035 to 1,516 million tonnes of oil. The oil and gas industry is growing robustly and players are undertaking investments
Slide 17: City Gas Distribution – CGD
City Gas Distribution – CGD Financial Year 2018-19 was truly a revolutionary year for City Gas Distribution (CGD) sector in India Proposed investment after 9th and 10th round of bidding is about INR 1.2 lacs crores Massive expansion of CGD network is a part of Govt efforts to raise the share of natu
Slide 18: 'Nal Se Jal' – Piped Water for All
‘Nal Se Jal’ – Piped Water for All India has 16% of world’s population and 15% of its livestock, while only 4% of water resources Government thrust to provide piped water to all households by 2024, up from Wide variation in water c18% at present. Massive challenge to add 150 mn households across 0.5
Slide 19: Global Footprints
Global Footprints Dubai EXPO 2020 Qatar FIFA 2022 Strong Export potential, grew by 38% in volume in H1FY20 Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) from India, holds 60% share, targeting export of API Pipes Dubai Frame Exports to over 50 countries Ras Abu Aboud Stadium inclu
Slide 20: Lighting & Consumer Durables
Lighting & Consumer Durables 18
Slide 21: Lighting & Consumer Durables Segment – Leading by Technology and Product innovation
Lighting & Consumer Durables Segment – Leading by Technology and Product innovation Position and Brand 2nd Largest in Lighting – Marketing under brand “SURYA” Particulars 2017-18 2018-19 Turnover (Net of Taxes) (Rs. in million) 13,833 15,534 LED Growth (%) 45% 36% Plant / R&D Locations Kashipur Gwal
Slide 22: Offering Diverse Range of Fast Moving Electrical Goods
Offering Diverse Range of Fast Moving Electrical Goods LEDs Revenue Split FY19 Lighting LED – 72% Conventional 28% Lighting 100% Lamps Battens Down Lighters Luminaries Revenue Split FY19 Lighting & Consumer Durables Segment Lighting – 83% Consumer Durables 14% PVC 3% Conventional Total 100% Fans Hom
Slide 23: World-class Facilities with Innovation-driven R&D Centre
World-class Facilities with Innovation-driven R&D Centre Manufactures LED lights (Lamps, Street Lights, Downlighters and fittings) & Conventional Lights, filaments, PCBs & Drivers Kashipur R&D – To drive the change towards Smart Lighting Surya Technology & Innovation Lighting Glass Plant, Centre (ST
Slide 24: Lighting Business – at a glance
Lighting Business – at a glance Transition to LED Lighting in the Industry SURYA’s Strength Exponential growth in LED Lighting in volume, steep India’s 2nd largest lighting products company, price correction, CFL phased out, FTL to follow LED now constitutes 75% of total lighting Industry consolidat
Slide 25: Fan and Home Appliances Business
Fan and Home Appliances Business Entered into the Fan business in FY 2014 Ventured into Domestic Kitchen Appliances Gained No. 6 slot in the Fan market in a short business in FY 2015 Provides feature rich, contemporary range of span of time Electrical Heating Appliances like Water Provides wide cate
Slide 26: PVC Pipes – Offering Sizeable Business Opportunities
PVC Pipes – Offering Sizeable Business Opportunities 28% Revenue Growth in FY19, Rs. 481 mn as compared to Rs. 377 mn in FY18 Applications: Water Management, Infrastructure, Housing Sector, Agriculture & Irrigation System, Domestic And Industrial Drainage System – Cold/ Hot Water Plumbing, Industria
Slide 27: Distribution Strength – PAN India reach
Distribution Strength – PAN India reach • Rural based distribution network, one of the largest in Revenue by Marketing industry FY19 Metro • 2,50,000 Retail Outlets Cities, 16% • Strong dealer relations (50% of B2C distributors have more than 5 years of association) Rural, • Transparent and attracti
Slide 28: Enhancing Brand Visibility
Enhancing Brand Visibility Principal Sponsor Rajasthan Light India Show 2018, New Dealer Conference, Singapore Royals, IPL 2019 Delhi Cruise Scan to view the AD TV Advertisement, ‘Golmal Surya Water Heater – TV Surya Fans Print Add with Again’ Hindi Movie Advertisement celebrity Scan to view the AD
Slide 29: Future Positive Trends
Future Positive Trends Growth factors: Indian Lighting Industry grew massively in LED lighting with major drop in conventional lighting, estimated to touch USD 5 billion, multifold growth in next 5 years. With 100 Smart Cities underway, India moving towards Futuristic Smart Intelligent Lighting. Sta
Slide 30: Financials
Financials 28
Slide 31: Key Financial Performance FY2018-19
Key Financial Performance FY2018-19 (INR in million) Company as a whole Net Revenue EBITDA PBT PAT Up 21% Up 8% Up 10% Up 12% 3,761 1,725 59,750 3,486 1,208 1,561 49,312 1,080 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Steel Pipes & Strips Lighting & Consumer Durables Net Revenue PBT Net Revenue PBT Up
Slide 32: Key Financial Performance – Debt-Equity. ROE%. ROCE%
Key Financial Performance – Debt-Equity. ROE%. ROCE% Company as a whole Steel Pipes & Strips Lighting & Consumer Durables (INR in million) Debt Net Worth Debt Net Worth Debt Net Worth 11,519 4,807 10,473 6,390 6,712 4,083 7,750 7,862 4,053 10,974 11,915 3,224 FY18 FY19 FY18 FY19 FY18 FY19 ROE% ROCE%
Slide 33: Key Financial Performance – H1FY20
Key Financial Performance – H1FY20 Company as a whole Steel Pipes & Strips Lighting & Consumer Durables (INR in million) Net Revenue Net Revenue Net Revenue 26,653 27,340 19,943 21,096 6,719 6,278 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 EBITDA EBITDA EBITDA 1,689 1170 602 1,594 521 992 H1FY19 H1FY
Slide 34: Key Performance – H1FY20
Key Performance – H1FY20 Surya, being one of the principal sponsor of Rajasthan Royals IPL 2019 team, also started aggressively advertising on TV for Steel Pipes. Reduced debt by Rs. 53 crore in first half of current financial year Derive benefit of recently amended low income tax rates Steel Pipes
Slide 35: Strategic thrust and priorities
Strategic thrust and priorities Constant thrust on Value added and Quality products in both the segment, resulting in better product mix with high margins, generate higher returns Participate in the tenders for Oil & Gas as well as CGD and Water to attain maximum utilization of API pipe/ 3LPE coatin
Slide 36: Chairman & Board of Directors
Chairman & Board of Directors Shri J. P. Agarwal Shri Raju Bista Smt Urmil Agarwal Shri Vinay Surya Executive Chairman Managing Director Director Whole Time Director Young, Dynamic with Driving force behind 33 years of age, has Woman director of Possess vast creating Surya as been the growth the Com
Slide 37: Key Managerial Personnel's (KMPs)
Key Managerial Personnel's (KMPs) Shri R.N. Maloo Shri Tarun Baldua Shri Ramanjit Singh Shri B.B. Singal Executive Director CEO – Steel Operations CEO – Lighting Sr. V. P. & Group CFO Operations & Company Secretary A qualified CA with A qualified Chartered A qualified MBA- A qualified CA, 33 years A
Slide 38: Board of Directors
Board of Directors Shri T.S. Bhattacharya Shri Ravinder Kumar Narang - Shri K.K. Narula Shri S S Khurana Ex-MD of SBI has an Ex-Chairman of IOCL with vast Ex-Chief General Manager Ex-Chairman of Railway Board illustrious professional experience in the field of from SBI Chandigarh (LHO). and Ex-offic
Slide 39: Clients & Customers
= Clients & Customers INDIAN OIL CORP. LTD. ie Ulell Yeast & cara oF NOs cy Pee com a) ferfa INDRAPRASTHA Delhi Mi Rail Ci tion Lit ANavratna Company DO" MST? Ral Corporation hi GAS LIMITED CIT YGAS & aie GAIL & Limited Warming hawrtzinvhe ci Connecting Muda Q ate age Reliance ESSAR’ Marubeni (iia.
Slide 40: Disclaimer
Disclaimer This presentation does not constitute an offer from Surya Roshni Limited to any party and the information contained herein will not form the basis of any contract. Neither Surya Roshni Limited nor any of its shareholders, directors, employees, agents or representatives makes any warranty
Slide 41: Thank You
Thank You Surya Roshni Limited Regd. Office Prakash Nagar, Sankhol Bahadurgarh Distt. Jhajjar, Haryana: 124 507 CIN: L31501HR1973PLC007543 Corporate Office Padma Tower - 1, Rajendra Place, New Delhi - 110008 (INDIA) Ph: +91-11 47108000 Fax no: +91-11 25789560 Website www.surya.co.in Contact Detail S