Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (August 2019)
45 slides from Surya Roshni's investor presentation, Aug 5, 2019
Slide 1: Cover letter to stock exchanges: Investor Presentation
• -"-- An ISIISO 9001, An IS/ISO 14001 SURYA ROSHNI LIMITED & IS 18001 Company GIN -L31501 HR1973PLC007543 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 SRL/se/19-20/24 August 5, 2019
Slide 2: Surya Roshni Limited Investors Presentation August 2019
Surya Roshni Limited Investors Presentation August 2019 Updated Q1FY20 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 Q1 FY 2019-20 Established in 1973, SURYA 50 + Rs 14,115 million, 11% YoY ↑ spearheaded the technological Exports across Net Revenue countries globally revolution and evolved as one of the fully integrated Steel Pipes & Strips 100 % Rs 840 million, 13% YoY
Slide 5: Core Values
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: Business Segments – diversified offerings
Business Business Segments – diversified offerings Segment Steel Pipes & Strips Segment GI Pipes ERW – Black Section Pipes API & Spiral Pipes Cold Rolled Strips Lighting & Consumer Durable Segment LED Lamps & LED Street Lights Conventional Fans Home Appliances Battens Lighting 4
Slide 7: Revenue Split FY 2018-19
Revenue Split FY 2018-19 Steel Pipes & Strips Lighting & Consumer Lighting & ConsumerDurables Durables Others, 5% Fans and CR Sheets, Appliances, 12% Round 16% Pipe, 23% LED Lighting, 60% GI Pipe, Section 32% Pipe, 17% Conventional Lighting, 24% API and Spiral Pipe, 11% Lighting & Consumer Particula
Slide 8: With a PAN India and the World Presence
With a PANacross Active India Manufacturing India and thePresence World Corporate Office Branches Delhi Steel Pipe & Strips Plants North Zone o Bahadurgarh (Haryana) East Zone o Malanpur, Gwalior (M.P.) o Hindupur (A.P.) West and Central Zone o Anjar, Kutch (Gujarat) South Zone Lighting Plants o Kas
Slide 9: Competitively placed to Drive Industry Leadership
Competitively placed to Drive Industry Leadership Steel Pipes & Lighting & Consumer Strips Segment Durable Segment Complete Quality Products Products Range Distribution Manufacturing Network Industry Leadership Capabilities PAN India Presence Huge Infrastructure Market Brand Friendly Equity Policies
Slide 10: Steel Pipes & Strips
Steel Pipes & Strips Extensive Applications 8
Slide 11: 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 12: Diversified Applications Across High-Growth Sectors
Diversified Applications Across High-Growth Sectors Agriculture & Irrigation Fire Fighting System Airport Terminal Industrial applications Construction Oil & Gas Pipe Lines Auto components Stadium Structures 10
Slide 13: 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 Applications Applications Applications Applications Applications Irrigation, Agriculture Construction Engineering & Oil Pipelines Auto Components C
Slide 14: 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; Established for manufacturing ERW (GI, Black, merged with the Company w.e.f April 2016 Section) pipes Proximity to ma
Slide 15: 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 16: Recently Commissioned 3LPE Coating Manufacturing Unit
Recently Commissioned 3LPE Coating Manufacturing Unit Installed 3LPE Coating Plant from SELMERS, Netherlands, in Anjar, Gujarat in 2018 Established track record, obtained accreditations, certifications of ISO 9001,14001 & 18001 Specialized API Pipe with 3LPE Coating, used in transportation of Petrol
Slide 17: 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 18: What Makes our Future Positive?
What Makes our Future Positive? Strong capex plans by major hydrocarbon companies and robust Investments in City Gas Distributions - will lead to strong demand for oil and gas pipelines Infrastructure Housing Government’s focus on agriculture and irrigation sector will generate demands for water pip
Slide 19: Global Footprints
Global Footprints Dubai EXPO 2020 Qatar FIFA 2022 Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) from India, targeting export of API Pipes Dubai Frame Exports to over 50 Ras Abu Aboud Stadium countries including Middle East, Australia, Europe, Canada, Mexico, Ghana, Nigeria, among
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 Lamps Battens Street Lights Down Lighters Conventional Fans Home Appliances PVC Lighting & Fittings (Pipes & Fittings) Conventional Lighting Consumer Durables 20
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 The inevitable changes over the past 2 years SURYA’s Strength Exponential growth in LED Lighting across both B2C and India’s 2nd largest lighting products company B2B segments Completely backward integrated Price stabilization after steep correction in LED Lamps Cost
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 Revenue by Region Revenue by Marketing FY19 FY19 East Metro 18% South Cities, 16% 29% Rural, 52% West Tier II, 25% 32% North 28% Leader in various states such as AP, Telangana MP, Chhattisgarh, Uttar Pradesh and Jharkhand Second in Karnataka, Delhi, Maharashtr
Slide 28: Aggressive marketing strategies
Aggressive marketing strategies Strong dealer relations (50% of B2C distributors have more than 5 years of 1 association) due to transparent and attractive polices, schemes, incentives and foreign tours 2 Strong trade network of 2,50,000 Retail Outlets supports scaling Primary network is supported b
Slide 29: 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 30: Future Positive Trends
Future Positive Trends Growth factors: Market reach, retail network and brand equity Increasing preference of luminaires against lighting – multi-fold value-addition Futuristic Intelligent, Smart Lighting 75% of organised market is dominated by 7 players including Surya Product basket with all types
Slide 31: Financials
Financials 29
Slide 32: Consistent Financial Performance – 5 Years
Consistent Financial Performance – 5 Years (INR in million) Net Revenue EBIDTA 59,750 3,761 49,312 3,486 3,139 38,835 2,442 2,268 28,571 29,642 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Debt Net Worth Profit Before Tax Profit After Tax 13,000 11,915 12,000 10,974 11,519 1,725 11,000 10,709 1
Slide 33: Steel Pipes & Strips Segment Performance Improvement
Steel Pipes & Strips Segment Performance Improvement (INR in million) 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 1,765 2,102 2,269 27% PBT -122 -98 370 644 743 42%*
Slide 34: Key Financial Performance FY2018-19
Key Financial Performance FY2018-19 (INR in million) Company as a whole Net Revenue EBIDTA 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 35: 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 12.5% 12.8
Slide 36: Key Financial Performance – Q1FY20
Key Financial Performance – Q1FY20 Company as a whole Steel Pipes & Strips Lighting & Consumer Durables (INR in million) Net Revenue Net Revenue Net Revenue Up 11% Up 13% Up 6% 3,204 14,115 12,705 10,930 9,675 3,036 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 EBITDA EBITDA EBITDA Up 13% Up 18% Up 3% 8
Slide 37: Key Performance – Q1FY20
Key Performance – Q1FY20 Steel Pipes & Strips Segment 19% volume growth in Steel Pipes & Strips Segment, Revenue growth at 13%, impacted by drop in steel prices. EBIDTA grew by 18% Procured orders for Rs. 383 crores for supply of API Grade 3LPE Coated Pipes, expecting continuous flow of orders which
Slide 38: Shareholding Pattern as at 30.06.2019
Shareholding Pattern as at 30.06.2019 Institutional Others, 1% Investors, 4% Body Corporates, 13% Public (Individuals), 19% Promoters, 63% Bankers : Total No. of Shareholders – 24466 SBI, HDFC, BOB, CANARA, PNB, IDBI, DCB, UBI & EXIM 36
Slide 39: Strategic thrust and priorities
Strategic thrust and priorities Constant thrust on Value added and Quality products in both the divisions Installation of 3LPE coating pipes unit will provide higher capacity utilization for API and Spiral pipes Maximize utilization of existing manufacturing facilities, operational efficiency by mod
Slide 40: 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 41: 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 42: 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 43: Clients & Customers
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Slide 44: 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 45: 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