Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (May 2022)
45 slides from Surya Roshni's investor presentation, May 19, 2022
Slide 1: Exchange filing cover letter for investor presentation
a- -·-- An IS/ISO 9001, An IS/ISO 14001 & IS: 18001 Company SURYA ROSHNI LIMITED 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 SRL/22-23/14 May 19, 2022 The
Slide 2: Surya Roshni Limited Investor Presentation
4 Surya Roshni Limited Investor Presentation February 2022
Slide 3: Awards and Accolades
Awards and Accolades Padma Shri JAI PRAKASH AGARWAL Shri Jai Prakash Agarwal Chairman Surya Roshni Limited has been conferred with the prestigious Padma Shri Award by President Shri Ram Nath Kovind on Sth November 2021 at Rashtrapati Bhawan, Delhi.
Slide 4: Financial Updates
Financial Updates 3
Slide 5: Q4 & FY22 Results Highlights (1/3)
Q4 & FY22 Results Highlights (1/3) ✓ Achieved US$ One billion revenue milestone in FY22 ✓ Technological advancement through commissioning of latest imported DFT technology manufacturing plant at Gwalior for Steel Pipes ✓ Commencement of manufacturing of LED lighting components under PLI scheme ✓ Lea
Slide 6: Q4 & FY22 Results Highlights (2/3)
Q4 & FY22 Results Highlights (2/3) Steel Pipe and Strips Segment Performance Highlights Particulars (In ₹ crore) Q4 FY22 Q4 FY21 Change Q3 FY22 FY22 FY21 Change Revenue 1,898 1,366 39% 1,661 6,402 4,328 48% EBITDA 120 81 48% 71 342 256 34% EBITDA/MT (Rs.) 5,605 4,251 32% 3,815 4,648 3,525 32% PBT 86
Slide 7: Q4 & FY22 Results Highlights (3/3)
Q4 & FY22 Results Highlights (3/3) Lighting and Consumer Durables Segment Performance Particulars (In ₹ Crores) Q4 FY22 Q4 FY21 Change Q3 FY22 FY22 FY21 Change Revenue 404 356 14% 372 1,333 1,240 7% EBITDA 34 40 (15)% 28 106 128 (17)% Profit after Tax (PAT) 25 31 (17)% 19 72 86 (16)% Q4FY22 Highligh
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 with US$ One billion revenue in FY22 • Leadership in Value Added Products with a comprehensive product range • Dee
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 8
Slide 10: Reinforcing Leadership in Core
Reinforcing Leadership in Core • Brand building through • Enhanced engagement consistent Advertising Distribution • Consistent policies, Brand Equity • ATL & BTL activities Network effective schemes • Omni-channel presence • Strategic Investment in • Built up strong product technology upgradation po
Slide 11: Strengthening Financials
Strengthening Financials ₹ in crore Revenue PAT 7,731 205 4,931 5,975 5,471 5,561 108 121 103 158 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Net Worth Debt 1,547 580 1,097 1,192 1,090 1,368 1,047 1,152 1,239 717 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 10
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 K. K. Narula Shri T.S. Bhattacharya Independent Director Independent Director Ex-Chief General Manager, SBI. He is also the Ex-MD, SBI has an illustrious professional Chairman of the Audit Committee career in banking and financial sector Shri S K Awasthi Shri S S Khurana Inde
Slide 14: Steel Pipes and Strips… Wide Range of Products
CR Strips Hollow Section Pipes Black Pipes API & Spiral Pipes GI Pipes Steel Pipes and Strips… …Wide Range of Products
Slide 15: Steel Pipes & Strips - At a Glance
Steel Pipes & Strips - At a Glance 49 21,000+ Years of Brand presence in #1 Pan India Dealers/Retailers ERW GI Pipe manufacturer in India India, under the 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 #1 Agriculture Irrigation, Casing and tubing, Hot GI Pipes 33% High Growth in Water/ Plumbing, Water pipelines, Green Exports Houses, Fire Fighting, etc. API/ 3LPE Coated Leading API Pipe Oil and Gas, Water Transportation 18%
Slide 17: Transition Towards Higher Margin Products
Transition Towards Higher Margin Products FY 16-17 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Sr. Product Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ No Name Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) 1 GI Pipes 37% 4,620 30% 4,557 35% 4,534 35
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 domes
Slide 20: Leadership in Exports of ERW Pipes
Leadership in Exports of ERW Pipes Key Highlights Dubai Vision 2030 Abu Dhabi Airport • 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 • 25% YoY volume growth in FY22 Strategy Q
Slide 21: Leveraging Brand and Distribution Network
Leveraging Brand and Distribution Network Advertisements in Print The International Tube and TV Advertisements for Media Pipe Trade Fair, Germany Prakash Surya Steel Pipes • Present since 1973, ‘Prakash Surya’ has a strong leadership position with a major B2C contribution to the top-line • Advertise
Slide 22: Driving Strategic Manufacturing Benefits
Driving Strategic Manufacturing Benefits Bahadurgarh (Haryana) Anjar (Gujarat) Gwalior (Madhya Pradesh) Hindupur (Andhra Pradesh) 21
Slide 23: Building Financial Strength
Building Financial Strength ₹ in crore Revenue EBITDA 6,402 342 4,235 3,555 4,427 4,328 210 227 256 256 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Net Worth Debt 1,190 471 639 671 922 1,000 775 786 726 594 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 22
Slide 24: Driving Value Creation
Driving Value Creation Increasing share of Technology Upgradation Diversify Mix Value-added Products • Strategic Investments in High growth in API pipes Diversify Customer Mix and technology upgradation and Exports of Value Product Mix helps in de-risking • 3LPE coating plant from Selmer, Added Prod
Slide 25: Robust Demand Drivers
Robust Demand Drivers Infrastructure • Major Public and Private capex outlay in infrastructure, especially for Airport, metros, Export Market Urbanization, Jal Jeevan • High Demand for Steel Mission, River Inter-Linking Pipes in various sectors Projects, etc. • Gulf region/Europe and USA envisage st
Slide 26: Lighting and Consumer Durables… Emerging FMEG
PVC Pipes Home Appliances Fans Professional Lighting Consumer Lighting Durables… Lighting and Consumer …Emerging FMEG
Slide 27: SURYA – Emerging FMEG
SURYA – Emerging FMEG ‘SURYA’ Established Lighting Brand Equity through #2 Consumer Lighting Brand in 1984, has emerging as a consistent advertisements, in India leading FMEG Player ATL and BTL activities India’s most deep rooted Strong position in Successfully penetrating in distribution network, m
Slide 28: 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 29: Aggressive Brand Campaigns
Aggressive Brand Campaigns • Extensive TV Advertisements, BTL activities and active online digital media campaigns @suryalighting @surya.roshni @surya-roshni @surya_roshni @SuryaRoshniOfficial 28
Slide 30: Winning in B2B
Winning in B2B • Strong Professional Lighting team in place Expanding Capabilities • Developed complete ecosystem with vendors •Customized products Developing Products & Solutions • Integrated Solution based Smart Lighting •Direct B2B projects Strengthening Customer Relationships •Infrastructure, Mo
Slide 31: 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 32: Integrated Manufacturing Units and R&D
Integrated Manufacturing Units and R&D Kashipur (Uttarakhand) Gwalior (Madhya Pradesh) R&D Centre (Delhi – NCR) 31
Slide 33: PLI strengthening Backward Integration
PLI strengthening Backward Integration Objectives Commencement of manufacturing facility To boost manufacturing of ‘Components of for LED components under PLI scheme for LED Lightings’ of India, to reduce ‘Large Investment’ category dependency on imports of components Benefits to Surya Target Segmen
Slide 34: PVC Pipes – Sizeable Business Opportunities
PVC Pipes –Sizeable Business Opportunities 02 Demand outlook for non- Government initiatives Growth such as agricultural pipes The sector is expected to appears to be good as the Drivers Housing for All, ‘Nal se major urban real estate see an average Annual Jal’, Project AMRUT and growth of 10% Swac
Slide 35: Transition towards LED Lighting and FMEG
Transition towards LED Lighting and FMEG FY 16-17 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Sr. Product Name Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA No 1 LED- Lighting 24% 18% 38% 14% 49% 11% 53% 12% 59% 11% 2 LED-EESL 11% 12% 21% 11% 8% 8% 1% 11% - - Total LED (1 + 2) 35% 16% 60%
Slide 36: Building Financial Strength
Building Financial Strength ₹ in crore Revenue EBITDA 1,333 106 1,383 1,553 1,248 1,240 138 149 102 128 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Net Worth Debt 357 109 408 481 317 367 322 406 365 123 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 35
Slide 37: 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 LED preference, at high speed Lighting and Consumer and premium quality Durables Manufacturing Capabilities Distribution network Automation, Spe
Slide 38: 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 Infrastructu
Slide 39: Financial Highlights
Financial Highlights 38
Slide 40: Income Statement – Q4 and FY22
Income Statement – Q4 and FY22 Particulars (Rs. Crores) Q4 FY22 Q4 FY21 FY22 FY21 YoY Total Revenue from Operations 2,301 1,722 7,731 5,561 39.0% Cost of Material Consumed 1,660 1,342 5,890 4,062 Purchase of Stock In Trade 107 87 340 265 Changes in Inventories 62 (77) (39) 16 Total Raw Material 1,82
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. Crores) Mar-22 Mar-21 ASSETS (Rs. Crores) Mar-22 Mar-21 (I) EQUITY (I) NON-CURRENT ASSETS (a) Equity Share capital 53 54 (a) Property, plant & equipment 932 1,015 (b) Other equity 1,494 1,314 Sub Total (I) 1,547 1,368 (b) Capital work-in-progres
Slide 42: Cash Flow Statement
Cash Flow Statement Full Year ended Full Year ended Full Year ended Particulars (Rs. Crores – Consol.) 31-Mar-22 31-Mar-21 31-Mar-20 Profit before tax 277 212 140 Depreciation and Interest 175 173 210 Operating Profit Before Working Capital Changes 452 385 350 Change in Working Capital (103) 210 (35
Slide 43: 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 44: 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. 43
Slide 45: 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