Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (February 2022)
43 slides from Surya Roshni's investor presentation, Feb 14, 2022
Slide 1: Surya Roshni Limited exchange filing letter
~11'Rcn~ ,~ ~ - -- , \...;;I IW11-.ioflndlJ1"1itMM• • SURYA ROSHNI LIMITED - An IS/ISO 9001, All rsnso 14001 & IS: 18001 Company CIN - L31501HR1973PLC007543 2nd Floor, Padrna Tower-1, Rajendra Place, New Delhi-110 008 Ph.: +91-11-25810093-96, 47108000 Fax: +91-11-25789560 E-mail : cs@surya.in Websit
Slide 2: Surya Roshni Limited Investor Presentation February 2022
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: Quarterly Financial Updates
Quarterly Financial Updates 3
Slide 5: Q3 Results Highlights of the Company (1/2)
Q3 Results Highlights of the Company (1/2) Consolidated Financial Performance Highlights Particulars (In ₹ Crores) Q3 FY22 Q3 FY21 YoY% Q2 FY22 9M FY22 9M FY21 YoY% Revenue 2,030 1,578 29% 1,946 5,429 3,840 41% EBITDA 99 117 (16)% 102 294 263 12% Profit after Tax (PAT) 40 56 (27)% 44 122 100 22% ➢ 2
Slide 6: Q3 Results Highlights of the Company (2/2)
Q3 Results Highlights of the Company (2/2) ➢ Update on Large-dia DFT Facility: • Commissioning Large-dia section pipe facility with Direct Forming Technology (DFT) at Gwalior by the end of FY22. • Targeting a healthy revenue mix from Domestic and Exports markets from this facility. Lighting and Cons
Slide 7: 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 8: 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 7
Slide 9: 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 state-of-the-art portfoli
Slide 10: Strengthening Financials
Strengthening Financials ₹ in crore Revenue PAT 158 5,561 3,884 4,931 5,975 5,471 108 121 103 86 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Worth Debt 1,367 717 1,070 1,097 1,192 1,090 1,047 1,152 1,239 951 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 9
Slide 11: 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 Ma
Slide 12: 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 Ind
Slide 13: 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 14: 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 12.40 Lac Products Categories #1 MTPA Capacity 9.25 Lac ERW Pipes Pipes - Structural, Exporter of ERW P
Slide 15: Comprehensive Products Range
Comprehensive Products Range Volume Share # Market Position * Applications #1 Agriculture Irrigation, Casing and tubing, Hot GI Pipes 35% 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 16: 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. Product Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Volume EBITDA/ Qty No Name Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) Share MT (Rs.) 1 GI Pipes 25% 3,490 37% 4,620 30%
Slide 17: 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 18: 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 • 26% YoY volu
Slide 19: 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 B2C contribution of 60-70% to the top-line • Adverti
Slide 20: Driving Strategic Manufacturing Benefits
Driving Strategic Manufacturing Benefits Bahadurgarh (Haryana) Anjar (Gujarat) Gwalior (Madhya Pradesh) Hindupur (Andhra Pradesh) 19
Slide 21: Building Financial Strength
Building Financial Strength ₹ in crore Revenue EBITDA 4,328 256 2,605 3,555 4,427 4,235 176 210 227 256 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Worth Debt 1,000 594 557 639 671 922 739 775 786 726 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 20
Slide 22: 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 23: 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 24: Lighting and Consumer Durables… Emerging FMEG
PVC Pipes Home Appliances Fans Professional Lighting Consumer Lighting Durables… Lighting and Consumer …Emerging FMEG
Slide 25: 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 26: Nurturing Distribution Network
Nurturing Distribution Network Strong Rural based distribution network, one of the largest in the industry Over 2,50,000 Retail Outlets Urban Rural Mix FY21 Strong dealer relations and focus on secondary demand generation 18% Distribution Transparent and attractive polices, schemes & 25% 57% incenti
Slide 27: 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 26
Slide 28: 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 29: 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 30: Integrated Manufacturing Units and R&D
Integrated Manufacturing Units and R&D Kashipur (Uttarakhand) Gwalior (Madhya Pradesh) R&D Centre (Delhi – NCR) 29
Slide 31: PLI strengthening Backward Integration
PLI strengthening Backward Integration Surya Roshni has received approval under Objectives ‘Large Investment’ category for To boost manufacturing of ‘Components of LED Lightings’ of India, to reduce manufacturing of components of LED dependency on imports of components lighting Benefits to Surya Tar
Slide 32: 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 33: Transition towards LED Lighting and FMEG
Transition towards LED Lighting and FMEG FY15-16 FY 16-17 FY 18-19 FY 19-20 FY 20-21 Sr. Product Name Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA No 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% 1
Slide 34: Building Financial Strength
Building Financial Strength ₹ in crore Revenue EBITDA 1,240 128 1,282 1,383 1,553 1,248 137 138 149 102 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Worth Debt 367 123 394 408 481 317 331 322 406 365 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 33
Slide 35: 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 36: 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 37: Financial Highlights
Financial Highlights 36
Slide 38: Income Statement – Q3 and 9M FY22
Income Statement – Q3 and 9M FY22 Particulars (Rs. Crores) Q3 FY22 Q3FY21 9MFY22 9MFY21 9M YoY Total Revenue from Operations 2,030.3 1,578.2 5,429.4 3,839.5 41% Cost of Material Consumed 1,506.2 1,184.0 4,230.1 2,720.2 Purchase of Stock In Trade 97.6 99.1 232.8 177.5 Changes in Inventories 41.4 (41.
Slide 39: 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 (b) Capital work-in-progress 15 10 Sub Total (I) 1,42
Slide 40: Cash Flow Statement
Cash Flow Statement Half Year ended Full Year ended Full Year ended Particulars (Rs. Crores – Consol.) 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)
Slide 41: 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 42: CSR Activities
CSR Activities Women Empowerment & Skill Development Youth Day Our dedicated CSR arm Surya Foundation, discharges responsibilities in the fields of health, skill development and education. 41
Slide 43: 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