Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (May 2021)
50 slides from Surya Roshni's investor presentation, May 25, 2021
Slide 1: Cover letter to stock exchanges
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 /21-22/29/bbs04 May 25, 2021 The Secretary The Manager (Listing Department) The Stock
Slide 2: Surya Roshni Limited Investor Presentation – May 2021
Surya Roshni Limited .......Seeking Opportunities by Value-Creation Investor Presentation – May 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 Company Highlights . 03 Lighting & Consumer Durables 04 Steel Pipes & Strips 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: Q4 Results Highlights of the Company
Q4 Results Highlights of the Company In Rs Crs Revenue: +29% - Q4 (YoY) Cash Profit: +60% - Q4 (YoY) PAT: +96% - Q4 (YoY) FY20 1,722 101 106 59 FY21 1,578 56 1,374 84 42 887 1,398 24 1,339 1,323 1,412 54 56 68 66 19 2 22 31 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PAT grew by 96% YoY in Q4FY21 EBITDA
Slide 7: Q4 Results Highlights - Lighting & Consumer Durables
Q4 Results Highlights - Lighting & Consumer Durables In Rs Crs Revenue: +17% - Q4 (YoY) EBITDA: +62% - Q4 (YoY) PBT: +175% - Q4 (YoY) Margin 369 31 31 FY20 8.7% 6.7% 8.1% 10.5% 7.9% 10.9% 8.3% 11.4% 356 FY21 329 40 40 23 35 186 13 320 307 317 303 28 25 25 25 12 1 9 11 11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 8: Q4 Highlights - Steel Pipes and Strips
Q4 Highlights - Steel Pipes and Strips In Rs Crs Revenue: +31% - Q4 (YoY) EBITDA: +22% - Q4 (YoY) PBT: +65% - Q4 (YoY) EBITDA / MT 47 2,856 2,463 3,242 3,311 3,433 3,726 3,490 4,251 43 FY20 1,366 1,212 81 34 FY21 1,048 77 67 702 32 1,093 1,017 1,084 1,041 57 60 73 66 17 2 21 31 28 Q1 Q2 Q3 Q4 Q1 Q2
Slide 9: Improvement in RoCE
Improvement in RoCE Lighting & Consumer Steel Pipes and Strips Company Durables 15.2% 26.3% 14.5% 17.8% 17.1% 24.6% 12.2% 11.6% 13.8% 17.8% 11.0% 9.7% Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 8
Slide 10: Reduction in Overall Net Working Capital
Reduction in Overall Net Working Capital Inventory Days Debtors Days Net Working Days 63 47 91 43 42 40 75 49 48 46 65 59 Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q2 FY21 Q3 FY21 Q4 FY21 9
Slide 11: About Surya Roshni
About Surya Roshni 10
Slide 12: A Strong Foundation
A Strong Foundation 1973 #1 Rs 5,561 crores 45+ Years of Brand Equity Sales as on GI Pipes manufacturer Established Steel Pipe March 31, 2021 manufacturing unit at Bahadurgarh #1 #2 ERW Pipes exporter Lighting company (50+ countries) in India 21,000+/250+ 2,50,000+/2,500 Credit Rating Countrywide de
Slide 13: Professional Management Team
Professional Management Team Mr. Jai Prakash Agarwal Promoter and Executive Chairman Mr. Agarwal is the driving force behind creating Surya as one of the most reputed, trusted and successful companies. He has been honored with highly prestigious Padma Shri Award by Govt. of India. Mr. Raju Bista Man
Slide 14: 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 15: Transformation Journey of last 5 Years
Transformation Journey of last 5 Years Greater Degree of Professionalism Sound Financials with Substantial Debt Reduction • Inducted Professional CEOs and CFO • Net Debt/Equity Ratio at 0.52 times • Diversified the Board of Directors • Substantial reduction of finance cost (3.25% to 1.25% of Turnove
Slide 16: Driven by Focus on Improving Value Creation
Driven by Focus on Improving Value Creation Improving Asset Utilization Driving Cost Improvement in ROE Efficiencies and EBITDA / MT Continuous Efficient Working Debt Reduction Focus Capital Management 15
Slide 17: Strategically Located Facilities
Strategically Located Facilities Lighting Plants Units Established Products Capacity Kashipur, LED lights & filaments and 1984 • 90 Million LED Bulbs Uttarakhand MCPCBs & Drivers Kashipur, Uttarakhand Gwalior, Madhya LED lights, GLS, Caps, • 3.6 Million Street Lights 1992 Pradesh MCPCBs, Drivers, et
Slide 18: Lighting & Consumer Durables
Lighting & Consumer Durables Driving Strong Performance 17
Slide 19: Enhancing Brand Visibility
Enhancing Brand Visibility 18
Slide 20: Glimpse of Recently completed projects
Glimpse of Recently completed projects Façade lighting of Bhuteshwar Temple Façade lighting of Bhuteshwar Kedarnath Temple Temple Ahmedabad Railway Station BKC Connector Bridge Ahmedabad Railway Station 19 19
Slide 21: 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 22: Distribution Strength – PAN India Reach
Distribution Strength – PAN India Reach Revenue Split FY 20-21 Rural LED 50% 54% PVC North 5% 33% Consumer Metro Cities Tier II Conventional Durables 23% 16% 34% 18% By Product By Population West East 26% 13% #1 - States such as AP, Telangana, MP, Chhattisgarh, UP and Jharkhand #2 in Karnataka, Delh
Slide 23: Strong Transition to LED
Strong Transition to LED… 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% 56%
Slide 24: Our Production Facilities and R&D
Our Production Facilities and R&D Production Capacity LED Bulbs Street-Lights LED Batten GLS Bulbs 90 Million Pieces 3.6 Million Pieces 10 Million Pieces 200 Million Pieces Kashipur Lighting Unit - Established in 1984 • Manufactures LED lights (Lamps, Street Lights, Downlighters and Battens) & filam
Slide 25: Positive Trends
Positive Trends Indian Lighting Industry grew massively in With 100 Smart Cities underway, India is moving LED lighting and is expected to touch USD 5 towards Futuristic Smart Intelligent Lighting billion over next 5 years Reducing imports from China for LED lightings The ‘Make In India’ drive creat
Slide 26: Proposed PLI Scheme for LED Lights
Proposed PLI Scheme for LED Lights Objective Additional Investment • Make manufacturing in India globally • Additional investments of Rs. 7,920 Crore competitive by removing sectoral disabilities, • Generate Direct and indirect Revenues of - creating economies of scale and ensuring Rs. 49,300 Crore
Slide 27: 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 Inclusion of Consumer Durables retailer network leading to additional (Fans and Appliances) revenue stream
Slide 28: Growth Strategy
Growth Strategy Goals and Aspirations Where to Play Strengthen #2 position in Lighting further, drive high Solutions and Offerings: growth in Consumer Durables and launch new ▪ Drive energy efficient LED solutions businesses ▪ Consolidate leadership in Conventional ▪ Leadership in LED across Consume
Slide 29: 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 ▪ Focus on Brand Building, Marketing, Advertising and Com
Slide 30: 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 31: Lighting & Consumer Durables Financial Performance
Lighting & Consumer Durables Financial Performance Revenue Cash Profit PAT In Rs Crs 115 66 1,240 1,553 1,311 1,282 1,383 1,248 119 101 112 121 72 70 58 62 73 31 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Capital Employed Networth Debt 367 490 123 696 7
Slide 32: Steel Pipes & Strips
Steel Pipes & Strips Strong Market Leadership
Slide 33: Steel Pipes and Strips Product Highlights
Steel Pipes and Strips Product Highlights Galvanised (GI) Black Hollow Section API Coated Pipes 12% CR Strips 11% 23% 19% 35% • Agriculture • Construction Works • Engineering & • Oil & Gas Pipelines • Auto Components • Casing and tubing • Fabrication • Architectural • Oil Well Casing • Electrical St
Slide 34: 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 2
Slide 35: Strategically Located Manufacturing Plants
Strategically Located Manufacturing Plants Bahadurgarh (Haryana) Anjar (Gujarat) Hindupur (Andhra Pradesh) Gwalior (Madhya Pradesh) • Established in 1973 • Established in 2010 • Established in 2017 • Established in 2010 • Location • Location • Location • Location • Spread over 53 acres, • Spread ove
Slide 36: 3LPE Coating Plant – Driving Growth
3LPE Coating Plant – Driving Growth… Accreditations • Accreditations from all major PMC like EIL, Mecon, Tractebel, Worly Pearson etc. • Certifications of ISO 9001, 14001 & 18001 Application • Transportation of Petroleum & Natural Gas, City Gas and Bulk Water Transportation mainly in Reiver connecti
Slide 37: Leveraging Strong Brand and Distribution Network
Leveraging Strong Brand and Distribution Network Selling with ‘Prakash Surya’ Brand across India via established Dealer and Distributor network. Strong brand leadership, historical presence, channel reach across India with strong presence in Tier II and Rural India, relationship build over decades P
Slide 38: 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 39: Value accretive strategies and outcomes
Value accretive strategies and outcomes 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 an
Slide 40: Supplying Products to Renowned Projects Abroad
Supplying Products to Renowned Projects Abroad Qatar FIFA 2022 Dubai EXPO 2021 Export of Rs. 693 crores in FY 20-21 Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) from India Exports to over 50 countries including Middle East, Australia, Europe, USA, Canada, Mexico, Ghana, Nigeria,
Slide 41: Financial Performance
Financial Performance Revenue In Rs Crs Cash Profit PAT 4,328 93 199 1,654 2,605 3,555 4,427 4,235 29 100 131 140 171 28 46 48 72 -7 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Capital Employed Networth Debt 1,000 1,594 594 1,296 1,414 1,457 1,648 890 34
Slide 42: Operational Performance
Operational Performance Total QTY Vs Fresh QTY (in Lac MT) Fixed Asset/ Turnover (in Times) 5.28 8.12 8.44 7.70 7.39 6.15 4.28 2.41 2.97 4.10 4.98 4.96 3.96 5.74 6.89 7.49 7.84 7.25 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA/ MT (In Rs.) Increasing volume of other units (excl
Slide 43: Clients and Customers
SURYA Shell Wearing hear igincrhe city Q Reliance Industries Limited @ LARSEN & TOUBRO Clients and Customers A Navratna Company AYE Marubeni Aceh digh ver war Voror FeFTE Delhi Metro Rail Corporation Limi rea femme ferera INDRAPRASTHA GAS LIMITED GAIL (India) Limited ees SURYA ‘STEEL TUBES & PIPES 4
Slide 44: Financial Highlights
‘STEEL TUBES & PIPES 44 2064 43
Slide 45: Financial Performance
Financial Performance In Rs Crs Revenue PAT Debt to Equity 158 5,561 0.52 2,964 3,884 4,931 5,975 5,471 1.29 1.13 1.05 1.03 0.88 108 121 103 63 86 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Capital Employed ROCE ROE Debt Netwoth 12.7% 12.1% 2,344 2,329
Slide 46: Income Statement – Q4 & FY21
Income Statement – Q4 & FY21 Q4 Q3 Full Year Particulars (Rs. Crores) FY21 FY20 YoY FY21 FY20 FY21 FY20 YoY Total Revenue from Operations 1,722 1,339 28.6% 1,578 1,398 5,561 5,471 1.7% Cost of Material Consumed 1,342 968 1,184 972 4,062 4,069 Purchase of Stock In Trade 87 80 99 72 265 263 Changes in
Slide 47: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. Crores) Mar-21 Mar-20 ASSETS (Rs. Crores) Mar-21 Mar-20 (I) EQUITY (I) NON-CURRENT ASSETS (a) Equity Share capital 54 54 (a) Property, plant & equipment 1,015 1,049 (b) Other equity 1,314 1,185 (b) Capital work-in-progress 10 15 Sub Total (I) 1,
Slide 48: Cash Flow Statement
Cash Flow Statement Full Year ended Full Year ended Full Year ended Particulars (Rs. Crores) 31-Mar-21 31-Mar-20 31-Mar-19 Profit before tax 212 140 172 Depreciation and Interest 173 210 204 Operating Profit Before Working Capital Changes 385 350 376 Change in Working Capital 210 (35) (221) Cash gen
Slide 49: CSR Initiatives
CSR Initiatives… Naturopathy and yoga Personality Development Our dedicated CSR arm Surya Foundation, discharges responsibilities in the fields of health, skill development and education. 48
Slide 50: Thank You
Contact Us For further information, please contact: Company Investor Relations Advisors CIN: L31501HR1973PLC007543 CIN : U74140MH2010PTC204285 Mr. Tarun Goel Mr. Jigar Kavaiya / Mr. Pratik Tirodkar +91 9810248348 +91 99206 02034 / +91 9869431195 Email: tarungoel@surya.in jigar.kavaiya@sgapl.net / pr