Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (October 2020)
38 slides from Surya Roshni's investor presentation, Oct 29, 2020
Slide 1: Exchange filing cover letter
SURYA ROSHNI LIMITED An IS/ISO 9001 , An IS/ISO 14001 & IS 18001 Company CIN - L3150 1HR1973PLC00754 3 2nd Floor, Pad ma 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.surva .co tn SRL/se/20-21/40 October .29,
Slide 2: Surya Roshni Limited Investors Presentation October 2020
Surya Roshni Limited Investors Presentation October 2020 1
Slide 3: Index
The Company's Promoter & Executive Chairman, Shri Jai Prakash Agarwal, was conferred with Padma Shree Award for his distinguished services in the field of Trade and Industry by the Government of India Index Business Highlights Historical Financials Q2FY21 Results Steel Pipes & Strips Lighting and Co
Slide 4: Surya Roshni – Over Four Decade Strong Foundation
Surya Roshni – Over Four Decade Strong Foundation… 1973 45 years+ Rs 5,471+ crores Established Steel Pipe Brand Equity Conglomerate as on March 31, manufacturing unit at Bahadurgarh 2020 #1 #2 #1 GI Pipes manufacturer Lighting company ERW Pipes exporter (50+ countries) Interim Dividend 2,50,000+/2,5
Slide 5: With a Nation-wide Presence
…With a Nation-wide Presence… Steel Pipe & Strips Plants Corporate Office Lighting Plants Delhi Bahadurgarh (Haryana) 1973 Noida Kashipur (Uttarakhand) Gwalior (Madhya Pradesh) 1984 2010 Malanpur (Gwalior) 1992 Anjar (Gujarat) 2010 Branches Hindupur (AP) North Zone 2017 East Zone West and Central Zo
Slide 6: Driven by Focus on Improving Value Creation
… Driven by Focus on Improving Value Creation Rs 156 crores Rs 353 crores 0.69 F Continuous debt reduction Reduction in liabilities Reduction in liabilities Debt-Equity Ratio During FY19-20 During H-1 (FY20-21) of H-1 (FY20-21) O Cost efficiencies 5+ Rs 3,264 Less than 6.25% C Improving asset utilis
Slide 7: Key Highlights - Q2 (FY 2021)
Key Highlights - Q2 (FY 2021) • 86% growth in PAT due to improvement in Margins & reduction in Finance Cost. • Regained the volumes in both the segments after Lockdown (Covid-19) due to dominance in rural and semi urban areas. • Strong Cash Flow Generation from operations led to reduction in Financi
Slide 8: Summary of Results - Q2 (FY-2021)
Summary of Results - Q2 (FY-2021) (Rs in cr) Particulars Q2 FY 21 Q2 FY 20 Growth Q1 FY 21 Revenue from Operation 1,374 1,323 4% 887 Healthy Volume growth in both the Less Material Cost 1,047 1,024 2% 699 segments. Gross Margin 327 299 9% 188 % of Revenue 23.8% 22.6% 21.1% Less: Employee Cost 78 77
Slide 9: Segment Wise Results
Segment Wise Results Steel Pipe & Strips Segment (Rs in Cr) Particulars Q2 FY 21 Q2 FY20 Growth Q1 FY21 Gross Volume (MT) 2,13,691 1,98,325 8% 1,34,944 Revenue 1048 1017 3% 702 EBIDTA 67 60 11% 32 EBIDTA PMT (Fresh Pipes) 3,311 3,242 2% 2,463 Cash Profit 53 39 35% 16 Profit Before Tax 34 21 62% 2 Li
Slide 10: Cash Flow Highlights
Cash Flow Highlights (Rs in cr) Half Year Ended Year Ended Particulars 30th Sept’ 20 30th Sept’ 19 31st Mar’ 20 Profit Before Tax 60 58 140 Add :- Depreciation 48 51 103 Add :- Interest and others 34 54 107 Add :- (Increase) / Decrease In Working Capital 180 11 (35) Less: Taxes paid (10) (17) (39) N
Slide 11: Financials of Company
Financials of Company (INR in Crores) Revenue EBITDA PAT 5,975 PBT Depreciation Interest 5,471 4,931 376 358 121 349 108 3,884 314 115 103 105 114 86 244 113 2,964 63 96 87 89 103 84 61 157 172 140 87 118 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed ROE
Slide 12: Steel Pipes & Strips
Steel Pipes & Strips Extensive Applications 11
Slide 13: Steel Pipes & Strips Business – Leading by Value-addition
Steel Pipes & Strips Business – Leading by Value-addition Position and Brand Largest Exporter of ERW Pipes and largest manufacturer of ERW 5 Year CAGR GI pipes in India under Brand “PRAKASH SURYA” 19% Particulars Plant Locations Bahadurgarh (Haryana) Gwalior (M.P.) Anjar (Gujarat) Hindupur (A.P) Pro
Slide 14: Steel Pipes & Strips – % Share and Applications
Steel Pipes & Strips – % Share and Applications Galvanised (GI) 35% Black 24% Hollow Section 19% API Coated Pipes 11% CR Strips 11% Agriculture Construction Works Engineering & Oil & Gas Pipelines Auto Components Casing and tubing Fabrication Architectural Oil Well Casing Electrical Stamping for Hot
Slide 15: Strategically Located Manufacturing Units
Strategically Located Manufacturing Units Bahadurgarh Gwalior Anjar Hindupur (NCR – Delhi) Est. 1973 (Madhya Pradesh) Est. 2010 (Gujarat) Est. 2010 (Andhra Pradesh) Est. 2017 Spread over 53 acres, Spread over 51 acres, Spread over 96 Acres, State-of-the-art facility set proximity to Bahadurgarh cent
Slide 16: 3LPE Coated Manufacturing Unit
3LPE Coated Manufacturing Unit World -class 3LPE coating plant from SELMERS, Expansion Netherlands Expansion of 3LPE coating facility by installing Established track record, obtained accreditations, second line pipe facility (9,00,000 Sq Mtr) certifications of ISO 9001, 14001 & 18001 Estimated capex
Slide 17: Steel Pipes & Strips Segment
Steel Pipes & Strips Segment EBITDA & EBITDA Margin 5.0% 6.8% 5.9% 5.1% 6.0% Revenue PBT Depreciation Interest PAT (INR in Crores) 4,427 256 4,235 210 227 72 3,555 176 85 46 48 79 87 2,605 76 74 28 84 67 66 1,654 55 63 64 74 97 -7 39 37 -10 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17
Slide 18: Steel Pipes & Strips Segment Performance Improvement
Steel Pipes & Strips Segment Performance Improvement Total QTY Vs Fresh QTY (in MT) Fixed Asset/ Turnover (in Times) 4.98 4.96 8.12 8.44 4.1 7.39 6.15 2.97 2.41 4.28 7.84 7.49 6.89 5.74 3.96 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Total Qty Fresh Qty EBITDA/ Tonne (In Rs.) Sales Volume exc
Slide 19: Product wise sale % and EBITDA Per Tonne
Product wise sale % and EBITDA Per Tonne FY 15-16 FY 16-17 FY 18-19 FY 19-20 CAGR S.No Product Name Share EBITDA Share EBITDA Share EBITDA Share EBITDA QTY 1 GI Pipe 25% 3,490 37% 4,620 30% 4,557 35% 4,534 29% 2 Round Pipe 32% 1,744 24% 2,144 27% 2,205 24% 2,023 10% 3 Section Pipe 19% 1,535 13% 1,88
Slide 20: Value accretive strategies and outcomes
Value accretive strategies and outcomes Strategies Outcomes Hindupur operations Savings in logistics cost, increase in market share, economies of scale and reduced dependency on the Bahadurgarh unit. Higher capacity utilization of spiral & API pipes, savings in logistics 3LPE coating facility at Anj
Slide 21: 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.
Slide 22: Seeking Industrial Opportunities
Seeking Industrial Opportunities Water Oil and Gas City Gas Distribution ‘Har Ghar Nal se Jal’ mission aims to Demand for primary energy in India is The city gas projects in 232 provide safe and adequate drinking expected to increase three-folds by geographical areas covering more water to 150 milli
Slide 23: Supplying Products to Renowned Projects Abroad
Supplying Products to Renowned Projects Abroad Dubai EXPO 2021 Share in India's Total Export of ERW GI & Black Pipes 54% No.1 Surya Roshni No.2 Player 10% No.3 Player 24% 12% Others Dubai Frame Museum of Future Qatar FIFA 2022 Export Growth 28% in FY20 Largest exporter of ERW Pipes and ERW Galvanize
Slide 24: Lighting & Consumer Durables
Lighting & Consumer Durables 23
Slide 25: World-class Facilities with Innovation-driven R&D Centre
World-class Facilities with Innovation-driven R&D Centre Kashipur Lighting Unit Est. 1984 Gwalior Lighting Unit Est. 1992 R&D – To drive the change towards Smart Lighting Est. 2013 Manufactures LED lights (Lamps, Street Lights, Lighting Glass Plant, manufacturing LED lights Surya Technology & Innova
Slide 26: Distribution Strength – PAN India reach
Distribution Strength – PAN India reach Rural based distribution network and having 2,50,000 Retail Outlets . Transparent and attractive polices, schemes, incentives and foreign tours. Secondary Network of 300+ RTF & 2,500+ DSPs supports primary network and promotes effective communication with the
Slide 27: Lighting & Consumer Segment
Lighting & Consumer Segment (INR in Crores) Revenue EBITDA PAT 1,553 73 1,383 70 1,311 1,282 1,247 160 PBT Depreciation Int 62 149 58 42 138 138 26 28 103 37 22 20 23 31 21 30 98 30 97 81 92 43 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed ROCE ROE 886 1
Slide 28: Positive Trends
Positive Trends Monumental Lighting in Leh Fort Indian Lighting Industry grew massively in LED lighting (with major drop in conventional lighting) and is estimated to touch USD 5 billion, multifold growth in next 5 years. With 100 Smart Cities underway, India is moving towards Futuristic Smart Intel
Slide 29: Transition in Lighting & Consumer Durables Segment
Transition in Lighting & Consumer Durables Segment FY 2015-16 FY 2016-17 FY 2018-19 FY 2019-20 Sl No Particular Sales EBIDTA Sales EBIDTA Sales EBIDTA Sales EBIDTA 1 LED- Trade 12% 20% 24% 18% 38% 14% 49% 11% 2 LED-EESL 7% 8% 11% 12% 21% 11% 8% 8% Total LED (1 + 2) 19% 16% 35% 16% 60% 13% 56% 11% 3
Slide 30: Value accretive strategies and outcomes
Value accretive strategies and outcomes Strategies Outcomes Establishment of the R&D Centre Growth in LED business, aligned portfolio with market opportunities and manufacture value-added new generation LEDs in-house along with LED Façade & Solar Lighting Inclusion of consumer durables (fans and Lev
Slide 31: PVC Pipes – Offering Sizeable Business Opportunities
PVC Pipes – Offering Sizeable Business Opportunities Applications: 17% revenue growth in The Company has Housing, irrigation, FY20, Rs. 562 mn as already crossed infrastructure, compared to Rs. 481 approximately 70% drainage and mn in FY19. utilisation in June 2020 chemical and is further exploring
Slide 32: Enhancing Brand Visibility
Enhancing Brand Visibility Principal Sponsor Rajasthan Royals, IPL 2019 Light India Show 2018, New Delhi Surya Fans Print Ad with celebrity Scan to view the AD Atmanirbhar Bharat Television Ad Atmanirbhar Bharat Print Ad Dealer Conference, Singapore Cruise 31
Slide 33: Strong Core Values
Strong Core Values Surya Parivar Principle-centric, close-knit family, trust, mutual respect and team spirit Integrity Moral Principles, undivided spirit. reflects in personal lives, financial transactions and business deals CORE VALUES Social Responsibility Eco-Friendly products, optimised resource
Slide 34: CSR and Surya Foundation
CSR and Surya Foundation Bal Vikas Kendra Naturopathy and yoga Our dedicated CSR arm Surya Personality Development Foundation, discharges responsibilities in the fields of health, skill development and education. 33
Slide 35: Our Experienced Management Team
Our Experienced 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 in both business verticals viz. Steel Pipe & Strips and Lighting & Consumer Durables. He has bee
Slide 36: Clients & Customers
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Slide 37: 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 38: 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 B