Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (July 2021)
49 slides from Surya Roshni's investor presentation, Jul 31, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
SURYA ROSHNI LIMITED An IS/ISO 9001, An IS/ISO 14001 & IS: 18001 Company CIN - L31501HR1973PLC007S43 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/21-22/53 Joly 31, 2021 The Secre
Slide 2: Surya Roshni Limited: Investor Presentation July 2021
Surya Roshni Limited .......Seeking Opportunities by Value-Creation Investor Presentation – July 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: Q1 Results Highlights of the Company
Q1 Results Highlights of the Company In Rs Crs Revenue: +64% (YoY) EBITDA: +112% (YoY) Cash Profit: +221% (YoY) 93 1,453 76 887 44 24 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 EBITDA Margins improved by 144 bps to 6.41% in Q1 FY22 from 4.96% in Q1 FY21 Finance Cost reduction by 17% in Q1FY22 t
Slide 7: Results Highlights - Lighting & Consumer Durables
Results Highlights - Lighting & Consumer Durables Revenue: +14% (YoY) EBITDA: +31% (YoY) Cash Profit: +84% (YoY) Margin 6.7% 7.6% 215 16 14 12 186 8 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Revenue growth driven by 51% growth in Consumer Lighting – B2C • LED lighting grew by 29% whereas Conve
Slide 8: Highlights - Steel Pipes and Strips
Highlights - Steel Pipes and Strips In Rs Crs Revenue: +77% (YoY) EBITDA: +143% (YoY) Cash Profit: +289% (YoY) EBITDA / MT 2,463 5,033 1,239 77 62 702 32 16 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Volume growth of 22% in Q1 FY22 on YoY basis Ever Highest EBITDA/MT at Rs 5,033 as against Rs 2
Slide 9: About Surya Roshni
About Surya Roshni 8
Slide 10: A Strong Foundation
A Strong Foundation 1973 #1 Rs 5,561 crores Established Steel Pipe Sales as on GI Pipes manufacturer in manufacturing unit at March 31, 2021 India Bahadurgarh. More than 4 decades of Brand Equity #1 #2 ERW Pipes exporter Lighting company (50+ countries) in India 21,000+/250+ 2,50,000+/2,500 Credit R
Slide 11: 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 company. He has been honored with highly prestigious Padma Shri Award by Govt. of India. Mr. Raju Bista Manag
Slide 12: 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 13: Transformation Journey
Transformation Journey Greater Degree of Professionalism Sound Financials with Substantial Debt Reduction • Inducted Professional CFO and CEOs • Debt/Equity Ratio at 0.51 times as on 30th June 2021 • Diversified the Board of Directors • PAT grew by 3 times in last 5 years • ESOPs to < 225 Key Execut
Slide 14: Strategically Located Facilities
Strategically Located Facilities Lighting Plants Units Established Products Capacity Kashipur, LED lights & filaments and 1984 Uttarakhand MCPCBs & Drivers • 90 Million LED Bulbs Kashipur, Uttarakhand Gwalior, Madhya LED lights, GLS, Caps, 1992 • 3.6 Million Street Lights Pradesh MCPCBs, Drivers, et
Slide 15: Lighting & Consumer Durables
Lighting & Consumer Durables Driving Strong Performance 14
Slide 16: Enhancing Brand Visibility
Enhancing Brand Visibility 15
Slide 17: 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 16 16
Slide 18: Glimpse of Products Range
Glimpse of Products Range 17
Slide 19: 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 20: Distribution Strength – PAN India Reach
Distribution Strength – PAN India Reach Revenue Split Q1 FY22 Rural LED 57% 56% PVC North 6% 32% Consumer Conventional Metro Cities Tier II Durables 21% 18% 25% 17% By Product By Population West East 25% 11% #1 - States such as AP, Telangana, MP, Chhattisgarh, UP and Jharkhand #2 in Karnataka, Delhi
Slide 21: Strong Transition towards FMEG
Strong Transition towards FMEG… 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
Slide 22: Our Production Facilities and R&D
Our Production Facilities and R&D Kashipur Lighting Unit - Established in 1984 • Manufactures LED lights (Lamps, Street Lights, Downlighters and Battens) & Filaments and MCPCBs & Drivers Gwalior Lighting Unit - Established in 1992 • Manufactures LED lights (Lamps, Street-lights, Decorative lighting)
Slide 23: Positive Trends
Positive Trends LED Lighting continues to grow, given the LED pricing is on an increasing trend, opportunity in replacement of conventional replacement percentage reduction will help in lamps and fixtures, as well as new points improving profitability Reduced imports from China of finished LED With
Slide 24: Proposed PLI Scheme for Manufacturing of Components for LED Lighting
Proposed PLI Scheme for Manufacturing of ‘Components for LED Lighting’ • To boost manufacturing of ‘Components for LED Lightings’ India to reduce dependency on imports of 01 Objective components to create ourselves as Champions • For manufacturing of Components of LED Lighting Products ( i.e. LED Dr
Slide 25: 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 Growth of Consumer Durables retailer network leading to additional (Fans and Appliances) revenue stream Cha
Slide 26: Market Growth Strategy
Market Growth Strategy Goals and Aspirations Where to Play Strengthen #2 position in Domestic Lighting further, Solutions and Offerings: drive high growth in Consumer Durables and launch ▪ Drive energy efficient LED solutions new businesses ▪ Consolidate leadership in Conventional ▪ Leadership in LE
Slide 27: 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 Components ▪ Focus on Brand Building, Marketing, Advertis
Slide 28: 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 29: Lighting & Consumer Durables Yearly Financial Performance
Lighting & Consumer Durables Yearly 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 12
Slide 30: Steel Pipes & Strips
Steel Pipes & Strips Strong Market Leadership
Slide 31: 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 • Motor Stamping
Slide 32: 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 33: Strategically Located Manufacturing Plants
Strategically Located Manufacturing Plants Bahadurgarh (Haryana) Anjar (Gujarat) Gwalior (Madhya Pradesh) Hindupur (Andhra Pradesh) • Established in 1973 • Established in 2010 • Established in 2010 • Established in 2017 • Location • Location • Location • Location • Spread over 53 acres • Spread over
Slide 34: 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 & Benefits • Transportation of Petroleum & Natural Gas, City Gas and Bulk Water Transportation mainly in Rive
Slide 35: Leveraging Strong Brand and Distribution Network
Leveraging Strong Brand and Distribution Network Selling under ‘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 36: 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 37: 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 38: Supplying Products to Renowned Projects Abroad
Supplying Products to Renowned Projects Abroad Qatar FIFA 2022 Dubai EXPO 2021 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, among others. China + 1 strategy to
Slide 39: Steel Pipes & Strips Yearly Financial Performance
Steel Pipes & Strips Yearly 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,
Slide 40: Steel Pipes & Strips Operational Performance
Steel Pipes & Strips 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
Slide 41: Clients and Customers
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Slide 42: Financial Highlights
‘STEEL TUBES & PIPES C4 se48 41
Slide 43: Annual Financial Performance
Annual 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
Slide 44: Income Statement – Q1 and Annual
Income Statement – Q1 and Annual Particulars (Rs. Crores) Q1 FY22 Q1FY21 FY21 FY20 YoY Total Revenue from Operations 1,453 887 5,561 5,471 1.7% Cost of Material Consumed 1,206 580 4,062 4,069 Purchase of Stock In Trade 42 26 265 263 Changes in Inventories -107 94 16 -96 Total Raw Material 1,141 701
Slide 45: 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 46: 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 47: 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 46
Slide 48: 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. 47
Slide 49: Thank You
Contact Us Company Investor Relations Advisors CIN: L31501HR1973PLC007543 CIN : U74140MH2010PTC204285 Mr. Tarun Goel Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar +91 9810248348 +91 99206 02034 / +91 9860088296 Email: tarungoel@surya.in jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net www.surya.co.in www.s