Surya Roshni Limited · NSE:SURYAROSNI
Surya Roshni — Investor Presentation (January 2021)
49 slides from Surya Roshni's investor presentation, Jan 27, 2021
Slide 1: Surya Roshni Limited cover letter to exchanges
~'!R'.llq.J &.~ An Isnso 9001 An IS,ISO 14001 & IS 18001 Company SURYA ROSHNI LIMITED CIN - L31501 HR1973PLC007543 2nd Floor. Pad ma Tower-1. Raiendra Place New Delhi-110 008 Ph +91 -11-25810093-96, 47108000 Fax +91-11-25789560 E-mail cs@surya.1n Website : www surva co In SRL/se/20-21/66 January 27,
Slide 2: Surya Roshni Limited - Investor Presentation January 2021
Surya Roshni Limited .......Seeking Opportunities by Value-Creation Investor Presentation – January 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 Key Takeaways 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 and In
Slide 5: Quarterly Financial Updates
Quarterly Financial Updates 4
Slide 6: Q3 Results Highlights of the Company
Q3 Results Highlights of the Company In Rs Crs Revenue: +13% YoY Cash Profit: +49% YoY PAT: +80% YoY FY20 56 1,578 101 FY21 1,374 84 42 887 1,398 24 1,323 1,412 54 56 68 19 2 22 31 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 EBITDA grew by 20% in Q3 FY21 to Rs 117 crore from Rs 98 crore in Q3 FY20 Faster volume grow
Slide 7: Lighting & Consumer Durables Segment
Lighting & Consumer Durables Segment Q3 FY21 Results Highlights In Rs Crs Revenue: +17% YoY EBITDA: +63% YoY PBT: +195% YoY Margin 8.7% 6.7% 8.1% 10.5% 7.9% 10.9% 31 FY20 329 369 FY21 40 23 35 186 13 317 307 320 28 25 25 12 1 9 11 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Cash Profit grew by 115% in Q3 FY21 to Rs
Slide 8: Steel Pipes and Strips Segment
Steel Pipes and Strips Segment Q3 FY21 Results Highlights In Rs Crs Revenue: +12% YoY EBITDA: +6% YoY PBT: +37% YoY EBITDA / MT FY20 2,856 2,463 3,240 3,311 3,433 3,726 43 1,212 77 34 FY21 1,048 67 702 32 1,084 1,093 1,017 57 60 73 17 2 21 31 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Cash Profit grew by 26% in Q3
Slide 9: Improvement in RoCE
Improvement in RoCE Lighting & Consumer Steel Pipes and Durables Segment Strips Segment Company 17.1% 14.5% 24.6% 12.2% 13.8% 11.7% 17.8% 10.9% 9.2% Mar-20 Sep-20 Dec-20 Mar-20 Sep-20 Dec-20 Mar-20 Sep-20 Dec-20 Note: RoCE is annualized 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 75 49 48 65 Mar-20 Sep-20 Dec-20 Mar-20 Sep-20 Dec-20 Mar-20 Sep-20 Dec-20 Note: NWC is annualized 9
Slide 11: 9M Results Highlights
9M Results Highlights Consolidated Highlights Revenue of Rs. 3,840 crore in 9M FY21 as compared to Rs. 4,132 crore in 9M FY20 EBITDA stands to Rs. 263 crore in 9M FY21 as compared to Rs. 267 crore in 9M FY20 Cash Profit grew by 18% to Rs. 208 crore in 9M FY21 as compared to Rs. 177 crore in 9M FY20
Slide 12: About Surya Roshni
About Surya Roshni 11
Slide 13: A Strong Foundation
A Strong Foundation 1973 #1 Rs 5,471 crores 45+ Years of Brand Equity Sales as on GI Pipes manufacturer Established Steel Pipe March 31, 2020 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 14: 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 15: 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 16: Transformation Journey of last 5 Years
Transformation Journey of last 5 Years Professionalism Strengthening of Brand • Professional management at the top • Increased the budget for marketing • Entire operations run by Experienced activities to penetrate newer markets professionals across the board • Spent Rs 15.6 Crores on advertising in
Slide 17: Driven by Focus on Improving Value Creation
Driven by Focus on Improving Value Creation F O C U S Continuous Driving Cost Improving Asset Efficient Working Capital Improvement in ROE and Debt Reduction Efficiencies Utilization Management EBITDA / MT Rs 284 Crores Reduction in debt during 9M FY21 ESOP’s for Employees 6+ Rs 3,726 B Increasing F
Slide 18: Business Overview
Business Overview Lighting & Consumer Durables Segment Steel Pipes & Strips Segment Forayed into Lighting operations in 1984 and into Consumer Established as a Steel Pipe Manufacturer in 1973 Durables in 2014-15 2 manufacturing plants at Gwalior (Madhya Pradesh) and #1 GI Pipes manufacturer and ERW
Slide 19: 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 20: Lighting & Consumer Durables
Lighting & Consumer Durables Driving Strong Performance 19
Slide 21: Enhancing Brand Visibility
Enhancing Brand Visibility Scan to view the AD 20
Slide 22: Monumental Lighting at Shri Kedarnath Temple
Monumental Lighting at Shri Kedarnath Temple 21
Slide 23: Evolving Product Portfolio
Evolving Product Portfolio LED-Trade Conventional 14% 12% LED- EESL Consumer Durables 20% CFL 7% 49% 2016 2020 24% 22% 43% 1% 8% Traditional Products New Age Products • Conventional Lighting and CFL contributed the • Transformed the product portfolio to pre- majority of the revenue in FY16 dominantl
Slide 24: Distribution Strength – PAN India Reach
Distribution Strength – PAN India Reach Revenue Split FY 19-20 Rural LED 52% 57% PVC North 4% 28% Conventional Metro Cities Tier II Consumer Durables 22% 16% 32% 17% By Product By Population West East 25% 18% #1 - States such as AP, Telangana MP, Chhattisgarh, UP and Jharkhand #2 in Karnataka, Delhi
Slide 25: Strong Transition to LED…
Strong Transition to LED… FY15-16 FY 16-17 FY 18-19 FY 19-20 Sr. No Product Name Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA 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 CFL (Peak Sale Rs. 374 Cr.) 24%
Slide 26: 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 27: 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 28: Value accretive strategies and outcomes
Value accretive strategies and outcomes Growth in LED business, aligned Establishment of the R&D Centre portfolio with market opportunities and manufacture value-added new generation LEDs in-house along with LED Facade & Solar Lighting Leveraged existing distribution and Inclusion of Consumer Durabl
Slide 29: PVC Pipes – Offering Sizeable Business Opportunities
PVC Pipes – Offering Sizeable Business Opportunities Applications Housing, irrigation, infrastructure, drainage and chemical transportation, among others Operational Performance 17% revenue growth in FY20, Rs. 56.2 Cr as compared to Rs. 48.1 Cr in FY19 Capacity Expansion Completed capacity expansion
Slide 30: Lighting & Consumer Durables Segment Financial Performance
Lighting & Consumer Durables Segment Financial Performance In Rs Crs Revenue EBITDA PAT 12.3% 10.8% 10.0% 9.6% 8.3% 1,247 103 31 1,311 1,282 1,383 1,553 161 139 138 149 70 58 62 73 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed ROCE ROE Netwoth Debt 887 6
Slide 31: Steel Pipes & Strips
Steel Pipes & Strips Strong Market Leadership
Slide 32: Steel Pipes and Strips Product Highlights
Steel Pipes and Strips Product Highlights Revenue 11% 11% Galvanised (GI) Black Hollow Section 19% API Coated Pipes CR Strips Share 24% 35% • Agriculture • Construction Works • Engineering & • Oil & Gas Pipelines • Auto Components • Casing and tubing • Fabrication • Architectural • Oil Well Casing •
Slide 33: Transition Towards Higher Margin Products
Transition Towards Higher Margin Products…. FY15-16 FY 16-17 FY 18-19 FY 19-20 CAGR Sr. 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
Slide 34: 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 35: 3LPE Coating Plant – Driving Growth
3LPE Coating Plant – Driving Growth… Accreditations • Accreditations from all major PMC like EIL, Mecon etc. • Certifications of ISO 9001, 14001 & 18001 Application • Transportation of Petroleum & Natural Gas, City Gas and Water Pipelines Order Book • API coated pipes order of above Rs. 650 crores i
Slide 36: 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 37: Seeking Market Potential Opportunities
Seeking Market Potential Opportunities Supportive FDI Governments Robust Demand Rising Investment Guidelines Initiative Water ▪ ‘Har Ghar Nal se Jal’ mission aims to provide ▪ Impetus on water conservation across 256 districts safe and adequate drinking water to 150 through rain-water harvesting, re
Slide 38: 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 39: Supplying Products to Renowned Projects Abroad
Supplying Products to Renowned Projects Abroad Share in India’s total export of ERW Pipes Qatar FIFA 2022 Dubai EXPO 2021 54% 10% 24% 12% Surya Roshni Player 2 Player 3 Others Export Growth 28% in FY 19-20 Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) from India, hold 54% share,
Slide 40: Financial Performance
Financial Performance Revenue EBITDA PAT In Rs Crs 4,235 72 256 1,654 2,605 3,555 4,427 84 176 210 227 28 46 48 -7 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed ROCE ROE Debt Netwoth 1,648 11.7% 1,457 1,296 1,414 9.0% 890 726 739 775 786 6.2% 7.3% 7.7% 1
Slide 41: Operational Performance
Operational Performance Total QTY Vs Fresh QTY (in Lac MT) Fixed Asset/ Turnover (in Times) 8.12 8.44 4.96 7.39 6.15 4.28 7.84 6.89 7.49 5.74 2.41 2.97 4.1 4.98 3.96 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA/ MT (In Rs.) Increasing volume of other units (excl. Bahadurgarh unit) 3,264
Slide 42: Clients and Customers
SURYA INDIAN OIL CORP. LTD. Shell Wang hear iche city Q Reliance Industries Limited © LARSEN & TOUBRO Clients and Customers A Navratna Company AE BUILDINGS & ROADS Aceh digh ver war Voror FeFTE Delhi Metro Rail Corporation Limi INDRAPRASTHA GAS LIMITED GAIL (India) Limited ees SURYA ‘STEEL TUBES & P
Slide 43: Financial Highlights
‘STEEL TUBES & PIPES 44 2064 42
Slide 44: Financial Performance
Financial Performance In Rs Crs Revenue EBITDA PAT 8.2% 8.1% 7.1% 6.3% 6.5% 5,471 358 103 2,964 3,884 4,931 5,975 108 121 244 314 349 376 63 86 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed ROCE Debt to Equity Debt Netwoth 2,344 2,329 ROE ROCE 2,144 2,02
Slide 45: Income Statement – Q3 & 9MFY21
Income Statement – Q3 & 9MFY21 Q3 Q2 9 Months Particulars (Rs. Crores) FY20 FY21 FY20 YoY FY21 QoQ FY21 FY20 YoY Total Revenue from Operations 1,578 1,398 12.9% 1,374 14.8% 3,840 4,132 -7.1% 5,471 Cost of Material Consumed 1,184 972 956 2,720 3,100 4,069 Purchase of Stock In Trade 99 72 52 178 183 2
Slide 46: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. Crores) Sep-20 Mar-20 Mar-19 ASSETS (Rs. Crores) Sep-20 Mar-20 Mar-19 (I) EQUITY (I) NON-CURRENT ASSETS (a) Equity Share capital 54 54 54 (a) Property, plant & equipment 1,027 1,049 1,089 (b) Other equity 1,207 1,185 1,097 (b) Capital work-in-pr
Slide 47: Cash Flow Statement
Cash Flow Statement Half Year ended Half Year ended Full Year ended Particulars (Rs. Crores) 30-Sep-20 30-Sep-19 31-Mar-20 Profit before tax 60 58 140 Adjustments 82 105 210 Operating Profit Before Working Capital Changes 142 163 350 Change in operating assets and liabilities 180 11 -35 Cash generat
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 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