Surya Roshni Limited — Important, 14-11-2024: General Updates

**Financial Highlights:** Surya Roshni's Q2 FY25 consolidated revenue decreased by 20% YoY to ₹1,529 crore, while H1 FY25 revenue fell by 10% to ₹3,422 crore. EBITDA dropped by 40% to ₹83 crore in Q2, resulting in a 5.4% margin, and in H1, it stood at ₹242 crore, with a margin of 7%. Profit Before Tax (PBT) declined 56% in Q2 to ₹46 crore, and for H1, it was down 8% at ₹169 crore. Profit After Tax (PAT) also fell, by 55% to ₹34 crore in Q2 and 6% to ₹127 crore in H1.

**Strategic Initiatives and Growth Drivers:** The company faces challenges from declining prices in the Steel Pipes business and LED products within the Lighting segment. However, operational efficiencies and improved product mix helped mitigate losses. The Lighting segment showed resilience with strong volume growth in consumer lighting, despite price erosion.

**Business Developments:** Surya is investing in technology upgrades, including a new LED component manufacturing facility under the PLI scheme, aiming to reduce dependency on imports.

**Market Position and Competitive Advantage:** Surya is a leading player in the Steel Pipes and Lighting sectors with a robust distribution network that extends to rural markets and a strong focus on value-added products.

**Investor Implications:** While current results reflect pressure from market dynamics, the strategic investments and a strong brand presence create a framework for potential recovery and growth. Investors should monitor operational improvements and market responsiveness as critical factors for future performance.