Surya Roshni Limited — PPTs, 14-05-2025: Investor Presentation

1. Financial Highlights:

Consolidated revenue rose 3% YoY to ₹2,146 Cr in Q4, with EBITDA up 22% YoY at ₹211 Cr and margins expanding 155 bps to 9.85%. Steel Pipes & Strips margins improved over 200 bps to 9.74%, supported by higher realizations and 14% EBITDA/ton growth. Lighting & Consumer Durables revenue grew 10% YoY, maintaining steady double-digit margins (~10.3%). FY25 revenue declined 5% to ₹7,436 Cr due to softer HR coil prices, but EBITDA increased 4% to ₹609 Cr with a 68 bps margin rise. PAT increased 5% to ₹347 Cr. Net worth strengthened to ₹2,465 Cr with a net cash surplus of ₹342 Cr.

2. Strategic Initiatives & Growth Drivers:

Focus on high-value Steel Pipes diversification with API, Spiral & Galvanized pipes comprising 43% of sales. Commissioning of a ₹50 Cr spiral pipe plant for water projects enhances capacity. Lighting expanded product portfolio with LEDs, fans, home appliances, and new house wiring cables targeting ₹100 Cr revenue in year one. PLI-backed backward integration for LED components aims to reduce imports and boost OEM business. Major capex includes advanced technology upgrades like 3LPE coating plants supporting margin expansion.

3. Business Developments:

Steel segment set a record with 8.77 lakh tons volume in FY25, driven by 9% Q4 growth. Order book stands at ₹650 Cr in Oil & Gas, Water, and Exports. Lighting saw professional street lighting volumes jump 2.5x with a ₹150 Cr order pipeline for FY26. Launched affordable decorative LEDs and consumer durables catering to aspirational demand, including BLDC fans, air coolers, and water heaters. Enhanced distribution reach and brand investments continue across segments.

4. Market Position & Competitive Advantage:

India’s leading ERW GI Pipe manufacturer and second-largest consumer lighting brand with strong rural & semi-urban distribution (~3 lakh retail outlets). Cutting-edge technology and backward integration, such as world-class 3LPE coating, enable premium products and better margins. Wide product portfolio and exports to 50+ countries provide scale benefits and cushion against market volatility.

5. Investor Implications:

Value-added product focus, cost controls, and diversified demand in infrastructure, oil & gas, and lighting indicate positive growth potential. Margin improvement and cash generation highlight operational strength. Entry into house wiring cables and ongoing capex projects underscore diversification and growth ambitions. Investors should monitor execution risk and market share gains amid volatile steel cycles and competitive retail markets.