Surya Roshni Limited , a leading player in the Steel Pipe & Strips and Lighting & Consumer Durables sectors, has announced its unaudited financial results for the second quarter and half year ended September 30, 2023, showcasing a mixed performance with improved profitability despite a slight dip in revenue.

Q2 FY24 Financial Highlights

• Revenue: The company reported standalone revenue from operations of Rs. 1,915.50 crore for Q2 FY24, compared to Rs. 1,984.16 crore in the same quarter last year, marking a 3.46% year-on-year decrease.
• Net Profit: Net profit for the quarter stood at Rs. 75.88 crore, up 11.56% from Rs. 68.02 crore in Q2 FY23, indicating improved profitability despite lower revenue.
• Earnings Per Share (EPS): Basic EPS for the quarter improved to Rs. 7.05 from Rs. 6.37 in the corresponding quarter of the previous year, reflecting a 10.68% increase.

H1 FY24 Performance

For the half year ended September 30, 2023:

• Revenue: The company recorded revenue of Rs. 3,790.63 crore, slightly down from Rs. 3,823.63 crore in H1 FY23.
• Net Profit: Net profit saw a significant jump to Rs. 134.95 crore, up 49.78% from Rs. 90.10 crore in the same period last year.

Interim Dividend Declaration

The Board of Directors has declared an interim dividend of 50% (Rs. 2.50 per equity share of Rs. 5 face value). The dividend is payable on November 21, 2023, to shareholders on record as of November 10, 2023.

Segment Performance

Surya Roshni operates in two key segments:

1. Steel Pipe & Strips
2. Lighting & Consumer Durables

Specific segment-wise performance details were not provided in the results.

Financial Analysis

Comparing the quarterly results with the income statement data:

The differences in the figures could be due to variations in reporting periods or additional revenue streams not reflected in the income statement data.

Conclusion

Surya Roshni's Q2 FY24 results demonstrate the company's ability to enhance profitability even in the face of slightly reduced revenue. The substantial increase in net profit, both for the quarter and half-year, coupled with the declaration of an interim dividend, underscores the company's financial health and commitment to shareholder returns. As Surya Roshni continues to navigate market challenges, its diverse business segments and focus on operational efficiency appear to be key drivers of its financial performance.

Surya Roshni Limited , a leading manufacturer of steel pipes and lighting products, has announced its financial results for the first quarter, revealing a mixed performance amid challenging market conditions.

Financial Highlights

For Q1, Surya Roshni reported:

• Consolidated revenue of ₹1,604.52 crore, down 15.2% year-over-year (YoY)
• EBITDA of ₹82.57 crore, a 48% decline YoY
• EBITDA margin of 5.14%, compared to 8.37% in the same quarter last year
• Profit After Tax (PAT) of ₹34.00 crore, a 64% decrease YoY

Segment Performance

Steel Pipes and Strips Segment

The segment faced headwinds due to slower execution of government projects, early monsoon, and lower steel prices. However, export volumes grew by approximately 23% YoY, driven by strong shipments to the Middle East.

Lighting and Consumer Durables Segment

This segment witnessed steady revenue growth despite challenges, with strong volume growth in LED Lamps (+30%), Battens (+25%), and Appliances (+23%).

Key Developments

1. New Appointments: The company announced the appointment of Mr. Kumar Gaurav Jain as CEO of the Steel Division and Mr. Vasu Mitra Pandey as CEO of the Lighting Division.

2. Brand Ambassador: Surya Roshni onboarded cricketer Suryakumar Yadav as the brand ambassador for its Steel Tubes & Pipes business to strengthen brand connect.

3. Product Launch: The company is set to launch operations of domestic wires, targeting sales of ₹150.00 crore in the first year.

4. Secretarial Auditor: M/s Anjali Yadav & Associates has been appointed as the Secretarial Auditor for a term of five years, subject to shareholder approval.

Management Commentary

Mr. Raju Bista, Managing Director, stated, "We delivered consolidated revenue of ₹1,604.52 crore with EBITDA at ₹82.57 crore, navigating a period of mixed macroeconomic conditions. While these factors exerted pressure on overall top-line growth and margins, the Company's diversified business mix, strong export performance, and continued operational discipline served as important stabilizers."

Mr. Vinay Surya, Managing Director, added, "With the festive season approaching, we have planned an extensive programme of market activation, including dealer and retailer engagement, product promotions, and targeted media campaigns across print, digital, and direct communication channels."

Future Outlook

Despite the challenging quarter, Surya Roshni maintains a positive outlook. The company expects steel prices to remain broadly stable or witness a marginal uptick in the coming quarters. With a strong order book of around ₹750.00 crore, continued export growth, and planned capacity enhancements, the Steel Pipes business is well-positioned for improved performance in the second half of the fiscal year.

For the Lighting and Consumer Durables segment, the company reiterates its double-digit volume and value growth guidance, supported by the upcoming festive season, product premiumization, and new category launches.

Surya Roshni's strategic initiatives, including new product launches, portfolio expansion, and commissioning of advanced manufacturing capacities, are expected to support growth and strengthen operating leverage over the remainder of the year.