Surya Roshni Limited , a prominent Indian company, has recently faced regulatory action for delayed compliance with board composition requirements. The company has paid fines of Rs 2.80 lakh each to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for non-compliance with Regulation 17(1) of SEBI (Securities and Exchange Board of India) Listing Regulations.

Fine Details and Compliance Issue

Company's Response and Actions

Surya Roshni has taken steps to address the compliance issue:

1. Director Appointment: The company appointed Mr. Ravi Kant Gupta as an Additional Independent Director on July 17.

2. Fine Payment: The company has paid the fines to both exchanges for the 56-day delay in appointing an independent director.

3. Waiver Application: Surya Roshni has applied for a waiver of the imposed fine, citing genuine challenges in identifying suitable candidates who meet both regulatory requirements and possess the necessary stature, independence, and integrity.

Impact and Company's Stance

The company maintains that there is no material impact on its financials, operations, or other activities due to this regulatory action. Surya Roshni emphasizes that the delay in appointment was unintentional, attributing it to the challenges faced in identifying an appropriate candidate given the company's requirements.

This incident highlights the importance of timely compliance with regulatory requirements in corporate governance, particularly concerning board composition. It also underscores the challenges companies may face in finding suitable independent directors who can contribute meaningfully to the organization's governance structure.

Surya Roshni Limited , a leading manufacturer of steel pipes and lighting products, has reported a robust performance for the second quarter, demonstrating significant growth across key financial metrics.

Financial Highlights

• Consolidated revenue grew by 21% year-on-year to INR 1,845.00 crores
• Profit After Tax (PAT) more than doubled, surging by 117% to INR 74.00 crores
• EBITDA rose by 69% to INR 141.00 crores, with margin improving to 7.6%
• The company maintains a zero-debt status with a net cash surplus of INR 246.00 crores

Segment-wise Performance

Steel Pipe and Strip Segment

• Revenue increased by 24% year-on-year to INR 1,411.00 crores
• EBITDA more than doubled to INR 102.00 crores
• EBITDA per ton improved by 73% year-on-year to INR 5,013.00
• Exports business grew by 45%, contributing to the highest ever Q2 volumes

Lighting and Consumer Durables Segment

• Revenue up by 10% year-on-year to INR 434.00 crores
• EBITDA margin expanded to 9% from 7.7% in Q1
• Professional Lighting business grew by 25%
• Strong performance in LED lamps, batten, and street light segments

Strategic Developments

• The company has declared an interim dividend of INR 2.50 per share
• Full-year steel volume guidance revised to 10 lakh tons
• Robust order book of around INR 750.00 crores in the Steel segment
• Strong order book of over INR 150.00 crores for the Lighting segment

Management Commentary

Raju Bista, Managing Director of Surya Roshni Limited, commented on the results: "Our performance this quarter reflects the strength of our diversified business model and our ability to capitalize on market opportunities. The significant growth in our Steel Pipe segment, particularly in exports, and the steady performance of our Lighting and Consumer Durables segment underscore our strategic focus and operational efficiency."

Outlook

The company maintains a positive outlook for the second half of the fiscal year, traditionally a stronger period for both its Steel and Lighting segments. With ongoing capacity expansions and a focus on value-added products, Surya Roshni is well-positioned to capitalize on the growing demand in both domestic and international markets.

The management has provided revised guidance for the full year:

• Lighting and Consumer Durables: Revenue target of INR 1,900.00 crores with EBITDA of INR 180.00-185.00 crores
• Steel Pipe and Strip: Expected EBITDA of INR 430.00-435.00 crores
• Overall consolidated EBITDA guidance of INR 620.00-625.00 crores

As Surya Roshni continues to focus on innovation, product diversification, and operational efficiency, it aims to maintain its growth trajectory and further strengthen its market position in both the Steel and Lighting segments.