Surya Roshni’s net profit up 11.71% in Q2 FY24, Real Estate News, ET RealEstate

November 2, 2023

NEW DELHI: Surya Roshni has reported a growth of 11.71 per cent in its net consolidated profit during the quarter ended September 30, 2023. Its profit after tax stood at Rs 76.01 crore in Q2 FY24 as against Rs 68.04 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 1,917.24 crore in Q2 FY24, a dip of 3.48 per cent from Rs 1,986.29 crore it recorded in the similar quarter last year.

“In lighting and consumer durables, the company has reported a flattish revenue performance in Q2FY24 due to price erosion which on a year-on-year basis has been in the range of 15-20% whereas in H1 FY24 it is around 10-15%. However, we witnessed a healthy improvement in our operating performance. Additionally, due to the shift of the festive season, Q2FY24 performance cannot be directly compared to the corresponding quarter of FY23. The company has experienced margin improvement to 9.3%, attributed to factors such as better volumes, backward integration and investments towards PLI scheme,” said Raju Bista, managing director of the company.

The board of directors have declared interim dividend @50% on paid-up value of equity shares i.e. Rs 2.50 per equity share of Rs.5 each of the company.

Debt of the company reduced by Rs 190 crore and debt to equity ratio for September 30, 2023 stands at 0.11x.

Lighting and Consumer Durables segment recorded revenue of Rs 377 crore in Q2 FY24, professional lighting business has witnessed 20% growth in Q2 and 23% in H1 FY24 driven by infrastructure as well as industrial projects and PVC Pipes witnessed 11% growth in Q2 FY24 as well as H1 FY24.

In steel pipe and strips segment during Q2 FY24, the company revenue stood at Rs 1,539 crore, while the EBITDA witnessed a growth of 3% year-on-year with an EBITDA/MT of Rs 5,104. Profit before tax (PBT) for the quarter grew by 11% to Rs 76 crore. For H1 FY24, revenue stood at Rs 3,042 crore while EBITDA and PBT grew by 25% and 55% year-on-year to Rs 187 crore and Rs 131 crore respectively.

Exports in the segment registered a growth of 20% in Q2 FY24 and 13% in H1 FY24

Reduction in steel prices, ranging from 10% to 15% across different grades of steel as compared Q2 FY23 was witnessed, which was offset by a good volume growth of about 12% during H1FY24.

“In the Steel Pipes and Strips, the company has performed well on the volume front with 12% growth despite facing downward pricing pressure. We expect to continue our volume growth at the similar rate for H2 FY24 driven by domestic market with an aim to achieve EBITDA / Ton matrix similar to previous year,” said Bista.

Bharat Bhushan Singal, CFO of the company said, “Improved capacity utilization, working capital optimization and cost rationalization has reduced the debt by Rs 190 crore. As of 30th September 2023, the debt to equity ratio stood at 0.11x. As on September 30, 2023, ROCE improved by 439 bps and stood at 20.2% as compared to 15.8% last quarter. ROE stood at 15.57% as compared to 12.49% as on 30th June 2023, a growth of 308 bps.”

  • Published On Nov 2, 2023 at 05:30 PM IST

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