Q4FY22 Quarterly Result Announced for Surya Roshni Ltd.
Plastic Products company Surya Roshni announced Q4FY22 results: Q4FY22: Robust 34% growth in revenue, Q4FY22 has witnessed growth in all business divisions of B2C and B2B 41% growth in PAT due to reduced finance costs and a healthy product mix of value-added products ROCE improved by 580 bps YoY, from 17.8% to 23.6% ROE improved by 450 bps YoY, from 17.5% to 22% FY22: Revenue of Rs 7,731 crore in FY22 as compared to Rs 5,561 crore in FY21, healthy growth of 39% Cash Profit grew by 23% to Rs 385 crore in FY22 as compared to Rs 314 crore in FY21 PAT grew by 29% to Rs 205 crore in FY22 as compared to Rs 158 crore in FY21. The profitability would have been even better if not affected by the hyperinflation in input costs across businesses Proactively took multiple price hikes to partly mitigate the higher input costs Cash conversion cycles remained positive, driven by prudent financial acumen. The working capital days has reduced to 58 days in FY22 as compared to 73 days in FY21 Commenting on the results, Company’s Managing Director, Mr. Raju Bista, said “We are delighted to report the highest ever revenue for the company, achieved revenue milestone of $1 billion. I would like to attribute this phenomenal achievement to our team’s relentless efforts and emphasis on innovation, product and market development, premiumization and strong brand equity. For FY22, the top-line grew by 39%, underpinned by a healthy product mix driven by growing share of value-added products across Steel Pipes, Lighting and Consumer Durables. This resilient performance reflects operational excellence, with a better mix and healthy profitability despite multiple headwinds. The company has now repaid all the long-term debt and has become a long term-debt free company. The company has only short-term working capital debt, which the company is planning to optimize further in the coming quarters. The company's Steel Pipes & Strips and Lighting & Consumer Durables businesses are now independent and self-sustaining in terms of profitability, debt servicing and investment for growth, resulting into constant growth in revenue and profitability, coupled with upgrades in credit ratings. In the Steel Pipes and Strips, the company reported a revenue growth of 39% in Q4 and 48% in FY22 and a healthy growth in profit before tax (PBT) of 84% in Q4 and 63% in FY22. The improvement in realizations were driven by higher steel prices and consistent increased share of margin accretive API pipes and Exports. The company’s focus on premium products and geographical diversification of plants has worked well, translating into improvement in profit margins. The recently inaugurated large-dia DFT manufacturing facility is expected to enhance the margin profile further. Going forward, the company will continue to focus on growing the revenue share of value-added products and exports. In Lighting and Consumer Durables, the company has witnessed revenue growth in LED Lighting with 23% in Q4 and 18% in FY22. The new age product lines are gaining strong momentum with special focus on LED battens and LED down-lighters which registered volume growth of 50% and 100% respectively. We continue to launch premium products as per market needs. The company is witnessing a healthy momentum in the Fans segment on account of a severe heatwave across the country. During the year, the company undertook multiple price hikes to partly mitigate the impact of higher commodity prices and other input costs. We remain focused to enhance profit margins by improving product mix through growing share of premium products and smart lighting Initiatives such as Salesforce Automation (SFA) have been rolled out across all the regions and have started contributing to productivity enhancement, focused approach to bring down replacement cost has worked well. The company has intensified advertising and branding activities in order to transform into modern, innovative and stylish brand. The company is witnessing good enquiry order inflow and will continue to focus on participating in multiple Smart Lighting projects in Professional Lighting. The company also strengthened further the semi-urban and urban distribution network, which is now one of the largest in the industry. The company is witnessing multiple triggers such as a growing mix of value-added products across segments, strengthened balance sheet, strong value propositions and cost rationalization. This, coupled with improved economic activity is expected to drive the growth in the upcoming quarters. The company has given responsibility of Chief Financial Officer (CFO) to Mr. Bharat Bhushan Singal, who is also playing a role of Sr. V.P. and Company Secretary since last 26 years. He is a well-qualified professional, a Chartered Accountant, Company Secretary & Cost Accountant and has played a key role in various strategic initiatives over the years and is well-versed with company’s system and processes. I congratulate Mr. Singal for his new role and look forward to work closely with him to achieve the goals, going forward." Result PDF19-05-2022