New Delhi, November 7: Surya Roshni Limited, a leading steel pipes, lighting and consumer durables manufacturer, has announced its unaudited results for the quarter ended September 30, with its Profit After Tax (PAT) growing just 3% to ₹77 crore from ₹74 crore during the same period last year.
This has come despite the company witnessing a strong 33% year on year (YoY) growth to ₹2,448 crore on the back of sustained demand from both retail and commercial segments.
Growing input costs of copper, steel and aluminium, along with staggered price rise across the industry have impacted the company’s profitability, with EBITDA margins declining 180 basis points (bps) to 5.8% from 7.6% a year ago. EBITDA value has also stagnated at ₹143 crore, up from ₹141 crore reported during the same period last year.
The company’s steel pipes and strips business witnessed its highest ever sales volume at 2.67 lakh tonnes, up by 23% on a YoY basis, while its lighting and consumer durables revenue has also grown 17% YoY to ₹507 crore, mostly driven by volume growth. Unfortunately, the company hasn’t been able to convert this into growth, as elevated prices force it to eat into its margins or raise prices.
“Input costs rose across copper, aluminium, steel and petroleum-based materials, and staggered price increases across the industry made it harder to bring distributors and retailers on board and raised our working capital needs. End-consumer demand, however, has not slowed; the challenge has been material availability and cost,” Mr Raju Bista, Surya Roshni Limited’s Managing Director, said in a press release.
“Q3 and Q4 are traditionally the industry’s strongest quarters. With Diwali in Q3, factories running at full capacity, encouraging pre-festive demand, a strong order book and expanding distribution, we expect a better second half,” he added.
