Surya Roshni sales surge while profit grows slowly
Indian steel-pipe and lighting manufacturer Surya Roshni reported much faster revenue growth than profit growth for July–September. Quarterly revenue rose about 33%, while net profit increased about 3%. The company reported record steel-pipe sales volume. Its operating earnings margin was below the year-earlier level, despite remaining stable against the preceding quarter.
Economics & Markets··Morning
Revenue expands faster than net profit
Surya Roshni, an Indian manufacturer of steel pipes and lighting products, increased July–September revenue to about 24.48 billion rupees, roughly 33% above the year-earlier quarter. Net profit rose about 3% to approximately 770 million rupees. Earnings before interest, tax, depreciation and amortisation, or EBITDA, reached about 1.43 billion rupees. The EBITDA margin was 5.8%, unchanged from the previous quarter but below the 7.6% recorded a year earlier.[1], [2]
Steel-pipe volumes reach a quarterly record
The steel-pipe and strip business recorded sales of 267,000 tonnes, which the company described as its highest quarterly volume. Revenue in that division was about 19.41 billion rupees, up approximately 38%. Exports reached 64,408 tonnes, an annual increase of 64%. Managing director Raju Bista attributed part of the export growth to strong US demand. Lighting and consumer-durables revenue rose about 17% to 5.07 billion rupees.[1]
Management reports cash surplus and outstanding orders
Chief financial officer Bharat Bhushan Singal said Surya Roshni had no debt and held a cash surplus of 750 million rupees at September-end. Outstanding orders across its two main businesses totalled approximately 14 billion rupees. The company attributed pressure on margins partly to higher input costs, producer-responsibility payments and increased spending on its brands. It also said the comparative quarter had benefited from customers buying steel pipes ahead of regulatory changes.[1], [2]
