Surya Roshni (SURYAROSNI) Q2 24/25 earnings summary

Executive summary

• Q2 FY 2025 revenue declined 20% year-over-year to INR 1,529 crore, with both steel pipes and lighting/consumer durables facing unique headwinds.

• Operational efficiencies and cost management helped mitigate the impact of lower steel prices and subdued demand.

• EBITDA dropped 40% year-over-year in Q2 FY25, and profit after tax for Q2 was INR 34 crore, down 55%.

• Lighting & Consumer Durables segment saw continued price erosion in LED products but benefited from better cost management and product mix.

• Interim dividend of INR 2.50 per share and a 1:1 bonus share issue were approved.

Financial highlights

• Q2 FY 2025 revenue was INR 1,529 crore, down from INR 1,916 crore year-over-year; H1 FY 2025 revenue was INR 3,422 crore, down 10%.

• Q2 EBITDA and PBDT were INR 83 crore and INR 34 crore; H1 EBITDA was INR 242 crore.

• Q2 FY25 PAT was INR 34 crore, down 55% year-over-year; H1 FY25 PAT was INR 127 crore, down 6%.

• Lighting and consumer durables Q2 revenue grew 5% year-on-year to INR 395 crore; H1 revenue up 4% to INR 781 crore.

• Steel segment Q2 revenue was INR 1,135 crore, down from INR 1,539 crore; EBITDA per ton fell to INR 2,901 from INR 5,104.

Outlook and guidance

• FY 2025 revenue growth targeted at 12%-15% for lighting and consumer durables, with stable EBITDA margins.

• Steel segment volume growth target revised to 7%-8% year-on-year for FY 2025.

• Anticipates EBITDA per ton in steel to stabilize at INR 5,000-5,200 in coming quarters.

• Order book of about INR 550 crore in hand for Oil & Gas, Water Sector, and Exports.

• Optimism for Q3 and Q4 driven by capacity expansion, geographic diversification, and operational efficiency.