Surya Roshni Limited ($SURYAROSNI)

Ladies and gentlemen, good day, and welcome to the Surya Roshni Limited Q4 FY '26 Earnings Conference Call. This conference call may contain certain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Raju Bista, Managing Director. Thank you, and over to you, sir.

Thank you very much. And once again, good evening, everyone. On behalf of Surya Roshni Limited, I once again extend a very warm welcome to everyone for joining us today evening. On this call, we are joined by Mr. B. Singal, CFO and Company Secretary; Mr. Gaurav Jain, CEO of Steel Division; and Vasumitra Pandey, CEO, Lighting and Consumer Durable Mr. Naresh Singhal has also joined us, Executive Director Steel and SJA, our Investor Relations and Adviser. I hope everyone had an opportunity to go through the financial results. Moving on to the overall financial performance highlights. In the Q4 FY '26, our consolidated revenue stood at INR 2163 crores remaining broadly stable year-on-year. EBITDA for the quarter stood at INR 170 crores, with margins of 7.9%, reflecting sequential improvement driven by better realization and improved some product mix. Paid for the quarter stood at INR 98 crores. And for the full year FY '26 consolidated revenue stood at INR 7,540 crores as compared to INR 7,436 crores in FY reflecting stable growth in a challenging operating environment. EBITDA for the year stood at INR 541 crores and paid at INR 286 crores. We remain a 0 debt company with a net cash surplus of INR 340 crores as of March 31, '26. We have declared a final dividend of INR 2.5 per share, demonstrating our ongoing commitment to delivering shareholder value. This is in addition to the interim dividend of INR 2.5 per share already distributed and disperse. So total of INR 5 dividend for the full year of FY '26. Coming to the lighting consumer durable, the lighting and Consumer Durables segment delivered growth during 2 with a revenue of INR 501 crores. I'm particularly pleased to highlight that March 2026 was our ever highest monthly sale month across every business category in this segment, a milestone that reflects the -- and during strength of the Suria brand and depth of our distribution network. EBITDA for the quarter stood at INR 44 crores with margins of 8.8%, broadly stable. Despite some input cost pressure, for FY '26, as a whole, segment revenue grew by 7% year-on-year to INR 1,089 crores, while EBITDA at INR 156 crores. Professional Lighting business achieved double-digit revenue growth and INR 73 crores for the full year being 26% share in the total revenue of Lighting segment and ended Q4 FY '26 with an order book of INR 160 crores, providing healthy net term execution visibility. In Wire & Cable, the business closure at INR 38 crores in FY '26. We are now fully end-to-end manufactured in this category with our 118-meter real facts in the market and our DBT-enabled electric loyalty program fully operational our FY '27 revenue target for the wire and cable business is INR 260 crores firmly on track with 3 years guidance of INR 500 crores to INR 600 crores business. Overall, we are targeting value growth of 22% to 25% in lighting, any and consumer Tamil segment over the medium term. supported by deeper distribution penetration and humanization and continued investment in brand building. Coming to the steel pipe and street segment, the steel pipe when strip segment delivered a resilient sequential performance during despite continued geographical -- geopolitical distrupancies and volatility across markets. Revenue for the quarter stood at INR 1,662 crores, even as year-on-year performance was impacted by elevated steel prices volatility and and the complete absence of export on account of the Middle East current crisis. Volume for the quarter stood at 2.6 lakh tonnes the ever highest quarter volume for the business. So far, EBITDA for the quarter stood at INR 126 crores, EBITDA per ton to INR 5,121 per ton. For the full year FY '26 for the steel business the business reported revenue of INR 731 crores, reflecting stable year-on-year performance. Overall volume shot up at 9.04 lakh tonnes, a growth of 3% year-on-year on volume terms. The capacity utilization of 78% to 80% was maintained throughout the year, even in a challenging operating environment. And most importantly, the value-added product contributed 23% of overall volume during the year FY '26. On export and -- on Export our business expanded its footprint into newer geographies during the year, including the U.K. market for the Section 5, while strengthening our order visibility across North America and Europe. Export stood at 1.36 lakh tonnes for the FY '26 and we are targeting to close to 2.5 lakh tonnes in the coming year FY '26. The current order book of steel division is about INR 1,000 crores plus, led by export spiral and some domestic API orders, providing strong visibility for H1 FY '27, which is expected to be the highest ever half year for value-added product sales. Looking ahead to FY '26, we are targeting overall volume of 11 lakh tonnes, pres representing growth of nearly 21% to 22% over to FY '26, supported by improving utilization level, face commissioning of new capacities and strong contribution from value-added products. We remain confident that the current global supply chain, realignment present a structural long-term opportunity for efficient Indian manufacturers with integrated capabilities. The Surya Roshni is exceptionally being well, and we are well positioned to capture that upside. Now I will like to request Mr. B.B. Singal, our CFO, to share his few points.

Thank you, respected, MD, sir, and a very good afternoon to all the participants on the call. For the quarter, the revenue was INR 2,163 crores as compared to INR 2,146 crores, a growth of 1% year-on-year basis. EBITDA and PAT stood at INR 170 crores and INR 98 crores, respectively, as compared to INR 211 crores and INR 130 crores respectively. For FY '26, the revenue was INR 7,540 crores as compared to INR 7,436 crores, a growth of 1% Y-on-Y basis. EBITDA and PAT stood at INR 541 crores and INR 286 crores as compared to INR 609 crores and INR 347 crores, respectively. In lighting and consumer durables, for the quarter, the revenue stood at INR 501 crores as against INR 458 crores, a growth of 9% Y-on-Y basis. EBITDA and PBT stood at INR 44 crores and INR 33 crores as compared to INR 47 crores and INR 7 crores, respectively. For FY '26, the revenue stood at INR 189 crores against INR 5,690 crores, a growth of 7 points Y-on-Y basis. EBITDA and it stood at INR 156 crores and INR 115 crores in FY '26 as compared to INR 162 crores, and INR 125 crores, respectively, in the same period last year. In the Steel Pipes and Steel, during Q4 FY '26, the revenue of INR 1,662 crores as compared to INR 1,688 crores. Similarly, Beta per metric tonne stood at INR 5,121 compared to INR 6,708 crores in the same period last year. EBITDA and PBT stood at INR 126 crores and INR 98 crores as against INR 164 crores and INR 130 crores, respectively. For FY '26, the revenue was INR 5,731 crores as compared to INR 5,749 crores. Similarly, EBITDA per metric tonne stood at INR 4,553 compared to INR 5,392 EBITDA and PBT stood at INR 385 crores and INR 269 crores in FY '22, as against INR 44 crores and was INR 341 crores respectively in the same period last year. Improved capacity utilization, or capital optimization and cost rationalization enabled us to become a 0 debt company and having cash plus INR 337 crores in FY '26. In Q4 FY '26, our net working capital cycle was 58 days, with a return on capital employed, ROCE of 0.6% and the return on equity ROE of 15.23%. And on a yearly basis, net working capital cycle about 66 days with a return on capital employed, ROCE of 15.93% and a return on equity ROE 11.21%. With this, I conclude the presentation, and we can now open the floor for further questions and answers. Thank you.

[Operator Instructions] First question is from the line of Aditya from MSA Capital Partners.

Sir, what happened this quarter, [Foreign Language], FY'26, [Foreign Language] Q4 will be very strong for us, we'll be doing close to INR 5,500 to INR 6,000 of EBITDA per tonne in our steel business. And even when I look at volumes, volume be [Foreign Language], but then it cannot be market as well because all our competitors have actually given a very strong Q4 even as it's not even -- when we see the difference, it's not like 2%, 3%. There's a there's a humongous difference. And I've been asking this question again, again that is there something on the ground where you're seeing a difference what the company is doing that they are able to grow, and we are not able to, talk about this. I have another question I'll ask after this.

Yes, Mr. Pal, thank you very much. For [Foreign Language] Middle East crisis [Foreign Language] First quarter FY '26 because of the SAP implementation [Foreign Language] EBITDA [Foreign Language] throughout the year [Foreign Language] EBITDA [Foreign Language] profitability [Foreign Language] maintain [Foreign Language] FY '26 Surya Roshni Limited

FY '27...

FY '27 [Foreign Language] already almost [Foreign Language] profitability [Foreign Language] Middle East [Foreign Language] growth [Foreign Language] EBITDA front [Foreign Language]

[Foreign Language] because [Foreign Language] Q1 [Foreign Language] book [Foreign Language]

[Foreign Language] already 65,000-tonne [Foreign Language] 1.5 lakh tonne [Foreign Language] 1.4 lakh tonne [Foreign Language] already on 43% or total volume value-adders volume at sustain [Foreign Language]

[Foreign Language] Last question [Foreign Language] CIty gas distribution and is pipeline, [Foreign Language]

[Foreign Language] FY '26. [Foreign Language] FY '25 [Foreign Language]

Next question is from the line of [indiscernible] Gupta from Counter Cyclical Investments.

So I wanted to understand, is there any update on the demerger of the lighting and consumer durable business, and what is the expected time line? Any progress on that front?

[Foreign Language]

INR 340 crore cash surplus and [Foreign Language] stock buyback [Foreign Language]

[Foreign Language]

[Operator Instructions] Next question is from the line of Viraj Mehta from Enigma Investment Partners, LLP.

Hello. Sir, [Foreign Language] as far as domestic market is concerned.

[Foreign Language]

[Foreign Language] 9.2 [Foreign Language]

[Foreign Language]

[Foreign Language] So EBITDA [Foreign Language] and that is in spite of [Foreign Language]

[Foreign Language] oil and gas [Foreign Language] 4,700 [Foreign Language]

So sir, substantial decrease in EBITDA per tonne because this year also for the full year, we have done higher than that. In fact, Q1 -- Q4 [Foreign Language] So about via per ton? [Foreign Language]

[Foreign Language] festival or closing [Foreign Language] FY '26 [Foreign Language]

So sir, last question. A related Q1 [Foreign Language]

[Foreign Language] last year comparison 100% key growth [Foreign Language]

[Foreign Language]

Next question is from Pratik Singhania from SageOne Investments.

Sir, [Foreign Language] cumulative growth [Foreign Language] India [Foreign Language]

[Foreign Language]

[Foreign Language] FY '21 [Foreign Language] FY '26 [Foreign Language] FY '23 [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] substantial [Foreign Language] America [Foreign Language]

[Foreign Language]

[Foreign Language] North America [Foreign Language]

[Foreign Language] Government [Foreign Language]

[Foreign Language] 15% to 16% [Foreign Language]

[Foreign Language] I just need to conclude the point, [Foreign Language]

[Foreign Language]

[Operator Instructions] Next question is from the line of Kiran from Table Tree Capital.

[Foreign Language] ONGC [Foreign Language] which is a very large opportunity, and there is just tremendous value for us. [Foreign Language] traction [Foreign Language] FY '27 way, will we be able to gain substantial volumes? Is that low pricing or high pricing [Foreign Language]

[Foreign Language] welded pipe [Foreign Language]

[Foreign Language]

[Foreign Language] impact [Foreign Language] FY '28 [Foreign Language]

Sir, the second question is from a growth perspective, if I see the EBITDA -- and I'm sure the feedback from all the other previous participants are also well taken, in terms of EBITDA, [Foreign Language] we have stagnated for 4, 5 years now, right? [Foreign Language] INR 535 crores, INR 540 crore. [Foreign Language] jump to INR 700 crores [Foreign Language] that is point question number one. Question number two, [Foreign Language] getting steel from steel companies these days has become very difficult across the industry because there is too much steel demand or steel prices are very high and so on and so forth. So [Foreign Language] because we are one of the largest buyers of HR coil, it may [Foreign Language] impact [Foreign Language] Q1, Q2 in terms of steel buying. [Foreign Language] the EBITDA stagnation to INR 700 crores, what are the risks, and how confident you are. Point number two, still buying, is there any constraint in the market because multiple industrial companies are talking about this constrained that they're not getting steel as much as they require.

[Foreign Language] FY '27 [Foreign Language] Middle East [Foreign Language]

[Operator Instructions] Next question is from the line of Saket Kapoor from Kapoor & Co.

Yes. [Foreign Language]

Yes.

[Foreign Language]

[Foreign Language] revenue [Foreign Language] consider [Foreign Language] labor law [Foreign Language]

EBITDA per ton [Foreign Language]

[Foreign Language] impact [Foreign Language] pass on [Foreign Language]

Next question is from the line of Yogesh from Magnus .

[Foreign Language] mentioned [Foreign Language] capacity addition [Foreign Language] focused in the capacity addition and [Foreign Language] our focus on cash generation and being debt free. So if you can elaborate [Foreign Language] next [Foreign Language] capacity addition [Foreign Language] and over the last 2 years, [Foreign Language] capacity addition [Foreign Language] details [Foreign Language]

Last [Foreign Language] 1.6 million [Foreign Language] 1.4 million [Foreign Language] FY '28, FY '29 [Foreign Language] 1.9 million [Foreign Language]

[Foreign Language] 1.2 million tonne capacity and [Foreign Language] 1.9 million tonne [Foreign Language]

[Foreign Language] 1.2 million something [Foreign Language] 1.4 million tonnes something already [Foreign Language] enhanced [Foreign Language] FY '26 1.6 million tonne cash [Foreign Language]

1.2 million tonnes to 1.6 million tonne [Foreign Language]

[Foreign Language]

Ladies and gentlemen, we'll take that as a last question for today. I now hand the conference over to Mr. B.B. Singal for his closing comments.

Thank you. Thank for joining us on this earnings call. We appreciate your interest in Surya Roshni Limited. I sincerely thanks our, MD, sir and CEO, for sparing their valuable time and addressing queries raised by participants who attended to. For any further queries, if any, you can contact us. Thank you. Good evening.

[Foreign Language]

On behalf of [Foreign Language] Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.