Surya Roshni Q2 Results: Net profit rises to Rs 76 crore

Surya Roshni Q2 Results: Lighting products and pipe maker Surya Roshni Ltd on Thursday reported a 11.71 per cent increase in consolidated net profit to Rs 76.01 crore for the September quarter. It had posted a consolidated net profit of Rs 68.04 crore in the year-ago period, Surya Roshni said in a regulatory filing.

However, its revenue from operations was down 3 per cent to Rs 1,915.73 crore during the quarter, in comparison to Rs 1,948.21 crore a year ago.

"In spite of the marginal decline in revenue on account of price erosion... The company reported an improved profitability on year-on-year basis, on the back of favourable volume growth in steel pipes and value-added products in lighting and consumer durables segment," said Surya Roshni in its earning statement.

The company's total expenses were at Rs 1,813.73 crore, down 4.3 per cent in the September quarter.

Surya Roshni's total income in the September quarter was Rs 1,917.24 crore, down 3.47 per cent.

Its revenue from the lighting and consumer durables segment was Rs 377.27 crore, down 1.47 per cent.

This was due to a shift in the festive season from the second to the third quarter in the ongoing fiscal year.

However, the segment had a "strong volume growth coupled with cost savings on back of PLI led backward integration" which resulted in strong operating profitability, it said.

Surya Roshni's revenue from steel pipe and strips was Rs 1,538.70 crore, down 3.9 per cent.

This was on account of a "reduction in steel prices, ranging from 10-15 per cent across different grades of steel as compared Q2FY23," the company said.

However, the segment's profit after tax increased Rs 76 crore and exports registered a growth of 20 per cent in the second quarter of the current fiscal.

"The overall financial performance has been satisfactory, primarily driven by a good volume growth. The aforementioned operational performance metric serves as a key indicator of the company's resilience in navigating challenging economic conditions," Managing Director Raju Bista said.

The company has experienced margin improvement to 9.3 per cent, attributed to factors such as better volumes, backward integration and investments towards the PLI scheme, he said.

"Our investment towards the PLI scheme has not only bolstered our competitive position, but also facilitated a successful integration of our operations, resulting in enhanced operating performance. This is in line with our previously stated objective of working towards improving operational performance," Bista added.

Meanwhile, in a separate filing, Surya Roshni said its board in a meeting on Thursday declared an interim dividend of 50 per cent, or Rs 2.50 per equity share of Rs 5.

Shares of Surya Roshni Ltd on Thursday settled at Rs 546.90 on the BSE, down 4.24 per cent from the previous close.