SURYAROSNINSE27 January 2021

Surya Roshni Limited has informed the Exchange about Investor Presentation

Surya Roshni Limited

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An Isnso 9001 An IS,ISO 14001 & IS 18001 Company

SURYA ROSHNI LIMITED

CIN - L31501 HR1973PLC007543 2nd Floor. Pad ma Tower-1. Raiendra Place New Delhi-110 008 Ph +91 -11-25810093-96, 47108000 Fax +91-11-25789560 E-mail cs@surya.1n Website : www surva co In

SRL/se/20-21/66 January 27, 2021

The Secretary The Stock Exchange, Mumbai New Trading Ring, 14th Floor, Rotunda Building, PJ.Towers, Dalal Street, Fort, MUMBAI - 400 001 Scrip Code: 500336

The Manager (Listing Department) The National stock Exchange of India Ltd Exchange Plaza, 5th floor Plot No. C/ 1, G Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051 NSE Symbol: SURY AROSNI

INVESTOR PRESENTATION

Dear Sir,

In terms of Regulation 30 read with Para A of Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed copy of the "Investor Presentation - January, 2021 ". Copy of the same is also being uploaded on the website of the Company at, http://www.surya.co.in

Kindly take the same in your records.

Thanking you,

Yours faithfully For Surya Roshni

. ~~ :

BBSINGAL Sr. V.P & COMP A

&Cl.....____,

Enclosed: as above.

Surya Roshni Limited

.......Seeking Opportunities by Value-Creation

Investor Presentation – January 2021

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Surya Roshni Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.

Index

The Company's Promoter & Executive Chairman, Shri Jai Prakash Agarwal, was conferred with Padma Shri Award for his distinguished services in the field of Trade and Industry by the Government of India

Quarterly Financial Updates

Company Highlights .

Lighting & Consumer Durables

Steel Pipes & Strips

Key Takeaways

Quarterly Financial Updates

Q3 Results Highlights of the Company

Revenue: +13% YoY

Cash Profit: +49% YoY

PAT: +80% YoY

In Rs Crs

FY20

FY21

1,578

1,374

887

2 1 4 1

3 2 3 1

8 9 3 1

101

EBITDA grew by 20% in Q3 FY21 to Rs 117 crore from Rs 98 crore in Q3 FY20

Faster volume growth for both the segments post COVID 19 Lockdown due to dominance in rural and semi urban markets

Reduction in finance cost by 45%

Extensive advertising and coverage through Print and Electronic media

Sustainable improvement in margins due to change in industry dynamics

Working Capital Involvement : Inventory - 48 days, Debtors - 42 days and Net Working Capital - 65 days

Lighting & Consumer Durables Segment Q3 FY21 Results Highlights

Revenue: +17% YoY

EBITDA: +63% YoY

FY20 FY21

329

369

8.7% 6.7%

Margin 8.1% 10.5%

7.9% 10.9%

PBT: +195% YoY

In Rs Crs

186

0 2 3

7 0 3

7 1 3

Cash Profit grew by 115% in Q3 FY21 to Rs 38 crore from Rs 18 crore in Q3 FY20

20% growth registered in LED Lightings and 26% in Consumer Durables Fittings due to structural shift

LED Lamp’s replacement cost reduced by 25%

The prestigious monumental lighting project executed at Shri Kedarnath Temple as a responsible corporate of the country

New products launched across Lightings and Consumer Durables businesses

Lower sales to EESL (Rs 15 crore in 9M FY21 against Rs 92 crore in 9M FY20) successfully converted to direct consumer sales

Working Capital Involvement : Inventory - 57 days, Debtors - 67 days and Net Working Capital - 69 days

Steel Pipes and Strips Segment Q3 FY21 Results Highlights

Revenue: +12% YoY

FY20 FY21

1,212

1,048

702

3 9 0 1

7 1 0 1

4 8 0 1

EBITDA: +6% YoY

EBITDA / MT 2,856 2,463 3,240 3,311

3,433 3,726

PBT: +37% YoY

In Rs Crs In Rs Crs

Cash Profit grew by 26% in Q3 FY21 to Rs 63 crore from Rs 50 crore in Q3 FY20

Capacity utilization reached nearing to pre COVID levels

Expansion for 3 LPE Coated pipe unit on full swing as per schedule and shall be commissioned by March 2021 Presently Orders of Rs 664 crore are in hand from Oil Gas Sector for 3 LPE Coated Pipes

Working Capital Involvement : Inventory - 46 days, Debtors -34 days and Net Working Capital - 64 days

Improvement in RoCE

Lighting & Consumer Durables Segment

Steel Pipes and Strips Segment

Company

24.6%

11.7%

12.2%

14.5%

17.1%

13.8%

10.9%

17.8%

9.2%

Mar-20

Sep-20

Dec-20

Mar-20

Sep-20

Dec-20

Mar-20

Sep-20

Dec-20

Note: RoCE is annualized

Reduction in Overall Net Working Capital

Inventory Days

Debtors Days

Net Working Days

Mar-20

Sep-20

Dec-20

Mar-20

Sep-20

Dec-20

Mar-20

Sep-20

Dec-20

Note: NWC is annualized

9M Results Highlights

Consolidated Highlights

Revenue of Rs. 3,840 crore in 9M FY21 as compared to Rs. 4,132 crore in 9M FY20

EBITDA stands to Rs. 263 crore in 9M FY21 as compared to Rs. 267 crore in 9M FY20

Cash Profit grew by 18% to Rs. 208 crore in 9M FY21 as compared to Rs. 177 crore in 9M FY20

PAT grew by 37% to Rs. 100 crore in 9M FY21 as compared to Rs. 73 crore in 9M FY20

Lighting and Consumer Durables Highlights

Revenue of Rs. 884 crore in 9M FY21 as compared to Rs. 945 crore in 9M FY20

EBITDA grew by 14% to Rs. 88 crore in 9M FY21 as compared to Rs. 77 crore in 9M FY20

Cash Profit grew by 44% to Rs. 76 crore in 9M FY21 as compared to Rs. 53 crore in 9M FY20

PBT grew by 77% to Rs. 55 crore in 9M FY21 as compared to Rs. 32 crore in 9M FY20

Steel Pipes and Strips Highlights

Revenue of Rs. 2,962 crore in 9M FY21 as compared to Rs. 3,194 crore in 9M FY20

EBITDA stands to Rs. 175 crore in 9M FY21 as compared to Rs. 190 crore in 9M FY20

Cash Profit grew by 6% to Rs. 132 crore in 9M FY21 as compared to Rs. 124 crore in 9M FY20

PBT grew by 14% to Rs. 79 crore in 9M FY21 as compared to Rs. 69 crore in 9M FY20

About Surya Roshni

A Strong Foundation

1973 45+ Years of Brand Equity Established Steel Pipe manufacturing unit at Bahadurgarh

GI Pipes manufacturer

Rs 5,471 crores

Sales as on March 31, 2020

ERW Pipes exporter (50+ countries)

Lighting company in India

21,000+/250+

Countrywide dealers and distributors for steel tubes and strips

2,50,000+/2,500

Countrywide retailers and dealers for Lighting

Credit Rating

Long Term “A+” CP “A1+”

Professional Management Team

Mr. Jai Prakash Agarwal

Promoter and Executive Chairman Mr. Agarwal is the driving force behind creating Surya as one of the most reputed, trusted and successful companies. He has been honored with highly prestigious Padma Shri Award by Govt. of India.

Mr. Raju Bista

Managing Director Mr. Bista is a young and dynamic leader. His discipline, dedication, visionary power and relentless efforts have helped the company in achieving new heights. He is immediate past President of ELCOMA.

Mr. R.N. Maloo

Executive Director & Group CFO Mr. Maloo is a qualified CA with over 3 decades of experience in corporate affairs, finance, commercial and taxation. He has held CFO positions in multiple renowned companies and was also in CA in Practice as Partner in renowned CA Firm M/s Kalani & Co, Jaipur

Mr. Tarun Baldua

CEO Steel Mr. Baldua is a qualified CA with over 3 decades of experience in Commercial , operational and administrative roles across several Businesses. He is also the Vice President of Indian Pipe Manufacturers Association (IPMA).

Mr. Nirupam Sahay ED & CEO Lighting & Consumer Durables Mr. Sahay is MBA from NMIMS Mumbai, career spanning over 2 decades and has served as Global Business leader, Consumer Lamps in Phillips Lighting, and before that as President and CEO Philips Lighting (Indian Subcontinent). He was also ex-president of ELCOMA.

Strong Core Values

Customer Satisfaction

Customers – The Guiding Stars for Future Endeavors and Improvement

Integrity

Moral Principles, undivided spirit. reflects in personal lives, financial transactions and business deals

Profitable growth

CORE VALUES

Surya Parivar

Principle-centric, close-knit family, trust, mutual respect and team spirit

Social Responsibility Eco-Friendly products, optimized resources to conserve the environment

Professionalism

Promotional Activities

Performance Evaluation

Payback on Capex

Product Development

Productivity and Perfection

Transformation Journey of last 5 Years

Professionalism

Strengthening of Brand

• Professional management at the top • Entire operations

run by professionals across the board • Experienced and Diversified Board

Experienced

• Increased the budget for marketing

activities to penetrate newer markets

• Spent Rs 15.6 Crores on advertising in FY20

Product Portfolio

Deeper Penetration

• The share of LED products with a higher

EBITDA margin in the revenue has increased to 57% in FY20 from 19% in FY16

• The share of API pipes with higher EBITDA / MT in revenue has increased to 11% from NIL in FY16

• Created Strong Semi-Urban, Rural

distribution network, with coverage of 2,50,000 Retail Outlets

• Distributors across the country increased

from 2000 in FY16 to 2,500 in FY20

Sound Financials

• Total Revenue and PAT grew by 1.8x and

1.2x to over last 5 years

• Debt / Equity ratio halved over last 5 years • Credit Rating improved to Long Term “A+”,

Short Term “A1 and CP “A1+”

Driven by Focus on Improving Value Creation C

Continuous Debt Reduction

Driving Cost Efficiencies

Improving Asset Utilization

Efficient Working Capital Management

Improvement in ROE and EBITDA / MT

Rs 284 Crores

Reduction in debt during 9M FY21

Increasing Fixed Asset turnover ratio

ESOP’s for Employees

Rs 3,726

EBIDTA / MT on Steel Pipes During Q3FY21

Export to over 50 Countries

0.62

Debt-Equity Ratio as on December 31, 2020

Competitive Finance Cost

Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Business Overview

Lighting & Consumer Durables Segment

Steel Pipes & Strips Segment

Forayed into Lighting operations in 1984 and into Consumer Durables in 2014-15

Established as a Steel Pipe Manufacturer in 1973

2 manufacturing plants at Gwalior (Madhya Pradesh) and Kashipur (Uttarakhand) along with a Technology and Innovation centre in Noida

Portfolio of products includes LED Lamps, LED Street lights, Tube lights, Conventional Lamps in the Lighting Segment and products like Fans, Heaters, Air Cooler’s and other Home Appliances in the Consumer Durables segment

Transformed from Conventional Consumer Durables product portfolio

lighting to LED lighting and

#1 GI Pipes manufacturer and ERW Pipes exporter

located 4 manufacturing plants

Strategically Bahadurgarh (Haryana), Gwalior (Gujarat) and Hindupur (Andhra Pradesh)

situated at (Madhya Pradesh), Anjar

Portfolio of products includes ERW Pipes, Spiral Pipes and 3 LPE Coated (API) Pipes which have applications in Agriculture, Housing, Oil and Gas, Infrastructure among others

Favorable government initiatives like Smart city, Make In India and focus on LED lighting is a positive growth factor

Capacity utilization for all the products is more than 75% with high value products like 3 LPE pipes running at full capacity and we have invested in increasing its capacity

Strategically Located Facilities

Bahadurgarh, Haryana

R&D Centre STIC, Noida

Kashipur, Uttarakhand

Gwalior, Madhya Pradesh

Anjar, Gujarat

Hindupur, Andhra Pradesh

Lighting Plant

Steel Pipe Facilities

Branches

Units

Kashipur, Uttarakhand

Gwalior, Madhya Pradesh

Surya Technology & Innovation Centre (STIC) at Noida

Steel Plants

Bahadurgah, Haryana

Gwalior, Madhya Pradesh

Anjar, Gujarat

Lighting Plants

Established

Products

Capacity

1984

1992

2012

LED lights & filaments and MCPCBs & Drivers

LED lights, GLS, Caps, MCPCBs, Drivers, etc

In house development of LED Lighting products.

• 90 Million LED Bulbs

• 3.6 Million Street Lights

• 10 Million Tube Light

• 200 Million GLS

Steel Pipes and Strips Plant

Established

Products

Capacity

ERW (GI, Black and Section), CR Strips, API

• ERW – 925,000 MT (incl. GI –

3,30,000MT)

1973

2010

ERW (GI, Black and Section)

ERW (GI, Black and Section), Spiral, API Coated

• Spiral Pipes - 200,000 MT

including Online 60,000 MT and Offline 1,40,0000 MT

• CR Strips – 115,000 MT • 3 LPE Coated (API)

• Existing Capacity – • External – 18,50,000 sq mtr • Internal – 11,00,000 sq mtr • Under Expansion • External – 9,00,000 sq mtr

Hindupur (Andhra Pradesh)

2017

ERW Pipes (GI, Black and Section)

Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Lighting & Consumer Durables Driving Strong Performance

Enhancing Brand Visibility

Scan to view the AD

Monumental Lighting at Shri Kedarnath Temple

Evolving Product Portfolio

14%

12%

2016

43%

24%

LED-Trade LED- EESL CFL

Conventional Consumer Durables

20%

2020

49%

22%

Traditional Products

New Age Products

• Conventional Lighting and CFL contributed the

majority of the revenue in FY16

• LED lights started replacing conventional,

resulting in fall in demand

• Transformed the product portfolio to pre-

dominantly LED lighting and Consumer Durables

• The demand after the lockdown has been robust

Distribution Strength – PAN India Reach

North 28%

West 25%

East 18%

South 29%

Revenue Split FY 19-20

LED 57%

Rural 52%

PVC 4%

Consumer Durables 17%

Conventional 22%

Metro Cities 16%

Tier II 32%

By Product

By Population

#1 - States such as AP, Telangana MP, Chhattisgarh, UP and Jharkhand #2 in Karnataka, Delhi, Maharashtra, Bihar, Rajasthan and Uttarakhand, among others Strong Rural distribution network, over 2,50,000 Retail Outlets

Secondary Network of 300+ RTF & 2,500+ DSPs support primary network and promotes effective communication with the market, engagement activities with electricians and architects.

Complete product range, strong R&D and quality management teams

Decentralized branch / depot network system - quick logistical movements, prompt delivery, customer feedback and satisfaction.

Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Strong Transition to LED…

Sr. No

Product Name

Sales

EBITDA

Sales

EBITDA

Sales

EBITDA

Sales

EBITDA

FY15-16

FY 16-17

FY 18-19

FY 19-20

LED- Trade

LED-EESL

Total LED (1 + 2)

CFL (Peak Sale Rs. 374 Cr.)

Conventional

Consumer Durables

12%

19%

24%

42%

14%

Grand Total (1 to 5)

100%

20%

16%

11%

12%

24%

11%

35%

10%

35%

19%

100%

18%

12%

16%

10%

11%

38%

21%

60%

22%

17%

14%

11%

13%

49%

56%

22%

21%

11%

100%

10%

100%

8%*

* Q3 FY21: 11%

Navigated the transition phase of lighting and maintained leadership position by growth in LED lighting and also venturing into consumer durables. Post unlocking, witnessing double digit growth in revenue and substantial EBITDA improvement.

Our Production Facilities and R&D

Production Capacity

LED Bulbs 90 Million Pieces

Street-Lights 3.6 Million Pieces

LED Batten 10 Million Pieces

GLS Bulbs 200 Million Pieces

Kashipur Lighting Unit - Established in 1984

• Manufactures LED lights (Lamps, Street Lights, Downlighters and Battens) & filaments and

MCPCBs & Drivers

Gwalior Lighting Unit - Established in 1992

•

Lighting Plant manufacturing LED lights (Lamps, Street-lights, Decorative lighting) and conventional lights (GLS, FTL), Caps, MCPCBs, Drivers

Surya Technology & Innovation Centre (STIC) at Nodia - Established in 2012 •

Approved by DSIR and NABL, with a focus on in-house development of LED Lighting products

Positive Trends

Indian Lighting Industry grew massively in LED lighting and is expected to touch USD 5 billion over next 5 years

With 100 Smart Cities underway, India is moving towards Futuristic Smart Intelligent Lighting

Reducing imports from China for LED lightings will be favorable for domestic manufacturers

The ‘Make In India’ drive creating strong opportunities for branded players

PLI for LEDs shall reduce dependence on imported components

LED pricing is on an increasing trend, replacement percentage as well as warranty period will help in improving profitability

Value accretive strategies and outcomes

Establishment of the R&D Centre

Growth in LED business, aligned portfolio with market opportunities and manufacture value-added new generation LEDs in-house along with LED Facade & Solar Lighting

Leveraged existing distribution and retailer network leading to additional revenue stream

Inclusion of Consumer Durables

(Fans and Appliances)

Channel financing

Helped dealers and deleveraged the Company

SLNP 28% and UJALA Tender through EESL 15%

Volume Player resulting in Aggressive Cost Reduction

GTM Approach

Market mapping and Sales Force Automation

Focusing on Quality processes, focused R&D, component modifications and vendor terms and Reduced Warranty Cost

Quality Improvement & Product Development

PVC Pipes – Offering Sizeable Business Opportunities

Applications Housing, irrigation, infrastructure, drainage and chemical transportation, among others

Operational Performance 17% revenue growth in FY20, Rs. 56.2 Cr as compared to Rs. 48.1 Cr in FY19

Capacity Expansion Completed capacity expansion by 3,000 MTPA, reaching upto 8,200 MTPA to reach out beyond North India.

Market Reach Sizeable business opportunity with Strong Branding of ‘Prakash Surya’ and Distribution Network

Growth Drivers Ongoing awareness for ‘Swachh Bharat’, ‘Affordable Clean Drinking Water Supply’ as well as schemes like ‘Har Ghar Nal Ka Jal’.

Lighting & Consumer Durables Segment Financial Performance Revenue

EBITDA

In Rs Crs

PAT

12.3%

10.8%

10.0%

9.6%

8.3%

1,247

103

1 1 3 1

2 8 2 1

3 8 3 1

3 5 5 1

161

139

138

149

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

Capital Employed

Netwoth

Debt

696

349

347

725

730

331

322

394

408

887

406

481

682

365

317

ROCE

ROE

9.2%

7.7%

% 4 9 1

% 6 6 1

% 2 6 1

% 6 5 1

% 0 2 2

% 7 5 1

% 5 5 1

% 4 6 1

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

Steel Pipes & Strips

Strong Market Leadership

Steel Pipes and Strips Product Highlights

Revenue Share

Galvanised (GI)

35%

Black

24%

Hollow Section

19%

API Coated Pipes

11%

CR Strips

11%

• Agriculture • Casing and tubing • Hot and Water Plumbing

pipe

• Green Houses • Fire Fighting • Street Light Poles • GP Pipes • Solar Panels • Spur Lines

• Construction Works • Fabrication • Powder Coating • Sign Boards • Industrial Application • Scaffoldings • Poles & Towers • Industrial Sheds

• Engineering & • Architectural • Structures Airport, • Metros, • Railways infrastructure • Urban Development • Electrical Poles/ • Telecom Towers • Solar Structure

• Oil & Gas Pipelines • Oil Well Casing • City Gas Distribution • Plant Piping • Water Pipelines – • Mains lines • Industrial water • Chilled water

• Auto Components • Electrical Stamping for • Motors • Furniture & Fittings • Domestic Appliances • Drums and Barrels • Cycle Rims • Umbrella Tubes, Ribs • Engineering Applications

Key Sectors

Agriculture Fire Fighting

Housing

Infrastructure

Railways

Smart City

City Gas

Transition Towards Higher Margin Products….

FY15-16

FY 16-17

FY 18-19

FY 19-20

CAGR

Sr. No

Product Name

EBITDA^

GI Pipe

Round Pipe

Section Pipe

API Coated Pipe

CR Strips

Total

25%

32%

19%

24%

100%

3,490

1,744

1,535

1,655

37%

24%

13%

17%

2,115

100%

4,620

2,144

1,888

2,894

1,899

3,061

30%

27%

20%

13%

100%

4,557

2,205

1,871

4,310

1,958

3,010

Note:-EBIDTA / MT (in Rs.) of Fresh Qty. ^ - EBITDA / MT

Qty

29%

10%

20%

12%

35%

24%

19%

11%

4,534

2,023

1,670

7,143

1,586

100%

3,256 *

19%

* Q3 FY21: 3,726

•

The period of 2016-2019 was of growth phase, wherein we expanded geographically, unit setup Hindupur plant, commissioned 3LPE coating facilities and also added capacity at existing units. This resulted into higher requirement of working capital and now started generating operating cashflows. The share of GI Pipe, API pipe and Exports increasing on YOY and generating high EBITDA Per MT

Strategically Located Manufacturing Plants

Bahadurgarh (Haryana)

Anjar (Gujarat)

Hindupur (Andhra Pradesh)

Gwalior (Madhya Pradesh)

• Established in 1973 • Location

• Spread over 53 acres,

proximity to Bahadurgarh Metro Station and KMP

• Manufacturing Capabilities • ERW pipe (GI, Black,

Section),

• Cold Rolled (CR) Strips • API Pipes for CGD • Continuous thrust on cost efficiencies

• Established in 2010 • Location

• Spread over 96 Acres, proximity to Mundra Port, giving strategic advantage in exports and imports • Manufacturing Capabilities • ERW and Spiral Pipes, API Coated Pipes • Expansion for 3LPE coating on full swing

• Established in 2017 • Location

• Proximity to the premium market of South India – savings in logistic cost and lower cost of production

• Manufacturing Capabilities

• State-of-the-art facility set up with capacity of 200,000 MT P.A. of ERW pipes (GI, Black, Section and GP Pipes) • Expansion of 3rd Galvanized

plant

• Established in 2010 • Location

• Spread over 51 acres, centrally

located, serving UP, MP, Rajasthan and Chhattisgarh markets

• Manufacturing Capabilities

• Thrust on ERW section pipes • Expansion of large diameter

section pipes upto 300x300 mm (DFT)

• Eligible for state industrial incentives up to 2025 33

3LPE Coating Plant – Driving Growth…

Accreditations • •

Accreditations from all major PMC like EIL, Mecon etc. Certifications of ISO 9001, 14001 & 18001

Application •

Transportation of Petroleum & Natural Gas, City Gas and Water Pipelines

Order Book •

API coated pipes order of above Rs. 650 crores in hand

Expansion • • •

Expansion of 3LPE coating facility by installing second line pipe facility (9,00,000 Sq Mtr) Estimated capex of ₹ 25 crore Expected completion by the end of financial year 20-21

New Capacity will utilize the existing offline capacities of the Company, resulting in cost efficiencies and improved margins

Leveraging Strong Brand and Distribution Network

Selling with ‘Prakash Surya’ Brand across India via established Dealer and Distributor network.

Strong brand leadership, historical presence, channel reach across India with strong presence in Tier II and Rural India, relationship build over decades

Participation in events, dealer meets to engage channel partners.

Extensive advertising and Coverage through Print and Electronic Media.

Advertisement in Local print Media

The International Tube and Pipe Trade Fair, Germany

TV Advertisement for Prakash Surya Steel Pipes

Seeking Market Potential Opportunities

Robust Demand

Rising Investment

▪ ‘Har Ghar Nal se Jal’ mission aims to provide safe and adequate drinking water to 150 million households (approx. 0.5 million villages)

▪ Interlinking projects across 60 rivers through reservoirs and canals, will lead to an increase in irrigation land by about 15%.

▪ Demand for primary energy in India is

expected to increase three-folds by 2035 to 1,516 million tonnes of oil

▪ Large players are undertaking investments to

cater to the burgeoning demand.

▪ The City Gas Projects in 232 geographical areas covering more than 400 districts, across states and union territories, are underway expected to cover over 70% of Population.

Water

Oil and Gas

City Gas Distribution

Supportive FDI Guidelines

Governments Initiative

▪ Impetus on water conservation across 256 districts through rain-water harvesting, renovation of water bodies, reuse and recharge structures, watershed development.

▪ Foreign Investors will have opportunities to invest in

project worth US$ 300 billion.

▪ The National Gas Pipeline network expected to increase from the current 18,000 km to 29,000 km over the next 5-7 years.

▪ It will necessitate building up of 1.6 lakhs km of gas

pipeline across India.

▪ Government has planned investments worth USD 60

billion for developing natural gas supply and distribution infrastructure across the country.

Value accretive strategies and outcomes

Hindupur Facility at Andhra Pradesh

3LPE coating facility at Anjar

Alignment of production capacities

Savings in logistics cost, increase in market share, economies of scale and reduced dependency on the Bahadurgarh unit

Higher capacity utilization of spiral & API pipes, savings in logistics & coating charges, increase in exports of GI & value-added pipes, generating higher margins

Ready to leverage emerging demands from Government’s thrust on Oil & Gas, CGD, ‘Nal se Jal’ and ‘Make in India’.

Increasing share of value-added pipes

Cost rationalization

Increasing engagement and publicity

Thrust on GI, API, Exports and other value-added pipes, leading to higher EBITDA

Reducing overheads, improving efficiencies and asset utilization

Improving visibility through advertisements spent and Dealer Engagement

Supplying Products to Renowned Projects Abroad

Dubai EXPO 2021

Share in India’s total export of ERW Pipes

Qatar FIFA 2022

54%

10%

24%

12%

Surya Roshni

Player 2

Player 3

Others

Export Growth 28% in FY 19-20

Largest exporter of ERW Pipes and ERW Galvanized Steel Pipes (GI) from India, hold 54% share, targeting export of API Pipes.

Exports to over 50 countries including Middle East, Australia, Europe, USA, Canada, Mexico, Ghana, Nigeria, among others.

Financial Performance

In Rs Crs

Revenue

4,235

EBITDA

PAT

256

4 5 6 1

5 0 6 2

5 5 5 3

7 2 4 4

176

210

227

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

-7 FY16

FY17

FY18

FY19

FY20

Capital Employed Netwoth

Debt

ROCE

ROE

1,296 1,414 1,457 786

775

739

557

639

671

1,648

726

922

% 2 5

% 4 0 1

% 6 0 1

% 2 1 1

890

546

344

11.7%

9.0%

% 2 6

% 7 7

% 3 7

% 0 2 -

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

•

The revenue of FY20 was impacted due to decline in prices of steel, outburst of COVID 19 and consequent lockdown. However with unlocking volumes surpassing the previous year and profitability improving further. The share of BGH unit is reducing on YOY. Further ROCE and ROE of other units increased to 16% and 19% respectively .

Operational Performance

Total QTY Vs Fresh QTY (in Lac MT)

Fixed Asset/ Turnover (in Times)

6.15

5.74

4.28

3.96

8.12

8.44

7.39

6.89

7.49

7.84

FY16

FY17

FY18

FY19

FY20

4.96

2.41

2.97

4.1

4.98

FY16

FY17

FY18

FY19

FY20

EBITDA/ MT (In Rs.)

3,264

Increasing volume of other units (excl. Bahadurgarh unit)

70%

5 1 1 2

6 7 0 3

1 5 0 3

8 2 0 3

30%

49%

63%

68%

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

Clients and Customers

41 41

Financial Highlights

Financial Performance

In Rs Crs

Revenue

EBITDA

PAT

8.2%

8.1%

7.1%

6.3%

6.5%

5,471

358

103

4 6 9 2

4 8 8 3

1 3 9 4

5 7 9 5

4 4 2

4 1 3

9 4 3

6 7 3

3 6

6 8

8 0 1

1 2 1

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

Capital Employed

ROCE

Debt to Equity

Debt Netwoth

1,586

5 9 8

1 9 6

2,021 0 7 0 1

1 5 9

2,144

7 9 0 1

7 4 0 1

2,344 2,329

ROE

ROCE

2 9 1 1

2 5 1 1

0 9 0 1

9 3 2 1

10.9%

8.6%

0.88

% 6 1 1

% 6 9

% 5 0 1

% 8 2 1

% 8 0 1

% 5 2 1

% 0 1 1

% 8 2 1

9 2 1

3 1 1

5 0 1

3 0 1

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

FY16

FY17

FY18

FY19

FY20

The Revenue of FY20 impacted due to decline in prices of steel and LED Street Lights & Luminaires, deferment in EESL / Government sales in lighting, outburst of COVID 19 and consequent lockdown, which also impacted the profitability in line with market conditions.

Income Statement – Q3 & 9MFY21

Particulars (Rs. Crores)

Total Revenue from Operations Cost of Material Consumed Purchase of Stock In Trade Changes in Inventories Total Raw Material Gross Profit Gross Profit (%) Employee Expenses Other Expenses Other Income EBITDA EBITDA(%) Depreciation EBIT EBIT(%) Finance Cost Profit Before Tax Tax Profit After Tax Profit After Tax(%) Other Comprehensive Income PAT After OCI

FY21 1,578 1,184 99 -42 1,241 337 21.4% 82 139 1 117 7.4% 27 90 5.7% 16 74 18 56 3.5% 0 56

Q3 FY20 1,398 972 72 28 1,072 326 23.3% 77 152 1 98 6.9% 26 72 5.1% 30 42 11 31 2.2% -1 30

YoY 12.9%

20.5%

76.4%

80.0%

QoQ 14.8%

16.0%

29.6%

32.7%

FY21 1,374 956 52 40 1,048 326 23.7% 78 149 1 101 7.3% 27 74 5.4% 17 57 15 42 3.1% 0 42

9 Months FY20 4,132 3,100 183 -71 3,212 920 22.3% 232 424 3 267 6.4% 77 190 4.6% 89 101 28 73 1.8% -2 71

FY21 3,840 2,720 178 92 2,990 850 22.1% 227 363 3 263 6.8% 75 188 4.9% 54 134 34 100 2.6% -1 99

YoY -7.1%

-1.4%

33.4%

37.5%

FY20

5,471 4,069 263 -96 4,235 1,236 22.6% 304 578 3 357 6.5% 103 254 4.6% 114 140 37 103 1.9% -2 100

Consolidated Balance Sheet

EQUITY AND LIABILITIES (Rs. Crores) (I) EQUITY (a) Equity Share capital (b) Other equity Sub Total (I) (II) LIABILITIES (1) Non-Current Liabilities (a) Financial Liabilities (b) Term Borrowings (c) Other Financial Liabilities

(d) Provisions (e) Deferred Tax Liabilities (Net)

Sub Total (II) (III) Current Liabilities (a) Financial liabilities (b) Working Capital Borrowings (c) Trade Payables (d) Other Financial Liabilities (e) Other current liabilities (f) Provisions & Current Tax Liabilities Sub Total (III) Total Equity & Liabilities (I+II+III)

Sep-20 Mar-20 Mar-19

ASSETS (Rs. Crores) (I) NON-CURRENT ASSETS

Sep-20 Mar-20 Mar-19

54 1,207 1,185 1,097 1,260 1,239 1,152

199 11 61 62

270 11 58 61

335 10 51 80

333

400

476

797 350 159 41 54

621 191 202 38 59

762 295 182 32 61 1,112 1,332 1,401 2,706 2,971 3,029

(a) Property, plant & equipment

1,027 1,049 1,089

(b) Capital work-in-progress

(d) Intangible Asset

Financial Assets

Other Financial Assets

Other Non - current assets

Sub Total (I)

(II) CURRENT ASSETS

(a) Inventories

Financial Assets

(b) Trade receivables

(d) Other Financial Assets

(f) Current Tax Assets

(g) Other current assets

Sub Total (II)

Total Assets (I+II)

1,128 1,130 1,166

723

918

846

627

696

835

187

180

141

1,577 1,841 1,862

2,706 2,971 3,029

Cash Flow Statement

Particulars (Rs. Crores)

Profit before tax

Adjustments

Operating Profit Before Working Capital Changes

Change in operating assets and liabilities

Cash generated from operations

Income taxes paid

Net cash inflow from operating activities (A)

Net cash inflow/(outflow) from investing activities (B)

Net cash outflow from Operating & Investing activities (C=A+B)

Cashflow used in financing activities, payment of interest, dividend and others

Decrease in Net Debt

Half Year ended 30-Sep-20

Half Year ended 30-Sep-19

Full Year ended 31-Mar-20

142

180

322

-10

312

-28

284

-60

-224

105

163

174

-17

157

-33

124

-70

-54

140

210

350

-35

315

-39

276

-48

228

-126

-102

CSR Initiatives…

Naturopathy and yoga

Personality Development

Our dedicated CSR arm Surya Foundation, discharges responsibilities in the fields of health, skill development and education.

For further information, please contact:

Company

Investor Relations Advisors

CIN: L31501HR1973PLC007543

CIN : U74140MH2010PTC204285

Mr. Tarun Goel +91 9810248348 Email: tarungoel@surya.in

Mr. Jigar Kavaiya / Mr. Pratik Tirodkar +91 99206 02034 / +91 9869431195 jigar.kavaiya@sgapl.net / pratik.tirodkar@sgapl.net

www.surya.co.in

www.sgapl.net

Thank You

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