Surya Roshni - Q1 Profitability Marred By Inventory Loss: IDBI Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Surya Roshni Ltd.’s Q1 FY23 profitability was weaker than expected as steel pipes division profitability was marred down due to inventory losses (as witnessed in other steel pipe companies). Its steel segment Ebitda/tonne fell to Rs 3,103 (down 38% YoY). Nevertheless, lighting and consumer durables segment reported strong sales growth of 56% YoY to Rs 3 billion and segment Ebitda also increased 33% YoY to Rs 220 million. Surya Roshni took multiple price hikes to mitigate inflationary pressure during the quarter. On a positive note, its net debt fell by Rs 1 billion QoQ. We cut our FY23 steel pipes division profitability estimate by 12% to factor inventory losses. Also, we lower our FY24 Ebitda estimates by 12% to factor rising prices of key inputs..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Surya Roshni - Q1 Profitability Marred By Inventory Loss: IDBI Capital

Surya Roshni - Q1 Profitability Marred By Inventory Loss: IDBI Capital

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