Surya Roshni Q3 Results Review - Steel Pipes Ebitda/Tonne Strong: IDBI Capital
Surya Roshni currently has strong order book of more than Rs 7 billion (exports and API Pipes).
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IDBI Capital Report
Surya Roshni Ltd.’s steel pipes profitability was a beat in Q3 FY23. Its steel pipes segment Ebitda/tonne jumped 76% YoY to Rs 6,733 led by strong growth in value added products (mainly API pipes).
Also, Surya Roshni has strong order backlog of Rs 7 billion in pipes division. However, lighting and consumer durables segment sales witnessed a sales growth of only 6% YoY to Rs 3.9 billion and segment Ebitda fell by 3% YoY to Rs 270 million (even after Surya took multiple price hikes to mitigate inflationary pressure during nine months-FY23).
Lastly, its net debt fell by Rs 0.7 billion in nine months-FY23. We introduce FY25 forecasts in this report and raise our Ebitda estimates for FY23/FY24 by 5%/18%, factoring in improved product mix.
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