Ladies and gentlemen, good day and welcome to the Surya Roshni Limited Q2 FY 2025 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of date of this call. These statements are not the guarantees of the future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Raju Bista, Managing Director of Surya Roshni Limited. Thank you, and over to you, sir.
Thank you very much, and good afternoon, everyone. Once again, on behalf of Surya Roshni, I extend a very warm welcome to everyone for joining us today in this conference. On this call, we were joined by Mr. Naresh Singhal, ED, Steel Operations, Mr. Jitendra Agrawal, CEO, Lighting and Consumer Durables, Mr. Bharat Bhushan Singhal, who is our company CFO and company secretary as well, Mr. Gaurav Jain, ED and COO, Steel Operations, and SGA our Investor Relations Advisor. I hope everyone had an opportunity to go through the financial details. Now, quickly moving on to the overall financial performance and highlights. As far as Q2 FY2 2055 is concerned, we continue to navigate a complex and challenging market landscape. Both of our steel pipe business and lighting and consumer durables segments encounter unique market dynamics that influence our results.
The steel pipe business experienced a decline in the overall coal prices, also slow demand resulting in lower revenue. However, operational efficiencies helped mitigate losses arising due to the price erosion. Similarly, in the lighting and consumer durable segment, both better cost management and better product mix have resulted in a good performance. I am happy to announce to inform you that the company has, in fact, the board has approved to reward our shareholders as an interim return of 50%, which is INR 2.50 per equity share on the pre-bonus paid-up capital share. Also, happy to inform you that the company has also declared a bonus share in the ratio of 1:1, one bonus share for every one existing share of INR 5 each fully paid up.
Now, coming to the lighting and consumer durable, our lighting consumer durable segment showcased resilience, achieving a 5% quarter-on-quarter, year-on-year increase in revenue. In consumer lighting, we saw good volume growth across all our sub-segments in spite of the decline in prices of LED products, which is still continuing. And in the professional lighting segment, it delivered a decent growth, but due to the general election in quarter one, there has been a delay in some of the project orders. However, the inquiry book received a very good response in the professional lighting segment. The business registered a higher single-digit growth in Q2 FY 2025 and a double-digit growth in H1 FY 2025. Now, coming to the consumer appliances, the seasonal demand for water heaters was robust, and so. Hello.
Surya Roshni, we lost your audio there.
Is it okay now?
Yes, yes. You may proceed.
In consumer appliances, the seasonal demand for water heaters was robust, and so excellent volume growth of about 50%. Additionally, new segment in the mixer, grinder, and iron categories, along with a positive response to our newly launched monoblock residential pump. Similarly, on our regional expansion into semi-urban and rural markets, where premium product adoption is rising quickly, positions us to tap into growth outside the traditional metro areas, adding resilience to our portfolio against ongoing price pressures. By expanding our premium offering and increasing our geographical presence, particularly in semi-urban markets, we aim to reinforce our market position and offset price erosion in core product lines. Our focus remains on achieving FY 2025 revenue growth of approximately 12%-15% alongside cautious optimism for EBITDA margin stability.
Now, coming to the steel pipe and steel segment, one of the key factors affecting our Q2 FY 2025 performance was a significant reduction in HR coil prices, which fell by approximately 7,500 per metric ton during the quarter-ended Q2 FY 2025. The downward trend led to cautious purchasing behavior among distributors who opted to limit their inventory holding in anticipation of further price adjustments. The decline in steel prices also placed pressure on EBITDA, with an approximate loss of about 3,000 per ton in inventory, which also included prolonged monsoon and export freight, subdued government tendering for API orders. Nevertheless, our proactive operation efficiencies enabled us to offset some of these impacts, allowing us to sustain an EBITDA per ton of INR 2,401.
Our value-added product mix, such as API, spiral, and galvanized pipe, constituted approximately 45% of our revenue in H1 FY 2025, underscoring our ongoing strategy to enhance margins through premium offerings. The API faced muted demand due to limited government tendering, while the spiral large-diameter pipe saw robust performance driven by substantial order inflow, particularly within the water sector. Export volume declined on account of enhanced freight and geopolitical conflicts, such as in the Middle East. However, we remain optimistic about the export recovery within the next six months, driven by stabilizing demand. The commissioning of our spiral plant at Gwalior is scheduled for next month, with a healthy order backlog that will enhance Q3 volume and performance. Our ERW mill in Bahadurgarh plant, operational since July, has already achieved 7,000 tons in output. Additionally, extensions are underway.
Our Bahadurgarh cold rolling facility and spiral plant are set to launch by mid-December, contributing to our Q4 output. The Hindupur facility expansion is underway, with an initial CapEx allocation of about INR 30 crore. We anticipate full-scale operation at the Hindupur facility within the next 12 months. Meanwhile, the expansion at our Anjar, Gujarat facility will advance following a technical review in collaboration with the supplier. This strategic investment, aligned with our focus on efficiency and capacity, is anticipated to strengthen the operational backbone of the steel pipe segment. We have recalibrated our full-year volume growth target to 7%-8% year-on-year for FY 2025 in the steel segment. Reflecting current market conditions, we anticipate EBITDA per ton to stabilize within the range of INR 5,000-INR 5,200 per ton, supported by operational efficiency and a positive demand outlook for the coming months.
The recent recovery in steel price, aided by government intervention, signals a promising trend for margin recovery. Looking forward, we are optimistic about Q3 and Q4 as we continue to leverage our expanded capacity, diversified geographic focus, and operational efficiencies. By strategically positioning ourselves in value-added and export market, we aim to drive growth in the business vertical. Now, for the other financial issues, I would like to request our CFO, Mr. Bharat Bhushan Singhal, to share his points. Thank you, respected everyone, and a very good afternoon to all the participants on the call. For the quarter, the revenue was INR 1,549 crore as compared to INR 1,916 crore. EBITDA and PBDT stood at INR 83 crore and INR 34 crore as compared to INR 139 crore and INR 76 crore, respectively. For the first half of 2025, the revenue was INR 3,422 crore as compared to INR 3,791 crore.
EBITDA and PBD stood at INR 242 crore and INR 147 crore as compared to INR 255 crore and INR 135 crore, respectively. In lighting and consumer durables, for the quarter, the revenue stood at INR 395 crore as against INR 377 crore, a growth of 5% year-on-year basis. EBITDA and PBD stood at INR 36 crore and INR 26 crore, respectively. For H1 Financial Year 2025, the revenue stood at INR 781 crore as against INR 751 crore, a growth of 4% year-on-year basis. EBITDA and PBD stood at INR 70 crore and INR 52 crore as compared to INR 68 crore and INR 54 crore, respectively. In the steel pipe and steel, during Q2 of Financial Year 2025, the revenue was INR 1,135 crore as compared to INR 1,539 crore. Similarly, EBITDA per metric ton stood at INR 2,901 compared to INR 5,104. EBITDA and PBD stood at INR
INR 48 crore and INR 28 crore against INR 104 crore and INR 76 crore, respectively. For H1 FY 2025, the revenue was INR 2,643 crore as compared to INR 3,042 crore. Similarly, EBITDA per metric ton stood at INR 4,653 per metric ton compared to INR 4,758. EBITDA and PBD stood at INR 172 crore and INR 117 crore against INR 187 crore and INR 131 crore, respectively. Improved capacity utilization, working capital optimization, and cost rationalization enabled us to become a zero-debt company and have a cash surplus of INR 36 crore in H1 Financial Year 2025. With this, I conclude the presentation, and we can now open the floor for further questions and answers. Hello.
Sir, should we begin the question and answer session?
Yes.
Thank you. We will now begin the question -and- answer session. Anyone who wishes to ask a question, you may press star and one on their touchscreen telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. First question is from the line of Jatin Damania from Swan Investments. Please go ahead.
Good evening, sir, and thank you for the opportunity. Sir, just to start with your steel business, now, if we look at the steel business, there is a sharp drop in the overall revenue, as you rightly indicated about the fall in the prices. But when you look at the overall volume, our volume has also declined almost by 20% sequentially basis. So can you help us understand which segments reported or witnessed the sharp drop in the overall volume?
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Thank you. A reminder to all participants to ask a question, you may press star and one. The next question is from the line of Aditya Pal from MSA Capital Partners. Please go ahead.
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Thank you. Ladies and gentlemen, to ask a question, you may press star and one. The next question is from the line of Farokh Pandole from Avestha Fund Management LLP. Please go ahead.
Yeah, thanks. [Foreign Language] of the, you know, volume, why you expect volume to pick up in the second half for the pipe business. And eventually, we are looking at 6%-7% growth with better mix over this year, over last year. But the, as you have explained, first half margin and second quarter margin was extremely low. So what are the reason that we are expecting improvement in margin for second half so that we'll be over INR 5,000/ton?
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Net cash level.
Yes.
[Foreign Language] in terms of order book [Foreign Language] order book [Foreign Language] are we seeing forget what is already in the order book, are we also seeing in October and November an improved sort of conversation with respect to inquiry for better outlook of volume? So that risk of 6%-7% of volume for the whole year, [Foreign Language]
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[Foreign Language] what is the INR 400 crore further will be spent equally over next two years?
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Thank you. A reminder to all participants to ask a question. You may press star and one. The next question is from the line of Keshav Garg from Counter Cyclical PMS. Please go ahead.
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Thank you. The next question is from the line of Chintan Patel from Abans Investment Managers .
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Okay, understood.
Okay, sir, thank you.
Thank you. The next question is from the line of Devang from Eaglewings Ventures. Please go ahead.
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Thank you, sir.
All done. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. BB Singhal for closing comments.
Thank you everyone for joining us today on this earnings call. We appreciate your interest in Surya Roshni Limited. I sincerely once again thank you to our MD and the CFO for sharing their valuable time and addressing queries raised by participants who attended the call. For any further queries, if any, contact our investor advisor SGA. Thank you.
Thank you.
Thank you. On behalf of Surya Roshni Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.