Ladies and gentlemen, good day and welcome to the Surya Roshni Limited Q1 FY 2027 earnings conference call. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and may 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 at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Raju Bista, Managing Director, for his opening remarks.
Thank you, and over to you, sir.
Yeah. Good evening, everyone. I am Raju Bista, Managing Director, Surya Roshni Limited. On behalf of Surya Roshni Limited, I extend a very warm welcome once again to everyone for joining us today. On this call, we are joined by Mr. B.B. Singal, CFO and Company Secretary, Mr. Gaurav Jain, CEO, Steel Division, Mr. Vasu Mitra Pandey, CEO, Lighting and Consumer Durable, Mr. Naresh Singhal, Executive Director, Steel, and SGA, our Investor Relations Advisor. I hope everyone had an opportunity to go through the financial results which were published almost one hour before. Now moving on to the overall financial performance highlights. In Q1 FY 2027, our consolidated revenue stood at INR 2,046 crore, up by 28% year-on-year. EBITDA for the quarter at INR 120 crore. PAT for the quarter stood at INR 60 crore, up by 77% year-on-year.
We remain a zero debt company with a net cash surplus of about INR 155 crore as of June 30, 2026. Coming to the lighting and consumer durable. The lighting and consumer durable segment delivered its strongest ever first quarter with revenues of INR 456 crore at about growth of 15% year-on-year. Growth was broad-based, led by LED bulb, batten, downlighter, alongside continued momentum in appliances and professional lighting. EBITDA for the quarter stood at INR 36 crore, which is up by 17% year-on-year, with margins improving to 7.9% in Q1 FY 2026. Even as we pass on an input cost increase of approximately about 7% during the quarter with minimal impact on profitability. Professional lighting ended the quarter with an order book of approximately INR 150 crore, providing healthy near-term execution visibility.
In wire and cables, we achieved close to our FY 2026 sales volume within Q1 of FY 2027 itself, supported by our Direct Benefit Transfer Electrician Loyalty Program, where enrollments have gone up to 36,000 as of today. Our FY 2026 revenue target for the wire business remained INR 250 crore on track with our three years guidance of INR 500 crore. We remain fully on track to deliver our FY 2027 guidance of about 22%-23% value growth and about 25% of volume growth in lighting. With the festive seasons now underway, we expect the next three quarters to be stronger, supported by deeper distribution penetration and continued investment in brand building. Moving on to the steel pipe and strip segment. The steel pipe segment delivered a strongest start to the year.
Revenues for the quarter stood at INR 1,590 crore, which is up by 32% year-on-year, with volume growth of around 21% year-on-year to 2.28 lakh tons, achieving its ever highest sale in quarter one. The growth was best led by section pipe, ERW API pipe, supported by a sharp rise in export volumes following the opening of our U.S. market, spiral cold rolling and GP pipe. Even as galvanized pipes remain soft due to continued delay in government fund releases. EBITDA for the quarter stood at about INR 84 crore, up 63% year-on-year, with EBITDA per ton to INR 4,006 against INR 2,922 in Q1 of FY 2026. The capacity utilization stood approximately 82%. Value-added products contribute 47% of overall volume and export accounted for 20% of segment volumes.
Our order book across trade, export, API, and spiral pipe stood at INR 800 crore, including 78,000 ton of export API orders for the U.S. market. Looking ahead, our strategy for the business rests on three pillars: capacity expansion in depending our value-added product mix and structural cost reduction. Three new DFT mills are being commissioned across Gujarat, Malanpur, and Bahadurgarh plant between August and December 2026. We will continue to add 2 lakh-3 lakh ton of capacity every year, targeting overall capacity of about 16 lakh ton in FY 2026, and approximately 2 million ton of capacity by FY 2028-2029. On cost, our various automation, energy efficiency, and replacing old plants initiatives are directed at a per ton cost reduction of about INR 1,100, and we are fully committed that in full year of FY 2027 guidance of INR 4,600-INR 4,700 per ton EBITDA will be achieved.
We remain confident that our current global supply chain present a structural long-term opportunity for efficient Indian manufacturers with integrated capabilities and Surya Roshni is exceptionally well positioned to capture that upside across both our businesses. I would like to request Mr. B.B. Singal to share his view.
Thank you, Mr. Bista and team, and a very good afternoon to all the participants on the call. For the quarter, the revenue was INR 2,046 crore as compared to INR 1,605 crore, a growth of 28% year-on-year basis. EBITDA stood at INR 128 crore and INR 60 crore as compared to INR 83 crore and INR 32 crore in Q1 FY 2026, a growth of 46% and 77% year-on-year basis respectively. In lighting and consumer durable, revenue for the quarter stood at INR 456 crore as against INR 397 crore, a growth of 50% year-on-year basis. EBITDA and PBT stood at INR 36 crore and INR 24 crore as compared to INR 31 crore and INR 21 crore in Q1 FY 2026, a growth of 17% and 12% respectively.
In the steel pipe and strip, during the quarter, the revenue was INR 1,590 crore as compared to INR 1,207 crore, a growth of 32% year-on-year basis. Similarly, EBITDA per metric ton stood at INR 4,006 compared to INR 2,922 in the same period last year, a growth of 37% YoY basis. EBITDA and PBT stood at INR 84 crore and INR 57 crore as against INR 52 crore and INR 24 crore, a growth of 63% and 134% respectively. In Q1 FY 2027, our net working capital cycle was 72 days with a return on capital employed of 12.69% and a return of equity of 8.95%. Improved capacity utilization, working capital optimization, and cost rationalization enabled us to become a zero-debt company and having cash surplus funds of INR 154 crore as on June 30, 2026.
With this, I conclude the presentation and we can now open the floor for further questions and answers.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Viraj Mehta from Enigma Investment Partners. Please go ahead.
Yeah. Hello, sir. Congratulations, Raju Bista.
Thank you.
Sir, my first question was that you said we will do INR 4,700- INR 4,800 of EBITDA per ton. But if I look at the first quarter, it is INR 4,000 EBITDA per ton. So to do INR 4,700-INR 4,800, [Non-English content]?
[Non-English content] . volume [Non-English content] profitability [Non-English content] last con call [Non-English content] expect [Non-English content] Q1 expected but somehow 2.3 ton [Non-English content] shortfall [Non-English content] vessels availability [Non-English content] 7,000 ton [Non-English content] material port [Non-English content] M iddle East [Non-English content] extended [Non-English content] Middle East side order [Non-English content] 8-10 ton [Non-English content] API spiral [Non-English content] 8-10 ton shortfall [Non-English content] expected Q1 [Non-English content] volume. [Non-English content] Otherwise growth [Non-English content] numbers [Non-English content] 11 ton [Non-English content] quarter. [Non-English content] Quarter two, three, four [Non-English content] quarter [Non-English content] 22%-23% [Non-English content] growth numbers [Non-English content] achieve [Non-English content] profitability EBITDA [Non-English content] reasons [Non-English content] EBITDA [Non-English content] INR 4,700 [Non-English content] expected [Non-English content] INR 700 ton [Non-English content] impact [Non-English content].
Mainly [Non-English content] reasons [Non-English content] genuine reasons [Non-English content] ocean freight [Non-English content] INR 3,800 per ton [Non-English content] impact [Non-English content] quarter [Non-English content] total export [Non-English content] 20% [Non-English content] quarter [Non-English content] total volume [Non-English content] divide [Non-English content] INR 800 per ton impact EBITDA only because of ocean freight [Non-English content]. Similarly [Non-English content] input cost [Non-English content]. Mainly coating material, gas, ORM [Non-English content] INR 200 per ton [Non-English content] ocean freight [Non-English content] impact [Non-English content] quarter, particularly [Non-English content]. Mainly [Non-English content] order booking [Non-English content] almost [Non-English content] order [Non-English content] freight [Non-English content] booking [Non-English content] INR 600-INR 700 crore impact EBITDA [Non-English content].
Mainly [Non-English content] concern [Non-English content] INR 4,600-INR 4,700 crore [Non-English content] INR 4,400-INR 4,500 crore [Non-English content] second quarter [Non-English content] third quarter, fourth quarter [Non-English content] INR 4,600-INR 4,700 crore EBITDA per ton [Non-English content] profitability [Non-English content] lighting [Non-English content] steel [Non-English content] last call [Non-English content] achieve [Non-English content]. We are fully confident.
Sure sir. Thank you so much. [Non-English content] Sir second question regarding [Non-English content] April and June [Non-English content] steel [Non-English content] quite prices correct [Non-English content] . So [Non-English content] inventory loss [Non-English content] this quarter roughly?
[Non-English content], particularly April 26 [Non-English content] INR 3,000-INR 4,000 crore price increase [Non-English content]. May, June price decrease [Non-English content] overall [Non-English content] quarter [Non-English content] part [Non-English content] impact Q1 [Non-English content]. More or less [Non-English content] stable steel price [Non-English content] up and down [Non-English content] level [Non-English content]. Quarter two [Non-English content] benefit [Non-English content] 25, [Non-English content] 1,000 ton vessels already port [Non-English content] quarter [Non-English content] positive impact [Non-English content] benefits [Non-English content] imported material [Non-English content] price reasonably [Non-English content] compared to domestic.
Right, sir. Sure, sir. I don't have any more questions. I'll come back in the queue.
Thank you. We have our next question from line of [Kiran] from Table Tree Capital. Please go ahead.
Sir, thank you for the opportunity. Sir, a couple of questions. First thing on order book within the steel segment. We had an order book of in March ending 1,000 crore as given in the presentation. Now in this quarter, we are saying in spite of all these increase in exports and everything else our order book is 800 crore. So there is an order book decrease of 200 crore. I mean, should I assume that this 800 crore has a higher proportion of exports and therefore will continue to do better margins because order book 20% [Non-English content]?
[Non-English content] order book [Non-English content] fresh order book [Non-English content] freight [Non-English content] , export [Non-English content] INR 3,800 per ton impact [Non-English content] increase product [Non-English content]. Similarly [Non-English content] Middle East [Non-English content] , Middle East regular basis [Non-English content] 15 [Non-English content] 20 [Non-English content] ton quarterly [Non-English content] almost 13% material [Non-English content] API [Non-English content] order [Non-English content] flow [Non-English content] almost 50% [Non-English content] degrowth [Non-English content] reasons [Non-English content] numbers, lighting, steel [Non-English content] order book [Non-English content] business [Non-English content] INR 800, INR 1,000, INR 1,200 [Non-English content] regular basis [Non-English content] more or less [Non-English content] businesses [Non-English content] fixed [Non-English content].
[Non-English content] project [Non-English content]. Otherwise more or less [Non-English content] domestic trade consumer business [Non-English content], [Non-English content] through [Non-English content] 53% [Non-English content] sale [Non-English content] 20% [Non-English content] export [Non-English content] contribute [Non-English content]. Cold Rolling segment [Non-English content] 10% [Non-English content] government [Non-English content] actual user [Non-English content] contribution [Non-English content]. More or less, almost 75%- 80% [Non-English content] business fixed [Non-English content] , [Non-English content] distribution [Non-English content] segment type [Non-English content] business cycle [Non-English content] positive [Non-English content] impact [Non-English content] 20% [Non-English content] INR 1,000 [Non-English content] INR 800 [Non-English content] immediately INR 1,000-INR 1,200 [Non-English content] quarter volume impact [Non-English content].
[Non-English content] Sir, [Non-English content] question [Non-English content] sorry [Non-English content] please excuse.। [Non-English content] U.S. export [Non-English content] , U.S. or Middle East export [Non-English content] , [Non-English content] GI pipe [Non-English content] API spiral pipe ? The reason I am asking sir is because API spiral pipe [Non-English content] highest EBITDA per ton [Non-English content], [Non-English content] FY 2026 [Non-English content] export [Non-English content] U.S. [Non-English content] 78,000 ton and everything, is it GI pipe or API spiral pipe?
[Non-English content] ERW API pipe [Non-English content] market [Non-English content] add [Non-English content] EBITDA per ton [Non-English content] quarter [Non-English content] 70- 100 [Non-English content]. Mainly on account of freight vessels [Non-English content] long term [Non-English content] freight bulk [Non-English content] tie up [Non-English content] particularly for the U.S. market [Non-English content] volume [Non-English content] quarter EBITDA [Non-English content] improvement [Non-English content] freight bulk [Non-English content] vessels [Non-English content] increase impact , [Non-English content] mainly [Non-English content] U.S. market [Non-English content] API ERW pipe , not spiral.
Not spiral. Got it. Sir, last question in terms of U.S. opportunity , exports opportunity , [Non-English content] product [Non-English content] and previously also we used to export a little but now it's a completely new product like you just said ERW API. [Non-English content] FY 2027 U.S. focused revenue just general export revenue [Non-English content] ? Sir, [Non-English content] FY 2028 [Non-English content] growth [Non-English content] ? Especially API business because EBITDA per ton is much higher. So it will be very good to paint a picture for us to say exports [Non-English content] growth [Non-English content] and all this export growth will come at a higher EBITDA per ton?
[Non-English content] 11 lakh ton [Non-English content] volume , [Non-English content] 2.3 lakh ton [Non-English content]. Quarter two [Non-English content] 2.6 lakh ton [Non-English content]. Q3 2.8- 2.9 lakh ton [Non-English content] Q4 3.2 lakh ton [Non-English content] 11 lakh ton volume [Non-English content] as such issues [Non-English content] utilization [Non-English content] almost 82% + [Non-English content].
Simultaneously [Non-English content] stress [Non-English content] margins high value addition product [Non-English content] focus [Non-English content]. Gradually [Non-English content] 40%-42% [Non-English content] 47% [Non-English content]. Middle East correction [Non-English content], Australia, [Non-English content], New Zealand market grow [Non-English content]. Malaysia, [Non-English content] country [Non-English content] pipeline [Non-English content] U.S. [Non-English content] 8%- 10% [Non-English content] share [Non-English content]. Overall [Non-English content] export contribution 20% [Non-English content] 25% [Non-English content].
[Non-English content], FY 2026 20% [Non-English content] 25% [Non-English content]. Is that the right understanding?
See, FY 2026 it was about 15%-16%, precisely 17%. Now the FY 2027 it has increased to 20% so gradually it will go up to like about 25% of total steel segment.
Perfect. Thank you so much. I will get back to you.
Thank you. We have our next question from the line of Love Gupta from Counter Cyclical Investments. Please go ahead.
Sir, last call [Non-English content] new rules [Non-English content] consider [Non-English content] buy back. [Non-English content] update ?
[Non-English content]. Hopefully [Non-English content] team [Non-English content] , [Non-English content] double taxation [Non-English content] angle [Non-English content], [Non-English content] particularly [Non-English content] quarter [Non-English content] steel [Non-English content] working capital [Non-English content]. Very soon [Non-English content] corporate action [Non-English content].
Second sir, demerger [Non-English content] update ?
[Non-English content] corporate action [Non-English content] Board [Non-English content] buyback [Non-English content] demerger [Non-English content] Managing Director of the company [Non-English content] business standalone [Non-English content] , even lighting consumer [Non-English content] steel segment. [Non-English content] appropriate time. Micro [Non-English content] macro situation [Non-English content] right time. [Non-English content] concern [Non-English content] management [Non-English content] Board [Non-English content].
Thank you so much.
Thank you. We have our next question from the line of [Pranav from Rey Enterprises]. Please go ahead.
Hi sir, thanks a lot for the opportunity.
Hi.
Sir, in last quarter you had said that you will come to a decision by next Board meeting on demerger. Also second thing is what in macro and micro actually is like because the two businesses have completely different cycles, different macro and different micro. So why we take this reason as a reason to delay demerger or buyback? Just for my clarity.
[Non-English content] business [Non-English content] standalone [Non-English content] strong [Non-English content] lighting [Non-English content] wire [Non-English content] appliances [Non-English content] add [Non-English content]. Steel pipe [Non-English content] investment further [Non-English content] globally geopolitical situation , [Non-English content] uncertainty [Non-English content]. [Non-English content] , [Non-English content]. [Non-English content] scene. [Non-English content] right time [Non-English content] debt [Non-English content] service [Non-English content] , [Non-English content] employee timely [Non-English content]. Company [Non-English content] shareholder [Non-English content] company [Non-English content] , shareholder [Non-English content].
Correct sir. So that's why because whenever I study this company, I feel that regulatory wise or bank wise or anything there is no theoretical thing stopping demerger. Unless and until?
[Non-English content]. [Non-English content] logic [Non-English content] demerger [Non-English content].
Correct.
I strongly believe.
Correct. Sir, [Non-English content] INR 7,200 realization you also got for this quarter exports. But most of the EBITDA increase were eaten away by tariff increase. Going forward, you think that the tariffs have normalized or the pricing will take care of this EBITDA erosion that has happened?
[Non-English content] order book [Non-English content] price [Non-English content]. [Non-English content] order , even order in hand , booked , [Non-English content] freight include [Non-English content] order [Non-English content] slightly [Non-English content] INR 1,000 [Non-English content] INR 800 [Non-English content] order book. [Non-English content] INR 3,800 per ton export total volume [Non-English content] impact , different country has different tariff, [Non-English content] impact [Non-English content] quarter [Non-English content] impact [Non-English content]. That we have already taken care of.
Understood sir. Sir, last question from my side. You had guided that export versus 1.26 lakh ton- 1.3 lakh ton last year would be 2.4 lakh ton or 2.5 lakh ton this year. That will help obviously the EBITDA per ton for our company. Does that volume outlook remain same? 10,000 ton per month U.S. market that had opened for us. Does this continue?
Overall, as far as U.S. market is concerned, we will be doing 120,000 ton- 125,000 ton of business during this entire FY 2027.
Right. So total export will be upwards of 2 point something. 2.2 point-2.3 point.
Yeah. The contribution of U.S. market probably will be around 10%-11%. I think we will be doing around 3 lakh tons of export.
Okay. Thank you so much.
Thank you. We have our next question from the line of [Shantanu Basu from Smith Limited]. Please go ahead.
Hello. Yes. Am I audible?
Yes. Hi.
My first question is with regard to the Middle East situation. If you could just explain or give us some clarity with regard to how the Middle East situation is shaping up and how would we see it shaping up during the next few quarters. That is one. The second question is, when I am looking at slide 18 of your presentation, I am seeing that the API and spiral pipe EBITDA per metric ton dropped very significantly in FY 2025 to 2026 to INR 5,600, compared to INR 9,136 in FY 2022. Then of course it went up to INR 12,000, INR 10,000. What was the reason for the sharp drop and how do you see it and what is the figure in Q1 FY 2027 and how do you see the figures improve in the coming quarters? That's all sir.
[Non-English content] Middle East [Non-English content] $300 [Non-English content] INR 4,200 [Non-English content] freight. [Non-English content] situation [Non-English content] , [Non-English content] evolve [Non-English content] precisely [Non-English content]. [Non-English content] control [Non-English content]. [Non-English content] spiral [Non-English content] , [Non-English content] API spiral [Non-English content] price [Non-English content]. Water pipe [Non-English content]. [Non-English content] product mix [Non-English content] impact [Non-English content]. Generally spiral [Non-English content] API spiral [Non-English content] , [Non-English content] margins higher side [Non-English content] water pipe segment [Non-English content] competition [Non-English content].
Sir, Q1 FY27 [Non-English content] ?
[Non-English content]. It was INR 3,420 per ton.
INR 3,420.
Yeah.
Okay.
[Non-English content] coating material impact [Non-English content]. [Non-English content] spiral.
Okay sir. [Non-English content] quarter [Non-English content] figure ?
Gradually improve [Non-English content] order [Non-English content] INR 5,600-INR 5,700 per ton [Non-English content] INR 5,000 [Non-English content].
For the full year?
Yeah.
Okay. [Non-English content] sir.
Thank you. We have our next question from the line of Resham Jain from VVD Asset Managers. Please go ahead.
Good evening. Congratulations on good set of volume growth. [Non-English content] generally API pipes India [Non-English content] tenders [Non-English content] slow last [Non-English content]. [Non-English content] new tenders float [Non-English content]. View [Non-English content] for second half?
[Non-English content] questions [Non-English content].
Sir, [Non-English content] capacity expansion [Non-English content] plan [Non-English content] , already [Non-English content] 16 lakh tons [Non-English content] I think. [Non-English content] ton [Non-English content] add [Non-English content]. [Non-English content] ? South , East , [Non-English content] capacity [Non-English content] , [Non-English content] ? [Non-English content] , [Non-English content] guide [Non-English content]. EBITDA [Non-English content] FY 2027 [Non-English content] last time INR 700 [Non-English content] EBITDA guidance [Non-English content] FY2027 [Non-English content] sir?
[Non-English content] A PI tender business , [Non-English content] tender [Non-English content]. You are very much correct [Non-English content] participate [Non-English content] , but [Non-English content] materialize [Non-English content] process [Non-English content] time [Non-English content. That is one. [Non-English content] 14 lakh ton [Non-English content] capacity. [Non-English content] end [Non-English content] factory [Non-English content] expansion [Non-English content]. Mill commission [Non-English content] 16 lakh ton [Non-English content] FY 2028 to 2029 [Non-English content] 2 million [Non-English content] capacity [Non-English content] overall [Non-English content] EBITDA [Non-English content] , [Non-English content] Q1 INR 120 [Non-English content] EBITDA [Non-English content]. [Non-English content] expect [Non-English content] Q2 [Non-English content] INR 150 [Non-English content] numbers [Non-English content]. Followed by INR 400 [Non-English content] target for the rest H2.
[Non-English content] INR 670-INR 680 [Non-English content] EBITDA [Non-English content] INR 9,400-INR 9,500 [Non-English content] revenue turnover [Non-English content].
Sir, [Non-English content] capacity [Non-English content] expand [Non-English content] incrementally?
[Non-English content] Malanpur plant [Non-English content] South [Non-English content]. [Non-English content] next [Non-English content] capacity [Non-English content] South [Non-English content] already Hindupur [Non-English content] 10 acres additional land [Non-English content] already [Non-English content] 15,000 ton [Non-English content] setup [Non-English content] extra create [Non-English content]. [Non-English content] mill commissioning January 27 , [Non-English content] . T otal mill [Non-English content] plant [Non-English content] INR 60 crore [Non-English content] investment [Non-English content] additional land [Non-English content] adjacent [Non-English content] current facility Hindupur , [Non-English content] 3 lakh ton [Non-English content] capacity increase [Non-English content].
Okay. Thank you, sir. All the best.
Thank you. A reminder to all participants. If you wish to ask any questions, you may press star and one on your touchtone phone. Anyone who wishes to ask a question, may press star and one. Next question is from the line of Viraj Mehta from Enigma Investment Partners. Please go ahead.
Hello, sir. Just a couple of clarifications. You said INR 680 crore EBITDA for the full year. That means INR 150 crore in the second quarter. Is that correct?
[Non-English content]
INR 150 crore-INR 160 crore in the second quarter?
[Non-English content]
Hello?
Yeah.
Right. [Non-English content] freight [Non-English content] export [Non-English content] , are any of those orders [Non-English content] issue has that continued even in the second quarter in terms of [Non-English content] July [Non-English content] ? I am sure you are aware [Non-English content] July [Non-English content] margin hit [Non-English content] freight [Non-English content]?
Viraj , July [Non-English content]. [Non-English content] fresh order [Non-English content] , [Non-English content] price [Non-English content]. We are taking all impact of freight , vessels [Non-English content]. We are finding other method also [Non-English content] break bulk easily possible , [Non-English content] nominal impact [Non-English content]. [Non-English content] time [Non-English content], but [Non-English content] impact [Non-English content] Q2- Q3 [Non-English content].
Right, sir. Last two questions. One sir, what is the, because we have had spillover sir first quarter [Non-English content] second quarter [Non-English content] spillover [Non-English content] because [Non-English content] port [Non-English content] 8,000 tons-10,000 tons [Non-English content] . So sir Q2 [Non-English content] volume [Non-English content] ? July already [Non-English content] , so I am sure there is some rough sense you have?
[Non-English content] Q2 [Non-English content] guidance [Non-English content] impact Q2 [Non-English content] reflect [Non-English content].
Absolute amount [Non-English content] sir? 2.6, 2.7, 2.8 [Non-English content] sir?
2.6 minimum.
2.6.
2.6-2.7.
Okay. Thank you so much.
Thank you. A reminder to all participants. If you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question, may press star and one on the touchtone. Next question is from the line of Raj Mehta from PPFAS Mutual Fund . Go ahead.
Sir, [Non-English content] last [Non-English content] sales growth [Non-English content] EPS growth , almost constant. [Non-English content] company [Non-English content] CapEx [Non-English content] complete [Non-English content] competitors , [Non-English content] face [Non-English content] quarter, [Non-English content] APL Apollo [Non-English content] same [Non-English content] face [Non-English content] margin [Non-English content] in fact, [Non-English content] market share [Non-English content] gain [Non-English content] export [Non-English content] focus [Non-English content] market capture [Non-English content] try [Non-English content] view [Non-English content] domestically margin pressure [Non-English content] face [Non-English content] competition [Non-English content] volume [Non-English content] margin squeeze [Non-English content] situation on ground ?
[Non-English content] companies [Non-English content] strength [Non-English content] weakness. [Non-English content] P/S [Non-English content] volume [Non-English content] 21% growth , value terms 32% growth. [Non-English content] P/S [Non-English content] , [Non-English content] company [Non-English content] 8% growth [Non-English content] Jindal SAW [Non-English content] 13% , Ratnamani -16% [Non-English content] quarter- to- quarter depend [Non-English content] product mix [Non-English content] strength , strength [Non-English content] impact [Non-English content] last con call [Non-English content] growth [Non-English content] case [Non-English content] steel [Non-English content] lighting [Non-English content] tough overall.
[Non-English content] quarter one [Non-English content] 15% growth [Non-English content] growth continue [Non-English content]. Even lighting [Non-English content] 19%- 20% value terms growth [Non-English content] steel [Non-English content] volume 22% growth [Non-English content] value terms 30%+ growth [Non-English content]?
Sir, growth [Non-English content] because last year [Non-English content] June quarter , [Non-English content] SAP implementation [Non-English content] accounting [Non-English content] problem face [Non-English content] base effect [Non-English content] year- on- year [Non-English content] growth [Non-English content] quarter- on- quarter compare [Non-English content] quarter- on- quarter compare [Non-English content] margin pressure [Non-English content] value terms volume pressure [Non-English content] external reasons [Non-English content] specific exports [Non-English content] but domestic [Non-English content] steel division specifically [Non-English content] demerger [Non-English content] steel division [Non-English content] quarter- on- quarter impact [Non-English content] competitor compare [Non-English content] ROE, ROCE mid-teens [Non-English content] as a value creative [Non-English content] shareholders [Non-English content] because last [Non-English content] stagnant [Non-English content] sir?
[Non-English content] volume [Non-English content] impact positive note [Non-English content] Q1 [Non-English content] volume [Non-English content] issues [Non-English content] ERP [Non-English content] average Q1 sales volume [Non-English content] , number one. Number two, capacity expansion [Non-English content] already [Non-English content] additional volume [Non-English content] reason [Non-English content] volume [Non-English content] growth [Non-English content].
[Non-English content] Sir, [Non-English content] question [Non-English content] value added products [Non-English content] mix [ Non-English content] 42%- 43% [Non-English content] 47% [Non-English content] value added products mix [Non-English content]. [Non-English content] 50% [Non-English content] sir steel pricing [Non-English content] impact [Non-English content] , [Non-English content] fluctuation [Non-English content] fluctuation [Non-English content] 50% [Non-English content] additionally [Non-English content] 3%-4% increase [Non-English content] value added products, [Non-English content] constantly fluctuation [Non-English content] these numbers based on the pricing of the steel.
[Non-English content] motive [Non-English content] because [Non-English content] competitors [Non-English content] , [Non-English content] shift [Non-English content] value added products [Non-English content] because [Non-English content] fluctuation , [Non-English content] fluctuation [Non-English content] inventory loss gain issue [Non-English content] additionally [Non-English content] vision next [Non-English content] 40%-50% value added , [Non-English content] 60%, 70%, 80% [Non-English content]?
[Non-English content] impact [Non-English content] manpower person cost [Non-English content] cost , [Non-English content] 20% [Non-English content] reduce [Non-English content] , that is one. Number two, [Non-English content] steel fluctuation , [Non-English content] control [Non-English content] 50 [Non-English content] pipe [Non-English content]. 50 [Non-English content] steel price control [Non-English content] , but [Non-English content] segment wise [Non-English content] volume.
75% +, 80% [Non-English content] business fix [Non-English content] overall [Non-English content] average [Non-English content] negative [Non-English content] impact [Non-English content] in case of [Non-English content] try [Non-English content] 24 [Non-English content] pipe [Non-English content] investor [Non-English content] , [Non-English content] role [Non-English content] 24 [Non-English content] market [Non-English content] mold [Non-English content].
Sir, [Non-English content] going forward [Non-English content] next capacity expansion [Non-English content] same [Non-English content] future outlook next five [Non-English content] vision [Non-English content] ? [Non-English content] current year [Non-English content] growth focus [Non-English content] volume growth [Non-English content] on ground [Non-English content] next five [Non-English content] horizon [Non-English content] ?
[Non-English content] 10%-15% CAGR [Non-English content] grow [Non-English content] accelerate [Non-English content] 20%-25% CAGR grow [Non-English content] market share gain [Non-English content] competitors. [Non-English content] APL Apollo , [Non-English content] base commodity steel pipe [Non-English content] de-growth [Non-English content] focus [Non-English content] value added products [Non-English content] opportunity [Non-English content] market share gain [Non-English content] EBITDA [Non-English content] spread [Non-English content] general section [Non-English content]?
[Non-English content] , focus [Non-English content] section [Non-English content] expansion [Non-English content] plants [Non-English content] fully [Non-English content] DFT [Non-English content] section [Non-English content] number one. Number two [Non-English content] 15%- 18% CAGR [Non-English content] maintain [Non-English content] cost [Non-English content] push [Non-English content] control [Non-English content] already [Non-English content] road [Non-English content]. [Non-English content] Surya Roshni [Non-English content] opportunity in terms of growth [Non-English content] engage [Non-English content] green field project [Non-English content] already [Non-English content]. Next Board meeting [Non-English content] clarity [Non-English content] regional presence [Non-English content].
[Non-English content] 15%-20% CAGR [Non-English content] lighting-
Sorry to interrupt, Mr. Raj. May we request you to rejoin the queue as there are several participants waiting for their turn.
Okay.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to only one per participant. Should you have follow-up questions, we request you to rejoin the queue. I repeat, please limit yourself to only one question per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sanjay Kapoor from Kapoor & Co. Please go ahead.
[Non-English content] Sir, [Non-English content] volume addition [Non-English content] pipe segment from the existing 14 - 16 [Non-English content] CapEx [Non-English content] EBITDA [Non-English content] guideline [Non-English content] lighting business and pipe business [Non-English content] mix [Non-English content] , first quarter [Non-English content] ?
[Non-English content] capacity [Non-English content] investment [Non-English content]. Internal accruals [Non-English content]. [Non-English content] Lighting steel , lighting [Non-English content] INR 2,200 [Non-English content] turnover [Non-English content] con call [Non-English content] numbers maintain [Non-English content] 20%- 22% growth [Non-English content]. [Non-English content] INR 1,809 [Non-English content] sale , [Non-English content] INR 2,200 [Non-English content] sale [Non-English content] INR 200 [Non-English content] EBITDA lighting division [Non-English content]. [Non-English content] steel division [Non-English content] already [Non-English content] company as a whole [Non-English content] numbers [Non-English content] number [Non-English content] stick [Non-English content] INR 9,400-INR 9,500 [Non-English content] total revenue [Non-English content] INR 670-INR 680 [Non-English content] EBITDA company as a whole Surya Roshni [Non-English content].
[Non-English content] sir. Lighting business [Non-English content] contract manufacturing-
Sorry to interrupt you, Mr. Sanjay. May we please request you to rejoin the queue.
[Non-English content] point clear [Non-English content]?
[Non-English content].
Sir, [Non-English content] lighting business [Non-English content] percentage contract manufacturing [Non-English content] in-house [Non-English content] as a percentage?
[Non-English content] specificity [Non-English content] in-house [Non-English content] product [Non-English content] in-house [Non-English content] make or buy [Non-English content] internally [Non-English content] 20% [Non-English content] outsource [Non-English content] , 80% [Non-English content] in-house [Non-English content].
Sir, [Non-English content]?
Outsource [Non-English content] control [Non-English content]. Quality control [Non-English content] production [Non-English content] line [Non-English content] 80% [Non-English content] material [Non-English content] exclusive Surya Roshni [Non-English content]. So basically they are also our extended plant only.
Okay. [Non-English content] sir. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question for the day. I now hand the conference over to Mr. B.B. Singal for closing comments. Thank you and over to you, sir.
Thank you everyone for joining us today on this earning call. We appreciate your interest in Surya Roshni Limited. I sincerely once again thank our MD sir and the CEOs for sparing their valuable time and addressing queries raised by participants who attended the call. For any further queries, if any, you can contact SGA or Investor Relation A dvisors. Thank you. Good evening once again. 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.