Surya Roshni Ltd

- Surya Roshni Limited is funding its ₹500 crores capex entirely through internal accruals; no new debt is planned. - The company has a cash surplus of around ₹160 crores as of Q1 FY25 and is keeping the surplus as fixed deposits. - There is no indication of planned equity fundraising or debt issuance in the current documents. - The lighting and consumer division requires minimal additional capex (₹5 crores next year), with most investments focused on the steel division. - The company aims to maintain a zero-debt status, optimizing working capital, and generating internal cash flows for expansions.

- ₹500 crores capex planned over FY25 and FY26, fully funded from internal accruals. - ₹100 crores capex in FY25 for: - Spiral unit in Gwalior (60,000 tons capacity increase) - Cold rolling and 8-inch ERW pipe mill in Bahadurgarh (50,000 tons capacity increase) - Remaining ₹400 crores capex includes: - Large-dia pipe unit in Hindupur (~₹75 crores, +1 lakh tons capacity) - LDP pipe unit in Anjar (~₹75 crores, +1 lakh tons capacity) - New greenfield plant near Mumbai, Maharashtra (~₹250 crores) – expected to ramp up in FY26 Q3/Q4 - Lighting and consumer division capex minimal; ₹25 crores invested via PLI scheme mostly completed. - Capacity expanding from 12 lakh tons to 19 lakh tons by FY26, focusing on higher-margin, value-added steel products. - Commercial operations for major capex to commence by Q3 FY25 and FY26, enabling volume growth and margin improvement.

- Lighting & Consumer Durables segment: - Expected revenue growth of 12%-15% for FY25 driven by rising consumer aspirations and government infrastructure/industrial capex. - Focus on higher margin products and cost management to achieve EBITDA target of ₹180 crores. - Volume growth around 20% in downlighters and batons; professional lighting segment growing at 18%-20%. - Steel Pipe segment: - Anticipated volume growth of 12%-15% in FY25. - Capacity expansion adding 110,000 tons annually (50,000 tons from Bahadurgarh cold rolling & ERW mill; 60,000 tons from Gwalior spiral plant) starting Q3 FY25. - Focus on higher value-added products increasing EBITDA/ton from current ₹6,000-7,000 to a target of ₹8,000. - Order book strong at ₹600-700 crores, mainly from oil and gas sector. - Overall: - EBITDA growth expected to be more than 20% for the next 2 years. - Incremental capacity and product mix enhancements to drive sustainable growth.

- **Lighting Division:** - Target EBITDA for FY25: ₹180 crores, focusing on higher-margin products, cost management, and leveraging PLI benefits. - EBITDA margin expected to reach 12% within two years (improved from 10% currently). - Q1 FY25 lighting EBITDA grew 5%, with margin expected to increase over the year. - **Steel Division:** - Expected volume growth of 12%-15% in FY25. - EBITDA per ton expected to improve from current ~₹6,000 up to ₹7,000-₹8,000 in coming years, driven by value-added products. - Full impact of capacity expansions (110,000 tons/year) to be seen from Q3 FY25. - Steel EBITDA target for FY25: ₹675-700 crores. - Q1 FY25 EBITDA/MT stood at ₹6,065, up 38% YoY. - **Overall Company:** - EBITDA growth expected >20% for next two years. - Q1 FY25 EBITDA grew by 36% YoY. - Focus on expanding value-added and professional lighting segments backed by government infrastructure spends.

- Surya Roshni Limited has an order book of approximately ₹600 crores. - This order book is largely from the oil and gas segment. - The company is expanding capacity with a focus on higher value-added steel products. - Capacity enhancements include a combined 50,000 tons annual increase from Bahadurgarh unit’s cold rolling and ERW mill. - An additional 60,000 tons capacity expansion is underway with a spiral plant in Gwalior, expected to be operational by Q3. - Full impact of the combined 1,10,000 tons capacity increase will be seen next year starting Q3.