Surya Roshni in dim light

Surya Roshni is down in the red after the disappointing numbers for Q2FY25. The company’s revenue was down 20% (YoY) at Rs.1529 crore. EBITDA was down 40% at Rs.83 crore, PBT declined 56% at Rs.46 crore and PAT at Rs.34 crore, down 55%.

Its Steel Pipes business experienced sharp decline in HR steel prices. Dampened demand resulted in lower revenues. However, operational efficiencies helped mitigate losses arising due to price erosion. In the Lighting & Consumer Durables segment, price erosion in LED products continued. However, better cost management and product mix resulted in a better performance.

Q2FY25, posed several challenges for the company’s businesses due to seasonal factors, price volatility, and geopolitical tensions affecting export markets. Nonetheless, the company has managed these headwinds through stringent operational efficiencies and proactive capacity expansion, which are expected to support gradual improvement in both domestic and export markets. Strategic initiatives in operational efficiency, high-margin product focus, and regional market expansion are expected to support improved performance in the second half of the fiscal year.

The stock is in the red; from a close of Rs.611.75, opening lower at Rs.590 and fell down 10% to an intraday low at Rs.550.65. Its 52-week close is at Rs.467.15.