Revenue grew on the back of strong growth in value-added products across both the segments. The margins remain subdued due to steep fall in steel and commodity prices during Q1FY23 impacted profitability of steel pipes segment on short term basis and will be normalized going forward.

The company reduced debt by Rs 109 crore in Q1FY23 and finance cost has also reduced by 16% in Q1FY23. Debt-Equity reduced to 0.30x as on 30 June 2022 as compared to 0.37x as on 31 March 2022.

The company said that the benefits of cost moderation will reflect in the coming quarters.

The company's lighting and consumer durables segment reported revenue growth of 56% in Q1FY23 driven by B2C as well as B2B business.

The company's steel pipe and strips segment reported 21% growth in revenue, due to a sustained growth in the share of value-added products. The segment reported strong orderbook of more than Rs 1,000 crore in exports and API pipes.

Bharat Bhushan Singal – CFO said, "In Lighting & Consumer Durables, for the quarter, the Revenue, EBITDA and PBT grew by 56%, 33% and 76% respectively on YOY basis to ₹ 335 crore, ₹ 22 crore and ₹ 14 crore respectively.

In the Steel Pipes and Strips, during Q1FY23, the company witnessed revenue growth of 21% YoY. However, EBITDA/MT stood at ₹ 3,103 in Q1FY23.

The relentless focus on working capital optimization led to continuous reduction of working capital cycle on YOY basis to 57 days in Q1 FY23 (from 73 days in Q1 FY22) for the company, Lighting Consumer Durables to 71 days in Q1 FY23 (from 113 days as of Q1 FY22) and in Steel Pipes Strips to 54 days in Q1 FY23 (from 66 days as of Q1 FY22).

The steady revenue growth, lower debt, Working Capital optimization, cost rationalization and focus on debt reduction has led to improvement in Ratios, Debt Equity Ratio further improves to 0.30 as compared to 0.37 in FY22."

Surya Roshni is the largest exporter of ERW pipes, largest producer of ERW GI pipes and one of the largest lighting companies in India.