BPCL ordered Surya Roshni Ltd. to spend 81.47 crore on a CGD project throughout India. The order, which calls for LPE-coated pipes (API SL PSL2), should be finished in 16 weeks. At ₹256.15, shares closed 0.16% down, and since then Surya Roshni shares have been soaring high. Let’s learn the insights of this order.
Overview of Surya Roshni Limited
In 1973, Surya Roshni began producing steel tubes. Since then, it has expanded rapidly to rank among India’s biggest manufacturers of steel pipes and lighting. One of India’s biggest conglomerates, Surya Roshni, exported to more than 50 nations worldwide in FY 2023–2024, with revenues of INR 7,997 crores. Prakash Surya and Surya are synonymous with quality, innovation, and cutting-edge technology.
Vision of Surya Roshni Limited
The goal of “Lighting Every City Every Home” inspired the founding of Surya’s lighting business in 1984. It has been one of the top names in the lighting market for more than a few decades. The lighting future is widely recognized to be LED technology, which has created new opportunities. The LEDs we produce have a far longer lifespan, are energy-efficient, and require much less maintenance.
Order Details
Soon after the announcement of the 1:1 bonus share issue, a 5.01% surge led to a wave of happiness among the investors. However, Bharat Petroleum Corporation’s stock fell 1.29 percent to Rs 276.40 on the BSE, which makes it important to see both companies’ financial positions.
Financial Analysis
For Surya Roshni Limited, the outcomes were diverse as the revenue declined in the Q3 results. When compared to the same time last year, revenue from operations decreased to Rs. 1,937.80 crore by 4.13%. The steel pipes industry’s slowdown in demand for high-value items and the consumer durables and lighting segment’s flat growth were cited as the reasons for this. Considering its profitability, In spite of the drop in revenue, the business was able to keep its profit (net) at Rs 90.10 crore, which was marginally higher than the Rs 89.66 crore it made the year before.
On the contrary, BPCL’s performance was outstanding as BPCL disclosed a noteworthy 28% year-over-year revenue growth at Rs 1,29,652 crore. The increased cost of petroleum products and crude oil was the main cause of this. There was a substantial profit surge as well. Compared to the same period the previous year, when net profit was Rs 5,528 crore, it increased significantly to 13,131 crore rupees subsequently. Better refining margins and high marketing margins were credited with this impressive achievement.
Final Verdict
BPCL and Surya Roshni Limited’s Q3 FY24 figures painted a conflicting image. Although profitability stayed mostly consistent, Surya Roshni’s steel pipes business suffered difficulties that resulted in a drop in revenue. The oil and gas industry’s excellent market conditions, on the other hand, helped BPCL execute a good performance with notable revenue and profit increases. However, the big order from BPCL came in as a surprise for its investors, and it also boosted investors trust in Surya Roshni Limited.
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