Earnings Review
Solar Ind Jul-Sept consol PAT up 43% but misses estimates
This story was originally published at 19:08 IST on 13 November 2024
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--Solar Ind Jul-Sept consol net profit INR 2.86 bln vs INR 2.00 bln year ago
--Solar Ind Jul-Sept consol revenue INR 17.16 bln vs INR 13.47 bln year ago
--Solar Ind Apr-Sept consol net profit INR 5.72 bln vs INR 3.98 bln year ago
--Solar Ind Apr-Sept consol revenue INR 34.01 bln vs INR 30.30 bln year ago
--Solar Ind Jul-Sept consol operating margin 23.68% vs 22.39% year ago
--Solar Ind Jul-Sept consol EBITDA INR 4.75 bln vs INR 3.44 bln year ago
--Solar Ind Jul-Sept consol EBITDA margin 27.70% vs 25.52% year ago
--Solar Ind: Expect Pinaka orders very soon along with international orders
--Solar Ind: Expect to sell defence products of INR 15 bln in FY25
--Solar Ind:Raising FY25 capex guidance to INR 12 bln from INR 8 bln earlier
--Solar Ind: Current order book at over INR 57 bln
By Akash Mandal
MUMBAI – Solar Industries India Ltd.'s consolidated net profit rose 43% on year but failed to beat analysts' estimates. The company reported a consolidated net profit of INR 2.86 billion for the latest quarter, up from INR 2.00 billion a year ago. Analysts had expected the company to report a net profit of INR 3.03 billion. Sequentially, the company's net profit was marginally down.
The company's consolidated revenue for the quarter was INR 17.16 billion, up 27% on year from INR 13.48 billion a year ago, but fell short of the analysts' estimate of INR 17.43 billion. Sequentially, the revenue was up 1.8%. The company's other income rose almost 300% on year to INR 304.5 million.
The company's total expenses for the quarter were INR 13.44 billion, up 26% on year and up 2.4% sequentially. The company's cost of materials consumed was INR 6.41 billion, up 17% on year but down 21% sequentially. The depreciation and amortisation cost for the quarter was INR 436.1 million, up almost 30% on year. The expenses for employee benefits for the quarter were INR 1.45 billion, up 40% on year and up 10% sequentially. The company's other expenses were INR 2.83 billion for the quarter, up 11% on year and up 21% on year.
For the September quarter, the company reported earnings before interest, taxes, depreciation, and amortisation of INR 4.75 billion, up 38% on year from INR 3.44 billion a year ago. The EBITDA margin for the quarter was 27.70%, up from 25.52% a year ago. The operating margin was 23.68% for the quarter, up from 22.39% a year ago.
For Apr-Sept, the company's consolidated net profit was 5.72 billion, up 44% on year. The company's revenue for the period was INR 34.01 billion, up 12.2% on year.
The company said it had an order book of INR 57.57 billion, including the INR 8.87 billion order it had won from Singareni Collieries Co. Ltd. The company revised its capital expenditure guidance for 2024-25 (Apr-Mar) to INR 12 billion from INR 8 billion. The company said it sold 106,057 tonnes of explosives in the domestic market during the quarter, up 7% on year. The company's total domestic sales of explosives were up 5% on year to INR 5.34 billion. However, the company's realisation for explosives per tonne fell 2% on year to INR 50,379.
The company's international sales were INR 7.99 billion for the quarter, up 25% on year. International sales contributed 46% to the company's total revenue for the quarter, higher than a 34% share in the previous quarter. The company said 10% of its revenue for the quarter came from Coal India Ltd., down from the 14% revenue it derived from the company a year ago. The institutional clients, housing and infrastructure, and defence segments contributed 13%, 11%, and 19%, respectively, to the company's revenue for the quarter.
The company said it expects orders for the Pinaka multi-barrel rocket launcher "very soon" along with orders from international customers.
The company said its defence section revenue has grown 204% on year to INR 3.22 billion in the latest quarter from INR 1.06 billion a year ago. The company is optimistic of achieving defence product sales of INR 15 billion with defence reaching around 20% of total sales for the year FY25, Manish Nuwal, managing director and chief executive officer, said in the press release. On Wednesday, shares of the company closed at INR 9,688.35 on the National Stock Exchange, down 3.3%. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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