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Informist, Wednesday, Feb. 5, 2025

By Avishek Rakshit

KOLKATA – A record quarterly revenue of INR 19.73 billion in Oct-Dec helped India's largest explosives-maker Solar Industries India Ltd. to report its best-ever consolidated net profit at INR 3.15 billion during the quarter. The net profit surged 55% on year and the revenue increased 38%.

On a sequential basis, the company reported 15% growth in revenue and a 10% increase in net profit, even though the sales of explosives rose by only 1% on year to 155,222 tonnes.

The Oct-Dec quarter proved to be a record-setting quarter for the company. Apart from reporting its highest-ever quarterly revenue and profit, the company also reported its highest-ever quarterly earnings before interest, tax, depreciation, and amortisation at INR 5.36 billion.

The company reported its highest-ever income from the defence vertical at INR4.09 billion, up from INR 610 million a year ago. The company's total order book also rose to a record INR 71.22 billion.

Usually, about 40% of the company's revenue comes from exports, 15% from Coal India Ltd., 17% from mining companies, 18% from the infrastructure segment and 9% from defence. The company is extensively focussing on the defence segment and has submitted a price bid for the multi-barrel rocket launcher Pinaka.

The company's operating margin in Oct-Dec improved to 24.33% from 22.13% a year ago.

"While domestic demand has been subdued due to the general and state elections in many parts and the heavy monsoon season, our long-term growth trajectory remains robust, driven by our strategic diversification. Our international business has delivered exceptional third-quarter performance," Managing Director and Chief Executive Officer Manish Nuwal said in a statement.

Solar Industries' international business grew 21% on year to INR 7.58 billion in Oct-Dec.

The company has signed an initial agreement with Maharashtra to establish an anchor mega project and will invest INR 127 billion in the next 10 years, Nuwal said.

Total expenses for the company, which is one of the major explosives suppliers for Coal India, increased nearly 34% on year to INR 15.24 billion, primarily on account of an uptick in raw material costs and employee benefit expenses.

The cost of raw materials consumed rose over 39% on year to INR 8.85 billion, while employee benefit expenses increased 35% on year to INR 1.51 billion.

During the nine months ended December, Solar Industries partially redeemed 150 non-convertible debentures, amounting to a total of INR 150 million and made an interest payment amounting to INR 18.6 million at a coupon rate of 8.2% per annum. Another 876 NCDs, amounting to INR 87.5 million were also partially redeemed at an interest outgo of INR 19.9 million at a coupon rate of 8.31% per annum.

As of December-end, the outstanding NCD amounted to INR 462.5 million.

Finance costs of the company rose nearly 8% on year to INR 305.1 million in Oct-Dec and depreciation and amortisation expenses rose by nearly 23% on year to INR 474.2 million.

During Apr-Dec, the company's consolidated revenue grew nearly 21% on year to INR 53.74 billion and net profit grew nearly 48% on year to INR 8.87 billion.

Shares of Solar Industries closed 1.0% lower at INR 9,653.75 on the National Stock Exchange. The company announced its results during market hours. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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