Solar Industries India (SOLARINDS) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 474 crore and PAT of INR 301 crore in Q1 FY25, with turnover at INR 1,695 crore, up 5% sequentially from Q4 FY24.

• EBITDA and PAT margins reached all-time highs at 28% and 18%, respectively.

• Domestic explosives volume grew 16% year-over-year, aligning with annual guidance.

• Defense revenue rose 32% year-over-year to INR 204 crore, with strong order book and new product deliveries.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors, with no material misstatements identified.

Financial highlights

• Revenue for Q1 FY25 was INR 1,695 crore, up from INR 1,682 crore year-over-year.

• EBITDA increased 43% year-over-year to INR 474 crore.

• PBT rose 50% year-over-year to INR 408 crore; PAT up 49% to INR 301 crore.

• Export and overseas revenue at INR 579 crore, representing 34% of total revenue.

• Basic and diluted EPS (consolidated) for the quarter was ₹31.66, up from ₹25.98 in the previous quarter and ₹21.82 year-over-year.

Outlook and guidance

• Defense revenue guidance for FY25 set at INR 1,500 crore, with expectations to comfortably achieve this.

• EBITDA margin guidance for FY25 raised to around 25%, up from previous 23%+.

• Acquisition of 73.99% stake in Problast BS Pty (LLP), South Africa, expected to complete by December 2025, indicating expansion plans.

• Anticipates continued growth in defense, infrastructure, and international markets.

• No major fluctuations expected in ammonium nitrate prices.