Solar Industries India (SOLARINDS) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly and half-yearly EBITDA and PAT, with 27% year-on-year revenue growth in Q2 FY25 and PAT growth of 45% for the quarter and 47% for the half-year.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board and reviewed by auditors.

• The group operates primarily in the 'Explosives, Accessories and related services' segment.

• Defense segment revenue grew 204% year-on-year, now comprising 19% of the sales basket, nearing the 20% annual guidance.

• International business and defense drove growth despite subdued domestic demand due to elections and heavy monsoon.

Financial highlights

• Q2 consolidated revenue: INR 1,716 crores (up from INR 1,347 crores); H1 revenue: INR 3,401 crores (up from INR 3,030 crores).

• Q2 EBITDA: INR 475 crores (margin 27.7%, up from 25.52%); H1 EBITDA: INR 949 crores (margin 27.9%, up from 22.29%).

• Q2 PAT: INR 304 crores (margin 17.7%, up from 15.51%); H1 PAT: INR 604 crores (margin 17.77%, up from 13.55%).

• Q2FY25 PBT increased 43% year-over-year to ₹407 crore; HYFY25 PBT up 46% year-over-year to ₹815 crore.

• Basic and diluted EPS for H1 FY25 was ₹63.25, up from ₹43.93 in H1 FY24.

Outlook and guidance

• Order book stands at over INR 5,700 crores, indicating strong future revenue visibility.

• Defense product sales expected to reach INR 1,500 crores in FY25, with defense at 20% of total sales.

• Capex guidance for FY25 revised upward from INR 800 crores to INR 1,200 crores, with expectations of continued elevated Capex in coming years.

• EBITDA margin guidance raised to 25%+ for the foreseeable future.

• Results have been prepared in accordance with Ind AS 34 and reviewed by statutory auditors.