Solar Industries India (SOLARINDS) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated revenue reached Rs 32,104.49 lakh, up 36.30% YoY; net profit rose 87.95% to Rs 3,611.78 lakh.

• Standalone revenue was Rs 18,850.65 lakh, up 38.81%; PAT increased 74.11% to Rs 1,801.97 lakh.

• Growth reflected stronger demand for small-diameter explosives and detonators, higher exports, increased productivity and cost control.

Financial highlights

• Consolidated PBT was Rs 5,493.01 lakh vs Rs 2,788.15 lakh; PAT was Rs 3,611.78 lakh vs Rs 1,921.62 lakh in FY07.

• Consolidated total operating income was Rs 28,095.77 lakh, up 36.30%; operating profit was Rs 5,931.76 lakh, up 99.55%.

• Consolidated EBITDA was Rs 7,100.54 lakh vs Rs 3,916.68 lakh; EPS was Rs 20.85 vs Rs 11.09.

• Standalone PBT was Rs 2,787.04 lakh vs Rs 1,389.69 lakh; PAT was Rs 1,801.97 lakh vs Rs 1,034.91 lakh.

Outlook and guidance

• Domestic explosives demand was expected to grow ~10% p.a. during the 11th Plan, with bulk explosives the main growth driver.

• Growth plans center on expanding bulk-explosive plants at strategic mining locations and overseas joint ventures, particularly in Africa.

• Coal mining operations through Navbharat Coalfields were expected to begin within two years; the 36-million-ton coal allotment was expected to add shareholder value.

• Management expected MICRODET and SOLARPRIDE to contribute to future business; both products had received relevant regulatory/major-customer approvals.