Solar Industries India (SOLARINDS) Q4 08/09 earnings summary

Executive summary

• FY09 consolidated turnover reached Rs 53,037.94 lakh, up 65.2% YoY; net profit rose 22.2% to Rs 4,413.63 lakh.

• Growth reflected product mix and operational efficiencies, while exports rose 266.61%; foreign-exchange volatility weighed on results.

Financial highlights

• Consolidated PBIDT increased 34.83% to Rs 9,573.33 lakh; PBT rose 20.21% to Rs 6,603 lakh.

• Consolidated PAT was Rs 4,413.63 lakh versus Rs 3,611.78 lakh; EPS increased to Rs 25.48 from Rs 20.85.

• Consolidated net sales after excise were Rs 48,779.13 lakh; total income was Rs 51,378.22 lakh, versus Rs 28,095.77 lakh and Rs 29,264.95 lakh, respectively.

• Standalone PAT was Rs 2,520.46 lakh versus Rs 1,801.97 lakh; standalone EPS was Rs 14.55 versus Rs 10.40.

• FY08 comparisons are affected by the 1 Apr 2008 amalgamation of Solar Explosives, Solar Capitals and Solar Industries; prior-year standalone figures represent Solar Explosives alone.

Outlook and guidance

• Management expected Indian GDP growth above 7% in FY10 and explosive demand growth of ~10% annually during the 11th Plan period.

• Infrastructure investment under the 11th Plan was expected to exceed US$500bn; power, roads, mining and coal expansion were identified as demand drivers.

• Navbharat Coalfields’ 36m MT Madanpur coal allocation was expected to enter mining in 2010; two Bhatgaon blocks carry 80m tonnes of geological reserves.

• African projects were delayed by statutory clearances and land acquisition; project implementation was expected to begin after clearances during FY10.

• Dust suppressant chemical Solar Pride had gained acceptance in Coal India subsidiaries; commercial sales were expected to build, particularly in dusty mines.