Solar Industries India (SOLARINDS) Q4 09/10 earnings summary

Executive summary

• FY10 consolidated revenue rose to Rs. 59,019.31 lacs from Rs. 53,037.94 lacs; PAT increased to Rs. 5,859.37 lacs from Rs. 4,413.63 lacs.

• EBITDA reached Rs. 11,199.78 lacs, up 16.98% YoY; EPS rose to Rs. 33.82 from Rs. 25.48.

• Growth was supported by mining and infrastructure demand; export contribution declined to 12% from 13.62% amid the global downturn.

Financial highlights

• Consolidated total income was Rs. 58,340.17 lacs vs. Rs. 51,378.22 lacs; PBT was Rs. 9,078.84 lacs vs. Rs. 6,603.00 lacs.

• Consolidated operating expenses rose to Rs. 47,140.39 lacs from Rs. 41,804.89 lacs; interest and finance charges fell to Rs. 1,335.98 lacs from Rs. 2,348.49 lacs.

• Standalone turnover was Rs. 50,185.51 lacs vs. Rs. 45,631.44 lacs; PAT reached Rs. 3,126.52 lacs vs. Rs. 2,520.46 lacs.

• Consolidated operating cash flow was Rs. 4,219.47 lacs vs. Rs. 10,064.36 lacs; cash and cash equivalents rose to Rs. 9,397.82 lacs from Rs. 7,293.85 lacs.

Outlook and guidance

• Recovery in global mining and infrastructure-led domestic demand was expected to sustain demand for mining explosives; India coal demand was projected at 700 MT by FY12.

• Overseas exports were expected to improve as economies recovered; Zambia completed trial production in April 2010, while Tanzania and Nigeria plants were expected to start by January 2011 and October 2010.

• Cement capacity additions of 43.2 mtpa were expected from January 2010 to March 2011, supporting the outlook for explosives used in mining and construction.