Solar Industries India (SOLARINDS) Q4 10/11 earnings summary

Executive summary

• FY 2010-11 consolidated gross turnover rose 22.48% YoY, EBITDA increased 32.57%, and PAT after minority interest advanced 29.02%; growth reflected domestic and overseas penetration and operating efficiencies.

• Expansion priorities include overseas manufacturing, electronic detonators, defence products, and coal mining, alongside capacity growth and a broader value-added portfolio.

Financial highlights

• Consolidated gross turnover was Rs. 72,285.81 lakh vs Rs. 59,019.32 lakh; total income was Rs. 70,646.85 lakh vs Rs. 58,340.17 lakh.

• Consolidated EBITDA was Rs. 14,847.28 lakh, up 32.57%; PBT was Rs. 12,805.22 lakh, up 41.04%; PAT after minority interest was Rs. 7,559.66 lakh, up 29.02%.

• Consolidated basic EPS increased to Rs. 43.64 from Rs. 33.82; standalone turnover was Rs. 56,767.45 lakh and standalone PAT Rs. 5,029.35 lakh.

Outlook and guidance

• Management expected growth above general economic growth, citing infrastructure investment and continued focus on operational efficiency and market leadership.

• Zambia's 10,000-tonne bulk explosives plant began operations; Nigeria's cartridge plant was commissioned, with commercial production expected soon; Turkey manufacturing JV preparations included land acquisition.

• Bhatgaon coal block, with ~80 million MT reserves, was expected to become operational in a couple of years; Madanpur's 36 million MT block remained subject to environmental clearance.

• Product development priorities included electronic detonators, bulk delivery systems for tunnelling and underground work, and defence products; Microdet electronic detonators had entered the market.