Solar Industries India (SOLARINDS) Q4 11/12 earnings summary

Executive summary

• Record FY12 consolidated gross revenue Rs1,031.69 crore, up 42.45% YoY; EBITDA Rs194.68 crore, up 31.56%; profit attributable to shareholders Rs101.20 crore, up 33.87%.

• Growth came despite weak Indian economic and mining conditions, supported by market-share gains, higher domestic output, exports and overseas operations.

Financial highlights

• Consolidated net turnover after excise was Rs967.57 crore; profit before tax was Rs153.96 crore after exceptional items, versus Rs128.05 crore in FY11.

• Standalone revenue rose 36.42% to Rs778.21 crore; EBITDA increased 17.78% to Rs110.47 crore and PAT rose 21.06% to Rs60.89 crore.

• Consolidated net worth increased to Rs404.60 crore from Rs316.04 crore; EPS was Rs58.42 versus Rs43.64 in FY11.

Outlook and guidance

• Q1 FY13 order book was described as encouraging; management expected progress in FY13, while noting it was early in the year.

• Growth priorities included product development, closer customer engagement and expansion in fast-growing economies; infrastructure and coal-sector investment were seen as demand catalysts.

• Zambia expansion plans added 10,000 TPA bulk capacity to existing 10,000 TPA and included a 5,000 TPA cartridge unit; Turkey facility construction continued.