Solar Industries India (SOLARINDS) Q4 12/13 earnings summary

Executive summary

• FY13 delivered revenue growth of 17.79% and PAT growth of 14.91% despite weak economic and mining conditions; domestic market share rose to ~30%.

• Capacity expansion, overseas plants and defence products were key growth initiatives; Coal India orders secured a three-year order book of ₹1,112.25 crore.

Financial highlights

• Consolidated revenue was ₹1,215.20 crore, up 17.79% YoY; PAT after minority interest was ₹116.29 crore, up 14.91%.

• EBITDA was ₹210.01 crore versus ₹194.68 crore; cash profit was ₹143.41 crore versus ₹124.19 crore.

• Net worth increased to ₹572.70 crore from ₹404.60 crore; gross block rose to ₹572.70 crore from ₹436.77 crore.

• Exports increased 36% to ₹89.55 crore; domestic production rose 17.79% to 189,682 tonnes.

Outlook and guidance

• Three-year order book secured at ₹1,112.25 crore after winning 26.43% of Coal India’s tender; Coal India remained the largest customer and supplier relationship.

• Turkey ANFO production commenced June 20, 2013; Zambia cartridge and detonator facilities were targeted to start in H1 FY14.

• Propellant products were planned for trials in Q4 FY14 and HMX-related products in Q2 FY14; facilities and R&D were under development.

• Capacity plans included bulk explosives plants across Indian states, a PETN process intended to double production capacity, and expansion into defence products.