Solar Industries India (SOLARINDS) Q4 14/15 earnings summary

Executive summary

• FY 2014-15 consolidated revenue from operations reached ₹1,462.86 Cr, up 19.54% YoY; PAT after minority interest rose 24.46% to ₹147.41 Cr.

• Cartridges and bulk explosives led growth; overseas operations in Nigeria, Zambia and Turkey performed well, while defence orders began contributing.

• Standalone results were also higher: turnover ₹1,116.85 Cr, up 13.33%, and PAT ₹107.92 Cr versus ₹83.84 Cr in FY 2013-14.

Financial highlights

• Consolidated EBITDA/PBIDT was ₹261.92 Cr versus ₹214.14 Cr YoY; EBITDA margin was 19.47%, up 45 bps.

• Consolidated EPS increased to ₹81.45 from ₹65.44; standalone EPS was ₹59.63 versus ₹46.33.

• Consolidated operating revenue after excise/service tax was ₹1,351.89 Cr; export and overseas sales were 27% of total sales.

• Consolidated net worth rose to ₹775.88 Cr from ₹661.57 Cr; standalone net worth reached ₹523.60 Cr from ₹455.59 Cr.

Outlook and guidance

• FY 2015-16 outlook was positive, based on expected improvement in mining, infrastructure and construction, and a domestic policy focus on project clearances and investment.

• Coal production targets, infrastructure spending and housing initiatives were expected to support explosives demand; land acquisition and clearances could delay private mining and infrastructure projects.

• Defence procurement and Make in India initiatives were viewed as growth opportunities; investment in technology and new products was intended to support defence growth and operating efficiency.

• Overseas capacity and product expansion continued, with plans to extend operations across Central, Western and Southern Africa and nearby markets to Turkey.