Solar Industries - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 1187 MCap: Rs. 10745 crore)

Solar Industries reported a commendable performance for Q3FY21 led by strong performance in Exports & overseas business and Housing Infra segments.

Q3FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 645.9 crore, up 15.1% YoY.

- Explosives volume remained flat YoY coming in at 86265 MT. Further realisation too remained flat at Rs. 32304 crore. Overall explosives segment registered a revenue of Rs. 279 crore

- Accessories segment registered an improvement of 24% YoY to Rs. 92 crore.

- Defence segment revenue came in at Rs. 22.92 crore, down 11% YoY. Nevertheless, the company expects defence deliveries to improve from Q4 with start of commercial production of hand grenade.

- Overall contribution of sales improved in Exports & Housing Infra segments

- Gross margins contracted ~84 bps YoY on account of higher input costs. Solar posted an EBIDTA of Rs. 132.2 crore, up 16.7 % YoY with an entailing margin of 20.5% vs 20.2% YoY

- Solar posted a PAT (Post Minority interest) of Rs. 78 crore in Q3FY21 vs 61.98 crore in Q3FY20

- Current order book of Solar Industries stands at Rs. 1635 crore.

Coal India Rs. 535 crore
SCCL Rs. 422 crore
Defence Rs. 678 crore

- The Board of directors has also approved a significant expansion of manufacturing capacity of packaged explosives. The company is planning to set up three greenfield packaged explosive plants to increase its geographical reach

Shares of SOLAR INDUSTRIES INDIA LTD. was last trading in BSE at Rs.1186.05 as compared to the previous close of Rs. 1179.85. The total number of shares traded during the day was 477 in over 102 trades.

The stock hit an intraday high of Rs. 1188 and intraday low of 1171.95. The net turnover during the day was Rs. 564625.

Source : Equity Bulls

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