Solar Industries - Q1FY22 First Cut - ICICI Direct

(CMP: Rs. 1627 MCap: Rs. 14723 crore)

Solar Industries registered robust performance with strong growth in realization as well as volumes. Export & Overseas & Housing Infra were the key segments that added thrust to the overall performance.

Q1FY22 Earnings Summary

- Revenue for the quarter came in at Rs. 825.2 crore, up 68% YoY & 4% QoQ

- Explosives volume rose 45% YoY whereas realisations jumped 20% YoY, as a result, overall explosives segment revenue leaped 74% YoY to Rs. 419 crore

- Accessories segment registered an improvement of 57% YoY to Rs. 96 crore, however was down QoQ by 14%

- Defence segment revenue came in at Rs. 46.7 crore, up 99% YoY & 139% QoQ, albeit on a lower base

- Gross margins contracted ~ 197 bps YoY & 171 bps QoQ on account of higher input costs. Nonetheless, positive operating leverage aided EBIDTA margins which came in at 21.2% vs 18.7% YoY & 20.8% QoQ. Solar posted an EBIDTA of Rs. 174.7 crore, up 90% YoY & 6.2% QoQ

- Solar posted a PAT (Post Minority interest) of Rs. 97.5 crore in Q1FY22 vs Rs. 91 crore in Q4Y21 & Rs. 42.1 crore in Q1FY21

- Current order book of Solar Industries stands at Rs. 1704 crore, whereas the capex made during the quarter stood at Rs. 65.2 crore

Shares of SOLAR INDUSTRIES INDIA LTD. was last trading in BSE at Rs. 1703.45 as compared to the previous close of Rs. 1627.05. The total number of shares traded during the day was 16922 in over 1704 trades.

The stock hit an intraday high of Rs. 1728.95 and intraday low of 1651.05. The net turnover during the day was Rs. 29013758.

Source : Equity Bulls

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