Last Updated on November 8, 2023 by BFSLTeam BFSLTeam
On 2 November 2023: Solar Industries India Ltd. (BSE, NSE: SOLARINDS) announced its Q2 2023-24 financial results, reporting its highest-ever quarterly EBITDA and PAT Margins.
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- In Q2, the company has registered its highest-ever quarterly EBITDA Margin at 25.52%.
- In Q2, the company has also recorded its highest-ever quarterly PBT Margin at 25.52%.
- The company has registered its highest-ever second quarterly EBITDA and PBT at ₹344 Cr and ₹285 Cr, respectively.
- In Q2, the company successfully completed the Pinaka Trials.
- The company also recorded the highest CIL order received in Q2.
Also Read: Solar Industries India Share Price
Enhancement in Orders for Q2
Q2 has witnessed the success of the company in receiving prestigious orders, boosting the order book:
- The company received orders from Coal India Ltd. These amounted to ₹1800+.
- With a robust order book of ₹3912 Cr, the company’s management expects a higher volume growth (20%) in the remaining part of the fiscal year.
- As the Pinaka final trials have been concluded in Q2, the company has floated RFPs and estimates that orders will be received at an early date.
Additional Read: Q2 Results Dashboard
Management Commentary
The MD and CEO of Solar Industries India Ltd. Manish Nuwal had some insights on the results and these are shared below:
- The revenue for Q2 stands at ₹1347 Cr.
- Overall margins have witnessed significant improvement, both on a sequential and YoY basis.
- The improvement is largely due to operational efficiency and continuous efforts of the company.
- EBITDA and PBT Margins are at an all-time high in Q2, possibly due to stable currency movements and a drop in commodity prices during the quarter.
- The order book of the company is predicted to improve, given the government’s focus on infrastructure development and the demand for urban housing.
- On account of the geopolitical situation and a robust order book, it is believed that defence revenues should increase substantially.
- In terms of the international business areas of the company, the geopolitical situation, high interest rates, volatility in forex, moderate prices of raw materials, and hyperinflation may cause challenges shortly.
Financial Results Of Solar Industries India
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q1 FY 2023-24 | Q2 FY 2023-24 | Q2 FY 2022-23 | Change % |
| Net Sales | 1682.21 | 1347.46 | 1566.60 | (14%) |
| EBITDA | 331.31 | 343.87 | 303.34 | 13% |
| Profit Before Tax | 272.44 | 284.53 | 253.51 | 12% |
| Profit After Tax | 201.59 | 208.99 | 188.62 | 11% |
About Solar Industries India Ltd.
Solar Industries Ltd. has earned its pride of place as one of the global leaders in the manufacture of initiating systems and explosives. It is currently a famous explosives company on the international stage. The company has a pan-India presence with 35 manufacturing units across the country, and an international footprint boasting around 75 countries. The company also has 8 manufacturing centres overseas.
Solar Industries Ltd. is the first Indian company in the private sector to establish integrated units for Defence products. The company, in its product line, includes the making of Rocket Propellants, High Energy Materials, and Rocket Warheads. It also has the distinction of being the first company to manufacture Pinaka rockets. Additionally, with the Defence sector forming a large part of its client base, it is the first company of its kind to provide the sector with ready-to-use ammunition. The company also manufactures Drone-centric Loitering munitions for the Defence Sector. Over the last two decades or so, the company has made significant strides in progress, given challenging economic conditions. With radical business development as its mantra, the company is prepared for a future of expansion and more progress.
Source:
Financial – Solar Industries India Limited (solargroup.com)
