- Quarterly Profit: INR243 crore
- Yearly Profit: INR875 crore
- Quarterly Turnover: INR1,611 crore
- Yearly Turnover: INR6,070 crore
- Quarterly EBITDA: INR371 crore
- Yearly EBITDA: INR1,414 crore
- Defense Annual Revenue: INR500 crore+
- Defense Order Book: INR2,600 crore
- Domestic Explosives Volume Growth (Quarter): 24%
- Domestic Explosives Volume Growth (Year): 20%
- CapEx Plans for FY25: INR800 crore
- Proposed Dividend: INR8.5 per share
- Quarterly Revenue: INR1,611 crore vs. INR1,929 crore (YoY)
- Yearly Revenue: INR6,070 crore vs. INR6,923 crore (YoY)
- Quarterly Explosives Volume Growth: 24%
- Yearly Explosives Volume Growth: 20%
- Quarterly Initiating Systems Revenue Growth: 7%
- Yearly Initiating Systems Revenue Growth: 13%
- Quarterly Raw Material Costs: INR830 crore vs. INR1,191 crore (YoY)
- Yearly Raw Material Costs: INR3,196 crore vs. INR4,342 crore (YoY)
- Quarterly Employee Cost: INR119 crore vs. INR99 crore (YoY)
- Yearly Employee Cost: INR434 crore vs. INR353 crore (YoY)
- Quarterly Other Expenses: INR309 crore vs. INR281 crore (YoY)
- Yearly Other Expenses: INR1,071 crore vs. INR939 crore (YoY)
- Quarterly EBITDA Margin: 23.06% vs. 19.12% (YoY)
- Yearly EBITDA Margin: 23.29% vs. 19.07% (YoY)
- Quarterly Depreciation Costs: INR37 crore vs. INR35 crore (YoY)
- Yearly Depreciation Costs: INR143 crore vs. INR128 crore (YoY)
- Quarterly Interest and Finance Charges: INR32 crore
- Yearly Interest and Finance Charges: INR109 crore vs. INR90 crore (YoY)
- Quarterly PBT: INR305 crore vs. INR302 crore (YoY)
- Yearly PBT: INR1,161 crore vs. INR1,102 crore (YoY)
- Quarterly PBT Margin: 18.96% vs. 15.66% (YoY)
- Yearly PBT Margin: 19.13% vs. 15.91% (YoY)
- Quarterly PAT: INR243 crore vs. INR221 crore (YoY)
- Yearly PAT: INR875 crore vs. INR811 crore (YoY)
- Quarterly PAT Margin: 15.07% vs. 11.44% (YoY)
- Yearly PAT Margin: 14.42% vs. 11.72% (YoY)
Release Date: May 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Achieved highest-ever quarterly and yearly profit at INR243 crore and INR875 crore, respectively.
- Turnover for the year stood at INR6,070 crore, reflecting strong performance.
- Defense annual revenue crossed INR500 crore for the first time.
- Domestic explosives volume grew significantly by 24% in the quarter and 20% for the year.
- Proposed a dividend of INR8.5 per share, up from INR8 in the previous year.
Negative Points
- Revenue loss of around INR900 crore for the year due to currency fluctuations and hyperinflation.
- EBITDA losses of INR150 crore for the year compared to the previous year.
- Defense revenue was lower than the annual guidance.
- International business faced challenges due to hyperinflation and currency depreciation in key markets like Turkey and Nigeria.
- Employee costs and other expenses increased significantly year-on-year.
Q & A Highlights
Highlights from Solar Industries India Ltd (BOM:532725, Financial) Q4 FY24 Earnings Call
Q: Can you provide more details on the losses due to currency fluctuation and hyperinflation?
A: We reported a translation loss of INR900 crore due to significant currency depreciation in Turkey (62%) and Nigeria (over 100%). However, at the local level, we are making profits and the business is growing. (Shalinee Mandhana, Joint CFO)
Q: What is the volume of business done across Turkey and Nigeria for FY24 versus FY23?
A: We do not declare country-specific data, but overall, we have seen similar volume growth internationally, around 10% to 15% ROCE. (Shalinee Mandhana, Joint CFO)
Q: What is the guidance for FY25 in terms of volume growth for both domestic and international markets?
A: We expect a 15% volume growth in the domestic market and around 10% to 15% internationally. (Manish Nuwal, CEO & MD)
Q: Can you provide an update on the Pinaka order and other large defense orders expected?
A: The Pinaka order is in the final stages of approval. We are also expecting large orders in other defense product categories, including export orders. (Manish Nuwal, CEO & MD)
Q: What is the outlook for ammonium nitrate prices and realizations for FY25?
A: We believe current prices are reasonable and sustainable. Prices should remain stable unless there are significant disruptions in supply or geopolitical issues. (Manish Nuwal, CEO & MD)
Q: Can you provide details on the new anti-drone product, Bhargavastra, and its development timeline?
A: We are investing in developing new technologies, including anti-drone systems. The product is in the pipeline, and we will share details once it is qualified. (Manish Nuwal, CEO & MD)
Q: What is the expected CapEx for FY25, and how will it be allocated?
A: We plan a CapEx of around INR800 crore for FY25, with INR400 crore allocated to defense and INR400 crore to explosives. (Manish Nuwal, CEO & MD)
Q: What is the long-term growth outlook for the company, and how does it compare to the current year's guidance?
A: We expect a 15% volume growth in the core explosives business and a threefold increase in defense revenue for FY25. Long-term, we aim for a compounded volume growth of 15% and a bottom-line growth of 20%. (Manish Nuwal, CEO & MD)
Q: How has the performance been in key overseas markets like Australia, Indonesia, and South Africa?
A: Despite challenges, our international business has performed well. We expect improved numbers in FY25, particularly in South Africa and Australia. (Manish Nuwal, CEO & MD)
Q: What is the market size of explosives in India for FY24, and what is Solar Industries' market share?
A: The industry has grown around 7% to 8%. We will provide detailed calculations later. (Manish Nuwal, CEO & MD)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
