The shares of the industrial explosives manufacturer fell up to 18 percent after the fire and explosion incident took place in the company’s factory situated at Katepally Village, Telangana.
Price Movement
With a market capitalization of Rs 2,196.68 crore, the shares of Premier Explosives Ltd were trading at Rs 408.60 per share, decreasing around 12.63 percent as compared to the previous closing price of Rs 467.65 apiece.
Reason for Fall
The shares of Premier Explosives Ltd have seen positive movement after a tragic fire and explosion at its factory in Katepally Village, Telangana. The incident resulted in three fatalities and left six others injured, who were promptly hospitalized for treatment.
Additionally, the fire and explosion caused damage to the building and machinery, which are adequately insured. The company is currently assessing the actual extent of the loss incurred due to the incident and will take appropriate steps based on the findings.
Financial Growth
Looking forward to the company’s financial performance, revenue magnified by 272 percent from Rs 44.56 crore in Q3FY24 to Rs 165.92 crore in Q3FY25, Further, during the same time frame, net profit zoomed by 450 percent from Rs 1.67 crore to Rs 9.19 crore.
Also read: Defence stock jumps after securing ₹18 Cr order from BEL for manufacturing project
Business Overview
Premier Explosives Ltd operates DRDO-linked solid propellant plants and has 7 facilities across 4 states. With 850+ staff and 100 engineers/scientists, 85 percent of revenue in 9MFY25 came from defence and space, 15 percent from bulk explosives.
Geographic presence
Premier Explosives Ltd caters to the mining and infrastructure industries with key domestic clients like Coal India, MOIL, SCCL, and Neyveli Lignite. It has a strong international footprint, exporting products to countries including Israel, Greece, Jordan, Turkey, Nepal, Thailand, the Philippines, Indonesia, Djibouti, and others.
Company Overview
Premier Explosives Limited is an India-based company that is primarily engaged in the manufacture of high-energy materials and allied products for the defense, space, mining, and infrastructure industries. The Company’s geographical segments include India and the Rest of the world.
Written by Abhishek Singh
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