Defence stock that deals in the business of manufacturing bulk and cartridge explosives, detonating cords, detonators, and components in India for sectors like mining, construction, and infrastructure was down 6 percent after sales volume guidance got cut down to 8-10% growth and the announcement of Q3FY25 results .
Price Movement
Solar Industries India Limited‘s stock in Thursday’s session touched a day’s low of Rs. 9,020 per share down by 6.50 percent. The stock reiterated from the day’s low and was trading at Rs. 9,227.80 which is 4.35 percent lower than the previous closing price of Rs. 9,647.75. The stock has delivered a return of around 37 percent in the past year and has outperformed the Nifty Index in the same period.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 1,973.08 crore which increased by 38.06 percent year on year, from Rs. 1,429.14 crore in Q3FY24 and a 15 percent increase from Rs. 1,715.83 crore in Q2FY25.
Their net profit increased by 52.06 percent year on year, from Rs. 221.94 crores in Q3FY24 to Rs. 337.50 crores in Q3FY25. Quarterly, the profits increased by 11.10 percent from Rs. 303.78 crore.
The EBITDA margins stood at 27.17 percent in Q3FY25 and saw a 148 bps increase from 25.69 percent in Q3FY24. For the same period, PAT margins stood at 17.11 percent and jumped 158 bps increase from 15.53 percent.
Business Segment & Guidance Update
Post results, the management provided an update on the sales volume guidance for FY25. Earlier it was expected to grow by 15 percent, which was reduced to within a range of 8 to 10 percent for FY25. It recognizes its revenue from Explosives, its accessories, and related services as its sole segment.
Management Commentary
The MD and CEO of Solar Industries India, Manish Nuwal said “While domestic demand has been subdued due to the general & state elections in many parts and heavy monsoon season, our long-term growth trajectory remains robust, driven by our strategic diversification. Our international business has delivered exceptional third-quarter performance, grew 21% year-on-year, and reached best ever 758cr in revenue.“
Recent Developments
Solar Industries has signed a MoU with the Maharashtra Government to invest Rs. 12,700 crore in the next 10 years to establish an Anchor Mega Project. Recently, they received approval from the Cabinet Committee on Security of the supply of Pinaka Enhanced Range rockets to the Indian Armed Forces.
Company Overview
Solar Industries India Ltd. was founded in 1995. It is a global explosives company manufacturing industrial and military explosives and initiating devices. They serve the industries such as mining, infrastructure, and defence with products and blasting solutions.
Written by Santhosh S
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