Solar Industries Q3 earnings: Defence firm logs highest revenue, EBITDA; stock ends higher

Shares of Solar Industries rose 5% on Tuesday after the explosives maker reported its highest ever quarterly EBITDA and revenue of Rs 733 crore and Rs 2548 crore, respectively. The stock ended 5.01% higher at Rs 13,868 on Tuesday against the previous close of Rs 13,197. Market cap of the explosives firm rose to Rs 1.25 lakh crore. Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 28.75 crore. 

In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 53.6, signaling the stock is trading neither in the overbought nor in the oversold zone.

Solar Industries India shares are trading higher than the 10 day, 20 day, 50 day and 100 day but lower than the 150 day and 200 day simple moving averages.

Net profit rose 38% to Rs 467 crore in Q3 against Rs 338 crore in the year ago period. Revenue climbed 29% to Rs 2548 crore in the last quarter against Rs 1973 crore in the corresponding quarter of the previous fiscal. 

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose 37% to Rs 733 crore from Rs 536 crore in Q3 of the previous fiscal. EBITDA margin improved by 160 bps to 28.77% in Q3 27.17% in the previous year's Q3.

The company said it logged highest ever orderbook of Rs 21,000 crore above.

Manish Nuwal, Managing Director & CEO of Solar Industries India said, "Solar’s defence business evidenced a record-breaking order book of Rs  21000 crore plus, and showed splendid growth of 72% by hitting revenue of Rs 700crore plus in the quarter. This growth reflects our capabilities to convert aspirational goals to manufacturing reality in this sector."

Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.