Solar Industries FY17 Net Profit rises 13% to Rs 185.44 cr

Declares final dividend of 150% or Rs 3/share of the face value of Rs 2 each
Nagpur, May 29, 2017: Solar Industries India Ltd., the largest manufacturer, supplier and exporter of Industrial Explosives and Initiating Systems in India, has declared its financial results for the quarter and year ended March 31, 2017.

Commenting on the financial performance of the company Mr. Manish Nuwal, Managing Director & CEO, Solar Industries India Limited said, “We are happy to announce that our company’s growth rate once again surpassed the industry growth rate. The explosives industry increased by about 5% in volume terms whereas our explosives volume grew by 13%”.

Further commenting about the challenges the company faced during the fiscal year 2017, he added that “There was a decline in the price of Ammonium Nitrate which resulted in fall in the realization of finished goods whose impact is around Rs.60 Crores. On the macroeconomic level, issues such as demonetization slowed down the industry growth. We faced translational currency fluctuation losses of Rs. 117 core in our overseas subsidiaries. Despite of these challenges, we posted a topline growth of 9% and PAT growth of 13.31%.”

Solar is the only explosives company based out of India to have manufacturing units in Turkey, South Africa, Nigeria, and Zambia.

“We are enhancing our global footprints and now have started the commercial production in South Africa. The demand in overseas market is showing signs of improvement and there is a boost in the India’s infrastructure segment, which is beneficial for us,” Mr Nuwal added.

Solar received another Rs. 40 crores orders from the Defence Sector. “This fiscal was quite eventful in terms defence-related item production. The ‘Strategic Partnership Program’ and DPP 2016 guidelines is expected to give fillip boost to indigenous manufacturers, and Solar is hopeful to tap any such opportunities,” he said.

Solar expects that the Strategic Partnership Program will provide big boost to this sector.

“In March 2017, the government floated RFP’s for procurement of eight types of ammunition items like large caliber gun propellants, tank ammunition, artillery fuzes, rockets and gun ammunition. We intend to participate in these tender processes,” Mr Nuwal further added.

The Board of Directors of the company has recommended a final dividend of 150% or Rs 3 per equity share of the face value of Rs 2 each. For the full year it amounts to Rs.5 or 250% which amounts to Rs. 55.5 crores at 30% of the profit after tax.