Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>3QFY21 Result Update</p>
<h2>Solar Industries India</h2>
<h3>Healthy performance; brighter outlook; Retain Buy </h3>
<p>Solar Industries India (SIIL) reported 3QFY21 consolidated revenue of Rs6.5bn, up 15% YoY and 6%/7% above our/consensus estimate. Topline growth was aided by 27% YoY growth each in Housing and Infra segments (Rs1.7bn sales) and exports &amp; overseas markets (Rs2.8bn sales). Sales to Coal India (CIL) grew 9% YoY to Rs979mn, but was offset by 9% YoY decline in institutional (non-CIL miners) sales at…</p>

<p>2QFY21 Result Update</p>
<h2>Solar Industries India</h2>
<h3>Defence and overseas markets to drive growth; Retain Buy</h3>
<p>Solar Industries India (SIIL) reported 2QFY21 consolidated revenue of Rs5.9bn, up 16% YoY and 24% above our estimate. Topline growth was on account of strong business recovery across all geographies. Sales of domestic explosives grew 3% YoY to Rs2.2bn due to 9% YoY rise in volume (at 69,194MT vs. 63,611 MT) while realization fell by 6% YoY (Rs32,074/MT vs. Rs34,015/MT). Customer-wise, sales to…</p>

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<p>1QFY21 Result Update</p>
<h2>Solar Industries India</h2>
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<h3>Defence and overseas scale-up likely; Upgrade to Buy</h3>
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<p>Solar Industries India (SIIL) reported consolidated revenue of Rs4.9bn in 1QFY21, down 21% YoY. Though sales were affected due to severe lockdowns in April and May 2020, June sales were better on YoY basis. Sales to Coal India fell 10% YoY to Rs985mn due to 12% YoY decline in coal production as mining and construction activities were muted. Housing &amp; Infrastructure segment sales fell 49%…</p>
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<p>4QFY20 Result Update</p>
<h2>Solar Industries India</h2>
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<p><strong>Temporary blip in growth, 4Q margin an aberration</strong></p>
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<p>Solar Industries India (SIIL) reported consolidated revenue of Rs5.5bn in 4QFY20, down 19% YoY, as sales worth Rs1bn were deferred due to lockdown. The topline was 7% above our estimate but 15% below consensus. In the domestic market, growth was impacted by heavy monsoons extending in Jan 2020 and lockdown restrictions, affecting mining and construction activities. Thus, Housing &amp;amp…</p>
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India

Solar Industries India Limited manufactures and supplies explosives and explosives accessories. The company's products include bulk, cartridge, detonators, detonating cords Pentaerythritol Tetranitrate ("PETN"), and cast boosters.