Solar Industries India, the largest manufacturer, supplier and exporter of commercial explosives and initiating systems in India, today reported a rise of 23.59% in consolidated net profit for the quarter ended Mar. 31, 2014.
The company’s net profit increased to Rs 395 million for the quarter ended Mar. 31, 2014 as compared to Rs 319.5 million in the same quarter last year.
Consolidated revenue increased by 7% to Rs 3,625.2 million as against Rs.3,388.9 million in the quarter ended Mar. 31, 2013.
The company said, "There was a surge in demand for cartridge explosives boosting cartridge sales in fourth quarter as compared to sales witnessed in the previous three quarters of FY14.Bulk Sales got impacted in this quarter as compared to last year, due to loss of business from SCCL and disruption in supply of Ammonium Nitrate for Plants in Eastern India during the fourth quarter. Exports and overseas businesses continued to perform well except Zambian business."
Commenting on the results, Manish Nuwal, director, Solar Industries India said, “The overall performance of the company was satisfactory, given the challenging environment that we operated in last year. Despite of this, we not only managed to retain our profitability but also strengthened our foundation.
The overall demand in India’s housing and Infrastructure sector is still very weak which has affected demand for cartridge Explosives and detonators. More than average rainfall, throughout the year, also pulled down the demand for explosives and affected explosives industry sentiment s. However, with the new government in place, we expect a major thrust for housing, infrastructure and mining sector. This should accelerate the demand for explosives in the coming year. Our capex plans continue to be on track as we remain optimistic on demand revival and our foray in defence sector. We intend adding 3 bulk plants this year, to cater to the iron ore mining and construction sector.
Solar Industries has received order from SCCL (SingareniColliaries) for Rs. 1.10 billion p.a., for the next 2 years, sales of which has commenced in 4th week of May, 2014. This should help boost bulk sales in the coming years."