Solar Industries India Ltd's Q3FY19 consolidated net profit rises 26.6% yoy to Rs68.55cr: Beats Estimates

The company’s consolidated revenue stood at Rs653.04cr, up 40.2% yoy and 25.38% qoq.

Jan 31, 2019 10:01 IST India Infoline Research Team

Solar Industries India Ltd Q3FY19

Consolidated Results Q3FY19: (in Rs cr)

Q3FY19 YoY (%)
Revenue 653.04 40.2
EBITDA 121.45 16.4
EBITDA Margin (%) 18.6 [380]
Net Profit (adjusted) 68.55 26.6
***EBITDA margin change is bps
Solar Industries India Ltd's consolidated revenue for Q3FY19 came in at Rs653cr, up 40.2% yoy. The operating profit for the quarter stood at Rs121.45cr, up 16.4% yoy. The EBITDA margin declined ~380bps yoy to 18.6% in Q3FY19. The adjusted net profit (attributable to shareholders) for the quarter stood at Rs68.6cr, up 26.6% yoy. The revenue and net profit beat the consensus estimate of Rs578cr and Rs64cr by 13% and 7%, respectively. However, the EBITDA was in-line with the consensus estimates.
  • The gross profit margin of the company declined ~249bps yoy to 42.6% in Q3FY19 on account of likely change in product mix towards low-margin products and volatile raw material prices during the quarter.
  • The ~380bps decline in EBITDA margin is on account of increased raw material prices both in the domestic and global markets. Also, there is a significant ~64% yoy rise in other expense to ~Rs110.1cr in Q3FY19.
  • The effective tax rate of the company stood at 32% in Q3FY19 as against 34% in Q3FY18. Further, higher reversals of earlier tax provisions led to a further increase in the net profit of the company.
  • The revenue from the defense segment stood at Rs113cr during 9MFY19. The order book under defense segment stands at Rs430cr.

Technical View:

Solar Industries India Ltd ended at Rs1,018.95, up 20.35 points, or 2.04%, from its previous close of Rs998.60 on the BSE. The scrip opened at Rs1,001 and touched a high and low of Rs1,019 and Rs984, respectively. A total of 10,866 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200-DMA.

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