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.
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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