Solar Industries India Ltd Q1 2022 Earnings Call Hosted By ICICI Securities Ltd Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Manish-ji and team, congratulations and complements on a very good set of numbers. I have a question on consol management around when I look at those numbers. Across all quarters, the raw material cost is far cheaper than what you will find in (inaudible). So the gross margins are very high. So just to put that in context, the gross margins are as high as 64%, 65%. And then obviously, most of these entities' expenditure is higher. Employee cost is higher as a percentage of sales compared to the stand-alone, and -- but yet the OCM margins are higher. So what explains this kind of high gross margin in overseas entities?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Sure. And South Africa and Australia, if you could spell the FY '21 full year profit or loss figures in that generally, where are we?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Sure. But have they turned profitable in FY '21? And what is the growth (inaudible) from there?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : What I'm trying to ask is that is there a further scope of improvement in margins in overseas entities, because these entities can turn profitable?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : And just to understand, and coming back to question one, is that the raw material by net sales in these entities is a much lower number compared to stand-alone. So what exactly is the difference between the products that we sell in India and we sell overseas in terms of raw material sourcing?

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : Yes. So I have 3 questions, actually. First, on the net debt, if you can tell me your net debt and gross debt for the quarter ending, would be great. Unidentified Company Representative Yes. The gross debt stands at INR 783 crores as compared to INR 788 crores, and the net debt is around INR 650 crores.

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : INR 650 crores. Okay, great. And if you can also speak a little about your existing defense order book because I could (inaudible) the whole and the defense order book this time. So some light on that, it would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2021 / 6:00AM, SLIN.NS - Q1 2022 Solar Industries India Ltd Earnings Call Hosted By ICICI Securities Ltd Unidentified Company Representative Yes. The defense order book stands at INR 632 crores. And (inaudible) so mainly the (inaudible) around INR 1,000 crores.