Solar Industries India Ltd Q1 2023 Earnings Call Transcript

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

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : Congrats on a great set of numbers, especially on the overseas side. So on the overseas, can you list out what is the factors which you see playing out over the course of next 1 to 2 years or next 1 year in particular in terms of volumes, which are the newer geographies, which will contribute incrementally, have any new geographies started contributing to volumes this quarter? And second question which I had is that now the raw material prices have dropped very sharply and probably the impact will be visible in the next couple of quarters, will the -- what will be the normalized overseas margins be when the dust settled in terms of softening raw material prices? Is it safe to assume that will be back to 20%, 21% level? That's all from my side.

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : Right. A bit of thought on the margins because on the domestic margins, while the absolute percentages might have declined, but on a per tonne level, we see a steady -- relatively steady performance. So I was also thinking on the overseas side, when the dust settles in terms of dropping raw material prices, is it fair to assume that, that 20%, 21%, 22% range of margins in the overseas business will be brought back? That will be the...

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Yes, sir. This is Sujit. And one question is on our billing in overseas subsidiaries. Is it in dollar terms for most of the subsidiaries?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : But in the main subsidiaries, key subsidiaries, how is the billing like in which currency? So for example, Turkey, Tanzania, the main contributors to the overseas sales.

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Okay. And we had kind of indicated and guided for FY '23 and Australia and South Africa will start making money even at the PAT level. How is our progress on that?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : So from third quarter -- from Q3 onwards, Australia should be PAT positive?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Okay. And South Africa will be PAT positive when?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : So on a run rate basis beginning of the year or somewhere in H2?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Just wanted to check with you this 30% guidance, revenue guidance for FY '23. Though it is difficult to predict broadly, if you can split between value increase and volume increase.

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Okay. And on the previous question, that is on our minds as well, in Defense contracts, these would be fixed contract or there is some variation clause for the RM because the RM has fluctuated so early?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Looking at our margins, one believes that we are kind of protected there in 1 way or the other.