Solar Industries India Ltd Q3 2025 Earnings Call Transcript

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

Question: Amit Dixit - ICICI Securities - Analyst : Congratulations for good performance, sir.

Question: Amit Dixit - ICICI Securities - Analyst : Yes. I am using my handset.

Question: Amit Dixit - ICICI Securities - Analyst : Yes. Is it better now? Hello?

Question: Amit Dixit - ICICI Securities - Analyst : Yes. So my first question (inaudible). If you look at the export orders that we have received over the recent past, particularly the one -- the last one that we received is up INR, 2000 crore. So just wanted to get a sense on the ammunition export market, how do you see it panning out over the next 12 to 15 months? Are we seeing some more opportunities over there? And is it possible to just to know categories, where we are seeing certain (inaudible) explosive or Pinaka, for instance, or something else that we might be getting in? That is my first question.

Question: Amit Dixit - ICICI Securities - Analyst : Wonderful, sir. Bhargavastra (inaudible) and Army actually loved it. When can we -- and which (inaudible) stage we are in when we can see possible ordering or some more development on this front?

Question: Amit Dixit - ICICI Securities - Analyst : Wonderful, sir. One bookkeeping question, if I may. What was the cash flow from operations in nine months and CapEx so far in nine months?

Question: Amit Dixit - ICICI Securities - Analyst : Yes, sure.

Question: Ravi Naredi - Naredi Investments - Analyst : First of all, Manish, thank you very much for nice results, you have delivered again. Sir, company has signed with government of Maharashtra for investing INR 12,700 crore in next 10 years to establish an Anchor Mega Project, please say more few words about this project and how the company will arrange the funding?

Question: Ravi Naredi - Naredi Investments - Analyst : Exactly what is the project, this one?

Question: Ravi Naredi - Naredi Investments - Analyst : And it is only for Maharashtra government or it will be for pan-India working?

Question: Ravi Naredi - Naredi Investments - Analyst : Government of Maharashtra.

Question: Dipen Vakil - PhillipCapital - Analyst : Congratulations on a good set of numbers. Firstly is, your defence growth has been phenomenal for this quarter. And we feel that the annual guidance is we earlier had guided for revenue top line of close to around 20% contributing from defence, and that was something around close to around INR 1,500 crore. So any revision on that guidance that you would like to present?

Question: Dipen Vakil - PhillipCapital - Analyst : Got it. Sir, my next question is in the line of, sir, our core explosive business. So this quarter has been largely flattish when we look at the domestic explosives number. So when do you expect the market scenario to change? When do we expect the pickup in execution to start coming in even in the Explosives segment?

Question: Dipen Vakil - PhillipCapital - Analyst : Okay. And any more order in pipeline in the Defence sector, which are there in near to medium term? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 5:30AM, SLIN.NS - Q3 2025 Solar Industries India Ltd Earnings Call

Question: Dipen Vakil - PhillipCapital - Analyst : Got it. Got it. So execution time line for the -- so INR 7,900 crore of order, what would be the execution time line for INR 7,900 crore? And once Pinaka is confirmed, what would be the execution time line for the INR 6,000-odd crore of Pinaka?

Question: Dipen Vakil - PhillipCapital - Analyst : 8 to 12 years is Pinaka. So the other defence is also 8 to 10 years?

Question: Sanjaya Satapathy - Ampersand Capital - Analyst : Sir, two questions. First of all, this margin improvement that you have seen again in this quarter, do you see further upside to it? Or it is sustainable?

Question: Sanjaya Satapathy - Ampersand Capital - Analyst : Understood. Sir, you have seen some good order inflow in this quarter. Can you just give us some color on what were the key driver of this order inflow? I mean, which all segments were the key contributor?

Question: Sanjaya Satapathy - Ampersand Capital - Analyst : The order inflow mix I'm talking about.

Question: Sanjaya Satapathy - Ampersand Capital - Analyst : And last thing, sir, you mentioned that you may fall short of your guidance of 30% growth somewhat, but are you seeing improvement again in domestic market and in -- from January onwards?

Question: Rakesh Roy - Boring AMC - Analyst : My first question, regarding Defence business, especially in Pinaka, standard Pinaka, as you say, is INR 10,000 crore. So how much is for the company? if you were saying, we are INR 6,000 crore? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 06, 2025 / 5:30AM, SLIN.NS - Q3 2025 Solar Industries India Ltd Earnings Call

Question: Rakesh Roy - Boring AMC - Analyst : Sir, again on Pinaka. Sir, the demand for Pinaka in the international market is increasing, especially for our (inaudible) company. So how do you see the demand for our company, our supply or do we get any order or do we get any inquiry from them?

Question: Rakesh Roy - Boring AMC - Analyst : Right, sir. Sir, this extended Pinaka is a replacement for old Pinaka or they are just adding more? Just to understand and how much mix they are expecting, sir, (inaudible) Defence?

Question: Rakesh Roy - Boring AMC - Analyst : Okay, sir. And sir, you are actually saying that you are currently near to INR 5,000 crore or INR 6,000 crore you are expecting for Pinaka. And how much you are looking from Brahmos because demand from Brahmos especially in export or domestic market is increasing. So how much is improved from the Brahmos and (inaudible), sir?

Question: Rakesh Roy - Boring AMC - Analyst : And the last question regarding (inaudible). Where we stand in (inaudible).

Question: Rakesh Roy - Boring AMC - Analyst : Okay. And one last question from last year, over the next three, four years, where you see Defence business, where we see our revenue overall total Solar revenue in -- for Defence business?

Question: Rakesh Roy - Boring AMC - Analyst : Yes.

Question: Pratik Mukasdar - RNL Investments - Analyst : Manishji, congratulations for a wonderful set of numbers. you guys are continuously raising the bar up. So it's very heartening to see. I want to ask one question. Now that U.S. has a change of frames and Trump has come in and -- so does it really change the global sentiment as far as our business goes or that is just the headline and below the headline, work is going as usual and it is even getting better?

Question: Pratik Mukasdar - RNL Investments - Analyst : Okay. Okay. And how do you see the mining space? Like last year, as you mentioned earlier also, because of the extended monsoon, the growth was slightly subdued. But in coming years or for the coming period, how do you see it, going forward?

Question: Pratik Mukasdar - RNL Investments - Analyst : Okay, fantastic. Congratulations.

Question: Bharat Shah - ASK Investment - Analyst : Manish, hearty congratulations. Manish, on the -- what we have discussed many times before, given all the opportunities in the international markets plus the Defence, where we have now made significant forays after many, many years of effort to build that activity. Would we say that 20% plus kind of revenue growth for the next three to five years, that reason remains intact, right?

Question: Bharat Shah - ASK Investment - Analyst : And which will mean that compared to our Coal India institutional and the other domestic intra business, both defence and international business, I suppose, would be growing at -- defence clearly, but even the international business should be growing much better than that 15% growth rate that you have talked about, right?

Question: Bharat Shah - ASK Investment - Analyst : Okay. Which means about 20% plus growth over three to five years in top line, and either maintaining margin or getting some more gains due to efficiency in operational strength, plus the mix of the business favoring relatively better yielding businesses, should be kind of broader picture. Some quarters in between can pose a challenge, but that's part of the game.

Question: Ravi Naredi - Naredi Investments - Analyst : Sorry, Manish, to disturb you again. This Maharashtra project is INR 13,000 crore, how much top line it gives on INR 1 crore of investment and what will be our margin? And when we start this investment on this project?

Question: Rakesh Roy - Boring AMC - Analyst : Sir, my one question is regarding -- are we working on a new product apart from (inaudible) product?

Question: Rakesh Roy - Boring AMC - Analyst : Manish, just I am trying to understand, especially in Defence business, any product we are going to add in near future?

Question: Rakesh Roy - Boring AMC - Analyst : Okay. And my last question, sir, (inaudible), is there any plan to hype up our Defence business in the next three to four years?

Question: Rakesh Roy - Boring AMC - Analyst : Is it possible from (inaudible) Solar, is it spin off our Defence our defense business in next two to three years after...

Question: Alisha Mahawla - Envision Capital - Analyst : A couple of clarifications. Earlier, we mentioned that the order book -- the existing order book ex of Pinaka execution should be three, four years. Is this for Defence or the total INR 7,000-odd crore order book. Second, for Pinaka, if you could help us understand that while the execution is 8 to 10 years, what kind of milestones or how will the ramp-up happen? And third, what will be incremental investments that would be required for Pinaka that we may probably have to undertake?

Question: Alisha Mahawla - Envision Capital - Analyst : Sure. While I understand the execution time line of seven to 12 years, will it be possible to maybe also share a little bit color on how will the ramp-up be happening?

Question: Alisha Mahawla - Envision Capital - Analyst : Will it be starting from 26 onwards? And if there is any milestone or maybe is it going to be slightly back-ended, it will ramp up and maybe only be meaningful for us from a revenue perspective, say, '28 and beyond.

Question: Dipen Vakil - PhillipCapital - Analyst : Yes. Am I audible?

Question: Dipen Vakil - PhillipCapital - Analyst : Sir, my question is on the line of our ammunition side of business. Sir, we are seeing some huge growth potential coming on the ammunition side of it. So can you highlight what kind of orders are anticipated here? Or what kind of growth are we seeing in the ammunition side of it now and even going ahead?

Question: Dipen Vakil - PhillipCapital - Analyst : I'll look into the transcript then.

Question: Nishant Chowhan - Geojit - Analyst : Am I audible?

Question: Nishant Chowhan - Geojit - Analyst : Sir, on the Defence orders, we've talked about our current order book of around INR 4,971 crore. So just wanted to know, are these more export orders or are they for the domestic consumption?

Question: Nishant Chowhan - Geojit - Analyst : Okay. Because I think last quarter, we mentioned about two big orders, which were for export orders itself. So it would be largely export-oriented or domestic?

Question: Nishant Chowhan - Geojit - Analyst : And sir, secondly, we've talked about entering Kazakhstan and Thailand as per our annual reports. Any update on that, sir?