Solar Industries India Ltd Q4 2022 Earnings Call Transcript

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

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Manish ji, our compliments on a very good set of numbers. If you can split your 30% guidance into estimated volume and pricing growth for FY '23?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Is it safe to understand that close to about 15-odd percent to 20% could come from pricing?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : And in Overseas FY '22, there is a 37% value growth. If one looks at the realization increase that you report for explosives domestically, which was up 44%, how does one read into this number. Does it mean that there has been a substantial currency translation, which has led to this little dilution to 37% growth and so volumes were robust? Or volumes were kind of muted in Overseas business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2022 / 5:30AM, SLIN.NS - Q4 2022 Solar Industries India Ltd Earnings Call

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Sure. And in terms of our hedging policy, how much of our sales we hedge typically?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : Sure. And one last question is, one is following the interesting development that is kind of done, you've tested your Loitering Munitions in Ladakh successfully as some of the media reports are saying. How does this arrangement with this company (inaudible) 45% work in terms of eventually getting contracts with the defense forces?

Question: Sujit Jain - ASK Investment Managers Limited - Analyst : I'm saying, Zmotion Autonomous Systems Private Limited, in which we've acquired 45% stake. There are media reports that you have successfully tested the Loitering Munition, in which you are working kind of with Zmotion. How does this partnership work in future to get the contracts from defense forces in Loitering Munitions, et cetera?

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : First question is on the financials. And before that, congrats on a great set of numbers. First question is on consolidated financials. Other expenses have come off on a quarterly basis. So just to understand the nature of this. Is this is a normalized other expense run rate on a consolidated trend that we can expect? Or there can be variations in there? CA Aanchal T. Yes. As regards to other expenses, this quarter we had some ForEx gains of around INR 16 crores as compared to the losses in the previous quarter. And secondly, we had actually good collections during the year with the effort we have been putting to reduce our debtor days, which is reflected in the number of debtor days, which has come down to 50 from 66. As a result, the provisions as per book that has to be made, some reversals were there in the provisions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2022 / 5:30AM, SLIN.NS - Q4 2022 Solar Industries India Ltd Earnings Call

Question: Abhijit Mitra - ICICI Securities Limited, Research Division - Analyst : Okay. Okay. Great. Great. The second question is regarding further investments. If you can give the CapEx guidance for the next couple of years. And also, since Zmotion has been selected as 1 of those 14 participants, initial set of participants for drone manufacturing PLI, so what is the outlook? Or what is the possible CapEx that we are looking at to capture that opportunity? So this would be my second question. CA Aanchal T. Yes. The CapEx for the year stands around INR 400 crores to INR 450 crores, keeping in view the strategic investments we have been making. That includes Zmotion also.