Solar Industries shares crack 6.5% on BSE on weak FY25 revenue guidance

Solar Industries shares fell today with over 12,000 shares changing hands on the BSE as against a two-week average volume of 4,000 shares

Solar Industries share price declined in trade on Thursday, pressured by high volumes on the BSE. The stock hit an intraday low of Rs 9,020 per share on the stock exchange, falling 6.5 per cent in the intraday trade.

 

The decline in Solar Industries shares came after the company shared a weak revenue outlook and guidance for the current financial year 2024-25 (FY25).

  Solar Industries revenue guidance

During Solar Industries Q3 earnings conference call, the management reportedly said it expects to fall short of the FY25 revenue guidance by 30 per cent.

 

"While defence revenue guidance is sustainable, it still may be +/- 5 per cent of the same. Domestic market slowdown is impacting the revenue growth," Solar Industries management said.

 

At 1:40 PM, Solar Industries share price was down 4.48 per cent at Rs 9,216 per share as against a 0.4 per cent fall in the benchmark BSE Sensex index.  A total of 12,000 shares have changed hands on the stock's counter till the time of writing this report, as against a two-week average volume of around 4,000 shares. 

Solar Industries Q3 results

During the October-December quarter (Q3), Solar Industries reported a net profit of Rs 338 crore, a rise of 52 per cent over Rs 222-crore profit of Q3FY24.

 

It reported the highest-ever sales revenue of Rs 1,973 crore for the quarter, higher by 38 per cent over Q3FY24 revenue of Rs 1,429 crore.

 

Ebitda was highest-ever in Solar Industries' history, growing 46 per cent on year to Rs 536 crore. Ebitda margin expanded by 148 basis points to 27.17 per cent and Net profit margin 158bps to 17.11 per cent in Q3FY25.

 

During the quarter, the explosives' company registered the highest-ever Defence revenue of over Rs 400 crore. Its order book was at record high of over Rs 7,100 crore.

 

"While domestic demand has been subdued due to the general and state elections in many parts and heavy monsoon season, our long-term growth trajectory remains robust, driven by our strategic diversification. Our international business has delivered exceptional third-quarter performance, growing 21 per cent year-on-year . Its revenue was best-ever at Rs 758 crore," said Manish Nuwal, managing director & CEO of Solar Industries.

 

Solar Industries is one of the world's leading manufacturers of Explosives and Initiating Systems. It has a worldwide presence with 40 manufacturing facilities and a global footprint in more than 82 countries, including manufacturing facilities in 9 countries.

 

Solar Industries share price history

Solar Industries shares hit a record high of Rs 13,300 per share on July 11, 2024. They hit a record low of Ra 18.81 on March 7, 2007. Solar Industries has a market capitalisation of Rs 83,395.6 crore at present, and the shares trade at a price-to-earnings (P/E) of 110.38x.