Solar Industries Q4- Comfortably Navigates An Extremely Challenging Inflationary Environment: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Solar Industries India Ltd.’s earnings surprised on the back of higher-than-expected domestic volumes and margins. The company has been able to pass through the raw material price increase, leading to improved gross margins/tonne and Ebitda margins/tonne QoQ. FY22 volume growth of 22% (versus guidance of 20%) along with improvement in gross margins in an inflationary environment where ammonium nitrate prices have increased approx. three times highlights the pricing power that Solar Industries enjoys. Volume growth has been broad based across sectors (coal, housing and infra). Consolidated gross margin performance has been relatively weak (~300 basis points correction); Ebitda margin has been helped by lower other expense (presumably on account of lower forex loss/gains). Solar Industries appears favorably placed with possible share in 23 out of 310 defence equipment in negative import list as published by the Ministry of Defence..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Solar Industries Q4- Comfortably Navigates An Extremely Challenging Inflationary Environment: ICICI Securities

Solar Industries Q4- Comfortably Navigates An Extremely Challenging Inflationary Environment: ICICI Securities

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