Explosives and explosive accessories manufacturer Solar Industries today reported 14.63 per cent rise in consolidated net profit for the quarter ended December 31 at Rs 47.52 crore on the back of higher sales.
The company had reported a net profit of Rs 41.52 crore in the corresponding quarter last fiscal.
Its total income for the October-December quarter increased to Rs 463.53 crore from Rs 412.68 crore in Q3FY16, registering a growth of 12.32 per cent.
"There was a growth of 12.32 per cent when we compare it on YoY basis. However, on quarter-on-quarter basis the growth is 33 per cent which shows a significant recovery. This growth came in spite of demonetisation and translational losses, which is due to devaluation in foreign currency," company's Managing Director and CEO Manish Nuwal said.
He said the company has already taken effective steps to mitigate the losses arising from weakening of currency, and as a result of which, the effect of translational losses will get minimised by the fourth quarter of this fiscal.
"Our manufacturing facility in South Africa will commence from the first quarter of FY18 and it will take about three months for our product to stabilise and get recognition within the local market. Within 6 months, we will be able to achieve 80 per cent of capital utilisation," Nuwal said.
He further said the company is expecting more orders from defence sector. Currently, its order book in the defence business stands at Rs 102.81 crore to be executed over FY18.
"We have participated in many RFI's (request for information) and more orders are expected to come in future. Our supply chain to defence sector is now getting streamlined. We continue to build on our core strengths to accelerate business growth and seek new vistas of opportunities to deliver on our stakeholder commitments," Nuwal added.
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