Solar Industries receives NCLT nod for the Scheme of Amalgamation to merge arm with Rajasthan Explosives and Chemicals

The company reported that following the filing of the order copy with the Registrar of Companies, the transferor company, Rajasthan Explosives will stand dissolved.

Solar Industries first announced the acquisition of Rajasthan Explosives in April 2023. The company stated that it would acquire the entire business through a business acquisition agreement. Solar Industries stated that the acquisition is in line with the company’s long-term business plan and will aid in the expansion of operations.

In July 2024, the company announced that its South African subsidiary, Solar Mining Services had acquired a majority stake in Problast BS, South Africa. Problast BS is a leading blasting solution provider in South Africa and the acquisition will help Solar Industries to expand its presence in the African continent.

For the quarter ended June 30, 2024, Solar Industries reported a 49% year-on-year (YoY) rise in net profit to ₹301 crore. The company’s sales for the quarter grew incrementally by 1% YoY to ₹1,695 crore.

Meanwhile, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 43% YoY to ₹474 crore.

The EBITDA margin in Q1FY25 expanded to 27.95% from 19.69% in the corresponding period last year. At the same time, the net profit margin expanded to 17.73% from 11.98% in the same period last year.

The company’s domestic explosive volume for the quarter was up 16% YoY while revenue from the defence sector was up 34% YoY. At the end of the quarter, the company’s order book stood at ₹4,754 crore.

Shares of the company have risen by nearly 33% since the beginning of the year. The stock has gained over 43% in the past year.