Solar Industries India Limited (SOLARINDS) Earnings Call Transcript & Summary

Dear valued shareholders, directors, invitees, ladies and gentlemen, a very good morning and a warm welcome to the 26th Annual General Meeting of Solar Industries India Limited. I'm Khushboo Pasari, Company Secretary and Compliance Officer of the company. It is 11:30 a.m. and the time to begin the proceedings of this meeting. This meeting is being held today through video conferencing as permitted by the various circulars of Ministry of Corporate Affairs and the Securities and Exchange Board of India. Before I hand over the proceedings to the Chairman, sir, to declare the meeting open, I would like to mention some general instructions. I would like to let you know that the proceedings of this meeting are recorded. During the meeting, the participants would be on mute. The joining to this meeting was opened 15 minutes before the scheduled time of the commencement of the meeting, which is 11:30 a.m. and it will remain open for another 15 minutes after the end of the meeting. Members are encouraged to join the meeting through their laptop for a better experience and use Internet with a good speed to avoid any disturbance during the meeting. It is also recommended to use a stable WiFi or LAN connection to mitigate any kind of opposed glitches. As mentioned in the notice, the facility of participation at the AGM through video conferencing has been made available for the members on the first-come-first-serve basis. The company has also provided webcast facility to view the live proceedings of the Annual General Meeting on the website of NSDL. Subsequent to the circular dated in 8th April 2020, issued by the Ministry of Corporate Affairs, the facility to appoint proxy to attend and cast on -- cast vote for the members is not available for this AGM. However, the Body Corporate is entitled to appoint authorized representatives to attend the AGM through video conferencing and cast their votes through e-voting. The registered office of the company is situated at Nagpur and shall be deemed as a venue for this AGM. And the proceedings of the AGM shall be deemed to be conducted at the registered office of the company. The Register of Directors and KMP, the register of contracts or arrangements has been made available electronically for inspection by the members during the AGM. Members seeking inspection of such documents can send their request to investor.relations@solargroup.com. The company has received requests from a few members to register them as speaker at the meeting. Accordingly, the floor will be open for them to ask questions or express their views. It may be noted that the company reserves the right to limit the number of members asking questions depending on the availability of time. The moderator CS Jayanee Puranik will facilitate this session once the Chairman opens the floor for questions and answers. The shareholders who have not registered as speakers would not be allowed to speak and raise their queries during the AGM. With this, I hand over the proceedings to the Chairman, sir. Thank you. Over to you Chairman, sir.

Thank you, Khushboo. Good morning, ladies and gentlemen. Myself, Satyanarayan Nuwal, Chairman of Company on behalf of Board of Directors of Solar Industries India Limited, I extend a heartiest welcome to each one of present at the 26th Annual General Meeting of the company. I hope all of you and your loved ones are safe and keeping well during this tough time. I also hope that all of you are vaccinated or on your way to getting there so that we can emerge out of this pandemic stronger and return back to our normal lives. Khushboo is there any requisite quorum present for this meeting?

Yes, Chairman, sir, we have around 45 members present for the Annual General Meeting, and we can now commence the proceedings of the meeting.

Thank you, Khushboo. The Company Secretary informed me that we have sufficient quorum of members participating through video conferencing. According the meeting is properly constituted and I call this meeting to order. Before we start the proceedings of the meeting, I request my colleague and key managerial personnel to your company to introduce themselves. Sri Manish Nuwal.

Manish Nuwal, Managing Director and CEO of the company hereby attending the 26th Annual General Meeting of Solar Industries India Limited through video conferencing at Nagpur.

Shri Suresh Menon.

I'm Suresh Menon, Executive Director of the company, here by attending the 26th AGM of Solar Industries India Limited through video conferencing from Nagpur.

Sri. Milind Deshmukh.

I'm Milind Deshmukh, Additional Director of the company hereby attending the 26th Annual General Meeting of Solar Industries India Limited through video conferencing.

Sri Dilip Patel.

I, Dilip Patel, Independent Director and Chairman of Audit Committee of Solar Industries India Limited. Hereby attending the 26th AGM through video conferencing from Mumbai.

Sri Amrendra Verma.

Stakeholder related committee and also Chairman of nomination in relation Committee, attending the 26th Annual General Meeting of Solar Industries India Limited from my residence at Patna.

Sri Ajai Nigam. Sri Sunil Srivastav. Shrimati Sujitha Karnad. Sri Moneesh Agrawal.

I, Moneesh Agrawal, Joint Chief Financial Officer of Solar Industries India Limited, hereby attending the 26 AGM through video conferencing from Nagpur.

Sri Shalinee Mandhana.

I, Shalinee Mandhana, Joint CFO, Solar Industrials India Limited, hereby attending the 26th AGM through video conferencing from Nagpur. Over to you, Khushboo.

Thank you, Shalinee. Apart from Board members and KMPs, we also have key executives and senior management joining from their respective locations. We recognize the presence of our statutory auditors, Shri Pramodji, partner, on behalf of S R B C & CO LLP, joint auditors, Shri Akshay Rathi, on behalf of Akshay Rathi & Associates; secretarial auditors, the Shri Anant Khamankar, on behalf of Anant B Khamankar & Co. and cost auditor, Shri Deepak Khanuja, Partner of M/s Khanuja Patra & Associates.

I now request and authorize CS Khushboo Pasari, Company Secretary and Compliance Official to provide e-voting instructions to the members regarding voting in this meeting.

Thank you, sir. The company has taken all feasible efforts under the current circumstances to enable members to participate through video conference and board at the AGM. The company has provided remote e-voting facility to all the persons who were members on 23rd August 2021, being the cut of date to cast the votes electronically on all the resolutions set forth in the notice. Members may please note that there will be no voting by show off hands as the resolutions have already been put to vote through remote e-voting and the requirement to propose and second is not [indiscernible]. Members who have not casted their votes yet electronically and who are participating in this meeting will have an opportunity to cast their votes during the meeting through the e-voting system provided by NSDL. Members can click on vote tab on the video conference screen to avail this feature. Members are requested to refer to the instructions provided in the notice or appearing on the video conference page for a seamless participation through video conference. In case members face any difficulty, they may reach out on the helpline numbers. Shri Tushar Pahade, partner at M/s Joshi Pahade & Associates, practicing company secretaries has been appointed as a scrutinizer to scrutinize the remote e-voting process and the e-voting system during the meeting in a fair and transparent manner. [Foreign Language] The company firmly believes that even after these challenging times, there are and always be the new trace and new beginnings. And the leader behind this idea is none other than the Chairman of Solar Group, Shri Satyanarayan Nuwal. I now request you, Chairman, sir, to address the members of the company. Thank you.

A very good morning to all. Dear shareholders, it is my pleasure to welcome you to the 26th Annual General Meeting of your company. It is an honor to say the highlights of the company's performance during the year and plan for the future with you all. The sales of the company dipped for a short time in April, May 2021 on account of severe pandemic. However, due to proactive action by the management and commitment displayed by our highly motivated employees. The crisis was well handled, and the situation was very quickly reversed. During the fiscal 2021, the company posted net sale of INR 2,515.63 crores, achieving a growth rate of 12.44% compared to INR 2,237.30 crores during the financial year 2019/'20. The global price rise across commodities was driven a rebound in economies across the world, which resulted in price inflation. Despite inflationary headwinds the company registered a 12.76% growth in EBITDA during the period under review was INR 536.02 crores, a comparison with the previous fiscal figure of INR 457.37 crores. The EBITDA margin continued to remain healthy at 21.31% levels, which affects both good planning and strong operational performance. Your company continued the practice of consistently rewarding shareholders who reposed confidence in us with a dividend of 300% on the face value of INR 2 of our share. Friends, during the last fiscal the normal business challenges were multiplied by the pandemic, nevertheless, the company was able to steer past our optical -- our obstacles riding on the strength of its people and still maintain a constant performance. In overseas market, the economic turnaround is quite visible, especially in the countries where we have a presence. Hence our overseas expansion strategy is providing to be quite advantageous as of today. The company has booked an order for the upcoming year, which worth rupees INR 1,510 crores during the financial year 2021, it also include order of INR 4,047 crores from Singareni Collieries for a period for 2 years, that combined order from the Coal India Limited and Singareni Collieries are worth INR 830 crores. We have received an order to supply multi-mode hand grenades from the Ministry of Defense, Government of India, worth INR 450 crores, which is to be delivered over the period of 2 years. The company has received an order worth INR 680 crores in defense sector and expects significant traction in this sector in the near term. Training for health, safety and [indiscernible] are integral part of our business process. And a key of our existence. We lay great emphasis on providing hands-on training of our employees at all level to create awareness on our aspect of safety. We continue to enhance our social engagement as we firmly believe that it is our moral responsibility to provide support to our neighborhoods. And also our society at large. We cover areas such as education, school infrastructure and maintenance of ecological balance as there is a essential for the health and happiness of our communities. I thank our entire solar team for their dedication, hard work and commitment, which has helped our company to be continued amongst the top global companies in the high energetic materials industry. I thank our directors for their continued guidance and support. Finally, I thank all our esteemed shareholders for reposing their confidence in us. Thank you so much.

Thank you, sir.

I now request and authorize Company Secretary, to provide a summary of the auditor's report.

The statutory auditors, S R B C & Co. LLP, M/s Akshay Rathi & Associates, joint auditors and secretarial auditors, Shri Anant Khamankar has expressed unqualified opinion in their respective audit reports for the financial year 2021. There were no qualifications, observations or adverse comments on the financial statements and matters which have any material bearing on the functioning of the company. The statutory auditor's report on standalone and consolidated financial statements are available on Page #119 and 176 of the Annual Report. Secretarial auditor report is enclosed as Annexure B1 to the Board's report on Page #68 of the Annual Report. Thank you. Over to you, Chairman, sir.

As the notice is already circulated to all members, I take the notice convening the meeting as reach. We now take up the resolution, as said for in the notice. We will open the floor for any question by members after all the resolution are tabled. Now I let us take up the agenda item. I now request and authorize Company Secretary to please lead the agenda items.

Thank you, Chairman, sir. In terms of notice of 26th Annual General Meeting following items of ordinary business are to be considered at this meeting, to proceed with the first item on the agenda, as per the notice is, to consider and adopt the audited financial statements, both stand-alone and consolidated as at 31st March 2021, the profit and loss account as on that date, and the report of Board of Directors and auditors thereon. The company's accounts for the year ended March 31, 2021, along with the Directors and Auditor's Report, a Letter to the Shareholders and Management Discussion and Analysis Report was calculated to all the members of the company. As there were no qualifications, observations or adverse comments on the financial statements and matters, which have any material bearing on the functioning of the company. With the permission of Chair, I would like to take them as read. The second item on the agenda as per the notice is, to declare a final dividend on the equity share for the year ended on March 31, 2021. The Board of Directors has recommended a final dividend of INR 6 per equity share that is 300% of the face value. I request Shri Satyanarayanji Nuwal to pass on the chair to Shri Dilip Patelji, Independent Director and Chairman of the Audit Committee for the third agenda item as he is interested in the same.

I vacate that chair for the agenda item #3 and pass the same to Sri Dilip Patel.

Yes, I accept the chair for the agenda item #3.

Thank you, sir. The third item on the agenda. As per the notice is to appoint a director in place of Shri Manishji Nuwal, who retires by rotation and being eligible offers himself for reappointment. Before taking up the next agenda, I request Shri Dilipji Patel to pass on the chair to the Shri Satyanarayanji Nuwal.

Yes, I vacate and pass on the chair to Shri Satyanarayanji Nuwal.

I accept the chair.