Premier Explosives Ltd. expects to achieve a turnover of Rs 5,500 crore by 2025 and ramp it up further to Rs 10,000 crore by 2030, Managing Director TV Chowdary said.
In the quarter ended September, Premier Explosive’s revenue from operations grew by 21% year-on-year to Rs 94.6 crore. Profit-after-tax, however, declined 27% YoY to Rs 8.39 crore in the second quarter.
Revealing the company’s short-term and long-term growth targets, Chowdary said, “We expect to cross Rs 5,500 crore turnover by year-end 2025 and have a target of reaching Rs 10,000 crore turnover by 2030.”
The company’s Ebitda slipped sharply by 24% YoY to Rs 16.6 crore from Rs 21.8 crore a year ago. Explaining the reason for this drop, Chowdary said, “Ebitda to some extent has gone down on account of delays in deliveries. End of this quarter, the stocks which are there, we could take the value on the cost price rather than the selling price.”
“They (the stock) are complete and ready for dispatch and will come into the turnover and profits in the third quarter,” he said.
According to Premier Explosives' investor presentation, its order book at the end of Q2 stood at Rs 8.27 crore, which is three times the company’s revenue for FY24.
Chowdary said that the company’s orders are likely to be completed in the next one-and-a-half years. “One of the bigger orders is to be completed in five years. Other than that, mostly the contracts are of two-year periods. We expect to complete this in the coming one-and-a-half-year time. However, other orders will be adding to this.”
On whether the company planned to reduce its dependence on the defence order book, Chowdary replied in the negative. “We are not planning to get out of the industrial explosives business. We will be very much there, depending on the profit margins,” he said.
Shares of Premier Explosives Ltd. closed 5% lower at Rs 423.30, while the broader index Nifty 50 ended 1.36% lower at 23,559.05.
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