Premier Explosives Limited reported its Q4 and FY25 earnings in a conference call on May 23, 2025.
FY25 revenue increased by 54% year-on-year to ₹417.5 crore, driven by growth in the Defense and Space Services division.
The company signed a joint venture agreement with Global Munition Limited to manufacture defense and aerospace products in March 2025.
The current outstanding order book stands at ₹750 crore, 1.8x of FY25 revenue, with defense orders constituting ₹610 crore (81%).
Q4 FY25 revenue was ₹74.1 crore compared to ₹86.8 crore in Q4 FY24, a de-growth of 14.6% year-on-year. Net profit for Q4 FY25 was ₹3.7 crore compared to ₹6.6 crore in Q4 FY24.
FY25 operating profit stood at ₹58 crore, with a net profit of ₹28.6 crore.
An unfortunate fire and explosion incident occurred on 29th April at the Katepalli village facility in Telangana, impacting a propellant mixer unit. The company is working with authorities to secure necessary clearances and expects to receive insurance claims.
The accident may affect revenue from large diameter rocket motors by ₹25 crore to ₹30 crore.
Premier is the only Indian company qualified to manufacture counter measures and specializes in exporting rocket motors, warheads, mines and ammunition under the Atmanirbhar Bharat initiative.
The company generated a cash profit of ₹40 crore in FY25 and aims to enhance operational efficiency and boost cash flow.
The company expects to maintain an order inflow of around ₹800 crore.
The company is targeting revenue of ₹600 crore for the current financial year and expects to reach ₹1,000 crore turnover by 2030, with an EBITDA margin between 18% to 20%.
Management expects to resolve issues related to late delivery charges on specific contracts by the end of the year.
Management Comments: "Thank you for your support when we have all the difficult times due to accident and all those. I really thank everybody from bottom of my heart for cooperating and then still having the confidence and faith. And we will overcome all the adversaries and then we will definitely perform well as per your expectations."