Premier Explosives

The company is not as well known as its other defence peers – Cimmco and Pipavav. It makes the entire range of commercial explosives and accessories for the civil requirement. It is the only Indian private sector designing, developing and manufacturing solid propellants for Indian missiles viz. Akash, Astra, etc.  It holds the distinction of being the first company in the world to produce safer and greener NHN (Nickel Hydrazine Nitrate) detonators on commercial scale replacing ASA (Lead Azide, Lead Styphnate and Aluminum Powder) detonators. It is operating and maintaining a State-of-Art Chemical manufacturing facility of Indian Space Research Organisation (ISRO) at Sriharikota and Solid Fuel Complex of Advanced Systems Laboratory at Jagdalpur in Chhattisgarh. It is very well known for its R&D - recognised by the Council for Scientific and Industrial Research (CSIR), Government of India, as an established research centre and has various collaborations with IIT, Madras and Gulbarga University for research in high energy materials.

For defence companies, Q1 and Q2 are not really the big order getting season; Q4 is seasonally the best. Yet, the company has done well this Q1FY17 and now in Q2 too. On a 36% (YoY) rise in net sales at Rs.55 crore, the company posted a net profit of Rs,2 crore, up 27%. Operating profit for the quarter was at Rs. crore, up 83% while margins improved from 7% to 9.5%. Its interest outgo per quarter is less than Rs.1 crore.

Its equity is at Rs.8.13 crore and reserve is at Rs.37 crore. Promoters stake is at 47.51%. The company has acquired 250 acres land for new defence projects; it plans to enter the ammunition business and negotiating for technological tie-up with foreign OEMs.