Operating profit during the quarter was impacted by elevated raw material prices amid prevailing global market conditions.
Revenue declined 27.8% to ₹102.6 crore from ₹142.1 crore in the corresponding quarter last year, primarily due to delays in dispatches and project execution amid ongoing global headwinds and supply chain disruptions.
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Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 71.9% to ₹5.86 crore, compared with ₹20.87 crore a year ago. The EBITDA margin declined to 5.71% in Q1 from 14.68% in the year-ago quarter.
The company said execution momentum is expected to improve in the coming quarters as these challenges gradually ease.
Premier Explosives had a strong order book of ₹1,393 crore as of the date of the update, with 94% contribution from the Defence segment, providing revenue visibility going forward.
Last month, Apollo Micro Systems Ltd said it had entered into a Share Purchase Agreement (SPA) with the promoter shareholders of Premier Explosives Ltd to acquire a 41.33% stake in the company for ₹1,550 crore.
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The acquisition involves the purchase of 2.22 crore equity shares of Premier Explosives with a face value of ₹2 each. Following the acquisition, Apollo Micro Systems will gain control of Premier Explosives.
As part of the transaction, Apollo Micro Systems will make a mandatory open offer to eligible public shareholders of Premier Explosives for acquiring up to 26% of the fully diluted voting equity share capital under the SEBI Substantial Acquisition of Shares and Takeovers Regulations.
The transaction is subject to regulatory and statutory approvals, including clearance from the Competition Commission of India (CCI) and fulfilment of conditions under the SPA. The acquisition is expected to be completed within five months.
Premier Explosives is engaged in manufacturing solid propellants for missile programmes and supplying countermeasure systems to the Indian defence, aerospace and mining sectors.
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Shares of Premier Explosives Ltd ended at ₹658.00, up by ₹6.75, or 1.04%, on the BSE.
