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Premier Explosives


Premier Explosives manufactures industrial explosives, detonators and propellants (defence).

The company supplies its products to all major mining companies and to the ministry of defence.

The company has reported moderate growth in revenues and operating profits over the last five years – reporting 17cr of operating profits on revenues of 94cr in the last financial year.  It employed minimal net debt in its operations.

The business prospects are tied to the fortunes of the mining/construction industries, which are subject to the economic cycles.  Moreover, long monsoons are adverse for detonator sales.  It is also subject to the risk of more stringent defence ministry requirements. 

Management have written off 8cr on joint venture investments in Turkey and Georgia, which is a cause for concern – but there don’t appear to be other questionable investments at present.
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