Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Borosil Renewables Ltd (BOM:502219, Financial) reported a 12% increase in total sales for the financial year ended March 2025, reaching INR 1,110 crores.
- The company's EBITDA for FY25 increased by 51.8% to INR 180.51 crores, indicating improved profitability.
- The imposition of anti-dumping duties on solar glass imports from China and Vietnam has positively impacted domestic solar glass producers.
- Domestic demand for solar glass remains robust, with manufacturing capacity for solar modules expected to rise significantly by March 2027.
- The company plans to commission a 16.5 megawatt solar plus wind hybrid power plant, which will help meet a significant portion of its electricity demand from renewable sources.
Negative Points
- Export sales dropped sharply to INR 91.73 crores in FY25, primarily due to reduced demand in European markets and economic challenges in Turkey.
- The German subsidiary faced a significant decline in sales, leading to the suspension of manufacturing and a write-off of non-moving inventories.
- The company is incurring monthly losses of approximately 9 crores at its German subsidiary due to fixed overheads.
- Despite improvements in Indian operations, the consolidated EBITDA was impacted by lower profitability of overseas subsidiaries.
- The company is facing challenges in the European market due to intense competition and undercut prices from Chinese manufacturers.
Q & A Highlights
Q: What was the realization during the quarter, and how does it compare to the floor custom duty being imposed?
A: The realization was INR127.6. Compared to the import price custom duty, it was about 7-8% lower than China, which has the highest duty. However, compared to Vietnam and Malaysia, the realization was higher. (Respondent: Unidentified_6)
Q: What do you mean by revision of capital proposal? Are you revising the overall capacity downward?
A: We are reviewing the CapEx program and reaffirming the revision upwards, not downwards. (Respondent: Unidentified_6)
Q: What is the monthly burn rate at the German subsidiary, and can you elaborate on the one-time employee cost and inventory adjustment?
A: The inventory write-off was about 16 crores. The monthly loss is approximately 900,000 EUR, or 8.5 to 9 crores. We are trying to reduce costs by putting employees under a government-paid training program. (Respondent: Unidentified_6)
Q: What does the future look like for the German subsidiary and exports in general, given the current uncertainties?
A: The new German government plans heavy investment in solar manufacturing, which should lead to strong solar manufacturing programs. The European Union mandates that 40% of solar photovoltaic installations must come from European sources, which is promising for our company. (Respondent: Unidentified_4)
Q: Are we expecting any exports from China to be rerouted through Malaysia, given that Malaysia has no duties?
A: Exports from Malaysia have increased, but they are aware of the prices in India and have adjusted their prices accordingly. The competition from Malaysia is marginal, and we are able to maintain prices close to Chinese prices. (Respondent: Unidentified_6)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
