Shares of Borosil Renewables were locked lower by 5 percent on 17 February after its wider quarter-ended December quarter loss announcement. The company’s net loss surged to ₹30 crore, compared to its loss of ₹15.90 crore reported by it within the same quarter of last year.
The company’s bottom-line was impacted by rising input costs, poor operating performance, and price pressures. It had reported negative EBITDA of ₹1.1 crore versus its previous-year reported EBITDA of ₹20.60 crore. The decline in profitability is actually on account of declining selling realisations of its domestic business.
Despite the loss, top-line of Borosil Renewables grew by 9.4% to ₹361.5 crore versus ₹330.4 crore of corresponding quarter of last financial year
At 12:38 PM, shares of Borosil Renewables were quoting on NSE at ₹475.
Imports Impact and Pricing Pressure
The company stated that the 10% basic customs duty (BCD) imposed on imports from October 2024 had no significant impact on the prices of imported glass. This was due to:
- A sharp 32% drop in solar glass FOB (Free on Board) prices from China between June and September 2024.
- Lower ocean freight costs in Q3, further reducing import costs.
As a result, cheap imports from China and Vietnam lowered domestic prices, putting pressure on Indian manufacturers.
Decline in Export Sales
Borosil Renewables’ sales on the export market, including Special Economic Zone supplies, were at ₹16.02 crore in Q3, or 6% of revenues overall. It is lower compared to ₹34.39 crore of the previous quarter, where company revenues had seen 13% coming through exports.
The company also indicated that demand within its most important markets of sale decreased due to restricted domestic manufacturing and increased importation of lower-priced Chinese photovoltaic modules.
With pricing challenges and import pressures continuing, there will likely be immediate challenges facing the company, though there is long-term potential of India’s renewables market.
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Source: Moneycontrol.
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