- Borosil Renewables’ Q1/FY2023 net revenues improved 25% annually with strong demand
- EBITDA margin declined from last year to 30.2% due to cost inflation and high costs of raw materials and energy
- Company is holding back on its Interfloat transaction as of now as the latter’s furnace reported leakage recently
Indian solar glass manufacturer Borosil Renewables Limited (BRL) saw its net revenues in Q1/FY2023 (period ending June 2022) growing 25% annually to INR 1.7 billion ($21.35 million) thanks to strong demand in the domestic as well as export markets. At the same time, it experienced rise in input costs.
Soda ash and natural gas cost increase globally in the last 2 quarters had Borosil experiencing its partial impact in the last quarter, and ‘significantly higher impact’ in the reporting quarter. It has been dealing with the same by increasing production and achieving cost savings in raw materials and electricity.
During the reporting quarter, its EBITDA of INR 513 million ($6.44 million) had a corresponding EBITDA margin of 30.2% that declined from 50.1% in Q1/FY2022 due to cost inflation and high costs of raw materials and energy.
On August 17, 2022, the anti-dumping duty imposed by the Government of India on Chinese solar glass imports is coming to an end, but Borosil said it expects a new notification for the continuation of the duty for another 2 years.
Borosil was producing 49 tons per day (TPD) on an average basis during FY2022 for an annual production capacity of 450 TPD, and selling entire output. As per its expansion plans, it expects to add a 3rd furnace to expand solar glass production capacity by 550 TPD by October 2022 which will expand its total annual capacity to 1,000 TPD.
The 4th furnace with 1,100 TPD is proposed to be added by Q3/FY2024. Full capacity will be available in CY2025, which will take its total operational capacity to 2,100 TPD—equivalent to 12.5 GW module capacity (see Indian Solar Glass Maker To Strongly Expand Capacity).
“Global supply chain bottlenecks have delayed the commissioning by three months. We now anticipate that the project can be commissioned by October 2022. We expect to take up the next expansion by way of SG4 of 1,100 TPD in the immediate future, and approval of shareholders has been sought for raising equity up to INR 11 billion ($138 million) by issuing new shares,” shared the management.
The company made news back in April 2022 with plans to take over Germany’s Interfloat Group to grow its solar glass capacity by 300 TPD. The transaction is not yet complete due to leakage in the furnace of Glasmanufaktur Brandenburg GmbH (GMB). Management is holding back till it assesses the impact of the same on the transaction (see Largest European Solar Glass Maker Interfloat To Be Acquired).
“Most nations are trying to raise domestic production of solar cells and modules, and also trying to reduce dependence on Southeast Asia, which places India in an advantageous position for exports as well, particularly due to the fact that there are no serious capacities in other markets to produce solar glass,” said Borosil’s Executive Chairman PK Kheruka. “Our step about having manufacturing in Europe through Interfloat, GMB fits in well. All-in-all, we remain bullish on the growth.”