Indian solar glass maker Borosil Renewables Ltd (BRL) improved its net sales in FY2022 (period ending March 2022) by 28% annually to INR 6.44 billion ($83.6 million), thanks to higher volumes and higher average ex-factory prices of tempered solar glass that increased by 12% YoY to INR 133 ($1.72) per mm.
During Q4/2022 (period ending March 2022), its sales volumes improved 2% on annual basis, but 14% lower average ex-factory selling price pulled down sales by 8%. Management admitted to experiencing inflated prices of natural gas, soda ash, packing materials and other commodities along with logistics, but added that the costs were covered with higher annual average realizations for the year.
Higher EBITDA in FY2022 helped record profit after tax of INR 1.66 billion ($21.5 million), an increase of 85%, but the same for Q4/2022 dropped 31% to INR 46.4 crore due to high prices of solar glass.
Management said with high demand for solar glass in both domestic and export markets, it remains completely sold out. To meet demand, the company is expanding its capacity by another 550 tons per day (TPD) to increase its total capacity to 1,000 TPD by 2nd half of 2022 as global supply chain bottlenecks may delay commissioning by 2 or 3 months.
BRL had previously shared its target to scale up its production capacity to 2,100 TPD by CY2024 (see Indian Solar Glass Maker To Strongly Expand Capacity).
To expand is reach to European customers, the Indian company is to acquire Europe's largest solar glass company Interfloat Group of Germany which will bring to the fold 300 TPD capacity (see Largest European Solar Glass maker Interfloat To Be Acquired).
"We expect a significant jump in the demand for solar glass in Europe in view of the enhanced focus by the governments to reduce dependence on Russian gas and Chinese solar components. Many new module manufacturing plants are expected to be commissioned besides capacity expansions by the existing manufacturers," stated the company's Executive Chairman, PK Kheruka.
Management expects Europe to start manufacturing 8 GW to 10 GW annually within the next 3 years which will propel the demand for solar glass in the continent.
In India, the company remains in discussion with several large module manufacturers as they are 'eager' to have long-term supply arrangements to secure supply chain. Currently, India is dependent on imported glass meeting more than 65% if its annual requirements.
Separately, the company also announced entering a power purchase agreement with ReNew Green Energy Solutions Private Limited (RGESPL) and acquire 31.2% equity in a 10 MW wind-solar hybrid project. It will be located in Gujarat and power generated to be exclusively to BRL as captive consumer.
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