Borosil Renewables FY23 Q3 Results- Sales Stagnate, Third Furnace Goes Online

Solar glass manufacturer Borosil Renewables has reported its Q3 results for FY23. Sales have stagnated, with the company reporting total income of Rs. 170.9 crores during the period ended December 31, 2022 as compared to Rs. 171.3 crores during the period ended September 30, 2022. However, with the new furnace SG3 started during January, the next quarter results are likely to show a healthier topline growth, even as margins are expected to remain under pressure.

Net profit during the quarter came in at Rs. 22.4 crores versus net profit of Rs. 24.2 crores for the period ended September 30, 2022. The same during the corresponding quarter in December 2021 was at Rs 45.7crores. Readers might recall that this was the time when the firm was enjoying peak margins, as well as the benefit of countervailing duty on imports. The duty has not been extended after it ended in 2022.

9 Months Ended FY2023) – YoY Comparison

The company has reported total income of Rs.515.4 crores during the 9 Months period ended December 31,2022 as compared to Rs.482.3 crores during the 9 Months period ended December 31, 2021, a growth of under 7%.

Net profit for the period dropped by 35% to Rs 76.8563 crores for the 9 Months period ended December 31,2022 as against Rs.119.4 crores for the 9 Months period ended December 31, 2021.

For Borosil, besides the start of the third furnace with capacity of 550 tonnes per day, the impact of its European acquisition will also start playing out in the next financial year. Its status as the sole producer of solar glass in India might also be ending early next year, as either of two other ventures in the space come online. While margins have been squeezed, the rise on manufacturing capacity domestically, as well as its strong international linkages will ensure a ready market for all it can produce for the foreseeable future.