Borosil Renewables Plans To Go For Fund Raise

Q2: Borosil Renewables’ Exports Accounted For 13% Of Turnover  

Indian solar glass manufacturer-Borosil Renewable has now planned to for fund raise to strengthen its financial, the company recently told its investors. This has come at a time when the company has reported lower than expected profitability in the latest Q4 and annual financial results.

The company’s Board has also approved the fund raise. Borosil Renewable said that it is proceeding for a Rights issue and the proceeds of the same would be used in prepaying or repaying part of the term loans. As per its own admissions in their presentation before the investors, the solar glass company had a total bank debt of around Rs 537 crore by March 31, 2024. 

Borosil Renewable, one of the few Indian companies into the business of solar glass said that the works related to Rights issue was in progress and the form is set to file the draft letter of offer (DLOF) with SEBI in June. The approval from SEBI and other requisites are slated to be completed within 3-4 months after the filing of the DLOF.

The Mumbai-based renewable energy company is now struggling on the pricing front on account of dumping of cheap solar glass from countries like China and Vietnam. The company reported a 57% higher sales volume than those for Q4 FY23. However, it had also seen reducing selling prices in the quarter on account of the competition from Chinese solar glass prices.

As per the data shared by the company, its selling prices were about Rs 98.8 per mm compared to Rs 132.7/mm in the Q4 of Fy23. This led to an erosion in the profit margins of the company. The firm said that on a sequential basis the average selling prices during the quarter showed a decline of 3.5% over the preceding quarter as the dumping from China and Vietnam continued. 

Borosil had been reiterating on the demand for imposing curbs against the dumping of solar glass by Chinese companies in India to protect the Make in India companies like Borosil. The company’s balance sheet shows that in FY24 it witnessed a Loss before tax of Rs 21.34 crore against a profit before tax of Rs 119.14 crore in FY23. In FY23, the company was able to had better revenues due to better sales prices.

The company however have hinged its fortunes on its exports. As per the financial detailed of the company, Borosil Renewable in Fy24 was able to do a sales worth Rs 199.78 crore from its export market (including to customers in SEZ). This comprised 20.3% of its turnover which was an increase of 2.3% over FY23. Its direct exports stood at Rs 181.2 crore (up from Rs 181.07 crore in FY23). Borosil Renewable now has a global presence with its supplies in US, Canada, Mexico, Brazil, Sri Lanka, Russia and the European Union.