Borosil Renewables Reports Rs. 8.64 Cr Loss in Q3 FY25

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

Indian solar glass manufacturer Borosil Renewables recently announced its financial results for Q3 FY25. The company reported an EBITDA of Rs. 20.89 Cr, a significant decline from Rs. 52.88 Cr in the previous quarter. As a result of the lower EBITDA, Borosil posted a post-tax loss of Rs. 8.64 Cr in Q3 FY25, compared to a Profit After Tax (PAT) of Rs. 12.62 Cr in Q2 FY25 and a post-tax loss of Rs. 11.04 Cr in the same quarter last year.

However, the company experienced a 3.6% increase in total sales, which rose to Rs. 275.28 Cr from Rs. 265.61 Cr in the preceding quarter. In its financial report, Borosil Renewables stated, “The imposition of a 10% Basic Customs Duty (BCD) on imports from 1st October 2024 did not impact the landed prices of imported glass, as the Free On Board (FOB) export prices of imports were reduced by 18% by Chinese suppliers.”

Additionally, the company’s investor presentation showed that the consolidated revenue for the quarter stood at Rs. 361.49 Cr, with an EBITDA of Rs. 5.0 Cr. This is compared to a revenue of Rs. 373.09 Cr and an EBITDA of Rs. 34.57 Cr in the previous quarter. The significant decline in EBITDA is attributed to the lower profitability of Indian operations, mainly due to reduced selling prices.

Effect Of China Factor

The decline in the landed price of imported glass was primarily driven by a sharp and continuous drop in FOB prices from China throughout Q2 FY25, further exacerbated by a decrease in ocean freight costs in Q3 FY25. Additionally, non-recurring expenses, including Rs. 4.59 Cr for a repair and Rs. 2.01 Cr for rights issue expenses, had a negative impact on EBITDA.

The company’s export sales, including those to SEZ customers, totaled Rs. 16.02 Cr in Q3 FY25, which accounted for 6% of the turnover, compared to Rs. 34.39 Cr in the previous quarter, when exports represented 13% of turnover.

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Export Markets Showing Lower Demand

The report highlighted that all major export markets are experiencing lower demand due to a lack of local manufacturing, with cheap modules imported from China dominating installations. Some key highlights of the financial results are:

• Total sales for 9M FY25 grew by approximately 2.6%, reaching Rs. 782.71 Cr, compared to Rs. 762.95 Cr in the previous quarter. The EBITDA stood at Rs. 103.48 Cr, which remained relatively stable compared to Rs. 105.81 Cr in the preceding quarter. The slight decline in EBITDA was primarily due to lower sales realization, as average ex-factory selling prices dropped. The average ex-factory price during 9M FY25 declined to Rs. 108/mm, compared to Rs. 113/mm in the previous quarter.

• Export sales, including those to SEZ customers, amounted to Rs. 72.84 Cr in 9M FY25, accounting for 9% of turnover. This compares to Rs. 186.23 Cr in the previous 9M FY24, when exports made up 24% of turnover. The decline in export sales is attributed to lower demand in major export markets, where Chinese-imported modules dominate due to the lack of local manufacturing.

• The company posted a profit after tax of Rs. 0.33 Cr in 9M FY25, compared to a post-tax loss of Rs. 3.16 Cr in 9M FY24.

In an investor presentation, the company mentioned, “This growth was achieved despite a steep decline in average ex-factory prices, which fell to Rs. 105/mm per sq. meter from the preceding quarter’s average of Rs. 115/mm per sq. meter. This increase in sales by value was made possible by a 14% rise in overall sales volume compared to the previous quarter.”

The gap in costs with Chinese producers continues to weigh down Borosil as realisations fail to exceed costs.