Borosil Renewables Limited
Q4 FY25
Call date · May 12, 2025
1 · Management Commentary
Key Positives
- Standalone sales grew 12% YoY to INR1,110 crores, with volume up 10% and improved realizations.
- Q4FY25 standalone EBITDA surged 51.8% YoY to INR180.51 crores; Q4 EBITDA at INR77.03 crores vs INR13.13 crores YoY.
- Domestic demand robust, aided by government support (definitive antidumping duty on Chinese and Vietnamese imports valid till Dec 2029).
- Solar module manufacturing capacity in India at 90+ GW, expected to reach 150 GW by March 2027.
- Additional 16.5 MW solar plus wind hybrid captive power plant to be commissioned in Q2 FY26, expected to meet 65–70% of electricity needs.
Key Negatives
- Export sales dropped sharply to INR91.73 crores (8.3% of turnover) from INR199.78 crores YoY, due to weak European demand and dumping.
- Overseas subsidiaries, especially Germany, reported negative EBITDA (Q4: INR49.67 crores loss) and revenue decline due to suspension of local manufacturing.
- German subsidiary monthly burn rate at EUR 900,000 (~INR9 crores).
Forward Guidance
- Capex plans under review: expansion likely revised upwards from earlier 500 TPD to ~600 TPD, with project cost to be finalized next month; commissioning targeted for Q3 FY27.
- Board approved enabling resolution to raise up to INR500 crores for future opportunities.
- Standalone profitability expected to improve further on higher prices and operational efficiencies.
- Monitoring European market for potential resumption of German furnace operations; cold-end processing to restart soon.
- Demand-supply gap in India to persist, supporting further capacity additions.
- No immediate plans to use hydrogen as furnace fuel; focus remains on efficiency improvements.
2 · Q&A Highlights
Q 1 (Composite): What are the current realizations, and how do they compare to reference/import prices post-antidumping duties?
A (Management):
• Q4 realization was INR127.6/mm; currently trending toward reference price of INR135–140/mm.
• Realizations are now close to Chinese import prices; Malaysia imports are higher but limited in capacity and product range.
Q 2 (Composite): What is the status and outlook for the German subsidiary amid ongoing losses and European market uncertainty?
A (Management):
• Monthly burn rate at ~INR9 crores; efforts underway to reduce costs via workforce training programs.
• Cold-end operations (processing imported glass) to resume, expected to halve EBITDA losses.
• Awaiting German government incentives; optimistic about medium-term demand revival.
Q 3 (Composite): What is the revised capex plan and timeline for Indian expansion?
A (Management):
• Capex likely revised upwards to 600 TPD (from 500 TPD); final decision in 3–4 weeks.
• Commissioning targeted for Q3 FY27; further expansions possible depending on demand.
Q 4 (Composite): How does the domestic demand-supply scenario look over the next 2–3 years?
A (Management):
• Current domestic supply at 15 GW vs demand of 35 GW; demand expected to rise to 40–45 GW, with glass demand >50 GW.
• Even with new capacity, India will remain a net importer, supporting further expansions.
Q 5 (Composite): What is the expected EBITDA margin outlook for FY26?
A (Management):
• Q4 standalone EBITDA margin at 23.5%; management expects 300–400 bps improvement in FY26 as prices rise to reference levels.
Q 6 (Composite): Is there scope for further volume growth and efficiency gains in India?
A (Management):
• Operating at high utilization; incremental volume growth possible via efficiency/yield improvements (targeting 8–10%).
Q 7 (Composite): Are there risks from Malaysian imports or technology shifts (e.g., HJT, TOPCon)?
A (Management):
• Malaysian imports are limited and not a major threat; technology shifts manageable with current/new facilities.
Q 8 (Composite): What is the status of raw material and fuel costs?
A (Management):
• Gas contracts are mostly long-term; some benefit from lower oil-linked prices, but majority is US gas-linked, so overall benefit is marginal.
3 · Other Key Numbers
- FY25 standalone sales: INR1,110 crores (up from INR990 crores)
- FY25 standalone EBITDA: INR180.51 crores (up from INR118.93 crores)
- Q4FY25 standalone sales: INR327.23 crores (vs INR227.33 crores YoY)
- Q4FY25 standalone EBITDA: INR77.03 crores (vs INR13.13 crores YoY)
- Q4FY25 export sales: INR18.9 crores (5.8% of turnover)
- Q4FY25 consolidated net revenue: INR373.54 crores; EBITDA: INR27.36 crores
- German subsidiary Q4 net revenue: INR46.31 crores; negative EBITDA: INR49.67 crores
- Inventory write-off at German subsidiary: INR16 crores
- Preferential issue proceeds: INR204.42 crores (INR185 crores used to repay GMB loan)
- Current Indian solar glass capacity: 2,300 TPD (~15 GW)
- Planned new Indian capacity: additional 15 GW by end-2025
- Standalone Q4 EBITDA margin: 23.5%
- German subsidiary monthly burn rate: EUR 900,000 (~INR9 crores)
- Additional 16.5 MW captive solar+wind plant to be commissioned in Q2 FY26
- Domestic solar module manufacturing capacity: 90+ GW (to reach 150 GW by Mar 2027)
- India’s solar installations in FY25: 25 GW (vs 15 GW YoY)
- Board enabling resolution for fundraise: up to INR500 crores
- Furnace maintenance downtime (when due): 45–60 days
All figures as stated in the call. Where not disclosed, marked as such.