Borosil (BOROLTD) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations grew 23.2% year-over-year to INR 216.8 crores, reflecting strong execution and customer loyalty.

• Operating EBITDA before investment income rose to INR 34.6 crores from INR 23.9 crores year-over-year, with margins improving to 16% from 13.6%.

• Profit after tax increased to INR 9.3 crores from INR 5.0 crores in Q1 FY24, up 87.6% year-over-year.

• INR 150 crores was raised via QIP, with proceeds used for loan repayment and investments in high-quality money market instruments.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board, with auditors finding no material misstatements.

Financial highlights

• Revenue from operations reached INR 216.8 crores, up 23.2% year-over-year.

• Operating EBITDA before investment income was INR 34.6 crores, up from INR 23.9 crores.

• Operating EBITDA margin improved to 16% from 13.6% year-over-year.

• Profit before tax was INR 12.9 crores, up from INR 7.2 crores.

• Net debt reduced to INR 57.8 crores at period end.

Outlook and guidance

• Management expects to maintain a 15%-20% growth trajectory, with potential for upside.

• Margins are expected to trend towards the low 20s over the next 3-4 years as own production mix increases and operating leverage improves.

• Plans to increase penetration in glass storage and opalware, accelerate e-commerce growth, and introduce innovative products.

• Full capacity utilization of the new glass furnace is targeted by next year, with gradual ramp-up ongoing.

• Focus on optimizing capital employed and digital transformation initiatives.