Borosil (BOROLTD) Q4 19/20 earnings summary

Executive summary

• The Scheme transferred the scientific and industrial products and consumer products businesses, plus subsidiaries, effective February 12, 2020; FY20 includes a full year of these businesses, making FY19 comparisons non-comparable.

• COVID-19 lockdowns disrupted operations in late March; consumer sales and the normally strong March period for scientific products were particularly affected.

Financial highlights

• Consolidated FY20 revenue from operations was ₹635.85 crore vs ₹365.04 crore; PBT was ₹43.58 crore vs ₹33.47 crore, and PAT was ₹35.32 crore vs ₹24.96 crore. Comparatives are not like-for-like.

• Standalone revenue was ₹590.82 crore vs ₹345.32 crore; PAT was ₹41.15 crore vs ₹23.66 crore, and EPS was ₹3.61 vs ₹1.27. Comparatives are not like-for-like.

• Consolidated basic and diluted EPS was ₹3.14 vs ₹1.35; total comprehensive income was ₹34.98 crore vs ₹24.91 crore.

Outlook and guidance

• SIP is expected to grow 10–12% in the medium term under normal business conditions; Indian lab glassware market growth was estimated at 5–6%.

• Near-term government spending constraints may weigh on SIP excluding Klasspack; Klasspack could benefit from increased vial and ampoule demand linked to a COVID-19 vaccine.

• CPD aimed to protect prior-year sales; management saw opportunities in appliances, stainless steel and food-carrying products, but considered growth unlikely amid market uncertainty and China sourcing pressures.