Borosil Renewables (BORORENEW) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 results showed sequential improvement in revenue and margins, but profits remained under pressure due to lower selling prices and export demand slowdown, with consolidated net revenue at ₹370.79 Cr and positive EBITDA of ₹35.91 Cr, a turnaround from the previous quarter.

• Standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the board, with statutory auditors finding no material misstatements.

• The company is India's first and largest solar glass manufacturer, with a global presence and a focus on innovation, sustainability, and ESG.

Financial highlights

• Standalone Q1 FY25 revenue rose 2% year-over-year and 6% sequentially to ₹241.4 Cr, with EBITDA margin at 12.3% (up from 5.8% in Q4FY24, down from 23.8% in Q1FY24); standalone PAT was a loss of ₹3.64 Cr, improved from a loss of ₹13.37 Cr in Q4FY24.

• Consolidated Q1 FY25 revenue increased 5% year-over-year and 31% sequentially to ₹370.79 Cr; EBITDA margin at 7% (down from 9.7% YoY, up from -7.4% QoQ); consolidated PAT was a loss of ₹14.24 Cr, improved from a loss of ₹53.32 Cr in Q4FY24.

• Export sales dropped to ₹22.42 Cr (9.3% of turnover) from ₹72.13 Cr YoY due to European demand slowdown.

• Standalone and consolidated EPS for Q1 FY25 were ₹(0.28) and ₹(0.99), respectively, both down year-over-year.

• Overseas subsidiaries posted net revenue of ₹129.4 Cr and negative EBITDA of ₹3.8 Cr, improving from the prior quarter.

Outlook and guidance

• EBITDA margins are expected to settle between 20%-25% post-imposition of basic customs duty, assuming stable prices and freight rates.

• Solar glass demand outlook remains positive, driven by higher landed costs post-duty and strong domestic demand from expanded solar module manufacturing.

• Expansion plans, including a 1,100 TPD fourth furnace, are on hold pending clarity on import duties and price volatility.

• Rights issue of up to ₹450 Cr planned to reduce debt in Indian and overseas operations, with regulatory approvals in progress.