Borosil Renewables (BORORENEW) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a 6% sequential increase in net revenue, driven by higher sales volume and improved selling prices, with consolidated net revenue reaching ₹370.79 Cr and a positive EBITDA of ₹35.91 Cr, marking a significant turnaround from the previous quarter.

• EBITDA margin improved to 12.3% from 5.8% in the previous quarter, though still below last year's 23.8%-28% margin.

• Post-tax loss narrowed to ₹3.64 Cr from ₹13.37 Cr in the previous quarter, reflecting operational improvements, but consolidated PAT remained negative at ₹14.24 Cr.

• The company is India's first and largest solar glass manufacturer with a combined capacity of 1,350 TPD (~8.5 GW), including a German subsidiary, and a global presence with 18.45% of revenue from exports.

• Focus on innovation and ESG, including patented antimony-free solar glass and a 22% lower carbon footprint than industry norms.

Financial highlights

• Standalone Q1 FY25 revenue rose 2% year-over-year and 6% sequentially to ₹241.4 Cr; consolidated Q1 FY25 revenue increased 5% year-over-year and 31% sequentially to ₹370.79 Cr.

• Standalone PAT was a loss of ₹3.64 Cr, compared to a profit of ₹13.68 Cr in Q1FY24, but improved from a loss of ₹13.37 Cr in Q4FY24; consolidated PAT loss was ₹14.24 Cr, higher YoY but improved QoQ.

• Average ex-factory selling price rose to ₹105.5 per mm per sq. m, up 6% sequentially but down 17.9% year-over-year.

• Export sales were ₹22.42 Cr (9.3% of turnover), down sharply from ₹72.13 Cr YoY due to demand slowdown in Europe and Turkey.

• Overseas subsidiaries posted net standalone revenue of ₹129.4 Cr and negative EBITDA of ₹3.8 Cr, a marked improvement from the previous 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.

• Positive trends in prices and production efficiencies are expected to continue, with further improvement anticipated in upcoming quarters.

• Rights issue of up to ₹450 Cr is planned, mainly to reduce debt in Indian and overseas operations, with launch expected by end of September or early October and regulatory approvals in progress.

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

• Solar glass demand outlook remains positive, driven by expected growth in module manufacturing and supportive government policies.