Borosil Renewables (BORORENEW) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw improved performance over the previous quarter, with higher sales and EBITDA margins driven by production efficiency and increased selling prices due to higher ocean freight for imports.

• India's first and largest solar glass manufacturer with 1350 TPD (~8.5GW) capacity and a market cap of ₹6535 cr as of Nov 2024.

• Global presence with 18.45% of revenue from exports, serving over 100 domestic customers and expanding in Europe, Americas, and MENA.

• Focus on innovation, including patented antimony-free glass, high transmission, and advanced coatings for solar applications.

• Unaudited results for the quarter and half year ended 30th September 2024 were reviewed and approved by the Board and Audit Committee, with auditors issuing an unmodified review report.

Financial highlights

• Standalone Q2FY25 revenue at ₹264.94 cr, up 10% sequentially but down 5% year-over-year; EBITDA at ₹52.88 cr, up 78% QoQ and 99% YoY.

• Standalone PAT at ₹12.62 cr in Q2FY25, reversing a loss of ₹3.64 cr in Q1FY25.

• Consolidated Q2FY25 revenue at ₹372.42 cr, flat sequentially and down 7% YoY; EBITDA at ₹34.57 cr, up 33% QoQ but down 7% YoY.

• Overseas subsidiaries reported net revenue of ₹107.48 cr and negative EBITDA of ₹16.85 cr, down from ₹129.40 cr and negative ₹2.38 cr.

• Export sales in Q2FY25 were ₹34.39 cr, 13% of turnover, up from 9.3% in the previous quarter.

Outlook and guidance

• Expansion to 2450 TPD (~16 GW) planned, but new capacity addition is on hold pending anti-dumping duty decision; decision expected in Q4 FY25, with 18 months to production post-approval.

• Solar glass demand outlook remains positive due to strong growth in module manufacturing and government targets.

• Management expects the impact of Chinese price reductions and excess inventory to affect the current quarter, but anticipates normalization by December as inventories are consumed.