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Borosil Renewables Limited Conference Call Summary (May 28, 2024)
Overview • Conference call to discuss Q4 and FY '24 earnings. • Hosted by Axis Capital with key management members. • Officially documented by Company Secretary Ravi Vaishnav.
Financial Performance • Sales Volume: Increased by 79.8% due to new SG-3 plant operations. • Net Revenue: Rose 43.3% to INR 985.87 crores; impacted by a 20.2% decline in average selling prices. • Post-Tax Loss: INR 16.52 crores, down from a profit of INR 88.54 crores the previous year. • EBITDA Margin: Fell from 25.7% to 12.1%.
Challenges and Recovery Signs • Market Challenges: Competition from Chinese and Vietnamese solar glass producers. • Recovery Indicators: Increased domestic solar installations and government initiatives for local manufacturing. • Global Position: Largest non-Chinese solar glass manufacturer.
Financial Highlights • Consolidated Net Revenue: INR 1,369.28 crores. • EBITDA: INR 74.85 crores. • Positive Outlook Factors: • Higher landed costs of solar glass. • Increased domestic demand. • Government support for import duties. • Improved subsidiary performance.
Future Plans • Operational Efficiencies: Focus on enhancing operations and commissioning a new hybrid drop facility. • Fundraising: Plans to raise up to INR 750 crores through rights issue and other securities. • Capital Expenditure: Over INR 100 crores planned for this year.
Key Discussions • Tariff Barriers: Delay in implementation due to Ministry of Finance's focus on elections. • Recycling Initiatives: Acknowledgment of U.S. recycling efforts; India not ready for large-scale recycling yet. • European Operations: Resumed full production after a slow quarter. • Competition: Concerns about lower Chinese prices and lack of government support for Indian manufacturers.
Strategic Insights • Government Initiatives: "Make in India" to reduce reliance on imports. • Acquisition Impact: Increased expenses and debt from recent overseas acquisition. • Domestic Content Requirements: Ongoing discussions with authorities regarding DCR inclusion.
Product Innovations • Introduction of innovative products like 2-millimeter glass and anti-glare glass for airports. • Adaptation to market demands with larger glass formats.
Capacity Expansion • Current Status: Board decided to hold off on capex plans due to investment uncertainty. • Focus: Continued emphasis on glass manufacturing rather than entering the EPC space.
Conclusion • Management expressed optimism for future growth and thanked investors for their engagement.
Borosil Renewables Limited Conference Call Summary (February 8, 2024)
Conference Call Overview • Date: February 8, 2024 • Submission Date: February 10, 2024 • Moderator: Jiten Rushi (Axis Capital) • Key Management Present: • Pradeep K. Kheruka (Executive Chairman) • Ashok Jain (Whole-time Director) • Sunil Roongta (CFO) • Swapnil Walunj (Head of Marketing) • Company Secretary: Kishor Talreja
Financial Performance • Q3 FY24 Standalone Net Revenue: Rs. 240.7 crores (94% increase) • Growth limited to 49% due to reduced sales prices • Export Sales: Fell 67% to Rs. 19.1 crores • Average selling prices down 23.8% year-over-year • Loss Before Tax: Rs. 15.4 crores (compared to profit of Rs. 30.1 crores previous year) • Nine-Month Revenue: Grew 52% to Rs. 758.6 crores • Loss before tax of Rs. 3.8 crores • Challenges: • Impact of import duty exemptions and lack of anti-dumping measures • Struggles in German operations due to competition
Future Plans and Fundraising • Planned Fundraise: Up to Rs. 500 crores for debt reduction • Management's Focus: Reinstating ALMM mechanism to support domestic demand
Q&A Highlights • Customs Duty Exemption: Uncertainty about removal timeline; clarity expected by September 2024 • Independent Power Producers (IPPs): Mixed responses on expansion plans due to low module prices • U.S. Market Exploration: Preference for exporting from India rather than establishing U.S. facilities • Profitability Outlook: Cost optimization ongoing; no significant margin improvements until anti-dumping duties are clarified
Domestic Market Insights • Solar Glass Production Capacity: • Five active players; sixth expected soon • Projected total capacity: 2,600 tonnes per day • Export Potential to U.S.: Indian manufacturers benefiting from better pricing • Domestic Market Growth: Expected to double in three years due to increased module manufacturing
Investor Engagement • Long-term Investment Intentions: Welcoming but uncertain • Production Costs Comparison: Indian production costs decreasing; Chinese prices slightly lower • Module Pricing: Indian-made modules priced at Rs. 16-17 per watt peak; exports to the USA around $0.26-$0.27
Conclusion • Closing Remarks: P.K. Kheruka thanked participants for their engagement.
Borosil Renewables Limited Conference Call Summary
Date and Participants • Date of Call: November 8, 2023 • Submission Date: November 11, 2023 • Hosted by: Axis Capital • Key Management Present: • P.K. Kheruka (Executive Chairman) • Ashok Jain (Whole Time Director) • Sunil Roongta (CFO) • Swapnil Walunj (Head of Marketing) • Kishor Talreja (Company Secretary)
Financial Performance • Q2 FY24 Highlights: • Net Revenue: Increased by 66% to INR 280.2 crores • Sales Volume: Rose by 111% due to new plant commissioning • EBITDA Margin: Dropped from 26.1% to 9.5% • Loss Before Tax: INR 6.9 crores (compared to a profit of INR 32.9 crores last year) • Challenges: • 21% decline in average selling prices • Increased competition from subsidized Chinese imports • Need for government intervention for basic customs duties
Market Outlook • Future Growth: • Positive outlook for domestic manufacturing and solar glass demand • Growth contingent on market stabilization
Government Policies and Duties • Customs and Antidumping Duties: • Current exemption expected to end on March 31, 2024 • Need for a level playing field against Chinese subsidies • Impact on Expansion Plans: • Decline in solar module prices affecting Indian and European markets • Readiness to expand in Europe with favorable government actions
Recycling and Production Capacity • Recycling Initiatives: • Exploring methods but no finalized plan yet • Production Capacity Timeline: • New capacity setup in Germany typically takes around 18 months
Pricing and Market Conditions • Pricing Insights: • Export prices generally higher than domestic due to antidumping duties • Current market conditions and government policies will influence future expansion • Market Share: • Borosil holds only 20% of the domestic market • Emphasis on local production to reduce reliance on imports
Conclusion • Management Confidence: • Optimism about long-term growth despite short-term challenges • Ongoing efforts to improve performance and engage with government authorities for support in the solar glass industry.
Borosil Renewables Limited Q1 FY2024 Earnings Conference Call Summary
Conference Call Details • Date: August 9, 2023 • Transcript Submission: August 16, 2023 • Hosted by: Axis Capital • Key Management Present: • Mr. P.K. Kheruka (Executive Chairman) • Mr. Ashok Jain (Whole Time Director) • Mr. Sunil Roongta (CFO) • Mr. Swapnil Walunj (Head of Marketing) • Company Secretary: Kishor Talreja
Financial Highlights • Standalone Net Revenue: Increased by 40% to Rs. 237.82 Crores • Sales Volume Growth: 56% rise due to new plant commissioning • Export Sales: Surged by 82.4%, making up 30.3% of turnover • Profit After Tax: Decreased by 54.6% to Rs. 13.64 Crores • Challenges: • Average selling prices fell by 8.8% due to competitive pressures • Domestic solar glass market facing low margins and high inventories
Market Dynamics • Domestic vs. International Markets: • Both markets are robust, but Chinese imports are a challenge • Government intervention expected to address competitive pressures
EBITDA and Pricing Concerns • EBITDA Margin Guidance: Not provided due to company policy • Soda Ash Prices: Declining prices impacting profitability • Price Premium: Borosil's glass price premium decreased from 7-8% to around 3%
Capital Expenditure Plans • Routine Annual Capex: Rs. 30-40 Crores • Additional Capex for Furnace Repairs: Rs. 100-120 Crores over the next few years • Market Share: Currently 20% in India, subject to change with new entrants
Manufacturing and Expansion • Solar Module Manufacturing Facility in Germany: • Timeline for expressions of interest by August 15, 2023 • GMB has a unique advantage in solar glass production • Selling Price in Germany: Approximately Rs. 150 per square meter
Conclusion • Management expressed gratitude for investor participation and addressed various inquiries regarding market conditions, pricing, and future plans.
Borosil Renewables Conference Call Summary (May 25, 2023)
Key Participants • Hosted by Axis Capital • Management Team: • P.K. Kheruka (Executive Chairman) • Ashok Jain (Whole-time Director) • Sunil Roongta (CFO) • Swapnil Walunj (Head of Marketing) • Document signed by Kishor Talreja (Company Secretary)
Financial Performance • Net Revenue: Increased by 6.8% to Rs. 688.17 Crores • Sales Volume: Rose by 4.3% due to new plant commissioning • Challenges: • Lower average selling prices • Increased competition from imports post anti-dumping duty expiry • EBITDA Margins: Declined from 41.1% (FY2022) to 25.7% (FY2023) • Profit After Tax: Decreased by 47% • Domestic Demand: Remains strong with expectations for increased manufacturing capacity
Production and Expansion • New Facilities: Expansion in Germany and a captive power project for green energy • Capex Plans: Focus on routine maintenance; future expansions under review • Production Capacity: Full utilization could yield Rs. 1800-1900 Crores turnover
Market Insights • Solar Glass Pricing: Realizations around Rs. 130 despite margin corrections • Cost Structure: Solar glass constitutes 8-9% of conventional module costs, 15% for bifacial modules • Export Market: • 60-65% market share in Europe • 10-15% in Turkey • 1-2% in the USA • Export Contribution: Accounts for 25-26% of sales
Energy Costs and Operations • Energy Sources: • India: 80-82% operations using furnace oil • Europe: Reliance on natural gas • Captive Power Plant: Expected savings of ₹35-40 lakhs per month
Future Outlook • Market Strategy: Focus on strengthening domestic presence while maintaining export growth • Profitability Focus: Cautious about future investments; prioritizing profitability over rapid growth • New Plant Contribution: Expected to add Rs. 550-600 Crores to revenue with 10-15% EBITDA margin
Conclusion • Management expressed confidence in optimizing production and reducing costs while navigating competitive challenges in both domestic and international markets.
Borosil Renewables Limited Q3 FY23 Earnings Conference Call Summary
Call Details • Date: February 14, 2023 • Transcript Submission: February 20, 2023 • Hosted by: Axis Capital • Key Management Present: • P. K. Kheruka (Executive Chairman) • Ashok Jain (Whole-time Director) • Sunil Roongta (CFO) • Swapnil Walunj (Head of Marketing) • Communication Signed by: Kishor Talreja (Company Secretary and Compliance Officer)
Financial Performance • Net Revenue: Rs. 161 crores (4% decline YoY) • Market Share: Approximately 19% in India • Export Sales: 35.9% of turnover • Average Prices: 5% decrease in solar tempered glass prices • EBITDA: Rs. 43.1 crores (26.7% margin, down from previous year) • Profit After Tax: Rs. 22.5 crores (51% drop) • Nine-Month Revenue Growth: 8% to Rs. 500.6 crores
Operational Updates • New Captive Power Plant: Delayed to April 2023 • Production Capacity Plans: Ongoing CAPEX to enhance production, including a new furnace in trial production • Export Focus: Primarily targeting Europe and Turkey
Market Insights • European Market Challenges: High gas prices due to the Russia-Ukraine conflict, but recent improvements noted • Export Realizations: Exports account for about 33% of sales • Competitive Advantages: Local sourcing benefits for Indian customers
Production and Capacity • Current Production Capacity: • India: Increased from 450 to 1,000 tonnes per day • Europe: 300 tonnes per day • Future Plans: Focus on stabilizing SG#3 before further investments
Pricing Trends • Current Pricing: Stable with a recent 5% decline • Domestic vs. Imported Prices: Domestic prices 8% to 10% higher than imports • Future Pricing Strategy: Market demand and supply will dictate pricing
Challenges and Strategies • Cost Pressures: High manpower costs in Europe and volatility in natural gas prices • Competition with Chinese Imports: Focus on competitive production costs and leveraging government support for anti-dumping measures
Conclusion • Management Outlook: Optimistic about future production output and performance, with a focus on innovation and cost control.