Any current/future capex/capital investment/strategic investment?

The company is completing remaining capex on a new tempering line by Q4 FY '24, enabling processing of all glass sizes and thicknesses more efficiently while discontinuing an old tempering line for cost savings. Plans to set up an additional solar-wind captive power plant expected to start generating savings from end of Q2 FY '25 to reduce power costs. Expansion plans exist but currently on hold due to pricing pressures and industry challenges; any future capacity increase (potentially up to 2,100 tons/day from current 1,000 tons/day) will be considered based on government policies and mar

Future growth expectations in sales/revenue/volumes?

Significant growth expected in domestic solar glass manufacturing in India over the next 2 years as new large capacities come online. Expansion plans are on hold currently due to price pressures but will be considered once clarity on antidumping duties (ADD) and basic customs duty (BCD) emerges, likely by early 2024. Increased domestic production expected to reduce import dependence (currently 80% imports) and improve pricing power. Indian solar installations anticipated to rise once pricing stabilizes and ALMM (Approved List of Models and Manufacturers) mechanism is reinstated from April 2024

Future growth expectations in earnings/operating earnings/profits/EPS?

Borosil Renewables is optimistic about long-term industry growth, expecting tremendous expansion over the years. They anticipate improvement in operational performance and continuous efforts to control costs and improve productivity. Earnings and margins are currently pressured due to dumping and absence of duties but expected to improve once basic customs duty (BCD) exemption ends by March 31, 2024. Expansion plans are on hold currently but can resume depending on government actions on antidumping duty and BCD; expansion decisions expected by Q4 FY24 (Feb–Mar 2024). Exports, especially in mar

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Borosil Renewables LtdQ3 FY23Industrial Products

Borosil Renewables Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹545P/E: 21.4Market Cap: ₹7.0K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 4

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Significant growth expected in domestic solar glass manufacturing in India over the next 2 years as new large capacities come online.
→Expansion plans are on hold currently due to price pressures but will be considered once clarity on antidumping duties (ADD) and basic customs duty (BCD) emerges, likely by early 2024.
→Increased domestic production expected to reduce import dependence (currently 80% imports) and improve pricing power.
→Indian solar installations anticipated to rise once pricing stabilizes and ALMM (Approved List of Models and Manufacturers) mechanism is reinstated from April 2024.
→Export markets, including Europe and the U.S., expected to improve following governmental protective actions against dumping imports.
→Capacity expansion in Germany is ready to proceed quickly when conditions improve.
→Long-term outlook is bullish with tremendous industry growth anticipated over the years.

Margin guidance

Category 4

→Borosil Renewables is optimistic about long-term industry growth, expecting tremendous expansion over the years.
→They anticipate improvement in operational performance and continuous efforts to control costs and improve productivity.
→Earnings and margins are currently pressured due to dumping and absence of duties but expected to improve once basic customs duty (BCD) exemption ends by March 31, 2024.
→Expansion plans are on hold currently but can resume depending on government actions on antidumping duty and BCD; expansion decisions expected by Q4 FY24 (Feb–Mar 2024).
→Exports, especially in markets with antidumping duties against China, offer better margins (30%-40% premium over domestic prices).
→Captive green power projects will reduce power costs, improving margins.
→Overall, management foresees short-term pain but is bullish on long-term profitability and growth prospects following resolution of regulatory uncertainties.

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Fundraise plans

The transcript does not mention any current or future plans for fundraising through debt or equity. Key points relating to capital and expansion are: - The company has ongoing capital expenditure, such as the new tempering line completing in Q4 FY24 for improved efficiency. - Expansion plans, including possible capacity increases in India and Germany, are under consideration but no firm decisions or announcements on funding have been made yet. - Any decision on expansion and associated funding will be taken after clarity on government policies by February-March 2024. - Management is focused on operational improvements and awaiting government action on duties before finalizing major investment plans. - No explicit mention of raising funds via debt or equity in the near future was made during the call.

Order book

The transcript does not provide specific details about the current or expected order book or pending orders for Borosil Renewables Limited. However, relevant insights on demand and market conditions include: - Domestic solar glass demand subdued due to suspension of ALMM and inventory buildup by customers awaiting price stabilization. - Solar installations in Q2 FY24 were 1.7 GW, down from 3.1 GW last year’s same quarter. - Exports, especially to Europe, are facing challenges due to dumped pricing, leading to lower sales volumes. - Demand in Turkey and the U.S. remains weak or yet to pick up significantly. - Company is hopeful government interventions (like reinstating duties) will improve market conditions. - New capacities in India and Germany are ready for potential expansion once market improves. - No explicit order book or pending order numbers disclosed in this call.

Capex plans

Yes

→The company is completing remaining capex on a new tempering line by Q4 FY '24, enabling processing of all glass sizes and thicknesses more efficiently while discontinuing an old tempering line for cost savings.
→Plans to set up an additional solar-wind captive power plant expected to start generating savings from end of Q2 FY '25 to reduce power costs.
→Expansion plans exist but currently on hold due to pricing pressures and industry challenges; any future capacity increase (potentially up to 2,100 tons/day from current 1,000 tons/day) will be considered based on government policies and market situation, likely decided by Feb-Mar 2024.
→European subsidiary in Germany has land, buildings, and utilities ready; capacity expansion can start immediately if decided, estimated to take about 18 months to commission.
→Recycling business is under exploration with no finalized plans or timelines yet.

How does Borosil Renewables Ltd rank vs peers in Industrial Products?

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1Borosil Renewables Ltd

Rev 3Mar 4

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