Borosil Renewables’ Q3 Profit Dips 52% to ₹224 Million on Higher Input Cost
The cost of materials consumed increased YoY by 30% to ₹405.96 million
The profit of solar glass manufacturer Borosil Renewables slumped by 52% year-over-year (YoY) to ₹223.8 million (~$2.7 million) for the third quarter (Q3) of the financial year (FY) 2023. The financial performance was impacted due to increased input costs.
The cost of materials for Borosil in the quarter increased 30% YoY to ₹406 million (~$4.8 million).
For the October-December quarter, the total expenses jumped by 31% YoY to ₹1.4 billion (~$17 million).
The India-based company’s total income for the third quarter came in at ₹1.7 billion (~$20.6 million), a decline of 1.4% YoY.
The company said that during the quarter, the overseas wholly owned subsidiaries of the Borosil, Geosphere Glassworks GmbH, and Laxman AG acquired an 86% stake in GMB Glasmanufaktur Brandenburg GmbH (“GMB”) and Interfloat in Europe.
The acquisition involved an upfront consideration of €7.5 million (~$8 million) and the deferred consideration equivalent to 20% of the EBIT (earnings before interest and taxes) of GMB and Interfloat for calendar years 24, 25, and 26. Consequently, both GMB and Interfloat have become step-down subsidiary companies of the Company with effect from October 21, 2022
9M FY 2023
Higher input costs also impacted the profit for the first nine months of the fiscal year as it fell 36% YoY to ₹766.1 million (~$9.2 million), compared to ₹1.2 billion (~$14.3 million).
During this period, the overall expenses of Borosil for the initial nine months (9M) of the year rose by 31.4% YoY to ₹4.1 billion (~$49.7 million).
During the first 9M, the cost of materials for the company stood at ₹1.2 billion (~$14.6 million), up by 38% from ₹886.05 million (~$10.6 million) in 9M of FY 2022.
The company’s total income for 9M stood at ₹5.2 billion (~$62.1 million), up by 7% YoY compared with ₹4.8 billion (~$58.1 million) during 9M of FY 2022.
Borosil Renewables posted a 31.4% increase in Depreciation and Amortization expenses at ₹322.8 million (~$3.9 million) compared to ₹319.7 million (~$3.9 million) during the same period in the previous year.
Borosil Renewables recorded a profit ₹241.9 million ($2.97 million) for the second quarter of 2023, a YoY decrease of 29.2% compared to ₹341.1 million ($4.20 million).
Last October, Borosil Renewables completed the acquisition of an 86% stake in Interfloat Corporation and Glasmanufaktur Brandenbur (GMB), entities engaged in the solar glass manufacturing business, sales, and distribution in Europe.