Borosil Renewables’ Q4 Profit Up 80% YoY Driven by Higher Solar Glass Sales
The company posted a 39% growth in revenue during FY23 at ₹8.94 billion
Solar glass manufacturer Borosil Renewables’ profit peaked by 80% year-over-year (YoY) to ₹105.01 million (~$1.2 million) for the fourth quarter (Q4) of the financial year (FY) 2022-23, mainly driven by higher solar glass sales and business expansions in India, Europe, and Turkey.
The solar glass maker’s Q4 revenue came in at ₹3.09 billion (~$37.3 million), up 82% YoY, primarily on the gains recorded by the company’s overseas subsidiaries.
Borosil’s subsidiaries in Europe and Germany recognized a gain on a bargain purchase of ₹541.87 million (~$6.5 million) during the quarter, which is included in the total income for the period.
Owing to certain furnace-related repairs at its Europe-based subsidiary GMB Glassmanufaktur Brandenburg GmBH, the total expenses for Q4 increased by 21% YoY to ₹2.8 billion (~$36 million).
The company said that the repairs are completed, and commercial production from the furnace has resumed since May 2023. Further, the production capacity of the furnace has increased from 300 tons per day (TPD) to 350 TPD due to the advancement of certain processes carried out during cold repairs.
Also, during the quarter, Borosil directed funds to set up a new furnace of 550 TPD for the production of solar glass at its existing plant in the Bharuch district of Gujarat.
The commercial production from Gujarat’s new furnace started on February 23, 2023. With this, the capacity of the company to produce solar glass has increased from 450 TPD to 1,000 TPD.
The solar glass maker’s profit fell by 57% to ₹706.37 million (~8.5 million) for FY23 as compared to ₹1.66 billion (~$21.5 million) in FY22, primarily owing to the repair-related expenses for the acquired entities in Europe.
Borosil Renewables’ total expenses increased 83% YoY to ₹8.13 billion (~$98 million) during FY23.
The company posted a 39% growth in revenue for the year at ₹8.94 billion (~$108 million) compared to ₹6.44 billion (~$83.66 million) in the previous year.
Speaking on the company’s operations in India, Europe, and Turkey, the Director of Borosil Renewables Ashok Jain said, “We maintain our focus on the export market subject to the limitation of growth there sometimes, but of course, we have to increase our presence in the domestic market as we grow the volumes because the demand and what is the manufacturing activity in India is growing very fast as compared to other countries, other markets but maybe after one or two years USA will become another growth area, but as of now we concentrate on Turkey, Europe, and India.”
Last October, Borosil Renewables acquired an 86% stake in Europe’s Interfloat Corporation and Glasmanufaktur Brandenburg (GMB), entities engaged in the solar glass manufacturing business, sales, and distribution.
Borosil’s profit slumped by 52% YoY to ₹223.8 million (~$2.7 million) for the third quarter of FY23, significantly on higher input costs.