Solar Glass Manufacturer Borosil Renewables’ Profit Dips by 29% YoY in Q2 FY23
The dip in profit was due to increase of raw material procurement cost
Borosil Renewables, an India-based solar-glass manufacturer, recorded a profit after tax of ₹241.89 million ($2.97 million) for the second quarter (Q2) of the financial year (FY) 2023, a YoY decrease of 29.2% compared to ₹341.12 million ($4.20 million).
The company reported a net income of ₹1.71 billion ($21.07 million) for the quarter, a YoY increase of 3.01% from ₹1.66 billion ($20.45 million). Out of the total income, the company’s revenue from operations accounted for ₹1.69 billion ($20.82 million), an increase of 4.96% compared to ₹1.61 billion ($19.3 million) in Q2 2022.
The reduction in profits was attributed to the company’s increased expenses, especially in procuring raw materials for production.
The total expenses accounted for ₹1.39 billion ($17.13 million), out of which procuring raw materials cost the company ₹407.12 million ($5.01 million), and ₹378.06 million ($4.6 million) was spent on power and fuel. Other miscellaneous costs accounted for ₹398.47 million ($4.9 million) during the quarter.
1H FY 2023
For the first half (1H) of FY 2023, Borosil Renewables reported a profit after tax of ₹542.96 million ($6.6 million), a YoY dip of 27% from ₹737.36 million ($9.08 million).
The company recorded a total income of ₹3.44 billion ($42.3 million), an increase of 11.6% from ₹3.08 billion ($37.9 million) in 1H FY 2023. Out of the total income, the company earned ₹3.39 billion ($41.7 million) in revenue from operations, a YoY increase of 14.14% compared to ₹2.97 billion ($36.57million).
The company’s total expenses amounted to ₹2.71 billion ($33.37 million). The cost of raw materials accounted for ₹799.81 million ($9.8 million), while another ₹723.7 million ($8.91 million) went towards power and fuel expenses.
The company in October completed the acquisition of a 86% stake in Interfloat Corporation and Glasmanufaktur Brandenburg, entities engaged in the solar glass manufacturing business, sales, and distribution, in Europe. The acquisition was conducted through Borosil’s wholly-owned subsidiaries overseas, Geosphere Glassworks GmbH and Laxman AG. With the acquisition, Borosil’s solar glass manufacturing capacity is expected to grow to 750 tons per day from 450 tons, an increase of 66%. The acquisition was completed for an upfront consideration of €7.50 million (~$7.78 million).
The company paid €1.50 million (~$1.56 million) to the existing minority shareholder, Blue Minds IF Beteiligungs, as consideration against waiver by Blue Minds of its rights under the current shareholders’ agreement. Geosphere stepped in as a creditor to Interfloat to the tune of €2.48 million (~$~$2.57 million) by taking over a factoring agreement executed between GMB and HS Timber Group.
For its first quarter (Q1) for FY 2023, the company reported revenue of ₹1.69 billion (~$21.31 million) in Q1 FY 2023, an increase of 25% compared to ₹1.36 billion (~$17.14 million).