Indian solar glass maker’s revenues soared 85.4% in FY2020-21

Indian solar glass manufacturer Borosil Renewables reported strong earnings for fiscal 2020-21, with impressive gains made mainly in the fourth quarter.

The company’s annual revenue from operations grew 85.4% year-on-year to INR 502.3 crore. Out of this, about 21.67% (INR 108.9 crore) came from exports (including to customers in the special economic zone). This compares to exports worth INR 62.7 crore in FY2020.

The yearly profit-after-tax grew several folds to INR 89.6 crore.

The company’s annual solid performance (despite a Covid-hit first quarter) was mainly driven by high production and sales in the fourth quarter. Sales in Q4 FY2021 stood at INR 195 crore, a 106% growth year-on-year. The quarterly profit-after-tax at INR 66.9 crore was about 16 times higher y-o-y. 

Record sales in Q4 FY2021 were significantly aided by high price realizations owing to an overall global supply crunch following a high local Chinese demand. The demand-supply was driven by higher installations in China and a steady shift towards the use of glass-glass modules (which require two glasses as against just one in a conventional module). 

“95% of the global production of solar glass is controlled by Chinese companies, who determine international pricing. Our company’s large customers follow the price trend of imported glass, and, as such, the company was able to realize higher selling prices from its domestic as well as export markets,” stated Borosil Renewables.

The increased demand meant the manufacturer’s production lines operated at their full capacity of 450 metric tons per day during February and March 2021.

Going forward, Borosil Renewables anticipates [the prices] will likely moderate as supply catches up with demand over the next few months or the market slows down for some reason, which has actually happened after March 2021.