Borosil Renewables profit drops 47% as margins contract

Borosil Renewables recorded a net profit (profit after tax) of INR 88.54 crore in FY 2023, a decrease of 47% over FY 2022.

Net revenue from operations was INR 688.17 crore, an increase of 6.8% over FY2022.

The company’s margins were significantly impacted as the cost of inputs went up by 60-70% in the last calendar year, and, on the other hand, selling prices declined to compete with cheap solar glass imports from China.

Specifically, Borosil Renewables attributed the contraction in margins to the expiry of anti-dumping duty on solar glass imports from China with effect from August 2022, a significant drop in international fair trades, and a considerable rise in the cost of inputs like natural gas, soda ash, packing materials, and other commodities.

Exports during FY2023, including two customers in SEZ, grew 14.2% year-on-year to INR 195.25 crore, comprising 28.4% of the INR 688.17 crore turnover. Direct exports increased to INR 181.07 crore from INR 127 crore in FY2022.

Europe and Turkey were the major export markets. The company said it will continue focusing on the export market. It is also looking to increase its presence in the domestic market, as module manufacturing in India is growing very fast.

“The overall demand situation for solar glass continues to look robust in India as the domestic module manufacturing capacities are expected to rise to almost 100 GW in the next two or three years from about 35 GW currently,” stated the company.