Shares of Borosil Renewables were locked in the 5 percent lower circuit on February 17 after the company's net losses widened on year in the December quarter. The company's net loss swelled up to Rs 30 crore for the December quarter, a sharp downturn from a loss of Rs 15.90 crore in the same period last year.
The company's bottomline bore the brunt of rising input costs, weak operational performance and pricing pressure. The glass product manufacturer also reported an EBITDA loss of Rs 1.1 crore, a sharp contrast to the gain of Rs 20.60 crore that it clocked in the year ago period. The sharp decline in EBITDA was primarily driven by lower profitability in Indian operations, resulting from declining selling prices.
That aside, the company's revenue for the quarter grew by 9.4 percent year-on-year, coming at Rs 361.5 crore, as compared to Rs 330.4 crore in the same period last fiscal.
At 12.38 pm, shares of Borosil Renewables were trading at Rs 475 on the NSE.
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The company stated that the imposition of a 10 percent basic customs duty (BCD) on imports from October last year did not materially impact the prices of imported glass. This was primarily due to a sharp and continuous drop in free on board (FOB) prices from China in Q2, further compounded by a reduction in ocean freight costs in Q3.
Exporters from China and Vietnam slashed solar glass FOB prices by as much as 32 percent between June and September, bringing domestic prices to unsustainable levels and threatening industry survival, the company stated in an exchange filing.
Export sales, including those to SEZ (Special Economic Zone) customers came at Rs 16.02 crore in Q3, making up for 6 percent of total revenue, compared to Rs 34.39 crore in the preceding quarter when exports made up 13 percent of the topline.
The company also highlighted that all major export markets experienced lower demand due to limited local manufacturing, as cheap modules imported from China continue to dominate installations.
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