BOROSIL RENEWABLES LIMITED (BORORENEW) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Boros Hill Renewables Q2 F527 earnings call hosted by GoIndia Advisors LLP. As a reminder, all participant line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Tanishka Tanvi from GoIndia Advisors. Thank you, and over to you, ma'am.

Thank you, Saisha. Good evening, everyone, and welcome to BoruSyl Renewables Ltd. I name all to discuss Q2 and H1FI27 results. We have the senior management of the company on call, Mr. P.K. Kheruka, Executive Chairman, Mr. Ashok Jain, Director, Mr. Melvin Moses, Chief Executive Officer, Mr. Sunil Bhoomta, Full-Time Director and CFO, Mr. Dhawan Patel, AVP Investor Relations. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company may face. May I now request Mr. T.K. Kheruka, sir, to take us through the company's business outlook and financial highlights. Subsequent to this, we will open the floor for Q&A. Thank you and over to you, sir.

Good afternoon. Welcome to the Borosil Renewables Q2 Financial Year 27 Investor Call. The standalone and consolidated results for the quarter and half year ended September 26th as approved by the board today and an updated presentation have been uploaded at both the stock exchange and company's website. We will now discuss the operations of company on a standalone and consolidated basis. Standalone results, half yearly, sales at 801.8 crores, including Rs. 15.4 crore sales of solar kits, registered a rise of 12.8% versus Rs. 710.7 crores in first half of financial year 26. Coming to the quarterly sales, total sales during the quarter stood at 396.2 crores, including solar kits, which accounted for Rs. 14.1 crores. Solar glass sales stood at Rs. 382.1 crores vs. Rs. 378.4 crores in Q2 FY26 and Rs. 405.7 crores in Q1 FY27. There was negligible EBITDA in sales of solar kits. EBITDA Rs. 116.34 crores stood at 30.4% based on sales of solar glass. Versus Rs. 125.5 crores in Q2, financial year 26, at 33%, and Rs. 142.0 crores in Q1, financial year 27, at 33.8%. There was a small drop in margins compared to Q2 FY26 due to lower production. I should inform our investors that in the quarter that went by, we had a decline in solar glass volumes, which was because of furnace maintenance and also a price decline of 2.8% as collection of fuel surcharge on sales was reduced, looking at the correction in gas prices. The production was also being adjusted by the production team to correct small anomalies and come to a finer tuning, which would eventually result in higher production, which worked very well. And production has gradually increased from middle of September to levels which are higher than at any time before in the history of the company. During the month of October, we have had exceptionally good production, which we hope is going to continue for the rest of the quarter. With more positive results in the current quarter, we feel it could be possible to make goods a shortfall in the rest of the year. The average extractive selling price during quarter 2 FY27 was Rs. 155.9 per mm as compared to 147.5 per mm in quarter 2 FY26. The surcharge levied to offset the fuel cost increase after outbreak of West Asia war was partially rolled back in July, looking at decline in gas prices on the hope of improvement in war situation. However, this was short-lived. Disturbances resumed after a brief time, taking prices of oil and gas to higher levels as compared to before, putting an additional cost burden on the company operations. We have recently taken steps to raise the fuel surcharge to offset this. As production and selling prices have normalized in the current quarter, we expect the margins to move back to higher levels at the end of this quarter. Solar manufacturing continues to show strong growth on the back of government support. The module manufacturing capacity on the support by way of PLI, BCD, and ALMM1 has reached 233 gigawatts as against annual installations of about 62 gigawatts on DC basis. Solar cell manufacturing supported by ALMM2 is leading to speedy increase in capacity which is expected to rise to about 75 GW by 2027 from about 38 GW currently as significant capacities are under installation. We expect the annual solar installations to maintain at a level of 45 GW, which translates to 62 GW on DC basis, while other emerging sectors like EV, data centers, and green hydrogen may take this to a higher level going forward. Thus, solar glass demand for domestic installations can be expected at least at 62 GW, leaving a huge supply gap. In view of supply gap and its customer relationships, the company does not foresee any challenges in selling the additional production. Work on an ongoing 60% capacity expansion, batting production facilities of 600 tons per day at our existing location is in full swing, and we expect the commissioning of the project towards the end of Q4 FY27. While the existing furnaces are operating at full capacity, we may have to take Furnace 1 and 2 for a temporary shutdown of 75 days each for rebuild, which may happen in the first half of the next financial year, 27-28. The company is exploring further opportunities for the next round of growth. Now I come to the consolidated results for the quarter. The overseas subsidiaries, including the step-down subsidiaries, did not generate any net revenue for Q2 FY27 and had a negative EBITDA of Rs. 0.11 crore as against net revenue of Rs. 0.43 crores and negative EBITDA of Rs. 5.08 crores in Q2 FY26. The consolidated net revenue for the quarter stands at Rs. 396.7 crores and EBITDA of Rs. 116.22 crores as compared to net revenue of 378.88 crores and EBITDA of Rs. 120.42 crores in quarter to FY27. With that, I would now like to open the floor to questions that you may have.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj Kumar from Kodak Neo. Please go ahead.

Thank you. Thanks for taking my question. Good evening, sir.

Mr. Pankaj, please go ahead.

Am I audible? Yes. Hello. Am I audible?

Since Mr. Pankaj is not audible, the next question is from the line of Deepak Perswani from Swan Investments. Please go ahead.

Yeah. Hi. Thank you for the opportunity. Sir, just wanted to check it out. Hello. Am I audible? Can you check whether there is any problem in the line? People are not able to connect?

Sure, sir. Please hold for a minute. Mr. Deepak Burswani.

Hello. Am I audible? Yes, sir. Yeah, you are audible.

Yeah, please carry on.

Yeah, thank you for the opportunity. So I just wanted to check it out regarding this production disruption which we saw. If you can also quantify what was the revenue loss in this quarter and what was the revenue and EBITDA loss in this quarter because of this. And secondly, there seems to be, power and fuel cost seems to be related on the higher side if I were to look at the percentage of revenue. Just wanted to check it out whether incremental basis, these all rise in power and fuel and other raw material costs. Is it getting passed on to the customers at the current juncture? And net of fuel searcher, how are the realizations shaping up in the industry? If you can throw some light on all these aspects.

Yeah, the production was down by close to 4.5% because of this maintenance. But the happy part is that after the repair is done, we have not only come back to the earlier levels, but we are actually exceeding, as Chairman Thurde has just said in his opening remarks. So that shortfall which has happened will be made good. As regards the cost of gas and other items, the cost actually, as you know, initially in the beginning of July, because there was some understanding between the countries who are engaging into the war, that there will be some peace. And that lived for only about two weeks or so. And after that, the prices again resumed. They are running at an even higher level. So, when the prices were down, and there was a challenge in terms of module manufacturing because of the LMM2, we agreed to reduce the fuel surcharge. Both that the fuel cost has remained elevated, which has also impacted our profitability. But in October, we have again gone back to the customers to come back to the fuel surcharge. So, this was a pretty moderation, you can say, which happened in the last quarter. But we hope to be back to the previous levels in terms of the earnings. And also the turnover will increase because the production is rising even higher than the earlier levels. Okay.

And would it be clear to say, on the broad basis, there could be a revenue loss up to the extent of 20 crores because of the shutdown or maintenance?

Well, this was about 15 crores, I think.

Okay. And secondly, I think on the new project, we have revised a capex to the extent of 11 and 8 odd curves.

Yes, that was by adding, by adding equipment.

Okay. And sir, if you can share a little more detail on that part, that would be really helpful.

So we had in the last board meeting, which happened in September, we had decided that this scope of the project needs to be widened a little bit to incorporate some costs which were not budgeted earlier. And a small part was regarding the exchange fluctuation, which happened because of the devaluation of rupee vis-a-vis dollar. So that was about, say, 20% of the increase, about, say, 150 crore, about 20% was the increase on account of exchange. But the major part was on account of basically two factors. One was regarding some items of cost saving, fuel cost saving, which will have its own payback. That was a major part of the increase. And the second item was regarding building in more redundancies against the power failure. Because power, constant and robust power supply is very important in this industry. And our fluctuations can cause serious disturbances in the furnaces. So we have to build even higher amount of redundancy in the project so that we don't suffer any losses on account of power. So that also is about 25 crores or so. So, all this put together, the board has decided to increase the project cost by 150 euros, which will, of course, be funded internally and without any increase in the loan amounts from the banks.

Thank you, and wish you all the best.

Thank you, Deepak.

Thank you very much. The next question is from the line of Kaushal Sharma from Equinox Capital Venture Private Limited. Please go ahead.

Hi, sir. Very good evening. I just want to know about your realization per unit in this quarter as compared to the last quarter.

Realization, you are saying? Realization per square meter?

Yeah, per square meter per square meter basis.

So, this quarter was 155.9 rupees, and last quarter was 160.3 rupees. So, there was a drop of about 4.4 rupees per square meter, which happened because the reduction in fuel surcharge age was communicated, and now we are back to the original numbers.

Okay, so in Q3, you are expecting the original number of 160?

Well, we are gradually inching towards that, and by the end of quarter, we will expect that the number is achieved.

And sir, our new furnaces would be commenced by venture 27. So, are we on track on this?

Can you say loudly? We are not able to hear properly.

I am saying, sir, your new furnaces would be commenced by the end of this year. So, are we on track on this?

Yes, we are on track to fire the furnaces in February and March, respectively. There are two furnaces, one we want to fire in February, another in March, and we are on course to be on time to do this.

Okay, and we are expecting some 75 goals in our capacity in the next month, because of this capacity addition?

I'm sorry, you could not understand what you said.

So, you have told in your original remark that 75 days, your furnaces will be on hold in the first of the next year.

So, the earlier furnaces, like what we call them, furnace 1, SG1 and SG2, have been in operation for 7 years. And after 7 years, they can fall due for repair or rebuild any time, depending on the health of the furnaces. So, currently, we have done the repair work already, and we expect the furnaces to continue production until at least March 27. We will again take a continuous, we will, of course, be monitoring continuously, but we'll take a call in February, March, whether the furnaces have to be put down in the next financial year, and gradually, one by one, we will plan that, depending on the wealth of the furnaces, of course. So, this will be most likely done in the next financial year, first half. And whenever we start doing that for 75 days, there will not be any production from that furnace. So, we will do furnace first like SG1 and then do furnace 2. In the meantime, our additional production from the new plant will be already coming in. So, we will not be out of production or we will maintain our supply to the customers seamlessly.

There would not be a production loss like in this quarter as we have seen in the next year.

Until March. Current share, we do not expect any production loss. It is not planned nor expected.

The low production is because of this issue like repair and maintenance of the existing furnaces in this quarter, in the last quarter, sorry.

Yeah, maintenance and all adjustment of parameters to fine-tune them to deliver a better performance. So both have been simultaneously done, which seems to be working very well, more than our expectation at this point in time. And we will make good the loss which has happened in the month of July and August in the rest of the year.

And we will be able to maintain our 31-32% of the EBITDA for the current year in the next year.

Yes, we hope to do that. Based on current parameters, yes.

Got it, got it. Thank you very much for answering my question.

Thank you.

Thank you very much. The next question is from the line of Sanyam Dhoka from Frontwave Research. Please go ahead.

Hi, sir. Good evening. Thank you for the opportunity for this question line. Sir, based on our calculations, we expected that around next year, we'd have 60% increase in revenue with the 60% increase in our capacity. So, but with this SG-1 and SG-2 going down for 75 days each, that brings down our growth from 60% to 48%.

Actually, both these cornices, after repair, are expected to give higher output. So, that remains to be seen whether there will be any decline or not. It may not be.

So, it may not be. So, we are saying that it would be giving out more output than it is like giving out currently. So, the growth remains constant even by them being down. All right. My second question would be, sir, about the 600-odd crores that we have in our investments. Sir, how are we handling that? I see they are in liquid mutual funds and debt markets. So, are we seeing any higher realization from them?

So, we are investing that money temporarily in secured investments because it's a project money. And we, of course, do not want to enter into any kind of, from the perspective of safety of the money. So, we try to increase revenue to the extent it is permissible within the guidelines given by the board. And off late, we have been trying to invest into, say, AAA securities as well, where we can inchef the yield by about, say, half percent or so. But all said and done, the yield is going to be, say, within, say, seven and a half percent, seven, seven and a half percent.

So, right now, it's at seven, seven and a half percent is, like, what these 600-odd crores are yielding us, right?

Right now, they are at a little less than 7%, but we want to raise it to 7.3% to 7.5%, which we are doing already.

Okay. So, AAA securities is like our next thing to add on because of, you know, the report rate and everything that's going on right now.

Yes, please.

All right. Thank you, sir. Thank you so much.

Thank you very much. The next question is from the line of Saket Kapoor from Kapoor. Please go ahead.

Yes, sir. Namaskar, sir. Hope I'm all right. Sir, firstly, pertaining to the previous reply, so we have planned shutdown lane day during the first quarter of next financial year. The volume loss would be made up during that year itself, and for the next year, we can look forward 1,600 ton capacity to be fully available to us. That is what your reply was, sir?

As I think this is a speculative answer, we cannot guarantee that we will make up the volume loss. This is a question of what we are planning to do or what we are attempting to do. Our company is making glass at a higher rate than anywhere else in the world. Per square meter, we have the most efficient glass melting anywhere in the world. And we are going to make it even more efficient than what it is now. So, this is a planned operation with a lot of thought and understanding. So, I hope that it works out. So, this is all speculative that we expect that we would be able to make up whatever we have lost at the time of shutdown by the operations of the furnace afterwards.

Okay. And, sir, in your opening remark, you also mentioned that there were some underlying factors which give us the confidence that the expanded capacity will be also easily sold out. Can you just reiterate those three, four factors for the sake of repetition?

Yeah, so actually the demand for solar glass continues to be robust at about 62 gigawatt modules are being made. So, and the domestic supply is very limited at this point in time. The domestic players are able to supply about 18 gigawatt and rest is imported. So, when we come into production by, say, end of March, even at that point in time, the demand will be higher and supply will be much lower than demand. So, there is no challenge in terms of the demand. Now, depending, or since we are the largest player, we have been the first mover, we have relationship with the customers, we are hopeful and we are, say, confident that we will be able to sell that volume, extra volume, without any problems. And to do that, we are already in discussion with the customers and also additional customers whom we have not been able to supply so far because of the limited capacity to onboard them so that when it comes to the furnace, we do not have any challenge in terms of the customers' availability and to whom to sell to. So, that confidence is available with our team, and due to which we are confident that there will not be any issue in terms of selling the extra volume.

Nice, sir. Sir, when we look at our capital work-in-progress closing balance, as on September, it is at 349 crore. So, this is up from 107 crore for March. So the entire C-14N is pertaining to the 600 ton capacity for which we have envisaged 1100 as the total amount?

Yes, the entire amount is related to the project, and a lot of LCs are in place for 120 croats plus, which for its material is in pipeline. We have also paid a lot of advances. So, all that is for the project only. And we are expecting delivery of machines now. Building is more or less complete. So, we will have the construction in or we will have the installation starting somewhere in the end of the quarter.

In fact, for the entire project, what kind of debt have we looked into and have we tied up, and what is the rate and what is the thought process for the debt?

So the entire funding is already in place. 1100 crores will be funded internally by 800 crores, and 300 crores is the date which we had signed much earlier. So, we have not yet drawn the date as such, but the equity is already arranged. We did preferential issue of warrants and preferential issue of equity. And the money is already with us. So, it is fully funded and the company does not foresee any challenge in meeting the fund requirement.

Okay. Just to reiterate, sir, you mentioned that the kind of outage we had in Q2, I have been overcome. The yields have improved for the month of October. So, H2 looks, as of today, on better efficiency terms and re-returning to our previous EBITDA margin trajectory of 31% plus. That should be the likelihood, barring n-4% circumstances.

You're right.

Right, right, sir. Yeah.

Okay, sir. Thank you very much.

Ladies and gentlemen, in order to ask a question, please press star and one on your touchtone telephone. I repeat, in order to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Adit from AG Capital. Please go ahead.

Hello, sir. Am I audible?

Yes, please.

Okay. Sir, I had majorly two questions. One was, wanted some color on the rooftop solar business, and how do we, you know, intend to scale this new business?

Root of business.

Root of business, as we have been mentioning, it is more to use the experience and relationship which we have, and the brand, Orosil, which is quite well recognized in the households, to develop a business in our adjacencies of making solar glass. So, this is how we have started. It has received very good response from the customers. In fact, a lot of distributors are very excited to associate with Borosil in this business. We have started in four states initially, where the demand, we perceive demand to be good. Appointment of distributors has been done. Some projects have already signed up for the current quarter. Response is quite encouraging. Our equipment we have supplied in terms of the power output has been very encouraging. Customers are actually giving us signed letters that your modules have been performing very well and all, and they are getting much better generation of power. So, as you know, Borosil is organized for its quality, maintenance of its quality and service, which is what we are providing over here. Although module manufacturing is done by many other people, but our quality control, our checks, our bill of material specification, everything is so robust that we are able to deliver a better product. And we hope to build this up to a greater height. But after we have reached a particular size, we will start thinking more about it, maybe by end of the financial year, which will allow us to come back to you. How do we proceed for the next round of growth in this rooftop business?

Okay, okay. So, sir, we are seeing a good response, right?

Yes, extremely good. Okay, okay.

Sir, one was that how sustainable is the company's profitability, sir, and considering, you know, the volatility in gas prices and other energy costs, Like what, how do we see the profitability being affected or not?

So, you see, for last six, seven quarters, we have been delivering very robust numbers, EBITDA in the range of 30% or thereabouts. And even after the gas price increase, which has been prevailing for last two, three quarters, we have been able to maintain the momentum. So, obviously, there is a buoyancy in the market. And the demand is high, which is why we are able to get good working. Our anti-dumping duty, which is there against China and Vietnam, which is in place until December 29. So we don't foresee any challenge in terms of maintaining the margins. The domestic solar gas capacity remains short of the demand, which gives an assurance that the prices will be maintained and there should not be any challenge in maintaining the margins.

Okay. Okay, got it, sir. And just one more question, if I can ask, what is the expected revenue contribution from the new capacity that we have? And any margin improvement that we can see from that?

So, we are expanding by 60%. So, similar percentage rise we can expect in the turnover. In terms of the EBITDA margins, I think we should be happy to have additional 2-3% operating leverage out of the new facility because of the distribution of overheads over a larger production. So, that's the range we can probably look at.

Thank you, sir. Thank you very much.

The next question is from the line of Pankaj Kumar from Kota Kneo. Please go ahead.

Yes, sir, on this raw material cost, and if you get the gross margin in this quarter, we have seen the quarter and quarter decline in the gross margin, and the raw material cost has gone up first. So, what could be the reason behind that? I understand that there was a shutdown for 15 days, but the raw material costs have also been increased.

Yeah, so raw material cost, basically there are two, three cost drivers. One is the prices of soda ash have been slightly increased by the various vendors in India. And after a lot of negotiation, we have got very good price, but still it is higher than the previous quarter. So we have accepted certain price increase from the soda ash manufacturers. The second item is the import of dolomite and limestone, which we have to do because the quality and grade which we require to maintain our quality of glass. We have to get from imported sources. Of course, partially we mix it with the local material, but for the imported item, we are paying a much higher price. As you know, in the last couple of months, the freight rates have gone up from China, and one of the items which is imported from China, the freight cost is substantially higher. So these things are leading to a sudden rise in the cost. We, on our part, are making an effort to minimize the base cost or raw material cost. We are also taking steps to change the domestic and import mix in favor of domestic. We are currently doing about 30 to 40% domestic for say dolomite, but we want to reverse it in the next couple of months. So that will save us from this cost rise. In terms of the sodas, we have to live with it because this has been done after a lot of negotiation and we don't foresee it to come down soon. But we will try to economize on other funds by which we can offset these costs increases. Like, say, if the production which is increasing substantially compared to the previous quarters, it will pay for itself in terms of the, or it will offset the increase in the costs.

So these are not, these we cannot pass like what we have seen in case of gas where we have a surcharge or something.

In fact, there is no such arrangement of fuel cost surcharge also because the prices were being charged by us in par with the landed cost of imports. But this was like one-off situation, force-measure situation, where the war was thrown on the entire world, and this became impossible for us to bear. So, we requested the customers to bear this additional charge. And we were fortunate that during that time, in that sense, that the rupee devaluation took place, which increased the cost for the imported glass also for the customers. So, they were able to agree to this. But as we are selling the goods as per the market price, there is no cost plus or pass-through mechanism for the other items of cost. So we have to improve our efficiency, we have to do productive improvements in order to offset these costs which we are doing actively.

So, with this, all these productivity measures, will we be able to cover that? Because if you see the quarter and quarter basis, there is a 400, roughly 500 points decline in the EBITDA margin. And the gross margin is around 400 points decline. So, I mean, whether we would be able to go back to this 30% plus kind of EBITDA margin?

Yeah, we already said that this production deficit which took place is already out of the way, and in fact we are producing more, so obviously it will generate more output and more sales. The second important item is about the selling price, so we also have gone back to the earlier levels of fuel surcharge, which again protects the margin from that angle, and with the other measures like sourcing the product indigenously in terms of raw materials, like dolomite and all. We will be having those savings. So, we expect to do much better actually, but we will certainly be able to reach the earlier margins.

Sir, you said you have increased the level of production with the modification which you did in the recent capacity shutdown that you had in the second quarter. So, what kind of increase in capacity that we saw?

See, this production dipped by about 5%, but we are actually up by about 15% from that. So, obviously, we are higher by 8-10% compared to the earlier levels, but this is very early to commit that number to you on a sustained basis. We are trying to work around it and trying to maintain that level of production. So, that means whatever loss has taken place in two months, not only that will be recovered in terms of the plan for the year or plan for the next half, but we might do better, actually.

And, sir, we have also seen the increase in the employee expenses. So, this is largely for the new capacity or there is some gone off in that?

So, headcounts were increased in between for certain extra work which we had to do around this furnace repair time and all. And also, there were some more people engaged to do additional activity on the ground in terms of maintaining the production flow. But this was temporary, I think, and we should be able to come back to the earlier levels. For the new project, we are not yet hired so many people. We are going to do it now.

And one more question that I may ask. In terms of the future of capital allocation plan, of course, with this CAPEX, we will be done with what we have announced. So, have we thought of the future CAPEX or the growth plans if we have worked out on that?

For the future, the

option of increasing further production in solar glass is always there. We are meanwhile exploring other options. The company Borosil is well known for specialized for specialty glass. And when we entered the field of solar glass in 2008, it was a brand new field and few people had heard about it. And this was a very, very sunrise kind of a product. As time goes by, two things have happened. Other people have entered, number one. Number two, the other thing that has happened is our skill in its production and reduction of cost has also taken place. So we are much more efficient today than we have ever been in the past. So, we do have, we continue to be very well positioned if we were to increase in solar glass. Meanwhile, the country has a new requirement. There are many new products which are hanging over our heads, and we are exploring many, many different opportunities. Perhaps within the end of this financial year, we should be a little better poised to take a call on what to do next. For the time being, our energies are focused on getting production up and running in the two new furnaces that are coming up and stabilizing on that. So I think in terms of time, our time will be spent a lot on ensuring that production takes place on time and good quality and good quantity.

So, that being said, we are actively evaluating opportunities as they come by, and we are taking help of others also, like external consultants, to scout for the opportunity to suggest areas of growth, which will be suitable to borosil renewables, and also looking at the investment size and other things. So, this work should get over before end of the financial year, and we should be in the position to at that time take a call, because we will remain net cash positive by end of March as we foresee, and the next financial year's cash flows will be available for us to deploy for any new growth areas, on which we are already working upon, and we should be able to come back before end of financial year.

Thank you very much. The next question is from the line of Daj Malhotra from Adjiz Global. Please go ahead.

Yeah, Namaskar, sir, and seasoned greetings to all of you. My question was also centered mostly around, you know, FI27, you have given a fair enough outlook. FI 28 also, even after the SG 1 and 2 production slowdown, or, you know, going into maintenance for 75 days each, you have said we'll mostly make up and probably be able to do the 50-60% growth by the end of the year. That's really nice to hear. As the previous participant asked, you know, what's beyond 28? And you've explained you're looking at newer options. That's good. Just if you can add some more color here. Also on rooftop solar, that's the second question. In the rooftop, we were anticipating a revenue of about 100 crores from the first year. My numbers might be a little off, you can check. And you are saying that the response is, initial response is good. How big is this space? You know, and because it is a B2C arena, are the margins much lower? Will it be quite dilutive? Just some light on this as well. Yeah, and once again, wish you all a happy Nibali.

Thank you so much. Surigarh Yojana itself is very large, and the country has done only about, say, 50 lakh homes until now, and other 50 lakhs are proposed to be done. So there is a huge opportunity there which can be captured, and besides that, the C&I demands are very high. People are, large companies are even doing 100 megawatts and 120 megawatts of projects. We have entered for a smaller segment. Like in C&I also, we are doing the smaller segments. But we are being cautious about it, and we are building up slowly and gradually. So we can expect more contracts to come in. We already have a lot of other contracts in hand, which will be executed in this quarter. In terms of the margins, yes, you're right. The margins are low because it's more of a trading. It's also that there are a lot of competitive strengths playing in this business because a lot of players are there in the market who are offering the same products. Same solutions, but Borussia, of course, gives a much better product in that sense. So, margins will remain low, and they will not be supporting in terms of the growth in margins, but once we have a certain level of operations, then we can probably earn better margins and make it more profitable for the company.

Does this answer your question?

Yes, sir, it does, and what about, you know, any light on, in time beyond FY28, once we have ramped up the capacity, is it only the efficiency improvement that we expect going forward, or are we, you know…

FY28, we will have the production from the new line for the full year, and after that, whatever growth will come will be coming from the new investment, which we hope to get into by March 27th. So whatever we plan, we'll have certain period, certain gestation, implementation period, after which the new area of new stream of revenue will come. So depending on what kind of project we get into and what are the timelines, it will be seen at that point in time. But for 2728, I think that 1600 ton production is what we can expect. And for ensuing here from FY29, there could be something coming out from the new project, which whenever we decide and implement it, that will generate additional revenue.

I have to say something here, that as a company in corporate philosophy, we do not believe in overstretching ourselves to the point that management suffers. So, with a 60% increase in production, which is envisaged for the financial year 27-28, that's going to be a big jump over what we are doing today. And we need to manage that and land on our feet after taking that kind of a rise. And we do not feel that it's appropriate for our investors based on the trust that they have on us to be reckless in any way. So, yes, we will proceed in time and we absolutely have every intention of continuing to expand in profitable directions.

Understood, sir. Thank you so much.

Thank you.

Thank you very much. The next question is from the line of Saket Kapoor from Kapoor. Please go ahead.

Yes, sir. In response to a participant wherein you mentioned that there were some price changes in terms of soda. So, firstly, sir, out of the total raw material basket, what percentage constitute soda as a contribution? As a percentage of RM?

As a percentage of RM, it is about 30-32%.

And what have been the price high, sir, if we take that into 2-1 into faster?

Price high is about 10% here.

There has been a 10% price high from June versus September quarter. And sir, secondly, sir, when we look If you looked at our P&L, there is some purchase of stock and trade component also for 14 crores. What would you attribute this number to?

So this basically represents the solar module and solar inverters which we have bought for this solar kit business. So this is the purchase cost of those items. Against which the sales is reflected in the sales. Sorry? Please?

Yeah, no, no, you continue, sir, sir.

Again, switch the sales are already included in the revenue.

Okay, so the 396 crore ensures around 14-15 crore worth of the solar kit trading number.

That's right, that's right.

Okay, and what is the thought process now, sir, going ahead? We will continue with this exercise or what are we trying to garner going ahead with solar kit as a...

This is a very promising avenue for the company, because if we are able to generate a strong sale of solar kits, then this is going to be very good for our sales of solar glass, Because the people from whom we are buying the solar modules currently, they always use our glass. So, this strengthens our supply chain position in the market. And also, it brings us in direct touch with the customer to know exactly what the customer needs, what is valuable to the customer. And so, we become more market-friendly as a company.

Okay, so more of an awareness exercise this is translating into and this is more of the entire solar module kit that we supply to the EPC player, that is what the end product is?

Yes, it is also deploying our glass into the manufacture of modules because we are buying these modules from our own customers to whom we sell glass.

Okay, and this run rate will continue with the economy run rate or so we can see the ramp up there also, this 14, cutting 14 numbers?

Right now, we are very cautious in selling. We are not overselling at all. In case you open the floodgates, I think our sales will rise dramatically. We are not doing that. We are doing it in batches so that we evaluate the sale, we evaluate the customer response. We go back to the customer, asking how was his experience, what is his ongoing experience. We compare that with sales of other kits by other vendors, because finally it is the customer who is staying for it. And this is, there is a huge outlay from the government under the Pradhanamanti scheme for solar households. And this is what Borushil specializes in, because in our other businesses, you know, we are customer-facing directly. So, here again, we are going into a customer-facing situation.

Two small points. Sir, particularly pertaining to the warrant issuance, so our equity is completely, when the full dilution has happened, there are no pending warrants or money pending from your investors or from the promoters?

No. Everything has been realized. Everything, it's all canned up. Some people who had been issued warrants were not able to pay the remainder of the fee, and according to the SEBI law, we were obliged to forfeit the initial deposit, which we have reported.

And in the case of promoters, it was always equity issuance, not warrants, so they had already paid in February 25 the entire money against the equity shares. So as of date, nothing is outstanding from anybody.

And no further dilution in the entity, since we have already tied up for everything for the capex that we have seen.

Yes, at the moment, in the foreseeable future, there is no dilution.

Okay. And lastly, about the tax rates, sir. Now, taking into account the current, and now we have only the standalone, as also the company has similar numbers. So how are entity taxed at what rate?

We are taxed at 25%.

Okay, so when we look at our cash flow, our direct tax payment is to the tune of 39 crore. So, that is equitable to that, for September, it is 45% advance tax that is to be paid. So, this amount is applicable to that number of 39 crores?

So, basically, we are liable to pay 25% tax on our income, and I do not have exact understanding on that 39 crores which you are saying. So, if you really want…

Cash flow is… If we look at the cash flow part, under the direct tax refund paid net, the number is 39 crores for September 26. Previous year, it was 42 crore. This is where the cash flow is paid number, I think, of the submission. So, my point was that, yeah, yeah.

So, you can write to Mr. Dhaval, our investor relation, AVP. He will get it clarified from the finance team, and will answer your question on this.

Yes, sir, on the subcharge part of the power and fuel subcharge part, what we could understand is that it was a recovery exercise that we did because of the unexpected increase in the gas, which was again reversed in the next quarter. Now, since again the prices and how are the price trends currently for the input cost for GATS currently, and whether again we can go ahead with the pass-on to our customers, what is the thought process currently?

So, the earlier levels, that means the levels prevailing in Q1, have been breached again in the last one month or one and a half month, because you know how the Brent price and how the gas price has gone up to $215 in case of Brent. And when we passed on the price to customers, that time it was at about $100 or so. When we gave the price reduction, it went down to $75, $80 or so. So this has been a moving number. But as we speak, the current grade prices are higher even compared to quarter one. So, we are trying to come to the quarter one level at least for the time being, and we'll see whether there is an opportunity to even close that because the cost per millimeter, the increase which we saw in the first quarter, that has been exceeded already in the current month. So we will have to work on that whether we can increase by small percentage higher than the earlier fuel surcharge. But the good part is that in case of the consumption or whatever parameters which we can work upon in terms of operational efficiency, the team has been able to deliver substantial savings which will offset this difference. Also, this power production from the captive power has been helping us to reduce our cost. In the last six months, we have saved close to 10 crore rupees on that. So this is also helping us to cut down on the cost. So we have to balance it out between the selling price and operational efficiency and optimizing the cost and try to ensure that we come to the level of at least 30% EBITDA going forward.

Right, sir. Thank you. So we'll take a call going ahead. Pass on the call. No call. Pass on as of now. Right. Thank you once again, sir, and best wishes to the team for Prosperous Dipavli and a new summit coming ahead for all of us. Thank you very much.

Thank you very much. As there are no further questions, I would now like to hand the conference over to management for closing comments.

Thank you very much, dear investors, for all your questions. Thank you for studying the balance sheet and our performance. And we always look forward to the future with great anticipation and excitement. And so far, it seems that everything is looking very good for us, for the future, the country at large. So, thank you very much and good luck to everybody. Wish everybody a very happy Diwali. Thank you very much.

On behalf of Borosil Renewables, that concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you.