Moser Baer India Limited announced financial results for the quarter ended March 2017.
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Unedited press release follows:
Moser Baer announces January-March’17 Results
May 23, 2017 — Moser Baer India Limited (MBIL) today released its financial results for the January-March’17 quarter. The financial results for the period ended March’17 were approved by the company’s Board of Directors, at its meeting in New Delhi today.
Highlights:
• Total standalone income stood at INR 1,155 million for January-March’17 quarter.
• While the traction remained healthy for OEM customers, the domestic market for optical media, earlier impacted by the effects of demonetization, now shows recovery.
• Production and sales volume of optical media during the quarter was severely impacted by liquidity constraints at the operating level resulting in lower revenues and pending order book.
• Solid State Media (SSM) segment recorded 12% (consolidated) increase in the quarterly turnover Y-o-Y. However, margins have been under pressure due to input price increase.
• In the Solid State Lighting (SSL) segment, the Company continues to strengthen its brand presence in the retail market and achieve regular growth in the in B2B and B2C segments through its sustainable quality.
• In the SSL segment, the Company’s brand received approval by the Bureau of Standard of Bhutan for supplying in Bhutan and sales have already begun.
Trends & Outlook in Storage Media:
• Net Sales stood at INR 1,011 million.
• Product mix and contracted ASPs are expected to be stable in the coming quarters.
• Reduction in fixed costs post consolidation in plant operations.
• Market consolidation likely to lead to stable volumes in the domestic market.
• Scarcity of NAND due to technology transition from 2D to 3D expected to result in slow down in SSM sales over the next quarter
Trends & Outlook in Solid State Lighting
• Leveraging the market opportunity through continuous launch of new products by in-house R&D team.
• Strengthening channel sales by appointing distributors and focusing on increasing brand visibility in the marketplace, mainly in South and North region.
• Strategic sourcing giving an edge to Moser Baer LED products to become cost competitive.
Financial Update:
The Company is pursuing resolution of debt with secured lenders and FCCBs holders. It is in the process of negotiation with the bondholders to re-structure the terms of the bonds. This is now subject to the approval of secured lenders, which is expected to be settled only along with the resolution of secured debt. Meanwhile, the company has applied to the RBI for extension of time.
Trends in the Solar Photovoltaic business:
• As of March 31, 2017, India had installed 12,163 MW of utility scale solar PV capacity as per Bridge to India Report. Capacity under development as of March 31, 2017 stands at 12,381 MW. Tamil Nadu, Andhra Pradesh and Telangana have emerged as the fastest growing states.
• However, volatility in DCR orders and delay in disbursement of approved government subsidy under SIPS continues to impact the manufacturing operations and limit cash flows and volumes.
• PV operations impacted by liquidity constraints and external market factors. However, based on customer support, 14.63 MW of Moser Baer manufactured module sales were made during the quarter along with 3.26 MW of Moser Baer manufactured cell sales.
• The Solar Subsidiaries continue to engage with their secured lenders to seek support for their revival. Despite the lender consortium (under CDR) withdrawing support, the solar subsidiaries continue operations based on customer support and management’s efforts at optimizing cash flows.
Commenting on the solar business of the company, K N Subramaniam, CEO, Moser Baer Solar Limited said: “2016-17 has been a landmark year with cumulative solar installations of 12,163 MW till March 31, 2017 with net additions of 5,401 MW in 2016-17.
The Government has been keen to promote Domestic Solar Manufacturing to get benefits of substantial foreign exchange savings on account of imports, employment generation and also to minimize dependence on mass scale imports from China and to attain self sufficiency for this critical item. We expect new policies to promote domestic manufacturing which are currently under consideration.”
About Moser Baer India Ltd.
Moser Baer India Limited headquartered in New Delhi, is a leading global tech-manufacturing company. Established in 1983, the company has successfully developed cutting edge technologies to become one of the world’s largest manufacturers of Optical Storage Media like CDs and DVDs and Solid State Media. The Company has also entered into the emerging energy efficiency lighting segment. Over the years the company has entered into exciting areas of technology manufacturing and is a market leader in the high growth photovoltaic space. It is the only company worldwide to receive the prestigious 5-star rating from TÜV Rheinland for 3 years in a row (2009 – 2012) maintaining highest standards of quality in manufacturing PV modules. Moser Baer India has emerged as one of the most credible brands focused on hi-tech manufacturing and R & D activities. It is continuing to unfold the next generation innovative technologies that will catapult India into a respectable manufacturing hub.