Moser Baer: Fiscal 2Q10 Financial Results

Moser Baer India Ltd. released its financial results for the second quarter of FY 2009-10 ended September 30, 2009.

Highlights include:

• Net sales of Rs. 518 crore, up from Rs. 472 crore the preceding quarter
• EBITDA margin for the optical media business holds firm at 20 per cent with shipment up 22 per cent and expected to maintain the growth momentum
• The company ventures successfully into the solid state media business capturing 11 per cent of India’s USB Flash Drive market in its first four months of operations
• Moser Baer’s photovoltaic business comes out of a planned furlough for a part of its production facility as planned, with record shipments in September
• Strong PV order book for Q3 and Q4.

Announcing the results, Ratul Puri, Executive Director, Moser Baer India, said: "It has been a challenging quarter for our businesses with falling rupee and rising commodity costs. However, we are happy with the strong shipment volume and steady cash generation. We are confident that the growth momentum for the optical media business will continue and long term variables for the business are looking strong as we move towards the latter half of the fiscal year which is traditionally strong. With our entry into the solid state media market, we are proud to be the only company in India which offers the entire range of storage solutions. We will continue to offer quality storage products at competitive prices and will further grow this business, which is expected to grow at over 30 per cent CAGR over the next three years in India."

Yogesh Mathur, Group Chief Financial Officer, said:" On the photovoltaic business we have effectively weathered the storm caused by the credit crisis in Europe. We took a furlough for our crystalline silicon manufacturing facility and in late August resumed full production of both cells and modules earlier than expected. The global photovoltaic market is experiencing steady recovery and with solar farm deals starting to happen again in a regime of reasonably firm prices, we expect a strong recovery in the second half. For the entertainment business, we are focusing on our strengthening our multi-tiered distribution and are growing the Super DVD segment which is nearly doubling quarter on quarter."

Optical Media

• Blu-ray, expected to be the key growth driver for Moser Baer optical media business, had volumes doubling in Q2 over the preceding quarter
• The company is judiciously converting capacity and going forward is set to increase Blu-ray capacity as demand for the high definition format gathers even greater momentum. Some research estimates show that global sales of Blu-ray players is set to double this year
• Volumes in emerging markets, including India, are growing rapidly, while ASPs are expected to remain range bound.

Solar Photovoltaic

• While the global credit crisis continues to severely impact solar markets worldwide, Moser Baer took a production furlough for its crystalline silicon plant but resumed full production by end-August
• September saw record peak production with high plant efficiencies and the order book for Q3 is extremely healthy
• The PV business also saw an increasing demand from state utilities in India to set up test scale thin film solar farm installations
• Key industry variables continue to be strong as several countries deploy solar- friendly incentives.

Entertainment

• The newly created Super DVD segment (that sells multiple films on a single disc at highly competitive prices) is growing remarkably – it nearly doubled in Q2 over the preceding quarter
• The business is focusing on deepening and strengthening a multi-tiered distribution reach
• The company is leading the effort on part of the media and entertainment industry to lobby for legislative changes that will make imposition of strict penalties for piracy a reality.