Moser Baer: Fiscal 1Q12 Financial Results

Moser Baer India Limited (MBIL) released its financial results for the first quarter of FY 2011-12 ended June 30, 2011.

Highlights include:

• Net sales for Q1 FY12 is INR. 523 crores, up from Rs. 448 crores Q-o-Q
• The new orders have been signed at 20-30% increased ASP as compared to March 11 fueling the recovery of margins
• EBITDA margins to increase to 18 – 20% for the storage media business in the next two quarters

Commenting on the development in the markets, Bhaskar Sharma, CEO, Optical Media, MBIL, said: "The traction resulting from the correction of oversupply in the global storage media market has enabled us to renegotiate orders with the customers. The new orders with price hike along with the stabilizing prices of key input commodities have created the resurgent environment. The improved current cash generation is a strong indicator of the company returning to profitability in the coming quarters."

Highlighting the potentialities of the Indian solar PV market K.N. Subramaniam, CEO, Moser Baer Solar Systems said: "The financial closures achieved by 35 project developers towards setting up of 610 MW capacity solar farms is very heartening. Additionally, the Government’s move to invite bids for INR 3,000-crores solar power projects for a capacity of 300 MW under the National Solar Mission by end August 2011 presents us with a tremendous growth opportunity."

He further added: "The clean energy generation from our benchmark installations has been much above expectation which has immensely helped in building confidence of the investors and financial institutions in the solar projects. These factors have resulted in creating a strong pipeline of around 250 MW for the EPC arm of Moser Baer and established us as the leading solar EPC player in the country."

Commenting on the results, Yogesh Mathur, Group Chief Financial Officer, said: "The Q1FY12 performance was along the expected lines with a turnaround driven mainly by factors such as strong recovery of storage media market, price increase along with easing of commodity price. These imply in strong operating cash generation for the company which is likely to continue till end of year. Significantly, the sharp increase in volume has aided in reduction of the inventories of the storage media products."

Talking about the company’s solar PV plans, he added: "We have been ramping up our manufacturing capacity and are geared to meet the growing demands of the Solar PV sector. The high efficiency SE Line is being ramped up for full commercial production by early next quarter which will further entrench our position as the leading solar PV player in the country with an aggregate PV panel manufacturing of capacity of 250 MW."

Storage Media

• Increase in sales volume of 16% in Q1 FY12 over previous quarter
• Blu-Ray shipments continue to grow at a high rate Q-o-Q
• Volume increase and significant price hike partially neutralized the impact spike in the prices of Silver Q1FY12
• Normalcy is returning to prices of key input materials
• New price contracts has been signed at 20-30% increased ASP as compared to the previous quarter
• EBITDA margins to increase to 18 – 20% for the storage media business in the next two quarters

Solar photovoltaic

• First phase of its module capacity expansion achieved
• High efficiency SE Line being ramped up for full commercial production
• Work at full swing on India’s largest solar farm (30 MW Gujarat project) for affiliate Expected completion in current quarter
• Excellent performance of TF projects above benchmark levels
• Techno-economic evaluation being done for fresh capacity of 300-500 MW module line