Please note that this conference is being recorded. I now hand the conference over to Mr. Rohan Gheewala from Axis Capital Limited. Thank you. Over to you, sir. Thank you, Tobin. Good afternoon, everyone. On behalf of Axis Capital, I'm pleased to welcome you all for the Q1 FY25 earnings conference call of Borosil Renewables Limited. We have with us the management team, represented by Mr. P. K. Kheruka, Executive Chairman, Mr. Ashok Jain, Full-time Director, Mr. Sunil Roongta, Full-time Director and Chief Financial Officer, and Mr. Balesh Talapady, VP, Investor Relations. We thank the management for giving us the opportunity to host the call. We will begin with the opening remarks from the management, followed by an interactive Q&A session. Thank you, and over to you, sir. Thank you. This is Pradeep Kheruka. Good afternoon, and welcome to the Borosil Renewables first quarter financial year 25 investor call. The Board of Borosil Renewables on twelfth August, approved the company's financial results for the first quarter of the current financial year. Our results and an updated presentation have been sent to the stock exchanges and have also been uploaded on the company's website. We will discuss the operations of Borosil Renewables on a standalone basis, as well as on a consolidated basis. I will also provide you with some highlights of the operations in our overseas subsidiaries. Overall, the company's performance shows distinct improvement as compared to the previous quarter. Of course, the operating results for the same quarter last year were much better, considering the much higher selling prices prevailing then. The net revenue during this quarter under review was higher by 6% compared to the preceding quarter, led by a quantitative increase by 2% and a higher selling price. Average ex-factory selling prices during the quarter rose to INR 105.5 per millimeter per square meter, as compared to INR 99.6 in the preceding quarter, which is an increase of 6%. A sharp increase in ocean freight had been the reason for the increase in import landed prices, which allowed us, in turn, to have a more remunerative selling price. During the first quarter of the current year, the sales volumes of the company rose by 23% quantitatively over the corresponding quarter in the previous year. However, the significantly lower selling prices meant that the rise in net revenue from operations was just 2%. Average ex-factory selling prices during the quarter, despite showing a recovery, were lower by 17.9% as compared to INR 128 during the corresponding quarter. Export sales during the first quarter of the current year, including to customers in SEZ, stood at INR 22.42 crores, comprising 9.3% of the turnover, as against INR 13.55 crores in the preceding quarter, when it comprised 6% of the turnover. Exports stood at INR 72.16 crores in the corresponding quarter last year. There's a demand slowdown in export markets around Europe for the past 2-3 quarters, although the exports were higher compared to the previous quarter. During the quarter under review, the company earned an EBITDA of INR 29.71 crores, corresponding to an improved margin of 12.3%, as compared to the margin of 5.8% in the preceding quarter. This flowed from better selling prices as also higher production efficiency. The margin during the corresponding quarter last year had been 28% due to higher selling prices then prevailing. The company's post-tax loss declined to INR 3.64 crores for the quarter under review, against a post-tax loss of INR 13.37 crores in the preceding quarter, which is attributable to an improvement in selling prices and production efficiencies. I'm happy to share that the long-drawn saga to end the ill-conceived exemption from payment of basic customs duty on imports of solar tempered glass has finally yielded a positive outcome. The exemption ends on 30th September 2024, and a duty at a reduced rate of 10% will come into effect, although the duty in tariff was 15%. The investigation by DGTR into our applications for imposition of an anti-dumping duty on imports from China and Vietnam and a countervailing duty against imports from Vietnam is making progress. We expect a decision and issuance of preliminary findings in the next few months. Meanwhile, Chinese exporters have dropped their prices even further in their continued relentless dumping. For the domestic solar glass producers, getting ADD, CVD remains extremely important to ensure industrial expansion. Government tenders for certain requirements mandate use of only domestically made solar cells in the modules. We are now petitioning the government to additionally mandate the use of other domestically made ancillaries, including solar glass in such tenders. This will help create a robust local supply chain and increase the use of domestically produced ancillaries. The pace of solar installations in the country is making rapid progress, and there is a sizable demand visibility. Manufacturing capacity for solar modules has already touched 65 gigawatts, which is expected to cross 100 gigawatts in 2 to 3 years. Use of locally produced modules has risen sharply after the implementation of ALMM mechanism from April 2024, which is leading to increased demand for all the components, including solar glass. Coming now to our German operations. The European solar module manufacturing industry continues to suffer from unrestricted import of Chinese solar modules at dumped prices. This has led to shutdown of production by many of the large players in Germany. The European Union has cleared legislation by member countries to incentivize the use of European-made solar modules by allowing tax subsidies and other measures. Countries like France, Italy, and Austria have already taken steps to incentivize local production, but Germany, which is the largest producer, is yet to make an announcement. The company continues to run full production by locating demand from alternate markets, although at lower selling prices. Cost optimization efforts are continuing at the plant, besides enhancing production efficiencies. Now I come to the consolidated results for the quarter, which include the operations of the subsidiaries abroad. The overseas subsidiaries, including the shutdown subsidiary, have generated net standalone revenue of INR 129.4 crores and negative EBITDA of INR 3.8 crores for the first quarter of the current year. The performance shows a marked improvement over the preceding quarter, which had a net revenue of only INR 55.88 crore and a negative EBITDA of INR 33.95 crore. The overseas subsidiary was reeling under reduced demand, which led to reduced production and consequential losses from the demand slowdown in Europe. The subsidiaries are making efforts to improve operations by making inroads into overseas markets, besides enhancing customer outreach in Europe. The consolidated net revenue for the quarter under review stands at INR 370.79 crore and a positive EBITDA of INR 35.91 crore, as compared to a net revenue of INR 283.11 crore and negative EBITDA of INR 20.82 crore in the previous quarter. This shows significant improvement. The positive trends and developments we are experiencing in this quarter on both prices and production efficiencies are encouraging, and we feel that the upcoming quarters hold the potential for further improvement in the performance. Looking at, A, expectations of better selling prices enabled by higher landed costs of solar glass in the domestic market, post imposition of Basic Customs Duty from October 1, 2024, and B, the strong and expanded demand in domestic markets arising from the spurt in domestic manufacturing, our positive outlook in the sector has further improved. We are actively engaged in cutting our cost per unit. To further optimize our cost of power, we have finalized an additional 16.5 MW solar wind hybrid power plant that is expected commissioning during second quarter of financial year 2026. Finally, I would like to update you on the proposed rights issue. The company had, on 10th June 2024, filed a draft letter of offer to SEBI to raise funds up to INR 450 crore by a rights issue of equity shares. The proceeds are proposed to utilize mainly to reduce the debt for the Indian operations as well as at the overseas operating subsidiaries. The company has received in-principle approval for rights issue from the BSE Limited and NSE of India. Post receipt of other applicable approvals, detailed terms of the rights issue, including but not limited to the issue price, rights entitlement issue, record date, timing, and terms of payment, will be determined by the board or its duly authorized committee in accordance with applicable laws. With that, I now would like to open the floor to questions that you may have. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Once again, ladies and gentlemen, you may press star and one to ask a question. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. We have the first question from the line of Sumit Kishore from Axis Capital Limited. Please go ahead. Good evening, sir. My first question is that after the announcement in the budget, where do you see EBITDA margins for Borosil Renewables settling in coming quarters, especially given your commentary that the Chinese are also undercutting prices, and that has, you know, a downward impact even as we speak. Yeah. So, it's a moving number as of now because the prices have been changing and the freight rates also have been changing. But, the impact of basic customs duty would mean that 11% will get added to the landed cost of imports, which will allow us to raise our prices of the corresponding order. So we can estimate, based on the current earnings that the EBITDA margins may settle between 20%-25% post the imposition of basic customs duty, provided there are no very significant changes in the prices or in the freight. Sure. You said 11%, or will it be 10% increase? 10% is the basic duty, and there is a surcharge of 10% thereon. Right. So effectively, it becomes 11%. Okay. Are freight rates, seaborne freight rates, cooling off now, you know, after peaking some time in the previous quarter? So in the last two months, the freight rates have been high, but of late the freight rates have softened a bit. Whether they will stay at current level or will change further is anybody's guess as of now, because the situation is very dynamic. Sure. And, where would you peg, India's solar glass manufacturing capacity now, and, you know, based on what is under construction right now, by the end of the fiscal, where do you see that capacity going, and Borosil Renewables, share, is what we are looking at? So in India, there are four new plants which have started in the last one year or so. They're totaling to almost 1,300 tons per day, and Borosil Renewables is at a 1,000 ton per day. So total capacity has become 2,300 ton per day in terms of the domestic production. And a very sizable significant imports are also happening at this point in time, because these capacities put together are not enough to meet the entire demand. Sure. What capacity is under construction right now, in case you are in your- Right now, there is nothing significant except for maybe Reliance, which may be under construction for their own captive purpose. But generally for the market offerings, there is no further capacity in pipeline as we speak. So given the shortfall in domestic manufacturing capacity versus the size of the Indian market itself, what are your thoughts in terms of expanding capacity there on? Or do you think that you will wait for government intervention and imposition of extra duty protection to make it more attractive? To be honest, the way I'm looking at things, that, we have spent the last year actively following with the government and bringing to the notice that in order to have a complete ecosystem, all the ancillaries need to be studied, and, they have to be dealt with so that, we, we are able to retain and grow the full manufacturing ecosystem. Going by the speech given by the Honorable Finance Minister in the Lok Sabha this year, when she took solar glass by name, I hope it seems that our words have reached her and she's understood. And, the putting of the 10% duty is a very welcome step towards the fact that this has been recognized. And so therefore, I see that with continued, you know, pushing our agenda in the corridors of power, the fact is that the government is definitely very keen to get out of the umbrella of China. And so therefore, generally, I see that things should be getting better and better as time goes by. Sure. Just one final question. Of India's total solar glass imports, what percentage comes from China, and what percentage comes from Vietnam, and other locations? You mean, as the total Indian market? Yes. For the total Indian market. Total. Imports are basically at this point in time coming largely from China. Almost 85% comes from China, and only 15% come from Vietnam. Okay. Thank you so much for answering my questions, and wish you all the best. You're welcome. Thank you. Participants, you may press star and one to ask a question. We have the next question from the line of Rohan from Envision Capital. Please go ahead. Hello. Thank you for the opportunity. So the first question was, on the company that, you know, there was just a newly established entity, Solar Ancillary Manufacturing Association. So, what was that in regards to, and, you know, just a little background on that. The second question was, what is India's domestic solar glass consumption against the 2,300 tons per day capacity? Thank you. For the first question... What's the other question? Sam, about Solar Ancillary Manufacturers' Association. See, what we realized, even in the solar glass industry, that the focus of the government had so far been on solar cells and modules. But there are many other products which you need in order to complete the production of our solar module. And if we are still going to be dependent on China for other things, then that just having production of cells may not be sufficient. And so we decided to form an association. There are people who are glass makers, people who make encapsulants, people who make backsheets, junction boxes, aluminum frames, copper conductors, etc. Everybody is a member of this association. So when we go, we go in a comprehensive way, because we are working for the entire solar component ecosystem. And that is why we made this association, and it has been successful. And I think the imposition of the 10% duty is a fallout of the fact that we went as an association, and we were able to get it. Regarding the share of imports and the domestic producers' share, the entire domestic production is getting sold as of now, and most of it is getting sold in India. Some exports are there, which will be about 8%-10% overall. But sizable imports keep coming to India because the requirement is growing very steadily now. With the implementation of ALMM from April 2024, the consumption has gone further in terms of solar glass consumption in the modules being made. So imports may be about 55%-60% of the demand as of now, and domestic may be about 45% or so. Right. And, so what is the demand, Indian demand totally? Well, Indian demand, in terms of glass consumption would be about 4,000 tons per day, of which about 1,600 may be coming from Indian production. Got it. Got it. Thank you, sir. Thank you. To ask a question, ladies and gentlemen, please press star and one. We have the next question from the line of Ketan Jain from Avendus. Please go ahead. Thank you. Good evening, sir. So my first question is: What will be the landed cost of China glass panel? Like, what will be the price, without duty and after duty? The landed price of solar glass from China? Yeah, actually, the price is changing every, every day, almost, or every week at least, in terms of the landed cost. But, what we, what we do is to sell against the landed price and seek some premium over it, which, which is, maybe about 3%-5%. So, you can see that what we are realizing is about INR 105-INR 106 on ex-factory level. So you may say import price is maybe about INR 102 or INR 100 per mm. Understood, sir. Sir, what is your view on the trajectory of solar glass products from China? How long will they be able to dump more? The situation in China today is a little tight. Tight from the standpoint that, their panels, which were being sold everywhere, especially in kind of markets like the United States and India, has suffered a very sharp decline. And so therefore, all the components that go into solar glass production, including glass, are also facing a big, great resistance, or there might be not enough market in China, and therefore, they are selling to other countries under certain compulsion. Now, maybe that is the reason or what, but the price at which they are selling, there is no possibility that they can make any money from that. In fact, they'll be losing money unless they are being subsidized, which is our fear. It's very difficult for us to hazard a guess on China and the selling prices, other than to say that whatever they are doing is completely unviable. Understood, sir. So also, you said that EBITDA margin is going to saturate around 20%-25% post custom duty. So what realization I can assume for this? Will it be around INR 130? See, 105 rupees is what we realized in the current quarter on ex-factory basis, and we earned a margin of 12%. So if you, if you add another 10%, then that will give you the number. Because whatever- Around 120. Whatever extra price comes, we get to the margin. Around INR 125 it is. Thank you. If you are to do your math correctly, if INR 105 is the price, and if you have to increase by 10%, it won't be INR 125. Okay. Okay, 150. Yeah. Okay. Okay, thank you. Thank you. The next question is from the line of Rohan from Envision Capital. Please go ahead. So thank you again. So, sir, the question was, if a vendor is, you know, purchasing solar glass from us, for use in, you know, domestic modules, wherein the modules are also sold at a higher price, so, is there a price difference between that price and, you know, the price at which the imported glass is sold in India? So, how is that? How different is that? Yeah, I just said sometime back that whatever the import landed cost is there, basis that we price our material at about 3%-5% higher. Understood. Understood. That is the premium you can pay, yeah. Got it. Got it. Thank you, sir. Thank you. The next question comes from the line of Santhosh, individual investor. Please go ahead... Santhosh, the line for you has been unmuted. You may proceed with your question. Now it is hear, hearable, sir? yes. We can hear you. Yeah, thank you, sir. This is with regard to the German unit, sir. Their revenues were INR 129 crore, and employee costs were around INR 38 crore. That is around 30%. So how can we reduce this employee benefit expense in German unit, sir? German cost is higher. As we know, the Germany labor cost is higher. But what was happening was that the producer, the buyers in Germany were able to pay higher price because they were getting higher price for their modules. Now that situation has changed because they are not able to run their operations at a low price coming from China, which is putting pressure on our selling prices, which is why the ratio is looking so high in terms of the employee cost. What we are trying to do is to rationalize on the workforce, try to cut down on the number of people and also increase productivity. Similarly, we have put in the CapEx and a new equipment there or added new, more machinery, which will give us much higher productivity. So with all those efforts, we will be able to cut down per unit cost and impact of the labor cost. Because we, when we compare with Indian employee cost and German cost, there is a lot of mismatch, because in India we are paying INR 19 crore only. In Germany, we are paying INR 37 crore for a turnover of INR 29 crore. Your point is absolutely well taken, and this is the situation we have to deal with, and we have to—Yes. We have to increase the productivity and production. It may not come down to Indian levels, but, still, we will have to see how best we can, curtail the cost and increase our selling price. Yeah, this is the same with the power also, power expenses with German unit? Power is not so much different in terms of the percentage. And, even, I mean, it's around 30% on it, so INR 37 crore power expenses there in German unit. Yeah. So that, that is again, because we, we were running the old equipment and all, and now we have put in new machinery, which will give us, almost 25%-30% reduction in the power cost, power consumption per unit of production. So all those efforts are now going to fructify once these machines start operating, which already actually started producing in this month. So, with that, you will see changes in the further quarters. So we can expect same revenue in next quarter also from Germany? That is around INR 129 crore, or it will be higher or less? It will be in the same ballpark. So when can we expect the rights issue, sir? The rights issue is subject to the approvals. Now, we already have the BSE and NSE approvals, and major approval now is SEBI, which is almost on the cards now, anytime we may get. So once we have this, then we'll start the process of filing the final letter of offer. I think the rights issue should be there in the end of September or beginning of October. So with regard to this anti-dumping duty, are you following with the government with regard to anti-dumping duty too? Yeah, yeah. We are the applicants for anti-dumping duty and countervailing duty, and the other manufacturers are supporting our application, other glass manufacturers. And this application is continuously being followed up at the DGTR level. So, hopefully, we will have the assurance of preliminary findings, provisional findings, in next month or so. Then how much time it will take, sir? One month? One, one and a half month it should take for the process to complete in terms of the provisional findings. Okay. After that, it will take another 3-4 months to get the final approval. Okay. Thank you for your answer. By December, we will have some final view from them. Okay. Thank you for your time, sir. Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press Star and one. Participants, to ask questions, you may press Star and one at this time. We have the next question from the line of Sunny from IAS. Please go ahead. Hi, I have just one question regarding the CapEx plan which you have presently in- ... Your line sounds muffled. If you could please change the mode on your handset? Okay. Hi, sir, I have just one question. Please go ahead. Yeah. What is the CapEx plan for the future, which presently you don't have? So the Board had in the past approved for expansion by 1,100 tons per day, setting up another furnace to increase the production, which is currently at 1,000 tons per day. But this was put on hold because of the change in the economics and the scenario after the removal of anti-dumping duty against China. So with the positive developments happening on the Basic Customs Duty front, and once there is some clarity on the anti-dumping duty, we expect the Board to reconsider the matter, and once the decision is taken, we will communicate the same to the investors. Thank you, sir. That was my only question. Thank you. Participants, you may press Star and one to ask a question. Ladies and gentlemen, you may press Star and one to join the question queue. If there are no more questions, we can close the call. Sir, we do not have anyone in the queue at the moment, sir. Okay. If you would like to proceed with closing comments, you can go ahead, sir. Yeah, thank you so much, all the investors for joining on the call and showing your interest, in the business of the company. The management is putting in all the efforts, to resume the past glory of the company, which, for some quarters has been lost because of the unrealized selling prices. We are actively working on the anti-dumping duty, which will provide the required fillip to the operations of the company and visibility of further growth in the business. Thank you so much for asking all the questions, and see you again. Thank you. Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.