You are here: Home » Companies » News
Business Standard

Moser Baer plans to restructure Rs 1,800 cr term debt

Press Trust Of India  |  New Delhi 

Solar cell maker Moser Baer plans to restructure Rs 1,800 crore of its term debt as the company looks to strengthen its ability to leverage opportunities in the growing sector. “We are looking at a corporate debt restructuring programme. This is almost half of the total Rs 3,500 crore debt,” chief financial officer Yogesh Mathur said.

He cited a McKinsey report suggesting the solar industry is likely to install an additional 400-600 Gw of photovoltaic capacity between now and 2020 globally. Though the global demand for solar power is still high, the growth is expected to be flat this year.

Rapidly falling prices of solar panels and components had also impacted the profitability of solar cell makers, with like Solar Millennium and Solon SE filing for bankruptcy.

Moser Baer is also in discussions with banks for refinancing its foreign currency convertible bonds (about $88.5 million as nominal value). "The restructuring is happening by realigning it with Moser Baer India Ltd's cash flows," he said.

Banks are positive about the company's future plans and Moser Baer is looking forward to speedy completion of the debt restructuring and thereafter, to consolidate business and cash flows, Mathur added.

The company narrowed its loss for the quarter ended March 31 to Rs 59.60 crore from a loss of Rs 131.20 crore in the same quarter last year.

Total income from operations increased to Rs 462.33 crore in the reported quarter from Rs 458.95 crore in the year-ago period.

The company is bullish on the solar industry as the global PV market is forecast to witness substantial growth on account of higher installations anticipated in key markets such as the US, Germany and China.

The industry witnessed a 76 per cent year-on-year growth in PV installations during 2011, as per a EPIA - Global Market Outlook 2016 report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 21 2012. 00:29 IST