Borosil Renewables hit an upper circuit of 5% at Rs 316.95 after the company reported a net profit of Rs 39.62 crore in Q1 FY22 as against a net loss of Rs 1.87 crore in Q1 FY21.
Net sales during the quarter increased by 151.8% YoY to Rs 136.13 crore. As compared with Q4 FY21, however, the company's net profit and net sales have declined by 40.8% and 29.8%, respectively.
The company recorded a pre-tax profit of Rs 55.86 crore in Q1 FY22 as against a pre-tax loss of Rs 2.44 crore in Q1 FY21. Current tax outgo was Rs 9.77 crore during the period under review.
The board of Borosil Renewables has approved a proposal to increase the production capacity of the company's third furnace (SG-3), which is being installed at its manufacturing facility at Bharuch, Gujarat, from 500 MT per day to 550 MT per day. The furnace is expected to be commissioned by July 2022.
Consequently, the cost of the project has gone up to Rs 600 crore from Rs 518 crore earlier. The project will be financed by using a mix of equity, debt and/ or internal accruals. The increase in capex will be financed by internal accruals.
The capex is being undertake for raising the production capacity of the furnace and also that of the processing facilities.
Borosil Renewables is engaged in the business of manufacturing of extra clear patterned glass and low iron solar glass for application in photovoltaic panels, flat plate collectors and green houses.
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