Topics Buzzing stocks | Borosil Glass Works | Markets
SI Reporter | Mumbai Last Updated at December 16, 2021 10:30 IST
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Shares of Borosil Renewables hit a new high of Rs 722.85, up 5 per cent on the BSE in Thursday's intra-day trade on the back of heavy volumes. The stock of the flat glass manufacturer were trading higher for the fifth straight day, surging 28 per cent during the period.
Trading volumes on the counter more-than-doubled as a combined 1.16 million equity shares, representing 0.88 per cent of total equity of Borosil Renewables, changed hands on the NSE and BSE till 10:01 am. In comparison, the S&P BSE Sensex was up 0.31 per cent at 57,970 points.
In the past 11 weeks, the market price of Borosil Renewables has zoomed 135 per cent from a level of Rs 308 touched on September 30, 2021, as compared to a 2-per cent decline in the benchmark index.
For the first half (April-September) of the current financial year 2021-22 (H1FY22), the company had reported robust results with standalone net profit jumping six-fold to Rs 73.74 crore on the back of higher operational income. The company had posted net profit of Rs 89.64 crore during the entire previous financial year 2020-21. Revenue from operations grew 77 per cent to Rs 297 crore in H1FY22 from Rs 168 crore in H1FY21.
Further, the company had raised Rs 200 crore through qualified institutional placement (QIP) in December, 2020 for part financing of its new project i.e. SG-3, out of which Rs 47 crore have been utilised for the said project. Its board approved increased existing capacity of SG-4 project to 550 MT per day from 550 MT per day with additional investment of Rs 100 crore.
"SG — 4 proposed to be undertaken in financial year 2021-22 and Commencement of Commercial production is expected between July and September 2023. The projects will be financed by using a mix of equity, debt and/ or internal accruals, or through a mix of any or all of such means of finance. The rationale behind capacity addition is to higher production and better efficiencies, due to a larger furnace. While there is an increase in estimated cost, there will be 10 per cent additional production," the company said.
Borosil Renewables is producer of solar glass in the country. Power demand has once again started to grow and the solar power outlook in India remains very strong. Solar installations account for a major portion of all new power capacity added in India. This robust installation activity also made solar the single largest source of new power capacity additions consecutively in the last 4 years, the company said in its FY21 annual report.
Module manufacturing capacity is set to rise to 24 GW in the next 2 years which will lead to higher requirement of solar glass. The output from the two existing furnaces as well as the planned new furnace of your Company will fall short and leaves significant room for further capacity additions considering the expansion in demand. This demand will only rise with the gradual shift towards bifacial /glass-glass modules, it added.
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