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Unedited press release follows:
Moser Baer announces Jan’15-Mar’16 Results
New Delhi, May 25, 2016 Moser Baer India Limited (MBIL) today released its financial results for the period of January’15-March’16 and January-March’16 quarter. The financial results for the period ended March’16 were approved by the company’s Board of Directors, at its meeting in New Delhi today.
• Total standalone income stood at INR 7,596 million during the fifteen month period ending March’16 and remained stable at INR 1,532 million for January-March’16 quarter.
• Though liquidity issues continue to hurt operations, the Company has regained its market share and materially improved its overall margins through its concerted efforts in improving efficiencies and reducing costs.
• Over the past year, the Optical Media business has gradually recovered volumes in the international market due to enhanced customer engagement and restoration of OEM customer volumes.
• Company’s subsidiary has entered into an exclusive distribution agreement with Verbatim (a long term customer of the Company) for sale of Verbatim branded Storage Media and LED products in India.
• Solid State Media (SSM) segment continues to grow and recorded 18% increase in the turnover Q-o-Q on the back of enhanced market share through key customers in India.
Shiv Nath, Chief Executive Officer, Moser Baer India Ltd., further commented “By the end of this financial period, the Optical Media volumes from our OEM customers have been substantially restored, which will allow the company to gradually scale up manufacturing and despatch higher volumes. The Company has also registered an annualised growth of 23% in its SSM business on the back of increased market share. One of the Company’s priorities in the coming year will be on establishing itself more firmly in the LED market, for which it is well positioned. However, the Company continues to be constrained by its liquidity challenges, and will continue to seek the support of its secured lenders to help revive the Company.”
Trends in Storage Media:
• Net Sales stood at INR 1,382 million.
• While overall ASPs have been stable, reduction in input prices has been positive for the Company during the quarter. However, input prices are expected to firm up in the coming quarters.
• Product mix and contracted ASPsare expected to improve in the coming quarters, along with further restoration of volumes in optical media segment and continued growth in SSM segment.
• The Company is has made progress in several respects in the preparatory process for restructuring the terms of the outstanding FCCBs.
• The Company is actively engaged in dialogue with secured lenders to address liquidity and debt issues to support business recovery and has submitted a revised restructuring proposal, which is yet to be accepted by secured lenders.
Trends in the Solar Photovoltaic business:
• The Indian solar market appears in full bloom right now with key policy changes being introduced and 25 GW of projects under different stages of development
• A total of 8,000 MW of DCR (Domestic Content Requirement) projects have been identified by the government to be implemented during 2014-19, 5,500 MW are under tendering or tendered and 625 MW stand implemented in 2014-16. It is understood that MNRE is in the final stages of a policy change to directly incentivise DCR cell and module manufacturers based on MW produced.
• However, volatility in DCR orders and delay in disbursement of approved government subsidy continues to impact the manufacturing operations.
• Through its concerted efforts, the Company is in the process of entering into an agreement with a leading EPC Company for supply of 45 MW of DCR cells within FY 2016-17.
• The Solar Subsidiaries continue to engage with their secured lenders to seek support for their revival. Despite the lender consortium (under CDR) withdrawing support to one solar subsidiary, the subsidiary continues operations based on customer support and Company’s efforts at optimizing cash flows.
Commenting on the solar business of the company, K N Subramaniam, CEO, Moser Baer Solar Limited shared, “The Company has not been able to substantially benefit from the aggressive Governments DCR policy for demand creation, on account of its liquidity challenges and lack of support from Banks. However, with the 45 MW order under execution, we expect to start playing a more significant role in the DCR segment. Resolution of liquidity issues will play a key role in the revival of the Company.”
About Moser Baer India Ltd.
Moser Baer India Limited headquartered in New Delhi, is a leading global tech-manufacturing company. Established in 1983, the company has successfully developed cutting edge technologies to become one of the world’s largest manufacturers of Optical Storage Media like CDs and DVDs and Solid State Media. The Company has also entered into the emerging energy efficiency lighting segment. Over the years the company has entered into exciting areas of technology manufacturing and is a market leader in the high growth photovoltaic space. It is the only company worldwide to receive the prestigious 5-star rating from TÜV Rheinland for 3 years in a row (2009 – 2012) maintaining highest standards of quality in manufacturing PV modules. Moser Baer India has emerged as one of the most credible brands focused on hi-tech manufacturing and R & D activities. It is continuing to unfold the next generation innovative technologies that will catapult India into a respectable manufacturing hub.