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Unedited press release follows:
Moser Baer announces October-December’16 Results
New Delhi, February 9, 2017 — Moser Baer India Limited (MBIL) today released its financial results for the October-December’16 quarter. The financial results for the period ended December’16 were approved by the company’s Board of Directors, at its meeting in New Delhi today.
• Total standalone income stood at INR 1,201 million for October-December’16 quarter.
• While the traction remained healthy for OEM customers, the domestic market was impacted by the effects of demonetization which created temporary economic pressure during the quarter but is expected to result in structural changes which will be beneficial in the longer term.
• Production and sales volumes of optical media during the quarter continue to be impacted by liquidity constraints at the operating and market level.
• ASPs for optical media remained firm on account of improved sales mix
• Solid State Media (SSM) segment recorded 20% increase in the quarterly turnover Y-o-Y. The segment witnessed improved profitability during the quarter.
• The Company continues to build on its product range and sales and distribution network addressing both the B2C and B2B segments in order to tap the massive opportunities in LED Lighting.
Yogesh Mathur, Group President and Group CFO, Moser Baer India Ltd., commented “The overall quarterly performance continues to be adversely impacted due to liquidity constraints. Given the reforms and change in law during the quarter, the Company is in engagement with the lenders and is examining the alternatives for resolution of debt to reach an amicable solution that enables the Company to realise its long term potential.”
Trends in Storage Media:
• Net Sales stood at INR 1,073 million.
• Product mix and contracted ASPs are expected to be stable in the coming quarters
• Consolidation in plant operations continue in order to reduced energy costs
• Post demonetization, the domestic market is tending towards normalcy and consequentially building back.
• The Company is in discussions with its secured lenders for resolution of its secured debt along with the restructuring of FCCBs
Trends in the Solar Photovoltaic business:
• The Union Budget 2017-18 has provided further thrust to solar sector:
- Second phase of Solar Park development to be taken up for additional 20,000 MW
- It is proposed to feed about 7,000 railway stations with solar power in medium term
- Compared to last year (Rs 5,036 crore), this year the allocation to the Ministry of New and Renewable Energy stands at Rs 5,473 crore. The total budget is further split between Rs 3,361 crore for solar and only Rs 408 crore for wind, a clear indication that the government will continue to prioritise solar.
- Government is allocating a record Rs 745 crore for modified special incentive package scheme (MSIPS) and EDF that were designed to encourage local manufacturing for the period of FY18
• However, volatility in DCR orders and delay in disbursement of approved government subsidy under SIPS continues to impact the manufacturing operations and limit cash flows and volumes.
• PV operations were impacted by liquidity constraints and external market factors during the quarter leading to performance below expectations in terms of cell and module manufacturing.
• The Solar Subsidiaries continue to engage with their secured lenders to seek support for their revival. Despite the lender consortium (under CDR) withdrawing support, the solar subsidiaries continue operations based on customer support and management’s efforts at optimizing cash flows.
Commenting on the solar business of the company, K N Subramaniam, CEO, Moser Baer Solar Limited said: “2016-17 has been a landmark year for solar installations with over 9 GW of cumulative installations till Dec 2016 and further project completions expected by March 31, 2017 providing opportunities for domestic solar manufacturers. Moser Baer Solar continues to execute DCR cell and module orders through customer support.
The Union Budget 2017 emphasized on 20GW of solar installations in the second phase which is expected to provide additional domestic opportunities through Domestic Content Regulations (DCR) projects. In order to execute these projects, additional funding support in the form of working capital is a key requirement.”
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.