Moser Baer announces Q2 results

• Net revenues up 10 per cent
• Shipment volumes for optical media up 22 per cent
• Steady cash generation and working capital under control

New Delhi, October 30, 2009: Moser Baer India today released its financial results for the second quarter of FY 2009-10. The Board of Directors, at its meeting in New Delhi, approved the financial results for the quarter ended September 30, 2009.

Highlights include

• Net sales of Rs. 518 crore, up from Rs. 472 crore the preceding quarter
• EBITDA margin for the optical media business holds firm at 20 per cent with shipment up 22 per cent and expected to maintain the growth momentum
• The company ventures successfully into the solid state media business capturing 11 per cent of India's USB Flash Drive market in its first four months of operations
• Moser Baer's photovoltaic business comes out of a planned furlough for a part of its production facility as planned, with record shipments in September
• Strong PV order book for Q3 and Q4.

Announcing the results, Ratul Puri, Executive Director, Moser Baer India, said: It has been a challenging quarter for our businesses with falling rupee and rising commodity costs. However, we are happy with the strong shipment volume and steady cash generation. We are confident that the growth momentum for the optical media business will continue and long term variables for the business are looking strong as we move towards the latter half of the fiscal year which is traditionally strong. With our entry into the solid state media market, we are proud to be the only company in India which offers the entire range of storage solutions. We will continue to offer quality storage products at competitive prices and will further grow this business, which is expected to grow at over 30 per cent CAGR over the next three years in India.

Yogesh Mathur, Group Chief Financial Officer, said: On the photovoltaic business we have effectively weathered the storm caused by the credit crisis in Europe. We took a furlough for our crystalline silicon manufacturing facility and in late August resumed full production of both cells and modules earlier than expected. The global photovoltaic market is experiencing steady recovery and with solar farm deals starting to happen again in a regime of reasonably firm prices, we expect a strong recovery in the second half. For the entertainment business, we are focusing on our strengthening our multi-tiered distribution and are growing the Super DVD segment which is nearly doubling quarter on quarter.

Following are Q2 Highlights:

Optical Media

• Blu-ray, expected to be the key growth driver for Moser Baer optical media business, had volumes doubling in Q2 over the preceding quarter
• The company is judiciously converting capacity and going forward is set to increase Blu-ray capacity as demand for the high definition format gathers even greater momentum. Some research estimates show that global sales of Blu-ray players is set to double this year
• Volumes in emerging markets, including India, are growing rapidly, while ASPs are expected to remain range bound.

Solar Photovoltaic

• While the global credit crisis continues to severely impact solar markets worldwide, Moser Baer took a production furlough for its crystalline silicon plant but resumed full production by end-August
• September saw record peak production with high plant efficiencies and the order book for Q3 is extremely healthy
• The PV business also saw an increasing demand from state utilities in India to set up test scale thin film solar farm installations
• Key industry variables continue to be strong as several countries deploy solar- friendly incentives.

Entertainment

• The newly created Super DVD segment (that sells multiple films on a single disc at highly competitive prices) is growing remarkably—it nearly doubled in Q2 over the preceding quarter
• The business is focusing on deepening and strengthening a multi-tiered distribution reach
• The company is leading the effort on part of the media and entertainment industry to lobby for legislative changes that will make imposition of strict penalties for piracy a reality.

About the Company
Moser Baer, headquartered in New Delhi, is a leading global technology company. Established in 1983, the company successfully developed cutting edge technologies to become the world's second largest manufacturer of Optical Storage media like CDs and DVDs. The company also emerged as a leading edge player in next-generation of storage formats, especially Blu-ray discs. Recently, the company has also transformed itself from a single business into a multi-technology organisation, diversifying into exciting areas of Solar Energy, Home Entertainment and IT Peripherals and Consumer Electronics.

Moser Baer has multiple manufacturing facilities in the suburbs of New Delhi.

Website: www.moserbaer.in

For further information, contact
Monica Srivastava
Mobile: +91-11-40501240 | +91-9899045863
Email: msrivastava@corvoshandwick.co.in

Moser Baer’s Unaudited Standalone Financial Results for the quarter ended
September 30, 2009

(Rs. in lacs)

Particulars		Quarter ended	Corresponding Quarter ended	Year to date figures for current period ended	Year to date figures for the previous year ended	Previous Accounting Year ended
		30.09.2009	30.09.2008	30.09.2009	30.09.200 8	31.03.2009
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	a. Net Sales / Income from Operations	51,834	59,231	99,044	107,124	218,110
	b. Other Operating Income	444	4,364	8,700	5,214	10,835
	Net Sales / Income from Operations	52,278	63,595	107,744	112,338	228,945
2	Expenditure
	a. (Increase)/Decrease in stock in trade and work in progress	117	(530)	(3,195)	(1,808)	(1,955)
	b. Consumption of raw materials	24,189	29,813	45,626	54,444	108,377
	c. Purchase of traded goods/ rights	2,870	5,557	5,739	8,129	15,208
	d. Employees cost	5,502	6,006	11,309	11,197	22,280
	e. Depreciation/Amortisati on	12,573	12,000	25,488	23,536	49,714
	f. Other expenditure	10,259	9,114	22,206	22,341	43,279
	g. Total	55,510	61,960	107,173	117,839	236,903
3	Profit (+)/ Loss (-) from Operations before Interest and Exceptional Items	(3,232)	1,635	571	(5,501)	(7,958)
4	Other Income	1,213	703	2,087	1,648	3,546
5	Profit (+)/ Loss (-) before Interest and Exceptional Items (3+4)	(2,019)	2,338	2,658	(3,853)	(4,412)
6	Interest	4,668	6,727	9,521	11,373	20,532
7	Profit (+)/ Loss (-) after Interest but before Exceptional Items (5-6)	(6,687)	(4,389)	(6,863)	(15,226)	(24,944)
8	Exceptional items	1,068	-	1,520	-	9,103
9	Profit (+)/ Loss (-) before tax (7+8)	(5,619)	(4,389)	(5,343)	(15,226)	(15,841)
10	Tax expense	(765)	(205)	(765)	(644)	(753)
11	Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	(4,854)	(4,184)	(4,578)	(14,582)	(15,088)
12	Extraordinary Item (net of tax expense)	-	-	-	-	-
13	Net Profit (+)/ Loss (-) for the period (11-12)	(4,854)	(4,184)	(4,578)	(14,582)	(15,088)
14	Paid-up equity share capital (Facevalue:Rs.10/- per share)	16,831	16,831	16,831	16,831	16,831
15	Reserves excluding revaluation reserves as per balance sheet of previous accounting year					151,507
16	Earnings Per Share: (not annualised)
	a) Before Extraordinary items
	- Basic (Rs.)	(2.88)	(2.49)	(2.72)	(8.66)	(8.96)
	- Diluted (Rs.)	(2.88)	(2.49)	(2.72)	(8.66)	(8.96)
	b) After Extraordinary items
	- Basic (Rs.)	(2.88)	(2.49)	(2.72)	(8.66)	(8.96)
	- Diluted (Rs.)	(2.88)	(2.49)	(2.72)	(8.66)	(8.96)
17	Public shareholding
	- Number of shares	140,885,963	140,885,963	140,885,963	140,885,963	140,885,963
	- Percentage of shareholding	83.71	83.71	83.71	83.71	83.71
18	Promoters and promoter group shareholding
	a) Pledged/Encumbered
	- Number of shares	3,379,626	NA	3,379,626.00	NA	3,379,626
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	12.33	NA	12.33	NA	12.33
	- Percentage of shares (as a% of the total share capital of the company)	2.01	NA	2.01	NA	2.01
	b) Non encumbered shares
	- Number of shares	24,040,515	NA	24,040,515	NA	24,040,515
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	87.67	NA	87.67	NA	87.67
	- Percentage of shares (as a% of the total share capital of the company)	14.28	NA	14.28	NA	14.28

Notes:

1. The company is primarily in the business of manufacture and sale of Optical Storage Media. The other activities of the company comprise creation/ replication and distribution of content, sales of consumer electronic products and operation and maintenance of sector specific Special Economic Zone for non- conventional energy. The segment revenues, results and assets of the other activities do not constitute reportable segments under AS-17 and accordingly no disclosure is required.

2. There were no outstanding complaints from the shareholders at the beginning of the quarter and all the 12 complaints received from the shareholders during the quarter have been replied to satisfactorily.

3. During the quarter, Moser Baer Technologies, Inc. (State of Delaware, US) became step subsidiary of the Company.

4. No provision has been made for MAT under section 115 JB of the Income Tax Act, 1961 as the company expects to avail MAT credit in the future.

5. The exceptional item comprises net gains amounting to Rs 1,068 lacs against repurchase of Foreign Currency Convertible Bonds (FCCBs), as permitted by the Reserve Bank of India and intimated to the stock exchanges during the quarter.

6. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on October 30, 2009.

7. Figures of the previous period/ year have been regrouped and rearranged wherever necessary.

8. Limited Review: The Limited review by the Statutory Auditors for the quarter as required under clause 41 of the Listing Agreement has been completed and the related report is being forwarded to the Stock Exchanges. The report does not have any impact on the above Results and Notes which need to be explained.

For and on behalf of the Board of Directors of 
Moser Baer India Limited