Moser Baer India Limited (MBIL) today released its financial results for the quarter ended March 2015. The company’s Board of Directors, at its meeting in New Delhi, approved the financial results for January – March 2015 quarter.
- Total income stood at INR 1,606.3 million during the quarter, impacted by the unjustified stoppage of work by workers at the manufacturing locations.
- During the stoppage period, the company’s management took suitable action to mitigate the impact of disruption on operating cashflows.
- After an amicable solution between the company’s management and workers was arrived at with the support of concerned government and administrative authorities, factory’s operations resumed and have been restored to normalcy.
- The process of settlement with workers has now added stability to the Company’s and its subsidiaries’ manufacturing operations and the company is now well positioned to continue to implement its revival plans.
- While ASPs witnessed some increase, the company achieved lower volumes for both production and shipment on account of the disruption.
- The Board of Directors approved the company’s strategic plans to scale up commercial operations in LED lighting products in the Solid State Lighting SBU and suitably expand distribution nationally.
Yogesh Mathur, Group President, Moser Baer & Group CFO, MBIL, further commented, Amicable conclusion of discussions at the plant has positioned us for a stable operating environment. In parallel, we are now accelerating our focus on other emerging business opportunities. The government’s push on energy efficient lighting coupled with the continued support for domestic manufacturing also positions us well in the LED market, which is witnessing huge demand especially for domestic manufacturers.
Trends in Storage Media:
- Net Sales stood at INR 1,567.8 million during the quarter.
- Production and Sales Volumes were impacted by one time stoppage of work by workers which affected factory operations.
- Some increase in ASPs while key raw material prices remained stable during the quarter.
- Despite the disruption, operating results were contained to levels similar to previous quarter.
Commenting on the business performance of the company, Shiv Nath, CEO, MBIL, said, We used the stoppage time to optimize our resources and operations, and also focus on building up the inventory for raw materials. This is helping us in quickly ramping back the production levels to meet the demand and make up for lost production. However, there will be a limited one-off impact in the coming quarter on account of lower realizations.
The amicable solution with workers was achieved with proactive support of the government and administrative authorities.
The company will now scale up its commercial operations in LED lighting products in the Solid State Lighting SBU and suitably expand distribution nationally, thereby opening a new chapter in the company’s revival plans.
Trends in the Solar Photovoltaic business:
- Moser Baer Solar did module sales of approx. 11.2MW in the Japanese and Domestic market and Systems Services of 20MW.
- The upgraded solar cell manufacturing line which started production in Jan ’15 continues to show steady improvement. However, production was impacted during the quarter due to the interruption of work. This has now resumed post resolution.
- Company is leveraging the cell line for undertaking orders under the DCR regime.
- Liquidity pressures continue to persist and are impacting the ability to fully tap the Indian solar market opportunity.
Speaking on the developments in the solar business, K N Subramaniam, CEO, Moser Baer Solar Limited shared, Government’s continued support of initiatives like DCR (Domestic Content Requirement) projects, Priority Sector Lending and Make in India, lend support to the company’s revival plans in this sunshine sector. We look forward to further ramping up our production in the next few quarters.
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. The company also emerged as the first to market the next-generation of storage formats in India. 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