Moser Baer: Fiscal 1Q13 Financial Results

Moser Baer India Ltd. announces its financial results for its first fiscal quarter ended June 30, 2012
 
Highlights:

• Net sales of INR 430 crores during the quarter DVD sales witnessed an 8% Q-o-Q increase during Q1 FY13
• EBITDA of INR 74 crores during Q1 FY13 and net cash from operating activities of Rs.88 crores
• BOM EBIDTA margins at approx. 17% during the quarter
• Key input costs remained stable significant cost reduction achieved in advanced formats and several other cost  reduction measures underway
• Progress on high efficiency project on expected lines
• PV Systems division commissioned 1.25 MW Crystalline Silicon project in Rajgarh, Madhya Pradesh in record time

Commenting on the quarter performance, Bhaskar Sharma CEO, Storage Media, MBIL, said: "The growth in advanced format sales is likely to continue in the coming quarters. Implementation of prudent cost reduction measures have resulted in significant improvement in the operational efficiency and overall cost benefit. Additionally, stabilization of key input costs and ASP at current levels are expected to augur well for the company in the short and medium term."

He further added: "Solid state media market continues to grow at over 15% per annum and we are well positioned to participate in this growth."

Highlighting the recent developments, K.N Subramaniam, CEO, Moser Baer PV Systems said: "Solar farms commissioned till March 2012 have performed well in the first quarter of FY13, for all installations where Moser Baer undertook EPC Services. We witnessed an uptick in new business in this quarter  and expect an increase in interest in the coming quarters as well. Rooftop installations (100 KW and below size) are expected to trigger growth in the next three quarters."

Commenting on the results, Yogesh Mathur, group CFO, MBIL, said: "Despite the overall business being impacted by weak summer cyclicality, we witnessed stable operating performance during the quarter and expect further improvement in the coming quarters with enhanced liquidity."

He further added: "During the quarter, the company’s solid state media business has turned positive in terms of operating profits. The business carries strong promise for the future."

Storage Media

• During 2010-2018, the AsiaPac region would remain the most important market for storage media products, such as HD DVDs, Blu-ray discs and flash memory products like USB flash drives. (source – Global Industry Analysts (GIA), July 2012)
• Global shipments of solid state media expected to reach 937 million units in 2014 from 688 million units in 2010 (source – Futuresource)
• The Indian USB drive market aggregated to a total market size of Rs 4700 million in 2011 while the flash card market aggregated to a total size of Rs 7600 million
• Globally, growth in 3D Blu-ray sales continue to boost Blu-ray sales with a strong growth potential over the next 3-4 years (source -Futuresource )
• ASPs of key products expected to remain stable at current levels
• Prices of key raw materials expected to remain stable in the near term
• Capacity conversion to high margin Blu-ray lines underway

Solar photovoltaic

• Global PV industry witnessed sustained growth in installations during Q1 2012 driven by impending incentive cuts in key European markets and robust growth in emerging markets
• Imposition of stiff anti-dumping duties against Chinese manufacturers in US
• Fastest PV capacity growth over next five years expected in China and India, followed by Southeast Asia, Latin America, the Middle East and North Africa (EPIA, May 2012)
• Indian PV market driven by federal and state solar policies forecast to install 1.4 GW PV systems in 2012 (DigitimesResearch, April 2012)
• New installations in states such as Gujarat, Rajasthan, Karnataka, Maharashtra and Madhya Pradesh to  spur growth in installations
• Systems business expected pipeline of 50MW for concept to commissioning projects
• PV Module manufacturing operations continuing, driven by demand from European and Japanese customers expected to ramp up in the coming quarters following restoration of liquidity and potential in the Indian market