BOROLTD - Borosil Limited Share Price

Question: "If I look at your 3-4 year period, we have spent almost Rs. 550 crores of CAPEX. So, I just wanted to know the breakup of this CAPEX and what sort of peak revenue potential do we see from the CAPEX that we have spent already in the past 3 odd years?"

Answer: "Most of the CAPEX has been spent on expanding our Opalware glass furnace and adding a borosilicate glass furnace, along with large solar projects and upgrades in Jaipur. Specific numbers can be referred to in previous conversations. Peak revenue from this CAPEX, including the insulated bottles project, is estimated to be around Rs. 900 crores to Rs. 1,000 crores."

Question: "After the Rs. 65 crores CAPEX that we do for the bottles, is the peak of the CAPEX cycle behind us, or do we plan on some CAPEX going forward?"

Answer: "Our sales growth indicates future CAPEX opportunities. We see significant growth in non-glassware segments, and while nothing is finalized, we plan to invest more in those areas."

Question: "Could you provide us with the amount of utilization that we are currently at in glassware and Opalware?"

Answer: "Opalware is currently at over 90% utilization and glassware is around 80%. We are actively working on improving both areas."

Question: "If we look at it quarter-on-quarter and YOY, why have margins been depressed despite higher revenues?"

Answer: "Margins were impacted due to two main factors: transitioning production from abroad to India, which has caused initial inefficiencies and losing revenue in higher-margin hydra products. These issues should resolve in the next 12-18 months."

Question: "How does the situation look for Q3, considering inventory issues and demand?"

Answer: "We will likely see impacts due to inventory shortages. Demand has been higher than supply, especially in the hydra category, leading to lost potential revenue. By Q4, we expect some recovery as our inventory levels improve."

Question: "What proportion of our non-glassware revenue stands exposed to BIS right now?"

Answer: "All non-glassware segments are subject to BIS. Currently, about 50% of our revenue in this segment is sourced locally, and we aim to increase that to 70%-80% within the next year."

Question: "What is the peak revenue potential for the new stainless-steel facility?"

Answer: "We estimate peak revenue from the stainless-steel production could be close to Rs. 200 crores. The timeline for reaching this potential is uncertain due to various operational challenges."

Question: "Can you confirm the guidance on revenue and CAPEX growth for FY'26?"

Answer: "We're cautious about confirming the previously indicated 15-20% growth due to ongoing capacity struggles. Demand has improved since Q1, but our ability to supply is still uncertain."

Question: "What growth trajectory are you looking at in the glassware division for the coming years?"

Answer: "Growth in glassware stems from offering diverse product choices and a notable shift from plastic to healthier options. We believe there's substantial room for continued growth as we convert consumers away from plastics."

Question: "Did we have any significant institutional orders in the Opalware segment this quarter?"

Answer: "We had no significant institutional orders this quarter, focusing instead on strengthening our product offerings and competing effectively in the market."

Question: "What are the plans for managing the impacts of BIS on product sourcing?"

Answer: "50% of our appliances are already sourced in India. We aim to ramp that up to 80% before BIS implementation, ensuring we don't repeat the challenges faced with hydra products."

This summary captures key exchanges from the earnings call while adhering to the 500-character limit for each response, ensuring clarity and relevance.