BOROLTD - Borosil Limited Share Price

Major Questions and Answers from the Q&A Section

Question 1: "So, I understand we have 3.6 million or 4 million pieces of expansion coming in, in a couple of quarters. How should one understand the ramp-up of this category? What is our EBITDA margins that we are targeting from this category at peak utilization?"

Answer: The ramp-up of the hydra manufacturing facility may take between 3 to 6 months to reach full capacity. We aim for a target ROCE of 24%, but during the initial ramp-up, efficiency may not be at peak. While we strive for this goal, initial months may have higher scrap rates and lower productivity focus.

Question 2: "What is the kind of current demand environment that you're seeing for glassware, opalware, and non-glassware? How has it evolved in quarter 3 and what's going on in quarter 4 now?"

Answer: Demand for glassware has improved, showing growth due to behavioral shifts towards healthier choices. Opalware demand, however, has not performed well and needs rejuvenation. Appliances, especially stainless steel, have also seen strong demand, but we had supply issues that hampered performance.

Question 3: "Can you share the utilization levels of both the furnaces for opal and glass?"

Answer: Currently, the opalware furnace is operating at about 95% utilization, while the glass furnace is at roughly 90%. We are focused on optimizing these levels to improve production efficiency.

Question 4: "How do you see the margins panning out on the EBITDA level from current levels of 16%?"

Answer: We expect margins to improve into the low-20% range as we optimize costs and ramp up supply. Had we had the hydra supply, margins would have approached or exceeded 18%. The focus remains on improving productivity and controlling costs.

Question 5: "What are your absolute inventory receivables and payables numbers as on December '25?"

Answer: Our inventory stands at approximately INR 324 crores, which accounts for 99 days of inventory, while receivables are around INR 120 crores. Payables amount to roughly INR 83 crores, reflecting our supply chain management and compliance preparations.

Question 6: "When we do the furnace reconstruction, how long will it be shut and what is the capex for that?"

Answer: The furnace will typically be shut for about 30 to 40 days during the reconstruction, which we plan every 2.5 years. The maintenance capex for this process is roughly INR 15 crores per furnace, amounting to around INR 30 crores for both furnaces during reconstructions.

These summaries capture the essence of the questions and answers discussed during the Q&A session of the earnings call while adhering to the provided character constraints.