The Hindu Business Line : Moser Baer Q2 net plummets 82 pc

MOSER Baer India today posted a steep decline in net profit for second quarter ended September 2005 at Rs 3.08 crore from Rs 17.5 crore in the corresponding previous period.

However, the company has shown substantial improvement over the first quarter of the current fiscal when it had recorded a net loss of Rs 11.15 crore. This comes on the back of stabilisation of input costs and increased focus on DVDs.

During the quarter, gross revenues increased 56.9 per cent to touch Rs 397.8 crore (Rs 253.5 crore).

The earnings before interest tax depreciation and amortisation (EBITDA) margin at 23.5 per cent in the period under review was a recovery over the level of 20.9 per cent in the first quarter.

However, the net profit fell sharply on a year-on-year basis due to pressure on margins on account of decline in average price of DVD-Rs and doubling of raw material prices (compared to year-ago period).

The company said that after three quarters of turbulence, the industry environment now showed signs of further recovery and a move towards normal levels of profitability.

PV business

The company has also announced its foray into the photovoltaic (PV) business with plans to manufacture solar cells and modules through a new wholly- owned subsidiary in which it would invest Rs 112 crore.

To bridge the remaining fund requirement in the Rs 260-crore project, the company would get finance from lenders. Commercial production under the project is estimated to begin in the third quarter.

The company is projecting 25-35 per cent compounded annual growth rate (CAGR) in revenues over the next three years.

It has announced capital expenditure of $105 million for the current fiscal to increase the manufacturing capacity.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page